LABOUR SPLIT

Hokitika Guardian, 7 November 1930, Page 5

LABOUR SPLIT

MR LYONS OBJECTS

TO' CAUCUS PROPOSAL

(Australian Press Association.)

(Received this dav at 12.25. p.m.) SYDNEY November 7.

Correspondents at Canberra state

the Labour caucus differences arose over the necessity of raising twenty seven millions sterling to meet loans maturing in December.

Mr Lyons proposed to raise a loan for this amount in about a month’s time to cover the indebtedness.

A section of the party which opposes borrowing, succeeded in defeating this, and carrying a motion demanding tbe immediate passage of legislation compelling bond holders in the twentyseven million loan to hold their bonds for a further twelve months, interest to be paid as usual, with a. provision that necessitous persons may receive immediate payment of small amounts from the Commonwealth Bank, which would then hold these cashed bonds ns non-interest bearing securities.

The sponsors of this motion stated that the object was to avoid repudiation of the Commonwealth debt, and to stop traditional methods of borrowing and attest the extent to which the resources of the Commonwealth Bank could be utilised to meet national needs,

Mr Lyons told the caucus that Sir Robert Gibson had refused to listen to Gibbons’ proposal made to the caucus last week, that the Commonwealth Bank should underwrite the maturing loan. This statement caused an uproar, members demanding tio know why Gibson, who was a servant of the people, should be permitted to act as a dictator.

Mr Lyons declared the policy proposed by the caucus could only lead to political oblivion. Mr Anstey. the mover of the motion is mentioned as a probable Treasurer, if Mr Lyon’s resigns.