FEDERAL FINANCE,

Hokitika Guardian, 31 July 1931, Page 5

FEDERAL FINANCE,

CRISIS IN HOUSE. (Australian Press Association.) CANBERRA, July 30. A Federal political crisis is imminent as the result of the Opposition’s , attitude in attempting to- restrict the supp.y to thVeje momhs (as cabled jesterday) instead ot two. A climax was reached to-day with dramatic suddenness when, after an all-night sitting, Mr Lyons, the Leader of the Opposition, moved an amendment to the Appropriation Bill to reduce the amount of -supply by £18,505, 919. Mr 1 .veils explained that the object of the amendment was to limit supply to three months, instead of twelve months’ supply, as proposed. This was in view of the extraordinary circumstances in which the country was involved. The Prime Minister, Mr Scullin, declared that the Government would not accept 31 r Lyons’ amendment, which i would be most humiliating. He pointed out that the Government had no intention of going into recess for twelve montiis, as hau'perhaps been anticipated. rie Had not the slightest doubt that this move to restrict the { supply had originated iii more astute m.iius than that of Mr Lyons, and that it lvaa indeed aimed at preventing the ltehaoihtation Plan from being brough to fruition. The Opposition forcos, he said were partners 'm the Rehabilitation Plan, and they should therefore stand by the Government. if this amendment were agreed to, then the Conversion Loan must fail. It would be quite impossible to attempt to restore the confidence while somebody was standing behind with a dagger. No self-respecting Government would treat this amendment as anything but one of no-con-fidence. The gesture was tantamount to saying that the Government could not be trusted. However the Government intended to carry out the Plan, or go to the country, and enlist the help of the people. GOVERNMENT VICTORY IN THE DIVISION. CANBERRA, July 30. Speaking to his amendment in the Federal House, Air Lyons, Leader of _tho United Australian Party, said that the Opposition had no intention of defeating the Government but, as the Opposition was a partner in . the Rehabilitation Plan, it should, at least have the opportunity of having the. Plan carried out in its entirety. It Was only with the help df the Opposition that the Plan had come before Parliament. Air Paterson, the Deputy-Leader of the Country Patty, said that htVPJHVintended ,to vote against the amendment, which, if successful, might, he said, induce selfish bondholders to dissent from converting his holdings in a hope that the Government might treat him more lienicntly. The wh: lo Rehabilitation Scheme might be endangered if a. general election were to be precipitated. Air Frank Forde (Alinister of Customs), said that Air Lyons’ move Was inspired by the banks, which desired to avoid reducing the rates of interest and by the bondholders, who wanted to avoid making any sacrifice. The closure was finally applied. Air Lyons’ amendment was defeat? ed by 34 votes to 19, The Country Party voted with, thus saving the Government. i The Beasley Group left the clmm- ) her and did not vote. The Prime Minister announced, amidst the greatest disorder, that the loan Conversion operations had nowbeen indefinitely postponed, awaiting the fate of the Opposition Bill in the Senate. According to well-informed peon I©, 1 ©, , the Senate will reject the* Opposition Bill.