LABOUR’S VICTORY

Hawera Star, Volume L, 28 October 1930, Page 5

LABOUR’S VICTORY

MR LANG’S BIG MAJORITY

FIFTY-ONE SEATS NOW SURE

UPPER HOUSE POLICY"

United Pi»«* ABwwmtion — By Electric telegraph Oopyriglit.J SYDNEY; Oct. 27. The latest figures indicate that Mr W. J. Rateliffe (Labour) gains the Baxwon seat, Mr A. Lauda (Labour) gains Bondi and Afr W. Hedges' (Country Party) is returned for Monaro. Jit the six still doubtful seats the leaders are: In Ashburnham, Mr T. W. iveast: in Dubbo, Mr A. AlcLelland; in Mui-ray, Mr J. Donovan; in Yaiss, Mr W. M. Webster; in Young, Mr C. Martin. All these are .Labourite®. Mr Henley (Nationalist) is expected hoi retain Burwood. The Tcniore seat, which was at first doubtful, it now appears is retained by Mr H. -Main (Country Party). The Casino seat, which was credited yesterday to Mr E. L. Vincent for the Country Party, is now uncertain, though it is sure to be retained by one of the same party’s five candidates, probably Air J. T. Reid.

The present state of the parties is Labour 51 Nationalist 21 Country Party 12 Doubtful 6

Of 1,195,892 votes counted Labour polled 663,'7&6 and the Nationalists 484,221. Cabinet met and discussed the political situation do-day. It was stated that Air Bavin'would tender his resignation later in the week. The Governor mi]l then summon Air Lang to form a Alinistry. Union, circles are busy discussing the new Government’s policy. It is stated that one of Mr Lang’s first moves will be to swamp the Legislative Council with prominent Labour supporters with a view to the abolition of that chamber, which the party is pledged to secure, as the Upper House at present has more members! than the Assembly. Other circles suggest that the Governor may demur to increasing the number sufficiently for Mr Lang’s purpose.

“HIS PROMISES BELIEVED”' ‘ ‘ Air Lang won a victory with which any leader would be pleased as a mark of popular faith in him,” says the “Herald.” “His promises were believed; he has now to translate them into reality. “It will mot bo disguised for long that Mr Lang’s campaign ha® rendered a difficult situation mere difficult, both in this State and elsewhere in Australia. A party leader who .premised more than he cam fulfil has been voted into power. We believe, with Mr Bavin, that Mr Lang will' -yet have to acknowledge the realities of the situation which have been admitted and faced by all the Australian Governments. ’ There is„ a long, hard way ahead of us back to a state of prosperity. ’ ’ Air Bavin stated: “It will unquestionably be more difficult for the Commonwealth Government and other States to carry out the policy embodied in the resolutions of the Premiers’ conference. I am still hopeful, however, that when the new Government has to face its responsibilities it will see the necessity and wisdom of coming into line with that policy.” The Labour Premier of Victoria, Mr Ilogan, declined l to comment on the result of the election. The leader of tbe South Australian Opposition, Air Butler, said that although the Labour victory was not unexpected it was never anticipated that such a largo majority would express approval of the .policy enunciated by Mr Lang, a policy which, carried into effect, would bring ruination and disaster to Australia. The immediate result of the election would be despondency. “It will certainly make the solution of our financial, economic and unemployment- problems more difficult.” lie added.

ACCENTUATING DIFFICULTIES Mr Bavin said he feared' the results of the elections would, accentuate the State’s economic and financial difficulties and l prolong the .period of recovery, but he and his colleagues would bo only too glad to co-operate in minimising the difficulties of the situation. Mr Lang said that the Labour Party had appealed to the people on the broad question of preservation of Australian ideals. He was confident that the Labour Party would be able to accomplish the big task that had been entrusted to it.

Mr Hill, Premier of South Australia, comments: "I am of the opinion that at the earliest possible moment -after Mr Lang takes office the Australian Loan Council should be called together so that it may be definitely determined whether the plan laid- down by the Premiers and Treasurers of Australia is to be pursued.” The leader of the Opposition, in the Victorian Parliament, Mr Argyfe, said: “I view the result with amazement and horror, amazement that the people of New South -Wales -should pro vie themselves so -ignorant of the real position and horror at the consequences which ilr Lang’s rule must have- on the electors themselves.”

Mr Bavin- had a- private interview with tire Governor. Cabinet meets this morning. It is expected that Mr Bavin ■wild carry on as Premier until the end of th-e week, when he will hand back his commission.

SIR. OTTO NTEiMEYER REPLIES

PREMIERS’ DECISIONS NOT HIS

SYDNEY, Oct.. 27.

