 1. Compliment of Hunter mainland invitation. Faithful representation of
    their Australian interests.

 2. Great honor to occupy post of Prime Minister not obtained by any
    seeking of mine; great responsibilities; pioneer work. First
    responsibility. Formation of Ministry. Describe colleagues. Will not
    attempt to exalt them. Not a one-man ministry nor men with
    shibboleths. Ministry does not include all the men one would have
    desired but there were only 7 portfolios. Not a fact any pressure
    was exercised by any one of them for his inclusion.
    
    NSW Ministers take External Affairs and Home Affairs. Work assigned
    to Barton and Lyne respectively includes 
    
    [illegible handwritten notes describing ministries of Barton and
    Lyne]

 3. Holder. Regret have not had out advantage of his assistance. His
    conduct in every way honorable to himself.  He made no claim. Don’t
    even know if he has any ambition; or if he has one what it is. Is a
    staunch and loyal federalist of many services.

 4. "Too many lawyers". It is the people who have placed men, lawyers or
    not, in such positions as showed their fitness to Federal Ministers.
    
    Ministry begins without any bargains and without any personal
    compacts as to appointments. We commence and deal fairly.

 5. First task to prepare for elections. Lyne, Home Secretary, already
    engaged on this. Gratified securing assistance of a man of his
    standing and ability. Elections at earliest possible date that the
    State Statutes and machinery will allow.

 6. We rely on the people. The area too immense to canvass.
    
    Ask them broaden their views to the Continental outlook. Will you
    not return men of principle who will uphold the dignity of the
    Parliament of a continent. An an old Speaker, I appreciate this
    need. Hope and believe Parliament will not be degraded by vulgarism
    and disorder. More and better business will be done, if done
    decently and in order.

 7. Federal capital. Desirable Federal Capital master in its own house.
    Early steps select capital site, provide for beauty of position and
    construction and sanitary purity. 100 mile area excluded; no fault
    of mine.
    
    So far as Commonwealth acquires land within area as property and not
    mere territory, that land will not be sold but will be let for long
    terms, with reappraisements time to time. No fancy prices. Not play
    into hands of speculator. Give only fair value, as at  time of
    passing Constitution act or some later safe date. Rental revenue
    will be available to pay for, or meet interest on, expenditure as
    far as possible.
    
    Due enquiry before acting and fair play state of N.S.W. in final
    arrangement.
    
    ? Oliver's Report

 8. Public service. Customs passed over on 1 January under constitution.
    
    Other departments will be taken over as soon as possible. Customs
    regulation, postal and defence bills prepared with despatch.
    
    As soon as opportunity admits, will regulate public service as to
    appointments and promotions.
    
    At present appointments in newly created Department merely temporary
    and few pending meeting Parliament, and we shall utilise state
    offices and offices wherever practicable until full organisation.
    
    This admits of meeting as far as possible any cases of hardship
    which may arise from reorganisation of large transferred
    departments; customs, post office and defence.
    
    Task of administration already very heavy for Ministers with limited
    assistance. Shall need the services of capable experienced men
    available for Commonwealth work.

 9. High court. Greatest bulwark of rights under Constitution. An
    Australian Court for Australian matters. Constitution on this.
    Attorney-General already preparing statute to establish Court.

 10. Interstate commission. Body next in importance to High Court. War
     of preferential, as distinct from differential railway rates must
     be abolished, leaving them only within the limits prescribed by the
     Constitution.
     
     Working Commission will prepare way for considering vast subject of
     taking over railways.
     
     Whether the debts of the several states, or a large part of them,
     can all to be taken over before the railways, is subject now
     engaging the close attention of the Treasurer of Commonwealth.
     
     Interstate commission bill is in preparation of which Sir William
     Lyne will be in charge.
     
     These two great tribunals will give confidence to citizens
     everywhere that justice will be secured to them, but neither of
     them can be brought into operation until Parliament has dealt with
     legislation which will be presented to it.

 11. Defence. Department second to none. Death of Dixon. Pathetic
     episode. Eulogy. Benefits of unity of organisation. Train our
     incomparable material under best advice.
     
     We do not underrate the necessity of taking over this great
     department, as it can be done efficiently and effectively.
     
     United adminstration will produce even greater results with higher
     efficiency and, we trust, greater economy than we have already seen
     with pride.
     
     Review. It's splendid representation of Empire and Unity.
     
