STATE CHEQUES.

Press, Volume LXVIII, Issue 20495, 14 March 1932, Page 11

STATE CHEQUES.

£1,000,000 IN NOTES WITHDRAWN. FUNDS FOR LANG GOVERNMENT. (united PRKS3 association—bi electric TELEGRAPH— COPYRIGHT.) (Received March 13th, 10 p.m.) \ SYDNEY, March 13. Major M. L. T. Jarvie, a Nationalist member of the State Legislative Assembly, said to-day that just before the banks closed on Saturday two State Government cheques were presented and cashed in notes. One was for £750,000 with the Bank of New South Wales, and the other for £400,000. with the Commercial Bank of Sydney. A later message adds:— Bank authorities admit that £750,000 was withdrawn by the State Government from the Bank of New South Wales, and £250,000 from the Commercial Bank of Sydney, though Major Jarvie maintains that he was informed that the latter was £400,000. FEDERAL WARNING ACTIVITIES OF MILITANT ORGANISATIONS. PEACE TO BE MAINTAINED. CANBERRA, March 12. Without actually mentioning the New Guard, the Prime Minister (Mr J. A. Lyons) said the Government bad received information from reliable sources that organisations had been created which were prejudicial to the maintenance of peace and order. The Government was fully seized of its responsibilities under the constitution for the maintenance of law and order, and would not hesitate to discharge them. Therefore it would not permit unauthorised formations in any part of the Commonwealth. He appealed to all citizens to co-oporate with the constituted authority to preserve peace in the community.

Mr ' Lyons's warning is understood to refer not onlv to the New Guard, but also to tho Workers' Defence Army, both of whoso activities have been under observation. If tho warning is disregarded, the Commonwealth Government has the power to proclaim anv organisation illegal. The penalty for unauthorised training for armed offence or resistance is fivo vears' imprisonment for a driller and two vears for other participants.

THE NEW GUARD'S LEADER. STATE ISSUES WRIT FOR TAXATION. SYDNEY.'March 12. Following the New Guard's presentation yesterday of a petition to the Stato Governor, Sir Philip Gam©, praying his Majesty the King to dissolve the Lang Government, Mr W. H. Childs, Commissioner of Police, made a statement denying the truth of a number of references by the New. Guard derogatory to the police organisation, and impugning its integrity. Incidents quoted to show that the police were subservient to some questionable influence had never happened. Writs had been issued claiming from Colonel Eric Campbell, leader of the New Guard, £943 and £989 in taxation forth*T years 1930 and 1931. Colonel Campbell says he will not pay the Sfate tax until Mr J. TVLang is out of office, nor the Federal tax until the Federal Government honours its election pledge to take action against the Reds. .

INTEREST DEFAULT. PROSPECT OF FEDERAL ACTION. • CANBERRA, March 12. . The Senate having passed the Financial Argeomonts Enforcement Bill, the Government is expected to institute action against New South Wales next week by asking the Federal Parliament to pass a resolution whereby tne State revenues will become immediately attachable to satisfy the_debt lor the defaulted interest payments.