sinking fund was not only valueless, but choked the whole. affair. Uruguay, however, has a considerable trade for a small country, while both in New Zealand and Queensland the exports "per head" largely exceed those of the mother country. Nevertheless, the indebtedness in those two Colonies has reached a point which is for the time being oppressive. Contrast, for instance, New Zealand with New South Wales in the foregoing table. The net debt per head in New Zealand is £27 higher, the annual exports £8 6s. less; and there can be no doubt whatever which is in the sounder financial position. It may be said, and very truly said, of Queensland and New Zealand, and of many other countries as well, that the foregoing contrast is unfair to them, because it takes the net revenues of a number of recently opened, or partly opened, railways, and treats those incipient earnings as a just gauge of the profitableness of their public works, whereas, in a few years those railways and public works generally will be far more profitable, as, for instance, those of Victoria are now. Granting this to the full, and that Queensland, with her millions of cattle and sheep, her sugar estates, and mineral wealth, and that New Zealand, with her magnificent climate and productive soil, and both with their millions of acres of land fit for occupation, may advance rapidly in the years to come-granting all this, would it not be a wiser policy to wait a few years, until their available assets had more effectually overtaken their liabilities, before incurring fresh indebtedness? Even for the most legitimate objects, there is a risk in too deeply mortgaging the future.

So far reference has only been made to the most prominent features in the foregoing Table. But it may be pointed out, that wherever, as in the instances of the Cape, India, Holland, Norway, Sweden, and others, the annual exports approach, or exceed, the volume of the debt to be covered by taxation, the position of the National creditor must be one of as absolute security as it is possible to obtain. Further than this, no defaulters are to be found even amongst those States where it would take two or three years' purchase of the total exports to cover the net indebtedness. But it is where, as recently was the case with Spain, there were £500,000,000 of debt, against £20,000,000 of exports (twenty-five years' purchase), that the

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defaults have in the long run occurred. It will be noticed that in the foregoing Table of "Net Indebtedness," the contrasts between debt and trade are unfavourable in the instances of many European countries; and in those cases, like France, where practically the entire debt is internal, and where trade is artificially checked, the figures are open to some modification. Still, the strain upon countries like Italy, where a large portion of the debt is in foreign hands, and the exports do not reach one-eighth part of the net debt, must be very considerable; and the necessity can be understood for the "income tax on coupons of late years to avoid a more decided defalcation. Turkey, again, could never, even in careful hands, have met her creditors while her debt exceeded £200,000,000 and her exports were much below £20,000,000. In one or two instances, it is apparent that it must require a strong determination, and no inconsiderable efforts to meet the letter of their obligations to enable the Governments in question to pay as they do. While there are yet other States, the bondholders of which have less to fear from financial than from political and social unsoundness; and probably many would name the Russian Empire as the type of this class. The result is that, though no very accurate measure of National wealth can be supplied, the "trade test," with due allowance for artificial restrictions, is found to be fairly effective.

In completing my labours upon this latest edition of FENN ON THE FUNDS, I must express my best thanks for the valuable data and assistance I have received. A work such as this must, from beginning to end, be an appeal to authorities, written and personal, and to the latter especially I take this opportunity of acknowledging my obligations.

November, 1882.

ROBERT LUCAS NASH.