THE DEFAULTING STATE

Otago Daily Times, Issue 21627, 23 April 1932, Page 11

THE DEFAULTING STATE

MR LANG’S APPLICATIONS HIGH COURT REFUSES BOTH (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, April 22. The High Court refused both of Mr Lang’s applications. On Tuesday the Higli Court reserved its decision on the second application by the New South Wales Government to restrain the banks from complying with the Commonwealth order to pay over all State money held by the banks to the Commonwealth. The other application to the High Court was for leave to appeal to the Privy Council against the majority judgment of the High Court upholding the validity of the Financial Agreement Enforcement Act. STATE FACING A CRISIS. NO BANKING FACILITIES. SYDNEY, April 22. 1 (Received April 22, at 8 p.m.) Only Mr Justice Evatt favoured the New South Wales Government’s application for leave to appeal to the Privy Council against the High Court’s decision that the Federal Agreement Enforcement Act was valid.

On the application to restrain the banks from paying State moneys to the Commonwealth, the Chief Justice and Mr Justice Evatt favoured upholding it, but Mr Justice Stark, Mr Justice Rich, Mr Justice Dixon, and Mr Justice M'Tiernan opposed it. The High Court’s refusal to order the restoration of banking facilities for the State Government brings the Lang Administration face to face with an immediate crisis as the Governor may ask the Premier to carry out the provisions of the Audit Act, and Mr Lang may ask that the position be left as it is until he can consult Parliament next week. In the meantime no endowment payments are being made, and there is a possibility that the department may be closed, affecting 450 permanent and temporary employees. STATE TO PAY COSTS. SYDNEY, April 22. (Received April 23, at 0.5 a.m.) The High Court ordered the State Government to pay costs in connection with Mr Lang’s application. NET CLOSING ON MR LANG. SYDNEY, April 22. (Received April 23, at 0.30 a.m.) The Prime Minister (Mr J. A. Lyons), commenting on the High Court decision, said: “The Federal Government is now pushing ahead with its policy of compelling Mr Lang to meet his obligations. It will first compel him to make available the income tax files, which have so far been inaccessible.”