Replying to fho criticisms made by Mi- .1. T. Lang and his supporters during the New South Wales election campaign. Sir Otto Niamey or to-night said lie came to Australia- at the invitation of the Commonwealth Government purely as representative of the Bank of England, and such advice as lie had given was based on 25 years’ experience of public finance. The agreement arrivodi at between the amityous Premiers at the Melbourne conference in August was theirs, not his; it was they who published it, not he. “I neither said nor implied Australia must be a hewer of wood and a drawer c.f waiter for other countries,” said Sir Otto, "but I -sa-idi Australian manufactured goods are unlikely to play an effective part in the country’s export trade- for a considerable period.”

Sir Otto added 1 that there never had been any question of the Bank of England taking over Australia’s overdrafts

(in London. “The problem is ho-w to ideal with those overdraft® and short, debts by issues in the. market. The. Bank of England .has no interest, in I Australian finance other than a desire to help in averting a serious financial crisis. ’ ’

STOCK EXCHANGE REACTION

EXTREME CAUTION SHOWN

■SYDNEY, Oct. 27

The election excitement was reflected on the Stock Exchange by lower quotations to-day. There was, however, an absence of anything in the nature of panic selling, while at the lower rates there was a fairly good buying support. The market towards the close showed sign® of steadiness. Operations generally were characterised by the greatest caution. Government loans were neglected, 'but the Australian Bank of Commerce, the Bank of New South Wales and the National Banks suffered heavy reverses. - Sir Otto Niomeyer, who decline® to discuss the elections, had a long interview to-day with the chairman and governor of the Commonwealth Bank, the outcome of which has net been disclosed.

AIR. SCULLIN HAS NO COMMENT POSSIBILITY OF EARLIER RETURN LONDON, Oct. 26. Mr Seullin is at present not prepared to comment on the New South Wales election, nor upon the statement in a Sydney cable to the “Daily Telegraph”: “Air Lang’s presence on the Loan Council will complicate the machinery for fulfilling the Niemeyer agreement. It is believed in some quarters that this will necessitate Mr Seullin expediting his return in preparation for a. Federal election early in the new year, unless while in Loudon he secures a financial compromise.” It is understood! that the question of Air Scullin’® earlier return to Australia. has hitherto not been discussedi.

AITS GIVINGS IN BRITAIN

PUTTING OFF THE EVIL DAY

LONDON, Oct. 217. “After the sorry record 1 of Air Lang’s previous Premiership Ms return to office should 1 occasion misgiving at any time, but it is doubly unfortunate ait the present mdonent,” says “The Times.” “Mr Lang’s campaign against Air Bavin was a campaign against the whole policy of economy. “The Australian electors are likely to find that the putting off of the evil day will only intensify it. For the Federal Alinistry the situation is l delicate and unpleasant, but Mr Seullin’s declaration that the obligation® will be honoured i® the real Australian spirit and makes us share Mr Seullin’s confidence that Australia will win through. ’ ’

“Labour seem® to have won a decisive victory,” says the “News-Chron-icle. ” “At first blush, taking Air Langs somewihnt flamboyant statements ’ at their face value, it seems a rather doubtful setback to the prospects of real financial settlement, but there is in fact no cause for alarm. It. may even be a good thing that, the wilder opponent® of settlement on the only possible basis should be forced by the responsibilities of office to realise wha t the situation really is. There can bo no doubt what the result of the experiment will be. ” The “Daily Mail,” however, says: “ Tim sweeping victory of Labour in New South Wale® is an event of greatest significance and will be received with regret by all Who wish Australia well. Mr Lang has attacked Sir Otto Niemeyer with great viodeniee and in view of the heavy vote his party has secured it will' obviously be a matter of great difficulty to secure the economies necessary if Australia’® financial position is to be rehabilitated. ' Australia’s resource..'! are .immense but they cannot be exploited while wages remain at the present level and industry is burdened! to pay for every kind of Socialistic nostrum.”

EFFECT ON AUSTRALIAN CREDIT

NIEMEYERi REFORMS ENDANGERED LONDON, Oct. 26. “ While- it is l hoped there -will -be' no disposition here to unduly emphasise the influence from Mr Lang’s success it is impossible not to realise th-at the event is the most serious development in the Australian crisis,”- says the financial editor of the ‘ ‘ Morning Post.”

