The State Bank Question.

AN IMPOBTANT CONVERT TO THE PRINCIPLE.

Sydney Bulletin, which is recognised as the foremost exponent of advanced Liberalism in Australia, and which is quoted more frequently in London than any other Australian journal, has come out boldly and unmistakably on the side of State Banking. In the issue of June 20th, just to hand, the editor of the Bvl~ letin has an able and comprehensive article on the subject, in the ' leading ' position, from which we quote as follows : — Paper- money is an essential part of the national currency. Ifc must be issued either by the State or by some private institution, for it has become absolutely indispensable. The institution which issues it supplies an urgent need, and while thus benefiting- the nation it also benefits itself, for it virtually borrows the public money without paying- any interest. Yet, for some reason which never will be accurately explained, the Australian Governments prefer to do all their borrowing in the London Market at 3£ percent., while the privilege of raising money withouc interest is conferred upon various financial institutions, which make a large part of their revenue by fooling with the currency. If the future Commonwealth would take this matter into its own hands, and issue a redeemable paper currency of its own by the medium of a State Bank, it would thus obtain without interest an immediate loan from the nation of at least .£5,000,000, equal to an annual revenue of some ,£300,000, and as the population increased, and the demand for money became greater, the amount of this annual mc >me would be steadily enlarged. Out of this fund the public works policy could be continued, maoh less rapidly it is true, than heretofore, bat without any further addition to the public burdens, and as the works thus constructed became'more and more profitable in the course of years, progress would be accelerated in a steadily-increasing ratio. And so far as concerns the guarantee against depreciation of the national securities, the note-hoiders would be protected in exactly the same manner as at; present. The paper would be convertible on demand, and the reserve of gold in the State Bank would be sufficient to convert any qnantity of notes that were likely to be presented. * # # The' arguments in favour of a State Bank may thus be summed up in a few sentences. By resuming the sole power of issuing bank notes, the Government would gain a largo revenue which in has hitherto given away to a lew monopolists without getting any appreciable advantage in return. < It would add enormously to the security afforded to noteholders. It would virtually borrow to all eternity, increase steadily with the increase of population, and out of this money— which now goes to create dividends for the holders of a fat monopoly— it could, continue the construction of public works without any addition whatever to the public burdens. It would do this, nofc by laying any new burdens upon the people, but by supplying a public want which it has hithertoleft to be supplied by syndicates and corporations ; and as a result it would be enabled . to put an end to the nefarious system of borrowing which threatens to make Australia the property of a gang of foreign capi talists. And lastly, the scheme involves no risk whatever of flooding the country with that depreciated paper, which is the cause of so much ominous fo-ebodrn^ among the banking fraternity, for notes issued by & solvent institution and redeemable on demand cannot depreciate by any known possibility, and the Government would, in this respect, occupy exactly the same situation as the banks— its notes would be redeemable,, and for that very reason they never would be redeemed* And against the scheme there is no argument whatever, except the universal howl of the capitalistic Dress', whioh always prophesies ruin and universal chaos when another great and profitable monopoly starts on that downward road that leads to Socialism and human equality.