WAR DEBT INTEREST

Otago Daily Times, Issue 21265, 20 February 1931, Page 9

WAR DEBT INTEREST

SUSPENSION OF PAYMENTS. I ' ' AUSTRALIA’S REQUEST. NOT YET OFFICIALLY LODGED. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, February 18. It is.understood that the British Government is expecting a request for reduction of war debt interest, and some mystification prevails because no communication so far has been received. Moreover, there is increasing reason to think that some concession might be granted, notwithstanding Mr Snowden, who is perhaps sympathetic rather than enthusiastic, because he faces a Budget deficit of £40,000,000 to £50,000,000. _ It is particularly felt that any application for suspension of payments, however temporary, would greatly embarrass the British Government; but there is a genuine desire by the Government, particularly Mr J. H. Thomas, to help Australia. Several more questions about debt application appear on the order paper. Some members are opposed to any reduction. Mr G. H. Mander, who.prominently questioned Mr Thomas yesterday, says that Australia should pay. It is known that Mr Thomas is taking action to prevent derogatory comment, and it is significant that in the House * of Commons yesterday the Speaker intervened when such attitude was expressed. The keenest interest is being taken in the Australian political crisis, particularly in Government quarters. Aus- ' tralia’s most influential friends in politics here consider that Mr Lyons, the man who carried Australia on his shoulders, is entitled to the fullest support.

BRITISH PRESS COMMENT. LONDON, February 19. (Received Feb. 20, at 0.30 a.m.) The financial news says: “ Australian stocks were depressed by renewed declarations that Mr Lang favours a reduction of interest payments. Fortunately the exchange position has not become worse, and if anything the pressure on the outside market has diminished. The rates have lately fallen to within half to one per cent, of the official rates. The Financial Times reviews the circumstances of the Australian war debt. It says: “The idea that the burden of repayment is onerous has been deliberately and maliciously fostered by ex- ! tremists in support of their general campaign for debt repudiation. The outcry against the alleged severity of the terms is belated and based on the most insecure foundation. Overseas liabilities are largely a matter of contract between the Commonwealth or States and the individual investors. In respect to annual interest and sinking fund payments the Imperial Government might be able to lessen Australia’s difficulties, but it must be recognised that should any amelioration prove possible it would needs be on the ground of sympathy, and not as a right.” The editorial concludes: “Other debtor dominions might consider themselves aggrieved by exclusion from similar privileged treatment.”

LABOUR CAUCUS MOTION.

STATE OF NATIONAL EMERGENCY.

SYDNEY, February 19.

Senator Rac has submitted to the Federal Labour caucus a motion that the Government declare a state of national emergency. A decision is expected to-day. GENERAL STRIKE PROPOSAL. MR GARDEN’S AMENDMENTS. SYDNEY, February 19.. Mr,.J. S. Garden’s amendments to the general strike proposal, moved by Mr Chapman, of the New South Wales railways, comprised the appointment of a committee of four to place before the Federal and State Governments immediately the following demands:; —(1) A shorter working week; (2) the restoration of the 10 per cent, reduction in the wages of certain awards recently ordered by the Arbitration Court; (3) assurance that there will be no reduction of old age, infirmity, invalid, or war pensions; (4) provision for food, clothing, and shelter for unemployed workers in accordance with the standard of the harvester judgment. Mr Garden stated that Mr Lang had appealed to him to furnish, a statement of what the workers demanded, and had given his assurance that he intended to see the demands .granted. Mr Garden added that from previous experience he and certain Federal politicians would again procrastinate, so he moved the amendments formally to throw the onus on the Federal Ministry. Personally, he favoured a general strike.

