FEDERATION.

Waikato Argus, Volume I, Issue 60, 24 November 1896, Page 2

FEDERATION.

•Sydney, November 21. The Federal Convention has closed. The following scheme of finance was adopted : —That Customs and excise duties and post office receipts should form pirt of the federal revenue ; that the cost of the Federal Government, defence?, ocean buoys, lighthouses, and quarantines be charged to each State on a population basis ; in the place of the clause in the Bill dealing with the apportionment of surplus revenue two new c'auses have been recommended, to the effect that pending the establishment of a Federal tariff, the expenditure of which each .State lias been relieved, and which has been paid by the Commonwealth, should be charged against the State ; after the revenue derived from other services than those of purely federal chaructet has been taken over, ami after the expenditure incurred thereon in each State lias been ascertained, the surplus shall be returned to each State ; that if the whole debts of the colonics be taken ovc unconditionally, railways should be vested in the Federal Parliament. Tltc majority favour the taking over of the whole liabilities of the State, against which each State would lie charged interest, and also that the Federal Government should take over the whole of the railways, and that each State should be charged with any deficiency, or credited with any profits that might accrue. Mr lieid visits Queensland next week to try to induce the Government to have the colony represented at the forthcoming Convention.