20 STATE BORROWING. 



(1) The Gross Receipts were 



(2) The Working Expenses were 



(3) The Net Profit on Working was 

 Less Interest on Loans Capital 



Net gain to State Revenue for the year 



If we now take into consideration the saving in time 

 and cost of transit as a hidden value to the States, which 

 was shown to be not less than £2 for every £1 gross re- 

 ceiptSj we arrive at the conclusion that, apart from all 

 other indirect advantages specified elsewhere, its value 

 represents in the year 1906-7 a sum of £28,910,902, 

 equivalent to a present capital value of as much as 

 £826,000,000. 



The whole of the States' indebtedness of £240,149,000 

 seems a small affair alongside of this bona fide, though 

 hidden, State benefit. 



A study of these significant figures should give 

 pause to all superficial or interested critics who may 

 venture to discuss the wisdom or otherwise of the policy 

 of the Australian States, which, notwithstanding errors 

 in the practical work of carrying out the functional 

 policy of the State, has resulted in giving room and a 

 productive field of work to a population of 2.55 fold 

 the number of 1870 ; and, after deducting the share of 

 our co-partners — our creditors if you like (that is, the 

 nominal debt of £240,148,727), we have a balance of the 

 people's income in our favour, whose present capital 

 value exceeds that of 1870 (when there was only a debt 

 of £28,328,000) by a sum of £3,473,000,000, besides a 

 valuable asset in our 14,067 miles of railway, whose 

 •effect in saving of cost of transit alone is estimated in 

 the year 1906-7 to be equivalent to a present capital 

 value of £826,000,000 sterling. , 



And further, let it be noted that, notwithstanding 

 the Interest Burden on Australian State Debts has in- 

 creased since 1870 by 24s. 8d. per head, such has been 

 the increase in the direct working profits of the State 



*Note. — This item alone represents a present capital value 

 of £25.179,371, or as much as 17.89 per cent, of the total 

 value of Capital invested in construction. 



