Great Depression in Australia

Australia suffered badly during the period of the Great Depression of the 1930s. The Depression began with the Wall Street Crash of 1929 and rapidly spread worldwide. As in other nations, Australia suffered years of high unemployment, poverty, low profits, deflation, plunging incomes, and lost opportunities for economic growth and personal advancement.

The Australian economy and foreign policy largely rested upon its place as a primary producer within the British Empire, and Australia's important export industries, particularly primary products such as wool and wheat, suffered significantly from the collapse in international demand. Unemployment reached a record high of around 30% in 1932,[1][2][3] and gross domestic product declined by 10% between 1929 and 1931.[4][5]

There were also incidents of civil unrest, particularly in Australia's largest city, Sydney.[6] Though Australian Communist and far right movements were active in the Depression, they remained largely on the periphery of Australian politics, failing to achieve the power shifts obtained in Europe, and the democratic political system of the young Australian Federation survived the strain of the period.

The James Scullin Labor Government had just assumed power with the commencement of the Scullin Ministry on 22 October following the 1929 federal election, however just a couple of days later, "Black Thursday" would mark the start of the Wall Street Crash of 1929 and the subsequent global onset of the Great Depression. From the outset the government was buffeted by the effects of the global economic crisis. With the government unable to implement the deflationary Premiers' Plan, Labor had split by 1931 over how to deal with the crisis, with Treasurer Ted Theodore failing to implement his Keynesian inflationary plans, and New South Wales Premier Jack Lang losing office over his plans to boost the budget through a temporary cessation of interest repayments on debts to Britain and that interest on all government borrowings be reduced by 3% to free up money for injection into the economy. Labor defector Joseph Lyons helped to form the United Australia Party through the ending of the Nationalist Party of Australia and succeeded Scullin as Prime Minister of Australia from the 1931 federal election until his death in 1939.

Thus Australia, unlike the United States, did not embark on a significant Keynesian program of spending to recover from the Depression. Nevertheless, the Australian recovery began around 1932. Australians took consolation from sporting achievements through the Depression, with cricketer Don Bradman and race horse Phar Lap achieving long-lasting fame.

Unemployed marching to see Mitchell, 1931
In 1931, over 1000 unemployed men marched from the Esplanade to the Treasury Building in Perth, Western Australia to see Premier Sir James Mitchell.

1920s: The calm before the storm

The Great War (World War I) had depleted Britain's savings and foreign investments, and wartime inflation had upset the United Kingdom's terms of trade. A sluggish economy in Britain naturally reduced British demand for imports from Australia throughout the 1920s and this had affected Australia's balance of payments. Throughout the 1920s the Australian unemployment rate floated between 6% and 11%.[2]

The Great War had also caused many necessary infrastructure projects to be delayed or abandoned, many of which began in the 1920s, including the Sydney Harbour Bridge[7] and Sydney's underground railway system[8] in addition to the Commonwealth government beginning to fund major highways.[9] New dams and grain elevators were built, and the rural railway network was expanded in nearly every state. Large sums of government money were made available to provide returned First World War servicemen with farmland and agricultural equipment under soldier settlement schemes.[10]

All these publicly funded projects were paid for by loans raised by both state and federal governments. Most of these loans were raised on capital markets in the City of London at an average of £30 million per annum.[11]

1929: The storm erupts

In 1910, the federal government introduced a national currency, the Australian pound, which it pegged to the pound sterling. In effect, Australia was on the gold standard through the British peg. In 1914, Britain removed the pound sterling from the gold standard, creating inflation pressures. Britain returned the pound sterling to the gold standard in 1925 at pre-1913 parity, effectively revaluing both currencies significantly and unleashing crushing deflationary pressures and falling export demand. This had the immediate effect of making British and Australian exports far less competitive in non-British markets, and affected Australia's terms of trade.

In 1929, as an emergency measure during the Great Depression, Australia left the gold standard, resulting in a devaluation relative to sterling. A variety of pegs to sterling applied until December 1931, when the government set a rate of £1 Australian = 16 shillings sterling. This was intended to ease entry of Australian goods into the British and other linked markets.

Falling export demand and commodity prices placed massive downward pressures on wages, particularly in industries such as coal mining. Due to falling prices, bosses were unable to pay the wages that workers wanted. The result was a series of crippling strikes in many sectors of the economy in the late 1920s. Coal miners' strikes in the winter of 1929 brought much of the economy to its knees. A riot at a picket line in the Hunter Region mining town of Rothbury saw police shoot one teenage coal miner dead.

The conservative Prime Minister of Australia, Stanley Bruce, wished to dismantle the conciliation and arbitration system of judicially supervised collective bargaining which had been the cornerstone of Australia's industrial relations system since the 1900s, which would allow employers alone to increase or decrease employee wages in response to economic and market conditions.

The opposition Australian Labor Party, led by James Scullin, successfully depicted Stanley Bruce as wanting to destroy Australia's high wages and working conditions in the 1929 federal election. Scullin was elected Prime Minister in a landslide which saw Stanley Bruce voted out as the Member for Flinders, the only time until the 2007 federal election that a sitting Prime Minister lost his seat.

