Federal Convention.

New Zealand Mail, Issue 995, 27 March 1891, Page 1 (Supplement)

Federal Convention.

(PER PRESS ASSOCIATION - .) Melbourne, March 19. The Argus, discussing the attitude of "New Zealand, says it is probable enough that what Captain Russell said was correct —namely, that Australia would have to take certain lines of produce from New Zealand for all time. .If genuine superiority existed in any article the demand would not be killed by the imposition of Customs duties. . It is possible th >t active trade will continue to exist even if New Zealand remain outside the Federation. The reasons given by New Zealand point to the conclusion that she must stand apart for the present, and must elect at some future time whether she will come into the Australian Union, or will form a Western Pacific Confederation, embracing in some loose form the islands of the Western Pacific. She could do a great work for the Empire in this direction. It is courteous of New Zealand to send delegates, but their presence need create no misapprehension as to her real position. Sydney, March 20.

The sub-committees-appointed by the Federal Convention are now sitting in private. It is understood the question of State rights is the principal subject yet discussed. The method of settling disputes between the two Houses over money Bills has been dealt with. It is believed that the matters to be taken over by the Federal Government will be the same as those assumed by the Dominion of Canada. It is understood that the sub-com-mittees appointed by the Federal Convention have not yet arrived at a satisfactory conclusion with regard to the powers of the Senate over money Bills, although it is expected that a compromise will be brought about by agreeing to give the Senate the power to"require any point of principle to be sent up as a separate Bill and not tacked ou to a money Bill. The Committee appointed to consider the question of the Federal Judiciary are believed to have now practically completed their work. It is understood that their report will provide for Supreme and inferior courts, and that with regard to appeal the decision of the Federal Judiciary shall be final, except on questions of Imperial interest. The result of the deliberations of the Trade and Finance Committee is not known. Sydney, March 21. It is reported that the Select Committee of the National Convention, appointed to consider the constitutional machinery, will propose that the Senate should consist of from 40 to 50 members, about seven representing each Colony, to be chosen by the respective Parliaments, and elected for six years ; that the popular Chamber consist of one representative for every 30,000 of inhabitants, and be elected for three years. Special provision is, however, to be made in cases such as Western Australia by fixing the minimum number of members at a certain figure. It was decided. to utilise the present elective machinery. Sir G. Grey endeavoured to obtain recognition of the one man one vote system, but without any result. It was further decided that members of the Executive may sit in Parliament, but shall not be compelled to go before their constituents to be re-elected when accepting a seat in the Cabinet. The name of the Lower House is to be changed to that of the Federal Assembly. It is understood that the Victorian tariff will be the tariff, and to be against the world. Sydney, March 22. It is understood that the Constitutional Committee of the Convention has fixed the Governor-General’s salary at LIO,OOO per annum, and the question was raised whether Australia is to have a voice in the selection of a gentleman for the po-ition. The Executive is to consist of seven members, elected for three years by both Houses, except if called upon to resign by a majority of both houses. A proposal will be made to pay the members an honorarium of LSOO per annum. It is unlikely that the Committee will be in a position to submit their report to Convention on Tuesday, but in any case the Bill will not be ready on that day. Sydney, March 23. It is understood that the following resolutions have been decided on by the Financial Committee of the Federation Convention:—(l.) That immediately on theFederalConstitutioncoming into operation, the officers of departments which come under Federal control shall become Federal officers. (2.) All necessary lands buildings, works, and material connected with the departments placed under Federal control shall be taken over by the Federal Government on terms to be arranged. (3.) That uutil the uniform tariff comes into force existing tariffs shall continue, subject to such modifications as the Legislatures may make, and the duties shall continue to be collected as at present, but by Federal officers. (4.) That after the establishment of such uniform tariff, trade and intercourse between the federated Colonies, whether by means of internal carriage or

