FINANCE CRISIS

Hokitika Guardian, 9 April 1932, Page 5

FINANCE CRISIS

MOVE BY LANG TO CHECK FEDERAL SEIZURE. (Australian Press Association.) SYDNEY, April 8. The first retaliatory move by Mr J. Lang against the' Common wealth was launched to-day. The officers of (he Taxation Department, oa their arrival at the offices, found that tihe doors were locked on the three floors where the assessments and records are kept; and the issue of all assessments, both Federal and State, has been discontinued.

Overnight the locks had been changed, and the keys are reported to be held by the Premier, Mr Pang. This move automatically causes a cessation of the issue of all assessments, and it prevents the Federal authorities from gaining access to the records of those assessments .that have already been issued.

Scores of officers were told that they must take leave. Mr McMahon, the Commissioner 01 Taxatibn, declined to make any statement.

The Federal Government (has the power to order IMr Lang or Mr McMahon, under the pain of a severe penalty, to open the doors, and to instruct all of the employees to return to duty, while the people who have already received assessments are obliged to pay the taxation due to the Commonwealth promptly. :An interesting feature was a rush of taxpayers to paj* their taxes at the Commonwealth Bank in accordance with yesterday’s proclamation. Hundreds- sought the .distinction of being the first -to take advantage of the new order of things, special arrangements having been made to cope with the situation.

It is reported that Mr Lang, during the week, withdrew a further quarter of a million pounds from the Bank of New South Wales, and transferred it to the State Treasury vaults.

AIR LYONS IS SILENT.

MELBOURNE, April 8,

After the Federal Cabinet had its meeting to-day, the Prime Minister, Mr Lyons, stated that he' had no comment to offer in regard to Mr Lang’s action in closing the New South Wales Taxation Offices and impounding the assessments.

DIVISION OF N.S.W. SOUGHT.

INTO THREE DISTRICTS

(Receb ed this day at 10.15 a.m.) SYDNEY, April 9.

Tlie demand for a referendum for thn inihiedlato division pi' New South Wales into three districts, represented b.v Riverton, New England, and Western movements was decided upon by the executive of the United Party at a special meeting to consider the position. A telegram to this effect was sent to the Prime Minister, signed by Dr. Page, E. Body, and Senator Hardy, respective leaders of the three movements.

"He disassociate ourselves from th e dislyo.nl, destructive acts of the Lang Government, and ask for constitutional machinery that will prevent the continuance, or recurrence of such acts." the telegram stated.

LANG AND LYONS.

SYDNEY, April 9

Mr Lang has written to Air Lyons comp'laning of the Commonwealth having repudiated the agreement of 192.3 whereunder New South Wales undertook to act as collecting authority for tlie Federal State income taxes. He has no alternative hut to cancel the agreement forthwith.

Mr Lang announced to-night he is attending the Premiers’ Conference next week to discuss unemployment.