Australia The Commonwealth's drastic measures of retrench- ment came into
force on Monday and have already strengthened Australia's credit. Salaries and pensions have been cut down and the interest on internal loans has been reduced, while taxes have been raised. Mr. Lang, the extreme Socialist Premier of New South Wales, had refused to adopt the economies to which the Federal Government and the five other States had agreed. Like Mr. Maxton and the extreme Left here, Mr. Lang was for ignoring the financial crisis. But on Monday, when his Treasury was empty and his officials were unpaid, while the banks refused to lend any more money, Mr. Lang gave in and announced a Bill to reduce all official salaries to £500. Mr. Scullin, the Commonwealth Prime Minister, declared_ that New South Wales would receive assistance when it was made Acre that she would no longer default on her British loans. Amid these financial troubles Mr. Lang has apparently been worsted in his dispute with the Governor, Sir Philip Game, who refused to nominate a number of extreme Socialists to the Legislative Council so that that body might declare its own extinction. Mr. J. H. Thomas at the Dominions Office declined to interfere in the matter. He doubtless knew that Mr. Lang has lost favour with the majority of the Australian Labour Party and is by no means anxious to face the electors, to whom his appeal lies against the Governor.
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