The Bossier banner. [volume] (Bellevue, Bossier Parish, La.) 1859-1952, 1882-12-14
The British Debt.

|
al debt Is that it amounts on a rough es.
innate to fS0O, 900, 900, and that all
eHorts 10 reduce it have touched only a
small traction OF it. The accounts, how
ever, prove that for the past quarter of a
century in fact, since the winding-up
or the charges of the Crimean War
the reduction of debt has gone on stead
lly from year to year. In 1S57-'5S the
total amount was fS39, 900, 900; in 1866
90, at the close of Mr.. Gladstone's most
brilliant period of financial administra-
ton, it was brought down to fS15, ,OOO.-
OOo; IN 1S6S-'69, when the Conserva-
tives had held office for three wears. it
had fallen to fS03, 900. 900; in 1894.
a greater advance had been made and
the debt stood at f7S2, 900, 900; and in
1919 |6, the process having been unin-
terrupted by the change of Government,
at t772,OO0,0O0. At this point there
was turn in the tide, due mainly to the
eXlgencies of foreign politics. and until
the last financial year, 1SSl-'S2. the debt
never stood at SO low figure as in 1875
20. Last year it was f76S, 700, 900, and
Tor The present year the official estimate
1lXes the amount at f763, 900, 0OO-that
Is. t76, 100000 less than the debt as it
stood -and-twenty years ago.
This is not an inconsiderable reduc-
ton, even if the character of the burden
were precisely the same as that to which
the Nation was subject at the close of
the Crlmean war. But, as Mr. Hubbard
has pointed out in one of his instructive
letters which was lately printed on this
subject, large part of the debt created
in recent years, which has diminished
the apparent net reduction, is repre-
sented by certain valuable assets unlike
anything to be found on the right side
OF the account of 1857. For example,
the purchase of the rights and property
OF the telegraph companies bv the
State involved the creation of nearly
I'll, 100000 worth of stock, but in es,
change for this the Government has OBJ
tanned possession of a paying concern,
tpresent actually yielding profit equal
to the interest on the stock created for
this purpose, and giving fair promise of
much larger return. Again, the money
raised for the purchase of the late Khe-
dives Slez Canal shares figures as a
temporary increase of the debt in 1876;
| but the shares. it is admitted were al
ways full value for the "a 900, 600 which
were paid for them, and are now, if it
were expedient to part with them, worth
a great deal more. NJ. de Lesseps re-
minded lis the other day that the orioi-
nal 5O0-franc shares are now worth
ABOUT Z,I0O francs each in the open
market, and though of course the shares
held by the British Government stand in
a different position from the ordinary
shares, because interest at five per cent.
is paid upon them by the Egyptian Gov
ernment, and not by the company, and
the regular coupons have been alienated
Tor several years to come, it is still OBJ
vlous that they share in the increase of
value due to the success of the enter
prise. Another element in the debt
which is rather apparent than real is
the amount representing ''l0ans recov-
erable,' which Mr.. Hubbard reckons at
over t2S,000,000. The official return
shows that in the quarter of century
the total decrease in the debt, mot TAX
ing into account the amount of debt ere
ated for special purposes, was over
I119,O0O,O00 But the especial pur-
poses in question include such unpro-
ductlve expenditure as that upon fortiit-
cations and army locaiization, which.
however necessary and defensible, have
procured the country nothing in the
shape of a realizable and recoverable |
asset. Taking, however the assets that
may be properly set eff against debt
the telegraph property, the Suez Canal
shares, and the loans to public |
bodies-there is a sum of not less
than t43, 900, 900 to be substracted from
the t763, 000,0 900, which is the nominal |
amount OF the debt at the present time. |
Mr. Hubbard insists upon another point |
in which. he maintains, the oilicial |
figures unfairly exaggerate the burden |
upon the community. The amount of |
the ordinary stocks is computed at par,
and certainly there seems to be no reason
for assuming that the Government will |
be able to extinguish their three per
cents below par. But besides the or
dinary stocks there are the terminable
annuitles, which in calculating the capital
OF the debt have to be reduced to cash |
value. 1t is an easy actuarial operation
to determine the cash value of the ter
minal annuities. But in the official re-
turn it is estimated as if invested in
three per cent. stock at an assumed price
why this imaginary conversion is made
at a price which has no practical relation
to the present value of consols. If the
Government had really to sell OF buy
three per cent stock, it would have to
deal upon the basis of price ranging
within a fraction, one way or the other,
of par. Mr.. Hubbard appears to be
justified in his criticisms upon the incon-
gruity of Jumping together in the COM
putation of the aggregate debt ordinary
stocks and unfounded debt all reckoned
as payable at par, and the capital value
of the terminable annuities supposed to
be invested at nearly eight per cent.
below par. If the value of the termin-
able annuities be supposed to be repre-
sented like the rest of the debt, by three
per cent. stock at par instead of at $685.
another deduction of over $4,000, 600
must be made from the total. In that
case, the actual burden of the debt will
be found to be about f718,00O,O 900, or
f120, 900, 900 less than the amount ow-
ing by the State a quarter of century
ago.-LOnd0n Times