AUSTRALIAN CRISIS

Manawatu Standard, Volume LI, Issue 69, 20 February 1931, Page 7

AUSTRALIAN CRISIS

POSITION OF NEW SOUTH WALES

THE KED ELEMENT

MR THEODORE’S FINANCIAL PLAN

There are further developments in the position of the Commonwealth. The Red element in New South Wales is particularly active; there was an extremely ugly situation in Sydney yesterday, when the footpath outside the Trades Hall was chalked with inflammatory appeals to precipitate a revolt, and in the Legislative Assembly Mr J. T. Lang’s attention was directed to a newspaper report predicting the disastrous effect that would result if the State Premier’s policy were proceeded with. Yesterday at Canberra, Mr E. G. Theodore’s financial plan was approved of by the Federal Caucus. It is stated that Mr J. Lyons, former Postmaster-General and acting Treasurer, is prepared to bring about tbe downfall of the Scullin Government if it persists with the Theodore plan.

FEELING IN QUEENSLAND: “BETTER OUT OF FEDERATION.” Received February 20, 10.30 a.m. SYDNEY, Feb. 20. Mr Godfrey Morgan, tlie Queensland Minister of Railways, interviewed at Sydney to-day, said that there was a growing feeling in the North in favour of secession from the Federation.

FUTURE DEVELOPMENTS. REPORT OF ARMED ORGANTSATIONS. SYDNEY. Feb. 19. In the Legislative Assembly to-day a Nationalist member, Mr M. L. Jarvie, directed Mr J. T. Lang’s attention to an editorial in the Sydney Morning Herald, which stated that if Mr Lang “persists in his mad course of repudiation, secession and possibly civil war may result.” - Mr Jarvie asked whether the Premier would tako steps to ptirge the good name of New South Wales.

Mr C. A. Kelly, a Labour member, speaking on the same question, asked whether the Premier would consider the desirability of suppressing newspapers which maligned the Government and members of the House.

In reply, Mr Lang said that leading articles in a journal owned by Mr J. A. Fairfax, the millionaire, did not disturb him in the slightest.

Mr Lang added: “This State is in a parlous condition because of tire Nationalist rule. The railways do not pay. partly because of concessions to newspapers carried on the railways. I intend to look into that aspect, and if the newspapers continue to disparage and defame the Government and country we shall in due course take steps to deal with them.”

Replying to another question put by Mr Stuart Robertson, a Labour member, who said that another part of the Herald editorial referred to the possibility of a financial revolution and to the fact that the farmers in the north were organising for a possible call to arms, Mr Lang said that should the Herald or any other newspaper succeed in causing rebellion, the members could accept his assurance that “we are in a position to manage and suppress it.” “Such propaganda,” he added, “is bound to recoil on the heads of the authors.” - (Opposition laughter). Mr Lang said that he was quite aware that steps were being taken by those opposed to Labour to resort to force. An ex-member of the House was one of the organisers. He also was informed that organisations were already formed in Victoria and South Australia, and that these people were armed.

“We are watching the position closely,” stated Mr Morgan. “It will appear as if Mr Lang’s financial scheme will be given effect to. We would be better off on our own. “The question of secession has been freely discussed by the Queensland Cabinet and though no decision has been reached the constitutional position in the event of secession is being investigated. “Queensland as a State is strenuously opposed to any scheme of repudiation of debts. It is the only State that has attempted to carry out Sir Otto Niemeyer’s recommendations and though the Budget might not be actually balanced this year Queensland’s finances are certainly. in a better ppsition than those of somo of the sister States. “If Mr Lang’s proposals are carried, the sooner we get out the 1 better. We will not have Queensland reduced to the level of New South Wales in the eyes of the world.” THEODORE PLAN. ; APPROVED OF BY CAUCUS. MR LYONS MAY ACT. CANBERRA, Feb. 19. The following resolution was carried by the Federal Caucus to-day approving of Mr Theodore’s financial plan:— “That 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 regarding banking and currency.” This plank aims at the nationalisation of banking. It was learned to-day that Mr J. A. Lyons, former Postmaster-General and acting-Treasurer, is prepared to bring about the downfall of the Scullin Government if it persists with the Theodore financial plan. Press lobbyists say that the pendulum is swinging Mr Lyons’s 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.