     No military aggression but ready in common fairness to render to
     rest of the Empire what we expect her to render to us in case of
     stress.

 12. Post office. If efficient defence is a prime necessity, so also an
     efficient working of the posts and telegraphs.
     
     The taking over of this department has already engaged earnest
     attention.
     
     The interests concerned are full of variety and complexity; much
     more so than in the case of defence.
     
     Old bogey about all round 2d postage.
     
     While financial considerations must be closely observed the task of
     Ministers is to make the sending of letters, telegrams and cable
     messages cheaper, not dearer.

 13. Old-age pensions. Bills already passed NSW and Victoria ministers
     as one as to the advantage of legislating. Commonwealth Old Age
     Pensions Bill will be introduced as soon as financial situation
     clear enough to enable us to provide necessary funds.

 14. Treasury. Three subjects last named all depend on finances. How
     will the necessary funds to provide all these benefits be arranged
     for under policy of our opponents?
     
     The Treasurer must needs. be a man clear-headed and trustworthy.
     
     We have had enough of a juggling and jesting with figures. 
     
     Plunging into debt and squandering resources.
     
     Turner a guarantee for sound, sober, reliable control.

 15. No encroachment. Taxation power not to be rashly exercised.
     
     Great obligations taken over from States; but Customs with them.
     
     They are left as many obligations as they can carry, nay more,
     unless their reserve of taxing power is jealously preserved to
     them. 
     
     If after Commonwealth tariff is imposed they need more revenue,
     they can only obtain it by direct taxes within the States.
     
     Absolutely necessary to leave this field to them.
     
     They should be studied in every way and the early difficulties of
     so great a change made as little trying as possible.
     
     There must be no direct taxation by the Commonwealth government and
     less under the pressure of some great national emergency; not even
     then if it can be avoided.
     
     I make this declaration emphatically because already so-called
     "Revenue Tariffists" are threatening £700,000 of Commonwealth
     direct taxation as well as customs tariff.

 16. Sufficient returns to State. Not only must we not encroach on State
     resources, but we must provide for the return to the States of as
     much as possible of the sums they will have parted with to the
     Commonwealth.
     
     This means a high tariff, however you frame it, whether Kingston or
     Reid is its author.
     
     Free trade clearly impracticable. There must be a large revenue
     from Customs, but not one penny more than required. That, however
     means much.
     
     What is the financial position?
     
     Latest Statistical returns possible to be obtained show customs and
     excise revenue for 6 States amounting to £7,629,027 at 30 June
     1900.
     
     The increase from 30 June 1899 to 30 June 1900 (1 year) had been
     £246,330 and from 30 June 1898 to 30 June 1900 (2 years) had been
     £650,968. [Illegible handwritten notes] 
     
     Provision has also been are for the new expenditure for the
     carrying own of the Commonweath which has been estimated by some at
     about £300,000 per annum; and by extremists, at various fancy
     amounts.
     
     Exact figures of the present time as to Customs and Excise are not
     yet obtainable, but it suffices for present purposes that I have
     been able to give an approximation.
     
     If we are to provide for uniformity and reasonable cheapness of
     posts and telegraphs and also for old age pensions, when the way is
     clear to do so, can any one tell me how that is to be done by such
     a tariff as is indicated by those who have prematurely constituted
     themselves 'the other side?", who have gone into opposition without
     knowing our proposals or the facts in which they rest?
     
     Will any one again tell me what resort there is, except extreme
     direct taxation by the Commonwealth, to make up the shortages of
     Commonwealth revenue left by their tariff proposals, and how, in
     the event of such direct taxation, the States are to make up for
     own shortages should such occur after the Commonwealth, at the
     instigation of two previous oppositionists, has dried up the
     sources of State direct taxation?

 17. What then is the issue presented?
     
     Shall we raise revenue without regard to the effect of means by
     which we raise it?
     
     Shall we pile all the duties of the goods consumed by cottagers and
     artisans?
     
     Shall we tax the raw materials of manufacture more heavily than the
     manufactured product itself?
     
     These abuses are possible under what is described as "a revenue
     tariff".
     
     They must be avoided, one and all. They are the latest consignment
     of "the blessings of Free Trade".
     
     Revenue we must have; that is the all important consideration.
     
     The Commonwealth must pay its way.
     
     It must help the States to pay their way.
     
     It must carefully study every detail.
     
     It must distribute its burden justly.
     
     It must do no avoidable mischief.
     
     Kingston's task.