Recalling the valuable effect of the Commonwealth State Governments’ acceptance of th-e Niem-eyer reforms when- Australian securities -had -dropped alarmingly the paper -continues: "Directly after Mr Scullin’s -departure the Scullin Labour extremists commenced am agitation against the' Reforms. Mr Lang during the election campaign ruthlessly attacked the acceptance of the Niemeyer proposals. In- view of his electoral success there is a likelihood of renewed' anxiety here. Despite the result the Scullin Ministry-m,av ,be able to carry through the original resolutions, but th-e mere fact that such a large section of the Australian community has failed to recognise the causes of the present situation, its seriousness and the need for prompt, decisive action, -cann-ot fail disturbingly to -affect Australian credit a-t a 'time when it stands in such need of support.”

WERE ELECTORS WISE?

WHAT THE- NEWSPAPERS SAY

SYDNEY. Oct. 27

The "Herald” says that the Federal Ministers and members of the Federal Parliamentary Labour Party at the caucus meeting set down for to-day will bo faced with the -biggest crisis that has arisen in the ranks of the party for many years. The Labour victory in New South Wales has altered the situation and it is now regarded as certain that the caucus will refuse to endorse the economy proposals- as they .now stand. The difficulties facing -Messrs Fenton and Lyons and the section of. the Cabinet supporting them have been made' more -ticklish and, a. reconstruction of the Cabinet is a distinct possibility. It is understood that the Ministry h-as decided to forego th-e, plan- for cuts in wages and salaries of public servants and will- place a special tax on them.

The ‘‘Evening News” says-: The electors clutched a-t. the promises- made by Mr Lang. Those promise® were and are impossible of fulfilment, but the electors desired to believe they could vote themselves' into ease a-nd happiness. Now will -come the great

awakening. Air Long’s victory will not raise wage® or find job® for unem.pioycd. On the contrary, hi® reckless financial proposals will throw more out or work and reduce wages. Hi® unprecedented majority will induce internecine strife and weaken the .Labour Party in Parliament, and before next winter the disillusioned electors may nave and seize the opportunity to turn upon the man who duped them. The “Melbourne Argus” editorially regrets 1 the result of the New South Wale® election and adds: The dice were heavily loaded against Mr Bavin, who risked 'unpopularity by taking! firm, measure® to fifing New South. Wales more , into 'accord' with the unpleasant facts of the current depression, and' he had to contend against Mr Lang’s long string of prodigal promises, Mr Lang .made a desperate gambler’s throw, based on a shrewd knowledge of human nature. One satisfactory feature of the election is that it emphasised the contempt in which Air Hughes ’ so-called Australian' Party, is held. . , •

Tho “Afclbourbo Age” says it would be folly to minimise the gravity of the dfecisioni of the New South Wales l electors. This decision will damage Australia in many directions and will certainly have many far-reaching repercussions. It may be that another election in 1931 will be necessary to record New South Wales ’ second thoughts.

The- “Sydney Sun” in an editorial say®: The people of New South Wales have aiskcys for the promised orange instead of the promised pill. It now remains for Air Lang to * deliver the orange. As party it ho solution of tho State’s distemper it is the duty of all citizens to assist Mr Lang to gi-ve us that brighter future he promised. Our motto must he “Business a® usual.” i

The official Labour organ, the ‘ ‘Lab; our Daily,” displays on it® front page headings, some of which are: • “We smash calamity howlers,” “State again saves Commonwealth,” ‘ ‘ People decisively reject Niemeyer.” In its editorial the 'paper saysr The. terrible nightmare of Bavinism. has been- removed from' the land. No Government elected! under our wide franchise so flagrantly abused the powers bestowed upon it by a free people a® did the Bavin Government. Every step was purposely designed to strike at the workers. Heavy clouds of misery and depotism have given place to a brighter horizon. There will be very few mourner® at the Governments obsequies, . Air Lang assumes the Premiership with the largest following with which any Australian Labour leader'.has ever faced a Parliament. Doubtless other Australian Premiers will profit by Saturday’s overwhelming Labour victory.

MINERS CELEBRATE VICTORY.

SYDNEY. Oct. 27. Six hundred miners at the Aberdare mine, Cessnock, decided not to work today in order to celebrate the Labour vietory. It is only a few weeks since 150 men were retrenched at this mine owing to slackness of trade.

EFFECT ON STOCK MARKET.

AUCKLAND MAN'S OPINION.

(Bv Telegraph—Press Association.) AUCKLAND, Oct, 27.

A drop of 10 to 15 per cent, in-the value of Australian securities generally was predicted oy Air J. W. Frater, vicechairman of the Auckland Stock Ex-, change, in commenting on the New Soutn Wales election result.. He added: “I do not think New Zealand stocks will «.e affected at all. Investors win be more inclined than ever to uuy New Zealand.’,’ • ~,