Writ Against New South Wales

Manawatu Times, Volume LV, Issue 6774, 4 February 1932, Page 7

Writ Against New South Wales

To Recover Defaulted Interest IMMEDIATE ACTION BY COMMONWEALTH United Press Association.—By Electric Telegraph.—Copyright. MELBOURNE, Feb. 3. The Prime Minister, Mr Lyons, lias announced that the Commonwealth wottid to-day issue a writ against New South Wales to recover £958,763 due for defaulted overseas interest. The Commonwealth “would take any othor action within its power to compel New South Wales to honour its obligations.” Mr Lang’s moratorium proposals were not discussed by the Loan Council, but the general opinion among members was that Mr Lang had no chance of achieving his object. Mr Lyons described the proposal as “opposed to Australia’s policy and plan of reconstruction.” The Loan Council refused permission to Mr Lang to issuo three million pounds of New South Wales bonds to finance another section of the Sydney city underground railway. Writ Issued Received Wednesday, 9.55 p.m. MELBOURNE, Feb. 3. The Commonwealth Crown Law officers to-day issued a writ against New South Wales in respect of its default. The Commonwealth Government has decided to ask the banks to finance the loan programmes for the remainder of the year, but New South Wales’ share of the money will be retained to pay interest aggrogating £7,000,000, due by tho end of the year which Mr/'Lang is likely to default. N.S.W.’s Stocks Crash NEW YORK, Feb. 2. New South Wales issues crashed on the opening of the bond market this morning. Five per cents. (1957) lost 5J points in the first sales. Taken to Trial Without Delay Received Wednesday, 9.50 p.m. SYDNEY, Feb. 3. The high court writ was issued this afternoon in Sydney against tho State of New South Wales claiming repayment of £213,118, also an account of moneys due under the financial agreement and payment of the cost of exchange between Australia and England or America on moneys payable as interest. The matter will be taken to trial without delay. Lang’s Violent Attack on Bruce Received Wednesday, midnight. SYDNEY, Feb. 3. Mr. Lang, speaking in support of the candidature of Mr. Ward for the East Sydney by-election to-night, discussed the doings of the Loan Council and violently attacked Mr. Bruce, AssistantFederal Treasurer. He declared ho was actually the leader of the Federal Government, not Mr. Lyons. Mr. Bruce had in all good faith urged throwing men out of employment not at the rate say of 20,000 in one batch, but so many this month, and so many next month so as to get them accustomed to unemployment. Mr. Lang said a more monstrous proposal had never been conceived by the leader of any Government. Mr. Bruce’s policy was that the bondholders should be paid their full interest while thousands of peoplo went hungry. It is reliably reported that Mr. Lang will shortly try to enter tho Federal political sphere. Commonwealth Will Pay Interest AND TAKE IT OUT OF N.S.W. Received Thursday, 2 a.hi. Melbourne, Feb. 3. The Prime Minister announces that the Commonwealth Government while admitting ultimate liability for bondholders’ unpaid interest declares that the New South Wales Government must first provide the Commonwealth with the funds necessary to meet aU the liabilities on the public debt of that State. The Commonwealth Government has arranged to pay the interest due to New South Wales bondholders direct instead of the Government of New South Wales. LONDON, Feb. 3. Continued default may alter the trustee status of New South Wales loans according to the Financial News. It is provable the authorities will be requested to remove the loan from the trustee list. The position would then immediately arise whether other New South Wales loans should not be removed at the same time. London agents are taking legal advice regarding what should be done.