In 1895 Mr. Nelson passed the amended Audit Act under which, if it appears by the Treasurer's annual statement that there is a surplus of receipts for any financial year, the money shall, before the 31st day of December following, be paid to the trustees of the Public Debt Reduction Fund created by the Act, and by them applied, first to the purchase of Treasury bills, and then to the purchase of inscribed stock at the current market price, stock so purchased to be cancelled. As a Treasurer with a deficit is bound to make provision for its liquidation at the end of a financial year, the effect of the Act has been to start every year with a clean sheet. By this practice an ingenious Treasurer is deprived of the opportunity of juggling with accumulated surpluses. [Illustration: ON THE ROAD TO MARKET, CENTRAL QUEENSLAND] [Illustration: FAT CATTLE, CENTRAL QUEENSLAND] In April, 1898, when Sir Hugh Nelson retired from active politics, he had just completed five years' service as Treasurer. During that time he had gone to the London money market only twice, and had issued stock to the amount of only 33/4 millions. Of that sum, moreover, the 2 millions asked for in 1894 was for retiring Treasury bills, and for the liquidation of the deficit on account of previously issued loans. In 1896 the Loan Act totalled L2,324,480, though it was not all placed by Sir Hugh Nelson. It provided for further railway extensions, and included half a million sterling for loans in terms of the Local Works Loans Act under the Sugar Works Guarantee Act; L600,000 was applied to the purchase at par of savings bank stock for cancellation, only 11/2 millions being placed on the London market. Of these two loans issued subsequent to the 1893 crisis, the first, bearing 31/2 per cent. interest, realised L98 14s. 01/4d. net per L100 of stock, and the other, floated in 1897, bearing 3 per cent., brought L95 15s. 103/4d., the record price for money obtained by the issue of Queensland Government stock in London. CHAPTER V. PUBLIC FINANCE (1898-1903). The Philp Ministry.--Large Surplus.--Loan Acts for Seven and a-half Millions Sterling.--Drought Disasters and Sacrifices for Federation.--Accumulated Revenue Deficits of over L1,000,000.--Rebuff on London Stock Exchange.--Resignation of Philp Ministry.