AUSTRIA'S WAR LOAD.

Taranaki Daily News, 24 January 1919, Page 5

AUSTRIA'S WAR LOAD.

RAP.U) increase in expenditure* EMPIRE WAR DEBT SCHEME. Kcctivad Jan, 23, 11.15 Melbourne, Jan. 23 At a conference of Federal and Stau, Ministers Mr Watt dealt with the financial position. He said the outlook of the Commonwealth was most serious. Ha foreshadoweu reduced rvneaue from taxation, while the expenses of the Al:etralian army had kept v,p and repatrintion would cost scores of millions. In view of these factors the Commonwealth proposed to diminish the present payment of 2os psr head of surplus revenue to the States jirogressively by 2s Cd yeaa-ly till it was lou per head in 1928. He added that eooner or later the States would have to do without any Commonwealth help. The reduction would not start till the financial year 1820-21. ' Dealing with the imease of the Commonwealth expenditure, he said th«re had been an increase of over two million yearly in old-age pensions. In the early stages of the scheme many pensions hail been refused. Now 09 per cent, of those entitled accepted them. He indicated that the maternity bonu« in future would be confined to those really needing it. On the question of co-ordinating borrowing, Mr. Watt outlines a scheme for the creation of an Empire war debt aomfflission to take over the war debt* of the United Kingdom and other parts of the Empire, each government having representatives on the commission, all debts at December 31 next to be taken over and all sinking funds and resumption funds, then existing to be vested in a funds commission. He stated that tjie Federal Government was making the necessary representations to the various governments interested recommending! the adoption of the proposal. He indicated the possibility of including tha various State debts as part of tbn scheme.