1929–1935: Scullin and Lang

Otto Niemeyer
Sir Otto Niemeyer of the Bank of England advised Australian governments to pursue a deflationary economic policy and honour their debt repayments.
JackLang
New South Wales Premier Jack Lang rejected the deflationary philosophy of the Premiers Plan and proposed to cease payments on interest on debts to Britain.

The James Scullin Labor Government had just assumed power with the commencement of the Scullin Ministry on 22 October following the 1929 federal election, however just a couple of days later, Black Thursday would mark the start of the Wall Street Crash of 1929 and the subsequent global onset of the Great Depression. From the outset the Scullin administration was buffeted by the effects of the global economic crisis.[12]

Throughout Scullin's term, commodity prices continued to fall, unemployment rose, and Australia's big cities were depopulated as thousands of unemployed men took to the countryside in search of menial agricultural work. The stagnant economy had reduced economic activity and therefore tax revenues. However, the debt commitments of both state and federal governments remained the same. Australia became severely at risk of defaulting on its foreign debt which had been accumulated during the relative prosperity and infrastructure-building frenzy of the 1920s.

The Great Depression in Australia saw huge levels of unemployment and economic suffering amid plummeting export income.[13] Although the economic downturn was a product of international events, Australian governments grappled with how to respond. Conventional economists said governments should pursue deflationary policies. Radicals proposed inflationary responses and increased government spending. Division emerged within the Labor Party over how to respond.[14]

In August 1930, Scullin invited Sir Otto Niemeyer of the Bank of England to come to Australia to advise on economic policy. Niemeyer met with Federal and State leaders at a conference in Melbourne where he recommended a traditional deflationary response of balanced budgets to combat Australia's high levels of debt and insisted that interest on loans be met.[14] It entailed the balancing of the budget through expenditure and wage cuts, without additional overseas borrowing, necessitating reductions in social welfare programs, defence spending and other sweeping cutbacks.[15] The Premiers and Prime Minister Scullin agreed to this Melbourne Plan, which would go on to form the basis of the Premiers' Plan. Ted Theodore, Treasurer in Scullin's Government, supported an inflationary policy of increased government spending in times of a recession, a view espoused in 1936 by John Maynard Keynes. The Senate and Commonwealth Bank (then also acting as the country's central bank) rejected Theodore's spending plans. The Labor Premier of New South Wales meanwhile announced the Lang Plan in February 1931, which included a temporary cessation of interest repayments on debts to Britain and that interest on all government borrowings be reduced to 3% to free up money for injection into the economy.[14]

In 1929, as an emergency measure, Australia took the Australian pound off the gold standard, resulting in a devaluation relative to sterling. Starting in September 1930, the Australian banks began to slowly devalue the Australian pound, and a year later it had been devalued 30% against the Pound Sterling. This had the economic effect of increasing the cost of imported goods and increasing the cost of servicing government overseas debts, which were denominated in the overseas currency, typically in sterling.

Jack Lang, the Labor Party Leader of the Opposition in New South Wales and a fiery left-wing populist, campaigned vigorously against the provisions of the Melbourne Agreement. He was elected in a landslide in the NSW state election of 1930.

Scullin departed for an Imperial economic conference in London, necessitating an absence of five months, during which time he managed to secure reduced interest payments for Australia. With James Fenton as acting Prime Minister and Joseph Lyons as acting treasurer in his absence, Labor continued to negotiate Australia's economic response, with Fenton and Lyons advocating a more conservative fiscal approach and the unions and caucus calling for repudiation of debts.[15]

In 1931 at an economic crisis conference in Canberra, Jack Lang issued his own programme for economic recovery. The Lang Plan advocated the repudiation of interest payments to overseas creditors until domestic conditions improved, the abolition of the Gold Standard to be replaced by a Goods Standard where the amount of money in circulation was linked to the amount of goods produced, and the immediate injection of £18 million of new money into the economy in the form of Commonwealth Bank of Australia credit. The Prime Minister and all other state Premiers refused.

With the rejection of the Theodore and Lang inflationary plans, the governments of Australia met to negotiate a compromise in 1931. The resulting Premiers' Plan required the Australian Federal and State governments to cut spending by 20%, including cuts to wages and pensions and was to be accompanied by tax increases, reductions in interest on bank deposits and a 22.5% reduction in the interest the government paid on internal loans.[14]

The policy contrasted with the approach put forward by the British economist John Maynard Keynes and which was pursued by the United States, which held that governments needed to spend their way out of the Depression. The plan was signed by New South Wales Labor Premier Jack Lang, but he was a notable critic of its underlying philosophy and went on to pursue his own policy of defaulting on debt repayments, which led to confrontation with the Federal Scullin and Lyons Governments and resulted in the Lang Dismissal Crisis of 1932.[13][16]

The Labor Party soon split into three separate factions. Jack Lang and his supporters, mainly in New South Wales, were expelled from the party and formed a left-wing splinter party officially known as the New South Wales Labor Party, commonly known as Lang Labor. The Minister for Public Works and Railways, Joseph Lyons, led a conservative faction, which believed in the deflationary approach of balanced budgets and cuts in spending and opposed defaulting on debt repayments.[15] When the more radical Ted Theodore was reinstated as Treasurer by Scullin on 29 January, Joseph Lyons and James Fenton along with three others resigned from the government, joining the opposition Nationalist Party to form the United Australia Party. The Australian Labor Party would remain in government through the parliamentary term however, with Scullin as Prime Minister, and except for a brief stint by Scullin, Theodore as Treasurer.

