Australian Finance Mr. Scullin, shortly after his return to Australia,
was faced by what seemed to be an ultimatum from the extremists in his Party who demand an inflationist policy. It was said that at a meeting of the extremists in Sydney Mr. Scullin was instructed by resolution to declare for inflation in his promised speech to the electors of Parkes,- where a by-election campaign is in progress. This meant that he must toe the line at the bidding of a Caucus or go out of politics. It seems, however, that the first reports of the Sydney meeting were exaggerated. If they were not, the extremists at least had wise second thoughts, for they stated the next day that they had no idea of forcing Mr. Scullin's hand. The forcing may come after the by-election, where Labour is not at all confident of winning the seat. Mr. Scullin comes well out of the trial of strength so far as it has gone. He has boldly said that a leader must lead, that his financial doctrine must be his own, that dictation to a Prime Minister is intolerable, and that Parliament is the proper place for a decision. Further, he approves of the excellent idea of a "Three Year Plan" of retrenchnient.
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