317 
In 1926 and 1927 the government took up loans in Denmark to the 
amount of 612 million krénur, a sum which was devoted to the pur- 
chase of bank-bonds to increase the means at the disposal of the 
Hypothec-Mortgage Department of the Landsbanki. But as the interest 
on and amortisation of these loans are provided for by the interest 
on and amortisation of the bonds, these loans, though the State is an- 
swerable for them, are not included in the National debt accounts. 
In 1928 the National indebtedness again increased by 2.3 million 
krénur owing to the treasury’s obligation to furnish the Landsbanki 
with a capital of 3 million krénur. On December 31st 1928 the 
National debt amounted to 13.6 millions, or to about 130 krénur per 
head of the pooulation. 
II. URBAN AND RURAL DISTRICTS 
INCOME AND EXPENDITURE 
For the division of the country for local administrative purposes, see 
article on adminstration, pag. 35. The municipal funds in the urban 
districts correspond in rural districts to parish and district funds. 
In 1926 the current receipts were as follows: 
Municipal Funds Parish Funds Total 
1000 krénur 1000 krénur 1000 krénur 
Town and Parish Rates (a kind of income tax) . 2531 1640 
Other rates . . . . . « +. . . . . . 449 80 
Revenue from municipal undertakings and 
property . . . . . . 
Other receipts . . . . . Te 
Total current income 3403 
8 
From the above summary it will be seen, that the total current re- 
ceipts of the urban and rural districts amounted to 5.2 million krénur, 
of which 4.2 millions, or 80 per cent., are derived from the town and 
parish rates, a direct tax levied on the rate-payers according to their 
financial position generally. The annual amount of the parish rates fo- 
gether with the income from other sources must be sufficiently large 
to cover the estimated expenditure of the parish. In 1885 the total 
amount of town and parish rates in Iceland was but 185 thousand 
krénur; in 1895 they had increased to 209 thousand; in 1905, to 319 
thousand; in 1915, to 694 thousand; in 1920, to 3292 thousand; 
while in 1926 they had risen to 4171 thousand krénur. In the urban 
districts there are. besides the town rates. also other rates of the