Page:Statesman's Year-Book 1913.djvu/1263

 FINANCE

1141

from lists of names presented by the Government ; those of the Superior Courts and of the Minor Courts are chosen by the Government from lists of names presented by the Supreme and Superior Courts, respectively.

Finance.

For the collection of the dues on alcohol, opium, tobacco, and stamps, a contract was made in 1900 with a syndicate formed for the purpose (Compaiiia Nacional de Recandacion), The syndicate retains 60,000Z. for expenses of collection, and also 6 per cent, of the profits, and hands over the remaining 94 per cent, to the Government. The contract with the Company expired December 31, 1911. In March, 1912, negotiations were entered on with a new company, the contract with the old company remaining in force until its functions are taken over by the new organisation. The old company collected 1,623, 4 33Z. in 1911.

In 1896 salt was declared to be a Government monopoly, the proceeds from which were to be devoted exclusively to the ransom of Tacna and Arica, but the money thus obtained has been, and is to be henceforth, used for the guarantee of loans raised by the Government. The administration of this branch of revenue has also been farmed to a company (Compaiiia Salinera Nacional). This company collected 131,630Z.

The revenue and expenditure for 5 years (ended May 31) were as follows in soles (10 soles = 11.).

—

1909

1910

1911

1912 1

1913 1

Revenue .... Expenditure.

£ 3,046,386 3,249,990

£ 2,795,775 2,685,322

£ 8,392,115 3,378,547

£

3,209,237 2,879,924

£ 3,209,237

2,879,924

1 Estimate identical for 2 years.

The foreign debt of Peru was made up of two loans, contracted in England in 1870 and 1872, amounting to 31,579,080?. In 1889 the debt, including arrears of interest, amounted to 22,998,651Z. In January, 1890, by the final ratification of the Grace-Donoughmore contract, Peru was released of all responsibility for the two loans, and the bondholders had ceded to them all the State railways, and certain rights over guano deposits, mines, and lands in Peru for 66 years.

The terras of this contract were not carried out either by the Government or the Peruvian Corporation, and after long negotiations the agreement of April 2, 1907, was signed. The Peruvian Corporation is a foreign company, with headquarters in London, formed in 1890 to take over one half of the then existing Peruvian foreign debt of some 45,000,000i. Under it, the obligations created on either side by the contract of 1890 are annulled, certain matters being, however, reserved for arbitration or for future contracts. The Goveinment is to pay the Corporation annually for 30 years the sum of 80,O0OZ. in monthly instalments, beginning in July, 1907. The Corporation will proceed with the work of railway construc- tion, taking in hand the continuation of the Oroya-Huancayo and Sicuani-Cuzco lines, and apparently the construction of the Yonan-Chilete line (not yet begun). It will repay to Government the sums it has received on account of these lines, and will take over the Government contracts and liabilities for work on the Huari-Huancayo and Chicacupe-Cuzco lines. The Corporation lease is to be extended by 17 years, during which the Government will receive 50 per cent, of the net receipts (the service of railway obligations up to 6,000,000i. being deducted), and the votes of the taxation of the Corporation railways are fixed for 30 years. The MoUendo port works, the Chira canal, the Cerro de Pasco mines, and debt of 200 0001. due to Chile are the chief subjects reserved.

The Government extended the contract with the Peruvian Corporation for 10 years from September 11, 1911.

The Foreign debt of Peru is stated to amount to 5,368,788Z., of which

2,160,000?., represents the capitalized value of annuities of 80,000?. and the