POLITICAL CONFUSION.

New Zealand Herald, Volume LXVIII, Issue 20841, 7 April 1931, Page 6

POLITICAL CONFUSION.

[THE AUSTRALIAN TANGLE. LABOUR ifa NEW SOUTH WALES / / ' MR. SCULLIN AND MR. LANG. [from sur own correspondent.] SYDNEY, April 2. The serious nature of the split in Labour ranks in New South Wales is exemplified by tlie fact tW at the next Federal elections, providing things remain as they are, theitj w/ll be two sots of candidates each claiming official endorsement. Labour has always boasted its unity, when the conscription issue rent it asunder many years ago, but now unity seems to have been cast overboard forever. Australia now is told that the Federal executive is in supreme command, and by way of reply the State executive says it cannot, ayd will not, be dictated to by anybody " Very well, says the Federal executive, in effect, \ou don t exist." " Mind your own business," says the State executive, which proceeds to show very positively that it does exist. The object of the Federal executive is to smash the Lang control of the Labour Party in South Wales; hence the ultimatum to all electoral councils, Labour leagues and affiliated unions that they must pledge allegiance to the Federal Labour Party by April .30 or be expelled. The Federal held in Sydney during the week-end, took the view that unity was now impossible and that a new Labour organisation would have to be established in New South Wales. The decision to expell the State executive immediately was made to apply to it as a body. Individual members could Btill remain within the movement by conforming to the Federal policy, which is wholly opposed to the financial arrangements introduced by Mr. Lang. It has been made clear that the 15 Labour members in N ; ew South Wales, who have remained true to Mr. Scullin, will be endorsed at the next election. Previous Events Recalled. r The State executive has decided to fight uncompromisingly the intrusion of the Federal body 'into State Labour affairs. The president, Mr. J. J. Graves, said: By whatever name the new party may become known, it will not seduce the allegiance of one man from Ihe Australian Labour Party. On more than one occasion I have referred to the similarity of the present Labour crisis to what occurred in 1916. In 1914, Mr. Fisher was returned with as tremendous majority as Mr. Scullin was in 1929. Before the Labour Ministry was two years old, M/. Hughes, who succeeded Mr. Fisher, quarrelled with the Labour movement in New South Wales, just as

Messrs. Scullin and Theodore are doing now. But they did not kill it. Mr. / Hughes, with a handful cA followers, founded a party and found a new name for it, just as Mr. Theodore is doing now. Mr. Hughes shunned the Trades Hall and met in sumptuous surroundings, just as Mr. Theodore is doing to-day. / ■ j As opposed to Mr. Lang's repudiation policy, which was declared to be contrary to the Labour policy, the Federal conference adopted the following platform :

—(1) The control of currency, interest 'and exchange /'by a Commonwealth central bank; (2) management of the Commonwealth Bank to be established on lines that will enable that institution to function actiyely and aggressively in competition with private banks, all savings business to be absorbed by arrangement -writh the State Governments; (3) immediate efforts to stimulate industry to absorb unemployment by starting Commonwealth and State public works, the fiduciary currency to finance those works lo be pushed forward determinedly; (4) the Commonwealth Government should obtain authority to control rates of interest, on bank deposits, advances and overdrafts', (5) interest on State and Commonwealth bonds should be taxed for the purpose pf compelling bondholders to contribute a share of national sacrifice; (6) an effective tariff should be continued ; // (7) overseas exchange to be carefully watched and, if necessary, controlled by the Federal Government. Unemployment Problem.

The Prime Minister, realising the importance of the issues, attended the Federal conference in the capacity of a .Victorian delegate. He said that the responsibilities of the States and the Commonwealth with regard to unemployment had been of irfore concern to him than any other question since he had become Prime Minister.' He ( regarded it as the duty of the States to deal with unemployment, the Commonwealth to assist in equalising the .burden. In the case of South .Australia, for instance, greater assistance had been givery/ because the position was worse there than anywhere else. Decisions at Labour cenferences and 6peeches by the Prime Minister do not Bolve Australia's problems. The House of Representatives, after sitting for a whole month, has just gone into recess .without having achieved a single thing. And week by week the deficit mounts. sThe latest estimate was £1,000,000 up.