CABINET WRECK

Taranaki Daily News, 30 January 1931, Page 7

CABINET WRECK

‘‘CRISIS IS INEVITABLE” TWO MINISTERS RESIGNING THIRD LIKELY TO FOLLOW RETURN OF MR. THEODORE /' INTENSE PUBLIC FEELING By Telegraph—Press Assn.— Copyright. Rec. 11.30 p.m. Sydney, Jan. 29. Messrs J. E. Fenton, Minister of Customs. and J. A. Lyons, Postmaster-General, announced to-day that they would definitely resign from the Cabinet on Tuesday as a result of the reinstatement of Mr. E. G. Theodore. Mr. F. Anstey, Minister of Health, may also resign. A Federal crisis is inevitable. Mr. Theodore left Sydney by aeroplane for Melbourne to-day, presumably to have 3 conference with the Prime Minister, Mr. J. H. Scullin. The Press throughout Australia is assailing Mr. Scullin in the bitterest fashion for sponsoring Mr. Theodore’s reinstatement and public indignation is intense.

REINSTATEMENT HOTLY OPPOSED.

STATE LABOUR CIRCLES MOVING.

Sydney, Jan. 29. A. strong move is being made in State Labour circles to have the re-appoint-ment of Mr. E. G. Theodore to Cabinet reveiwed, says the Herald. It is reported at Canberra, however, that Mr. Scullin does not intend to call another meeting of the Federal caucus until the end of February, by which time Mr. Theodore’s supporters believe that the Treasurer will have consolidated hip position. The re-instatement of Mr. Theodore is being attacked by the Nationalist leaders % the Parkes by-electipn campaign. The leader of the State Opposition, Mr. T. R. Bavin, declared that the Theodore appointment was a disgrace and brought discredit on Australia. Even oij the score of ability the appointment could, riot be excused. Mr. Theodore’s record in Queensland was one of colossal failures.

The deputy-leader of the Federal Opposition, Mr. Gullett, said. Mr. Scullin would be. remembered for his feebleness in a time of crisis. The leader of the Federal Opposition, Mt. J. G. Latham, reveiwed the Government’s record and said: “It is one. of unfulfilled promises. We want action, not promises. I regard Mr. Theodore’s re-admission to the Cabinet as a public shame and disgrace.” NEED TO RESTORE CONFIDENCE . . I' “MR. THEODORE NOT THE MAN” Rec. 11.30 p.m. London, Jan. 28. The Morning. Post in an editorial says it is not altogether surprised that MrTheodore’s reinstatement caused consternation in Australia. It ' adds that he is not the man who should be asked to restore confidence in the public finance of Australia. The Financial Times, commenting on the rise in the Australian exchange rates, says: Disconcerting as the contraction of imports, needless expenditure abroad and increased cost of the debt service be, these remedies serve a useful purpose if they compel internal adjustments of wage and production costs, also State expenditure. v , •. The Daily Telegraph’s financial editor says: The process is undoubtedly serious for those with capital in the Commonwealth. Unless confidence is established the penalty may be too burdensome to be borne and the time may come when assistance may be necessary. The Daily Express stresses the effect on holders of stocks and shares in companies registered in Australia unless the shareholders request the companies to retain dividends there at. credit pending an improvement in the rate.