STATE OF FLUX.

Auckland Star, Volume LXII, Issue 39, 16 February 1931, Page 7

STATE OF FLUX.

FEDERAL POLITICS.

Definite Labour Rift Over

Finance Policy.

SCULLIN'S PLACE USURPED.

rnited P.A.—Electric Telegraph—Copyright)

I (Received 12.30 p.m.) SYDNEY, this day. The political situation continues in state efflux. The Melbourne finanial agreement, representing a volunary, self-denial undertaking by the Australian Governments to reduce xpenditurc and balance the Budgets, as remained practically a dead letter f'br six months owing to the Labour eft wingers' refusal to recognise the feceds of the situation. I It is bow replaced by the Canberra Inreement, embodying the three-year plan for rehabilitation, signed at midnight on Friday by all the leaders except Mr. Lang. f So far as its promises may help the [pun try, they are dependent upon the rood will of the caucus and the Parliaments, and the public are not reassured Siat all will undertake fulfilment of the fgrcement, which entails radical sacrilces. f The Stock Exchange continued steady lespite the political uncertainties, and (lie announcement of the three-year plan sansed a slight firming in industrial locks. The proposed special tax on hterest, however, cast a shadow over She dealings in Government bonds. I Yesterday's Labour conference to ecide the manner of the appeal to the jast Sydney voters at the Federal bySection was held in camera but sidejghts make it appear that there was a rvely advocacy of the rival policies. No fcreenient was reached. I The announcement of Mr. Graves, | iustralian Labour party president, that' fo advocate, of the Scullin-Theodore Policy would be allowed on the platform, Idicates that the left wingers hold Lay, and their protagonist, Mr. W. A. Icasley, Assistant Minister of Industry, Sill outline the party policy at the openfig of the campaign. I Thus will be seen the spectacle of a Inior Minister usurping the place at the lad of the Government.