Evening Post. FRIDAY, MARCH, 27, 1931. DRIFT AND DANGER

Evening Post, Volume CXI, Issue 73, 27 March 1931, Page 8

Evening Post. FRIDAY, MARCH, 27, 1931. DRIFT AND DANGER

Mr. Scullin was reported yesterday to have cabled to Honolulu newspapers denying "wild reports" of ship travellers' tales about Australia being on the Verge of revolution. Australia, which under the so-called leadership of Mr. Scullin has been breaking records almost every day since his return from London two months ago, is surely breaking another when he finds it necessary to send to the obscure Press of a thirdrate foreign town an official denial of "wild reports" of travellers' tales affecting the credit of his country. Travellers' tales have not a high standing for veracity in the opinion of the world. They are classed with dicers' oaths and anglers' boasts and politicians' promises, as things which must not be taken too seriously; and when they have emanated from a steamer's smoking room and been touched by the imagination of an American reporter, a reasonable discount would be a hundred per cent. That a traveller's tale loaded with this special handicap should nevertheless have been deemed worthy of an official denial by the Prime Minister seems more likely to encourage than to check smoke-room gossip about the parlous, condition of the Commonwealth. Disraeli's warning against believing a thing until it is officially contradicted applies with special force to such a case. But for Honolulu Mr. Scullin's denial will have one great advantage over its use nearer home. The best-in-formed of foreign observers cannot be expected to know how utterly the promises and the prophecies of the man whose return was awaited three months ago as that of the saviour of his country have since been discredited. Mr. Scullin's first appearance on a platform after his return was at Ashfield, when he delivered that famous inflation-deflation speech which left friends and foes about evenly divided as to whether it was an inflated deflation or a deflated inflation that he favoured, though one might have expected the presence of his loyal friend "Ted Theodore" at his elbow ought to have told him that it was really inflation —pure and simple. But certain rumours with more substance in them than the smoke-room variety drew from Mr. Scullin a part of his speech which left no room for doubt but makes very strange reading to-day. I want to tell this vast audience, he said, to pay no heed to tho rumours abroad, rumours merely designed to split the Labour Party. It is quite obvious that there are one or two in this hall who are sorry that there is not going to bo a split. Well may the "Bulletin" describe the Commonwealth Prime Minister as "the world's worst prophet." Within a few weeks the party of whose unity he spoke in these confident terms was split into three fiercely warring factions. So wide was the breach on one side that Mr. Scullin was not allowed to address a Federal by-elec-tion meeting in New South Wales, so wide on the other hand that the two best men in his Cabinet —the men who had been loyally carrying on during his absence what was then his own policy—resigned and voted with the Opposition on a no-confid-ence motion. It is to be hoped that the prophecy which he has sent to Honolulu will prove more accurate than the one he addressed to the Parkes electors. It cannot be said that during these two critical months Mr. Scullin has done anything at all to check Australia's steady drift towards disaster, and he has justified his inaction by one of the strangest pleas to which an embarrassed politician ever had recourse. When the Opposition's censure motion was pending, the "Sydney Morning Herald" tried to gel. some information from him regarding the intentions of the Government, but without result. When interviewed', the "Herald" reported, Mr. Scullin said he had nothing oC interest t.o announce, deferring to the no-confidence motion, he ridded: "It. is,not etiquette for a Governmental) make important decisions -while- its lii'c is in danger." A. rule of etiquette which condemned a Government to inaction whenever the' Opposition tabled a hostile motion would be very inconvenient for a Government lhat meant business, but it would be an invaluable protection for one that wanted an excuse for doing nothing. And, as the life of Mr. Scullin's Government has been in danger ever since lie decided to recall Mr. Theodore to the Treasury, this rule of etiquette, as he interprets it, seems wide enough to justify his complete futility during that period. Unfortunately, however, the complete futility of Mr. Scullin has not involved the complete futility of his Government. The rule of etiquette which may justify his own policy of drift has not prevented Mr. Theodore from proceeding with the policy which his leader was supposed to have repudiated in tho Ashfield speech, and ihus in

definitely increasing 1.1k; dangers of drifting by getting up steam and heading Ihe ship straight for the rocks. How Australia's danger htis been increased by Mr. Theodore's speeches on his Fiduciary Currency Bill and liis Commonwealth Bank Bill is proved by the impression which they have made in London. It is apparently I he first of these speeches which is described by the financial editor. of the "Morning Post" as "one of the most serious received from Australia," and editorially the same paper says: — Though the market in Australian securities is demoralised, it docs not mean that tho city takes at their face value Mr. Theodore's references to possible default.. Probably it only need:* n clearly-defined, policy for Australia to secure a, renewal of tho Treasury bills. The city cannot comprehend why Mr. Theodore should make speeches damaging to Australian credit. If the city cannot comprehend Mr. Theodore's speeches, what can it make of Mr. Lang's? The latest news from Sydney shows that if he were in Mr. Theodore's place he would be rushing the ship towards the rocks at a-far faster pace. His jurisdiction is fortunately confined to his own State, but the effect of the announcement which is reported to-day will further increase the liabilities of the Commonwealth, further demoralise Australian securities, and greatly add to the perplexity and alarm in London. Yet even Mr. Lang has not been taking New South Wales fast enough along the road to ruin to please some of his leading supporters. About the beginning of the month the "Sydney Morning Herald" reported: The news that the State Treasury had paid £100,000 as interest to the Commonwealth Bank for transmission to London came as a bombshell to the Trades Hall. Union officials excitedly discussed the payment, which they declared had violated all tho promises made by tho Premier (Mr. Lang). And the "Bulletin" represented these "scandalised democrats" as exclaiming: The crawling capitalistic pimp! He's gorn and turned honest! In a moment of weakness, caused perhaps by the possibilities of the East Sydney election, Mr. Lang had turned honest, but the momentous message which appears in another column shows that the weakness has passed. The Premier, Mr. J. T. Lang, stated that the Government is not meeting the payment of interest due on overseas loans on 31st March. The result of a decision which must be unique in the history of . the Empire will be watched with great anxiety in all parts of it.