coastal navigation, shall bo absolutely free. (5.) That after the uniform tariff has come into operation, surplus revenue may fairly be distributed amongst the various colonies according to population, but as the duties now contributed by the people of the various colonies are so unequal ic would be unfair .at present to distribute the surplus on this basis. The Committee therefore recommend that the revenue from Customs and Excise be devoted first to payment of all expenditure authorised by the Federal Government, such expenditure to be charged to the several Colonies according to population, the balance to be returned to the Colonies in such way that the amount paid by each Colony for the Federal expenditure, added to the amount returned, shall be as nearly as can be ascertained the total amounted contributed by each Colony on dutiable articles consumed. (6.) That besides borrowing money on the public credit for the purposes of Federal expenditure, and with the view of improving the general credit and avoiding complications arising out of the existence of various stocks held under different conditions, the Federal Parliament shall be empowered, with the consent of the colonial Parliaments, to adopt a scheme for the consolidation of the debts of the various Colonies, each Colony being held separately liable for its proportion of the principal and interest. (7.) It is estimated that the total expenditure of the Federal Government will not exceed 11s 3d per head, a large proportion of which will practically be expended on existing services, the control of which will be transferred to the Federated Government. TITLE OF THE 3SEW NATIONALITY. SCOPE OF LEGISLATION. Sydney, Maroh 24. The Constitutional Committee of the Federal Convention has decided that the Governor-General shall be appointed by the Crown, bat the Governors of the vsrious States are not to be so appointed. It has not been made public whether any conclusion has been arrived at as to the method of appointment of the latter. The Committee has agreed that the Federation shall be called the Commonwealth of Australia. Clause 8 in the report furnished by the Financial Committee provides that the Federal Government shall be empowered to legislate on the following subjects : Coastal beacons, buoys, and lighthouses, navigation, and shipping ; postal and telegraphic system; intercolonial rivers and navigation thereof; quarantine ; military and naval defence ; raising money by any mode or system of taxation for Federal purposes, but all taxation to be uniform throughout the Federation ; salaries and allowances of the Governor-General, civil and other officers under the Federal Government ; trade and commerce ; currency ; coinage ; banking and the incorporation of banks ; issue of paper money, bills of exchange and promissory notes as a legal tender; bankruptcy and insolvency ; patents, inventions, designs, trade marks, and copyright; weights and measures ; and the appropriation of all moneys raised by the Federal Government. The Committee, recognising that one of the main objects of the Federation is the freedom of commercial intercourse between the Colonies, and that that oannot be accomplished until a uniform tariff and Customs excise is in force, recommends that the first business of the Federal Parliament be to frame the adoption of such a tariff. REPORT OF THE JUDICIARY COMMITTEE. The Judiciary Committee suggests that the following provision be inserted in the Federal Constitution : •'That the judicial power of the Federation be invested in one Supreme Court, to be known as the Federal Union High Court, and in such Inferior Courts as the Federal Parliament may from time to time create and, establish. The Judges both of the Supreme and Inferior Courts shall hold office during good behaviour, and shall receive such salaries as shall from time to time be fixed by the Federal Parliament, but the t-alary paid to any such Judge shall not be diminished during his continuance in office. The Judges of the Supreme Court and of such Inferior Courts as the Federal Parliament Bhall from time to time establish shall be appointed, and may be removed or suspended, by the Governor-General by and with the advice of the Federal Exeoutive Council, but it shall not be lawful for the Governor-General to remove or suspend any Judge of the Supreme Court, or any Judge of snoh Inferior Court, without an address from both Houses of the Federal Parliament recommending his removal or suspension, such address to be adopted by a majority of two-thirds of the total numbers of each House of the Federal Parliament. The iudicial power of the Federation shall ex. tend—“l. To all cases of law and equity arising under the Constitution Act. "2. To all cases arising under any laws made by the Federal Parliament under aiiy treaty made by tb6 Federation with any other country. “ 3. All cases of Admiralty and maritime jurisdiction. “ 4. All cases affecting representatives of other countries and Consuls. ‘*s. Cases iu which the Federation shall be a party “6. Tojiisputes between two or more provinces.

“7. To disputes between the residents in different provinces. “8. To disputes relating to land and other property claimed under the laws of the different provinces, or to any right of franohiße or privilege so claimed.” But nothing shall be construed to extend the judicial power of the Federation to any suit iu law or equity commenced and prosecuted against any province by any person. In all cases affecting Public Ministers or other accredited representatives of other countries and Consuls, ~ and in all oases in whioh a province shall be a party, or in which a Writ of Mandamus or Prohibition shall be sought against a Minister of the Crown for the Federation, a Supreme Court shall have original jurisdiction, and in all other cases the Supreme Court shall have appellate jurisdiction, both as to the law and fact, with such exceptions and under suoh regulations as the Federal Parliament shall authorise. The Federal Parliament may from time to time confer original jurisdiction on the Supreme Court in such cases as it may think fit. The Supreme Court Bhall have jurisdiction, with such exceptions, and subject to such regulations as the Federal Parliament shall from time to time prescribe, to hear and determine appeals from all final judgments, deorees, and orders of the Highest Court of Final Resort now established in any of the Colonies or any Highest Court of Final Resort which may hereafter be established in any Province of the Federation, whether Buch Court is, or shall be, a Court of Appeal, or of original jurisdiction, and the judgment of the Supreme Court shall in all criminal cases, and in all eases arising under any law made by the Federal Parliament, or any law made by the Legislature of any Province be final and oonelusive. In all other oases it shall be optional for the appellant to select tbe Supreme Court or the Court of Appeal of Great Britain and Ireland to hear the appeal, bat if he accepts the Supreme Court, the decision of that Court to be final. The Federal Parliament may from time to time enact that any appeals whioh by any law are now allowed from any judgment, deoree, order, or sentence of the Supreme Court of any of the colonies to the Queen’s Privy Council shall be heard and determined by the Supreme Court of the Federation, and that tbe judgment last mentioned in all appeals which the Federal Parliament shall from time to time direct to be heard and determined by it sh»ll be final and conclusive. Trials In connection with all crimes recognisable by any Court established nnder the authority of the Constitution shall be by jury, and every sneh trial shall be held in the province where the crime was committed, and where the crime was not committed within any province the trial shall be beld at such place or places as the Federal Parliament may direct. Every person admitted by the Supremo Court of any Province to appear and practice as counsel, or have audience therein, shall be subjeot to such rules and regulations as the Judges of the Federal Supreme Court shall from time to time prescribe, in regard to character and good behaviour from the date of previous admission by the Supreme Court of any Province, and on payment of fees be entitled to appear and practice as counsel, and be given audience in the Federal Supreme Court and such inferior Courts as the Federal Parliament shall from time to time create and establish. Every person admitted to appear and practice as counsel in the Federal Supreme Court shall be entitled to appear and practice as counsel in the Supreme Court of any Province.” The above is substantially the report of the Judiciary Committee. Sir S. W. Griffith (Queensland), Mr C. C. Kingston (South Australia), and Mr A. J. Clarke (Tasmania) have been entrusted with the task of drafting the Constitutional Bill. The Convention resumed its sitting at 11 a.m. A telegram was read from Sir B. O’Loghlen, stating that Victoria woald never surrender control of her Customs duties. Victoria was in favour of Federation, not amalgamation of protection, but not of intercolonial freetrade. Sir J. C. Bray objected to the telegram being recorded, and moved in that direction, which was carried. A lengthy letter was received from Mr Justioe Richmond, of New Zealand, on the Judiciary proposals. Sir H. Parkes said it was a valuable contribution. Mr Clark, as Chairman of the Jndioiary Committee, stated he had read the letter, and moved that it be printed and circulated among the members of the Convention. Carried.

