When Parliament met on 21st July, 1903, Mr. Philp appeared still to command a working majority--though somewhat diminished by the general election of 1902-3 compared with that which had followed him for three years previously. But on the 8th of September the Treasurer, Mr. T. B. Cribb, carried his taxation resolutions in Committee of Ways and Means, after an acrimonious debate, by a majority of only two votes in a House of sixty-five, several prominent Government supporters voting with the Noes. Mr. Philp then moved the adjournment of the House, and next day announced the resignation of his Ministry. [Illustration: MAROOCHY RIVER AND NINDERRY MOUNTAIN, NORTH COAST RAILWAY] CHAPTER VI. PUBLIC FINANCE (1903-1909). The Morgan-Kidston Ministry.--Economy in Revenue Expenditure.--Great Reduction in Loan Outlay.--Equilibrium Established at the Treasury.--Retrenchment and Taxation. --Improvement of Finances.--A Record Surplus for Queensland. --Land Sales Proceeds Act.--Abstention from Borrowing. --First Loan Floated since 1903.--Sound Position of Queensland.--Value of State Securities.--Reproductiveness of Railways Built out of Loan Money.--Public Estate Improvement Fund.--How Recourse to Money Market has been Avoided. On the 15th September, 1903, the Speaker's resignation was announced, and on the 17th Mr. (now Sir) Arthur Morgan announced the formation of a new Ministry with himself as Premier, his colleagues including the leader, (the late Mr. W. H. Browne) and another prominent member of the Labour party (Mr. W. Kidston). The new Ministry came in expressly to restore the financial equilibrium, the Treasurer being Mr. Kidston. Retrenchment became the order of the day, although the Estimates of the late Government were adopted, having regard to the fact that the first quarter of the financial year had practically expired. The pruning-knife was applied with vigour, and loan expenditure rapidly lessened, although existing railway contracts had of course to be completed. On 30th June following, revenue showed an increase of L69,000, while expenditure had been reduced by L110,000, the financial year ending with a deficit of only L12,424. Loan expenditure had been brought down to L603,805, a reduction of no less than L418,600 compared with the previous year. In the middle of the session of 1904 the Premier advised a dissolution, which was granted; and after the general election the Ministry returned in such strength as to warrant Parliament in treating their policy, especially the financial part of it, as practically a mandate from the constituencies.