POSITION FORESEEN.

New Zealand Herald, Volume LXIX, Issue 21112, 20 February 1932, Page 9

POSITION FORESEEN.

PRACTICE OF THE STATE. MR. LATHAM'S ATTACK. BREACHES OF AGREEMENTS. ANGRY LABOUR SENATOR. By Telegraph—Press Association—Copyright. (Received February 19. 11.15 p.m.) CANBERRA. Feb. 10. In explaining the Financial Agreement Enforcement Bill in the House of Representatives to-day Mr. J. G. Latham, Attorney-General and Deputy-Leader of the Government, reviewed the occasions on which Mr. Lang had defaulted. This bill, said Mr. Latham, aimed at enforcing obligations already existing When the financial agreement between the State Premiers was drafted this sort of thing on the part of New South Wales was foreseen. Accordingly very special power was conferred upon the Commonwealth in the bill. The Government of New South Wales had adopted a deliberate policy, or practice, of making agreements where benefit could be obtained and breaking them whenever it suited it to do so. Mr. Latham went on to speak of the seriousness of default. He was subjected to interruptions by the Beaslev faction and the debate was adjourned till Wednesday. In the. Senate, Mr. Arthur Rao (Labour) bitterly attacked the Commonwealth Government. He said New South Wales would not submit much longer to tyranny, but would take positive steps to secede from the Commonwealth. Ho declared that instead of New South Wales living upon the smaller States, as was generally supposed, the smaller States were living upon New South W r ales. COMMENT IN SYDNEY. " NOTORIOUS LANG PLAN." PREMIER CONSULTS LAWYERS. (Received February 20. 12.15 a.m.! SYDNEY. Feb. 10. The Federal Government's action against the Now South Wales Government was the main topic of conversation in Sydney to-day. The Sun, in an editorial article, says: The community wonders whether it is now seeing the real objective of the notorious Lang Plan, which flowered in falsity and seems likely to bear its fruit in destruction and disaster. Mr. Lang declined to comment on the Federal Government's move, but it is understood he is taking legal advice. INSURANCE DEPOSITS. LANG'S BILL FORESTALLED. NEW FEDERAL MEASURE. (Received February 10, 10.45 p.m.) CANBERRA. Feb. 10. The Insurance Deposits Bill, mentioned in the Governor-General's Speech, was introduced in the Senate to-day and read a first time. The measure forestalls Mr. Lang's similar one. It seeks to prohibit State Governments collecting deposits from insurance companies, which must in future pay them to the Federal Treasurer either in cash or in approved money securities. OVERDUE INTEREST. QUESTIONS IN COMMONS. INTERESTS OF INVESTORS. (Received February 19, 0.35 p.m.) LONDON. Feb. 18. In the House of Commons to-day members asked questions relating to New South Wales stock, i Mr. 0. Lewis (Conservative —Colchester, Essex) asked if tho Financial Secretary to the Ireasury, Major W. E. Elliot, was aware that the interest on certain of these securities was in arrears and what steps were being taken to remove them from the Treasury's trustee list or otherwise to warn would-be investors of the risks attending tho holding of such securities? Mr. E. Ramsden (Conservative —Bradford North) asked whether in view of the defaults the Treasury would lay Hie matter before the Ottawa Conference with a view to agreeing to amendments to the Colonial Stock Act. to meet such cases. Another member asked if the Secretary to tho Treasury, under bis powers as defined in the Colonial Stock Act, would obtain funds to pay interest where there had been defaults. Major Elliot, in answering the questions, said: I am glad to say that I understand the necessary funds have now been made available in London. Iri these circumstances the need for action on the part of the Treasury does pot arise. The stocks will remain as before as the interest is paid. MELBOURNE LOAN. BOARD OF WORKS. £BOO,OOO OVER-SUBSCRIBED. MELBOURNE, Feb. 10 The Melbourne and Metropolitan Board of Works loan of £BOO,OOO was over-sub-scribed within 24 hours. The loan of £BOO.OOO for the Melbourne and Metropolitan Board of Works has been floated to provide funds toward the liquidation of a 6' 2 per cent, loan by the board of £1,140,000, which falls due in London on April 1. The rate of interest will be 5£ per cent, and the term will be 14 years. Discussing the proposed loan recently the Melbourne Argus said: An interesting question is how the board proposes to raise the difference between the £BOO,OOO which will be floated in Australia and the £1,140,000 owed in London. It is believed that the board has in hand some money which might bo devoted to this purpose, and that for the balance it will rely upon two of the Australian trading banks, which may be prepared to find temporary accommodation in London up to certain amounts. A much higher amount than the difference of £340.000 must be found, because the £BOO,OOO to be raised iri Australia, after deducting underwriting costs and allowing for exchange, will diminish probably to £634,250 by the time it reaches London. The amount to be found in London, therefore, may be more than £500,000. If the whole of the £1.140.000 had been raised in Australia to repay the loan in London it would have cost £290,700 in exchange.