Important People
‘Red Ted’ Theodore served an interrupted term as treasurer in Scullin’s government during the Great Depression. He took office days before the Wall St crash. He was well read in economics, and was an early advocate of Keynesian ideas. However, the Scullin government was impeded by a hostile Senate, a recalcitrant Commonwealth Bank and a divided Labor Party, which made it extremely difficult for Theodore to implement his policies. In addition, corruption allegations led Theodore to stand aside as treasurer during a crucial period. Losing his seat at the subsequent election, Theodore then pursued a successful business career. More
James Henry Scullin.
Prime Minister from 22 October 1929 to 6 January 1932
Jim Scullin was the first Catholic to become Australian Prime Minister, the first Prime Minister to have come from an Irish background, and the first Labor Prime Minister born in Australia. He became Prime Minister in 1929 - the start of the Great Depression - a devastating time for Australia and the rest of the world. In his two years in office he was confronted by two major crises - the severe economic hardship brought on by the Depression, and the splitting of his party - Labor - into three. Facing a hostile Senate, his government was unable to pass the legislation it wanted to deal with the Depression. More
Prime Minister from 22 October 1929 to 6 January 1932
Jim Scullin was the first Catholic to become Australian Prime Minister, the first Prime Minister to have come from an Irish background, and the first Labor Prime Minister born in Australia. He became Prime Minister in 1929 - the start of the Great Depression - a devastating time for Australia and the rest of the world. In his two years in office he was confronted by two major crises - the severe economic hardship brought on by the Depression, and the splitting of his party - Labor - into three. Facing a hostile Senate, his government was unable to pass the legislation it wanted to deal with the Depression. More
Joseph Lyons
Lyons was a leading member of the Labor party during the Scullin years and was acting-Treasury following the resigning of the Ted Theodore and while Scullin was on a trip to the UK. Lyons was a supporter of "orthodox" economic policies in regards to the Depression and openly disagreed with Theodore's plan.
Lyons' difficulties with the ALP caucus continued throughout December 1930-January 1931. Caucus accused him of collaborating with the Leader of the Opposition, JG Latham (which was true), who was suggesting a cross-party government of national unity. When Scullin returned to Australia on 6 January 1931, he affirmed Lyons' policies as Acting Treasurer but ignored his wish to become Treasurer. Lyons resigned from the ministry in protest on 29 January and, soon after, defected from the ALP. Others followed. Lyons became the principal figure in a new body, the 'All For Australia League', which formed from ALP defectors and dissident Nationalists. In March-May 1931 the league worked to establish a new party, the United Australia Party (UAP) from the merger of Lyons' followers, the Nationalists and anti-Labor citizens' groups. Lyons was elected to UAP leadership unopposed, and Latham became his deputy.
Scullin's ALP government fell through the loss of a confidence motion on 25 November 1931, when UAP opposition and Lang Labor (another group of ALP defectors led by the NSW premier) combined to defeat the government. Parliament was then dissolved. In the subsequent general election on 19 December 1931, the ALP was bundled from office by an electorate battered by the depression, tired of ALP disunity and dissatisfied with government's handling of the economy. UAP won an absolute majority and was able to form a government without having to rely on a coalition with the Country Party. With the political and financial crises of 1931-1932 behind him, Lyons settled into his role as head of the UAP government. His government implemented the Premiers' Plan for handling the Depression, which the former Scullin ALP government had devised. More
Lyons was a leading member of the Labor party during the Scullin years and was acting-Treasury following the resigning of the Ted Theodore and while Scullin was on a trip to the UK. Lyons was a supporter of "orthodox" economic policies in regards to the Depression and openly disagreed with Theodore's plan.
Lyons' difficulties with the ALP caucus continued throughout December 1930-January 1931. Caucus accused him of collaborating with the Leader of the Opposition, JG Latham (which was true), who was suggesting a cross-party government of national unity. When Scullin returned to Australia on 6 January 1931, he affirmed Lyons' policies as Acting Treasurer but ignored his wish to become Treasurer. Lyons resigned from the ministry in protest on 29 January and, soon after, defected from the ALP. Others followed. Lyons became the principal figure in a new body, the 'All For Australia League', which formed from ALP defectors and dissident Nationalists. In March-May 1931 the league worked to establish a new party, the United Australia Party (UAP) from the merger of Lyons' followers, the Nationalists and anti-Labor citizens' groups. Lyons was elected to UAP leadership unopposed, and Latham became his deputy.
