The increase in the Assets resulted mainly from a growth in the value of the Railways, etc., belonging to the Government. Under the head of liabilities, the considerable increase in the amount of the External Debt was due, not to the issue of any new loan, but to the fact that the existing 1886 Loan was, for the purposes of the account, converted into currency at the exchange of 600 per cent., instead of, as in the previous year, at 287 per cent. INTERNAL DEBT, 1902. In dealing with the Internal Debt, the Finance Minister's Report stated that the increase during 1902 amounted to $3,843,165.70,* and the decrease to $1,531,464.00*, the nett increase over the internal indebtedness at the close of 1901 being, therefore, $2,311,701.70. The Internal Debt outstanding on 31st December, 1902, consisted of the following: The operation of raising the loan of $1,000,000 for the amortisation of the National (Treasury) Notes, which was authorised by the Decree of 9th December, 1902 (reproduced on pages 265-66 of the Council's last Report), was not carried out until after the 1st January, 1903, with the result that it did not appear amongst the liabilities at the close of 1902. The issue, however, when effected, was, according to the Minister's Report, very successful, and the reduction of the amount of paper money in circulation which had ensued had brought about a fall in the rate of exchange. SPECIAL REPORT FOR 1903 BY THE FINANCE On the 20th April, 1904, the Minister of Finance, on the occasion of his retirement from office, addressed a special report to the President of the Republic. This document consists almost entirely of a review of his six years' administration of the national finances. It, however, also contains the details of Revenue and Expenditure in * There is an unexplained difference of $805.842.25 between each of these amounts and those given in the statement of liabilities as representing the increase and decrease of the Internal Debt. As, however, the difference occurs on both sides of the account it does not affect the nett increase or the total amount of the Debt outstanding. 1903, and certain information as to assets and liabilities, and the situation of the Internal Debt in the same year, which are reproduced here in an abridged form. With regard to the items, "Civil War of 1903" and "War Exactions,"" under the head of Expenditure, the Minister estimated that, in addition to the sum actually disbursed, the war was responsible for a loss of Revenue amounting in round figures to $1,000,000. ASSETS AND LIABILITIES, 1903. The Minister stated that, at the close of 1903, the nett assets and liabilities of the Republic amounted respectively to $19,944,858.24 and $26,092,198.67, the excess of liabilities being thus $6,147,340.43. No explanation is furnished of the considerable increase in the liabilities as compared with the corresponding figures for 1902, which are given above. INTERNAL DEBT, 1903. The gross amount of the Internal Debt outstanding on the 31st December, 1903, was $17,320,707.32. The Minister, however, asserted that, for various reasons, $4,182,510.63 might be deducted from this sum, reducing the true amount outstanding outstanding to $13,138,196.99, or $436,970.50 less than at the end of 1902. BUDGET FOR 1904. The Estimates of Revenue and Expenditure for the year 1904 were promulgated on the 10th October, 1903. The details are as follows: |