GARNISHEE ACT PROTEST

Hawera Star, Volume LI, 30 March 1932, Page 5

GARNISHEE ACT PROTEST

PLEA BY NEW SOUTH WALES

COURT RESERVES DECISION

GRAVE CRISIS POSSIBLE,

ATTACHMENT order, powers.

(United Press Association— By Electric Telegraph Copyright.) MELBOURNE,, March 29. The High Court has reserved judgment' in the case in which the New South Wales Government is seeking a declaration that the Financial Agreement Enforcement Act is ultra vires. Tasmania and Victoria also intervened. Bv the Act the Commonwealth Government took power to seize the revenues of New South Wales for the payment of that State’s defaulted interest. If the High Court upholds the Act the Lang Government will face the gravest financial crisis in its stormy career, says the “Sydney bun. one million pounds for April interest, plus exchange, falls due this week-end, and default in payment is considered inevitable. - The "Sun’s” Canuerra correspondent says that should the Federal Government decide on immediate action it will be possible tO 1 issue an attachment proclamation under the Enforcement Act within an hour or so. of the High Court’s decision. Sufficient Cabinet Ministers are in Melbourne to constitute an Executive Council, over , which Sir. William Irvine as deputy for the Governor-General will preside.

INTEREST ON BONDS

PAYMENT AT NEW YORK

Received 9.50 a.m to-day. NEW YORK, March 29. Interest on New South AVales bonds due on April was received from the Commonwealth Government to-day and transferred to the fiscal agents by the Australian Office.