STATE DEBTS.

Marlborough Express, Volume XLII, Issue 103, 2 May 1908, Page 5

STATE DEBTS.

PROPOSALS BY MR DEAKIN

PREMIERS DISAPPOINTED

[press association.] (Received May 2, 10.30 a.m.) MELBOURNE, May 2. Mr Deakin and Sir William Lyne attended the Premiers' Conference yesterday. Mr Deakin outlined the Government's proposals on financial questions. Referring to the "Braddon Blot," he declared that , financial federation was intended to be real. Although temporarily postponed, perhaps by the operation of the Braddon Clause, the federation of their finances should be carried soon, and as far as possible. This would _ not mean fusion; on the contrary, "it had been recognised for some time to be a very desirable thing that within certain limits there should be as far as possible complete separation of State and Commonwealth finance. He urged that the continuation of separate State debts and the creation of new State debts?- would prove expensive. He suggested that one Australian stock should be substituted for all existing stocks, and floated at a fixed rate of interest. He anticipated ,that the price of that stock would be reduced to a minimum. The scheme would be found to contain complete proposals as to present indebtedness anid future borrowing. _ Amongst other things, it would relieve three States from paying old-age pensions. The full scheme will be presented next Tuesday, when it will be submitted to the Federal Parliament. It is unofficially stated that the scheme proposes to transfer the whole of the State debts, the States to retain their railways and other public works free, of debt. Future State borrowing .will be made through a special Commission! so as to interfere1 as < little aspossible with State initiative, the States to find interest on all new loans.

The Premiers are disappointed at the want of definiteness about ( Mr Deakin's statement.