charge rose by a little over 50 per cent. (from £20,807,026 to 
£31,373,271). The inference, which is confirmed by such obser- 
vations as we have been able to make, is that this position results 
from heavy expenditure of loan capital by the States on develop- 
mental undertakings which have not proved to be self-supporting 
and have imposed a heavy burden on the general community and 
consequently on the cost of living and production. 
16. It is at present a matter of great difficulty to ascertain the 
exact financial position of each object or undertaking on which 
loan moneys have been expended in Australia, though we are very 
glad to note that the Commonwealth Budget papers are now being 
prepared in a form which goes far to remove the difficulty so far 
as the Commonwealth is concerned. The same is now true in 
conspicuous degree of New South Wales, and of South Australia 
as regards its States Railways, concerning which an admirably 
clear statement by the Railway Commissioner shows, for the year 
ended 30th June, 1928, a deficit on revenue account of just under 
£1,000,000 and an accumulated deficit of just over £8,000,000. We 
would respectfully suggest that the other States would do well 
to follow these examples, so that the public may be better able 
to understand clearly how its funds are being spent and with what 
result in each direction. 
17. Certain other examples of heavy loan expenditure seem to 
us to be worth citing. 
18. Capital expenditure on the Murrumbidgee Irrigation Scheme 
in New South Wales to the amount of over £9,000,000 had been 
incurred to the 30th June, 1927; on group settlement in Western 
Australia to the amount of nearly £5,600,000 to the 30th June, 
1928; and on the Murray River Scheme, including the Hume 
Reservoir, to the amount of over £6,000,000 to 30th June, 1928, 
while it is estimated that a further £4,000,000 will be required to 
complete the Hume Reservoir. These figures of capital expendi- 
ture are exclusive in all cases of the amounts advanced to persons 
served by the schemes referred to. 
On Closer Settlement in all States over £12,200,000 had been 
advanced as at the 30th June, 1927, of which nearly £8.600,000 
was then outstanding. 
On Soldier Settlement, of which, however, it is fair to remember 
that a main motive was the discharge of a debt of honour to the 
returned soldiers, over #£45,500,000 had been advanced, of which 
Just over £36,000,000 was then outstanding. 
19. We are not in a position to estimate the extent to which 
these advances and these capital expenditures, with the interest 
thereon, may be ultimately recoverable. But when, for instance, 
We are told that out of a total expenditure, including advances to 
Settlers, of nearly £8,000.000 on group settlement in Western 
Form of 
public 
accounts. 
Examples of 
heavy loan 
axpenditure.