 18. I am a Protectionist, and so are nearly all my colleagues.
     
     If we had a country which had never had a tariff, we should
     consider carefully how best to assist private enterprise to develop
     it. In such a country, if our proposals were refused, the worst
     that could happen would be delay in development, less variety of
     employment and less trade but
     
     Mark, these would be merely negative results.
     
     But the present position is very different.
     
     We have no such condition of things.
     
     Australia has known tariffs for many years.
     
     In all the States,there has been more or less protection. 
     
     In all, industries have spring up and men are earning their lving
     by them.
     
     Capital is invested in them.
     
     Labour is invested in them.
     
     These are the facts.
     
     Even in N.S. Wales, there is still £3 a ton on sugar, to protect
     that production on our own soil.
     
     Are we to abolish that protection now and begin the union by
     ruining our northern farmers? Have not free traders themselves
     refused to do this?
     
     If we too refuse, shall we not deal as considerately with our
     neighbours as with ourselves?
     
     Must we not take the situation as we find it, and, whether
     protectionist or "revenue tariffists", fill our treasury without
     emptying our industries?

 19. So the policy of the Ministry in this regard is revenue without
     destruction. A tariff maintaining employment and not ruining it.
     
     A business tariff which will yield the sums we need without
     discouraging production.
     
     Hitherto the industries established in the several States have been
     in unrestricted competition only within each State separately.
     
     By this Constitution, complete intercolonial freedom of trade
     begins with the Commonweath tariff.
     
     These industries will thus be suddenly exposed to unrestricted
     competition all over Australia.
     
     In at time, they will have early trials and difficulties which will
     tax all their dtength.
     
     Are we to add to this the shock of unrestricted competition, for
     the first time, with the whole world at the same instant?

 20. There will be no rules of thumb. No one tariff of the six now in
     force can claim to include all its fellows.   The highest duties
     not to be adopted because they are highest nor the lowest because
     they are lowest.
     
     Each will have to run the gauntlet of criticism and justify itself.
     
     By this (leave?) we hope to present:-
     
      a business man's tariff
      a practical working tariff
      a really federal tariff
     
     So we shall avoid disaster suffering bitter(est?) antagonism to the
     (?) wh. has made them possible.
     
     Men of all opinions who put the country first and their own policy
     second, can agree that the first tariff of Commonwealth ought to be
     considerate, preservative of existing production and liberal in its
     attitude towards those engaged in production.
     
     Careful enquiry and close consideration required to frame a tariff
     which shall adjust itself to our circumstances and needs, an
     Australian tariff for the Australian nation.

 21. If you desire, with revenue, destruction, you must seek another
     representative, and Parliament another Ministry.
     
     All our other tasks are those of building up, seeking to raise up
     institutions which shall stand, under which justice shall be done
     to all.
     
     A great constructive work lies before us. Power exists to unify the
     laws under which burins is carrie on, to simplify the law, and to
     make the whole continent one.
     
     (See Section 51: Banking, Insurance, Negotiable instruments,
     Copyrights, Patents and Trade Marks, Trading Corporations,
     Bankruptcy, Currency, Coinage, Legal Tender, Weights and Measures,
     Service and execution of legal process and judgments from end to
     end of the Commonwealth). 
     
     Inconsistent to unite construction with destruction, to build up
     and pull down at the same time.
                Our policy is Federal and constructive.
     
     We seek to fulfil a programme outlined by Federalists, in peace
     with honour. (Local?) Coal, wine, farming.
     
     The farmer. Western Africa. Argentina. Other quarters.
     
     Necessary to him that the protection left to his industry after
     Intercolonial Free Trade begins, should be maintained.
     
     Fallacy that the protected industry alone receives the benefit of
     the duty.
     
     [handwritten:] Preferential treatment of British Goods where reciprocity possible happy to adopt it as preferential treatment
     apart from [illegible] we strongly favour it but the subject is
     so difficult to deal with that serious consideration must be given
     to it before final action.

 22. Among powers of legislation you will find XXXV. Conciliation and
     arbitration for the prevention and settlement of industrial
     disputes extending beyond the limits of any one State.
     
     This is a reserve power for the exercise of which it may be hoped
     occasion will seldom arise; but
     
     On this subject, Mr Kingston will introduce a bill. We realise that
     it is far better to be ready with legislation than to take the risk
     to far-reaching interests entailed by the prolongation of a dispute
     which may suddenly arise.

[ends]