Lang's Second Default

Insolvency, lapping Australia's fiscal shores like a rising tide, washed up two more messes last week amid the flotsam already strewn by repudiating Premier John Thomas Lang of New South Wales (TIME, April 6, 13).

Mess No. 1: Repudiation by Mr. Lang last week of interest on another set of N. S. W. bonds, this time defaulting interest due in the U. S. as well as Great Britain. As he has done before, Prime Minister James Henry Scullin of all Australia announced that the Commonwealth will make good this default, but Mr. Scullin will raid Australia's gold reserve to do it.

Mess No. 2: Doors had been closed for ten days at the 192 branches and 642 agencies of N. S. W.'s Government Savings Bank when it managed to open last week, though paying depositors only "limited" sums." More or less tied up are $425,000,000 in deposits, more than twice as much money as in Manhattan's Bank of United States.

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