N.S.W. CRISIS

Grey River Argus, 13 May 1932, Page 5

N.S.W. CRISIS

NEAR AT HAND Lang’s Mortgage Tax £200,000,000 AFFECTED. (Received Alay 12 at 11 p.m.) SYDNEY, Alay 12. The Government Alortgages Taxation Bill was to-day passed by the N.S.W. Assembly. During an acrimonious discussion it; was stated that debentures would come ’ within the purview of mortgages. Thus the Lang Government would levy the tax on at least two hundred million pounds. It W’as further stated that it was estimated that an institution like the Australian Mutual Provident Society, which had mortgages secured on property in New South Wales exceeding ten million pounds, would be called upon to pay the Government one mil lion pounds within fourteen days of the passing of this Act. The Bill is now before the Legislative Council. Its fate is expected to be decided in the early hours to-mor-row There is intense lobbying by the Lang Government supporters to secure a majority in the Council for the Bill Lang’s Taxes Denounced MR LYONS'S STATEMENT. CANBERRA, May 11. Mr Lyons in a statement, declared that he had received information con L-eining the measures introduced in the New South Wales Assembly for the imposition of a tax of 10 per cent, oa ! mortgages, with a provision for vesting ! in the State the whole rights of tJiu ; mortgagee, in the event of non-paj - ment within fourteen days. It is perfectly obvious, said Mr j Lyons, that siich a measure, if passed , into law, would destroy the financial I security, not only of New South I Wales, but the whole of Australia, it ' would bring' speedy and immediate ' ruin in its train. The Cominonwealu» Government has received advice that th© powers of the Commonwealth are w de enough to enable it to defeat this latest attempt by Air Lang to destroy the credit of New South Wales and Australia. The Coi»uiunwealth Government is watching the situation closely, and will not hesitate • immediately to use, its powers to the full to defeat the proposal, which will l,; fraught with’ dire consequences to tho people. Therefore, there is no oceaa ion for aktriu. A full meeting of the Cabinet, has been summoned to consider the position, SYDNEY, .May 12. The “Herald” in a leading article says: Mr Lang’s bill to impose ta>a- | tion upon mortgages, is really nothing ’less than a bill to confiscate all real 1 property, upon failure to pay State'wide capital levy. It is a piece of ' tyranny savagely conceived, but we I believe to be defeated. The public look to the Legislative Council to again. * save thciiL This is an act of war an J pillage by the Lang Government, ’ against not alone property owners, but all private enterprise and industr . It is meant to precipitate a crisis, an 1 that 'it will do. Over ami i beyond the last defences’of justice an-.-fair play, in the State Parliament, the public looks to Federal authority whose active intervention is involved In this struggle, to use every power it possesses, not only to defeat this Langist attempt to overthrow all order and security, but also to drive the wreckers from office. TRANSFER OF MONEYS. REFUSED BY N.S.W. OFFICIALS. SYDNEY, Alay 11. The Federal proclamation requiring the New South Wales Government officials to transfer moneys from specific sources to the Commonwealth, came nto operation to-day, but not on ' 3 penny was received from any State official; It is now believed that the penalty clauses of the Enforcement Act will b© applied. GOLD RESERVE. May 11. The Commonwealth Bank Amendment Bill, read a second time in the Representatives, empowers the Government to transfer the whole' Australian .gold reserve in English sterling. Afr Bruce, Assistant Treasurer, explained that as the Commonwealth Bank Board controlled exichange, it could be relied upon to deal with it in a manner best calculated to maintain the credit of Australia. The measure provided that any profit from the sale of gold and the purchase ot sterling should be‘ transferred to <’ special reserve account, and be avail able for ffertilising exchange, or for the Note Issue Department.