Tonga’S Finance,

How The Little Kingdom Is Meeting the Depression.

THE published annual statement of the Treasurer of Tonga for the year ended June 30, 1933, shows that the kingdom has weathered the economic blizzard very well.

The little country has had a heap of financial trouble to deal with. Here, for instance, is how its revenue returns went:

In these circumstances, as was to be expected, expenditure got substantially ahead of receipts; but there has been some mighty cutting of governmental services, and for 1932-33 the total ex penditure was only £63,599, as compared with revenue of £60,179.

There has been considerable trouble with exchange, as a result of the £ hav ing different values in Britain, Australia, New Zealand and Fiji; and it was re ported about the end of 1932 that the Tongan Treasury had been rather badly mauled. Just how it was all squared up is not disclosed in the printed accounts; but the careful Treasurer of Tonga ob viously is keeping a close watch on this very tricky aspect of extra-territorial finance.

Tonga, unlike more “advanced” coun tries, has a substantial surplus of assets over liabilities, which is expressed in a cash deposit outside of the kingdom. Be fore the depression, it was something like £160,000; but it is now down to £135,000. Taking 1928-9 revenue (£96,887) as normal, the Tongan Treasurer in the four complete years since then, has col lected £100,000 less than he might have expected. Yet his cash deposits have shrunk by only some £25,000—cuts in expenditure have provided for the balance.

Taxes Customs.

Native.

Other.

Total. 1928-9 ... 41,171 11,780 37,936 96,887 1929-30 ... 41,902 11,919 35,764 89,585- 1930-1 ... 28,026 11,677 30,959 70,662: 1931-2 ... 20,496 9,491 27,237 57,224 1932-3 ... 22,625 11,200 26,354 60,179