Lyons Government

Joseph Lyons
Joseph Lyons, popular United Australia Party Prime Minister from 1932-1939. The Lyons Government supported the Premiers Plan and blocked Lang's efforts to avoid debt repayments.

The stance of Joseph Lyons and James Fenton against the more radical proposals of the Labor movement to deal with the Depression had attracted the support of prominent Australian conservatives, known as "the Group", whose number included future prime minister Robert Menzies. In parliament on 13 March 1931, though still a member of the ALP, Lyons supported a no confidence motion against the Scullin Labor government. The United Australia Party was then formed from a coalition of citizens’ groups and with the support of the Nationalist Party of Australia. Lyons quit the ALP to become parliamentary leader of the newly established United Australia Party, with John Latham, Nationalist Leader of the Opposition, becoming the new party's deputy leader.[17]

In November 1931, Lang Labor dissidents chose to challenge the Scullin Labor government and align with the United Australia Party Opposition to pass a ‘no confidence’ and the government fell. At the 1931 federal election, the ALP were left with just 14 seats after losing 32 seats, though an extra 4 seats were won by NSW Lang Labor. The Lyons-led United Australia Party in Coalition with the Country Party commenced its first term of government in January 1932.[15]

Before being voted out of office, the Scullin government had covered NSW's debt default. The federal government had paid NSW's bond installments and intended to recoup this money from the NSW Government. A dramatic episode in Australian history followed Lyons first electoral victory. When NSW Premier Jack Lang refused to pay interest on overseas State debts, the Lyons government stepped in and paid the debts and then passed the Financial Agreement Enforcement Act to recover the money it had paid. In an effort to frustrate this move, Lang ordered State departments to pay all receipts directly to the Treasury instead of into Government bank accounts. The New South Wales Governor, Sir Philip Game, intervened on the basis that Lang had acted illegally in breach of the state Audit Act and sacked the Lang Government, who then suffered a landslide loss at the subsequent 1932 state election.[18]

Australia would recover relatively quickly from the global financial downturn, with recovery beginning around 1932. Lyons pursued an orthodox fiscal policy, favouring the deflationary economic measures of the Premiers' Plan, and refused to accept NSW Premier Jack Lang's proposals to default on overseas debt repayments. Australia entered the Depression with a debt crisis and a credit crisis. According to author Anne Henderson of the conservative[19] Sydney Institute[1], Lyons held a steadfast belief in "the need to balance budgets, lower costs to business and restore confidence" and the Lyons period gave Australia "stability and eventual growth" between the drama of the Depression and the outbreak of the Second World War. A lowering of wages was enforced and industry tariff protections maintained, which together with cheaper raw materials during the 1930s saw a shift from agriculture to manufacturing as the chief employer of the Australian economy - a shift which was consolidated by increased investment by the commonwealth government into defence and armaments manufacture. Lyons saw restoration of Australia's exports as the key to economic recovery.[20] A devalued Australian currency assisted in restoring a favourable balance of trade.

Varying experiences of the Great Depression

During the Great Depression, different parts of Australian society experienced different hardships, challenges and opportunities. There was increased movement of many people to and from country areas in search of work. City and urban people planted gardens to produce fruit and vegetables. In some urban areas co-operatives were formed based on barter systems to share what was available. Shacks were built on the outskirts of large cities to house some who lost their homes, for example near the beach at Garie in the Royal National Park south of Sydney. There has been anecdotal evidence of families resorting to living in caves with authorities turning a blind eye as there were no other accommodation available.

Unemployed Australians

For Australians, the decade of the 1930s began with problems of huge unemployment, because the fall of the stock markets on Wall Street reduced confidence throughout the world. Most governments reacted to the crisis with similar policies, aimed at slashing back government spending and paying back loans. The Australian government could do little to change the effects of the slump and the tough economic times ahead. This affected the country in many ways.[21]

Because of economic downturn, people’s lives changed drastically. Australia had supplied huge amounts of wool for uniforms during World War 1, and many exports helped Australia achieve a high standard of living in the 1920s. The majority of the people of Australia lived very well prior to the fall, so they felt the effects of the depression strongly. Because of the severe economic contraction, the reduction of purchasing goods, employers couldn’t afford to keep excessive workers. A five-year unemployment average for 1930-34 was 23.4%, with a peak of approximately 30% of the nation being unemployed in 1932. This was one of the most severe unemployment rates in the industrialised world, exceeded only by Germany.[22]

