THREAT TO SENATE

Dominion, Volume 24, Issue 145, 16 March 1931, Page 9

THREAT TO SENATE

Fiduciary Currency IF BILL REJECTED Appeal for Abolition SCULLIN ON INFLATION By Telegraph—Press Association —Copyright (Rec. March 15, 5.5 p.m.) Canberra, March 15. It is understood that Federal Labour circles are discussing a scheme under which, if the Senate rejects the Fiduciary Currency Bill, divergent sections of the Labour Party may be induced to rejoin forces and appeal to the people for the abolition of the Senate.

Cable messages between Messrs. Lyons and Fenton and Mr. Scullin while the latter was in England, now disclosed, show that the Prime Minister was indignant with the inflation proposals and the appointmeut of Messrs. Evatt and McTierman to the High Court. He threatened to resign if the appointments were made. Mr. Scullin pointed out that since inflation had been suggested people in London were making an effort to withdraw moneys invested in Australia, fearing losses through depreciated currency. In a further message dealing with a suggestion by the caucus that the holders of maturing bonds should hold them for a further period, Mr. Scullin said he did not approve of the proposal, which was repudiation and dishonest. The caucus resolution demoralised Australian stocks in the London market. WAS NEVER IN DOUBT Canberra, March 14. Mr. Scullin, commenting on the result of the censure motion, said: “It turned out as I expected. I was never in doubt about the numbers at any time, despite the frantic efforts to swing over supporters from the Government side.” 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. RATES OF INTEREST Lang Ministry's Proposals Sydney, March 14. Although the State Ministry’s plan for limiting interest on Government and private borrowings is not yet complete, it is understood that Mr. Lang submitted the following scheme to the Labour caucus:— The rates of interest on Government borrowings to be 3 per cent.; on private borrowings not to exceed 5 per cent; on second and subsequent mortgages not to exceed 6 per cent; interest rates on deposits in banks and other institutions to range from 1} to 3 per cent., but the State Savings Bank to be exempted. The Premier, Mr. Lang, and some of his colleagues consider that this plan will provide plenty of cheap money for industrial enterprises, whereby the unemployed will be absorbed in large numbers. The interest on loans overseas is to be the subject of future negotiations with those concerned. Financial writers declare that the Lang scheme will drive capital to other States, where no such restrictions prevail, and thereby deal a severe blow to New South Wales industry. The Arbitration Bill was gagged through Committee in its final stages. ANGRY LABOURITES Delegate’s Coat Torn Off (Rec. March 15, 5.5 p.m.). Sydney, March 15. The Metropolitan Conference of the Labour -Party decided to recommend the Easter Conference to expel Mr. Theodore for his utterances against the New South Wales Executive and the Labour movement. A total of 125 votes was recorded for the expulsion and none against it. A few delegates did not vote. Other State members of the Federal Parliament who opposed the Lang plan will also be denied endorsement at the next election. The debate was warm at times. One delegate, accused of Interrupting while Mr. Lang was speaking, was surrounded by angry partisans and had his coat tqrn off Ills back.