REVENUE.-The Revenue Receipts during 1902 had been as EXPENDITURE.-The President stated that it was impossible to indicate the total Expenditure effected by the Government during the year 1902, as the accounts relating to that year could not all be closed by the 31st March. EXTERNAL DEBT.- During 1902 the amount expended on the service of the External Debt reached a total of $1,264,053.23 Currency (of which $1,137,858.23 represented exchange), as compared with a total of $977,360.48 in 1901. INTERNAL DEBT.-The outstanding total of the Internal Debt in 1902 amounted to $637,890. This Debt, which consisted of Internal Debt Bonds and Treasury Certificates, had absorbed $260,410.66 for interest and amortisation during the year. CURRENCY. On the 31st December, 1902, the amount of Notes in circulation was $12,569,999.69,* to which must be added $200,000 of nickel coin issued under the Law of 31st August, 1899. BANCO AGRICOLA.~This institution continued, as far as lay in its power, to stimulate national production. In order to enlarge its scope of action a project would shortly be laid before Congress, providing for the increase of its capital in a manner and up to an amount compatible with the condition of the country. PARAGUAY CENTRAL RAILWAY.-Negotiations were being carried on for a definite settlement of the points at issue between the Government and the Company. BUDGET FOR 1903. The Estimates of Revenue and Expenditure for 1903 were published in the Official Gazette of the 14th January last. The details are as follows :— * On 31st December, 1901, the note circulation amounted to $10,566,171.19 (See Council's Report for 1901-2, p. 295). PROPOSED INCREASE IN THE PAPER CURRENCY. According to reports which have recently appeared in the Press, proposals have been under the consideration of the Government for a considerable increase in the note circulation. It is stated that the greater part of the new issue would be handed to the Banco Agricola to be used for loans on mortgages, the balance being devoted to Public Works. The new issue would be redeemed by means of an increase of 2 per cent. in the Import Duties, and of surcharges on various Export Duties, including, notably, an increase in the Yerba Maté Duty of from 9 to 12 cents. gold per 10 kilos. In a Report to the Foreign Office, dealing with the trade and finances of Paraguay in the year 1902, Mr. Consul Gosling observes that, "The financial condition of Paraguay during the year under review cannot be said to. have shown any improvement on the preceding four or five years. The premium on gold has maintained an uniformly high standard, having at one time reached 1,200 per cent., the lowest rate being 900 per cent." The following statement of the value of the foreign trade of Paraguay for the ten years 1893-1902 is taken from Mr. Gosling's Report. In considering these figures it must, however, be borne in mind that the rate of exchange has varied very considerably in Paraguay, and it is not clear whether the results shown are arrived at by taking a fixed rate or the average rate for each year :— Four and a-Half per Cent. Tobacco Loan (1st and 2nd 8,773,515 43,434,725 INTERNAL DEBT. Three per Cent. Consolidated Stock (quoted in London) 107,345,301 £147,653,465 There are also outstanding : INTERNAL DEBT Four per Cent. Debt (Premium Loan and Loan of 1890) £1,321,740 4,733,240 £6,054,980 |