FEDERAL GOVERNMENT

Evening Star, Issue 20982, 22 December 1931, Page 9

FEDERAL GOVERNMENT

SEQUEL TO THE ELECTION

MR SCULLIN RESIGNS f rtW AwocUtion—By Telegraph—Copyright. MELBOURNE, December 21. • Mr Scullin has tendered his resignation, and has advised the Governor-General to summon Mr Lyons, who will leave Launceston to-morrow for Canberra. HOLIDAY GOMfLICATIONS MR SCULLIN 'ASKED TO ACT TILL AFTER CHRISTMAS. SYDNEY, December 22. [(Received December 22, at 9.30 a.m.) The Governor-General (Sir Isaac Isaacs) has asked Mr Scullin to carry pn until after Christmas. The actual idate of his resignation is not settled. THE NEW HOUSE ESTIMATE OF PARTY SUPPORT SYDNEY, December 21. Including the probable results of several seats which are yet in some doubt, the of the new House of " Representatives is estimated as follows: — —Government Side.— United Australia Party ... 38 Country Party ... 16 • Independent ~.: >.. ;...: 2 Total ... >..; >... >.< _56 —Opposition.— Federal Labour ... ... ... 13 Lang Labour >.. >.< .... 6 Total ; .., >., •...• >., 19 Of the doubtful seats two or three may finally turn out differently from present indications. THE LAST HOUSE '' " i The state of the parties in the last Parliament was:—Federal Labour, 35: Baastey-Socialist Labour, 5; United Australia Party, 23; United Country Party, 11; Independent, 1. NORTHERN TERRITORY SYDNEY, December 21. Mr H. G. Nelson (Federal Labour) ,was re-elected as the Northern Territory representative. SYDNEY STOCK EXCHANGE BURST OF ACTIVITY SYDNEY, December 21. The Stock Exchange to-day reflected the political turnover in a renewed wave of dealings, prices rising markedly all round. Commonwealth issues, banking stocks, and industrial securities all met an active market. Commonwealth short-term fours rose 20s, longer dates 275-6 d and 30s, and Bank of New South Wales shares 12s 6d. The rises at the. first call proved rather too steep, and some • slight declines were noted at noon. Bonds and investments maintained the appreciations. Insurance, gas, and steamship stocks are all firm. The closing quotations for leading stockß were as follow: —Commonwealth fours, 1948, £93 15s (rise 20s); ditto, 1955, £92 7s 6d (rise 22s 6d, but 5s down since noon); ditto, 1961, £92 6s (rise ss); Bank of New South Wales, £3l 17s 6d (rise 10s). Insurances rose 6d all round, and industrials • showed small upward movements. BRITISH PRESS VIEWS LONDON, December 21. The 'News-Chronicle* says: "The . 'Australian elections • were fought on much the same issues as the British elections, and yielded a remarkably similar result. The electors were so terrified by,the spectre of finanoial chaos that they returned virtually a National Government, whose advent will restore public confidence." 'The Times,' in an editorial, says: >" The election was a great triumph for Messrs Lyons and Latham, a disastrous defeat for Mr Scullin, and a repudiation of his evil genius, Mr Theodore. There can be no doubt about the oause. In anxious times Australia felt that it needed a Government that it. could trust. Mr Scullin's reinstatement of Mr Theodore in the Federal Treasurership completely alienated publio confidence, and the country is thoroughly alarmed at Mr,Lang's excesses." All the morning papers feature the ' 'Australian election results, and comment on the rout of the Socialists and the victory of sound finance. . The ' Daily Telegraph ' says: "The Commonwealth will be represented at Ottawa by delegates determined to do their utmost to make the conference a success. The new Government will enjoy a freer hand to make reciprocal