Sir S. Griffith intimated that the Constitutional Committee had not finished its labours, and expressed surprise that reports of the Judiciary and Finance Committees had leaked out, especially as what purported to be the report of one committee bad not yet reached tbe Constitutional Committee. Sir H. Parkes, on behalf of the officers of the House, said the most sorupulous oare had been taken to keep the proceedings of committees seoret, and had no idea how the reports had reached the press. ' Mr Munro, Chairman of the Finance Committee, said reports had been sent to members either by post or by hand, and he was confident they had not divulged the contents. Mr Clark said it was evident the rough draft of the Judiciary report had got astray in some way. Alterations had Btill to be made in it. Mr Dibbs advooated furnishing the press with a copy of the Constitutional Commit-

tee’s report as soon as it was ready, instead of waiting till the Convention met. A long discnsßion ensued, during which Sir G. Grey declared a mistake had been made in allowing the Committee to sit in seoret, as otherwise the whole public of Australasia, by means of the press and telegraph, might have been allowed practically to sit with the Convention and know all the views laid down, and it would have been more satisfactary had thi3 been done. The Convention has adjonrned until Tuesday next. March 25. The Sub-Oommittee is engaged drafting the Constitutional Bill. COMMENTS OF THE MORNING POST. (FER PRESS ASSOCIATION.) London, March 23. The Morning Post, in an article referring to the National Convention in Australia, says the results so far achieved are far greater than might have been expected, aud that there is no stronger proof of common interests than the adoption of Freetrade between the Federated Colonies. The Post considers that the initiative in Freetrade between the Mother Country and the Colonies mast be undertaken by the former. PROGRESS OF THE DEBATE. CLEARING AWAY DIFFICULTIES. (from our special correspondent.) Sydney, March 11. The debate upon the Federation resolutions, introduced by Sir Henry Parkes, has now continued without interruption for six days. The delegates, however, take it very easily, commencing their sittings at 11. in the morning, sitting until 1 o’clock, resuming at half past 2, and rising at 4. Even with these liberal margins for preparations, the speakers frequently regret their lack of time to get up the subject as they desire to do; and the mass of quotatations, State papers, and more popular works upon the subject of Constitutional Government —more especially the existing federal forms of it—show that the delegates are diligently endeavouring to inform themselvas thoroughly upon the subject. There has been a good deal of impatience manifested occasionally over the protracted character of the debate, but this feeling is an unreasonable one. The delegates are dealing with a very large question, and one which is comparatively new to most of them. The speeches show that in the minds of many the questions involved assumed a somewhat chaotic form. The debate has served to clear away many difficulties and to place those that remain in definite shape, to be threshed out in committee. . . . . In extenuation of the short sittings, it may be urged that four and a-half hours’ attention to speeches following in the same track, aud in a majority of instances heavily charged with Blue-book facts and figures, is quite as much as human nature can comfortably bear. ’J he proceedings in the Chamber are prosy to a degree, and on these warm autumn afternoons, it is evident that many of the delegates only succeed in keeping awake by a strong effort, while some abandon the attempt and lapse into into a comfortable slumber. The oratory of tl e debate has not. been remarkable for its brilliancy, but has exhibited much shrewd common sense and genuine ability. The Convention is not unworthy of Australasia, nor unequal to the work before it. Physically, its members might make fair work with a task requiring considerable muscular endowment, for one of those people who possess a faculty for compiling curious scraps of statistical Information has discovered that the average height of the delegates is sft il 5-6 in, or as nearly as possible 61t. Fourteen are 6ft and upwards, the tallest being New South Wales’ representatives—Messrs J. P. Abbott and G. R. Dibbs' each of whom is 6ft 4in. The average weight is 13st 131 b, the heaviest delegate being Mr Playford, who scales ISst 71b. Theie is another who reaches 18st, a third who is 17st 101 b, and a fourth who is 17st 31b- ... . If the Convention has found its statistician.it is also not without its poet, and the muses are personified in no less distinguished a representative than the Countess of Jersey, wife of the Governor of New South Wales. The new mistress of Government House is evidently a lady of talent, and with considerable force of character. She delivered an admirable little address at the opening of the Presbyterian Ladies’ College the other day, in which she endeavoured to impress her hearers with the truth of the axiom that “ To gain knowledge for the mere sake of possessing it is selfishness ; to gain knowledge for the. mere love of displaying it is vanity; but to gain knowledge for the sake of being useful to others is true Christian charity.” The chief toast of the Federal banquet, “ One People, One Destiny,” had appealed strongly to Lady J ersey’s imagination, and inspired her muse. The result was the production of the following pretty verses:—

