vi

8.—6

THE PUBLIC DEBT. On the 31st March, 1898, the gross public debt was £44,963,424, while on the 31st March last the debt had increased to £46,938,006, representing an addition of £1,974,582 during the year. This is a large increase, arising principally from the settlement of very large land-purchase transactions being effected at the same time as we placed our new loan upon the market. The reproductive portion of the additional debt may be stated as under : — Loan q, . , Costing Earning raised. ° ' per Annum, per Annum. £ £ £ £ For purchase of land for settlements ... 499,000 ... 18,337 24,950 For advances to settlers ... ... 500,000 ... 15,000 25,000 For loans to local bodies ... ... 73,900 ... 3,695 3,695 For New Zealand Consols deposits ... 29,740 ... 1,041 1,307 1,102,640 For aid to public works and land settlements — For additions to open lines ...£400,000 ... ... 13,000 13,168 For roading to open up new blocks 180,000 . ... 5,675 9,000 56,748 77,120 For construction of railways ... 230,000 — For schools ... ... 50,000 ■ 860,000 Sinking-fund debentures... ... ... 54,300 Increase of debt by conversion ... ... 19,384 933,684 Less debentures redeemed ... 61,742 871,942 Total increase during 1898-99 £1,974,582 With regard to the increase owing to conversion operations, £2,581,108 ol 3-per-cent. stock was inscribed for the purpose of converting £2,249,524 debentures, and to provide funds to pay off £312,200 of debentures under various Acts and at varying rates of interest. These transactions have added £19,384 to the debt, but have resulted in a material saving of something like £21,000 for interest-charges. The net debt at the close of last year had been increased by £1,999,206. Table showing the Inckease of Debt during the Liberal Administration, and the Cost per Annum of the Direct Interest-earning Debt, and the Amount earned per Annum by the Outlay of such Debt.

Purpose for which Debt was raised. Amount. Costing per Annum. Earning per Annum. Direct interest-earning— Land-settlement Advances to settlers ... Loans to local bodies Lands-improvement ... Bank of New Zealand, preferred shares... New Zealand Consols District railways Additions to open lines £ 1,408,566 2,000,000 914,400 500,000 500,000 385,925 47,000 400,000 £ 51,364 60,000 42,834 17,958 17,500 13,507 2,350 13,000 £ 70,428 100,000 45,720 25,000 17,500 13,507 1,547 13,168 6,155,891 £218,513 £286,870 Non-direct interest-earning— Purchase of Native lands Public works Increase by conversion Sinking Fund accretions Naval and military settlers 649,700 935,000 626,728 1,304,500 27,226 Less redemption— Consolidated Stock Act, 1884 £1,260,420 Other debentures ... 330,969 9,699,045 1,591,389 Increase of the public debt, 1891-99 £8,107,656