PUBLIC DEBT
The public debt of Venezuela is a topic important enough in itself to warrant consideration in a special report, hence we shall concern ourselves here solely with the external foreign debt. Its history is interesting but long and involved and since our interest as far as this report is concerned is not in the debt itself but in the debt as a factor in influencing investments in Venezuela, we shall confine ourselves solely to a statement of the following statistics from the Report of the Minister of Finance:[20]
| June 30, 1919 | December 31, 1919 | ||
|---|---|---|---|
| 1. | Deuda Nacional del 3% annual por Convenios Diplomatics | Bs. 9,208,291.61 | Bs. 9,088,291.61 |
| 2. | Certificados Provisionales (Españoles) | 1,600.00 | 1,600.00 |
| 3. | Deuda Diplomatics del 3% annual de Venezuela, Emisión de 1905 | 84,511,755.00 | 80,295,615.00 |
| 4. | Deuda Diplomatica sin interes | 23,769.12 | |
| Total | Bs. 93,745,415.73 | Bs. 89,385,506.61 | |
[20] Cuenta de Gastos del Departmento de Hacienda, July 1, 1919, and January 1, 1920.
The national debt of 3% is divided between France, Spain and Holland in approximately the following proportions: France, 86%, Holland, 11% and Spain, 3%.
The second item of 1,600 bolivares is held in the Venezuelan Treasury pending a settlement as to whom the debt should be paid.
The 3% diplomatic debt is held by English and Germans, while the diplomatic debt without interest due to France was entirely paid at the expiration of December, 1919.
The obvious conclusion to be drawn directly from the above statistics is that Venezuelan public finance is in good hands and that the country is in a flourishing condition as witnesses a payment of nearly $1,000,000 on the foreign debt in six months. Under such conditions, foreign investors may feel reasonably sure that capital may be invested here both securely and profitably.