The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. FRIDAY, SEPTEMBER 5, 1930. THE AUSTRALIAN CRISIS.

Auckland Star, Volume LXI, Issue 210, 5 September 1930, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

FRIDAY, SEPTEMBER 5, 1930. THE AUSTRALIAN CRISIS.

for <7;e cause iftfff lacks assistance, For the wrong that needs resistanoe, For the future in the And the good that we can do.

When Mr. Seullin started on His voyage Home to attend the Imperial Conference there seemed to be some ground for hope that his Government would be able to "carry on" during his absence without sustaining any disastrous reverse or losing; control of the situation. But the position has become complicated and precarious during the past week, for two distinct reasons.' " The. falling off in the Federal revenues has been more pronounced, and serious differences of opinion have arisen in the Cabinet in regard to the measures required to cover the deficit.

As it is now evident that the required revenue cannot be raised by the means originally proposed, the Federal Opposition demands that Parliament shall be summoned immediately to recast the Budget and to discover if nothing can be done to improve the situation by still further reducing Departmental expenditure. One obvious form of retrenchment would be the reduction of the wages and salaries of the great army of Federal public servants. But to this measure one section of the Government is resolutely opposed, and these Ministers threaten that, unless some other way out of the difficulty is devised, they will resign. There is strong opposition from 2\ew South Wales to the proposal to convene Parliament, and as the general feeling is that this course might jeopardise the prospects of the Labour party at the next general election, it is not likely that this step will be taken, except as a last desperate resort. ; ■

Meantime the Seullin Government faces a very delicate, and dangerous situation. The demand that means shall be found to cover the deficit "other than by a reduction of workers' wages" makes a strong popular cry, and the Acting-Prime Minister has no easy task before him. Mr. Fenton, though clearly ■well-intentioned, does not seem to command the confidence of all his colleagues, and ho is naturally inclined to compromise. He has suggested a conference of representatives of employers, industrial organisations and banks with Ministers to consider/eductions in prices, wages and interest, and the increase of the Federal income tax. As regards interest and prices, no Government can do much, and lower wages with a higher income tax would make any Government unpopular in Australia just now. Altogether Mr. Fenton is in a most unenviable position. But the "Times" has already warned the Australians that their securities' are being injuriously affected by the failure to balance the Commonwealth Budget and "the reluctance of some clement to make the necessary sacrifices," and it is obvious that, whatever Mr. Fenton decides to do, he cannot afford to delay much longer.