These suggestions which are so particularly applicable to the loans raised by the colonies of the Australasian group, have all been more or less commented upon in the various articles and criticisms that have appeared in the Australian press, and on the whole the suggestions have been very well received, though some of them, especially the last, have given rise to considerable argument in the endeavour to show from the colonial point of view that the opinion and doubts expressed on this side were not justified by present facts and future prospects. The best comment on the first suggestion is the resolution expressed by the Premier of Victoria in his recent budget speech, delivered on the 30th July last, to the effect that the colony of Victoria would in future come on the London Market for loans solely for the purpose of constructing railways and public works that are remunerative, and that all other expenditure on buildings and works which, although of necessity and utility to the colony, did not produce actual returns, should be defrayed out of current revenue. It is needless to say that, if the other colonies follow the example thus set them by Victoria, Colonial Loans will stand on a still firmer basis than they have hitherto done.

The second suggestion as to population was very ably commented upon by Mr. H. C. Burdett in his speech reported in the March Journal, p. 146, in which he pointed out the desirability, if not absolute necessity, of the increase in population in most of the colonies by the judicious assistance of immigration on the part of the Colonial Governments, or otherwise, so that the vast tracts of territory opened up by railways might be tilled and made profitable, and on this point a forcible article appeared in the Melbourne Argus of the 29th April.

The suggestions as to the issue of loans and as to the desirability of making the period of maturity elastic, have been favourably received and commented on in various quarters.

It must be gratifying to this Institute that a paper by one of its members should have elicited so much attention from the Colonial Press, but a more gratifying incident, as showing the interest taken in the matter by the banking and financial authorities of Australia, is the fact that the subject was taken up by the Bankers' Institute of Australasia, and that at a meeting of their members on the 29th May last, a paper was read by the Hon. Thomas Loader, a gentleman who has been on more than one occasion a member of the Government of Victoria, and who is Chairman of one of the Melbourne Banks, on "Colonial Indebtedness," which he prefaced with these words, viz.: "A "very interesting paper was read by H. F. Billinghurst, Esq., before "the Institute of Bankers in London, upon the subject of Colonial "Indebtedness, and on the part of Australasia, it may be "complimentary to Mr. Billinghurst, and to the London Institute of "Bankers, for a member of this Institute to acknowledge the friendly "tone of the paper, and of the remarks which were made by the

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"subsequent speakers, also to put forward from an Australian view, some facts and opinions which may be considered in connection with "those expressed upon the occasion referred to."

Mr. Loader-having shortly set forth the contents of Mr. Billinghurst's paper, concluding his summary with the remark that it "is a valuable contribution which places us under an obligation to the "author for the way in which the facts relating to Australia are "stated,"-proceeded to dilate upon the position, resources, and prospects of the Australasian Colonies, showing their marvellous progress, especially during the past fifty years-a progress so wonderful that "the question naturally arises, What will be the position of Australia in ten or twenty years' time?"

The review of the resources and prospects of Australasia led up to the consideration of the point suggested by Mr. Billinghurst, as to the remittance of interest to this country when borrowing ceases, and further as to the ultimate repayment of the public debt. Mr. Loader first questioned the accuracy of Mr. Billinghurst's statement that the annual imports into Australia exceeded the exports by £11,000,000. This statement, it may be remarked, was made on the faith of one of the most reliable books published in this country on financial affairs, and the year 1887-8 (the figures of which were particularly quoted) was simply the last year of which the results had been recorded previously to the production of the paper, without any idea of selection of a favourable or unfavourable period. On the very high authority of Mr. Hayter, the Government Statist of Victoria, who was himself present, Mr. Loader stated that the recorded excess of imports over exports in the year mentioned did not exceed £7,000,000, rising in the next year to a little over £8,000,000. This statement may be quite readily admitted, as also the usual arguments that the records of the value of exports and imports never give an accurate idea of the real position of affairs-but the fact still remains that the colonies will have to provide for the transmission of large annual sums for payment of interest on their loans beyond their present exports, and how this is to be done is certainly not made clear by Mr. Loader's remarks. He admits that the problem would be a difficult one, if the present population of the colonies never increased, and then arguing from the wonderful increase of population in Australasia during the last fifty years-say from 200,000 in 1840 to nearly 4,000,000 at the present time-and from the great prosperity that has accompanied this increase, he surmised that in another twenty years the population will be doubled, and the prosperity so great that there will be ample means of meeting all requirements. He further referred to the United States as a case in point, and instanced the fact of their having paid off £500,000,000 of debt in twenty-four years, besides accumulating since £80,000,000 in the Treasury-but this is scarcely a case in point as the £500,000,000 was not raised in England, and if the United States is brought into the matter, it should be to

follow their example of raising the funds they required in their own community.

Of the other suggestions embodied in Mr. Billinghurst's paper, Mr. Loader is of opinion that Australasia has attained a position when only spontaneous voluntary immigration will be received. He is thus quite at variance with the view put forth by Mr. Burdett, and which is, to a great extent, held on this side, that the colonies, in their own interests, should do a great deal more by assistance or otherwise to attract immigrants instead of waiting for the natural increase of their population. He is of opinion that the remarks about certain colonies having anticipated their future is at variance with the spirit of the age-that the colonies in question, had they not expended large sums on railways, etc., not at present remunerative, would have been still in a state of nature, and out of harmony with the world that prosperity will come and that in the end they will be all right. We cannot help thinking, however, that the strongest tree is of slow growth.

