AUSTRALIAN FEDERAL DEBT. 571 



The long- currency of many large loans in some of the 

 colonies as shown in the table is very striking. Thus in 

 Victoria, whilst one-half is repayable within 19 years, one- 

 third will remain outstanding until between the 30tli and 34th 

 years ; in New South Wales, whilst one-half is to be redeemed 

 within 29 yeai's, one-third is not due until between 29 and 34 

 years, and one-sixth not until after 39 years ; in Queensland 

 nearly the whole is repayable from 25 to 35 years hence ; in 

 Western Australia the bulk is not due until after the 39th 

 year ; and in Tasmania more than one-third is redeemable 

 between the 20th and 24th years, and the final third not until 

 between 45 and 49 years. Taking the colonies as a whole, 

 about lOi per cent, of the existing debt is repayable before 

 1900; 28 per cent, between 1900 and 1915; 19 per cent, 

 between 1915 and 1920; and 31 per cent, between 1920 and 

 1924; the balance being repayable either after that date, by 

 annual drawings, or at some indefinite period. 



The great loss which results to the colonies from such 

 distant periods of repayment, combined with the great 

 unexpected fall in the rate of interest at which they can 

 borrow, may be exemplified by a few examples. Thus New 

 South Wales has to pay interest on £16,500,000 raised in the 

 years 1884-6 at the equivalent rate of £3 175. 8d. (real 

 interest) for 33 years more, and on about seven millions raised 

 in 1883, at the rate of 4 per cent, for 42 years more, whereas 

 the money could a few years afterwards be obtained for about 

 £3 Ss. 6d. per cent., and will probably be obtainable in the 

 near future at little nioi-e than 3 per cent. In like manner 

 Queensland has to pay over 4 per cent, on nearly eight 

 millions raised in the years 1884-7 for 33 years, whereas in 

 1888-90 that colony had to pay only about 3| per cent. 



Such facts as these should impress on the various colonies 

 the urgent necessity of shortening considerably the currency 

 of their loans; or, better still, of issuing permanent loans 

 repayable at option of the colonies after a fixed date, either 

 with a uniform rate of interest, or — as in the case of the New 

 British Consols (Goshen's) — with a gradually reduced rate of 

 interest after certain fixed intervals of, say, 15 years, down to 

 3 per cent. This method, moreover, will save the necessity, 

 inconvenience, and expense of floating redemption loans. I 

 am aware that these suggestions are not new, but they are of 

 very great importance, and cannot be too prominently 

 brought under the notice of the various Australian Govern- 

 ments. 



