POSITION IN AUSTRALIA

Otago Daily Times, Issue 21199, 3 December 1930, Page 9

POSITION IN AUSTRALIA

THE CONVERSION LOAN. BEING RAPIDLY TAKEN UP. SUBSCRIPTIONS TO DATE. (United Press Association.) (By Electric Telegraph— Copyright.) ' SYDNEY, December 2. The conversion loan is being rapidly taken up. The subscriptions are now £5,552,920. The conversions were £2,916,880, and the cash subscriptions are now £2,036,040. INFLATION OP CURRENCY. BANK BOARD’S HOSTILITY. MELBOURNE, December 2. Notwithstanding the hostility of members of the Commonwealth Bank Board to plans for the inflation of the currency of the Commonwealth advanced by Federal Ministers at a conference between members of the Ministry and the board, Mr Fenton said the board had agreed to consider various proposals, and a further conference was being held to-day. RELEASE OF CREDITS. CONFERENCE POSTPONED. MELBOURNE, December 2. (Received Dec. 2, at 10 p.m.) The conference between the Federal Cabinet and the board of directors of the Commonwealth Bank on the release of credits, which was advocated by the Australian Council .of Trades Unions, has been postponed indefinitely to enable the bank board thoroughly to investigate the many problems raised by the Federal Ministers yesterday. The board feels that, owing to the delicate and intricate nature of the Labour scheme, it could not hurriedly make a pronouncement. . Most of the Federal Ministers, like the bank board, appreciate the danger of tampering with the currency, the view being held that it would be likely to harass the process of national reconstruction. UPPER HOUSE APPOINTMENTS. MR LANG’S; REQUEST, SYDNEY, December 2. No fewer than 1347 applications have been , received from Labour candidates by the Australian Labour Party’s executive for appointments to the Upper House. Mr Lang will make a selection from these. The Premier is expected to approach the Governor to-day and ask for 40 additional appointments to the Legislative Council. INTERVIEW WITH GOVERNOR. A DEADLOCK RESULTS. SYDNEY, December 2. (Received Dec. 2, at 8 p.m.) Mr Lang had an interview with the Governor (Sir Philip Game) to-day concerning additional appointments to the Legislative Council. A deadlock resulted, and Mr Lang hurried back and immediately moved the adjournment of the Legislative Assembly, refusing to give any reason beyond saying that a-matter of high public importance was involved. Members immediately scented a political crisis and bombarded the Premier with questions. .The adjournment was agreed to on a strictly party division. The press expresses the opinion that Mr Lang’s request for new appointments to the Upper House has been either flatly refused or held in abeyance. It is expected that Mr Lang will take the matter up again with his Excellency. The House rose till to-morrow. THE GOVERNOR’S REFUSAL. CABINET DISCUSSES POSITION. SYDNEY, December 2. (Received Dec. 2, at 11 p.m.) It is understood that Mr Lang asked the Governor to agree to 40 additional appointments to the Upper House and that the request was refused, his Excellency taking the stand that no reasonable argument had been submitted in support of the Premier’s contention that the Government’s policy measures were threatened in that Chamber, and that until such an eventually occurred his Excellency was unable constitutionally or reasonably to accede to so many appointments. The Cabinet discussed the position for two hours’ this afternoon, but the Premier declined to make any statement for publication. The position which now confronts the Lang Ministry is almost identical with what occurred in 1925, when, after considerable negotiation, the then Governor, Sir Dudley de Chair, agreed to the appointment of 25 new members, sufficient to enable the council to be swamped. However, a number of those did not attend when a vital division upon the abolition of the Council was taken, and the Government’s objective failed.

ABOLITION OF COUNCIL. FIRST READINGS OF BILLS. SYDNEY, December 2. (Received Dec. 3, at 1.30 a.m.) In the Legislative Council two Bills relating to the abolition of that chamber were read a first time on the voices, and the second readings will be taken tomorrow. One of the foregoing is designed to repeal the Bavin Government's Act which stipulates that the Upper House shall not be abolished until a referendum of electors is taken. Everything hinges on the vote on these two Bills. In the event of the Council throwing them out or shelving them Mr Lang intends to appeal to the Home authorities to recall the Governor, throwing on him the responsibility for tbe Government’s failure to give effect to its legislative policy. When the debate on the Address-in-Reply in the Assembly is finished no further business will be brought forward pending the outcome of the Upper House impasse.

MR SCULLIN IN LONDON. VISIT TO HOUSE OF COMMONS. LONDON, December 1. (Received Dec. 2, at 8 p.m.) Mr J. H. Scull in (Prime Minister of Australia) visited the House of Commons, where Mr Ramsay MacDonald and tile Ministers hade him farewell. FEDERAL POLITICS. ELECTION LIKELY NEXT YEAR. (From Ock Own Correspondent.) SYDNEY, November 24. There is a growing feeling in Federal political circles that a double dissolution—House of Representatives and the Senate—will come about without any, real opposition to the Labour programme by the parties opposed to Labour and that a general election will take .place

in May or June of next year. By that time it is thought the split in the Labour Party will be very definite in character, with the Prime Minister (Mr Scullin) leading the moderate Labour representatives. Already it is stated that the Nationalists are devising a policy under which they will not oppose the While there is no suggestion of a coalition between moderate Labour and the Nationalists, it is known that the Nationalists will not lose an opportunity of securing the defeat o£ v the extremists, whose financial policy, they agree with Mr Scullin, is fraught with the utmost danger to the Commonwealth.

According to the present mind of the various Labour leagues, it would be impossible for many of the moderates to secure selection, or the right to contest in Labour’s interests the seats they now hold. The majority of the leagues seem to be extremist in their views, and, that being so, Mr Scullin and his friends would fare badly at their .hands, and if a moderate persisted in standing without the official endorsement, such is the power of the “ machine ” that he would be put on the Labour scrap heap like many a good man before him. When the Labour caucus meets tomorrow Ministers will be expected to present a report setting out which of the many works suggested for the relief of the unemployed can be proceeded with provided the necessary money can be secured from the Commonwealth Bank. Whether anything practical can be done will not be known until after the conference between the bank hoard and the Cabinet bn December 1, Should Ministers be informed at that conference that the bank is unable to provide the required assistance another deadlock will have been reached. The resolution agreed to by the caucus last week stipulated that Parliament should remain in session until work and sustenance to relieve the unemployed had been provided for, but even those members who sponsored this motion realise that unless the Commonwealth Bank agrees voluntarily to make money available immediately, which is most unlikely, nothing can be done until the banking legislation is amended.

The Senate, with its anti-Labour macan prevent the passage of any amending banking legislation to which it is opposed. By refusing also to agree to the validation of all Customs tariff resolutions, introduced by the present Government, the Senate can prevent the prorogation of Parliament and the opening of a new session, which is necessary before Bills rejected this session can be introduced and rejected a second time. This would give Labour grounds for obtaining a double dissolution and an appeal to the country. It would appear, therefore, that the Government will be unable to carry out any of the demands of the caucus for financial reforms this year, and that the real crisis in Federal affairs will have to wait until the return of Mr Scullin and other Ministers from abroad. Although the House of Representatives has been in session for - nearly three weeks at a great,daily cost, be it said, it has not passed a single piece of legislation, the whole of the time having been devoted to a discussion of financial matters, without any decision having been reached. This week the House will be called upon to consider some of the financial legislation.