Consequently, if an attempt were made to do this, the New South Wales Government would not stand idly by, but would certainly deal with. them. Sir Thomas Henley: Bring out your Communists! Mr Lang: I will show them that the laws are just as sacred when Labour is in power as when anti-Labour is in office.

UPROARIOUS SCENES.

STRIKE TEMPORARILY SHELVED

NEWSPAPER’S INDICTMENT

SYDNEY, Feb. 19. Amid uproarious scenes the Congress of the Australian Council of Trades Unions to-day decided to send a delegation to Canberra to demand that the Federal Government immediately declare a state of national emergency. Messrs Chapman, Douglas, Crofts, Hoaro and J. S. Garden comprise the delegation, and they will endeavour to compel the Government to take action along the lines of the amendments prepared by Mr Garden, mainly to prevent the ten per cent, wage cut. An extremely ugly situation developed outside the Trades Hall, Red element chalking the footpath with inflammatory appeals to precipitate a revolt and making many unsuccessful attempts to gain admission. Finally the police were, compelled to arrest three of the ringleaders. The proposal for a general strike was temporarily shelved by the meeting. The militant section of the Congress had submitted a recommendation for a general strike beginning on February 25. WORKERS’ DEFENCE CORPS. A large number of unemployed met at the Trades Hall to-day and reformed the Workers’ Defence Corps, otherwise the Red Army. Speakers emphasised the need for readiness owing to receipt of information to the effect that the capitalist class were arming to defend their wealthy possessions.

REPLY TO MR LANG,

Received February 20, 11.20 a.m. SYDNEY, Feb. 20. The Herald, replying to Mr .Lang editorially, says:— “There was nothing in the article complained of which could be interpreted as inciting civil war, but it :s true that civil war as a possibility arising out of Mr Lang’s policy of repudiation and implied secession is in the minds of many thoughtful people, who fear that there is a serious risk of it. “The present Labour Government drives the majority of the population of New South Wales to desperation, but if violence comes it will not be due to the majority of honest citizens, who oppose Mr Lang, but through the exacerbated fury of his own followers, who find themselves duped by his promises and foiled in their senseless, selfish, short-sighted purposes. “Just as a collision may be inevitable on a railway through disregarding the signals, so the trend of Mr Lang’s policy is moving the people to an. expression of alarm and definite discussions arising out of their anxiety. This is a fact and we do not need to include in the comment the extremists in the rival camps who would welcome trouble for opportunities of personal aggrandisement and the making of political capital. “At the moment it is enough to say that fear of grave troublo is in men’s minds because secessions in history have been a fruitful cause of domestic conflict. We refuse to believo that the worst will happen if the best elements get together and work harmoniously for the State. “Brazen promises, unfulfilled and never intendod to be fulfilled, have led us into the slough of despond in which we are struggling. The reactions thereto promise safety, not in civil war, but in wholehearted co-operation to make Mr Lang’s continued tenure of office impossible.”,

RELEASE OF COMMUNISTS

DEMAND BY TRADES UNIONS

Received February 20, 11.50 a.m. SYDNEY, Feb. 20. The Australian Council of Trades Unions decided to demand the release of the Communists who were recently imprisoned in connection with an outrage '.on a house at Clovelly; also to protest to the Federal Government in support of the Malay and Japanese divers on the pearling grounds who, desiring to preserve living conditions, would have to face dismissal on Staurday.

