FEDERATION OF THE PUBLIC DEBTS OF THE BRITISH EMPIRE.

Gisborne Times, Volume V, Issue 61, 13 March 1901, Page 1

FEDERATION OF THE PUBLIC DEBTS OF THE BRITISH EMPIRE.

[By C. P. W. Longdill.] I once heard a cynical Socialist, now a member of the New Zealand Parliament, toll an audience in Auckland that it was customary to talk about the Queen’s navy, the Queen’s army, and the Queen’s dominions, but when we had occasion to talk of the public indebtedness of England that was spoken of in quite another way, and we we were expected to say the Nation’s indebtedness. The debts were not pleasant to contemplate j therefore, they were the property of the nation. There is somewhat the same spirit evinced when we talk about the unity of the English-speaking race, or the federation of the British Empire. We feel a thrill of enthusiasm at the idea of federating for the purpose of conquering other nations, or to extend our dominions, and to add generally to our power and influence in the government and subjection of the world. But hitherto I have never heard of anyone advocating the federation ef the debts of the British Empire, or, to extend the idea still further, the federation of the debts of the English-speaking people. In England, no doubt, where most ideas of the English-speaking people seem to come from, the feeling would be—if such a preposterous idea has ever entered one’s mind there —that the “other fellows” should, bear the burden of taxation upon money they have borrowed. Yet it seems to me that this is a practical economic problem, well worthy of the consideration of all colonial statesmen; for, without going into details regarding actual figures, it is well known that the publio indebtedness of tho colonies is far greater pelhead of population than the public indebtedness of England, so that if the debts of the British Empire were federated so that each unit bore its fair share of the taxation necessary to pay interest upon those debts, this would very much’ lighter, taction in tile colonies. It may be maintained by many, however, that since tho colonies have borrowed the money, and consequently derived a benefit therefrom, it is only fan- that they should pay the interest and repay the principal upon whatever sums they may borrow. But 1 differ from this opinion on the ground that when, for example, New Zealand obtains a loan from England, England derives as great or even greater benefit, apart from the consideration qf interest, from the expenditure of that loan, both immediately and ultimately, directly and indirectly, than do the borrowers themselves. For while no doubt the money borrowed is a great assistance to the people in the country in which it is expended, nevertheless it must be remembered that England in advancing that loan does not send out the actual gold, and if she did nothing whatever would be thereby gained to the colonies, for in that caso vye would simply be paying interest upon a commodity which' yielded us no income, inasmuch as gold does not grow or otherwise increase in quantity or value. Instead, therefore, of England, sending us money when we borrow, she could send us something more necessary which we cannot or don’t produce ourselves, viz., railway iron and rolling stock, clothing, tools, wire, etc., out of all of which she makes a considerable profit, and with this capital we are able to produce increased quantities of wealth, which we send chiefly to England for sale or exchange for other goods, and in exchange for the goods borrowed, when we are in a position to repay the loan. Now, out of all these transactions, apart altogether from interest charged upon the goods borrowed, England is making very handsome profits, so large indeed that she is able to feed and support millions in comfort, while we in the colonies are only able to support a few millions —in New Zealand alone less than a million. Thus England is enabled to make a continuous profit out of the money she originally advanced us. Why, therefore, should she not bear her fair share of original debt ? It is evident that she should do so, and thus greatly lightei&ie taxation generally in the colonies, andSpo this by federating the debts of the Bigfcish Empire, so that each unit bore its fair share of the burden. Were it not for th£[ money the colonies have borrowed from England "and paid interest upon for so many years, they would not nave been able to assist her as they have done in the present 1 South African war. •- ,;