20 AUGUST 1904, Page 2

On the 12th inst. the Commonwealth Ministry was defeated by

36 votes to 34 on the motion for the recommittal of the clause of the Arbitration Bill granting a preference to Trade- -Unionists, which the Government chose to treat as a crucial case. Mr. Watson, the Premier, moved the adjournment of the House, and requested Lord Northcote to dissolve Parlia-

ment. This the Governor-General has refused to do, and has sent for Mr. Reid, who, it is understood, will have the passive support of Mr. Deakin and his followers. It is a curious situation, for all parties were really agreed on the funda- mental principles of the Arbitration Bill, and the Labour defeat was on a comparatively minor point. A correspondent of the Times declares that Mr. Deakin and the Liberals best represent the average voter, but that they are not so well organised, and therefore not so practically effective, as the two extreme parties. The experiment of a Labour Ministry has not lasted long ; it remains to be seen whether a Conservative Government supported by a much divided Liberal party will be more permanent.