lO STATE BORROWING. 



STATE BORROWING, AND SINKING FUNDS 

 FOR THE REDEMPTION OF STATE DEBTS, 

 REGARDED FROM AN ECONOMICAL 

 POINT OF VIEW. 



By R. M. Johnston, I.S.O., F.S.S 

 (Read June i6th, 1908.) 



PART I.— STATE BORROWING. 



The success of young colonies, such as those of Aus- 

 traha, has, in a large measure been due to the sacrifices 

 which the earlier pioneers made, from time to time, in 

 making timely provision for the opening up of Aus- 

 tralia's vast virgin lands, by means of roads, railways, 

 bridges, jetties, harbours, etc., in advance of actual 

 occupation or settlement. 



To any thoughtful person it is obvious, at the initial 

 stage of a colony's history, it would be impossible to 

 construct such costly undertakings without the aid of 

 foreign capital. 



Since the year 1842 the six states of Australia have 

 practically entered into partnership with foreign capi- 

 talists in this important work of providing railways, 

 roads, bridges, harbours, in advance of further settle- 

 ment, and in no other way would it be possible to have 

 succeeded in making the outlay of £240,149,727, in a 

 period of 64 years, or at the rate of £5,024,000 per 

 annum. 



The following is a brief statement showing how this 

 large amount of borrowed capital was invested : — 



HOW BORROWED CAPITAL WAS INVESTED BY THE 

 STATES. 



