FEDERAL CRISIS

Taranaki Daily News, 29 January 1931, Page 5

FEDERAL CRISIS

* CHAOS IN LABOUR CABINET 'RETIREMENT IN DISORDER” MR, S6ULLIN LONELY FIGURE IN PARTY REMAINS BATTLE OVER MR THEODORE By T«J«<r»ph—;Prea» A»sn. —Copyrisht Rec. 8.0 p.m. Canberra, Jan. 28. A Sufi special representative says the Federal Labour Party has retired in disorder from Canberra, leaving its P leader, a lonely, pathetic figure, to survey the wreckage of the Theodore bati tie. ( The correspondent adds that Mr. Scullin has lost all desire to remain in office. He no longer enjoys the Prime Ministership but believes that for the sake of Australia’s credit he should retain office. He is greatly troubled by the. present situation and believes that - if he had made Mr. Lyons Treasurer he would have intensified the breach within the Labour-movement. Both Mr. Lyons and himself would have been forced out of the Government. Mr. Scullin nevertheless is of the opinion that the party, within a few weeks will be more solid than at any time within the piist six months. Mr. j. E. Fenton, interviewed at Melbourne to-day, said he saw no escape from the attitude he had taken. It always had been his opinion that Mr. Theodore should not re-enter the Cabinet until his name had been definitely cleared. “I have made up my mind and shall Announce my decision On Monday to my constituents,” he said, ‘‘but I have no intention of deserting the Labour Party.” When Mr. Lyons was interviewed he gave no direct indication of his intentions, but '■ there is very good reasop for saying that he intends to resign. << He declared: “It is only Australia that counts with me, and when I make a decision it will be from that standpoint.” MR. THEODORE’S INTENTIONS. FORWARD POLICY FOR AUSTRALIA Sydney, Jan. 28. The Her Aid Says that Mr. Fenton has not yet tendered his resignation, Although he has intimated life intention to do so. Efforts are being made to induce him to reconsider his decision. The Pictorial says:,“Riven more hopelessly over Mr. Theodorefe return to the Treasury than by its bitterly divergent liiiancial "views, the Federal Labour Party in orie vast throw to recover prestige and power may now jettison the sadly disillusioned Mr. Scullin arid place the Attorney-General, Mr. Brennan, in the Prime Ministership.” Spea.ki.ng at Canterbury, Mr. Theodore said that, acting with Mr. Beasley and others, he would endeavour to find a definite solution to the present problem. They would propose a plan necessitating action by tne Governments arid those controlling Australia's monetary policy and credits. Some might not agree with it, but it would be an earnest attempt to stop tile rot arid put men back at work. They would take the Advice of the best brains and the Government would stand or fall by trie scheme. Addressing a Sheffield meeting Mr. Theodore declared that, no one appreciated more thin himself the grave difficulties that beset the Prime Minister and Cabinet. One of his first acts as Federal Treasurer would be to call a conference of financiers, bankers and business then to formulate "a forward polity for Australia.” When the Federal Parliament reassembles in March an early opportunity will bh given by the Nationalist and Country Parties to challenge the Ministry upon the re-appoiritment of Mr. Theodoi'e. It is stated that the Opposition protest will take the form of a motion of want of confidence in the Ministry.- ■.