AUSTRALIAN POLITICS

Hokitika Guardian, 28 March 1931, Page 5

AUSTRALIAN POLITICS

MR LANG’S DEFENCE.

(Australian Press Association.)

SYDNEY, March 27

Mr Lnng stated: “It is idle for tlio Prime Minister, Mr Scullin to express dismay at the inutility of New Booth "Wales to meet the interest payments due overseas. All of the Australian Governments were very definitely informed by me at Canberra that this Government woo’d not be able to meet its interest payments at the end of the month. As a Government, we have to choose between cutting down our dole, closing our unemployed relief works or restricting cur social works to pay our interest, or else avoiding our nnterest payments and devoting , the money to the relief oi the distress i among tho unemployed. Me have unhesitatingly’ chosen to stick to tho people of our own State in preference to the overseas bondholders. CAN SCULLIN CHECK LANG? LONDON', March 27. The “News Chronicle” in a leading article) sttysi “If Mr Lang really intends to push the policy of default to its logical conclusion, it efui only recoil with terrific force upon the people who are unwise enough to commit the direction cf their fortunes to such \ a guide. There must he something wrong with the Constitution unaer which single State can act in this manner. Tho Commonwealth’s good faith has not been in question. We hope that Mr Scullin will find someway of bringing pressure to bear on Mr Lang to recognise the extreme peril, if not the dishonesty, of the course be is pursuing.”

The Australian Press Association is authoritatively’ informed that all the States’ impending loan obligations aro definitely provided for except New South ( Wales, which is provisionally arranged for. ARCHBISHOP’S COMMENT. SYDNEY, March 27. Archbishop Kelly, preaching at High Mass in St. Mary’s Basilica yesterday morning, said: “We need not expect our food to be rained down from heaven because God lias fitted man to produce from the earth his daily sustenance, and mail has the inclinations and instinct which lead him to work to get it. It is a principle of religion that ‘he who will not work let him not oat.’ The workman’s industry and labour are required by the capitalist. We must do our best by living ecnomically’ and 'frugally. Without these, j Want will CO trie Upon us like ah armed

iuani Refuse to pay your lawful debts, hnd your own soul is in pawn. Inter* nut now on fair terms is recognised by Christian morality, Loss or profit that would be gained by investments entitles the londer to compensation. Blessed is the man who takes no usury A man goes to a banker to negotiate

a loan. He is bound by promises, and

will not be pardoned by God if he docs I not pay back to th e last 'farthing. Therefore if a man wastes his money and is unable to pay his debts, he is'a dishonest man, and must cut of? his expense. A man’ life or health does not depend on luxuries. The simplest food is the best in the long run.” N.S.W. LABOUR PARTY’S FUTURE SYDNEY, March 27. One of the Federal Ministers said that Mr Lang’s decision would unquestionably have severe repercussions. In fact, it would probably mean the end of the New South Wales State Labour Party.

LONDON PAPERS.

EXPLOIT THE STATEMENT,

LONDON, Marclf 27.

Following the lead of the evening papers, this morning’s papers give startling prominence to Mr Lang’s declaration. The “Daily Express''' and others feature it on., the front page in bold headlines. Fortunately, however, the reasoned comment of the, financial editors relieve the starkness of the bare declaration.

The “Morhing. Post’s” financial, editor devotes a column to comment under the heading: “The Australian Bombshell” on what he terms ‘.‘This more serious definite news than any in recent times from Australia.” He adds that there is no precedent for such repudiatory action by any section of the Dominions. Therefore, he says, the general expectation is that either there will be a retraction by Mr Lang or the interest will be met from the Commonwealth’s funds. He adds that everyone naturally desires New South Wales to accept its responsibilities on its own accord. PREFERENCE TO U.S.A, BONDHOLDERS? LONDON, March 27. The “Daily Express’s” financial editor warns thousands of investors rn New South Wales and. other Australian stocks to treat Mr Lang's statement with the greatest reserve .He emphasises the Commonwealth’s obligation despite anything said or done hv Mr Lang. While the situation in Australia, he says, is undoubtedly extremely difficult, bondholders must remember that there is a vast body of Australian opinion strongly opposed to any form of repudiation,

j The “Daily’ Telegraph’s” financial editor says: “Throughout the dovelop_ ment of Australia’s difficulties, the City of London has adopted a tolerant and helpful attitude; but its indignation lias been controlled only wit’ll some effort on the disclosures that, while Air Lang had been making arrangements for the payment of the New Booth Wales indebtedness to New Aoi k, he proposed to default on sums due to the Westminister Bank and to tile Bank of England. 'TIMESii” OPINION. LONDON, March 2\ “I he limes'’ says: “Mr Lang is clearly determined to bring all of the discredit that he can upon .Australia before public indignation drives him ■from office, llieiv is no more justification lor delimit now than there was several months ago. Air Lang’s relusal hits the Commonwealth, which is responsible for all of the debts rather than the bondholders. Probably that is his intention! The .seercssion movements would he given a nimmense impetus by a default, and the chaos of politics both in New South Wales and in tho Commonwealth is becoming worse, so that an election cannot he long delayed.”

NO MONEY.

LONDON, March 26

The “Maneliestiei- Gunrdilin” is of the opinion that a few Weeks hence Mr LaUg will ho unable to pay the civil servants, when a change in the Premiership will occur. SYDNEY, March 27.

“The definite statement that New South Wales will default is the most shameful passage in Australia’s history, and possibly' in the history’ of the whole British Empire,” said the Leader of the Federal Country Party. Dr Earle Page.

LONDON, March 27

The “Morning Post,” says “sympathy will he felt for the great body of the Australian people in the sluimo and dishonour to which some of their leaders are exposing the good name of the Commonweinf'tih. The repudiation by New South Wales is not dictated by the necessities of the situation, nut solely by the revolutionary frenzy ot Mr Lang, who moreover appears to he infected with an incomprehensible animus against Britain, for be expressly exempted the United States from trie intended default.”

A LABOR MOVE

STATE EXECUTIVE EXPELLED. (Received tin's rlav at. 9 n.m.) SYDNEY, March 23. The Federal Executive of the Australian Labour Party by 25 to 4 votes decided to expel the State Executive. PftESS COMMENT. VERY STRONG CONDEMNATION, LONDON, March 27, The “Financial News” says if a sense of honour no longer weighs with Mr Lang, there is no reason to suppose it is lost to a majority of Australian citizens. Stock holders may rest assured on the security of Australian honour that they will receive the money due.

The “Financial Times” says there is no development in the Australian situation, that has done so much damace as Mr Lang’s decision. A record of the price movements tells the story. Credit is crocking at a point at which it would be foolish for this, and any other country, to lend money without, a real assurance that the debtor would follow sound courses. These events have occurred at a profoundly unfortunate time when the Commonwealth’s export trade was increasing and the commodity outlook seems better. There is no doubt that London would lend aid, hut it is bound to insist that the borrower give safeguards against bankruptcy. The “Daily Herald” regards Mr Lang’s remitting to New York and not meeting London obligations, as the final insult.