FEDERAL AND STATE GOVERNMENTS.

King Country Chronicle, Volume XXVI, Issue 3445, 19 March 1932, Page 4

FEDERAL AND STATE GOVERNMENTS.

The Commonwealth Government [having passed the Financial Agreements Enforcement Bill, the next thing is for the parent Government to place the bailiffs in" New South Wales. Mr. Lang has sought to forestall the policy of Mr. Lyons, and presented two cheques amounting to over a million pounds of the State funds in two of the Sydney banks. This sum has been lodged in notes in

the State Treasury, with a strong police force on guard. This means that the State of New South Wales is going to do without the services of the banks and cheques, and the money will be doled out in notes. The position is unique, though dangerous. The million pounds is sufficient to pay State wages and salaries for a month, and what is going to happen after that Mr. Lang neither fears nor cares. His action will certainly give him breathing time and he may hope that the High Court of Australia will upset the validity of the Financial Agreements Enforcement Act, but even then it is hard to see whether he will be any better off in the end. Mr. Lang's action is extraordinary and dangerous. The million pounds will soon melt away, and members of the Civil Service will have to go wanting for their salaries and wages. There are likely to be sensational happenings in Australia before Mr. Lang is eliminated from politics. If the Federal Government instals a receiver in the State Treasury Office, I Mr. Lang will most likely throw that official out. What line of action will . then be taken by the Federal Government only time will show. The whole thing might be considered a laughable comedy were it not that so many vital issues are involved with serious consequences not only to New South Wales but the whole of Australia. The situation in New South Wales is reaching ugly proportions. It is reported that Socialists' and antiSocialists' organisations are being trained on more or less military lines, and only a match is required to start a conflagration amongst the opposing factions. It is unfortunate that this social unrest should occur at a time when Australia is facing a serious financial situation.