FEDERAL BY-ELECTION.

New Zealand Herald, Volume LXVIII, Issue 20818, 10 March 1931, Page 9

FEDERAL BY-ELECTION.

VIEWS ON THE RESULT. MR. LANG'S CONFIDENCE. EPOCH-MAKING DECISION. FIGHT TO BE CONTINUED. By Telegraph—Press Association—Copyright. (Received March 9. 9.35 p.m.) SYDNEY, March 9. The Premier of New South Wales, Mr. hang, in an interview on the result of the Sydney East by-election said it would give new hope to Australia. It was the sound Australian spirit on which the policy of the successful candidate, Mr. E. J. Ward, was founded that had gained his (Mr. Lang's) support. When the people of Australia were more fully informed of what the policy of the New South Wales Labour movement meant to Australia they would endorse and support it even nioro heartily than the electors of East Sydney had done. Mr. Ward's victory was an epoch-making ouo for Australia, because it meant that within a few months the entire economic outlook of tho Governments of Australia would be changed. When the poll was declared to-day Mr. Ward said: " The fight for Mr. Lang's proposals is just beginning. We shall carry it right through Australia."

Tho success of Mr. Ward is regarded in Labour circles as a personal triumph for Mr. Lang and a completo vindication of the New South Wales Labour Party's repudiation policy. Supporters of the Federal Treasurer, Mr. Theodore, consider that the expulsion of tho 15 Federal members who luicl defied tho Now South Wales executive is inevitable. Mr. Ward's victory will further strengthen Mr. Lang's position among the leagues and unions. It is considered that the Lang faction will be in complete command of tho forthcoining metropolitan and Easter conferences, which will decide tho fate of Mr. Theodore and his refractory colleagues. Commenting on the result of the byelection. the Prime Minister, Mr. Scullin, said it could not bo regarded as a declaration by tho electors cf East Sydney in favour of repudiation, but rather as a decision registered against tho Nationalist Party, particularly in view of the fact that a censure motion had been moved against the Labour Government and the boast mado that tho downfall of the Government was imminent. Mr. Scullin said he was sure that an overwhelming majority of his supporters who voted for Mr. Ward believed in Australia doing everything possible to honour her obligations. Mr. Theodore said tho result of the byelection did not give a great deal of information to the principal parties concerned. Certainly it did not throw much tight on the solution of Australia's problems.

The Leader of the Federal Opposition, Mr. J. G. Latham, said the figures showed that even in what was regarded as a safe Labour seat the policy of Mr. Lang was strongly opposed by a very large number of tho electors.

In the course of an article on Mr. Lang's policy, written a week ago, Mr. W. A. Ilolman, K.C., formerly Premier of New South Wales, said: —There is justification for genuine alarm. Hitherto thousands of quiet citizens have trusted that the fundamental common sense of Mr. Lang and his colleagues would preserve them from extravagant action, believing that they might promise idiotic things to placate the extremists, without any intention of doing them. It is now evident, however, that Mr. Lang is no longer his own master. Influence has been applied to make him definitely enunciate repudiation as the State policy, coupled with whatever severence may be necessary of our ties to the Commonwealth and the Empire. If he gets any encouragement in East Sydney he will be prepared to repudiate the interest due on the State's debt, and possibly on the State's share of tho Federal debt. While this would do untold damage to Australia as a whole —probably reducing the value of stock now at £BB per £IOO, to something like £7s—it would bring New South Wales to a state of savagery in a few months. This idea of marching away from the Commonwealth and the Empire and starting a free career of our own appeals to the childish minds of the Garden group, just as tho idea of " running away" from parental restrictions might appeal to a boy of seven. A child can imagine that one can escape from all obligations while retaining all privileges; men should know better. In New South Wales all influx of capital would cease. Banking would almost certainly cease, and most of the operations of ordinary business, on which five out of every six workmen rely for employment, would come to a standstill. The Government would have in its hands at first some portion of the money now paid out as interest, but this would rapidly dwindle away amid the prevailing barbarism, and would be swallowed up in coping with greatly increased unemployment. Even if Great Britain and the Commonwealth took no steps to enforce their rights, and we got away with the results of this great steal, the full extent of the disaster would be felt. All further public works would stop, except such as wero done in return for the dole; the amount raisable as taxation would disappear; industry would he paralysed. The mischief is that these things can all be precipitated upon us without a solitary constructive act. Just as any fool with a pound of dynamite and a couple of detonators cou.'l, in a few minutes, lay in ruins a building like the Government Savings Bank, which has taken years of skill and artistic cmitrol to construct, so may a man in Mr. Lang's responsible official position, under the domination of the Moscow-ridden imbeciles who appear to bo controlling him, wreck all tho civilisation which lias been triumphantly erected in New South Wales.

WAR DEBTS QUESTION. CANCELLATION NOT LIKELY. SYDNEY, March 9. The Sydney Morning Herald says the reports to the effect that Australia's war debts to Britain are likely to be cancelled were discounted at Canberra at the weekend. It was stated that there was no possibility of Australia's debts being cancelled, as the question of debts between the Allies would be affected. Jt is understood, however, that _ the Federal Government is hopeful of relief being obtained for Australia by securing a modification or extension of the present terms of repayment.