RETORT TO MR LANG.

Press, Volume LXVIII, Issue 20463, 5 February 1932, Page 9

RETORT TO MR LANG.

FEDERAL TREASURER'S STATEMENT.

TRIBUTE TO PRIME MINISTER. (VSITED PHESS ASSOCIATION—33I EI.BCTBIO TZLEGBAPH—COPYBIGET.) (Received February 4th, 11.56 p.m.) SYDNEY, February 4. At Molt/ourne to-day, replying to Mr J. T. Lang's criticism, Mr S. M. Hi'Ljce (Federal Treasurer) declared: Mr J. A. Lyons is Prime Minister in the fullest and most complete sense. He holds the confidence of the Australian people to a degree seldom accorded to any pqlitieal leader. 1 am proud to serve in the Government that he is leading. Mr Bruco added that Mr Lang's reference to unemployment was a tissue of lies and misrepresentation, designed to divert the minds of the electors of East Sydney from liis own ingsBONDS RECOVER IN NEW YORK. COMMONWEALTH ACTION. (Received February 4th, 7.30 p.m.) NEW YORK, February 3. A slightly incorrectly worded Press dispatch from Melbourne, to the effect that "the interest payments on the bonds of New South Wales, due in London and New York, will be met by the Commonwealth Government, Mr Lyons has announced," caused a marked recovery in Australian issues to-day. New South Wales, 1957, gained six points, 1958 six and one half points; Commonwealth five per cents., 1957, gained two and a half points; 1955, two points, and 4A x>er cents., two and one quarter points; Brisbane 5 per cents., 1957, gained two points; and 1958 three points. Sydney 5J per cents, gained one quarter point, Queensland issues alone were not favourably affected, seven per cents, losing two points, and six per cents, four points. Comment to-day showed that there was an imperfect understanding of the position, which is that the Common? wealth will use the funds due to Ne\y South Wales, to pay the bondholders, and is not directly meeting the charges. It is Jearnpd that Mr A. C. Willis (Agent-General in London for New South Wales) has consulted the Chase, Harris, Forbes Corporation's London agents concerning a year's suspension of interest payments, and that he has received a reply that the fiscal agents cannot give an authorisation, such being the exclusive province of the bondholders, who do not exist as a consultative group. It is understood that Mr Willis also received an intimation that the aetion of the Commonwealth, in arranging for the interest payments, made any consideration of his proposals academic.

WRIT FOR DEFAULT. OPINION IN LONDON. LONDON, February 3. "It looks a good thing for the lawyers," was Mr A. C. Willis's (New South Wales Agent-General) only comment on the Commonwealth Government's writ to recover ©243,118 from the New South Wales Government. Meanwhile the Chase National Bank, on behalf of the United States bondholders, in response to Mr Willis's moratorium overtures, replies that the difficulty of finding a representative body ou behalf of the bondholders ia the same there as in Great Britain. Mr J. A. Lyons's statement that the Commonwealth would ultimately be responsible for the debts had a soothing effect in the city, and prices of Australian stocks rose slightly. Some States recovered 20a to 40s. COMMUNIST NEWSPAPERS BANNED. ACTION IN AUSTRALIA. SYDNEY, February 4. The Federal Government has moved to ban the postal transmission of Communist literature, and Mr J. E. Fenton, Postmaster-General, has been advised by the Attorney-General that the "Workers' the "Red Leader," the "Working Woman," the "Pan-Pacific Worker," the "Young Worker," and "The Soviets To-day" were issued in tho interests of an unlawful association, and these papers would be refused transmission through the post, as the bodies with which the papers were asociated were all more or less actively engaged in advocating the overthrow of the Government by violent or other unlawful means. NEW NAVAL COMMANDER. CO KITED PRZSS ASSOCIATION —BY > tJBCIXIO TELEGRAPH—*COPXBIGHT.) LONDON, February 3. Bear-Admiral K. C. Dalgleish has been appointed Pear-Admiral in command of the Australian Navy.