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are no three-quarters returned to the States there. Yet the people of the United States seem to manage very well. They do not seem to be impoverished or ruined, and in our own country of Canada the progress that it has achieved since it became a federated Dominion is almost marvellous; it is certainly very wonderful. We must also remember this, that the ordinary expenditure will only be charged against the colony. There will be a large permanent expenditure in this colony by the Federal Government on forts and barracks and post offices and telegraphs and such works of a permanent character. Those works will have to be paid for out of the amount charged against the Commonwealth as a whole, and this colony will only be charged in respect to them "per capita." The colony will have to pay for the outside expenditure on a capitation basis, and that under existing conditions will be a very good thing for us.
The Consolidation of the Loans,
Then there is another matter, and that is the consolidation of the Loans of the colony. I do not look forward to any great advantage immediately, because [ cannot see how it is going to operate advantageously for some time, as far as Western Australia is concerned, but it is a matter that we may look forward to. As soon as 20 years have elapsed from the time the various loans of the colony have been raised, we have the option of paying them off. When that time arrives, there is no doubt the consolidation of our loans may be made, and if money is then cheaper than when the Loans were raised, we will be able to take advantage of it. I think it was a very wise provision to make in all the loans that have been raised since 1891, that after 20 years they can be repaid at any time, on giving a year's notice to those who have loaned the money, but that the bond holders cannot demand the return of their money for 40 years, That is a one-sided arrange a which suits the colony very well.
Solvency of States protected.
You are, no doubt, aware that the solvency of the States is protected, but I do not want to say much about that, because I hope and trust there will never be a necessity to bring this provision into force. Western Australia as far as I can judge is not likely to want help from anyone, but neyertheless the provision should not be despised altogether, If any State does get into financial difficulties, the power of the Commonwealth, under the Bill, will be available in order to sustain the credit of that State,
Defence.
Then there is the provision that the colony shall be defended. Some people may think very little of this provision, but I look upon it as one of the most valuable clauses in the whole Bill. (Applause.) There is no humming and hawing about it. The Bill says, "The Commonwealth shall protect every State against invasion." That means that in times of danger and difficulty from without, every soldier and every man throughout Australia will stand shoulder to shoulder. (Cheers.) Some people think, in times of peace, that war will never come, but when we read of occurrences such as the terrible tragedy that we only heard of yesterday in China, surely it will make everyone think that to sit down in a state of fancied security is not a policy that ought to be adopted in the nineteenth century. That terrible tragedy ought to make us do all we can to place ourselves in the position that, if, un happily, difficulties should arise, we shall be united throughout Australia, and ready and able to defend our land from invasion, (Applause.)
Transcontinental Railway.
Tt must be remembered, therefore, that as under Federation there is the obligation upon the whole of Australia to defend Western Australia, this obligation necessitates that there must be a railway from Kalgoorlie to Port Augusta. (Cheers.) All the principal public men in Australia have stated that such a railway is indispensable, and many have pledged themselves to vote for it on the very first possible occasion. (Applause.) I am not prepared to say on what conditions that work is to be carried out, but that is not a matter to be
