THE AUSTRALIAN STATES

Dominion, Volume 10, Issue 2963, 29 December 1916, Page 7

THE AUSTRALIAN STATES

FINANCIAL PROBLEMS. According 'to the Melbourne "Argus," as an outcomo of the recent conference of State Premiers five of tho six States are content to allow tho Commonwealth to raise loan moneys tlicy require for public works, and the conference was convened so that the States could, bo acquainted with tho sums they wero likely to receive next .year. Now South Wales, which stands outside the agreoment, nevertheless sent representatives to find out if tho new otter was sufficient to induce it to join. Ono glance at tho offer was enough for the representatives of New South Wales, and as a result that State intonds making its own application to tho London money market. The Ministry, however, is not confident that it will succeed, but the position is apparently so desperate tiiat it has to make the attempt. The Premiers of the other States were seriously disturbed by tho Commonwealth offer, although noiie of them would admit anything. Having been told what they could expect, they set to work to cut their cloht to suit the reduced measure. Whilo this work was proceeding, however, an interesting expression of opinion came from Tasmania. Tlio Premier of that State (Mr. Lee) informed iho Legislative Assembly on Wednesday jiight that lie had received a confidential communication from tho Treasure of his Ministry, who was in Melbourne—Sir Elliott Lewis— intimating that tho financial position was critical, and , that public works proposals would have to be considerably reduced. Tho financial position that has becomo critical in Now South Wales and Tasmania is no loss critical in tho other States,, Victoria included. The Premiers liavo been given confidential ini'oimation that is disturbing, if not alarmng. Tine necessity of vigorously conducting tho war means that thero is very little money available lor ordinary purposes. Tho however, prefer to keep the information sccret for the present. Everything points to the fact that if it wero disclosed the case lor immediate and rigorous economy would become unanswerable, and Ministries that did not at once institute savings and oliminatc extravagance and waste would encounter a. cyclone of public disapproval.