Scullin's ALP government fell through the loss of a confidence motion on 25 November 1931, when UAP opposition and Lang Labor (another group of ALP defectors led by the NSW premier) combined to defeat the government. Parliament was then dissolved. In the subsequent general election on 19 December 1931, the ALP was bundled from office by an electorate battered by the depression, tired of ALP disunity and dissatisfied with government's handling of the economy. UAP won an absolute majority and was able to form a government without having to rely on a coalition with the Country Party. With the political and financial crises of 1931-1932 behind him, Lyons settled into his role as head of the UAP government. His government implemented the Premiers' Plan for handling the Depression, which the former Scullin ALP government had devised. More
NSW Premier Jack Lang
When the Nationalist-Country Party Coalition government of Thomas Bavin crumbled at the 1930 elections in the face of the Depression onslaught. J. T. (“Jack”) Lang was able to form his second Labor Government. Lang’s initial program to maintain wages and to use loans to fund public works, create jobs and generate prosperity, was frustrated by the Federal Government, the Legislative Council. The Supreme and High Courts also blocked his second attempt to abolish the Legislative Council. His 1931 ‘Lang Plan’ of inflation, reduced interest rates and loans re-negotiation was rejected by the Federal Scullin Labor Government. Lang then refused to pay loan interest and the Commonwealth commenced legal action. The NSW Labor party split into State Labor (supporting Lang) and Federal Labor (supporting Scullin). Reluctantly, Lang then agreed to the Premiers’ Plan to cut government expenditure but did little to implement it. The split in Labor ranks worsened and precipitated an early Federal election in December 1931 which was won easily by the United Australia Party led by Labor’s former Treasurer, Joseph Lyons. More
When the Nationalist-Country Party Coalition government of Thomas Bavin crumbled at the 1930 elections in the face of the Depression onslaught. J. T. (“Jack”) Lang was able to form his second Labor Government. Lang’s initial program to maintain wages and to use loans to fund public works, create jobs and generate prosperity, was frustrated by the Federal Government, the Legislative Council. The Supreme and High Courts also blocked his second attempt to abolish the Legislative Council. His 1931 ‘Lang Plan’ of inflation, reduced interest rates and loans re-negotiation was rejected by the Federal Scullin Labor Government. Lang then refused to pay loan interest and the Commonwealth commenced legal action. The NSW Labor party split into State Labor (supporting Lang) and Federal Labor (supporting Scullin). Reluctantly, Lang then agreed to the Premiers’ Plan to cut government expenditure but did little to implement it. The split in Labor ranks worsened and precipitated an early Federal election in December 1931 which was won easily by the United Australia Party led by Labor’s former Treasurer, Joseph Lyons. More
Sir Otto Niemeyer
During the early stages of the Depression on request from the Australian government, the NSW government and the Commonwealth Bank Sir Otto Niemeyer of the Bank of England visited the country to investigate its financial standing and to provide recommendations in economically responding to their plight. Niemeyer argued a "orthodox" or "classical" economic approach that involved deflation through mass spending cuts in public works, wages and that under no circumstances were any of the governments to default or repudiate on loans from British bond-holders. His visit was welcomed by many of Australia's leading politicians including most of the premiers, Joseph Lyons and James Scullin while more politicians like Lang used his visit to further demonstrate how the Depression was a product of the greed from British "financial vultures".
During the early stages of the Depression on request from the Australian government, the NSW government and the Commonwealth Bank Sir Otto Niemeyer of the Bank of England visited the country to investigate its financial standing and to provide recommendations in economically responding to their plight. Niemeyer argued a "orthodox" or "classical" economic approach that involved deflation through mass spending cuts in public works, wages and that under no circumstances were any of the governments to default or repudiate on loans from British bond-holders. His visit was welcomed by many of Australia's leading politicians including most of the premiers, Joseph Lyons and James Scullin while more politicians like Lang used his visit to further demonstrate how the Depression was a product of the greed from British "financial vultures".
Eric Campbell (1893-1970), solicitor and leader of the New Guard, was born on 11 April 1893 at Young, New South Wales, fourth son of native-born parents Allan Campbell, solicitor, and his wife Florence Mary, née Russell. He was educated privately and was a cadet-member of the Coronation Contingent which visited England in 1911. While an articled clerk in his father's office, he was commissioned in 1914 in the volunteer Australian Field Artillery. In April 1916 he joined the Australian Imperial Force as a lieutenant and was promoted captain in May and major next year. In 1930 he became recruitment officer for the committee run by (Sir) Robert Gillespie and (Sir) Philip Goldfinch, a secret vigilante group of businessmen, ex-officers and graziers alarmed by the Depression and the election of J. T. Lang's Labor government; they were later known as the Old Guard. At a meeting at the Imperial Service Club on 18 February 1931 Campbell, disappointed with the Old Guard, was the principal founder of the New Guard, which stressed loyalty to the throne and British Empire, and wanted 'sane and honourable' government and the 'abolition of machine politics'; Campbell saw patriotism as its key virtue. The guard aimed at uniting 'all loyal citizens irrespective of creed, party, social or financial position'. As general officer commanding, Campbell organized it on military lines. He claimed that in an 'emergency' it could maintain essential services including Bunnerong power house; the police attested to the guard's efficiency. With a peak membership of over 50,000, the guard rallied in public, broke up 'Communist' meetings, drilled, vilified the Labor Party and demanded the deportation of Communists. More
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