The Nineteenth Century , No 182, Apr 1892 [‎61v] (127/244)

612 THE NINETEENTH April
' are not accomplisliing mucli towards the end for which they were
constructed.'
4. That taxation steadily increases; and ' although but 36 per
cent, of the revenue is raised by taxation in Australia against 84 per
cent, in England, taxation per head is higher in the former than im
the latter.'
5. That State socialism is rampant in the Australian colonies and
that their financial stability, therefore, is insecure.
These frve charges form the whole text of Mr. Fortescue's picture
of what he calls ' The Seamy Side of Australia.' To the careless or
unskilled they may appear formidable, but if they be examined
thoroughly it will be discovered either that the which
Mr. J ortescue draws from some of the data are superficial, and
altogether the reverse of the truth, or that the themselves are
misleading or inaccurately stated. The reasons which justify this
view of the case are best appreciated by examining each charge-
separately.
(1) The heaviness of the existing Fortescue-
makes much of the effect produced upon the mind by the phrase-
heavily in debt,' as applied to the nominal public debt of Australia.
If he means to affirm that it is heavy because it is absolutely large-
in amount, the statement is unsatisfactory; for if the 189,000,000L
of Austrahan indebtedness (general and local government), 95 per
cent. at least of which is represented by railways, tramways, and
other public works, which enormously enhance the value of the public-
and private estate, be deemed excessive, what shall we say of the
capital of the United Kingdom, amounting to 1,825,000,000^. in 1889,
sunk m its public debt (general and local) and in its railways, and
of the whole of which only 62 per cent., or thereabouts, can be said
to be represented by public works or undertakings, which, in a com
mercial sense, are either reproductive or calculated to enhance the
value of its public or private estate ? It is altogether misleading to
ignore the fact that the 121,000,000^. of capital invested in railways
m Australasia by the Governments is just as much, or as little, of the-
nature of a true public debt as the 890,000,000^. so invested bv
private companies in the United Kingdom.
But Mr. I ortescue no doubt would urge that the 189 000 000^
of Australasia and the 1,825,000,000^. of the United Kingdom are not
comparable taken absolutely; that, in fact, the greatness of a debt:
is relative to the power or wealth of the debtor to discharge the obli
gation connected therewith. Had Mr. Fortescue stated this matter
more explicitly in his first charge it would not have favoured his:
jeremiad; bnt setting this aside, let us endeavour to see whether, in
he relative method, he has any better support. This may be arrived
at approximately by showing what proportion the respective debts or
investments bear either to private wealth or to population. The