Australia on Edge

Sun (Auckland), Volume IV, Issue 1062, 28 August 1930, Page 11

Australia on Edge

POLITICAL CRISIS LOOMS Labour Split Threatened LONDON WATCHING FINANCIAL, MOVES A POLITICAL crisis in Australia is predicted if the Labour mo\ ement persists in its demand for repudiation of the ommonwealth s war debts and for the recession of the resolutions passed by the recent financial conference between State and Federal leaders. This demand is directly opposite to the policy of the Labour Prime Minister, Mr. J. If. Scullin, and is attracting prominence in influential newspapers in London, where the credit of Australia is reported to be in a delicate position.

United P.A. —By Telegraph Copyright Reed. 10.15 a.m. SYDNEY, Today. “If ilie Labour movement throughout Australia endorses the war debts cencellation ultimatum of the New South Wales militants, a breach between the Labour Party and its Federal leader, Mr. J. H. Scullin, is inevitable,” say the Sydney “Sun." “Mr. Sculliu’s last recorded speech before he sailed for London contained the following statement: ‘Repudiation would be calamitous to the tvhole structure of tile x>resent system and would throw nearly T,000,000 people out of work. Such a suggestion could not. be tolerated.’ ”

Rations has been markedly enhanced by the resolutions passed at the Premiers’ Conference last week. The result of this, together with the credits pooling scheme, must be a revival of confidence in the Australian situation. Generally this is already manifest in the marked improvement in tho prices of Australian stocks.

The Acting-Prime Minister, Mr. J. K. Fenton, stated today: “We have no intention of repudiating the agreement reached at the Melbourne conference of Premiers. My Government lias concurred in the resolutions passed by that conference and we shall, at all costs, stand by the agreement.” SPLIT IN STATES -Mr. Fenton went on to say that the rpudiation resolutions could not be taken seriously. They had emanated from a coterie of irresponsibles. However, he deprecated the actions of newspapers correspondents in cabling them to London, which would seriously prejudice Australia's credit abroad.

The “Sydney Morning Herald” says the Lang faction in the Australian Labour Party fears that talk of the repudiation of war debts and of the financial agreement may adverselv affect the party’s prospects at the State election.

Its efforts to secure a rejection of the Labour committee’s demand threaten to cause a split in the State Labour movement.

The Acting Federal Treasurer, Mr. J. A. Lyons, speaking at Burnie, said the suggestion for the repudiation of debts could not be entertained for a moment. ATTENTION IN LONDON A London message says the resolutions of the New South Wales Labour Conference in favour of the repudiation of war debts and demanding a moratorium on interest payments on overseas loans had the unfortunate effect of causing a well-balanced morning newspaper like the “Dailv Telegraph” to feature the message under double-column headings. Below the paper gives the terms of the resolutions, which is calculated to give unwarranted importance to the matter.

The “Daily Telegraph” declares that if Mr. J. H. majority in the House of Representatives renounces his leadership, a grave political crisis might arise, and as far as tho demand for the repudiation of war debts is concerned, this is too shameful to be taken more seriously than an emotional symptom; but the violence of the reaction to proposals involving a sacrifice, cannot be regarded without anxiety by debenture-holders. NEW TREASURY BILLS

A well informed authority who is in close touch with Australian financial circles states, when referring to the issue of £5,000,000 in Treasury Bills to meet those maturing next week: “Consideration has been given to the whole question of short-term indebtedness. It was felt, in view of the existing conditions of the money market, that a renewal of the issue would be advantageous.” An authority on Australian finance says the prestige of Australia’s obli-

HARSH ON STATES

FEDERAL POLICY BLAMED LAW AND ORDER CHALLENGED Reed. 10.35 a.m. ADELAIDE, Today. The Premier, Mr. L. L. Hill, informed Parliament of the grounds of his appeal for Commonwealth assistance in finance. An important item was that the State must be reimbursed for its loss incurred owing to Federal policy. ‘‘We are faced with a deficit of £2,879,000 this year,” he said. “By a policy of retrenchment and economy of the harshest character, from which not even hospitals are exempt, and which will swell the menacing ranks of the unemployed to such a degree as to challenge the preservation of law and order, we will reduce the amount by £1,789,000, leaving a balance of a million sterling. This is less than the disabilities inflicted upon us by the federation, and must be found by the Commonwealth if we are to put our signature to the undertaking which Sir Otto Niemeyer placed before us.

“We are the most heavily taxed of the States, showing that we have honestly tried to meet our obligations.” PERTH, Today.

The State Premier, Sir James Mitchell, explained to Parliament how* the Premiers’ Conference conclusions affected the West Australian State finances.

One of these was that no money could be . expended until it was received. This would entail severe sacrifices. --

AUSTRALIA’S REPLY

EXTREMISTS ALONE CONCERNED SHOW-DOWN MAY SOBER THEM LONDON, Wednesday. The cablegram recording the “Daily Telegraph’s” featuring of the repudiation of debits resolution has brought a series of long replies from Australia. The “Daily Telegraph’s” own correspondent, in a dispatch, emphasises that the resolution was confined to the New South Wales Labour Council, at which the Australian Workers’ Union and the Miners’ Federation were not represented. “The Daily Telegraph” today displays this message under the headings: “Australians and Financial Crisis —New South Wales Labour Move Denounced—Only Kxtremists Behind It—Cabinet’s Policy Unshaken.” The message adds: The “Daily Telegraph’s” serious viewpoint is likely to have a sobering effect on the Labour hot-heads and encourage the moderates to rally to the support of the Federal Government.