FEDERAL PROBLEMS.

Dominion, Volume 3, Issue 781, 2 April 1910, Page 5

FEDERAL PROBLEMS.

BRADDON CLAUSE AND STATE DEBTS. Bγ Telegrash-Presa Assoclatlon-CoDTrlrtt. Sydney, April 1. The Chamber of Commerce discussed the financial agreement between the States and the Commonwealth and the transference of State debts. With regard to the former question, they voted > "yes," and on the question of transference J 'no,"

, STATE DEBT; TRANSFER.

Commenting on the ■ approaching refer- ■■•■':* endtim of the Australian electors on the ;; : proposed State debts transfer, a Sydney ■ paper says:—"They-(the electors) are to : "''' : be naked by referendum :to give their , -■ sanction to an alteration in the Consii- .'■'.■'■ tution that, will : enable.;the Commom-V wealth to take over, not only that por- - ' hon of the State debts exieting at tie : '■'■■ date, of the consummation of the union, ' or a proportion thereof, as provided \in- ; '■ der the Constitution, but tho whole of ■ the debts as they exist, to-day.- So far '':<■ no objection can legitimately.be raided. > Everyone who knows anything of. the noulties before competing Treasurers ia : ' ; ■the-world's great money market, or , whe ; ' : realises, how easily tho States' financea ■■ might be embairassed through, a sudden " tightness of money just at a time wka v '. money must be had. at any cost for; re- ; : - demrption. purposes, or to liquidate other oommitments, wall agree that one bor-• ■ rowor could make better arrangements than seven, who haro not only conflicting interests, but competing claims. Whether " : the Fed«ral Treasurer could do better ae' a borrower than tho State Treasurers is not so much α-questioa, although this has lxsen emphasised in Federal quarters Suffice it to say that it is not bbely thet ■'-■■' ko could do worse, bTingin?, as'he would ' to the security riot only tho joint aao! several credit of tho individual States, ■ ; but also the credit of the Commonwealth, with its wido powers of. taxation." , ■-. ■■..'-.- \;;