AUSTRALIAN CRISIS.

New Zealand Herald, Volume LXIX, Issue 21161, 19 April 1932, Page 9

AUSTRALIAN CRISIS.

PREMIERS' PLAN. TASK of rehabilitation. jVICTOKIAN ATTITUDE. UNEMPLOYMENT EELIEF f\ T 0 LOAN FOE ME. LANG. J3y Telosrrapli—Press Association—Copyright. (Received April IS. 10.45 p.m.) MELBOURNE. April IS. Thi Premiers' Conference to day passed 8 resolution affirming adherence to the Premiers' rehabilitation plan and undertaking to rneet, interest obligations and to continue progressively to reduce the Budget deficits. Mr. T. Tunecliffe, acting Premier of Victoria, dissented. Ho said he refused io be bound by the plan except as to meeting interest obligations which was endorsed by lire Government, ITe considered that there should be a modification of the original plan. The conference decided, in view of Mr. Lang's attitude, to cut off the New South TCales Government's share of loan money for unemployment.

GAENISHEE ACT. STATE'S APPEAL MOTION. ' COURT RESERVES JUDGMENT. (Received April IS. 5.25 p.m.) SYDNEY, April IS. TV High Court has reserved judgment on the application of the New South Wales Government for a certificate of leave to appeal to the Privy Council against, the majority judgment of the Court upholding the validity of the Financial Agreement Enforcement Act. FINANCIAL IMPASSE. NO BANKING FACILITIES. PLIGHT OF NEW SOUTH WALES. SYDNEY, April 18. Owing to the terrible, muddle into which the finances of New South Wales have drifted in consequent of the Commonwealth's " blockade ' and the lack of banking facilities Mr. Lang, as State Treasurer, will have his hands fairly full during the coming week in finding a new wav out of the impasse.

The cheques of the New South Wales Government are being rejected in all parts of the State and bitter complaints are being marie bv those who have any business with the Government. Further Federal action is temporarily held up by an application made to the High Court to-day by Mr. Lang for an injunction to restrain the banks from fulfilling the Commonwealth order of attachment c/ State deposits.

Also there are critical developments which may force drastic action to be taken outside the. ambit of l'ederal activity It is authoritatively "stated that Mr. Lang will default in internal as well as external interest. The climax is expected this week, when the. Privy Council's decision regarding the abolition of the Legislative Council is expected to be given. It is anticipated that this will completely transform the present outlook. Mr. Lang's place at the Premiers' Conference on unemployment at Melbourne is to be filled by Mr. M. Davidson, •Minister of Works.