A Significant Development in the 1930s

In: Historical Events

Submitted By jaob12234
Words 353
Pages 2
A major and controversial point in the history of the NSW Government was the dismissal of Premier Jack Lang in 1932. Lang’s second term came amidst the Depression, when unemployment was high and Australia was in debt. He strongly believed in what was termed ‘The Lang Plan,’ which involved Australia increasing spending, reducing interest and, if necessary, repudiating interest repayments to the British until the nation recovered. The Federal Scullin Government strongly disagreed and adopted the Premiers Plan, which reduced spending and increased interest. Lang assisted in overturning the Scullin Government and in 1932 Lyons (the former Labor Treasurer) became Prime Minister of a Federal United Australia Government. Lyons, however, also disagreed with Lang’s antics of refusing to pay his State’s debts. After Lang made a defiant stance by withdrawing State Government money so that it could not be seized by the Commonwealth government, the NSW Governor dismissed him, leaving Lang as the only Premier of an Australian State to have ever been dismissed by a State governor.

When the Depression hit Australia, the public turned to the governments for answers. They responded with the proposal of three plans. The first plan was proposed by E.G. Theodore (Federal Treasurer) and it was a plan of inflation, which was immediately rejected out of fear it would increase prices. The second was the Lang Plan which was also rejected for being too radical. The third became known as the Premiers’ Plan and involved balancing the budget by decreasing government expenditure and increasing taxes. The Federal Scullin Government adopted the third plan under the advice of Sir Otto Niemeyer who was an expert from the Bank of England. Several splits occurred between the Scullin Labor Government and they soon gave way in 1932 to Lyons’ United Australia Party. This was not before the Scullin…...

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