AUSTRALIAN FEDERAL DEBT. 



565 



Australian Indebtedness, 1860 to 1890. 



It will be observed that in the decade ended with 1880 

 the debt increased by 33 millions, or at the rate of 3 J millions 

 per annum, whilst during the last ten years it increased by 

 82^ millions, or at the rate of 8^ millions per annum. Of 

 late years, however, the amount has only slightly exceeded 7 

 milhons annually. This of course is exclusive of redemption 

 loans. It might be observed that the colonies could at 

 present borrow 4^ millions per annum without increasing the 

 amount per head. 



The debt has certainly increased at a far gfeater rate than 

 population, and much prominence has been given to this fact 

 in England ; but it must be remembered that it is only in 

 recent years that the colonies have launched out upon the 

 construction of public works on an extensive scale, which 

 certainly appears justifiable from the remunerative nature and 

 high economic value of such works, and the low terms on 

 which the colonies have been able to borrow. The com- 

 parison with population, moreover, whilst it serves some use- 

 ful purposes is apt to give an erroneous im]:»re?sion of the 

 financial aspect of the question. A debt of £40 or £50 per 

 head would certainly be alarming if there were nothing 

 tangible to show for it, as in the case of the British public 

 debt ; but when amply secured, as it evidently is, by un- 

 questionable securities, the realisation of which would go far 

 to liquidate the whole liabihty, all cause for alarm at once 

 vanishes, and full confidence is restored. 



In fact, it is in this respect that the Australian debts differ 

 essentially from those of other countries, — being raised as 

 capital for the construction of public works to aid in the 

 development of the material resources of these colonies. It 

 is true that the net revenue from such v/orks is in some cases 

 insufficient to defray the whole of the interest; but then this 

 is always the case with new undertakings, and moreover, 



