Australia A fortnight ago the Australian Senate rejected Mr. Theodore's
Bill for the creation of fiduciary notes. A dissolution of the House of Representatives would have been the natural result, but Mr. Scullin wants to cling on until the Senate can be simultaneously dissolved. The Constitution will not admit of this unless the Senate again, after three months, rejects the other House's Bill. It is doubtful whether the Government can exist through three months. Mr. Lang's antics, and the unfortunate dependence of Mr. Scullin on those who support Mr. Lang, have amalgamated a stronger opposi- tion than ever. Mr. Lathan, the former leader, has given place to Mr. Lyons, formerly Mr. Scullin's Acting Trea- surer. A Tasmanian Roman Catholic, he showed great courage and high principles in opposing dishonest or unwise finance last year. The financial difficulties grow, for last week the New South Wales Savings Bank closed its doors after a run, and on Tuesday Mr. Scullin had to announce that the Commonwealth would have to meet the interest due on New South Wales loans in London and New York, as Mr. Lang had informed him that the State defaulted again. New Zealand, suffering like Australia from the fall of wool and other prices, and damaged by the earthquake, is making gallant efforts to economize in time.
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