COMMONWEALTH PAYS N.S.W. INTEREST BILL.

Star (Christchurch), Volume XLIV, Issue 78, 1 April 1931, Page 1

COMMONWEALTH PAYS N.S.W. INTEREST BILL.

ARRANGEMENTS WITH BANK ARE COMPLETED. (Received April 1, 12.30 p.m.) CANBERRA, April 1. Mr Scullin has announced that, in accordance with thh Commonwealth Government’s decision, arrangements have been made with the Commonwealth Bank to pay the interest due by the Lang Government to British bondholders. attempt to heal BREACH IN PARTY. SYDNEY, March 31. It was revealed to-night that a desperate attempt is being made by Labour stalwarts to heal the breach between the Federal and State executives in view of the likelihood of an early Federal electihn. The initiative is being taken by the Australian Workers’ Union, whose organisation is strongly represented in the Federal Ministry. The Prime Minister’s announcement that the Commonwealth Government will pay the interest due to British bondholders by the New South Wales Government, which is defaulting, has caused the greatest satisfaction in Australian political and business circles. Mr Scullin received several cablegrams from England -to-day, including one from Mr J. H. Thomas, expressing gratification at the Commonwealth’s action. LONDON PRESS PRAISES AUSTRALIAN DECISION.

LONDON, March 30. The diplomatic correspondent of the “Morning Post” says: “The Australian situation is viewed with greater optimism than has been evident for some time. Mr Lang’s declaration has touched the Australian pride and the pendulum is now swinging in the opposite direction. It is possibly that the Theo-dore-Scullin policy compromise will shortly cease to be considered a way out, in favour of the downright policy of reconstruction advocated by the All-for-Australia League and Mr Lyons. With such a policy in fotce, London finance would not be slow to respond.’’ The "News Chronicle” in a leader said: “The Federal Government’s decision to meet the interest payments is Australia's patriotic retort to Mr Lang, who cuts a sorry figure and would doubtless be swept from office if elections occurred to-morrow.” Australia’s Good Name. The “Daily Telegraph" says: “The Government has vindicated Australia's good name with commendable promptitude. Messages from Australia bear striking witness to the general anxiety lest Britain should think Australia capable of following Mr Lang’s vicious and wicked lead. Repudiation has beer violently repudiated. l The best solution would be for New South Wales to throw out Lang, neck and crop, before he does more mischief.” The “Daily Express” says: “Yesterday many timorous buyers who sold their bonds in a panic were buying them back at increased prices.” “The Times” says: “Mr Thomas’s announcement in the House of Commons has been received with a relief which will do much to repair the harm which Mr Lang has done. It can safely be said that Mr Lang has made his countrymen realise the danger of putting politicians in power who cannot be trusted to maintain the financial integrity of the country.”