SIGNS OF BATTLE

Evening Post, Volume CX, Issue 131, 1 December 1930, Page 10

SIGNS OF BATTLE

SENATE MAY FIGHT

ALL-AUSTRALIA CAMPAIGN

TO DISCOUNT LANGIS3I

Notwithstanding the recent Lang Labour landslide in New South AVales, the Nationalist Senate may yet bo the means of fighting before long an allAustralia election battle on inflation of the currency, compulsory lending by banks, etc. For some years (writes the "Argus") the Commonwealth Bank and the note issue have been controlled by a board cf experts appointed by the Bruce-Page Ministry upon a basis designed to remove, as far as possible, tho dangers of political control. "To guard against the sudden swamping of the board with servile nominees by a party which might gain a fortuitous triumph at the polls it has been provided that members of the board shall retire in rotation. The Sculliu Ministry, in the Central Reserve- Bank Bill which it introduced some months ago, sought to remove this safeguard. Desiring power to dominate the policy of the bank in the interests of Labour, it provided for a board of which the majority would in one way or another owe allegiance to the Ministry. As an entirely new organisation, a Central Beserve Bank, was to be created by the measure, the way would have lain open to the complete sacrifice of the present board and tho appointment of a subservient board with ordters to give effect to Labour policy. "It was proposed to confer upon the new bank the power to issue notes and to control the existing note issue, and the private banks were to bo forced to surrender to it portion of their reserves amounting in the aggregate to £20,000,000 These proposals arc bold enough in themselves, but they assume a new and sinister significance when considered in. conjunction with the projects recently regarded with favour by a majority of the Federal Caucus. Tho "release of credit" to the amount of £20,000,000 to set the unemployed at work and the meeting of maturing loan obligations by a forced loan of £27,000,000, without interest, from the Commonwealth Bank are but two of the proposals which have... received much support in Caucus recently. The latest decision of the Caucus is that the Commonwealth Bank shall be asked to find money for such ambitious projects as a bonus upon gold; the rehabilitation of agricultural industry, particularly wheat growing; the development of various other industries; assistance for cotton and tobacco growing; land settlement; and the carrying out of public works postponed because of the lack of loan money. "The list reads more like'an attempt to outdo Mr. Lang's election programmo than the considered pronouncement of responsible men. How many millions of pouuds would be required to carry out this fantastic programme it is difficult to calculate. According to claims frequently made by wheatgrowers, they would not consider their industry 'rehabilitated' with a return of only 4s a bushel, however welcome such a price might be under present conditions; yet to pay wheatgrowers that , sum now would moan that the taxpayers would have to subsidise current world's prices by more than £20,000,000. This is but one item in the lavish list. Undoubt-! cdly tho strategy of the Caucus is to make the Commonwealth Bank Board's rejection of these insane demands au excuse for a renewed attempt to force j the Central Beserve Bank Bill through Parliament, with the threat of a double dissolution to coerce the Senate into passing the measure. The Senate would be wise to treat these shock tactics with contempt. , "There is not the slightest ground for believing that the Seullin Ministry would return triumphant if it forced a double dissolution. New South AVales is not Australia. The saner political opinion of other States would save tho Senate from being swamped by Labour."