SPLIT CERTAIN.

Press, Volume LXVI, Issue 20097, 28 November 1930, Page 9

SPLIT CERTAIN.

AUSTRALIAN LABOUR PARTY. EXTREMISTS AND MODERATEB. rrBOK ous ovra co»a»Bpotrc>zHT.) SYDNEY, November 20. Whatever compromise may be reached between the moderates who are behind the Federal Cabinet in financial matters and the extremists in the Labour movement in Australia it is certai* that a definite split cannot bo avoided for long. The Labour Party ia .definitely divided into two camps, and as a divided force cannot last. It is also certain that the extremists, who are advocating what is clearly a repudiation of debts and inflation, are out of touch with real public opinion in Australia, but it cannot bo denied that they havo many supporters among the unthinking multitude. Honest people naturally recoil at any proposal that Australia should say to the holders of bonds in the £27,000,000 that is about to fall due: "Wo will not pay you for a year. Run away and do not worry us." Yet that is the instruction that was given to the Cabinet last week by the Federal Labour Caucus. The move was inspired by Mr Anstey, who is somewhat of a fanatic in matters financial. He struck a severe blow at the credit of Australia. Wot Beady for Election. However, it transpires this week that the extremists are not ready to force a general election this year, or even eariy next year. Meanwhile the industrial section that controls the Labour movement in New South Wales will continue its battle to get on top in the Federal sphere also. The New South Wales Trades Council lias for months been complaining that the State has not sufficient representation on the Cabinot, but Mr Scullin has not been inclined to take much notice of it. This has been annoying to say the least of it, so it is not surprising that efforts are made to embarrass the Prime Minister, even when his back is turned. ThO fact that the Labour Cabinet has to contend with a hostile Senate may ultimately save Australia from disgrace should the extremists by any chance secure the upper hand and attempt to force inflation and repudiation upon the country. The Senate can defeat any measure the Labour Party likes to produce. The only way to overcome this position will be for the Government to aeelc a double dissolution, which would be granted only after a disagreement is complete within the meaning of the Constitution. Months must elapse before the stage of completion is reached, and it would not bo possible to bring about a dissolution before May next at the earliest, even if tho first stage was entered right away. In the meantime, therefore, the bark of the extremists is worse than their bark.