AUSTRALIAN STATE DEBTS

Auckland Star, Volume XXXV, Issue 34, 9 February 1904, Page 2

AUSTRALIAN STATE DEBTS

THE COMMONWEALTH PROPOSALS. (Received 9.42 a.m.) MELBOURNE, this day. The Conference of Treasurers under the presidency of the Federal Treasurer discussed the question of the Commonwealth's taking over the States' debts. Briefly, Sir Wm. Turner's proposals suggest that at the next election the Constitution should be amended so as to allow the Commonwealth to deal with the debts raised by the States after January. 1901; *.hat all new loan moneys should be raised by the Commonwealth; that the indemnity to the Commonwealth should be the right io use the surplus revenue which it has under the Constitution, and the right to receive the gross railway revenue, and use only such portion of it as is necessary to make up the deficiency. A properly guarded sinking fund would be established in connection with each loan raised by the Commonwealth. Sir W T illiam Turner's figures show that if the Federation takes them over, the complete service of debts would mean an expenditure of quit*, eight millions seven hundred thousand a year. He calculates that he would only have 74 millions of State funds available out of the Customs and Excise to pay it with. If that were all he could readily obtain an adequate guaranty for the amount. But the bookkeeping system steps in and upsets the situation. Hβ finds, therefore, that he must trail upon Queensland and South Australia to make good upwards of a million of shortage. Victoria about balances New South Wales, but Tasmania would -Aavt to provide small sums. The sittings of the Conference are secret. The State Treasurers are antagonistic to the vaking over of the railway revenue, which would aggregate well ever eleven millions, or" nearly ten times the amount the Federal Treasurer requires to cvver the deficiency. The Treasurer of New South \\ ales considered that it was not a favourable time to transfer debts, nor could he »cc, that the States could as yet bind themselves to entrust their borrcwing p-.-W----ers to the Federation. Tht proposal to pay the gross railway receipts i»ti the Federal Treasury, even if the btnk wen; afterwards returned, was wholly unacceptable. The Victorian Treasurer shows more cordiality towards Sir Wm. Turner's views, and on some points is an advocate of them.