CASH RUNNING SHORT

Dominion, Volume 25, Issue 169, 13 April 1932, Page 9

CASH RUNNING SHORT

Mr. Lang’s Big Problem HARD TO CARRY ON Election Expected Soon COMMONWEALTH'S POWERS Bv Telegraph—Press Assn. —Copyright. (Roc. April 12, 11 p.m.) Sydney. April 12. The Commonwealth Government having made it very difficult for the State Premier, Mr. J. T. Lang, to finance public utilities much longer, the opinion is generally' shared that an election is inevitable at an early date. Arrangements were made to-day to pay public servants’ salaries on .Thursday and to provide cash sufficient to cover widows’ pensions at the end of the week. The Commonwealth’s intervention has caused great confusion in banking affairs, and cheques from all parts of the State are being returned to the State Treasury marked, “Refer to drawer.” Treasury officials are now drawing up new arrangements for meeting family endowment and widows’ „ pensions and storekeepers’ accounts for food relief. Lottery prizes are being paid in hard cash over the counter, instead of by cheque as heretofore. Mr. Lang will go to Melbourne tonight to attend the Premiers’ Conference, which will primarily discuss measures to relieve unemployment. More Regulations Issued. Regulations were issued at Canberra late last night, the object of which is to compel officers of the New South Wales Government to maty? available to the Commonwealth all documents renting to any class of revenue which has been specified. If necessary, the Commonwealth may force an entrance to offices to obtain any documents it might desire. A proclamation to bring the Transport Commission under the Financial Enforcement Act has been issued with the object of completing the Commonwealth’s powers to seize bank balances. Upon receipt of the Commonwealth notice the banks issuen instructions that cheques drawn by the New South Wales Government on presentation were to be returned to holders marked, “Refer to drawer.” Union officials propose that the Government should institute a system of direct cheques payable at the Treasury, which will mean, they think, the immediate establishment of a State Bank with headquarters at the Treasury. So far about £50,000 has been collected for the Federal Government by the new taxation authority. It is estimated that £lOO,OOO will be transferred as the result of yesterday’s garnishee of bank funds previously held by the State. Payments to State Treasury. All State Government Departments have been notified by the Premier that no money received should be banked. All amounts are to be held in the State Treasury. I Mr. Lang has instructed the railways and tramways officials to pay all cash received direct to the State Treasury, and not to bank it. Railway revenue is approximately a quarter of a million a week and tram revenue £70,000. The railway officers’ salaried staff passed a resolution defying the Commonwealth. “We recognise,” they said, “the State Government as our only masters.” The “Daily Telegraph” says that Mr. Lang’s order to all departments to pay the revenue direct to the Treasury came too late to save between £60,000 and £70,000 banked by the Stamp Duties Office on Saturday. This will now automatically come into Federal possession. v Money for Public Service. Mr. Lang has the best part of £1,250,000 to pay the Public Service, but when this is exhausted it is impossible to see where he will get the money. A month’s wages and salaries would absorb practically the whole Treasury cash, so that by the end of April the Public Service will face the possibility of a “black Thursday.” Political circles think that the Government will have to go to the country. It is said that Mr. Lang has prepared his policy speech and only awaits what he considers a favourable moment for an appeal to the people. The “Sydney Morning Herald” says that the State Government is drafting a Bill to compel taxpayers who paid their State income tax to the Commonwealth to pay additional taxation i to the New South Wales Government Such legislation, if submitted to the Legislative Council, will almost certainly be rejected. The State Crown Solicitor lias given notice of intention to move in the High Court for authority to appeal to the Privy Council from the High Court’s decision that the Enforcement Act is valid. The Federal Australian L’abour Party, New South Wales branch, has issued a statement deploring the Lang Government’s policy of repudiation and paralysis of industry.

ROUSING SEND-OFF Mr. Lang Goes to Melbourne (Rec. April 13. 0.30 a.m.). Sydney, April .12. Five thousand unionists, friends and admirers gave Mr. J. T. Lang a rousing send-off by to-night's train for Melbourne, where he will attend the Premiers’ Conference. They showered him with confetti and also hooted Mr. Moore, Premier of Queensland, who is on route to tlie Conference by the same train. Replying to Mr. Lang's broadcast, of last night, the Prime Minister. Mr. J. A. Lyons, to-day declared that there was not the slightest truth 'in the statement that Great Britain was sidestepping her debts to other nations.

in the British House of Commons Major Elliott. Financial Secretary to tlie Treasury, in answer to a question, said that the Import Advisory Committee had already made recommendations on the tariff, which the Gov eminent was considering rie- internal loam enbli- in-ws appeariiii. in this issue is published by arrtingenieui with lhe Australian Press Association an 1 tlio “Suu." “Herald” News Service Uimlted.