ANOTHER AUSTRALIAN CRISIS.

Auckland Star, Volume LXIII, Issue 26, 1 February 1932, Page 6

ANOTHER AUSTRALIAN CRISIS.

In one respect the news from Australia this morning of the relations between the Commonwealth and the New South Wales Government will cause surprise as well as disappointment. The world has been given to understand, and with somft reason, that Australia has improved her financial position substantially in the last few months, and it has been hoped and believed that the worst was over. On the other hand, those who have followed Mr. Lang's career have realised that so long as he is in office almost anything might happen. What has just happened is grave both for New South Wales and Australia. The Commonwealth Government, tired of Mr. Lang's demands for money and failure to keep step with the rest of Australia on the economy road, now announces that it will not find the £500,000 asked for by the State Government to meet oversea interest to-day, and that if the State defaults he must take full responsibility. Unfortunately, though . this drastic ■action may be justified by Mr. Lang s amazing record of begging and flouting, it may have far-reaching consequences. State and Federal finance cannot be entirely separated in the minds of investors, and already the inability of New South Wales to find the money has affected Commonwealth stocks in London. But if the State defaults to-day, the question whether Mr. Lang's Ministry can be allowed to continue to hold office will be raised in un acute form. ,