AUSTRALIAN FINANCES.

Evening Post, Volume LXXI, Issue 142, 16 June 1906, Page 5

AUSTRALIAN FINANCES.

STATE DEBT AMALGAMATION SCHEME. AN INTERESTING REPORT. - [PnESS ASSOCIATION.] (Received June 16, 9.38 a.m.) SYDNEY, Thia Day. A lengthy communication from Mr. Coghlan, Agent-General for New South Wales, on the amalgamation of the State debts, has been received by the Premier (Mr. Carruthers). Mr. Coghlan states that it must be confessed the difference in the attitude of the British investor'towards Australia can be accounted for only on the supposition of mistrust arising from consideration^ not of tho resources of the States, but of their politics, The secret of this ludicrous assertion is that there is a considerable section of the 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. Mr Coghlan forms the opinion that the Commonwealth would not at first be able to obtain money on better terms than the States, but in the course of time the Commonwealth would stand in a superior position. At present it was impossible for the Commonwealth to consolidate and convert the State debts on a three-per cent, basis. It might look forward to the. time when the States and Commonwealth would be working harmoniously together, and the unmistakable distrust now existing in London, covfld the"n be remoyed. The Commonwealth stock should be three per cent. The entire London, debts should, in the writer's opinion, be taken over by the Commonwealth, which should monopolise Che London market . Mr. Coghlan adds : "There does not appear to be any urgency, such as to warrant the Commonwealth entering the London market as the seller of three per cent, stock at ninety, which is tho best to -be expected at the present time, and 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 tho movements of the market are in its favour."