FEDERAL FINANCE

Hokitika Guardian, 14 March 1932, Page 6

FEDERAL FINANCE

COMMONWEALTH AND STATE. AN EMBARRASSING MOVE. (Australian Press Association.) (Received this day at 10.15 a.m.) SYDNEY, March 14. The “Telegraph” says: “Lt is suggested that the State Government withdrew money from the bank to forestall Mr Garnish’s Bill passed by thu Senate on Friday. If this is the case the object of the move, no doubt, is to embarrass the Federal Government by attempting to put the money beyond its reach. If anything of the Icind has happened in the long run of course, the taxpayer's will have to pay the cost of the ' fight' between the Commonwealth'Ymd State Government.” « The “Telegraph” adds: “A trifle over £1,150,000 will not go far in running New South Males. It costs the State Government about fifty million each year to carry on, including eight millions for interest payments. financial bills in force. CANBERRA, March 14. The Financial Agreement Enforcement Bill and the Financial Agreement Commonwealth Liability Bill have received the assent of his Excellency the Governor-General. Both measures therefore are now in operation.

OPINION OF MR LYONS. « la ng IS DELUDING HIMSELF.” SYDNEY, March 14. The amount was deposited in the New South "Wales' Treasury and the ordinary treasury, and the police guard has been strengthened. The Prime Minister, Mr Lyons, commenting on the action, said: “Tt will J not, in any way, prevent the carrying out of Federal law to compel the State to meet its obligations. Mr Lang is deluding himself if he thinks his action is a means of evading an effective weapon that his been forged by the Commonwealth Government to compel him to meet his undertakings. Mr Lyons added that it would seem that Mr Lang had sufficient money in the banks after all, with which he could have paid the interest had he desired to do so. Speaking at Woolonggong, Mr Lyons declared that- the Government’s efforts to restore industry, and consequently remove unemployment, had been hampered bv the Lang Ministry, and the only absolute remedy that he saw was an early New South Wales election. The Prime Minister said that the Government would’ have to consider the use of credit of the country to enable it to carry out reproductive works and provide for the- unemployment. It would be vTong to go back to the old policy of borrowing money to relieve unemployment,' and rehabilitate Australia. 1