THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, JULY 21, 1931. CHECK IN A RAKE'S PROGRESS

New Zealand Herald, Volume LXVIII, Issue 20930, 21 July 1931, Page 8

THE New Zealand Herald AND DAILY SOUTHERN CROSS TUESDAY, JULY 21, 1931. CHECK IN A RAKE'S PROGRESS

The shifts of Mr. Lang to keep New South Wales from toeing the line with the other five States may not be at an end, but they cannot much longer avail him. His exchequer is almost empty. Unless he gets financial aid by Thursday ho will bo unable then, it is credibly reported, to pay public service salaries in full and will have .to resort to a rationing of payments. What Mr. Scullin has agreed to do is not likely to assist in averting eventual judgment on Mr. Lang's folly. The measure of help now promised is necessarily conditioned by undertakings of a very drastic sort. Mr. Lang cannot expect to get off with mere promises to honour these undertakings. He has himself made that impossible. His path is littered with dishonoured promises. He got back to power on a policy very plainly announced: higher wages and more prosperous times for everybody, ample loan money, "no repudiation," and a general restoration of confidence* in London's attitude to the State as well as in the State itself, that should dispel the depression "manufactured" by the capitalists and his party's political opponents. ■ Once he was in office again, everything in the garden would be lovely. Was it? Within six months he had increased fourfold the wages levy, repudiated Australian and overseas debt interest, increased unemployment, almost exhausted the State Treasury and utterly broken the State Savings Bank. So much for the promises of his policy speech at the election. Also, he refused to join the Loan Council, although it was the sole reliable source of the loan money he had promised. Later, he signed the Melbourne agreement —and then proceeded to do his best to wreck it. With all allowance forthe shortness of memory that afflicts politicians quite as often as others, Mr. Lang's record for dishonouring his word could not be so quickly forgotten that he would again escape •with a parade of airy assurances that he meant to do the right thing. Mr. Scullin has bound him down very definitely. He has been told plainly that the Commonwealth Government is quite unable to give him financial help and that the Loan Council cannot arrange further accommodation unless the New South Wales Government is prepared to honouf" its interest obligations. "What is promised ' is only temporary accommodation, and its granting by the Commonwealth Bank, subject to the prior approval of members of the Loan Council, is severely conditioned. Mr. Lang has had to agree to submit to his . party the question of rejoining the Loan Council and the question of assuming responsibility for payment of overseas interest. It remains to be seen what his extremist party will say to this, but he is at least committed to present a case for acceptance of Mr. Scullin's terms. On the further stipulation of giving effect in New South Wales to the Melbourne plan, he has had to pledge himself to the introduction of legislation, without delay, 'to bring this about. Thus he is brought sternly back to where he started on his rake's progress. There is full justification for demanding this. All Australia is concerned. The Melbourne agreement was designed to achieve financial recovery by means involving a minimum of hardship. Its success hinged -on unanimity. Federal finance must necessarily be drawn from the States. For one of them, to stand out would be bad' enough. When Mr. Lang repudiated his assent to the plan, and resorted /to panic measures threatening a scheme of taxation ruinous to thousands of I people and fatal to industry, he did j more than withhold New South Wales from co-operation. He cut deeply into the legitimate and essential sources of Federal income. He was not merely bent oh being an outsider; he became, by his own reckless choice, a spoiler, a despoiler, a brigand. Very significant of this was his rejection of the Governor's suggestion of'a conference of all parties in order to review the affairs of the State. Mr. Lang, it will be remembered, had spent much time and energy in making discord. He had picked a quarrel with the Legislative Council, then another with the Governor. He had sent to London, as the State's representative, a Minister with a genius for inflammatory speech, and tried to stir up trouble by this means with the Dominions Office. This was all diabolical fiddling while Rome was burning—mere hustings stuff, to split the ears of the groundlings, with an eye to there being forced on him an appeal to the electors. So the Governor's suggestion of a round-table parley did not suit his book at all. It would silence his thunder, make him bulk less huge in the regard of those sympathising with his plain purpose of fastening Sovietism on Australia and making it a Communists' paradise. He invented spectacular reasons for declining. This was the attitude of a demagogue, not a democrat; but if Mr. Scullin's determination be maintained, a business undertaking should accomplish what a "gentlemen's agreement" is obviously disqualified to do. Should the members of the Loan Council not approve the temporary accommodation, it is probable that Mr. Lang must face an upheaval in the State. If he should fail to get approval by his party, he will still be faced with his empty exchequer. His only immediate relief mugt come by the way' Mr. Scullin has pointed and prepared. Whether this will end his tricks it would be, perhaps, oversanguine to say; but for the time being a measure of restraint has been put upon him.