With regard to the desirability of raising more loans locally, Mr. Loader of course argues that so long as the colonies can obtain their money at low rates from this side it would be foolish to raise loans locally and to come into competition with the high rates obtainable in the colonies.

The conclusion of the whole matter arrived at by Mr. Loader is that "Australasia is an opulent, and not a needy borrower, possessing "a territory which in fifty years has been converted from primeval "forest into a modern nation with appliances for millions of people, "and a national debt has been created, the whole amount of which "is much below the value of the national public works. The increase "of the population will enable Australasia to increase its productions, "meet its liabilities easily, and ultimately pay off its debt."

Mr. Loader's paper was read before several of the leading bankers and financiers of Melbourne, and it was followed by an able discussion, the speakers being Mr. Davis (City and County Bank), Mr. Hayter (The Government Statist of Victoria), Mr. Fraser (Bank of Victoria), Mr. Jowett, Mr. Osborn, Mr. Zox, M.L.A., and Mr. Fenton (SubEditor of the Victorian Year Book). The remarks of Mr. Hayter and Mr. Fenton were specially valuable, the former looking upon the matter, or rather upon the particular phase of it relating to the future provision of interest on the loans from the point of view of the statistician and as one deserving great consideration.

The point which was really the text of Mr. Billinghurst's paper, viz. the desirability or otherwise of including colonial loans amongst the securities permissible by law in this country for the investment of trustees was not touched upon in Mr. Loader's reply, but it was more or less introduced into the remarks of the subsequent speakers. Naturally the colonists of so substantial a colony as Victoria are desirous that their stocks should be recognised as

available for the purposes named, but it will require very grave consideration before the area of stocks legally available for the investment here of trustees is extended beyond those securities which are more or less under the control of the Government and Parliament of the United Kingdom.

The papers and discussions both here and in Australia on the subject of "Colonial Indebtedness " cannot but be productive of good to all interested. The colonists will have learnt that certainly there is not the "profound ignorance" on this side of colonial resources that was hinted at by one of the speakers in Melbourne, and on the other hand considerable information has reached us with respect to the views held by those who have borrowed so freely from this country for the purpose of developing the resources of the extensive and valuable colonies of this great empire.

CHAPTER 45.

An Act to amend and consolidate the Factors Acts.

[26th August 1889.]

BE it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

Preliminary-Definitions.

1. For the purposes of this Act

(1.) The expression "mercantile agent" shall mean a mercantile agent having in the customary course of his business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods :

(2.) A person shall be deemed to be in possession of goods or of the documents of title to goods, where the goods or documents are in his actual custody or are held by any other person subject to his control or for him or on his behalf: (3.) The expression "goods "shall include wares and merchandise: (4.) The expression "document of title" shall include any bill of lading, dock warrant, warehouse-keeper's certificate, and warrant or order for the delivery of goods, and any other document used in the ordinary course of business as proof of the possession or

control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented :

(5.) The expression "pledge" shall include any contract pledging, or giving a lien or security on, goods, whether in consideration of an original advance or of any further or continuing advance or of any pecuniary liability:

(6.) The expression "person" shall include any body of persons corporate or unincorporate.

Dispositions by Mercantile Agents.-Powers of mercantile agent with respect to disposition of goods.

2. (1.) Where a mercantile agent is, with the consent of the owner, in possession of goods or of the documents of title to goods, any sale, pledge, or other disposition of the goods, made by him when acting in the ordinary course of business of a mercantile agent, shall, subject to the provisions of this Act, be as valid as if he were expressly authorised by the owner of the goods to make the same; provided that the person taking under the disposition acts in good faith, and has not at the time of the disposition notice that the person making the disposition has not authority to make the same.

(2.) Where a mercantile agent has, with the consent of the owner, been in possession of goods or of the documents of title to goods, any sale, pledge, or other disposition, which would have been valid if the consent had continued, shall be valid notwithstanding the determination of the consent: provided that the person taking under the disposition has not at the time thereof notice that the consent has been determined.

(3.) Where a mercantile agent has obtained possession of any documents of title to goods by reason of his being or having been, with the consent of the owner, in possession of the goods represented thereby, or of any other documents of title to the goods, his possession of the first-mentioned documents shall for the purposes of this Act, be deemed to be with the consent of the owner.

(4.) For the purposes of this Act the consent of the owner shall be presumed in the absence of evidence to the contrary.

Effect of pledges of documents of title.

3. A pledge of the documents of title to goods shall be deemed to be a pledge of the goods.

Pledge for antecedent debt.

4. Where a mercantile agent pledges goods as security for a debt or liability due from the pledgor to the pledgee before the time of the pledge, the pledgee shall acquire no further right to the goods than could have been enforced by the pledgor at the time of the pledge.

D