FEDERAL FINANCES.

Dominion, Volume 2, Issue 585, 13 August 1909, Page 5

FEDERAL FINANCES.

REVENUE DECREASE. STATES' RETURNS REDUCED. ESTIMATED SHORTAGE OF £1,200,000 ON CURRENT YEAR. (By Tclcßrapli.—l'rcsa Assoclallun.—CoDyrlclit.l (Rec. August 12, 0.15 p.m.) Melbourne, August 12. In the House of Representatives tho Federal Treasurer, Sir John Forrest, delivered the Commonwealth Budget. . Tho total revenue for the year 1908-09 is £14,349,835, a decreaso of £671,890 on 1907-08. ' . Customs and cxciso for 1908-09 yielded £10,843,985, a decrease of £801,367 on 1907-08. " Post Offico yielded £3,409,000 for 1905-09, I an inorease of £108,911 on 1907-08.. Bigger Outlay—Loss for States. The expenditure for 1903-09 was £6,419,364, an inorease of £260,471 on 1907-08. The balance handed back to the Stato Governments for 1903-09 was £7,930,471, a' decreaso of £929,125 on 1907-08. It is estimated that for tho current year 1909-10 the amount handed back to the States: will be £7,891,480. : : . ■ . : The revenue for 1903-09 is below the estimate by. £227,436, and-the expenditure is below the estimate by £94,215. For. tho current year 1909-10 it is estimated that Customs and excise will produce' £10,800,000, and Post Office £3,550,000; and that the total revenue mil be £14,555,000. Tho Probable* Shortage. .. The - following' estimated figures, show the position as it is ' expected to be, at the end of the current year:— : ' ".£ ' £ Revenue ... 14,555,000?' Expenditure 7,867;621 Deficit ... ... . 1,204,101' Handed 'to - - ' / ' States ■ ... 7,801,480 Total ... 15,759,101 Total ... 15,759,101 , With regard'to the estimated' shortage of £1j200,003. for the current year, as sh'owit by these figures, tlio; Government propose to ask ; for Parliamentary' authority to raise this amount -by tho : issue l ' of short-dated Treiisury bonds spread over a period of four' years,'redemption commencing in 1912. ' It. is considered that the estimated deficit is "merely, a'te'mporary shortage iu tho funds. Dofonco.—V/lreless Telegraphy. The defenco estimates for the current year, total -;£1,555,000, ,an ' increase' of £624,000. The . principal .items .. in the. increase , are £12,000, for a cordite for a shiall , arms, factory, and .£52,636 for. guns, gUh-niouhtiiigs,. and ammunition. V

:i - The' Treasurer stated that the Defence Bill would-provide for ■ physical training of all schoolboys from .the age of 12 to 'the age of, 14, and for elementary, military training from. ; the age of 14 to manhood.,. . , ; . In ■ connection : with,, wireless 1 telegraphy, it is proposed t-o make available for connecting/ up '.tho..'Pacific . Islands. • Oyer half a million is provided for now .telegraphs and telephones, and a similar .sum in each of the two.,following.years,, at' tho end of which it is expected that tho service will be in thorough order. Old Age ,Pensions ( A Hint to the states. j The: sum' 0f...'£1,560,P00^' t will; for old age pensions during tho current year!"' ;It is -expected that'this will bp sufficient;-but |t-bat in 'future a .quarter -of .a 'inillibn "nlbre; -will -be required, , ■ Anomalies in the tariff are' to be considered,. -.-■ 0 [[.' ; Tho Treasurer declared that, but for the .near, .approach ,Of . the end', of. the decade during which the Braddon Clause (dealingwith ,tho return of three-fourths of Customs: .to the States) is in operation, now' taxation Would ,be imperative;; He : threw-,out . a 'sug-. gestion'that. the/ States should refund tho £6,059,003 they had reqeived. during the. last-seven years over and above the statutory, thrpe-foixrtihsthoy were entitlod .to' unior the Braddon Clause. Ho strongly commendcd tho offer - by tho Commonwealth. l to<the Mother -Country of a Dfeadnought, or its equivalent. Dealing with the, question where' the money ..was coming from, he -declared that .the revenuo of! Australia was all available to meet such deinMtads';-' and Was Sufficient for: this and ail other: claims arising in tho' futuro. -Mem-' bers would be fully informed of'the means to. be adopted to. provide' ■ additional funds, for any purpose.

PREMIERS' CONFERENCE

STATES AND THE BRADDON CLAUSE. (Rcc. August 12, 10.20 p.m.) ■ Melbourne, August 12. Tho Conference of State Premiers, will meet at Melbourne to-morrow. The- chief subject of. discussion will be the financial relations of the"States and; the Commonwealth. DEFICIT AND OLD , AGE PENSIONS. The rnost, pressing cause ,of the Commonwealths needs id _its old age pension scheme.. Iho cost was originally-estimated at reoen t unofficial estimates place it at i!l,fl00,000 to ,£2,000,000. . - - ■ The MelboUrno correspondent of the "Sydney Horning Herald recently forecasted the issue of, Treasury.bills f0r.i1,000,000, redeemable at periods of from five to ton years. "The money so raised .-.would be devoted to-public works Vtt. »Pwa u «we ; 9nd there would bo lott in the hands of the 'Treasurer funds delved fronr revenue sources which ha could apply, jn part to payment of the pensions." n j? real solution. lies in an adjustment of the finnncal relations of the Federal and the Stat©: Governments, . which are now governed by the Braddontaause. ,The .States, foreseeing the shbrtage of, Federal funds in connection with old age; pensions, made an offer at the'last Premiers Conference, and are now holding, another conference in order to press it. ■ ' . That offer Was on the lines of the Federal Government returning . .to the States threefifths. instead of three-foUrths of Customs and Excise revenue (provided that the minimum returned annually. be «£G,750,000J, and on the States;repealing their old age pensions Acts;