BY R. M. JOHNSTON, I.S.O., F.S.S. 21 



railways alone — viz., 24s. 6d. per head in the year 1906- 

 7, that the total interest burden on all State Debts, 

 amounting to £240,149,727, has only been raised by the 

 insignificant sum of twopence per head of the popula- 

 tion. 



This means (apart from the immeasurable material 

 benefit of opening up the hitherto waste lands by the 

 cheap and rapid mode of transit) the surplus profit to 

 the State Treasuries from railway profits alone now 

 practically has wiped off the taxpayers' interest burden 

 on the whole of the existing unredeemed Public Debt of 

 £240,000,000. 



The question now to ask of all panic-struck pessi- 

 mists, or " foes of our own household," is, Would the 

 present population, with its relatively high standard of 

 living and its vastly increased wealth, have existed had 

 the " retrenchment and ruin " scare of the year 1870 

 succeeded in forcing upon the Colonies at that time the 

 retrograde cry of ' No borrowing " and " Retrench- 

 ment " ? 



Those who answer this question in the affirmative 

 are, indeed, dangerous advisers on financial and eco- 

 nomic matters affecting the State. 



