The Situation In New South Wales.

Press, Volume LXVII, Issue 20199, 30 March 1931, Page 10

The Situation In New South Wales.

The best and the worst that has been said so far about the situation in Australia is the comment of the Secretary of State for the Dominions in the House of Commons, as reported ill our cables to-day: "I am sure I am inter"terpreting the sentiments of all sec- " tiona of the House when I say that " the attitude of New South Wales has | " caused a painful surprise." Other ! men with less provocation might have expressed the same sentiment differently, but Mr Thomas no doubt was restrained because he could not forget that the default of the New South Wales Government was approved and contributed to by the New South Wales Labour Parly. For, although Mr Lang appears to a good many people at present to be a political knave, he is not a fool. He is a shrewd, much too shrewd, politician, and knows that he has behind him the mass of organised Labour in his own State. It is indeed that fact which makes the Lang Government's repudiation policy so bad in its significance and purpose. Nor does the trouble begin and end with the present default. In the .past nine years the States of Australia have borrowed £256,000,000 at home and abroad, and of that monstrous total New South Wales has secured the lion's share. It was obtained on the accepted principles of political finance, and bondholders are entitled to ask if jthe Lang precedent means that when the interest on these loans falls due New South Wales, if still under . Labour control, will repudiate its obligations, leaving the Commonwealth to pay, or compelling Australia to suffer financial chaos. There might have been some sympathy with Mr Lang if he had frankly confessed to bankruptcy and offered to meet his creditors in the best way possible in difficult circumstances. But he has taken a dishonourable course and imposed on the Labour Party and New South Wales the distinction of being the first administrative organisation in the British Empire to put comfort before responsibility. .