Mr MCWILLIAMS (Franklin) . - I hope the object of the Bill is exactly what the honorable member for Cook (Mr. Catts) hopes it is not. Local borrowing is an exceedingly good thing; but it can be carried too far. Had any one told us before the war that the Commonwealth could have borrowed the large amount it has in Australia, the statement would scarcely have been credited. But there is no honorable member or person in the community who does not know that the flotation of these loans is having a very serious effect on the national and industrial life of Australia. The value of money has advanced enormously, and I think we have very nearly drained dry the sources of borrowing in Australia, unless we propose to call up the moneys which are now .being used in commerce and mortgages and the ordinary business of Australia. Such a step would have a serious effect; and I regret, for this reason, that the moratorium was not extended for a longer period. When the mortgages fall due in February the Government will find it absolutely essential to extend the moratorium in order to prevent the whole or a large percentage of them being called up.

If this House were to compel the Government to confine their borrowing operations entirely to Australia, the mostserious disaster might occur to practically every industry, and especially to the great landed industry, which such a very large percentage of the mortgages affect. I hope that if the Government have to borrow further, as they most certainly will, they will have the fullest possible range so as to- secure the best conditions and the cheapest rates. To attempt to compel the Government to confine themselves to Australia, in view of what has already been done in the way of war loans, and with a drought overhanging us, would be fatal. . I welcome the Bill, and hope the Government will exercise it to its fullest extent.

Question resolved in the affirmative.

Bill read a second time.

In Committee: