Febriakv, 1912. 



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The Federal 

 Determination. 



would be falling over each other to convenience 

 money savers, and the point at issue would be lost. 

 Mr. Watt was plucky enough to stand out as the 

 only one who voted agains^t any compromise. Mr. 

 McGowen's motion was carried. It read: — 



" (1) That the conference is unable to agree to the pro- 

 posal of the Kight Hon. tlie Prime Minister for tlie eatah- 

 iialinieiit of a. savings liaiik, ami suggests (2) tliat in con- 

 sideration of the Ci>nirn(»n\vealth Bank refraining from 

 entering into savings liank business the Stales agree to 

 jjrovide a loan to tlie Gonitnonweallh Rank, on terras to 

 be arranged, of a monithly amount etiual to 25 r>er cent, 

 of the increase in the excess of deposits over withdrawals 

 in the States Savings Banks; and 13) that such arrange- 

 ment comes into operation <)n June 1. 1913. and cotitinues 

 for a period of five years." 



Mr. Fisher had attended the Con- 

 ference and given an address on 

 the subject, but it did not impress 

 the Premiers. When the resolution 

 was sent to him, he politely declined it, and said 

 his offer was still open, and expressed the hope 

 that his offer would yet bt- accepted. Inter- 

 jireted in unmistakably plain language, this means 

 that if the States do not say " Amen " to the Fede- 

 ral Government proposals, they may do the other 

 thing, and the Federal Government will proceed to 

 business. That is so evident that it makes the dis- 

 cussion of the Premiers seem almost a farce. It 

 is quite understandable that Mr. Fisher has made 

 his proposals only because of the fuss that has been 

 raised, and will "be secretly delighted if the refusal 

 of the Premiers gives him the opportunity for open 

 war. For the proposals are so diverse in that under 

 Mr. Fisher's scheme the Federation would have 

 control of the officers and the institution, and would 

 simplv pay the share agreed ujion to the States. 

 Under Mr'. McGowen's scheme the jiosition would 

 be reversed, the States retaining their administra- 

 tion, and loaning to the Government twenty-five per 

 cent, of the profits. 



Apart from the Savings Banks 

 Industrial question, the most imiiortant mat- 

 Matters. {^.,. \vhich had to te considered was 



the proposal of Mr. Holman that 

 llu' States should voluntarily surrender some of the 

 needed power to the Comini>nwealth. It may Ix' as 

 Well to restate the issues of the Referendum. They 

 were -(i) Xationalisation of monopolies, (2) control 

 of domestic commerce, (3) control of domestic cor- 

 porations, (4) regul.ition of conditions of laliour and 

 empl<_)vment, (5) jirevention of industrial disputes, 

 •uid (6) control of monopolies without n.itionalisa- 

 liim. Mr. Holman's jiroposal was to grant the 

 Feder.il Government control of mono])olies — th.it is, 

 interstate monopolies. If a monoi)oly did not extend 

 beyond the State, he saw no reason to interfere, 

 preferring, to use his own words, "to let it stew 

 in its own juice." As to what constituted a mono- 

 jioly, lie would !ea\e the Federal Government to de- 

 fini'. In industrial matters he proposed that the 



