AUSTRALIAN FINANCE

Hokitika Guardian, 30 January 1931, Page 2

AUSTRALIAN FINANCE

LABOUR THWARTED

SYDNEY, January 22

One thing that has stood out clearly during Australia’s time of trial is the paramount position of the banks. They have been all j'oworlul in restraining the Government and in rep. iv.ue 'pe.idmg as well. On more than one occasion they have defied the. various Governments, and thu-e whose views flow along moderate channels are convinced that the bankhave averted a much more serious crisis because of their conservative policy. But their conservatism has annoyed the Labour extremists, the Left Wingers. When the first Federal Labour Caucus meets at Canberra next work the disgruntled section of the Party will make a very determined move to s ‘cure the dismissal of Sir Robert Gibson from the elwirnutnship of the 'umiivonwealth Bank Heard. They rccogir'se that while he retains hi> position an insurmountable obstacle exists to the execution of their plans for a. manipulation of credits and the political control of banking. Their difficulty is that only a few months ago Sir Robert wits appointed chairman of the ha ilk fOr ailother term of seven years.

11 is reappointment was never approv- ! cd by the caucus, which had, in fact, ! expressed its strongest objection to it. I Actui'llv he was reappointed on the re. ! sprmsibility of the Prime Minister (Mr | Scullin), and the appointment was j then announced to the hostile Party as a fait accompli. Mr Scullin has still to answer to caucus for his action | in this resrect, which was taken short- ' lv before lie left for England. i ' | OBJECTIVES Oh EXTREMISTS. j The. main objectives of the extremists are the removal of the control of finance from the private banks, and i the reorganisation of the I unctions, j and to some extent the personnel, of the Commonwealth Bank a,s a preliminary to inflation. 'The A.L..P. conferences which will be held soon will | discuss the question at length. Ihe ; Trades Hall leaders hope that, even if tho plan cannot be made effective for some time, talk and the appearance of action will placate sections of the rank and file, in which Communists are fomenting discontent with the official Labour Party. It lias just been revealed that the only terms upon which the Laboui caucus would have agreed to the reappointment of Sir Robert Gibson were that he should first sign an undated resignation, which could have been given effect to at any time the, caucus might have selected. Such a condition was obviously unacceptable to Sir Robert, and the Government knew that it would be. Hits opponents in the Cabinet and Party have now been advised that, despite the seven years contract made with him, a method exists by which lie may be removed from the. hank chairmanship. This; is by an amendment of the Act by which he was appointed. They have been informed that if the constitution of the Rank Board were altm-ml in order to make .the position of Sir Robert Gibson on it untenable he would not istand on the Rgal rights given to Gm by the contract. An assurance on this point i.s stated to be in the hands of the Ministry. And there is no knowing to w l -"* length Labour will go to attain its object.