Many hundreds of thousands of Australians suddenly faced the humiliation of poverty and unemployment. This was still the era of traditional social family structure, where the man was expected to be the sole bread winner. Soup kitchens and charity groups made brave attempts to feed the many starving and destitute. The suicide rates increased dramatically and it became clear that Australia had limits to the resources for dealing with the crisis. The depression's sudden and widespread unemployment hit the soldiers who had just returned from war the hardest as they were in their mid-thirties and still suffering the trauma of their wartime experiences. At night many slept covered in newspapers at Sydney’s Domain or at Salvation Army refugees.[23]

The limited jobs that did arise were viciously fought for. The job vacancies were advertised in the daily newspaper, which formed massive queues to search for any job available. This then caused the race to arrive first at the place of employment (the first person to turn up was usually hired.) This is depicted in the Australian film Caddie.[24]

Culture and society

Bradman chaired
Don Bradman is chaired off the cricket pitch in 1930.

Extraordinary sporting successes did something to alleviate the spirits of Australians during the economic downturn. In a Sheffield Shield cricket match at the Sydney Cricket Ground in 1930, Don Bradman, a young New South Welshman of just 21 years of age wrote his name into the record books by smashing the previous highest batting score in first-class cricket with 452 runs not out in just 415 minutes.[25] The rising star's world-beating cricketing exploits were to provide much needed joy to Australians through the emerging Great Depression and Post World War One recovery.

Between 1929 and 1931 the racehorse Phar Lap dominated Australia's racing industry, at one stage winning fourteen races in a row.[26] Famous victories included the 1930 Melbourne Cup, following an assassination attempt and carrying 9 stone 12 pounds weight.[27] Phar Lap sailed for the United States in 1931, going on to win North America's richest race, the Agua Caliente Handicap in Tijuana, Mexico, in 1932. Soon after, on the cusp of US success, Phar Lap developed suspicious symptoms and died. Theories swirled that the champion race horse had been poisoned and a devoted Australian public went into shock.[28]

The 1938 British Empire Games were held in Sydney at the Cricket Ground from 5–12 February, timed to coincide with Sydney's sesqui-centenary (150 years since the foundation of British settlement in Australia).

1932–1939: A slow recovery

Unlike the United States, where Franklin Roosevelt's inflationary New Deal attempted to stimulate the American economy, New Zealand where Michael Savage's pioneering welfare state tried to reduce hardship, or the United Kingdom where rearmament (from 1936) increased deficit spending, there was no significant mechanism for inflationary Keynesian economic policy responses in Australia.

Australia's recovery during the 1930s was led by the manufacturing sector.[29]

Federation in 1901 had granted only limited power to the federal government. For example, income taxes were collected by the State governments. Some argued that Australia's protectionist high tariffs worked to hurt the economy and that influential interest groups sought no change in this aspect of policy. Additionally, there was no significant banking reform or nationalisation of private businesses.

The devaluation of the Australian pound, abandonment of the Gold Standard, recovery of major trading partners like the United Kingdom and public works projects instituted by State and local governments led to a slow recovery. Unemployment, which peaked at 32% in 1932, was 11% at the start of the Second World War compared to 17.2% in the United States.

Legacy of the Great Depression in Australia

Following Lyons' death in 1939, Robert Menzies assumed the United Australia Party leadership and the prime ministership, however the 1940 federal election resulted in a hung parliament. A year later, Menzies' minority government was brought down in the House of Representatives when the two independents crossed the floor and switched their support to Labor, bringing John Curtin to power during World War II. At the 1943 federal election, Curtin led Labor to their greatest House of Representatives victory both in terms of proportion of seats and their strongest national two-party vote. Curtin died in 1945 however, and was succeeded as Labor leader and prime minister by Ben Chifley, who would lead Labor to their first successful federal re-election attempt at the 1946 federal election, before their defeat at the 1949 federal election by the Menzies-led Liberal Party of Australia in Coalition with the Country Party. The comprehensive economic and social reforms and reformist nature of the Chifley Labor government was such that between 1946 and 1949, the Australian Parliament passed 299 Acts, a record until then, well beyond Labor's Andrew Fisher's 113 Acts from 1910 to 1913.

Curtin and Chifley, who often used the spectre of another depression in their campaign rhetoric, utilised emergency wartime powers to introduce a command economy in Australia based on Keynesian principles. Unemployment was virtually eliminated in this period, being reduced to a record low of 1.1%.[30] In 1942, income tax became federally controlled with the states conceding that the war effort needed a centrally controlled financial basis.

In 1944, Curtin announced the plan for a white paper on full employment. This white paper served a variety of roles; to establish the priority of full employment; to ensure the depression would not recur; and to propose ways to make these objectives possible. Dr H C 'Nugget' Coombs as director-general of the Reconstruction Ministry had major input into this policy. The economic theories proposed by J M Keynes in 1936 were a major influence on the white paper.

Between 1947 and 1949 Chifley also attempted to nationalise the banking sector, arguing that public control over the finance industry would assist in preventing further depressions.[31] These plans saw bitter and protracted opposition from the media, conservative parties and the banks themselves. The High Court of Australia ruled that the proposed nationalisation of banks was unconstitutional. The government unsuccessfully appealed the decision in the Privy Council.

