The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1886-03-19
FRIDAY
March 10Th.
ABOUT PROGRESSIVE BORROWING AND
TAXATION.

Colonel Sargood, the new Minister of
Defense in the Victorian Government,
stated at public meeting in Melbourne
recently that the Victorian loan of e1,-
500 900 had realized in London &c, 900
$3.50 ,OOO) more than had been expected.
It will be remembered that we recently
directed special attention to the subject
OF Australian finance, pointing out the
rapid industrial development of the Aus
tralasian Commonwealth through the
judicious expenditure of borrowed money.
Special reference was made to this latest
Victorian loan, which is one of 4 per
cent, the minimum for tenders being
fixed at eIO2. The competition was
keen, a1O, 1926, 800 1854, 826, 1901 having
been offered at an average, as officially
stated, of 91O6 9s., the difference in favor
of the borrower being $3.50, 900 on the
loan of $500, 900, as stated by Colonel
Sargood to his Melbourne constituents.
The expense of floating the loan was
$33, $50, and the expense and interest
accruing from January 1st was less
than per cent.
This statement presents but very
faint idea of the financial significance of
this loan operation. The actual public
debt of the Colony OF Victoria, the small
est except Tasmania and Fiji in the Aus
tralasian Dominion, inclusive of this
loan, is e29, S31 1892 ($149, 159, $500; and
the population, according to the "Vic-
torian Year Book" will be round
the present rate of increase. This, how
ever, is very heavy debt even for one
million of people; but when one con-
siders how it has been invested it will
be seen that in reality it does not inter-
fere with the financial condition of the
people at all, but has been the means of
developing the resources of the country,
creating immense wealth, and adding to
the welfare and comfort of all classes OF
the population. A short summary will
illustrate these points.
At the close of 1884 Victoria had 1858
miles of railway completed and thirty
nine miles in course of construction, all
of which belonged to the Government.
These cost a21, 620, zoo, or within G8, 211, :
ESQ of the aggregate public debt
to-day. The Victorian railroads yield 4
per cent on cost of construction over
operating expenses. At the close OF 1884
there were nearly 5000 miles of wire in
use on the Government telegraphs. The
- ooos,,t, f,-,,,, fI, 4aIaorra nh SvSfaro far
more than pay interest on construction,
while securing cheap telegraphy for the
people. In 1884 the telegraphs returned
e87, 608 ($438, 040) to the Victorian reve-
nue.. A comprehensive system of rural
improvements has also been carried out,
and large amounts have been invested
in permanent public buildings, which
add materially to the importance, wealth
and appearance of Melbourne and in
terror cities. These latter, however, are
classed as unproductive expenditures,
although in truth this is far from being
the case, but Government buildings,
roads and bridges, colleges and univer-
sitYzg public libraries, schools OF art,
musam, botanical garden and observa-
tori ospitals, public school houses, etc,
4 return money direct into the
oSoe.ial Treasury, as railroads and tele-
ms do.
SNational defense has been another
heavy drain upon the resources Of Victo-
ria in common with other Australasian
colonies, and the end of this outlay APP
pears to be very long way off indeed,
Judging from the attitude of the Imperial
Government, as represented by Admiral
Trvon, commanding the Australian Sta
ton, who has been instructed to concert
defensive measures with the Colonial
Governments Although the Colonies
have bought war ships and torpedo
boats, built and equipped forts, and or
ganized land and naval forces, the Impe-
rial Government coolly asks them to
contribute half the cost OF large naval
contingent, to be stationed in Australian
and New Zealand waters, the proportion
which New Zealand is asked to pay be-
ing e7OO, 900 ($9,5OO,OOO). National de-