FEDERAL CRISIS

Taranaki Daily News, 31 January 1931, Page 5

FEDERAL CRISIS

TWO RESIGNATIONS IN RECONSIDERATION REFUSED i OBJECTION TO INFLATION MR. THEODORE’S PROPOSALS ‘THE. ONLY HONEST COURSE’ By Telegraph—Press Association. Rec. 10.30 p.m. Sydney, Jan. 30. The Prime Minister, Mr. J. H. Scullin, to-day urgently telegraphed Mr. J. A. Lyons, Postmaster-General, declining to accept the Minister’s resignation from the Cabinet. Mr. Scullin received a reply in which Mr. Lyons refused to reconsider his decision to rpsign. The Prime Minister also received the resignation of Mr. J. E. Fenton, Minister of Customs.

It is significant that both delayed action until the actual day Mr. Theodore was sworn in as Treasurer. Mr. Fenton stated that he had not acted on personal grounds but on the principle involved. The Mungana leases position, he added, had. not altered since Mr. Theodore had. tendered his resignation as Treasurer.

Mr. Lyons said he entirely disagreed with what Mr. Scullin had done, i Mr. Theodore was behind Mr. Gibbins’ scheme for inflation of the currency. The Prime Minister had supported his inclusion in the Cabinet and, therefore, Mr. Lyons believed that the only honest course was to resign. In a statement the Prime Minister declared that the allegation that he had. “thrown overboard” Messrs. Fenton and. Lyons was false and vile. It is reported in State Labour circles that Mr. Theodore has promised to give effect to the decision of the left wing for the adoption of Mr. Gibbins’ plan of inflation of the currency. Mr. Theodore wasWated to have been given some weeks in which to draft legislation embodied in the scheme.

Informed in Melbourne that Messrs. Lyons atid Fenton had resigned, Mr. Theodore said: “That is a very serious step.” He would make no further comment.

Speakipg at a Parkes election meeting Mr. J. G. Latham, Leader of the Federal Opposition, said he could promise resistance by the Senate to a policy of inflation. INCREASED EXCHANGE POSITION. METHODS OF BIG BUSINESS FIRM London, Jan. 29. How long the Australian exchange will remain at 30 per cent, is at present intriguing London observers, es-pecially-in view of the activities of outside dealers who are taking advantage of the banks’ refusal to grant clients accommodation. One large company handling Australian butter and meat is unfailingly ready to supply London buyers at prices often as mucli as eight points above tl - official rates. , This margin naturally covers the cost of cabling the company’s Australian principals instructions to collect premiums in Australia. The firm has abundant funds here for selling bills and is very, eager to do business. A number of brokers operating, in the city are not dismayed at the latest advance.