In 1949, the combined perceived threats of international and domestic communism and industrial unrest along with the public's waning support for extended rationing and intervention following the close of the War saw the return of Menzies to the prime ministership. Though Menzies was a conservative, his sixteen subsequent years in power saw the government continue the use of Keynesian methods in economic policy as well as further expansion of the Curtin and Chifley economic and social legacies.

See also

  • The Susso, welfare in Australia originating in the Great Depression

References

  1. ^ "The Great Depression". australia.gov.au. 1 October 2009. Retrieved 17 June 2012.
  2. ^ a b Australian Bureau of Statistics (1933). "Year Book Australia 1933 - Chapter 24: Labour, Wages & Prices". Retrieved 22 October 2008.
  3. ^ "The Great Depression - australia.gov.au". Cultureandrecreation.gov.au. 1 October 2009. Retrieved 17 June 2012.
  4. ^ Siriwardana, Mahinda (June 1998). "Can Policy-Makers Learn from History? A General Equilibrium Analysis of the Recovery Policies of the 1930s Great Depression in Australia". Journal of Policy Modeling. 20 (3): 361–392. doi:10.1016/S0161-8938(97)00011-2. Archived from the original on 18 September 2012. Retrieved 22 October 2008.
  5. ^ Wendy Lewis, Simon Balderstone and John Bowan (2006). Events That Shaped Australia. New Holland. p. 126. ISBN 978-1-74110-492-9.
  6. ^ John Birmingham (2000). Leviathan: The unauthorised biography of Sydney. Random House. ISBN 978-0-09-184203-1.
  7. ^ Commonwealth Department of Environment, Heritage and the Arts (14 August 2008). "Sydney's Harbour Bridge - Australia's Culture Portal". Archived from the original on 15 May 2009. Retrieved 27 February 2009.
  8. ^ Bozier, Rolfe. "City Circle". Retrieved 27 February 2009.
  9. ^ Commonwealth Department of Infrastructure, Transport, Regional Development and Local Government (29 August 2006). "A History of Australian Road and Rail". Archived from the original on 21 November 2008. Retrieved 28 February 2009.CS1 maint: Multiple names: authors list (link)
  10. ^ Australian Bureau of Statistics (1925). "1301.0 - Year Book Australia, 1925 - Settlement of Returned Soldiers and Sailors 1914-18". Retrieved 28 February 2008.
  11. ^ L.F. Giblin (28 April 1930). "Australia, 1930: An inaugural lecture". Retrieved 21 October 2008.
  12. ^ "James Scullin - Australia's PMs - Australia's Prime Ministers". Primeministers.naa.gov.au. 21 October 1929. Retrieved 17 June 2012.
  13. ^ a b "In office - James Scullin - Australia's PMs - Australia's Prime Ministers". Primeministers.naa.gov.au. Retrieved 17 June 2012.
  14. ^ a b c d K J Mason; Experience of Natiohood; 3rd Edition; McGraw Hill; 1992.
  15. ^ a b c d "In office - James Scullin - Australia's PMs - Australia's Prime Ministers". Primeministers.naa.gov.au. Retrieved 17 June 2012.
  16. ^ "Joseph Lyons - Australia's PMs - Australia's Prime Ministers". Primeministers.naa.gov.au. Retrieved 17 June 2012.
  17. ^ "Before office - Joseph Lyons - Australia's PMs - Australia's Prime Ministers". Primeministers.naa.gov.au. Retrieved 17 June 2012.
  18. ^ Brian Carroll; From Barton to Fraser; Cassell Australia; 1978
  19. ^ Price, Susan and Boyle, Peter. Abbott's 'stronger', 'happier' Australia means more pain for the poor [online]. Green Left Weekly, No. 1007, 07 May 2014: 5.
  20. ^ Anne Henderson; Joseph Lyons: The People's Prime Minister; NewSouth; 2011.
  21. ^ "The Commonwealth Government's Response to the Depression, The Great Depression, Australia between the Wars, SOSE: History Year 10, VIC | Online Education Home Schooling Skwirk Australia". Skwirk.com. 26 March 1999. Retrieved 17 June 2012.
  22. ^ Paul Kelly "100 years, The Australian Story" ABC Books 2001
  23. ^ Retro Active Series 2 by Maureen Anderson, Anne Low, Jeffery Conroy and Ian Keese
  24. ^ "Timelines of the Great Depression". Retrieved 28 September 2011.
  25. ^ "Cultureandrecreation.gov.au". Cultureandrecreation.gov.au. 7 April 2008. Archived from the original on 1 January 2004. Retrieved 14 July 2011.
  26. ^ Museum Victoria. "Museumvictoria.com.au". Museumvictoria.com.au. Retrieved 14 July 2011.
  27. ^ Museum Victoria. "Museumvictoria.com.au". Museumvictoria.com.au. Retrieved 14 July 2011.
  28. ^ Museum Victoria (6 April 1932). "Museumvictoria.com.au". Museumvictoria.com.au. Retrieved 14 July 2011.
  29. ^ Australian Bureau of Statistics (1938). (February 1939). "Year Book Australia, 1938" (PDF). Australian Bureau of Statistics. Retrieved 31 May 2013.
  30. ^ "A Century Of Change In The Australian Labour Market". Year Book Australia, 2001. Australian Bureau of Statistics. 3 October 2007. Retrieved 29 October 2015.
  31. ^ "In office - Ben Chifley". Australia's Prime Ministers. National Archives of Australia. Retrieved 29 October 2015.

