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 would be unduly postponed if it was not accomplished till these matters could be adjusted. Power was, however, given to the Federation to take these over, with the consent of the States.

The financial problems involved in federation proved to be most intricate, and no satisfactory solution was arrived at. It was provided that, immediately on the establishment of the Commonwealth, the Federal Government shall assume the administration of the departments of Customs and Excise; and at subsequent dates to be arranged it shall take over from the States posts and telegraphs, naval and military defence, lighthouses, lightships, beacons, buoys, and quarantine. Other matters of government may be given over, but only on federal legislation. The transfer of these services would leave the States with a large deficiency in their revenues, and it was therefore provided that for the first five years all the surplus raised by the Commonwealth, after paying for federal services, shall be returned to the States in the proportion contributed by them. In the meantime accounts are to be kept, with the help of which the Federal Parliament may arrive at an equitable method of distribution at the end of that term. Special concessions were made to Western Australia, which derives nearly all its revenue from Custom duties, most of which are levied on goods coming from the other colonies. If these duties were to be abolished without any compensatory arrangement. Western Australian finances would be hopelessly disarranged. It will be allowed, therefore, gradually to diminish its Customs tariff during a period of five years. Just at the close of the Convention, a provision was added, on the motion of Sir Edward Braddon, the Premier of Tasmania, that three-fourths of the revenue derived by the Commonwealth from