MR. DEAKIN APPROVES.

Dominion, Volume 6, Issue 1749, 14 May 1913, Page 8

MR. DEAKIN APPROVES.

IMPERIAL FINANCE SCHEME. ,\IU BBAVCIIAJIP'S SUGGESTION. Melbourne, Jfay 0. llr. .Dcnkin, tho ex-leader of the Federal' Opposition, giving evidence before tho Dominions Trado Commission to-day, supported the creation of a body such as thai: advocated by llr. Beauchanip, chairman of directors of the Bank of New Zealand. It would be admirable.

He regarded (ho proposal as one (o use tho nation;]! credit for national purposes. ]|: practically amounted to Jmpcrinl subsillies by credit, instead of by cask supjiort.. It was meant to apply to specific undertakings carefully defined, and would presumably in almost every instance, result in n great lightening of the burden of interest imposed upon the -Dominions affected. Mr. Beauehamp had stated ihat .(lie proposals in l'JO" were 'in.tins nature of a blank cheque. This was scarcely correct. .Any ch:qnes given would have had to bo drawn against those deposits which w;to in existence. The present object appeared to witness to be almost the first Imperial effort that had vet been made. It was limited at the ouN't to expsudiluro for defence, harbours, and cablo works, whieli were three of the most important channels to which Imperial effort could be directed. In due course it might bo possible to extend operations. An'lmperial hotly would afford a more permanent link for tho flotation of loans than any with which ho was at present acquainted. Tho hoard proposed would, of course, only adjudicate on tho question brought before it. It. sought no executive authority. It amounted to .1 backing of hills by the Imperial and Dominion Governments. Tho scheme was valuable because of its pliability and adaptability to almost all-instances and possible occurrences. The executive power resting with the Dominions affected was necessary, and the prospect of A savin? of from 20 to 2j per cent, in interest paid was likely to givo a very great, impetus to many propositions which would otherwifo be scanned with hesitancy. If Mr. Beauehamp required any support for his proposition, there was tho simple example of the Pacific cablo—an arrangement between Canada, Australia, and Nov.- Zea- ' He 'went on to express 'the hone that the Commission would boar a healthy offspring of live projects, not merely proportions' as at present submitted, but tho scheme of Mr. Beauehamp might develop and bear a large family. Mr. Foster (Canada): How would you propose to constitute, the quorum in tho body to ,bo created?—As has been remarked, a majority is required in certain and .unanimous unanimity in others. It occurred (o me that the requirements of, sav. Newfoundland, would not be as important, or considered as important, as til" reouirements of other parties. Mr. Sinclair (New Zealand): How is Parliament to protect itself from its representative authorising .bv vote tho borrow-' in? of money:—by pnssiii? a Jaw preventing tho representative from possessing such power. Jlr. Sinclair: Would not the voting power of the Mother Country be paramount, based, sny, on contributions to :Imperial defence?— That depends on tin; view the Mother Country would take. ' I should say we would not. insist on it. According to -the proportion, it must be paramount. Mr. Garnett: If any default were made by p. borrowing dominion, would the rest of them have to make it up?— Each Government would havo its share. The liability would be in proparlion Jo tho wealth and resources. Submission to Parliament would be required in some eases, but not in all. The representatives might bo authorised up to a certain amount.

Are not most Parliaments exlromely tenacioua in anything that afreets power of purso?—The'matter would be discussed by every Parliament, and each would decide whether it would abide by % tho decision of its representative, or insist on tho proposals being safeguarded by Parliament.

Tho chairman: A dominion would not be pledged against the will of its Government?—Tho representative of a dominion on which tho burden would bo considerable would certainly require to consult his Government. In exceptional cases Parliament might not be consulted.