Bibliography

External links

1931 Australian federal election

The 1931 Australian federal election was held in Australia on 19 December 1931. All 75 seats in the House of Representatives and 18 of the 36 seats in the Senate were up for election.

The incumbent first-term Australian Labor Party (ALP) government led by Prime Minister James Scullin was defeated in a landslide by the United Australia Party (UAP) led by Joseph Lyons. To date, no subsequent sitting government at federal level has been defeated after only a single term in office. The election was held at a time of great social and political upheaval, coming at the peak of the Great Depression in Australia. The UAP had only been formed a few months before the election, as a merger of the Nationalist Party, the Australian Party, and a few ALP defectors (including Lyons himself). This was the United Australia Party’s first election since being created. The Labor party would spend the next nearly 10 years in opposition and would not return to government until 1941.

Scullin's position eroded further when five left-wing Labor MPs from New South Wales who supported NSW Premier Jack Lang broke away and moved to the crossbenches in protest of Scullin's economic policy. Late in 1931, they supported a UAP no-confidence motion and brought down the government. The two Labor factions were decimated; massive vote-splitting left them with only 18 seats between them (14 for the official ALP and four for the Langites).

Prior to the election, it was assumed that the Country Party, led by Earle Page, would hold the balance of power, and Page tentatively agreed to support the UAP if that were the case. The two parties campaigned separately and stood candidates against each other in the House of Representatives, but ran joint tickets in Senate. However, the UAP came up four seats short of a majority. The UAP's South Australian Emergency Committee counterparts in South Australia joined the UAP party room, giving the UAP enough numbers to form a majority government in their own right. Page was still willing to form a coalition with the Country Party, but negotiations broke down and Lyons decided the UAP would govern by itself – the First Lyons Ministry was composed solely of UAP members.

1933 South Australian state election

State elections were held in South Australia on 8 April 1933. All 46 seats in the South Australian House of Assembly were up for election. The incumbent Parliamentary Labor Party government led by Premier Robert Richards was defeated by the opposition Liberal and Country League led by Leader of the Opposition Richard L. Butler. Each district elected multiple members.

Australian Labor Party (NSW)

The Australian Labor Party (NSW), commonly known as Lang Labor, was a political group arising from a major breakaway from the Australian Labor Party in New South Wales that operated from 1931 to 1936, when the two groups were reconciled.

Australian Labor Party split of 1931

The Australian Labor Party split of 1931 was caused by severe divisions within the Australian Labor Party over their economic response to the Great Depression in Australia. Amidst intense disagreement between economically conservative and radical elements of the party, two senior ministers in the Scullin Labor government, Joseph Lyons and James Fenton, resigned from Cabinet in January 1931. Lyons, Fenton and their supporters would subsequently merge with the conservative opposition Nationalist Party of Australia to form the new United Australia Party, led by Lyons with the last Nationalist leader, John Latham, as his deputy.In March 1931, the Labor Party split on the left as well, when Eddie Ward, a supporter of radical anti-austerity Premier of New South Wales Jack Lang, won a by-election, and was refused entry to the Labor caucus, resulting in six Lang supporters forming a Lang Labor party on the crossbench. In November, the United Australia Party and Lang Labor succeeded in defeating the Scullin government, resulting in the 1931 federal election in December. The election resulted in a landslide victory for the United Australia Party and the election of Lyons as Prime Minister.While Lang Labor would eventually be largely reabsorbed into the Labor Party, the United Australia Party continued to be the main conservative force in Australia until replaced by the Liberal Party of Australia in 1945.

Blundstone Footwear

Blundstone Footwear ( BLUND-stən) is an Australian footwear brand, based in Hobart, Tasmania, with most manufacturing being made overseas since 2007. The company's best-known product is its line of laceless, elastic-sided, ankle-length boots. The official name for this product line is "The Original", although the boots are colloquially known as "Blunnies" in Australia.

Emergency Committee of South Australia

The Emergency Committee of South Australia was the major anti-Labor grouping in South Australia at the 1931 federal election.

Federal Labor Party (NSW)

The Federal Labor Party were the members of the Australian Labor Party in the state of New South Wales who supported the federal party leadership in the split with the state Labor party which broke away in 1931. Federal Labor retained some seats in the Parliament of Australia but was a minor party in state elections. The dispute was healed in 1936.

History of Australia (1901–45)

The history of Australia from 1901–1945 begins with the federation of the six colonies to create the Commonwealth of Australia. The young nation joined Britain in the First World War, suffered through the Great Depression in Australia as part of the global Great Depression and again joined Britain in the Second World War against Nazi Germany in 1939. Imperial Japan launched air raids and submarine raids against Australian cities during the Pacific War.

