GWYDIR VICTORY.

Auckland Star, Volume LXVIII, Issue 127, 31 May 1937, Page 5

GWYDIR VICTORY.

LABOUR'S CHALLENGE

WILL MR. LYONS SURVIVE?

AU EYES ON LONDON STAGE. (From Our Own Correspondent.) SYDNEY, May 24. The declaration of the poll for the Gwydir electorate left Mr. Scully, the Labour candidate, in possession of the seat with an absolute majority of the votes cast. Mr. Scully, who has behaved well throughout a trying ordeal, said that hi 6 opponents had fought a clean fight and that the Press generally had been quite fair to him; but he told his audience with justice that the Nationalists "will have to find some other bogy than Mr. Lang." Naturally the Labour party is much exhilarated by its success, and its spokesmen are predicting a sweeping victory for the movement at the Federal elections which may take place as early as October next. Nor is this forecast of a Labour victory at the Federal polls confined to the Langites and the "Labour Daily." The "Daily Telegraph," which has certainly no sympathy with the Langites, warns the Nationalists that the U.A.P. and the U.C.P. have lost the public confidence, that it must be regained, and that the lesson of Gwydir is that whatever the electors felt in 1931 or in 1934, they have obviously lost all fear of the possibility of a Labour Government now. The "Sunday Sun," which has always supported the Lyons Government, points out, after a careful analysis of the figures, that if Labour can secure such a large proportion of votes in Gwydir, it should be able to win from three to five other seats in New South Wales and three more in Victoria. >

The "Labour Daily" goes much further, predicting, with the Gwydir figures as a basis for its prophecy, that Labour will win at least seven more seats at the next elections, giving it 18 seats out] of the 28 N.S.W. seats in the House of! Representatives. In any case, it insists that Mr. Lyons has already "lost hisj mandate" and that the next Federal; election will usher in his downfall. Nationalist Team's Discord. These gloomy prophecies are to some extent borne out by the discord that now pervades the Nationalist camp as a result of the Gwydir defeat. The U.A.P. blames the U.C.P. for this disaster, alleging its unpopularity and the impracticable arrogance of Dr. Earle Page as its principal causes, while the U.C.P. blame Mr. Stevens and his collagues for not lending their assistance earlier and putting more energy into the campaign. All these things combined have made a deep impression on the public mind, and what may be called the "irregular" Press of Sydney has given striking evidence of the doubt and perturbation that the Gwydir election and ifs concomitants have now produced here. The "Bulletin" once more warns Mr. Lyons and Dr. Earle Page that, if they mean to maintain themselves in office, they must do something to make the electors forget their failures and regain confidence in them. "Truth," in summing up "the lesson of Gwydir," recounts the faults and follies of Mr. Lyons' Cabinet —"stupid censorship of books and films, the banning of Mrs. Freer, the trade war with Japan, the mix-up over the air services, the high and mighty, attitude adopted by Ministers when the referendum proposals were defeated"—all these are "black marks against the Government" which the electors will not forget. Labour Leader Impresses. On the other hand, in the Gwydir campaign Mr. Curtin seized his opportunity, and spoke firmly and moderately, and created in the public mind a most favourable impression. Though "Truth" has done full justice to the public policy of the Lyons Government, it concludes its homily with this rather cynical remark: "The Gwydir electors are to be complimented on their vote of censure on the Federal Government for its many • shortcomings, and it is to be hoped that the rebuff will have the effect of bring-

ing Federal Ministers to a realisation of their responsibilities and obligations to electors throughout Australia, and that they will cease to offer gratuitous insults just because the electors do not see eye to eye with them." Even more outspoken and decisive is "Smith's Weekly," which declares in last week's editoral that "Page and Lyons are through," adding as a further j characteristic comment on the Gwydir defeat that "the Federal Government is down, flat on its back, and if something is not done quickly, it will be out.'" Lender these circumstances it is natural that the supporters of Mr. Lyons and the Nationalist Government should watch eagerly the course that the Prime Minister is following at Home, and should hope fervently that at the Imperial Conference or on some other public occasion he may score a dramatic success to balance the failures of his policy on this side of the world. Mr. Lyons Scores. It is only fair to Mr. Lyons to admit] that to some extent these high expecta-, tions have been realised. Mr. Lyons is frequently at his best in dealing with affairs on a large scale, and on a conspicuous stage, and his speech at the Imperial Conference suggesting a "regional pact" to keep the peace in the Pacific has been extremely well received j at Home. Curiously enough America and Japan have both expressed approval —the United States because they believe that j any rapprochement with Britain and j Australia would mean the 'readjustment \ of the fiscal policy of the Empire in I their favour, and the Japanese because they are believed to be in want of a loan and are prepared to propitiate Britain and the Empire accordingly. But while Mr. Lyons certainly deserves credit for taking the lead in such a far-reaching movement as this and the distinction that he has gained at Home must react favourably on his prestige here, already many of our public men have realised that the line which our Prime Minister has urged Britain to follow may have disastrous repercussions. Any invitation to the United States to co-operate with Britain and Australia on any pretext or for any purpose would open the way to the modification of the Ottawa agreement, on which the fiscal policy of the Empire is now based. ,