The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-06-06
GREAT BRlTAIN's DEBT
Why It Has Never Borrowed
In Time OF Peace.
STRIKING CONTRAST TO OUR OWN

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the Napoleonic Wars-sir Michael
Hicks-Beach's Gloomy View OF Fu-
ture Public Expenditure.
The recent announcement of a new
consols loan Of f32, COO, 1000 marks the
dfth large borrowing operation Of the
British government since the Trans
vaal war began. In view Of the magni-
tude of this borrowing in the last three
y%ears--the total, including the new pro-
posals, footing up f146. OOO,OOO-it will
be interesting tt review the history of
Great Britain's debt and contrast that
history with u own, says the New
York Evening Post.
Unlike the continental states-whose
public debts have largely been created
in time of peace to make good perpetu-
al deficits in revenue-England has in
reality eve contracted permanent
debt except to pay for war. Its excel
lent budget system and the fact that
annual revenue in time of peace. has
rarely exceeded expenditure have made
this possible. sin the twenty years pre-
cedfng the outbreak Of the Transvaal
war there were only three years when
the exchequer's receipts fell below dis
bursements. The sum of those three
deficits Gin 1894, 1886 and 1880 was
only f3,S61, 900. whereas the sum Of the.
SURPRISES in the other years of the Sc
ries. was 2 .720,O0O. or an average of
more than $5,00O,OO 0 surplus annually.
1t is also an interesting fact to notice
that in every one of the twenty years
referred to. except 1886. 1893 and 1894,
Great Britain's actual revenue exceed
ed the e~Xchequer's estimate of twelve
months before, while yearly expendi-
ture prior to 1901 has never but once
come up to the estimate. All this pre-
sents a striking contrast to the history
Of our W public finances. for exam
pie.
Great Britain is still paying interest
to the amount of o than 100000
600 annually on the debt created dur
ing the wars with Napoleon. At the
outbreak of the war with France in
1902 the British public debt was $780,
G63. 421. At the signing of the peace
of Paris in 1915 it was fS61 OBS, O49.
AS the total outstanding debt was
f62S.97S, 1888 before the Boer war bor-
rowings began it will be seen at a
glance that the burden of the great
continental struggle still rests heavily
on the backs of the British taxpayer,
for the only addition to the mass Of
debt up to 1900 vas some f:3:3'. 200. OOO.
raised to meet the expenses OF the
Crimean war.
Between 1915 and 1854. when the
Crimean war broke out. Great Britain
redeemed E56.Sl2.OOO of it's debt. an
average annual reduction Of s. .1O1 SOC.
In the period between 1857. when that
war ended. and 1890. when the Boer
campaigns began. the decrease was
ZOOS, 1854. an average annual re-
demption of 500. 10000. AS Il matter
of fact redemptions for the sinking
fund had been growing larger and
larger on the eve of the Tr%ansvaal
war. In April, 1890, the e%xchequer ar
nounced IN appropriation of f5.8O0.O 600.
or $29,O0O.O0O for the years contribu-
ton to the sinking fund. Since then,
as is we'll known. purchases for the
sinking fund have been suspended.
This maximum annual debt redemp.
ton of $29.OOO.O0O, Of which Mr.. Bal
four at the time complained as a waste
of money, cuts no great figure beside
our own treasury's efforts in that line.
Even in the fiscal year 1901 our gov
eminent bought in some $36.OOO.OOO Of
its outstanding bonds. In the fiscal
year 1888 it reduced it's interest bear
ing debt by $71.O0O,OOO, in 1887 by no
less than $124. OOO.OO and in the year
July 80, 1852, there was a slash
ing cut of $175.O 1000. In the twelve
years between 1870 and 1901 our out
debt was reduced 81. ,0OO.-
600. an average of very nearly $780,
100000 annually. But while this coun-
try can thus claim a record in debt re-
far surprising anything yet
done by the British treasury it cannot
claim the %eSchequer's immunity from
large bond issues to meet deficits in an
nual revenue
Great Britain's moves toward re-
trenchment and debt redemption when
the war outlay is over will be a matter
of great interest. The process will not
be altogether simple. Sir Michael
Hicks Beach himself spoke in parlia-
exactly a year ago as follows:
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