904 THE FEDERATIONS AND THE UNION [PART IV
goods coming in from without, thus obviating those differen-
tial rates of which Queensland complained so bitterly in
the Railway Border Tax Act, 1893.
No steps have ever been taken to set this commission on
foot. It was, however, proposed by Mr. Deakin in his policy
of conciliation with the states, which dominated the session
of 1909 in preparation for the general election in 1910, that
the Commission should be used to assist in a settlement of
the very vexed question of the industrial regulation by the
Commonwealth. It was proposed that the Commission
should have power to interfere when, by the determination
of the authorities on such subjects in one state, in another
state matters should be unfairly affected—for example, if in
New South Wales the wages in one trade were fixed at nine
shillings a day, and if the same trade in Victoria paid only
sight shillings a day, the Commission would have had power
to increasethe rate in Victoria to such a figure as corresponded
in the circumstances with the New South Wales figure ; but
vhis proposal never became law, and the general election of
1910 brought in a party determined to arrange matters by a
more energetic propaganda.l
S. 105 allowed the Commonwealth to take over the debts
of the states as existing at the establishment of the Common-
wealth, or a proportionate part according to population, and
to convert, renew, or consolidate such debts or part thereof,
and the states were to indemnify the Commonwealth for
the interest payable in respect of the debts, the sums due
being deducted from the amounts payable as surplus
revenue, or if there were no surplus revenue, or if it were
insufficient, the whole amount to be made good by the state.
This clause has figured in all the discussions for the alteration
of the Braddon clause, and in 1909 it was amended to apply
to all the debts of the states, and not merely those existing
at federation. This amendment of the Constitution was
carried everywhere, except in New South Wales, and the
* Harrison Moore, op. eit., p. 576, note 1; Commonwealth Parl. Pap.,
1909, No. 60. The defeat of the referenda has seen the proposal revived
and favourably viewed by New South Wales and Victoria.