SITUATION IN AUSTRALIA.

Press, Volume LXVII, Issue 20168, 21 February 1931, Page 15

SITUATION IN AUSTRALIA.

review of the week.

NO SOLUTION IN SIGHT.

(Received February 20th, 11.10 p.m.)

SYDNEY, February 20. Another week has passed without a solution being found for Australia's financial ills, and so terrible suspense goes on. More businesses failj more companies go into liquidation; empty shops become more numerous; big department stores grow more lifeless, while stark misery is written. in the faces of thousands of men, women, youths,, and girls, whose daily quest for employment in the big cities is both hopeless and pathetic. Never has the housewife's plight been more desperate. Never has the landlord's dilemma been more acute. There is much loose talk of revolt, but nobody seems capable of explaining what good purpose this would serve." Farmers in the northorn and southern portions of New South Wales already have begun a revolt "against' the Lang Administration, and from all accounts will not rest until they have made three States of New South Wales. Similarly Queensland and Western Australia desire to secede from the Federal Union, largely on,the ground that' New South Wales wields a dominating influence capable, as in the present crisis, of inflicting much harm and suffering. These events are now taking definite shape, and may later compel the Government to grant a referendum on the specified question of secession. Thus, while all Australia is chafing, plans to extricate the Commonwealth, from a financial morass are still in the melting pot. The conference of Premiers and Treasurers 1 a week ajgo adopted the three-year formula for Australia's rehabilitation. The conditions of that agreement gave considerable satisfaction, but since then the Federal Labour Caucus has decreed that the Government shall exploit Mr Theodore's plan, which is alleged Jo savour of repudiation. New South Wkles has its own special plan which the Press describe as repudiation, pure : and unadulterated, on which the Party hopes to win the East Sydnev. by-election.

(Eeeeived February 21st, 12.58 a.m.) Confusion having arisen as to tho meaning, of the Caucus decree, Mr Scullin hastened to explain to-day that the Caucus had approved the negotiations now going on between himself and Mr Theodore and the banks, and had authorised them to/continue, those negotiations. This declaration has re- : moved the apprehension that what the Caucus desired wasthe adoption of the Theodore proposal for the restoration pf the 1929 currency levels, v The Hottie of meets on March 4th, by which time the Prime Minister should be able to gauge the'measures of support he is likely to receive from his party. The "Sun" representative at Canberra says: "The chief question is no longer - what . legislation the Scullin Government will submit to Parliament, but whether it will survive an inevitable* no-confidence motion." He adds : that' the Ministry can no longer count definitely upon the support of a majority of the members of the House. Mr Lyons, Mr Fan ton, and possibly Mr McGrath, probably will, cross floor. r; .,-Mr Lyw»V,Bayfl- that he ia disturbed sand disgusted. ' k Party is hopeWhen, one section in,reconstruction it be- ' • eomes & target for another. I do not wish to' see the Party hopelessly split, but whatever "'action' I take I shall place thfi jsflnntry .first." ~ Other'. Laboujr Federal, niembers deelare:.;|hat in the Prime Minipter has completely broken down. 3jfOYsmenl;g oji,fQo throughout Australia .Ktji)VfUrdsi;thel! r@j9t^|atipin, of; Australia's poilUcal;,inteiprity{ and financial, stabiBig held at Sydney .and, slso irt South t and" > Queensland, Ciiiz?nß' I , which arti (the, |u|uip. Governments.