NEW SOUTH WALES ASSEMBLY. GAGGING OF OPPOSITION. SYDNEY, February 19. Mr Bavin, referring to yesterday’s gagging of the Opposition in the Assembly in connection with his censure motion, says that further efforts on the floor of the House will not serve any good purpose in protecting the honour of the State or of averting the disaster which threatens. He intends, therefore, to devote his time and energies to co-operation with other parties and organisations in the State in a wide effort to arouse such a body of public opinion as will compel an early appeal to the people. No other course offers a hope of relief. MR LANG’S MAD COURSE. A POSSIBLE RESULT. SYDNEY, February 19. (Received Feb. 19, at 11 p.m.) In the Legislative Assembly to-day a Nationalist member (Mr M. L. F. Jarvie) directed the Premier’s attention to an editorial in the Sydney Morning Herald, which stated that if Mr Lang persists in his mad course of repudiation and secession there 'is a possibility that- civil war may result. Mr Jarvie asked whether the Premier would take steps to purge the good name of New South Wales. Mr G. Kelly (Lab.) on the same matter, asked whether the Premier would consider the desirability of suppressing newspapers which maligned the Government and prevented members of the House from replying. Mr Lang said that leading articles in a journal which was owned by a millionaire did not disturb him in the slightest. He added : “ This State is in a parlous condition because of Nationalist rule. The railways do not pay, partly because of concessions to newspapers which continue to disparage and defame the Government and the country. We shall in due course take steps to deal with them.” Replying to another question * by Mr Stuart Robertson (Lab.) who said that i another part of the Herald editorial referred to a possible financial revolution and to the fact that farmers in the north

were organising, with a possible call to arras, Mr Lang said that should the Herald or any other newspaper succeed in causing a rebellion members could accept his assurance that “wc are in a position to manage and suppress it. Such propaganda is bound -to recoil on the heads of the authors.”— (Opposition laughter.) He said he was quite aware that steps were being taken by those opposed to Labour to resort to force. An ex-member of the house was one of the organisers. He had also been informed that organisations had already been formed in Victoria and South Australia, and that these people were armed. If an attempt were made to do this the New South Wales Government would not stand idly by, but would certainly deal with them. Sir Thomas Henley; ‘‘Bring out your Communists! ” Mr Lang: I will show them that laws are just as sacred when Labour is in power as when anti-Labour is in office. RESUMPTION OF A LEASE. ALLEGED MALADMINISTRATION. SYDNEY, February 19. The Western Lands Amendment Bill passed the committee stage after a lengthy discussion on the Canally lease. Mr Ball, ex-Minister of Lands, and Mr Stevens, ex-Treasurer, challenged Mr Tully, the present Minister of Lands, who alleged maladministration, to appoint a Royal Commission to inquire into the transaction. In the Assembly, the Minister of Lands (Mr J. Tullv) accused the late Minister of Lands (Mr R. T. Ball) and the Bavin Cabinet of maladministration in connection with the amount paid the Canally Pastoral Association for the resumption of a lease of 30,000 acres. The Minister said that £59,711 was paid, but when the land was subsequently valued the market value was £25,000 less. Mr Ball denied any maladministration. He, as Minister, accepted the Land Board’s valuation. Mr Davidson, Labour member for the district, had represented the area as suitable for closer settlement.

TRADES UNION CONGRESS.

UPROARIOUS SCENES,

SYDNEY", February 19, (Received Feb. 19, at 10 p.m.)

Amid uproarious scenes the congress of the Australian Council of Trades Unions to-day decided to send a delegation to Canberra to demand that the Federal Government should immediately declare “ a state of national emergency.” Messrs Chapman, Douglas, Crofts, Hoare, and Garden comprise the delegation, and they will endeavour to compel the Government to take action along the lines of Mr Garden’s amendments, mainly to prevent the 10 per cent, wage cut. The proposal for a general strike has been temporarily shelved. An extremely ugly situation developed outside , the Congress meeting place, the Sydney Trades Hall, the “ Red ” element chalking,on the footpath inflammatory appeals to precipitate a revolt, and making many unsuccessful attempts to gain Finally the police were compelled to arrest three of the ringleaders.

MR SCULLIN REMAINS SILENT.

REFUSES TO COMMENT. CANBERRA, February 19. (Received Feb. 19, at 11 p.m.) It was learned' to-day that Mr J. A. Lyons, the former postmaster-general and acting-treasurer, is prepared to bring about the downfall of the Scullin Government if it persists with Mr Theodore’s financial plan. Press lobbyists say that ,the pendulum is swinging Mr Lyons’s way, but the rank and file of the Party are in such a hopeless state of confusion that they do not know which way to turn or what to do next. Mr Scullin in the meantime remains silent, and cannot be induced to comment on the outlook. A special meeting of New South Wales Labour members of the Federal Parliament was held to-day, at which it was decided by a large majority to disregard the instruction of the State Labour Executive that they should help in the East Sydney by-eleetion campaign, and embrace Mr Lang’s repudiation policy. The Federal Labour caucus this afternoon carried a motion supporting Mr Theodore’s financial, proposals.