EXCITED COMMENT

Evening Post, Volume CXIII, Issue 26, 1 February 1932, Page 7

EXCITED COMMENT

SPECULATION IN SYDNEY

WHAT WILL BE OUTCOME _?;

SYDNEY, 31st January. The news from Melbourne that tha Federal Government had refused to assist New South "Wales caused excited comment and speculation as to the outcome. '.

The newspaper remarks that "the crisis now appears so acute that the Governor must exercise his constitutional right to dismiss the Premier and dissolve Parliament. At present the Administration is out of harmony with the people." Mr. Stevens, Deputy Leader of tha Opposition, interviewed, said that obviously Mr. Lang's methods and policy had broken down. He was unable to continue to govern. Mr. Stevens said that a close study of the figures showed that the drift of Treasury funds except the loan fund from, now to the end of the financial year in June would be at the rate of £200,000 a month. . Mr. Buttenshaw, Leader of the State Country Party, said that the people should be given an opportunity to express their opinion on the position which had now arisen. FINANCIER'S OPINION. A leading financier says that default by the State Government would destroy its credit in all departments. The defaulting State Government would be unable to borrow abroad and could not raise internal loans unless it resorted to compulsion. The present crisis, it is pointed out, affects only Government finance. It Is not expected that private credit will be adversely affected. The Stock Exchange closed before the news arrived and overnight reports of a possible crisis had little effect. Four per cent, bonds, 1941, are 2s 6d up at £93 12s 6d; 1947, 2s 6d up at £93 15s; 1953, 7s 6d down at £93. Ten pound bonds, 1955, are 6d up at £0 6a, Other bonds are unchanged.