Who are the people, and whence have they - sprung, Whose horoscope thus is forecast ? What sage has written, what minstrel has* The deeds which they wrought in the past? What mothers have borne and what fathers begot The sons who to Empire lay claim ? Did they wrestle with doom, did they conquer their lot, And win them a place and a name ? Hither they came from the uttermost sea,} The land of the mist and the foam ; Cradled in Hope by the nurse of the free— Say, have they forgotten their home ? . Their fathers, the sea-kings, bore sway in the north, Their mothers knew nothing of dread, But smiled as they kissed them and bade them go forth To triumph—with God overhead. They battled with ocean, tempest and storm, With loneliness, hunger and heat; With nature in many a perilous form, And never acknowledged defeat. They won from the hannt of the savage and The pasture, the grain and the gold, And made a new home for the highest and least Of the country they loved of old,

What is the Destiny which ye foretell The sons of the men who o’ercame ? What is their gift to tbe land where they dwell Of glory, of riches and fame ? Yet young doth she stand ’mid the elders of earth, Her foot on the ladder of fate, And asks of the children to whom she gave birth What future is hers to await.

The answer is theirs—the Father who led Their sires, like Israel of yore, All blessings of heaven and earth has shed On forest, on plain and on shore, Strong-limbed and trne-hearted—no tyrant to grind, No foeman to bid them beware— To no happy race in the tale of mankind Has risen a vision so fair. Let them, when heart has been knitted to heart, The future in calmness abide ; Let them, when hand has with hand taken _ part, Jb ear God, and fear nothing beside. Their Queen has the keys of an Empire to keep, Where sits and where rises the sun ; Their brothers, her wardens, are lords of the deep; One People—their Destiny one. Leaving the poetic and prophetic severely alone—for the debate has been singularly devoid of poetry, and eminently practical—the delegates have steadily threshed away at the question of Federal as distinguished from State rights, and other kindred phases of the Federation problem. The chief bone of contention has been the relative places and functions of the two branches of the Legislature forming the Federal Government. From tbe Victorian delegates came a strong protest against the proposal to endow a Senate, composed of an equal number of representatives from each State, with powers equivalent to those vested in the Representative Chamber, elected by the Colonies on population basis. Some of the delegates of the larger Colonies contended that both Houses of tbe Federal Parliament ought to represent popular majorities, while others contented themselves with maintaining that the Senate must be prevented from amending in detail money Bills. It is utterly unreasonable, they argue, that the representatives of a colony like Western Australia, for l example, which at present has only 45,000 inhabitants, should have an equal voice in snch matters with Victoria and New South Wales, each containing nearly a million and. a quarter of people. The smaller Colonies, on the other hand, naturally struggle for the endowment of the Sanate with equal powers, and they assert that this is necessary to secure the States against encroachments by the Dominion Government. They point to the experience cf the United States, where the Senate has powatto with money Bills in detail, and where that Chamber has established itself in the. very highest estimation of the people, and. is re- f garded by students of political institutions aa- y one of the finest legislative bodies in ine-war-Td. To this the advocates of the other view reply that there is no analogy between the Constitution of the United States and that proposed for Australia, because in the former there is no Responsible Ministry. The Federal Government, limited in its action by the restricted character of the delegated powers, could not encroach upon the functions of the States, whereas if the Senate were endowed with power to initate or amend money Bills, the smaller States would form leagues and control the larger ones, and serious friction would arise between the two Houses. Mr Gillies, exPremier of Victoria, -suggested as a compromise that the Senate should have the power of vetoing new taxation Bills, which should be submitted to it separately. With the exception of Sir George Grey, who considered the endowment of the Federal Government with the power of limiting the legislative functions of the States necessary to prevent a breakdown of the Constitution, every delegate who has spoken has strongly insisted upon the protection of the State Parliament against any encroachment by the Federal Government upon their legislative independence in all matters except those which may be specifically delegated to the Federal Parliament. It may be taken for granted, therefore, that the Constitution adopted will follow upon those lines. The settlement of the relative positions of the two Houses, and the powers of the Federal Government, will no doubt become the subject of extended debate in committee, but from the temper displayed by the delegates there is no reason to doubt that outstanding differences will be settled easily enough by compromise. Another point that has occupied a good deal of attention is the relationship of the Federal States to the Home Government. Mr Gillies considered that the existing tie had upon the whole been fonnd to answer so well that it would be a mistake to alter it in any material respect. It was neither necessary nor expedient to even introduce the question of Republicanism, enjoying ns the Colonies do the freedom secured under their elastic constitutions. A

