A TESTING ELECTION

Evening Post, Volume CX, Issue 100, 25 October 1930, Page 8

A TESTING ELECTION

♦ Polling in the New South Wales elections to-day will be watched by the whole Commonwealth, and even by New Zealand, with the keenest interest; for the result must affect Australian financial policy. The Nationalist Premier of the State, Mr. Bavin, is a strong man, who has exercised a powerful influence in framing the measures for stabilising Australian finance. He is now staking the existence of his Government on the maintenance of the Melbourne financial agreement by which the States bound themselves to balance their Budgets and to refrain from borrowing until floating debts are cleared. He promises the electors sanity and safety. Opposed to him is Mr. Lang, the freespending, free-promising, volcanic Labour leadei\ He would break away from the Commonwealth Loan Council and/commit New South Wales to,new loan transactions. His promises have been estimated to entail the borrowing of £200,000,000. Mr. Lang denies the accuracy of this calculation, but claims that he can borrow £50,000,000. To suppose that the electors will be credulous enough to vote for Mr.'.Lang's promises is to charge them with having little common-sense or discernment, but there' is a possibility that voters, without hoping to see the "borrow or bust" policy carried to its extreme, may yet prefer Mr. Lang, and justify their preference with the argument: "When he gets into office he won't do all that, but he'll save our wages and tax the wealthy people." Mr. Lang's difficulty is that in defying Mr. Bavin, the Loan Council, Sir Otto Niemeyer, and all the forces which he may group as "capitalistic" he must also hurl his bolts/at the Federal Labour Party, which is the principal partner in the Melbourne agreement. Such bolts may become boomerangs. In 1927 -Mr. Lang was defeated by a Nationalist Country Party Pact, by a division in the Labour ranks, and by his own extravagant policy. He overstepped the mark; but he has not learnt caution. This time he has ignored all marks or bounds of prudence. Yet his cajolery ■will yet win him a great following of those who fear to .face the hard facts of economy which, Mr. Bavin presents. The importance of the election lies in the test it will afford of Australia's willingness to support drastic economy. If Mr. Bavin is rejected, what will the effect be upon the Federal Labour Government, which is already wavering in carrying out its distasteful task?