SCULLIN MINISTRY SURVIVES

Dominion, Volume 24, Issue 144, 14 March 1931, Page 7

SCULLIN MINISTRY SURVIVES

Censure Motion Defeated by Five Votes T ANG FACTION SAVES GOVERNMENT _____ ' Fiduciary Bill May Cause Final Collapse LABOUR RANKS ARE NOW HOPELESSLY SPLIT United Press Association.—By Electric Telegraph.—Copyright. (Rec. March 13, 9 p.m.) - Canberra, March 13. Trvrdgfrt the SeuHin Government survived the Opposition’s motion of eensure and no-confidence, its majority being the narrow one of 38 votes to 33. While the division was being taken, the Opposition members chanted: “Saved by the Langites." Messrs. J. A. Lyons and J. E. Fenton (ex-Cabinet Ministers), and Messrs. Price, Gabb and Guy voted with the Opposition. Messrs. F. Anstey, Ward, J. A. Beasley, Eldridge and Lazzarini (Lang supporters) and Mr. McGrath remained on the Government . side. The House then adjourned until Tuesday when the Fiduciary Currency Bin will be (introduced 'by the Federal Treasurer, Mr. E. G. Theodore. The fate of this measure already is sealed, /and probably win lead to the downfall of the Government and a double dissolution.

It is many years since the House of Representatives.,was responsible for such a bitter debate as that just closed. It Is revealed that the Labour ranks are hopelessly split. Caucus secrets are being divulged, and personal recrimination is being Indulged in most flagrantly. . Even the recent , High Court appointments are the subject of satirical reference by the warring elements of the divided caucus. There were many bitter Interjections during a speech by Mr. Lyons, which elicited a strong attack from the At-torney-General, Mr. Frank Brennan,

who accused Mr. Lyons of being a traitor to Labour principles, and of airing his own views during Mr. Scullin’s absence, by which he had gained applause unfairly. Mr. Lyons, speaking on the censure motion, said he had explored and studied every aspect of the situation, and could not support the Government’s inflation proposals, which, though they differed from the self-confessed, downright dishonesty of Mr. J. T. Lang’s programme of repudiation, would lead, by clearly converging roadways, to the game lamentable end. "Essentially Inflation.” . The proposed fiduciary issues essentially was currency inflation, and the Government would not be contemplating it if it were in a position to secure, real money by approaching the investing public for a loan. The Government had not dared to do this, because it knew it had forfeited the nation’s confidence when it failed to honour the agreement to balance its Budget. Juggling with currency would not restore public confidence or re-establish the country’s solvency and credit. Real money was needed for this, and real money depended upon confidence and credit. The success of the November loan showed that all the real money needed by the Government was available if the people had faith in the will and capacity of the Government to honour contracts and meet engagements. Public Faith Lost. Not a penny of real money was available to the Government to-day because the people believed that its policy was

leading to eventual national insolvency and ruin.

The latest inflation proposals were likely to hasten the evil day. What was required to redeem the credit and restore the prosperity of Australia was that the nation be led frankly and unfalteringly along the straight course that honesty dictates. Mr. Lyons’s speech was most impassioned. At one stage a former colleague interjected: “Why don’t you resign?” Mr. Lyons curtly replied: “I am prepared to do that if either Mr. Scullin or Mr. Theodore desire to oppose me.” ' Why Fenton Resigned. Mr. Fenton, former Acting-Prime Minister, also speaking in the debate, explained why he had resigned. He said he had protested against the reappointment of Mr. E. G. Theodore, whose position was the same to-day as when he resigned .the Treasurership last year. Mr. Fenton said he felt he had a duty to perform. He had no sympathy with Mr. Lang, but more harm had been done to the country’s credit at home and abroad by the Inclusion of Mr. Theodore in the Ministry ■ than by anything else he knew of. He did not believe in revolutionary methods, but thp temper of the people was nearing breaking point, and many members might find themselves swept away, perhaps not in a constitutional way. Contemptuous Support. The newly-elected ■ member for East Sydney, Mr. E. J. Ward, delivered his maiden speech, and told the Government and the Opposition what he thought of them. He reiterated his adherence to the Lang financial plan, and then njoved that the question be now put. This was carried by 38 votes to 33, and the House divided on the motion of no-confidence, which was negatived by the same majority. . 1 Commenting on the result, Mr. J. G. Latham, Leader of the Opposition, said the Government had, survived in every circumstance of indignity. “A Government which is prepared to accept such contemptuous support, having regard to its original majority of 19, cannot command the respect of any section of the people,” he added. • Theodore in Reply. Replying to criticism earlier in the debate. Mr. Theodore spoke at considerable length. He answered his critics with, a comprehensive survey of finances. He emphasised that the Government’s inability to please was solely due to th? prodigality of former National Governments during a period of prosperity and easy borrowing. At one stage of his speech Mr. Theodore said that rather than default he would prefer that every sovereign should be shipped away to meet commitments. BRUCE TO REAPPEAR Will Contest Former Seat (Rec. March 13, 8 p.m.) Sydney, March 13. Mr. Stanley M. Bruce, ex-Prime Minister, who is visiting Sydney, said he intended to contest his former seat at Flinders, Victoria, in the next election.