hundred years hence would be time cnough-to-think about a Republic. Most probably a ' majority of the Delegates will favour leaving the nomination of the Governor-General in the i’jands of the Crown. The election of the Deputy-Governors of the several States, as suggested by Sir George Grey, instead of their nomination by the Federal Government, as provided under the Canadian constitution, is not unlikely to receive very considerable support. The character of the Federal Cabinet in all likelihood will be settled upon, the familiar lines of English constitutional practice, instead of adopting the American system of a purely official executive, or the Swiss plan of a Cabinet selected from both Houses of the Legislature. Intimately connected with the relationship of the Dominion towards the Imperial Government is tbe question of appeal to the Privy - Council. Mr Wrixon, ex-Attorney-General of Victoria, who has just returned from England } after prosecuting such an appeal, held that, appeals to the Privy Council upon laws which are common to the Empire must be continued, an opinion that was shared by Mr Clark, the Attorney - General ol Tasmania, who bad § studied wiih deep attention the problem of . Federal Government as it exists in Europe and America. A separate judiciary for each Colony with a Federal High Court of Appeal, whose decision shall be final on Australian matters, seems to be the basis upon which the judicial - . problem will finally be adjusted.

Much'less has been heard of the tariff difficulty than might have been anticipated. It is Indeed manifest that Victoria and South Austin 1 ia are willing to risk a good deal of ‘ protective exclusiveness, and that New South Wales is prepared to jeopardise of trade in order to get rid of the present irritating border duties. The Federal .possession of the Customhouseis accepted as a sinecjuanon of federation, although the Federal duties are left for after settlement. To colonies, which largely depend upon the Customs receipts .for the revenue necessary to meet their liabilities, details in this matter are important, and New Zealand could scarely decide whether it be. possible for her to enter the Union until this matter is finally adjusted. It is pretty certain, however, that the fiscal policy of the new Dominion will be inter-State free trade and protection against all the rest of the world, and. Mr Dibbs, in his speech, repeated the warning he interjected into Captain Russell’s address, regarding the ' fate which will await New Zealand if she stands out. A boycott placed upon our produce is threatened in so many words, while our influence with the Home Government with respect to the South Sea Islands and other external questions would undoubtedly be overweighted By the preponderating authority of the Australian Dominion. These are considerations which must not be lightly weighed by New Zealanders/- a The Western Australian delegates who have yet spoken express doubt whether that . Colony will enter the Union at present. Having just come into possession of a vast estate, the public men of the little Colony are disinclined to surrender one jot of their control over it. They hinted that a . Federal railway bringing them Into connection vvith the rest of the Australian continent, might place the matter in a different light, but the - Federal Government in the first moments of its existence will hirdly be prepared to throw this soo for the sake of securing the adhesion of the Western Colony. The Sydney press are beginning to treat it as a foregone conclusion that neither New Zealand nor Western Australia will come in. I am disposed to think that if the terms are at all favourable New Zealand will make a grievous and fatal error in standing out. Of course, until the .Federal Constitution is settled, a final decision upon this subject would be premature, but nothing has yet been' developed which should cause New Zealand to forego the immense advantages which would accrue to her from an open Australian market for her grain, butter, fish, and other products. Sydney, March 16. The debate on the Federation resolutions introduced by Sir Henry Parkes has closed, after lasting seven days. Thirty-six out of the forty-five delegates have spoken, Sir Harry Atkinson being among those who refrained from expressing his views. His failure to take part in the debate was. not because he does not entertain very decided views on the subject or is unwilling to give expression to them, but was entirely due to the very unsatisfactory condition of his health and the warnings which have been repeated to him by the doctors in Sydney that he must beware of excitement or over exertion, the arterial disease from which he is suffering being liable to take a very unfavourable and perhaps even fatal turn unless Sir Harry is extremely careful. . I think I am warranted in stating that the ex-Premier of New Zealand holds very pronounced opinions upon the expediency of New Zealand joining the Federation un'.le*s some insuperable obstacle, which has hoc y®t manifested itself, turns up. He believes that with its large representation upon population basis in the House of Representatives and its equal representation as a State in the Senate, New Zealand would be able to hold its own and to exercise considerable influence in the affairs of the new Dominion. He sees great danger to our trade, and loss of influence in a policy of isolation, and great expansion of trade and an easy means of advancing any foreign policy which New Zealand may conceive to bs to its advantage by securing the combined weight of Australian influence. In the matter of defence New Zealand, with its large seaboard, has also much to gain from inclusion in a Federated Australasia. Sir Harry Atkinson regrets the disposition manifested in the Convention to separate its military and naval forces from those of Great Britain. He believes it would be far better to adopt the system akin to that secured under the Naval Defences Bill. If, he says, the permanent force maintained by the Dominion were made an integral part of the British Army it would cost leas, would not draw so much upon the colonial population which has more important work to do, while fluding a larger field for those colonists who desired to enter the military profession. These colonies would become the most popular stations for military service, and would really obtain the gratuitous services of thousands of efficient emigration agents among the officers and men who returned Home after being locatod here for some time; No doubt Sir Harry will put his views on this subject before the Committee of the Convention when the question of defence is under consideration. The Hon Captain Russell has hitherto held the opinion that New Zealand would not come into the Federation at first. I believe, however, that he is modifying his ''View's in this respect. As the work of the Convention progresses, what I stated in former letters becomes more and more clearly formulated, that while all the colonies have the opportunity now of joining upon equal terms it is extremely improbable that the opportunity of doing so will be pieserved to them for-an indefinite time. The Sydney Morning Herald, in an attitude upon the attitude of New Zealand, says :—lt is certainly futile to devise plana for remaining outside the Federation so far as its risks and its responsibilities are concerned, and at the same time to stand inside for the purpose of sharing its benefits and its advantages. It is - useless to dream of avoiding Federation and securing free commercial intercourse. Feder« ation and reciprocity of trade must go together. It has been all in our own case. It has been clear to us in these colonies for years that intercolonial Freetrade would never come save as part and result of Federation. The desire to secure Freetrade is now one of the strongest motive powers of the Federation movement. The two are inseparable as far as Australia is concerned. -They will be equally so for New Zealand. :I* may be presumptuous to offer an ■ opinion with regard to a choice whloh L we have admitted must bo wholly loft to ‘

