SECESSION MOVEMENT

Greymouth Evening Star, 2 March 1931, Page 5

SECESSION MOVEMENT

AUSTRALIAN AGITATION STATE OF “NEW ENGLAND” , [BY CABLE —PRESS ASSN. —COPYRIGHT.] SYDNEY, March 1. Plans to form a new State, to be named New England, and to set up a Provisional Government, should the

Premier (Mr. Lang), default, were approved by a convention held at Armidale yesterday. Some members of the Federal and ..State legislatures were among those participating. There was a suggestion to hold a referendum before giving the Provisional Executive a free hand. It had few supporters. The meeting affirmed loyalty to the King and the Commonwealth. The mover of this resolution was Mr. Drummond, a member of the N.S.W. Assembly. He said this was to counter any suggestion that the new State movement was a disloyal conspiracy. The decisions are regarded as a personal triumph for Dr. Earle Page (of the Country Parliamentary Party). In the course of a vigorous speech, he declared that if the country’s assets which were secured with loans were not productive, it was not the fault of those who lent Australia the inoney, but of rotten Governments that Australia had had.

FARMERS’ ULTIMATUM

SYDNEY, March 1.

Eight thousand farmers from all quarters of the Riverina district met at Wagga, and unanimously resolved that unless the Federal and State Governments take steps before March 31 to secure a drastic reduction in Government costs and to give relief to the primary'and secondary industries, a referendum will be taken on the Riverina district’s right to control its own affairs, and, if necessary, to secede from the Federation. Addressing the gathering, Mr. Charles Hardy, the leader of this movement for reform, said: —“If by telling the people the truth I am guilty of sedition, and if Mr. ,Lang proposes to prosecute, then prosecute and be damned!” He said that many farmers were “broke,” but added that Riverina men would never stand for repudiation. All they wanted was justice and relief from unfair burdens of higher costs, squeezing them against the nether millstone of reduced income. The Government was to blame, he said, because it was divided into cliques whose intrigues gave rise to various ideas of finance, each more fantastic than the other.

IMPROVED PRICES LONDON, February 28. The “Financial News” says:—“Authorities who are in close connection with trading channels to Australia continue to report improving business in wool, wheat and dairy produce, the prices of which show a distinct tendency to rise.” Australian stocks maintain their firmness. Several have appreciated from one to three points. DEBT CANCELLATION OPPOSED LONDON, February 28. Little encouragement is given from official quarters to Lord Rothermere’s advocacy of the cancellation of Australia’s war debts. Indeed, there is a considerable disposition to regard it as a disservice to Australia, whose misfortune is being made the occasion for newspaper exploitation. Downing Street circles emphasise that even the Commonwealth has never suggested the cancellation of its war debts.

Any attempt in that direction, it is pointed out, involves similar treatment for the other Dominions, and would perhaps re-open the whole fabric of the reparations agreements.

HOMELAND ATTITUDE

LONDON, February 28.

There is a relative lull in the London discussion of Australia’s financial maze. Well-informed circles confess that it is due to bewilderment in trying to follow the political convulsions, and state they have more or less resigned themselves to waiting for Cabinet to disclose its hand in Parliament next week.

On the same ground the proposal for the fiduciary note issue is passed over almost without comment.

It is generally agreed that the fiduciary issue proposal has sounded the death knell of any early alleviation of the exchange position. It is beyond doubt that the outside exchange market has virtually dried up. t

An interesting theory is that this is due to speculators, they being in fear of being caught ‘by sudden developments.

Those arriving in Britain with Australian pounds are finding them -worth only 12/6. Then only the Tourist Agencies are buying them. The decision of South Africa to ban Australian silver currency is probably due to tourists seeking that loophole to avoid exchange. Many Australians are arriving in London, bringing accumulations of British silver coinage. One -woman this week landed with fifty-seven pounds’ worth.

In a leading article, “The Times” refers to “the folly and dishonesty of Mr. Lang’s proposals,” but says: “Happily the credit of New South Wales and of all othei- Governments of Australia, is protected by the joint credit of the whole Commonwealth.”

PRESS COMMENT

LONDON. February 28.

“Mr. Theodore is much a wilier person than Mr. Lang,’’ says the “Man-. Chester Gurdian,” in a leading article. “While denouncing Mr. Lang’s debt repudiation, he has produced finesounding schemes, the adoption of which would ruin creditors’ security. If the currency issue plan is carried out, we expect to see the exchange rate on Australian pounds nearer two hundred than one hundred in a few; months, for the Federal Government will be in the sharpest conflict with the Australian and the British Banks and three States. Somebody must show the Australians that the march to prosperity must be a disciplined one. One admits that they have the right to reverence their standard of living, but there are times when such divinities

have to be ftropitiated from afar.”

“Well-informed circles in the city of London regard the new Commonwealth currency proposal as a political gesture,” says the “Financial Times.” “They are convinced that this policy would not be countenanced either by the banks or by the Senate.” ' The editorial says the “Financial Times” rather inclines to regard Mr. Theodore’s proposals as the last throw in a political gamble. It says the step cannot be compared with the facilities given to some central banks to increase their note issue temporarily beyond the sums justified by their gold reserves. LONDON, March 1. The “Observer” emphasises the baselessness, of the charge that the British Press is unfair to Australia. It points out that the comments were sympathetic, but never minimised the grav-' ity off the Commonwealth crisis and the political aspects. The three-year-plan is hazardous, and the situation drifts, while a dissolution is threatening. Only a National Government, formed with or without a general election, can give the Commonwealth an essential policy of courage, work, economy, and hope, based on an indomitable effort 'of the people, with the continent at its back and the whole world before it. SCULLIN DENIES INFLATION. ‘ ter.' (Recd. March a.m.) CANBERRA, March 2. Mr Scullin stated: “A very grave disservice is being done to the nation, both here and abroad, by those people who, mainly for political reasons, declare that the proposal submitted by the Commonwealth Government to the conference of Commonwealth and State Ministers in Melbourne this week, for a fiduciary issue of currency, is the beginning of a policy of wild inflation. The evils of inflation arise when inflation causes prices to soar, and when this in turn seriously impairs- the purchasing power- of wages and destroys the value of fixed investments. The Government is determined, while it remains in office, that this course shall not be'pursued.”

SITUATION UNCERTAIN.

(Received March 2, 2.10 p.m.) SYDNEY, March 2.

The political situation to-day can only be epitomised as uncertain, but the deliberations of the Federal Labour Caucus at Canberra are expected to clarify the air before evening.

During the week-end. efforts to sink the differences between the warring sections of the Labourites have been unavailing. The state A.L.P. executive has or dered the New South Wales members of the Federal House to ' attend the Caucus. The parties left last evening for the capital. A cleavage is distinctly noticeable in the disposition of the groups, and it is expected that the Caucus will immediately review the attitude of the five New South Wales members supporting the Lang policy. It is believed tha't it has, been determined not to have Mr Beasley in' the Cabinet and besides ex. pelling the members from the party, the Caucus may indicate that all portfolios must be declared vacant- and the Ministry reformed, in which case Mr Theodore’s reinclusion is likely to, be opposed. The Labour daily regards the impasse as lamentable, but says that it is not the fault of the electors, who are popularly supposed to indicate the policy to be followed when they endorse that advocated by party candidates. In this case, the Federal Ministers have taken the in their teeth, and urged politics upon which the Labour supporters were never consulted, and there is a consequent shattering of unity, which raises a crisis threatening the Government’s existI ence.