SPLIT CERTAIN

Hokitika Guardian, 2 December 1930, Page 7

SPLIT CERTAIN

AUSTRALIAN LABOUR PARTY. EXTREMISTS AND MODERATES. 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 certain that a definite split cannot be avoided for long. The Labour Party is 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, hut it cannot be denied that they have many supporters among the unthinkable 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 : “We willmot pay you for a. year. Run away and do not worry us.”' Yet that is the instruction that was 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 1 severe blow at the eredit of Australia. NUT READY FOR ELECTION. However, it transpires this week that the extremists are not ready to force a general election this year, or even early 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 has for months been complaining that the State has not sufficient representation on the Cabinet, but Mr Scullin has not been inclined to . take much notice of it. This has been annoying to say the least if it, so it is nofc .surprising that efforts are made to embarrass the Prime Minister, even when his back is turned.

The fact that the Labour Cabinet lias to contend with a hostile Senate may ultimately (save (Australia fromdisgrace should the extremists by any chance secure the ijpper hand and attempt to force inflation, gnd repudiation upon the country. "The Senate (can defeat any measure thq.Labour - Party likes to produce. The only way to overcome this position will be for the Government to .seek a double dissolution, which would be \ granted ' only after a disagreementis complete within the meaiiting of .the Constitution. Months must elapse before the stage of complet'eir is reached/ and it' would not he possible:to/bring' about a dissolution before May next; at .the earliest, even if the first'-stage was entered fight away. In the meantime, therefore, the. bark of the -■ extremists Is worse than their bite.