New Zealand, but we have not the slightest doubt that New Zealand would take the wisest ’yiew of her true and permanent interests by joining the Federation, and by joining it now She is as much interested in it on most general grounds as are the Australian colonies. On some grounds —as, for example, those of trade-she is. perhaps, more interested than any other. New Zealand is emphatically an exporting colony, producing abundant exports suited for the supply of Australian markets- Surely it is her interest to have those markets open to her. It is merely the illusion of a vain hope to suppose that when the federal tariff is framed any exception can be made for New Zealand. There will be no “favoured nation” clause. But, apart from this, the interest of New Zealand in defence, in the uniformity of law, in the strength which comes... from union, is precisely identical with our own. The fearß and misgivings formerly felt ought to be allayed by the extremely moderate and cautions proposals of the Convention. New Zealand can now see the strong interest shown on all sides for the conservation of all existing Stats rights, the definite circumscription of the powers and authority to be delegated to the Federation, the spirit of generous care for the weaker States which has animated all of the discussion, the first stage of which is now ended. Everything has gone to minimise the nature and extent of the risks, and to encourage those who felt doubts of a successful issue. It is, of course, easy to say that the chance will always be open to New Zealand to some in at any future time. But this is one of the cases where irresolution tries to borrow the watchwords of prudence. It is by no means sure that if the opportunity be now lost it can at any time be regained. Federation cannot leave New Zealand precisely where it was. That Colony must come nearer to us, or mußt move further away.

These opinions coming from the Freetrade organ in Sydney, are ominous ; but I feel bound to say that they correctly represent the feelings of the Freetrade section of the Convention. The views of the Protectionists, who form the majority, are still more pronounced. I candidly believe that the Victorians would prefer New Zealand to stand out, a view which will doubtless be shared by the other Colonies when they begin to make common cause together. The attitude of the Premier of Victoria (Mr Mnnro), and Mr Deakin, a member of the Gillies Ministry, which has been endorsed by the Protectionist section of the press in Victoria, has been severely criticised. They demanded that the Protective policy of Victoria should not be immediately interfered with—that time shall be given before the trade restrictions, even in relation to other colonies are removed : and they further insisted upon the narrowing down of the functions of the Senate, which will represent the States, to limits which will make that body subservient to the representative chamber. The Daily Teiegiaph, in commenting upon these conditions, says ; —lf that attitude is persisted in we are perfectly sure that any constitution drafted on those lines will be rejected by the Parliaments of Queensland, South Australia, and Tasmania. Rightly or wrongly, there is a suspicion abroad that these gentlemen have come to the Convention with Federation on their lips and provincialism in their hearts. That this suspicion is not altogether unreasonable is indicated by their attitude in this Convention, by the utterances of their newspaper organ in Melbourne, and by the actions and utterances of one of them—Mr Deakin—at the Melbourne

