FEDERAL CRISIS

Nelson Evening Mail, Volume LXIV, 13 January 1931, Page 5

FEDERAL CRISIS

FATE OF THE MINISTRY IN THE BALANCE (United Press Association —By Electric Telegraph—Copyright) SYDNEY, 12th January. The inflation conference decision is regarded as a sweeping victory for the Theodore faction, who make no secret that they desire to precipitate a crisis and the reconstruction of the Federal Cabinet. Air Theodore, the principal speaker, violently attacked banks and financial institutions, and declared that Australia did not need a mere twenty millions but required actually a hundred and twenty millions, as well as the Feueral reserve bank. The outcome of this conference will be regarded all over Australia as a challenge to the Federal Alinistry, the fate of which is now in the balance. Excepting Victoria labour organisations, other States remained silent on blie inflation issue. MUST ADVOCATE INFLATION

MR SCULLIN AND BY-ELECTION

SYDNEY, 12th January A conference of the executive of the New South Wales branch of the Australian Labour Party and New South Wales members of the Federal Parliament reaffirmed the decision in favour of inflation and decided to notify the Prime Minister that bis assistance in the Parkcs by-election was not required unless be was prepared to agree to advocate inflation. Parlces is the former constituency ot Mr AlcTiernon, who was elevated to the High Court Judiciary. The forthcoming contest, which will be decided at the end of the month, is causing considerable speculation. The candidates are: J. A. Martin, 0.ficial Labourite; and Alajor ATarr, Nationalist, who originally held the seat hut lost it at the last election. l-IGHTING SPEECH (Received 13th January, 9.50 a.m.) AIELBOURNE,‘This Day. A civic reception was given to Mr Scullin and Air Forbes by the Alelbourne City Council to-day. In a fighting speech Air Scullin declared : ‘‘While I concede it the right of the people to elect and dethrone governments, I ask that while I am at the head of the Ministry I shall be given the right to exercise the responsibility of that position. But if it is the wish of the people I will readily give way to anybody who can lead Australia out of the morass.”

AIILD FORM OF INFLATION

MAY BE ADVOCATED BY PRIAIE

MINISTER (Received 13th January, 10.40 a.m.) AIELBOURNE, This Day. Two impressions formed by those in close touch with Mr Scullin since his return are that he may advocate a mild form of inflation with'certain limitations and safeguards, and that he will welcome the return to the Treasury benches of Air Theodore. THE MELBOURNE AGREEMENT (Received 13th January, 10.40 a.m.) ADELAIDE, This Day. The premier, Air Hill, in reply to a deputation of farmers, declared that Air Scullin told him since his return that if the Melbourne agreement had been carried out Australia would have turned the corner by now.

AUSTRALIAN SECURITIES ANXIETY OF HOLDERS LONDON,, 12th January. The “Alorning Post” says that holders of Australian securities are awaiting the outcome of the conference between Air Scullin and the Australian Labour Party. Recent falls in stock wero not ordinary fluctuations, but reflect real anxiety on the part of trustees and other holders inspired by tlie growing recognition that Labour legislation in Australia has produced unsound conditions. It is hoped Air Scullin will' withstand the pressure, in which case Australian securities may recover and come into prominence in due course.

STOCK EXCHANGE OPINION DEPENDENT ON POLITICAL SITUATION LONDON, 12th January. The “Financial News” says that stockbrokers are inundated with inquiries from investors as to what to with their Australian holdings. The Stock Exchange generally expresses the opinion that the course of prices depends on the political situation ; while a vociferous minority is hustling the sane Australian opinion that credit will continue at a serious discount. Holders will have to gamble oil a final victory of moderate Labour. If Australia makes a real attempt to put her house in order friends in this country will quickly come to her assistance. STOCKS FURTHER DEPRESSED (Received 13th January. 10.50 a.m.) LONDON, 12th January. Australian stocks were further depressed. Sales recorded, average prices, Commonwealth s’s 70, 6’s 3A’s 50, s’s 66j(; New South Wales 3 s 6l|, 6’s 75,|; Queensland s’s 65£, 6’s 82),; South Australian 6g’s 80; Tasmania 3£’s 65, 6i’s 83; West Australian 3’s 73, 6’s 80.