MR. LANG'S MISRULE.

New Zealand Herald, Volume LXIX, Issue 21167, 27 April 1932, Page 8

MR. LANG'S MISRULE.

APPROACH OF A CRISIS. new south wales finance* EXTRAORDINARY POSITION. fniOM OUR OWN CORRESPONDENT.] SYDNEY, April IS. The most remarkable feature of the confused position in New South Wales, following the seizure by the Federal Government of practically the whole of the revenue of the State, is the failure of the Premier, Mr. Lang, to take his Cabinet into his confidence. Since the historic proclamation was issued by the Federal Government directing that most of the taxes should be paid to it, there has not been a meeting of the State Cabinet, and its members say that they are as much in the dark as the public as to what the next move by the State will be. It is becoming more and more clear that the hands of Mr. Lang have been completely tied, for so far he ha s not been able to discover any effective coun-ter-move. Had there been a loophole it is certain that Mr. Lang would have found it, for he has over and over again proved himself a past master in tactics. Of course, he may have something up his sleeve, but if that is the case now is the time to reveal it, for his position is becoming desperate. More than that, he is in the difficult position of knowing that an appeal to the people can be of no advantage to him, for were he returned to power it would be a case, simply, of "as you were," with the Federal Government still holding the whip—still playing the tune for him to fiance to. Deprived of Nearly All Taxes. Mr. Lang has been deprived of almost every tax with the exception of that earmarked for the relief of unemployment, and he has been effectively deprived of all banking facilities. According to Constitutional authority, Mr. Lang is committing an illegality in prohibiting the payment of Government funds into the banks, where they are liable to seizure, and on these grounds it is suggested that the Governor would be within his rights if he demanded the return by Mr. Lang of his conimis- ! sion. The Governor would be loth to take such action, and would prefer Mr. Lang to resign if he is unable to carry on.

Meanwhile, reports are current that a so-called "Red Army " pledged to take up arms for the Premier, if called upon to do so, is being mobilised in the city and suburbs. According to a Trades Hall official plans have been made to make returned soldiers with "working class views," the nucleus of the army. At the last meeting of the Trades and Labour Council a resolution was carried instructing shop delegates to forward to the council the names of aJI workers "who were prepared to take their place in the fight that is impending." The idea is to place the organisation at the disposal of the Government "on the industrial or any other field," and organisers expect to enlist 25,000 returned men and 100,000 volunteers recruited from the unions, Labour leagues and socialisation units. The estimate seems to be very much exaggerated and the plans have not caused any consternation.

All parties are now organising for a prospective election which it is anticipated will be held in June at the latest. At the Trades Hall the scramble for seats has set in earnest, antl many Labour men suspected of having leanings to the Premiers' Plan are bound to go overboard. In accordance with Labour's policy of spoils to the victors seats must be found for many men who have battled hard for Mr. Lang, and a general slaughter of the innocents can be expected. A dissolution at any time now will find the United Australia Party under their new leader, Mr. Stevens, ready for an election, with the only issue the full endorsement of the Premiers' Plan. Results of Mr. Lang's Reign. In a statement this week, Mr. Stevens said that Mr. Lang's only policy for the relief of unemployment was public default, and repudiation of debts would react 1 on the whole of Australia. That was why the whole of Australia was engaged in the fight against him. Mr. Lang's misrule had already brought about a position of bankruptcy in New South Wales, and he had to be prevented from bringing about a similar state of affairs as far as the whole of Australia was concerned. Langism was costing New South Wales £1,000,000 a month, and when those debts were funded the State would be called upon to pay £2,000.000 per annum in sinking fund and interest for the next 15 years. Mr, Stevens summarised the results of Mr. Lang's rule as follows: —(1) The closing of the New South Wales Government Savings Bank; (2) an increase in unemployment by 100 per cent. —greater than that of any other (3) a reduction in the average effective wage by 20 per cent, in a little over 12 months; (4) a reduction of 30 per cent, in the volume of bank clearances; (5) a reduction of 25 per cent, in the volume of trade. In the meantime, the finances of the State are becoming mor e muddled than ever. Mr. Lang has repudiated his adherence to the Premiers' Plan, and it is significant that he has not yet released the financial statement for the quarter ended March 31, nor has he issued a statement even for the month for March. It is feared that his deficit has grown beyond even his own expectations.