Conference last year. . . . We do not believe that the section of Victorian politicians represented by Messrs Munro and Deakin are anxious for Federation except on thß “ give and take ” principle in which Victoria shall give nothing and tske all. If they are assured that the protectionists majority in Viotoria shall be enabled to make up the majority in the Federal Legislature ; if they are “guaranteed” the maintenance of the present fiscal inequalities in Australia for a number of years for the benefit of Victoria, and if they can rivet the protectionist policy of Viotoria Into the Federal Constitution for all time, then we may expect the Deakin-Munro party to cooperate in Federal work. If that is to bs the price of Victoria's co-operation, then New South Wales will prefer to work out her destiny independent of Viotoria. It may be remarked, however, that Mr Gillies, the late Premier of Victoria, and other Victorian delegates who have spoken, took a much more conciliatory and reasonable tone, and it by no means follows that the opinions of Messrs Munro and Deakin represent the views of a majority of the people of Victoria, or that those delegates will press their contention against the majority of the delegates from other Colonies to the extreme of preventing the attainments of Federation. It is also worthy of notice that Mr McMillan, Colonial Treasurer of New South Wales, and an ardent Freetrader, seemed inclined to meet the Victorian demands half way. He said ; “ I think an interval shonld elapse before the tariff is arranged (on account of the localism that has been exhibited), so that they can regard the question from a higher standpoint. Therefore it should be left to the Federal Parliament to decide the tariff for the union.” Nevertheless, the differences that have arisen on this point show that there are still rocks ahead of Federation, and Sir Henry Parkes in his closing address, having the possibility of failure in view, quoted statistics to show that New South Wales was in a better pcsition to stand alone than any other Colony. He also spoke rather strongly with regard to the attitude of Western Australia, pointing out the large seaboard which it would have to protect, and remarked that the small Colonies must be prepared to make _ sacrifices as well as the large ones. Reviewing the general tenor of the debate, however, we are perhaps not justified in treating these differences as anything more serious than family jars, which do not offer aDy real menace to the Union.

Among the most noteworthy speeches in the latter part of the debate was that delivered by Mr McMillan, Colonial Treasurer of New South Wales, who dealt more in detail than any other opoakcr with the

