MONEY.

Otago Witness, Issue 3214, 20 October 1915, Page 49

MONEY.

SYDNEY, September 30

Our State Premiers are again conferring in Melbourne, with the Prime Ministerpresent, on the problem as to how they can possibly get more loan money. The Prime Minister cannot apparently hold out any hope of beir g able to repeat the assistance given some time back to the States with £18,000,000 raised by the commonwealth in London with the aid of the Imperial Government. The Federal Government needs for itself all that it can raise locally. It is estimated that between them the States want about £25,000,000 to carry on the works now in hand and to give effect to their programmes of further works, which are said to be all of a “ useful, developmental ” nature. The conference has so far not shown the needy State Ministers how they can borrow what they want, and they dread exceedingly having to return to their States with the tale that any further considerable borrowing is impossible and that there must be drastic pruning of expenditure. Their dilemma seems to be so great that they are listening with a readiness which was quite lacking in normal time to suggestions bv Federal Ministers that the whole of the State debts should be handed over to the commonwealth, together with the right to borrow money abroad for Government purposes in Australia. Several of the States have in the past scornfully rejected proposals of this nature, contending that it was unworthy and ridiculous to suggest that they could not do as well, if not better, on their proud own account. Now they are listening with chastened pride to the" assertion : ft Either you will have to lot the commonwealth do the financing or do without, and you know you are afraid to try to go on without borrowed money.”