145 
National debt thus amounting to 13.6 millions. The net wealth of the 
State on the 31st of December 1928 was thus 22.s million krénur. 
Up to 1908 State loans were practically unknown in Iceland, though 
at New Year when accounts were made up between the Icelandic and 
Danish treasuries, there was sometimes a small balance in the latter's 
favour. But in 1908 a loan of half a million krénur was negotiated 
for the construction of telegraph lines; and in 1909 another loan of 
1/2 million krénur was taken up for the purpose of buying bank- 
bonds. Since then other loans have been raised for the same pur- 
poses and for making roads and harbours, or defraying the expenses 
of other undertakings. After the Great War broke out, loans had fo 
be raised to buy ships, and for other measures made necessary by 
the war to ensure the importation of supplies to the country from 
abroad. At first these loans were placed exclusively in Denmark, but 
since 1916 some of the loans have been subscribed in Iceland, and in 
1921 a loan of £ 500000 was raised in England, about three-fourths 
of which were again lent to the banks on the same terms as it had 
been negotiated, so that the State, though responsible for the whole 
amount, has used only one-fourth of it; consequently the other three- 
fourths are not included in the National Accounts. 
The following table will show the size of the National debt up to 
and including 1928: 
December 3°s¢ “10 
C 1s 
t+ 
- 
1926 
1927 
O28 
Total National Debt National Debt 
1000 krénur ver head of population 
30 krénur 
40 — 
212 — 
160 
185 
118 
113 
109 
120 
Though these figures show an enormous increase in the National 
debt during the Great War; vet, proportionately to the number of 
population, our burden is not so heavy as that of the other European 
nations. Besides, the National debt, as shown above, was considerably 
reduced in 1924, and still more so in 1925, that year being so excep 
tionally favourable that the State receipts exceeded the estimated ex- 
penditure by 5%: million krénur, 4 millions of which were employed 
to pay off all short term loans, over and above the usual reduction.