AUSTRALIAN POLITICS.

New Zealand Herald, Volume LXVIII, Issue 20986, 24 September 1931, Page 6

AUSTRALIAN POLITICS.

EABLY FEDERAL ELECTION.] BANKS AND 'labour PARTY. 9 CHALLENGE TO THE SENATE. [from mm own correspondent.] SYDNEY. Sept. 17. The possibility of a Federal election next May. at least six months before it is' actually flue, is now being seriously tli seussed, and Federal Labour is seeking a suitable battle cry. On present indications it seems very likely that Labour will make the nationalisation of banking the main issue. It seems certain that the party would not fight on the Premiers' plan of rehabilitation, for at least half the members are desperately opposed to the plan and no one is more than lukewarm about it. It will he explained to the people that it was a policy that had to be adopted to avert ruin, but only because /the majority in the Senate, and the controllers of the banking system, refused to permit the adoption of a better alternative. The Federal Parliament will expire in October, 1932, if it is permitted to run its full course, but the Government has in mind a general election in May. In any case, half the Senate will hav® to face the electors in May, and it is submitted that the occasion would be suitable for the election, of a new House of Representatives as well. While it i 3 believed that the last has been heard of the fiduciary note issue as such, it is suggested that the Government is contemplating new legislation before Christmas to permit an increase of the note issue as a temporary measure. Mr. Scullin has denied that the Government is preparing a policy of inflation, but his utterances along these lines have been framed with the utmost caution, and it is believed that he has left a loophole in which he could take refuge if the occasion required it. His attitude is bound to depend on the assistance that is forthcoming from the banks. If this does not come up to expectations his party is bound to force some action that will biing the Government up against the Senate again. Should the Government decide to increase the note issue it is almost certain that the Senate woruld not agree unless it had the advice of the chairman of the Commonwealth Bank, Sir Robert GibEon. Therefore it is not at all unlikely that once again he will be called to the Bar of the House during the session ;which was resumed on Tuesday. It is stated that the Government has in mind the introduction of legislation that would bring about important and far- reaching alterations in the banking system generally These would be in the 'direction of nationalisation, and would be a direct challenge to the Senate. An election on this issue would be most appropriate from the Labour Party's point of view.