The Hawera Star. SATURDAY, FEBRUARY 20. 1932 A SHOCK FOR MR LANG.

Hawera Star, Volume LI, 20 February 1932, Page 4

The Hawera Star.

SATURDAY, FEBRUARY 20. 1932 A SHOCK FOR MR LANG.

Delivered every evening by 5 o'olook in Hawera, Manaia, Kaupokonui, Otakeho, Oeo, Pihama, Opuuake, Normanby, Okaiawa, Eltharn, Ngaere, Mangatoki, Kaponga, Awatuna, Te Kiri, Mahoe, Lowgarth, Manutahi Kakaramea, Alton, Hurleyvilte, Patca, Whenuakura, Waverley, Mokoia, Whakamara, Ohangai, Meremere, Fraser Road, and Ararata.

The Federal Government of Australia has decided that the taxpayers of New South Walei must pay their taxes direct to the Commonwealth Government. This news will be received with surprise by Australians in all the States, but it is I safe to assume that Mr Lang will suffer from shock as well as surprise upon [receipt of the information. The BilL |has not yet passed the Federal House, 'but there is every likelihood of it doing so, .judging by the heavy defeat the Beasley faction suffered when they tried to stonewall the measure. This act by the Commonwealth Government lends still greater significance to, the ominous warnings of pending trouble which have been repeated in Australia from time to time during the last few months. Mr Lang has undertaken a huge gamble which he must lose, eventually; happily it appears that he may lose earlier than was anticipated. When he allowed the State to default, the Commonwealth was at first inclined to take no action to assist New South Wales, but it was soon found that default by one State was damaging to the credit of all the States and of the Commonwealth. Consequently the Federal Government revised its ideas and decided not to let overseas bondholders suffer. Mr Lang, with the colossal arrogance which has carried him through many a stormy political and financial sea, banked upon the Commonwealth’s fear of injury to credit and was prepared to carry on as defiantly as ever of the other States. The Federal Government, however, has proved that it has no intention of submitting to further victimisation by the Langites. The Bill it, has introduced proposes to deprive the Government of New South Wales of power to handle its revenue from taxes until its obligations have been discharged. Mr Lang is reported to be obtaining legal advice on the position, but it has been made clear by Mr Latham, Federal Attorney General, that this move against Langism has not been made without thought of the consequences. Mr Latham has declared, in effect, that Mr Lang’s default and 1 defiance were anticipated when the State Premiers’ agreement was drawn up and accordingly “very special power” was conferred on the Commonwealth. It remains to be seen what action the Langites in Sydney will take if they find that they have no legal redress against this Federal measure; judging from the tone of the remarks of one Senator, who said that New South Wales “would not submit to tyranny,” there are prospects of trouble.