arrangements than any Labour Government could pretend to possess." (Received December 22, at 1 p.m.)' The -' Daily Mail '• hails the election results as a complete triumph for the honesty and political insight of the Australian people. " The electorate clearly gave a mandate for drastic economy and an extension of dominion preference. The voters may be assured that Britain will soou reciprocate." BRITISH FINANCIAL JOURNALS LONDON, December 21.(Received December 22, at 8.45 a.m.) The ' Financial News ' says: " Never perhaps in the world's history has there been so striking a demonstration as .that which Australia has afforded of the crushing effect of political folly upon commercial progress. If Australia can be freed for a decade from selfish and ignorant sectionalism, economic recovery may confidently be expected." The ' Financial Times ' says:; " The result puts out of office, in i'e person of Mr Theodore) one who seemed to seek to promote' inflation and the subversion of the banking machinery to public extravagance. The Premier's plan should now go forward unswervingly to complete restoration.". QUEENSLAND PRESS BRISBANE, December 21. The ' Courier ' comments as follows: " The victory of the Australian National and Country Parties is a complete indication that there has been a swing from Soullinism, Langism, and Communism —the most dangerous elements in Australia's make-up. The real recovery of the Commonwealth will begin with the inauguration of the new Government, In every State where Labour was regarded as invincible it has been condemned except in Queensland. The victory for broadminded, sane Nationalism has been unqualified." The ' World,' the organ of the Fedoral Labour Party, says: " Labour presented a policy which 'the people rejected, and they now await something the nature of which has not yet been indicated. Mr Lyons will be unable to do effective service in the direction of creating employment and stimulating industry unless he resorts to a radical amendment of the private banking sysj tem, which Labour wishes to national- ! ise. The whole world is at present groaning under the burden of an archaic money and credit system. Labour has been defeated on fictitious issues, but it will be recalled when the electorate realises its blunder."AMERICAN JOURNAL'S COMMENT NEW YORK, December 21. The New York ' Times,' in a leader, says: "The defeat of Labour in Australia was not as overwhelming as that in England, but it was sufficiently eraphatio to show that there was a feeling among the steady-going Australian people that Labour could not be counted upon to pull the Commonwealth out of- its difficulties, despite the many good things done by Mr Scullin. The result can hardly fail to stimulate <a recovery in Australia." BRITISH POLITICAL VIEWS GRATIFICATION AT RESULT LONDON. December 21. (Received December 22, at 11 a.m.) The ' Sun-Herald's' correspondent says: "Though obviously there is no official comment, it is certain that Whitehall whole-heartedly welcomes Mr Lyons's triumph. No Australian election was ever watched with keener interest. All parties, including the Liberals—many of whom have lately been converted —look to Ottawa as the beginning of the Empire's salvation, and realise that it is the final chance. Failure would be disastrous. It is agreed that Mr Lyons's victory means that Australia, New Zealand, England, and Canada are forming a united ; front for 'a great . Imperial trade j soheme, to iwhich Britain's long-rango policy will be directed." —, CITY CIRCLES PLEASED LONDON, December 21. (Received December 22, at 10.30 a.m.) The ' Sun-Herald's '■ correspondent says: " Financial circles are very gratified at the result of the election. They expect that it will be reflected in an immediate improvement in credit. The city's distrust of the Labour Government was increased by the tendency of Mr Scullin and Mr Theodore during the campaign to flirt with inflation and the political control of the banking system * >pnd their inability to keep Langism in check. Mr Lyons's victory is sure to create a better sentiment, Following the advance in wool and other commodity prices, it will stimulate the recent small flow of money for investment in Australia. "^ AN INDUSTRIALIST'S COMMENTS LONDON, December 21, (Received December 22, at 10.30 a.m.) . Sir James Lithgow (president of the Federation of British Industries), commenting on the Australian elections, emphasised the opportunity of the new Government. He confidently counts on its co-operation in the, Empire's task at Ottawa of building up a mutually advantageous policy. He said ho hoped that the Lyons Government would create an Australia Committee, similar to the British Government's Empire Committee, to prepare views on ' industry, commerce, and shipping for discussion at Ottawa.

OTTAWA PROSPECTS IMPROVED LONDON, December 21, (Received December 22, at 11.5 a.m.) Mr Lyons's victory is considered a good omen for tho Ottawa Conference, as Britain, Australia* and New Zealand are all assured of long terms of stable government. It is felt in official quarters that the prospect of a far-reaching Empire agreement is now much greater, for Mr Lyons's aims coincide with, thoso of the British Government. While British official quarters like Mr Scullin personally, they undoubtedly feel happier at the prospect of dealing with Mr Lyons's Ministers, because they know that he will receive solid backing home, whereas they might not feel sure that Mr Scullin's unruly followors would always implement his undertakings. LONDON STOCK EXCHANGE LONDON, December 21.(lleceivo'd December 22, at 10.30 a.m.') Strength developed in Australian bonds following the election news. Commonwealth s's (1945-75) advanced 1} points. A DIVIDED PARTY SPLITS CAUSED DEFEAT [Special to the ' Star.'] CHRISTCHURCH, December 21. "In Australia, as in Britain, the Labour Party has suffered as the result of divisions in its own ranks," said the Mayor of Christchureh (Mr D. G. Sullivan, M.P.), commenting on the result of the Australian elections. "In Britain, Mr Ramsay MacDonald and Mr Snowden hived off from the party and became leaders in tho Opposition, and in Australia Mr Lyons and others who had been members of the Scullin Ministry, hived off and joined the Opposition, while the Beasley group, .propagandists of the Lang Plan, also broke away to the left." * There were yet other divisions that had resulted in tho severance of several additional Labourites. Under these circumstances it might have been taken as a foregone conclusion that it was impossible for the Labour Party to win, He went on: " Labour can only succeed when it 3 own ranks are closed, and in such case, even whore it docs not win to the Treasury benches, it must either hold its own or improve its position as is the case in New Zealand." Mr Sullivan said he was very sorry for Mr Scullin, who had had a very, rough road to travel, with financial difficulty on the one hand and divisions in the Labour ranks on the other. He suspected that Mr Scullin would welcome a rest from the heavy burdens of office, -which had weighed him down and broken his health during the past two years. Whoever was selected as Prime Minister, whether Mr Lyons or Mr Bruce, he would find his work made easier by reason of tho measures taken by Mr Scullin to balance the Budget and restore a favourable trade balance.