STATE DEBTS.

Gisborne Times, Volume XXII, Issue 1786, 18 June 1906, Page 3

STATE DEBTS.

EMINENT FINANCIER'S REPORT

Bj telegraph, Pres* Aea’n, Copyright Sydnoy, Juno 16. A lengthy oommunioation from Mr Coghlan on amalgamation of State debts has been received by the Premier. Mr Ooghlan states that it must bo confessed that the diilsronoo in tho attitude of the British investor towards Australia can bo acoouotod for only ou the supposition of mistrust, arising from tho consideration not of tbo resources of tho Statos, but of their polity. Tho seorot of this ludiorous assertion is that there is a considorablo section of Australian people who favor legislative proposals tending to tho diminishing of tho security of private pro perty. It is futilo to ignore tho existence of a cortain amount of prejudice against Australian investment. Ho forms the opinion that the Commonwealth would not at first be able to obtain money on better terms than States. In the oouree of time tho Commonwealth will stand in a superior position, but at present it is im--1 possible for tbo Commonwealth to consolidate and oonvert State debts on a 3 per cent, basis, but it may look forward to the time when the Stales of tbo Commonwealth are working harmoniously together, and the unmistakeable distrust now existing in London will be removed. Commonwealth stcck should be 3 per cent., and the entire London debts should be taken over by tho Commonwealth, which I should monopolise the London market. Tnere does not appear to be any nrgonoy | such as to warrant the Commonwealth entering tho London market as a seller of 3 per cent, stock at ninety, wbioh is tho best to be expeoted at the present lime. It would therefore be wise that any arrangement entered into should take effeot si a date to bs decided upon by the j Federal Government when the movements of the market are in its favor.