AUSTRALIA'S DEBTS.

Press, Volume LXII, Issue 12522, 18 June 1906, Page 7

AUSTRALIA'S DEBTS.

STATEMENT BY MR COGHLAN. United Pre«a Association—By Electric Telegraph—Copyright. SYDXEY, June 16. A lengthy communication from Mr T. A. Coghlan, Agent-General for NewSouth "Wales, on the amalgamation of the State debts has been received by the Premier. Mr Coghlan cays that it muet be confessed that the difference in tho attitude of tho British, investor towards Australia can be accounted for only on the supposition of mistruet arising from consideration, not of the resources of tho States, but of their politics. The secret of this mistrust is that there is a considerable section of tho Australian people who favour legislative proposals tending to diminish the security of private property. It is futile to ignore the existence of a certain amount of prejudice against Australian investments. He forms tho opinion that the Commonwealth would not at first bo able to obtain money on better terms than tho States, buVin the course of time tho Commonwealth would stand in a superior position. At present it would bo impossible for the Commonwealth to consolidate and convert the State dt-'bts on a three per cent, basis. It might look forward to a time when, with the States.and the Commonwealth working harmoniously together, tho unmistakable distruet now existing in London would bo removed. Commonwealth stock should be threo per cent, and the entire London debt should be taken over by tho Commonwealth, which should monopolise the London market. There does not (continues Mr Coglan) appear to be any urgency such ac to warrant tho Commonwealth entering tho London market as a seller of three per cent, stock at ninety, which is tho best to be expected at the present time. It would therefore be wise that any arrangement entered into should take effect at a date to be decided upon by the Federal Government when the movements of the market were in its favour.