James Scullin

James Henry Scullin (18 September 1876 – 28 January 1953) was an Australian Labor Party politician and the ninth Prime Minister of Australia. Scullin led Labor to government at the 1929 election. The Wall Street Crash of 1929 transpired just two days after his swearing in, which would herald the beginning of the Great Depression in Australia. Scullin's administration would soon be overwhelmed by the economic crisis, with interpersonal and policy disagreements causing a three-way split of his party that would bring down the government in late 1931. Despite his chaotic term of office, Scullin remained a leading figure in the Labor movement throughout his lifetime, and served as an éminence grise in various capacities for the party until his retirement in 1949.

The son of working-class Irish-immigrants, Scullin spent much of his early life as a laborer and grocer in Ballarat. An autodidact and passionate debater, Scullin would join the Australian Labor Party in 1903, beginning a career spanning five decades. He was a political organizer and newspaper editor for the party, and was elected to the House of Representatives first in 1910 and then again in 1922 until 1949. Scullin quickly established himself as a leading voice in parliament, rapidly rising to become deputy leader of the party in 1927 and then Leader of the Opposition in 1928.

After Scullin had won a landslide election in 1929, events took a dramatic change with the crisis on Wall Street and the rapid onset of the Great Depression around the world, which hit heavily indebted Australia hard. Scullin and his Treasurer Ted Theodore responded by developing several plans during 1930 and 1931 to repay foreign debt, provide relief to farmers and create economic stimulus to curb unemployment based on deficit spending and expansionary monetary policy. Although the Keynesian Revolution would see these ideas adopted by most Western nations by the end of the decade, in 1931 such ideas were considered radical and the plans were bitterly opposed by many who feared hyperinflation and economic ruin. The still opposition-dominated Senate, and the conservative-dominated boards of the Commonwealth Bank and Loan Council, repeatedly blocked the plans.

With the prospect of bankruptcy facing the government, Scullin backed down and instead advanced the Premiers' Plan, a far more conservative measure that met the crisis with severe cutbacks in government spending. Pensioners and other core Labor constituencies were severely affected by the cuts, leading to a widespread revolt and multiple defections in parliament. After several months of infighting the government collapsed, and was resoundingly defeated by the newly formed United Australia Party at the subsequent 1931 election.

Scullin would remain party leader for four more years but the party split would not be healed until after Scullin's return to the backbenches in 1935. Scullin became a respected elder voice within the party and leading authority on taxation and government finance, and would eventually play a significant role in reforming both when Labor returned to government in 1941. Although disappointed with his own term of office, he nonetheless lived long enough to see many of his government's ideas implemented by subsequent governments before his death in 1953.

John Blight

John Blight (30 July 1913 – 1995) was an Australian poet of Cornish origin, his ancestors having arrived in South Australia on the Lisander, in 1851. In the 1987 recording John Blight, he describes his Cornish background and its influence on his style.

Judah Waten

Judah Leon Waten AM (29 July 1911 – 29 July 1985) was an Australian novelist who was at one time seen as the voice of Australian migrant writing.

Born in Odessa to a Russian-Jewish family, Judah Waten arrived in Western Australia in 1914. He attended Christian Brothers' College, Perth and, moving to Melbourne in 1926, University High School, Melbourne. He joined the Communist Party of Australia while still at school. Between 1931 and 1933, he visited Europe, became engaged in left-wing political activities in England, and spent three months in Wormwood Scrubs Prison.

He wrote novels, short stories and a history of the Great Depression in Australia. His best-known work is a collection of autobiographical short stories, Alien Son, first published in 1952. He travelled to the Soviet Union several times, once with Manning Clark. He was involved in the Realist Writers Group, International PEN, the Fellowship of Australian Writers and served on the Literature Board of the Australia Council.

In 1967, he became a member of the National Committee of the Communist Party. However, he left the party in 1972 to join the pro-Soviet Socialist Party of Australia.In 1979 he was awarded membership of the Order of Australia, and died in 1985 in Melbourne.

In 1985 he was posthumously awarded the Patrick White Award.

Lang Labor Party (South Australia)

The Lang Labor Party was a political party active in South Australia from 1931 to 1934, aligned with Lang Labor and the policies of Premier of New South Wales Jack Lang.

Lennie Gwyther

This page is about Lennie Gwyther. For additional information regarding this time period, see the Great Depression in Australia and Sydney Harbour Bridge.Lennie Gwyther (18 April 1922 - 1992), often referred to as "Lennie the Legend", was an Australian figure of significance due to his 1932 solo horseback journey from Leongatha, Victoria to Sydney, New South Wales as a nine-year old boy. Accompanied by his horse, Ginger Mick, Gwyther undertook an 1000 kilometre or 600 mile journey to watch the opening of the Sydney Harbour Bridge.

Lionel Hill

Lionel Laughton Hill (14 May 1881 – 19 March 1963) was the thirtieth Premier of South Australia, representing the South Australian Branch of the Australian Labor Party.

Parliamentary Labor Party

The Parliamentary Labor Party (also known as the Premiers' Plan Labor Party or Ministerial Labor Party) was a political party active in South Australia from August 1931 until June 1934.

