cialism,
he replied laconically, "It is my kind of Socialism."[78]

The "State Socialism" of Australia and New Zealand is fundamentally
agrarian; its real basis is a modernized effort to establish a nation of
small farm owners and to promote their welfare.

Next in importance and closely connected with the policy of gradually
bringing about the division of the land among small proprietors, is the
policy of the government ownership of monopolies. Already New Zealand is
in the banking business, and the Australian Labour Party proposes a
national bank for Australia. National life and fire insurance are
instituted in New Zealand; the same measures are proposed for Australia.
Already many railroads are nationally owned, and it is proposed that
others be nationalized. Already extensive irrigation projects have been
undertaken; it is proposed that the policy should be carried out on a
wider scale. But the Australian Labour Party is not fanatical upon this
form of "State Socialism." It does not argue, like the British
Independent Labour Party, that the civilization of a community can be
measured by the extent of collective ownership, for Australasia's
experience has already shown the immediate and practical limits of this
kind of a movement. New Zealand is already burdened with a very large
national debt; Australia proposes that its debt shall be increased only
for the purpose of building commercially profitable railways or
irrigation schemes, etc., and not in any case for the purpose of
national defense or for other investments not immediately remunerative.

The national debt, aside from that based on profit-making governmental
undertakings, like railways, is to be reduced, and nationalization of
other monopolies is not to be undertaken until new measures of taxation
have become effective. These are a graduated land tax and an extension
of the graduated income and inheritance taxes.[79]

The program concludes with vigorous measures for national defense.
Australia is to own her navy (supported not by loans, but by taxation),
and is to be as independent as practicable of Great Britain. She feels a
need for military defense, but she does not propose to have a military
caste, however small; the whole people is to be made military, the
Labour Party stands for a citizen defense force and not for a
professional army. Finally, Australia is to be kept for the white race,
especially for British and other peoples that the present inha