FEDERAL CONVENTION.

Lyttelton Times, Volume XCVIII, Issue 11367, 7 September 1897, Page 6

FEDERAL CONVENTION.

[Per Press Association.) SYDNEY, Sept. 6. It is likely that the Federal Convention will take up the discussion on finance first, and subject the whole question to an exhaustive debate, leaving other matters to the adjourned Convention, unless the debate should occupy less time than is anticipated. The Convention this morning went into committee, and decided to take into consideration the clauses relating to finance. The Treasurers of the various colonies briefly outlined the amendments proposed by their Legislatures in the financial clauses.

Mr M’Millan, although a free-trader, recognised that New South Wales must give up free-trade in order that a workable financial scheme could be devised. He was willing to leave such a scheme to the Federal Parliament, and hoped that Mr Eeid would agree with this Mr Eeid interjected, “ I certainly do not. ■ Mr M’Millan said that he was of opinion that they ought simply to propose some plan such as in the present Bill for guaranteeing for the first five years a certain amount which would provide against the dislocation of provincial finances. Then as to the matter of the debt and the matter of railways they ought to leave them absolutely in the hands of the Federal Parliament.

Mr Deakin thought that it was essential to the full and perfect government of these colonies that such enoymons agencies as the railways should be taken over by the Federation. With reference to the return of the surplus he thought that the Federation should guarantee the return of a sura equal to that which each State at present receives from the sources which the Federal Government would take over, not for a period of five years but for all time. This amount would prevent the dislocation of local finance. .One of the best forms this return could take would bo for the Federation to take over equivalent portions of the States’ debts.,

Continuing- the debate after the luncheon adjournment, Mr Henry, ex-Treasurer of Tasmania, favoured leaving permanent financial arrangements to the Federal Parliament. He -would also leave the adjustment of finances for the first five years to the same authority. Mr Holder (Adelaide) strongly condemned the proposed bookkeeping system between the colonies during the first five years; such a scheme would . mean the postponement of the benefits of federation while it existed.

The whole afternoon was spent in financial discussion.

Mr Barton, in moving to report progress, said that ho noticed a distinct advance in federal feeling in the present debate. After the present week the Convention will sit in the evenings.