The party came into existence as a result of intense dispute, especially within the Australian Labor Party, about the handling of the response to the Great Depression in Australia. In June 1931, a meeting of state premiers agreed on the Premiers' Plan, which involved sweeping austerity measures combined with increases in revenue. When the Premiers' Plan came up for a vote in South Australia, 23 of Labor's 30 House of Assembly members and two of Labor's four Legislative Council members voted for it. In August 1931, the South Australian state conference of the Labor Party expelled all of the MPs who supported the Premiers' Plan, including Premier Lionel Hill and his entire Cabinet.Expelled MPs (23) in the House of Assembly:

Frederick Birrell

Alfred Blackwell

Thomas Butterfield

Clement Collins

George Cooke

Jack Critchley

Bill Denny

Thomas Edwards

Even George

William Harvey

Lionel Hill

Leonard Hopkins

Robert Hunter

Beasley Kearney

Arthur McArthur

Sydney McHugh

John McInnes

John Pedler

Robert Richards

Eric Shepherd

Frank Staniford

Albert Thompson

Walter WarneExpelled MPs (2) in the Legislative Council:

James Jelley

Stanley WhitfordUpon the failure of a November appeal to the federal executive of the Labor Party, the expelled MPs definitively constituted themselves as a separate parliamentary party.Having soundly lost its majority, the PLP ministry stayed in office until the 1933 election with the support of the conservative opposition—the Liberal Federation to 1932 and the Liberal and Country League afterward. Hill, facing increasing political challenges, had himself appointed Agent-General in London and abruptly quit politics in February 1932. Robert Richards briefly succeeded him as Premier, and led the party into the 1933 election.The party, along with the official Labor Party and the rival splinter Lang Labor Party, performed poorly at the 1933 election. Of the 23 MPs the party had going into the election, only five – Blackwell, McInnes, Pedler, and Richards in the House of Assembly, and Whitford in the Legislative Council, were reelected. The three Labor factions won only 13 seats between them, against 29 for the LCL.Two of the three Lang Labor Party MHAs elected at the 1933 state election, Bob Dale and Tom Howard, left the party in 1933 post-election after falling out with leader Doug Bardolph and formed their own party, the South Australian Lang Labor Party (SALLP).

The four Labor parties merged back into the official Labor Party in June 1934 under the leadership of Andrew Lacey of the official Labor faction, following a successful unity conference. Whitford, the party's sole upper house member, had left the party to sit as an independent by the time of the conference, and was not re-admitted.

Premiers' Plan

The Premiers' Plan was a deflationary economic policy agreed by a meeting of the Premiers of the Australian states in June 1931 to combat the Great Depression in Australia which sparked the 1931 Labor split.

Robert Richards (Australian politician)

Robert Stanley "Bob" Richards (31 May 1885 – 24 April 1967), generally referred to as "R. S. Richards" was the 32nd Premier of South Australia, representing the South Australian Branch of the Australian Labor Party.

Single Tax League

The Single Tax League was a Georgist Australian political party that flourished throughout the 1920s and 1930s based on support for single tax.

Based upon the ideas of Henry George, who argued that all taxes should be abolished, save for a single tax on unimproved land values, the Single Tax League was founded shortly after World War I, and a newspaper, the People's Advocate was published. The League had pockets of support throughout Australia but none more than on the west coast of South Australia, whose farmers and graziers saw merit in single tax theory. A great proponent of the theory was J. Medway Day via his short-lived weekly newspaper The Voice.

The League's sole parliamentary representative was Edward Craigie, who was elected to the South Australian House of Assembly seat of Flinders (covering the League's west coast power base) in the 1930 state election. Though the party first contested the 1918 state election, the onset of the Great Depression in Australia had led people to seek radical solutions and the manifesto of the League seemed as likely to solve their woes as any government devised plan.

Craigie worked tirelessly to have a single tax system instituted in South Australia but faced stiff opposition from the conservative Liberal Federation (and their successors, the Liberal and Country League), which despised the idea of a single tax, and the Labor Party, which was opposed to the League's free trade stance.

Craigie was re-elected at the 1933 and 1938 state elections before being defeated at the 1941 state election, when the ideas of the Single Tax League already seemed an anachronism to most people. The League did not field any further candidates and drifted into obscurity.

Thursday's Child (Hartnett novel)

Thursday's Child is young adult novel by the Australian writer Sonya Hartnett, published in 2000 by Penguin Books. Set during the 1930s Great Depression in Australia, it features a young woman Harper Flute and her family, who live in poverty. It won the annual Aurealis Award for best young-adult novel.Following its publication by Walker Books in the U.K., Hartnett won the 2002 Guardian Children's Fiction Prize, a once-in-a-lifetime book award judged by a panel of British children's writers.

Topics
Effects by area
History
Currency
State economies
Industries
Taxation
Banking and Finance
Regulatory agencies
Energy
Economic conditions
Unions
Trade agreements

This page is based on a Wikipedia article written by authors (here).
Text is available under the CC BY-SA 3.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.