A GAME OF GRAB

Grey River Argus, 15 March 1932, Page 5

A GAME OF GRAB

N.S.W. FUNDS Lang’s Precaution LYONS FORESTALLED. (Aus. & N.Z. Cable Assn). SYDNEY, March 14. Mr Jarvie, a Nationalist mem be i of the State Assembly, declared yesterday that just before the banks closed on Saturday, two State Government cheques were presented and cashed in notes. One wsw for £150,000 with the Bank of New South Wales and the other for £400,000 with the Commercial Bank of Sydney. The Bank authorities admit that £150,000 was withdrawn by the State Government from the Bank of New South Wales, ami £250.000 from the Commercial Bank, through Mr Jarvie maintains he was informed that the later cheque was £400,000. The “Telegraph” says; It is suggested that the x State. Government withdrew the money from the banks to forestall the Carnisbee Bill, passed by the Senate on Friday. If this is the case, the object of the move, no doubt, is to embarrass the Federal Government, by attempting to put the money beyond its reach. If anything of the kind has happened, in the long run, of course the taxpayers will have to pay the cost of the fight between the Commonwealth and the State Government. The “Telegraph” adds: A trifle of £1.150,000 will not go far in running New South Wales. It costs the State Government about fifty millions a year to carry on, including eight, millions for interest payments.

The amount was deposited in the New South Wales Treasury, and the ordinary Treasury police guard has been strengthened. The Prime Minister (Mr Lyons;, commenting on. the action, said it would not in any wav prevent the carrying out of the Federal law to compel the State to meet its obligations. Mr Lang is deluding himself if ho thinks his action is the means or evading the effective weapon that has been forged by the Commonwealth Government, to compel him to meet his undertakings. Mr Lyons added that it would seem that Mr Lang had sufficient money in the banks after all, with which he could have paid the interest had he desired to do so.

Speaking at Wooloongong, Mr Lyons declared that the Government’s efforts to restore industry, and consequently remove unemployment had been hampered by the Lang Ministry, and the only absolute remedy he saw wns an early New South "Wales election. He said that the Government would have to consider the use of the credit of the country to enable it to carry out productive works, and provide for the unemployed. It would bo wrong to go back to the old policy of borrowing money to relieve unemployment and rehabiliate Australia. ENGLISH PRESS UNCERTAINTY. LONDON, March 14. The “Manchester Guardian,” in a leading article, says: “Nobody quite knows how long Mr Lang will be able to hold out against the Commonwealth, for a State is a difficult thing to coerce. Mr Lyons cannot afford to allow the New South Wales finances to be completely shipwrecked in the process of bringing Mr Lang to heel, or the whole object of his policy would be defeated. The controversy has an amusing side, but. none the less it is serious, for the soundness of Australian finance, and perhaps the whole future of the Dominion, are at stake.” USE OF THE MONEY. MAY BE FOR- SALARIES AND WAGES. (Received March 14 at 9 p.m.) SYDNEY, March 14. The Treasury officials are preserving the utmost secrecy with regard to the withdrawal of the £1,150,000, which is more than sufficient to meet a month’s salaries and wages. It is presumed that the money represents income tax, railway and tramway revenue, and lottery receipts. The Government has not disclosed its plans for carrying O n without the usual banking facilities, and persons handling its cheques arc likely to experience inconvenience. BILLS APPROVED. CANBERRA, March 14. The Financial Agreements Enforcement Bill and Financial Agreement Commonwealth Liability Bill, received the assent of His Excellency the Gov-ernor-General. Both measures, therefore are now in operation. NEW GUARD. SYDNEY, March 14. It is officially announced that the State Government will lodge an appeal against the decision of Justice Street, who allowed the appeal of Eric Camobell.