AUSTRALIA’S PROBLEMS

Evening Star, Issue 20720, 17 February 1931, Page 9

AUSTRALIA’S PROBLEMS

THE FINANCIAL CRISIS LABOUR PARTY SPLIT WIDENING Press Association—By Telegraph—Copyright. SYDNEY, February 16. Mr Theodore yesterday declared that the Lang plan would result in ruin and destruction, and Mr Lang rejoined that there was no merit in the Federal Government’s programme. The Lang supporters are jubilant at the blocking of Mr Theodore's proposals, but the general opinion is growing that the party split is thus becoming serious, and will hasten a General Election. Tho special tax of 3s 6d in tho £ on interest payable by the Federal and State Governments and public bodies is declared to bo “ indefensible on tho grounds of honesty, equity, and expediency.”

A statement by tho Melbourne sharebrokers, Wcro and Sons, says: “The inclusion of interest ou public body loans is a camouflage to obscuro the real fact, which is that tho Government proposes to break its contracts with bondholders, and, in short, to repudiate them. If tho principle is right, why 3s 6d? Why not a tax of 10s or oven 20s in tho £ on such interest, the payment of interest on loans entirely? Any Government expressing sympathy with the small man and persisting in the proposals for such a special tax stands condemned, as it is the rankest hypocrisy.” Several church leaders yesterday condemned Government extravagance as responsible for the country’s present troubles. “Thank God for the banks. They stand between the people and national disaster,” declared tho Rev. Victor Bell, wdien addressing a meeting at tho Lyceum and criticising Mr Theodore’s attempts to secure more money. “Our land is suffering from tho criminal extravagance of tho Governments and the tyranny of trade unions, backed up and stimulated by Communistic ideals. It is a low type of dishonesty that blames the banks for tho depression, when tho politicians know that they themselves have drained these institutions for their own prodigal purposes.” He added; “ There is an equally dishonest intention of inflating currency or repudiating debts. Tho fact is that men cannot trust each other, and in such cases progress is impossible.” NEW SOUTH WALES MR LANG’S NEW SCHEME. SYDNEY, February 16. Tho State Ministry, at Mr Lung’s request, is considering a new scheme under which the New South Wales Government Savings Bank will be converted into a trading bank, to which would be diverted Government revenues amounting to between £40,000,000 and £45,000,000 a year from the Commercial Bank, Sydney, and the Bank of Now South Wales. This is a corollary to the Premier’s now financial proposals for the reduction of interest payments on all New South Wales Government Bonds to 3 per cent.

,» Labour leaders expect the change to Taring support to Sir Lang from both the Federal and State Parties, and they believe that if tho Savings Bank Commissioners raise objections tho Premier lias adequate powers to deal with them, as he did recently with tho Railway Commissioners. GOVERNMENT CONTRACTS CABINET’S DECISION. SYDNEY, February 17. (Received February 17, at 9 a.m.) The Premier (Mr Lang) announced that Cabinet has decided that it shall bo compulsory for those ' undertaking Government contracts to insist that bona fide unionists shall be employed on a basis of fbrty-four hours a week.

STATEMENT DENIED SYDNEY, February 16. Mr Lang to-night declared that there was no truth in the statement published that afternoon in the Press concerning the conversion of tho State Government Savings Bank into a trading bank. He described it as propaganda pure and simple, with tho intention of damaging tho Government and the bank. . EAST SYDNEY BY-ELECTION SYDNEY. February 16. The Federal Executive of the Australian Labour Party, which is sitting in Sydney, decided that the East Sydnew by-election shall bo opened by the Prime Minister, and that tho campaign shall bo fought according to the Federal Labour platform and policy. Tho executive approved of Mr Theodore’s rcadmission to the Federal Cabinet, and instructed tho Government to submit certain demands to the banks to facilitate the operation of Mr Theodore’s financial policy. Failing compliance, the Government is urged to give effect to tho party’s plank — namely, nationalisation of banking. PROTEST MEETING IN SYDNEY RIOTOUS SCENES. SYDNEY, February 16. A widely-advertised meeting in the Sydney Town Hall to-night to protest against the proposals of tho New .South Wales Government for repudiation of national obligations was completely broken up by Communists and others, who bad apparently deliberately organised to that end, distributing themselves in various parts of the huge hall, where tho police were unable Jo deal promptly jvith .them.

Riotous scenes such as have never before been witnessed nearly caused a panic. On several occasions fights occurred in the body of tho hall and on tho platform ’Hie police were kept busy throwing disturbers out. One young man attempted to assist an official to eject a well-known Communist, when he was set upon and punched unmercifully 7. Women screamed and rushed to tho exits, and free fights went on among the audience. The rioters invaded tho platform, counting Mr Bavin out, called for cheers for Mr Lang, and created the utmost pandemonium.

Tho meeting had to be closed long before it had been intended, when only one resolution of protest had actually been carried. This resolution deplored that the name of this State should be officially associated with a policy which was morally disgraceful and financially disastrous. Over 2,000 citizens were present, and tho hundreds who were unable to gain admission regarded themselves as being extremely lucky. AUSTRALIAN WAR DEBT QUESTIONS TO BE ASKED IN COMMONS. LONDON, February 16. (Received February 17, at 10.30 am..) Several questions will be put to Mr Snowden in the House of Commons tomorrow regarding the Australian war debt reduction application. Sir Kingsley Wood is asking whether any statement will be made of tho Government’s intentions, what negotiations are occurring, and the present position?

MR THEODORE INTERVIEWED

REPUDIATION CONDEMNED. SYDNEY, February 17. (Received February 17, at 12.30 p.m.) Mr Theodore, interviewed at Sydney to-day, said: “I cannot hope to restore financial stability while one-filth of our workers are unemployed, or a large proportion is working short time. The problem of getting the unemployed back to productive work is, therefore, the most outstanding matter for solution. If this necessitates balancing tho Government Budgets, reducing interest rates, supplying an increased volume of bank credit for tho primary and secondary industries, let us attend to these things immediately. The responsibility lies with the Governments and thq banks. I believe the Governments will do their part. While the country can meet its just obligations it is sheer lunacy for any Government to rush into repudiation. When a country is driven to make default through uncontrollable circumstances it is usually considered a disaster, but that a Government should, of its own violation, declare that it shall not pay while it still has the means to pay, is an act of ruinous folly. Repudiation will not solve a single Australian problem, but will increase unemployment and destitution through interruption of business and industry.