572 PROCEEDINGS OF SECTION F. 



This completes the review of the present aspect and con- 

 dition of the Australian Public Debts, and now 1 must revert 

 to the immediate object of my paper. 



From a glance at the figures ah'eady given detailing the 

 purposes for which the Australian Public Debts were raised, 

 it will be noticed that only about £10,000,000 is what would 

 legitimately fall to the share of a Federal Government, i.e., 

 assuming that the defence works and customs were entrusted 

 to its care ; but the great bulk of the debt — 134 millions — 

 being contracted for provincial or local public works, must 

 still be looked upon as liabilities appertaining to the several 

 provinces. 



The following is a division of the Australian Public Debt 

 into Federal Debt and Provincial Debt on this principle : — 



Australian Public Debt. 



Contracted for Federal purposes — £ 



Defence Works 1,487,678 



Harbours, Rivers, &c 8,446,162 



Total 9,943,840 



For Pi'ovincial jjurposes 



Railways and other Public Works 133,718,253 



Grand Total £143,662,093 



Assuming, then, that this division be ap))roved of, and a 

 federation established, it is clear that the 10 millions might 

 without demur be at once taken over by the Federal Govern- 

 ment on conversion into a uniform Austrahan stock, bearing 

 at first about 3| per cent., but eventually 3 per cent, interest. 

 Such conversion could undoubtedly be effected on terms most 

 favourable to the colonies, in view of the larger security 

 offered, and the uniformity and stabihty, and hence increased 

 marketability, of an Australian federal stock. The Federal 

 Government, moreover, would probably be in a position 

 within certain limits to demand its own terms for conversion. 



As regards the 134 millions borrowed for local purposes, I 

 would propose that such portions of that amount as were 

 borrowed for strictly reproductive works, and as the Federal 

 Government may consider amply secured, might also be taken 

 over on the security of such works, and on such other terms 

 and conditions as it might deem necessary or expedient in 

 order to insure the regular payment of interest and expenses 

 by the various colonies interested. Such loans might also 



