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Wednesday, 22 October 1919

Mr J H CATTS (Cook) .I am very sorry to see this Bill before the House, because it is an indication that the Government propose to recommence borrowing abroad. This means more exports of labour products -from this country. We already, as a Commonwealth, owe £87,000,000 to the British Government in connexion with the wax. Mr. McBeath put the figures at £120,000,000, but the Treasurer says it is £87,000,000. Apparently the Government, having authority to raise £80,000,000, and having obtained half of it, now propose to go abroad for the balance.

Sir Joseph Cook - Do you not see that we are in a better position to negotiate if we can go elsewhere ?

Mr J H CATTS - I do not see any occasion to go elsewhere. The great bulk of the expenditure for which these loans are being raised takes place in Australia, and it is only a matter of arranging a medium of currency to enable us to exchange our' own products within our own borders.

Sir Joseph Cook - I merely suggest that if there are two or three people from whom one can borrow we can surely do better than otherwise

Mr J H CATTS - That is not the object. The object is to have a number of pawnshops set up throughout Great Britain and America in order that the Australian lender may be told that the Government can go elsewhere for money.

Clause 5 provides that the GovernorGeneral may establish registries at any place outside the Commonwealth and appoint registrars or deputy registrars as he thinks necessary.

What is that but the creation of a number of pawnshops in America or England, just as one might create a- number of butchers' shops ? Instead of having a man to ladle out meat or sugar, we shall have a man to ladle out scraps of 'paper on the security of the Commonwealth; that is what it means.

So far as America is concerned, there seems ' to be concurrent provision in Estimates for general oversight to the amount of close on £17,000. This means a Commissioner in America, with all the paraphernalia of such an office; and, apparently, part of his duty will be to superintend the registries. -

I did think, when the Commonwealth commenced to raise necessary moneys in connexion with the war within Australia, that we were not going in the future to borrow from outside. It would be better if we could make some arrangement for the gradual liquidation of our outside debt, so that all transactions should take place amongst ourselves. I venture to say that if the question were seriously tackled, we could gradually rid ourselves of the necessity of having to export an enormous amount of labour products to other parts of the world merely for accommodation.

I regret that we are- breaking away from the policy of issuing credits in Australia, and, apparently, going to add to the enormous oversea debt of the States by Commonwealth commitments, that ought, in my opinion, to be arranged here.

Apparently this is not for the importation of goods, but in order to provide for war commitments, inside Australia. It is only a matter of arranging the currency of some medium of exchange amongst ourselves to be able to do without foreign loans.

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