COMMONWEALTH FINANCE.

Taranaki Daily News, Volume LI, Issue 113, 4 May 1908, Page 2

COMMONWEALTH FINANCE.

THE LOANS QUESTION. Melbourne, May 2. Mr. Deakin and Sir W. Lyne aiieuued the Premiers' Conference. Mr Deakin outlined the Government proposals on financial cjuestious. Referring to the •'Braddou blot," he declared the financial federation was intended to be real, and although temporarily postponed perhaps by the operation of the Braddon clause, thc. federation of their finances should be carried as soon and as far as possible. This did not mean fusion; on the contrary, it would be recognised for some time as a very desirable thing that within certain limits there should be as far as possible complete separation of the State and the Commonwealth finances. He urged that the continuation of separate State debts and the continuation of new State debts would prove expensive, and suggested that one Australian stock should be substituted for all existing stocks and floated at a fixed rate of interest. He anticipated that the price the stock would be reduced to would be the minimum. The scheme would he found to contain complete proposals as to present indebtedness and future borrowing. Amongst other things it would relieve the .States from paying old age pensions. The full scheme would bo presented next Tuesday, when it would he submitted to the Federal Parliament. Unofficially it was stated that the scheme proposes to transfer all the State debts aid the States to retain railway and other public works free of debt. 11l future state borrowing would be maie through a special commission so as to interfere as little as possible with State initiative, the States to find interest on all new loans. The Premiers were disappointed at the want of deflnitene«» in Mr. Deakin's statements.