New South Wales in Default
. Extreme Socialism has outrun the constable in New South Wales. Mr. Lang, the Premier of that State, has reduced the finances to such a condition that he has had to instruct his Agent-General in London to negotiate with the bondholders for a moratorium of a year. This alarming move followed a dispute with the Loan Council compoSed Of all the Australian Premiers, who took strong exception to what they regarded as Mr. Lang's breach of faith in not fulfilling a promise to pay at least part of the interest 'due en the State's external loans. We may. safely assume that the Commonwealth will somehow find the money,' for the sake of upholding Australian credit in the world market. But it might not be amiss for the people of New South Wales to realize what spendthrift finance, such as Mr. Lang has gloried in, must mean to them and- their industries. The recent Commonwealth elections seemed to show that, even in his own State, Mt. Lang's extreme Socialism was no longer in favour, and his confession of virtual bankruptcy will do him no
good.
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