MR. LANG’S DEFIANCE

Greymouth Evening Star, 12 April 1932, Page 5

MR. LANG’S DEFIANCE

GOVT. TO KEEP FIGHTING

RAILWAYMEN’S SUPPORT

[BY CABLE —PBESS ASSN. —COPYEIGHT.]

(Reed- April 12, 8 a-m-) SYDNEY, April 11. Premier Lang broke his silence, nightBroadcasting from the Trades Hall, 2Ky Station, he dealt, with the circumstances “of the raid on this State by the Commonwealth Government.” He said it was not money the Com monwealth wanted. It was a barefaced attempt to embarrass the Government and remove it from office. He claimed that his Government could win if it» kept on fighting. It certainly was not going to weaken. Accordingly, he urged Labour supporters not to do so. The New South Wales Government had taken up an attitude that it was temporarily unable to meet oversea debts and required a postponement., Mr Willis, the Agent-General, had tried to arrange a postponement, but was unable to do so owing to the Commonwealth’s interference. The Commonwealth was now anxious to take it out of the people’s hideMr Lang contended that Great Britain, France, Belgium and Roumania were not meeting their interest. They had won the war, but the countries which lost the war had obtained a postponement. Mr Lang has instructed the Railways and Tramways’ officials to pay all cash received direct to the State Treasury, not to bank it. The Railway revenue is approximately a'quarter of a,million a week, and the tram revenue is £70,000-

Railway officers of the salaried staff passed resolutions defying the Commonwealth, declaring: “We recognise the State Government as our only master.” MORE FEDERAL INSTRUCTIONS SYDNEY, April 11. About ten o’clock to-day, the Bank of New South Wales, the Commercial Banking Company of Sydney, and three other . banks received instructions from the Commonwealth Gov ernment, requiring them to pay to the iCommonwealth all of the funds of the .New South Wales Government now in their possession, or which were received by them in future. The instruction covers the moneys*received from the motor licenses, the entertainment taxes, and also the State .Lottery, other than the cash required for the prizes. In these circumstances it will be extremely difficult for Mr Lang to operate by cheque or to receive payments by cheque. It is regarded as certain that Mr Lang will direct all of the moneys due to the State of New South Wales, to be paid into the State Treasury. If such is done, no money for cheque purposes would be . available at any of the trading banks specified in the proclamation. Thus, for the moment, the State has, apparently, no other resort than cash payments.

A new proclamation issued to-night by the Commonwealth attaches the New South Wales rail and tram revenue, the totalisator profits, the .bookmakers’ fees and taxes, and the entertainment taxes.

BANKS REFUSE CHEQUES.

CANBERRA, April 12.

Regulations were issued late last night, the object of which is to compel the officers of New South Wales to make available to the Commonwealth all documents relating to any class of revenue which has been specified. If necessary, the Commonwealth may force an entrance to the offices to obtain any documents it might desireA proclamation to bring the Transport Commission under the Financial Enforcement Act, has been issued, with the object of completing the Commonwealth’s powers to seize Bank balances. Upon receipt of the Commonwealth notice, the banks issued instructions that cheques drawn by New South Wales Government on presentation were to be returned to holders marked “Refer to drawer.”

Union officials propose that the Government should institute a system of direct cheques payable at the Treasury, which will mean, they think, the immediate establishment of a State Bank, with headquarters at the Treasury. Thus far, about £50,000 has been collected for the Federal Government by the new taxation authority. It is estimated that £lOO,OOO will be transferred as the result of yesterday’s garnishee of bank funds, previously held by the State. All State Governments were notified by the Premier that no money received should be banked. All amounts are to be held in the State Treasury. The Federal A.L.P., New South Wales branch, issued a statement deploring the Lang Government’s policy of repudiation, and the paralysis of industry.

EARLY ELECTION EXPECTED.

SYDNEY, April 12.

The “Telegraph” says that Mr Lang’s order to all departments to pay revenue direct to the Treasury, came too late to save between £60,000 and £70,000 banked by the Stamp Duties office on Saturday. This now automatically comes into Federal possession. Mr Lang has the best part of £1,250,000 to pay the public service, (but when this is exhausted it is imbosible to see where he will get the money. A month’s wages and salaries would absorb practically the whole Treasury cash, so by the end of April, the public service face the possibility of a “Black Thursday.” Political circles think the Government will have to go to the country. It is said that Mr Lang has prepared his policy speech, and only awaits what he considers a favourable moment for an appeal to the people.

TO PAY TWICE?

SYDNEY, April 12.

The “Herald” says: The State Government is drafting a Bill to compel the taxpayers, who paid their State income tax to the Cbmmonwealth, to pay additional taxation to the New South Wales Government. Such legislation, if submitted to the Legislative Council, would almost certainly be rejected.

/ The State Crown Solicitor has given notice of intention to move the High Court for authority to appeal to the Privy Council from the High Court’s decision that the Enforcement Act is valid.

FEDERAL BUDGET BALANCED.

CANBERRA, April 12.

The revenue figures for the nine months indicate that the Commonwealth will finish the financial year with a balanced budget. The revenue for nine months totalled £48,029,000 and the expenditure £51,513,000, a shortage thus of £3,484,000. Included in the expenditure is £1,796,000 paid on behalf of New South Wales to meet interest payments.

Increased amounts were receivedin March from Customs, sales tax, land tax, and income tax, with the result that the revenue for March was £6,355,000, compared with £4,814,000 in February. The Commonwealth’s own expenditure exceeds revenue by only £ 1,688,000; and the three best yielding months of the year remain.