"LANG IS FINISHED."

Auckland Star, Volume LXIII, Issue 37, 13 February 1932, Page 11

"LANG IS FINISHED."

BUT HE HOLDS TO OFFICE.

elimination difficulty,

MEANTIME DEFAULT CONTINUES.

In those political circles where there is an easy familiarity with sections So-aud-So of Acts Sueh-and-Such there is just now much argument over what action can be talfccn to remove Lang from the Premiership of New South Wales. All hope of Lang's sudden reformation must be abandoned, writes Hugh Adam in the "Melbourne Herald." It is true that he never expected that tlie Loan Council would call his bluff He never expected that the new Commonwealth Government would have the courage to risk a charge of default rather than continue to condone his offences

He is surprised, shocked and shaken, but he has no intention of trying to meet his obligations. On the contrary, P?-o W ,!n n , f ° r hls own purposes the £408,000 that he promised to pay into the Commonwealth Bank to meet part of Ins overseas interest bill, and this month he will probably default on his share of the interest that must be paid to Australian bondholders in the Conversion Loan.

Between now and June 30 Land's obligations for interest payments over and above his present default £5,500,000. Of that amount th?ee millions will be due to overseas bondholders and i 2,000,000 will be due in Australia.

The payments that he should receive from the Commonwealth over the same period would amount to £1,115,590. So that if he defaults in all his interest payments until the end of the financial year, accepting the penalty that all his supplies of money from the Commonwealth Government are stopped, Lancr will actually be £4,384,410 better off than if lie met his interest bills. This advantage would more than cover the sum bv which his Budget deficit has exceeded the amount allowed for under the Premiers' Plan.

Burden on Commonwealth. Assuming that Lang, persisting~in his policy of default, is still in office at the ' t, financial year, the Commonwealth Government—being liable under the financial Agreement—will have been forced either to find £5,500,000 or to have defaulted by that amount to overseas and Australian bondholders.

In face of that, it becomes a matter ot the most urgent national importance that every course of action should immediately be initiated that has any chance of removing Lang from the Premiership of New South Wales. The possibilities so far discussed are his dismissal by the Governor of New South Wales, civil proceedings by the Commonwealth Government against the State of New South Wales for recovery of the money owing, new Federal legislation giving the Commonwealth Government power to seize Lang's revenue in satisfaction of the. debt.

The simplest, speediest, most direct course is undoubtedly Lang's dismissal by the Governor.

Dismissal by Governor.

Apparently no formal representations can be made toSii 1 Philip**Gamo by any other Government in Australia. There is good reason for believing that the Imperial authorities have not thought; fit to suggest this course of action nor has he so far asked for direct guidance or instruction. But liis powers and his responsibility are undoubted. The public mind throughout New South Wales and' throughout Australia is convinced that a complete case has been established-for Sir Philip Game to assume the responsibility. and exercise the powers of his office without delay. If lie does not do so a very serious blow will have been struck at' the prestige of his office. Australia will very properly want to know what use governors are, beyond their little social pleasantries, if they do not act for the good government of the people on the very exceptional occasions when they alone have the power to apply the prohipt and effective solution. Action by the Commonwealth Government, either in the direction of civil proceedings against Lang or of new Federal legislation, inevitably means a dangerous delay. The Federal Parliament does not meet until the middle of this month. Eyen if legislation is immediately passed through both Houses enabling the Federal Government to seize New South Wales revenue for the satisfaction of its debts, it is certain that Lang could put procrastinating legal and practical difficulties in the way of action. If civil proceedings have to be 'taken it is estimated that if Lang used obstructionist tactics, as lie certainly would do, it would be three months before a judgment' could be obtained. All that time the bondholders overseas would be waiting for the interest payments that are guaranteed by the Commonwealth of Australia.

People Shamed and Betrayed. Of course Lang is finished. No man who has acted as he has done can possibly avoid punishment at the wrathful hands of the people he has shamed and betrayed. It is only a matter of time before even his own party realises that in its most selfish interests it cannot aiford to be associated with this political Ishmaelite. But a "matter of time" is all important. That smash within Lang's party may come to-morrow, or it may not come for months. If it does not come for months, if, in spite of the wrath of public opinion in his own State, if, in spite of whatever legal or legislative action the Commonwealth Government may take, Lang remains in office for a few months longer, carrying out his policy of repudiation, then the State of New South Wales will have fallen into such a morass of debt that recovery will be impossible, and Australia itself will have been forced into the shame of huge default.

These facts must be as plain to the Governor of New South Wales as they are plain to every person in Australia. It is in his hands, and in his hands alone, to take the action that will now save the people whose interests he was sent here to serve from a great wretchedness.