LACK OF FAITH

IN FEDERAL LEADERS

REDUCED SALARIES

Received February 20, 11.30 a.m. SYDNEY, Feb. 20. Mr J. S. Garden, addressing the Trade Union Congress, declared that neither he nor Mr Lang had any faith in Mr Scullin, Mr Theodore or their supporters, who were neither bold nor courageous. The time had come for all workers to rally to the banner, which must inevitably strike at the heart of the existing financial machine. Ho felt sure that the present situation was only a lull before a storm, which would be of such a nature as to surprise the world. A delegate from Melbourne exclaimed that the proclaiming of a state of national emergency woujd cause an uprising of the Nationalists, who were ready with arms and ammunition to defend the capitalist class.

OFFER BY JUDGES,

Received February 21, 11 a.m. MELBOURNE, Feb. 20. The State Supreme Court Judges have informed the Premier that they desire to contribute a ten per cent reduction in their salaries toward balancing the Budget. The offer has been accepted.

EFFECTIVE POLICE FORCE. MILITANT COMMUNISTS NOT IN MAJORITY. Per Press Association. AUCKLAND, Feb. 20.' “Any fighting in Australia will be verbal fighting, said a New Zealander, long resident in Sydney, in

commenting on the recent cable messages from Sydney. He expressed, the utmost confidence that sane Labour would have the final say, and the sane Labour supporters had too much property to encourage the communistic faction.

Most of the talk of armed forces referred to the Communists, and some months ago it was rumoured that a large number of the Defence Department rifles had been stolen, but that rumour had been denied by the Government. The number of militant Communists was by comparison very small; the Communists were easily overpowered by tho police when the police chose to break up their demonstrations. LONDON COMMENT. LONDON, Feb. 19. The Financial News says: “Australian stocks are depressed by the renewed declarations that Mr Lang favours a reduction of interest payments. Fortunately the exchange position has not become worse, and if anything the pressure on the outside market is diminished. The rates lately have fallen to within from half to one per cent, of the official rates.” The Financial Times reviews the circumstances of Australia’s war debt. It says: “The idea that tho burden of repayment is onerous has been deliberately and maliciously fostered by the extremists in support of their general campaign for debt repudiation. The outcry against the alleged severity of the terms is belated and based on the most insecure foundation. Overseas liabilities are largely a matter of contract between the Commonwealth or the State and the individual investor. Relief in respect of the annual interest and sinking fund payments to the Imperial Government might be able to lessen Australia’s difficulties, but it must be recognised that, should any amelioration prove possible, it would needs bo on the ground of sympathy, not right.” The editorial concludes that the other debtor Dominions might consider themselves aggrieved by their exclusion from similar privileged treatment. BANKING FIGURES. STRAIN ON RESOURCES. AUSTRALIAN GOVERNMENT FINANCE. An indication of the burden imposed by Government finance on the resources of the banks is afforded ill a compilation of the aggregates of abstracts of liabilities and assets of the trading banks in their Australian business for the December quarter (says a Sydney paper). Taking advances and deposits alone a si'girt improvement in the banking position compared with the September quarter is disclosed, for deposits are £904,652 higher, and advances £1,601,619 lower. By these movements the ratio of advances improved from 98.14 per cent, to 97.20 per cent. But advances must be considered together with Government securities, and, adding the two items, the ratio to deposits is. 105.59 per cent against 105.6 per cent for the previous quarter. An increase of £2,922,435 in Government securities militated against any real improvement. That increase is largely the outcome of the issue to the banks of Commonwealth Government Treasury bills as a means of providing Government accommodation. Whilst Governments absorbed an increased share of the available banking resources the effect was to prevent a relaxing of the stringency in the interests of other of the banks’ customers.

EFFECT OF EXCHANGE ON INTEREST.

It was stated in Ministerial cirelbs recently that in consequence of the increase in the rate of exchange overseas New South Wales’s interest bill on loans due in England has been increased to the extent of about £2,560,000 annually. • ■ The interest bill to be met by the State overseas will now total about £11,000,000 annually.