CRISIS MAY ARISE

Dominion, Volume 24, Issue 104, 27 January 1931, Page 9

CRISIS MAY ARISE

Situation at Canberra

SCULLIN’S NEW MOVE

Theodore Will Come Back

HOSTILITY OF SENATE

By Telegraph—Press Association—Copyright

(Rec. January 27,1.15 a.rn.)

Canberra, January 26. There is an important development in the Federal political sphere. Cabinet having agreed to invite Mr. E. G.'Theodore to resume the Troasurership, the Prime Minister, Mr. J. C. Scullin, submitted a recommendation to this effect for caucus approval, which was forthcoming at a late hour.

Mr. Scullin in a statement said he never believed Mr. Theodore guilty of the Mungana frauds, and regarded the delay in prosecuting him most unwarranted. The Federal Government greatly need his services in the herculean task of straightening out the national finances.

Senate will immediately adopt a hostile attitude to legislation sponsored by him, and a crisis in inevitable.

URGE FOR INFLATION

Country Labour’s Decision

“A STRAIGHT-OUT POLICY”-

(Rec. January 26, 11.45 p.m.)

Sydney, January 26.

The Country Labour Party, during a conference at Forbes, at which the Premier, Mr. J. T. Lang, was present, passed a resolution for a straight-out policy of inflation, urging the Federal Government to make credit available to the Commonwealth Bank In order to finance industry and thereby decrease un employment.

BANKS UNDER FIRE “Financial Net,” Says Lang BITTER ATTACK LODGED Sydney, January 26. A bitter attack on the financial institutions was made by the Premier, Mr. J. T. Lang, in addressing a country Labour conference at Parkes. “Unless within the next three or four months,” he said, “the Governments of Australia have found means of breaking through the financial net that has enmeshed them, every Government will be broken.”

Referring to Mr. Reginald McKenna’s remarks cabled last week, Mr. Lang said: “We agree with Mr. McKenna that salvation can only come through the adoption of some other form of currency. Sooner or later this problem must be faced by Australian Governments.”

The Premier also repeated his preelection pronouncement that, unless the people broke the power of financial interests those interests would break the people. BOLD REDUCTIONS Nationalists’ Proposals FRESH INTERNAL LOAN Sydney, January 26. Important proposals in the Nationalists’ financial policy have been made known by Mr. H. S. Gullett, DeputyLeader of the Opposition, with the full concurrence of Mr. Latham, Leader of the Opposition in the Federal Parliament.

He suggests that the Commonwealth expenditure should be reduced at the rate of £5,000,000 in the present financial year, that there should be an internal Australian loan of £10,000,000 for public works and rural relief, also the transfer of a large amount of credit from London to Australia, and a temporary reduction of taxation by about £10,000,000 by the funding iu London of part of Australia’s overseas interest payments for five years. Mr. Gullett claims that this plan would have a tremendous influence on the bondholders.

AUSTRALIA’S DUTY

Must Put House in Order

Melbourne, January 26. “There is no hope of any downward movem'ent in interest rates until Budgets are balanced,” said Mr. C. H. Tranter, chairman of the Associated Banks, in the course of an interview. He added: “Credit is not available'now because the Commonwealth Government will not put its house in order.’

WAGES REDUCTION

Unions to Seek Advice

It was reported from Melbourne last night that the federated unions and the Railway Employees’ Union have decided to obtain legal advice regarding the Federal Arbitration Court’s decision In lowering the basic wage. It is suggested that the court exceeded its functions in Interfering .with the basic wage. [By Radio, per Mr. I. M. Levy.]