'My own personal opinion is that, whatever private quarrels and jeu-cusies and political differences there' may be among the people at the top, and whatever changes there may be In. persons, the system, though no. doubt in a' modified form, has come to stay. Tt seems unlikely thit the masses who have been taught to beeve, quite mistakenly no doubt, that they are the masters, will be willing fo'revert to the old system in any way. Tam aware that this view is of shared by many who are much Better qualified to express an opinion, Finally 1 must repeat that Russia is a vast country, It seems to me that "certain countries," to uso the Ciplomatle phrase, are making a big. mistake, if they "imagine that she. could be tackled with impunity, no matter how inefficient her gevern-Jment may or may not be. 'They are Mikely to meet with the same dis-'iMusion, only on a much greater' scale, as have the Japanese in their ancial dictatorship, and secretly congratulate themselves on having. eblained the right {o borrow, more than they had dared to expect.
The recent meeting of the Council in Melbourne was exceptional that the discussions were at times more acrimonious than usual, and Because the smaller: States protested at the polley of semi-governmental borrowing adopted by New South Wales and Victoria, These States have both created a number of boards to conduct State fenlerprises of various kinds. Borrowing by. such boards Is not subject ation by the Loan Council, and Is an effective means of obtaining funds to. finance public works in excess of expenditure of approved several Premiers of the smaller States left the meeting of the Loan declaring that they had yined the ideal way to finance public works"".and stating that they Would establish boards to indulge in semi-governmental borrowing them selves, If this policy is generally adopted the usefulness of the Loan Council will be seriously impalre fand unrestricted borrowing will again become a serious problem, Eventually such semi-governmental borrowing is bound to be brought under control of the Loan Council, Until then the smaller States can hardly be restrained from following the example of Victorian and New South Wales, however unfortui the consequences may be.
Text read from the printed page and cleaned; old type leaves the occasional error.