AUSTRALIA'S DESTINY

Hawera Star, Volume L, 20 February 1931, Page 5

AUSTRALIA'S DESTINY

CONFUSED STATE OF LABOUR

THEODORE PLAN APPROVED VOTE OF FEDERAL CAUCUS. 'T T n iUnl Praaa ARMXiai-lon —By Electric Telegraph Copyright.! CANBERR A, Fob. I<>. Lyons, the former Postmaster-General and acting-Treasurer, is prepared to bring about the downfall of the Scullin Government if it persists with Mr. Theodore’s financial plan. Press lobbyists say the pendulum is swinging Mr. Lyons’ way, but the rank and file of the party are in such a hopeless state of confusion that they do not know which way to turn or what to do next.

Mr. Scullin in the meantime remains silent and cannot be induced to comment on the outlook. A special meeting of the New South Wales Federal Labour members was held to-day, at which it was decided by a large majority to disregard the instructions of the State Labour Executive that they should help in the East Sydney by-election campaign, embracing Sir. Lang’s repudiation policy. ~ , A resolution was carried by the I ecleral caucus of the Labour Party to-day approving Mr. Theodore’s financial plan. “This party approves of the Commonwealth Government continuing negotiations with the banks on the lines laid down by the Prime Minister and Mr. Theodore and, in the event of these negotiations failing, the Government is hereby instructed to proceed to secure legislative power to give effect to the party’s platform _ m regard to banking and currency.” The plank aims at the nationalisation of banking. . Tim New South Wales executive ot 'the Australian Labour Party has decided to instruct Air. Theodore to speak in the East Sydney by-election campaign in support of Mr. Lang’s financial policy. It is not expected that he will comply, and a motion for his expulsion from the party may result.

KEEN INTEREST AT HOAIE

WAR! DFJBT PAYMENTS

LONDON, Feb. 19

The “Financial News” says Australian stocks are depressed by the renewed declarations that Mr Lang favours reduction of interest payments. Fortunately tho exchange position has not become worse. If anything, pressure on the outside market lias diminished. Rates have lately fallen to within onelialf to one per cent, of the official The “Financial Times” reviews the circumstances of Australia’s war debt. It says the idea that the (burden of repayment is onerous has been deliberately and maliciously fostered by extremists in support of their general campaign for debt repudiation. The outcry against the alleged severity of the terms is belated and is based oil a most insecure foundation. Overseas liabilities are largely a, matter of contract between the Com.monweaJ.tb or States and the individual investor. In respect of the annual interest and sinking fund payments the Imperial Government might be able to lessen Australia’s difficulties, but it must be recognised that should any amelioration prove possible it would need- be on the ground of sympathy, not right. The editorial concludes: “Other debtor Dominions might consider themselves aggrieved by exclusion from similar privileged treatment.” It is understood that the British Government is expecting a., request for a reduction in war debt interest from Australia and some mystification prevails because no communication has so 'far been received. Moreover, there is increasing reason to think that some concession might be granted notwithstanding Mr Sowden, who is perhaps sympathetic rather than enthusiastic because lie faces a Budget deficit of £40,000,000 to £50,000,000. It is particularly felt that any application for tlie suspension of payments, however, temporary, would greatly embarrass the British Government, but there is. a genuine desire by tho Government, particularly Air J. H. Thomas, to help Australia.

Several mure questions about the debt application appear in tho order paper. Some members of tlie House of Commons are opposed to any reduction. Mr Mniuler, who was prominent in questioning Mr Thomas yesterday, says that Australia should pay. It is known that Air Thomas is taking action to .prevent derogatory comment and it is significant that in the House of Commons yesterday the Speaker intervened when such an attitude was expressed. The keenest interest is being taken in the Australian political crisis. Australia’s most influential friends in polities here consider Air Lyons the man who. carried Australia on his shoulders, is entitled to the fullest support.