POLITICAL STRATEGY.

New Zealand Herald, Volume LXIX, Issue 21132, 15 March 1932, Page 9

POLITICAL STRATEGY.

LANG'S LATEST MOVE. NEW SOUTH WALES FUNDS. WITHDRAWAL FROM BANKS. BLOW AT FEDERAL LAW. MR. LYONS' FIRM STAND. By Telegraph—Press Association—Copyright. (Received March 14, 10.15 p.m.) SYDNEY, March 14. Hie Sydney Daily Telegraph says it is suggested that the New South Wales Government withdrew two large sums of money from the Bank of New South Wales and the Commercial Bank of Sydney on Saturday in order to forestall the Financial Agreements Enforcement Bill, passed by the Federal Senate on Friday. If this was the case tho object of the move, no doubt, was to embarrass the Federal Government by attempting to put this money beyond its reach. If anything of the kind has happened, says the paper, in the long run, of course, the taxpayers will have to pay the cost of the fight between the Ccynmonwealth and State Governments. A trifle of £1,150,000, concludes the Telegraph, will not go far in running New South Wales, as it costs the State Government about £50,000,000 a year to carry on, including £8,000,000 for interest payments. The sums withdrawn have been deposited in the State Treasury and the ordinary police guard over the Treasury has been strengthened. Government's Plans not Disclosed. Treasury officials are preserving the utmost secrecy with regard to the withdrawal of the £1,150,000, which sum is more than sufficient to meet the month's salaries and wages. It is presumed that the money represents income-tax, railway and tramway revenue and State lottery receipts. The Government has not disclosed its plans for carrying on without the usual banking facilities and persons handling its cheques are likely to experience inconvenience.

The Prime Minister, Mr. J. A. Lyons, commenting on the action of the State Government, said it Would not in any way prevent the carrying out of the Federal law to compel the State to meet its obligations. The Premier, Mr. Lang, was deluding himself if he thought his action was a means of evading the effective weapon which had been forged by the Commonwealth Government to compel him to meet his undertakings. It would seem that Mr. Lang had sufficient money in the banks after all with which he could have paid the interest due, had he desired to do so. Question of Unemployment. Speaking at "Wollongong, Mr. Lyons said his Government's efforts to restore industry and consequently to remove unemployment had been hampered by the Lang Ministry and the only absolute remedy he saw was an early election in New South .Wales. The Federal Government -would have to consider the use of the credit of the country to enable it to carry out reproductive works and provide for the unemployed. It would be wrong to go back to the old policy of borrowing money to relieve unemployment and rehabilitate Australia. A telegram from Canberra says the Financial Agreements Enforcement Bill and the Financial Agreement (Commonwealth Liability) Bill have received the assent of His Excellency the GovernorGeneral, Sir Isaac Isaacs, and both measures therefore arc now in operation.

Mr. L. F. Jarvie, a Nationalist member of the New South Wales Legislative Assembly, stated on Saturday that just before the banks closed on that day two State Government cheques were presented and cashed in notes. One was for £750,000 with the Bank of New South Wales, and the other for £400,000 with the Commercial Bank of Sydney. The bank authorities admitted that £750,000 was withdrawn by the Government- from the Bank of New South Wales, but they said £250,000 was the sum drawn from tho Commercial Bank of Sydney. Mr. Jarvie maintained that he was informed tho latter amount was £400,000.

DISORDER, FEARED. NEW SOUTH WALES FACTIONS. COMMONWEALTH PRECAUTIONS. (Received March 14, 11.5 p.m.) SYDNEY, March 14. The Canberra correspondent of the World says the Commonwealth Government is taking adequate precautions to deal with any disorder in New South Wales between the Lang forces and the New Guard after the proclamation of the Financial Agreements Enforcement Bill.

A secret investigation has just been finished, says the correspondent, and deep concern is felt- by tho Federal Government. As there is a possibility of a clash occurring between tho rival organisations in Sydney the Commonwealth proposes to swear in special peace officers at a moment's notice should the expected troubles arise.

ME. LYONS' PROBLEM. A DIFFICULT POSITION. " BRINGING LANG TO HEEL." (Received March 14, 10.45 p.m.) LONDON. March 14. The Manchester Guardian says nobody quite knows how long Mr. Lang will be able to hold out against the Commonwealth. A State ii> a difficult thing to coerce. Mr. Lyons cannot afford to allow the finances of New South Wales to bo completely shipwrecked in the process of bringing Mr. Lang to heel, or the whole object of his policy would bo defeated. The controversy has an amusing side, but none the less it is serious, for the soundness of Australia's finance, and perhaps the whole future of the Commonwealth are at stake. % ,