THE COMMONWEALTH.

Taranaki Daily News, Volume XLVII, Issue 8137, 18 June 1906, Page 2

THE COMMONWEALTH.

AMALGAMATION OF STATES' DEBTS.

Sydney, June 10,

A lengthy communication trom Mr Coglilan (the State Agent-General in London) on the amalgamation of the States' debts has beon received by the Premier. Mr Coghlan states that it uiust be confessed that the difference in the attitude of the British investor towards Australia ean be accounted for only on the supposition of mistrust arising from consideration, not of the resources of the States, but of their politics. The secret of this lu liorous assertion is that there is a considerable section of the Australian people who favor legislative proposals tending to dimish the security of private property. It is futile to ignore the existence of a oertam amount of prejudice against Australian investment. He forms the opinion that the Commonwealth would not at first be able to obtain money on better terms than ithe States, but in course of time the Commonwealth will stand in a superior position. At present it is impossible for the Commonwealth to consolidate, and convert State debts on a three per cent, basis, but they may look forward to the time when, the States and the Commonwealth working harmoniously together, the unmistakeable distrust now existing in London will be removed. Commonwealth stocks should bo three per cent, and the entire London debts should be taken over by the Commonwealth, which should monopolise the London market. There does not appear to be any urgency suoh as to warrant the Commonwealth entering the London market as a seller of three per cent, stock at ninety, which is the b best to be expected at the present time. . It would therefore be wise that any ; arrangements entered into should take effect at a date to be decided upon by j the Federal Government when the movements of the market aro in its