I financial aspect of Federation. Ha stated \ that a uniform tariff for the whole I of the Colonies would have to preci de intercolonial Freetrade. There had boen a certain amount of discussion in regard to this, and when they thought of the antagonism of some of the colonies it was remarkable that it should all be over the small amount of a quarter of a million of money. He found that the two greatest sinners or gormandisers were Victoria and New Zealand. New South Wales, for instance, drew £112,500 for intercolonial duties, and paid away £157,000 ; Queensland received from intercolonial duties £76,000, and paid £97,000. It was found that their friends from Victoria received £230,000 and only gave away £59,000, while in New Zealand they paid away only £IB.OOO and collected £140,000. Now the whole of the antagonism of these colonies, when they considered the debit and credit balancing of those figures, might be reduced to about a quarter of a million of money, and that was all that stood upon this question of freetrade between the colonies. With regard to Federal finance Mr McMillan said that at the present time they were all round, borrowing at the rate of 4T5 per cent; The loans outstanding at present totalled £181,000,0. 0, of which £7,545,000 had interest payable upon them. If the whole of these loans were converted into 3g per cents, there would be a saving of £1,151,000. The tendency of the finances was towards immense saving in the future, and he believed that Federated Australia would yet be able to borrow at 3 per cent. The question of the cost of the Central Government had also been raised. It was proposed to give over the who’e of the Customs of these Colonies lo the Central G vernment, and that of course was necessary for the preservation of the sovereign character of the Central Government, and control of the coasts. Now, he found that the whole of the revenue from the Customs totalled £5,641,000, and the total expenses of the Central Government, it was estimated, would be £2,240,000. That w«a to say. the people of Federal Australia would pay 12s per head for all the advantages of the Central Government, and £6,401,000 would be returned to the different colonies as a surplus. Now, if their debts were reduced to 3-J per cent, meaning a saving of £1,150.000, and if under Federal Australia they reduced it to 3 per cent which he believed they could do, they would save through that process a sum of nearly two millions—a sum sufficient for the purposes of the Federal Government. Of course, colonial fortifications would have to be taken over on a fair valuation, and those colonies, such a 3 Victoria, which had paid for fortifications out of revenue, would have to have returned to them a substantial sum which would reduce the debt of their colony. Mr McMillan did not furnish the details upon which he based bis estimate of the cost of the Federal Government, but the foregoing statement is the most definite that has been made in the course of the debate upon this subject. The addreas-in-reply by the President of the Convention, Sir Henry Parkes, drew a uiowded chamber, the limited accommoda. tion for the public being taxed to its utmost capacity. The speech wai more comprehensive than that with which Sir Henry opened the debate. After complimenting the delegates upon the manner in which the debate had been conducted, and making a few remarks upon the strong and disinterested position held by New South Wales, Sir Henry asked, “ Why did we want Federation ?” and proceeded to answer the question by saying that it was not because our system of government was not a good one. It was better than the United States system, or than the government of any of the European States. The real reason was because we found that these separate governments were not adequate for the larger duties which now devolved upon us as an Australian nation. In fact, the government of thin continent could not be properly conducted on any other than a federal basis. This subject naturally brought Sir Henry to the question of federal defence, and upon this point he warned Australians that the great enemy which they would have to fear would be the Chiuese and other nations of the East. Once these peoples were armed and had learnt the arts of modern warfare, they would, as Napoleon Bonaparte had said, be capable of conquering the world. Therefore it would be weil that our citizens should be able to defend themselves against aggression of this kind, , though no man should become a soldier unless it were absolutely necessary. Speaking upon the constitution of the Federal Government Sir Henry Parkes strongly preferred English to American models. He warmly eulogised English political institutions, and indulged in a panegyric upon the virtues of her Majesty the Queen. He was adverse to the Senate being granted power to amend money Bills, and opposed the snggestion that Ministers should be chosen from each colony, on the ground that it would unduly restiict the choice of the gentlemen forming the Government. The Ministry should be responsible only to the directly representative chamber. With regard to the functions of the Federal Government he expresssd the opinion that though the Federation need not take over all the railways, still the construction and maintenance of a through trunk line would come well within its scope. Summing up the difficulties which have been raised in the course of the debate, Sir Henry Parkes ranged them under four heads : —(1) The security for the smaller colonies ; (2) the equality of the two Houses (3) the Ministry to represent all the colonies ; (4) the Ministry to be responsible to both Houses. Upon these questions there is undoubtedly very great divergence of opinion. Sir Henry 'Parkes and his Colonial Treasurer, Mr McMillan, differing upon the power which should be conferred upon the Senate with respect to money bills, the latter holding that, except with respeot to the initiation of such bills, the Houses must havo coordinate powers. At the close of Sir Henry Parkes’ speeoh the Contention went into Committee. Sir Henry had defined the four vital provisions to bo discussed as follows :—l. The Federal Parliament. 2. The Federal Executive. 3.

The smaller States. 4. Such other provisions as involved difficulties. The Committee proceeded to take the resolutions seriatim, and considerable discussion arose upon the first, which runs as follows :—l. That the powers and privileges and territorial rights of the several existing colonies shall remaiu intact, except in respect to such surrenders as may be agreed upon as necessary and incidental to the power and authority of the National Federal Government. Sir George Grey made a strong effort to g-at the Convention to begin by dealing with the existing Constitutions of the several Colonies, more especially by assisting those Colonies where nominee Upper Houses exist, to get rid of them. He considered the present opportunity a good one to enable the several Colonies to recast their Constitutions and settle what form of Government they should live under. If this were not done now, another opportunity might not occur again, and„owiog to the power of the Upper Chamber the present form of Government, although obnoxious, would become rivetted upon the people. A majority of the delegates who spoke, however, considered that it would be foreign to the functions of the Convention and beyond their powers to deal with the Constitutions of the several States. They contended that the Colonies already possessed as much power to reform their consti.ution as was possible for the Federal Government to give them. Although he failed to carry his point upon the first day, Sir George has prepared a resolution, which he proposes to submit at a future sitting. It provides that the inhabitants of the several States shall have power to reform their Constitution by means of a popular vote taken upon any proposed amendment. Finally, the first resolution was agreed to on the voices, and the Committee having, upon the motion of Mr Deakin, postponed clause 2, “ That the tra->e and intercourse between the Federated Colonies, whether by means of land carriage or postal navigation, shall be absolutely free,” proceeded to consider clause 3 as follows : —That the power and authority to impose Customs duties shall be exclusively lodged in the Federal Government and Parliament, subjeot to such disposal of the revenues thence derived as shall be agreed upon.” Upon this being submitted Mr Deakin proposed an amendment for the insertion of the words “And Excise” after Customs, which provoked considerable dis enssion, a Tasmanian delegate pointing out that it would touch their beer duty, while a Queenslander suggested the possibility of the Federal Government imposing an excise duty upon the produce of only one Colony, as for example, sugar, which was produced only in Queensland. No decision had been arrived at upon this clause when the Convention adjourned. The mode of procedure contemplated by the Convention is to settle by a series of resolutions the basis of the Federal Consti. tution, npon which a Bill will be framed and again discussed in detail.