The net average rate of interest payable on the public debt of Queensland on 30th June, 1908, was L3 14s. 1d. per cent., but this rather high rate arose from the fact that more than a moiety of the total debt was incurred many years ago, when all Australian stocks bore 4 per cent. interest. The lowest average rate now paid by any Australian State is L3 8s. 9d. by Western Australia, most of whose stock was issued during the closing decade of the 19th century, and bears from 31/4 to 31/2 per cent. Speaking generally, Queensland stands well on the London money market at present, as, according to the "Commonwealth Year Book" quotations from the "Economist" newspaper, the "middle price" of her 31/2 per cents. quoted on 'Change on the 25th September of last year was L100, a figure only equalled at the time by Victoria among the Australian States; and in December following L99, which was on a par with New South Wales stock on the same date, and only 10s. per cent. below the quotation for Victorian stock. These prices, however, for comparative purposes seem to need slight adjustment on account of the interest respectively due at date of quotation. Having regard to the fact that the public debt of Queensland is higher than that of any other Australian State per head of the population, the policy of abstention from further borrowing from 1903 until 1909 has been vindicated in a most gratifying manner. A pregnant fact is that more than one-half the entire public debt has been invested in railways which in 1908-9 returned L883,610[b] in net earnings, all available for the payment of interest on capital, or equal to about L3 7s. 6d. per cent. per annum, which meant that our railway system was almost self-supporting, besides being the source of a large indirect gain to the Treasury by providing facilities for transport over 3,498 miles of line. It is no exaggeration to assert that directly and indirectly the railways assist the Treasury to the amount of the annual interest charge on the entire public debt of the State. Instead of the railways being a burden upon the taxpayer, as in former years, they have undoubtedly now become the backbone of the public credit. Seven years ago the interest charge on railway capital falling on the taxpayer amounted to L513,128. To-day, as shown by official figures, there is practically no such burden, and the existing state of the investment not only forms a complete justification for the railway policy of the past, but also for the vigorous way in which the construction of new lines is being pushed forward. With a continuance of good management it is apparent that the time is within measurable distance when the Railway Commissioner will, unless rates be reduced, hand to the State Treasurer a large annual surplus which will be available for lightening the public burdens.