STATE FUNDS

Rotorua Morning Post, Volume 1, Issue 173, 15 March 1932, Page 5

STATE FUNDS

(Press. Assn.

EFFORT TO FORESTALL Nkw FEDERAL ArCT Mllst PAiL MR, LYONS DETERMINED

— By Telegi-aph— Copyright).

Rec. Mar. 14, 8.25 p.m. SYDNEY, Monday. i«,.Tbe "Daiiy Telegraph" commentmg on the withdrawal from the. bapks just before closing; time on Saturday oi "at least. £1,600,660 in cash by the Statq G'overhment, that ii i's suggested the G'overhment wiihdrew ihe moriey i'o forestall the "Garfiishee Bifi passed by the Senate on Frifiay. If this is tfie.ease the objeci of the mqve no doubt is tb emb'arrass ihe.Federal Goverhment by atfemptin^ tb pui ihohey beyond ifs reach. K ahythix^bf ihe kind has bappehed, ih the.lqrig ruri, bf coufse, the taxpayers will have to pay the co'st of th'e fight betweeri ihe Commbttwealth and the State Governmerii. The "Telegraph" adds: "A trifle oi £1,1560,000 wil} not go far in ruhfiihg New Sbuth Wales. It costs the State about £56,000,066 a year to c.arry on, ihciuding £'8,06*0,6'66 for intereit paynients." Money iri Treasury . Thb ani'buht has been deposited in the New South Wales Treasury ahd the ordinary Treasury. The police j guard has been strengthened. The Prime Minister, Mr. J. A. ; Lyonsj commeriting on this action, ! said it would not in any way preve-nt ; his Governrilerit from cafryirig out ■ the riew law to conipel the Staie tb : meet its obligations. "Mr. Lang is deluding himself," he said, "if he thinks his action is a.meaUs of evading the_ effeetive iveapon that has heen f orged by the CommoUwealth Governnient . to compel him to meet his undqrtakings." Mr. ,Lyons added that ;it would seem that Mr.. Lang had siifficient money. in the banks after all, with which he could have paid his overseas interest had he .desired to do so. Lang the Obstacle . Speaking later at Woliongong, Mr. Lyons deciared that the Government's effqrts to restore industry and consequently to remove unemployment had been hamp.ered ..ipy the Lang Minisiry, ahd the only absolute remedy he saw was an early election in New South IVales. The Prime Minister said the Government would have to consider us-

mg the credit of the country to enable it to carry out reproductive works and provid'e- for the unemplbyed. it; would be wrong to go hack to the old policy of borrowing money to relieve unemployment and rehabilitate Australia.