151-529: Great Depression and Aftermath Cold War New Left Contemporary Active Historical The Industrial Socialist Labor Party , Industrial Labor Party and the Independent Labor Party were short lived socialist political parties in Australia in 1919 and the early 1920s. The Industrial Socialist Labor Party was founded by radical socialist members of the industrial wing of
302-461: A House-only election as the 1925 Senate term had not expired . Just 9 months after the previous campaign, Australia was in campaign mode once more. Amidst a background of industrial strife and heavy handed government proposals to deal with it, Scullin, who preached conciliation and negotiation between the parties, seemed the moderate choice, despite the more radical stances otherwise held by Labor. Fighting on their home territory and in favour of what
453-541: A Royal Commission enquiring into a scandal known as the Mungana affair , claims of corrupt deals dating back to Theodore's time as Premier of Queensland. Scullin took over the Treasury portfolio in the interim while Theodore went to Queensland to face charges, and was compelled to bring down the 1930 budget personally. Tarred with the political scandal, the budget, which raised taxes, cut spending and still did not deliver
604-418: A blind eye as there were no other accommodation available. 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
755-472: A cage to prevent arrest. Overall campaigning was successful in terms of gaining improved welfare and relief as well as in disrupting and preventing housing evictions across Australia. 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 ,
906-502: A close vote, foreshadowing some of the future controversy he would stir up within the party under Scullin. Scullin led Labor at the 1928 election . He visited widely around the country, and made especial focus on Western Australia , Tasmania and Queensland – states where the Labor party's fortunes had greatly declined in previous years. Scullin was well received and made ground in these areas, as well as in rural districts to counteract
1057-559: 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. 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. The Premiers and Prime Minister Scullin agreed to this Melbourne Plan , which would go on to form
1208-612: 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. 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
1359-551: 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
1510-606: A decade earlier. Scullin's years following his term of government also proved fruitful – he exerted a surprising amount of influence over government policy as Opposition Leader. Scullin was for decades the foremost expert in the Australian parliament on taxation and a variety of other fiscal matters, a fact which rendered his advice very influential within the Curtin government and many of his ideas, having been denied during his own term of government, would eventually be enshrined in
1661-408: A decade earlier. To Scullin's delight, rafts of social and economic policies, so long out of reach for Labor governments, finally became law during the wartime government. Scullin continued to be a leading voice in the movement in favour of further social welfare plans and was influential within the party in the nature and direction these took. Another of Scullin's long held ambitions – eradication of
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#17327803918771812-830: A devoted Australian public went into shock. 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). 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
1963-717: 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
2114-471: A financial establishment in Australia (most notably Commonwealth Bank Board chairman Sir Robert Gibson ) and in the United Kingdom (such as Bank of England representative Sir Otto Niemeyer ) that was firmly opposed to any deviation from orthodox economics in responding to the Great Depression. On the contrary, there was much disagreement with Scullin's parliamentary party as to how to respond to
2265-547: A forceful intellectual contributor to the party during the Billy Hughes years. At the special Labor conference on conscription in 1916, Scullin moved for the expulsion of the conscriptionists, including Prime Minister Hughes and former prime minister Chris Watson . During these years Scullin earned a reputation as a socialist on the left-wing of the party and had radicalised in some of his opinions, particularly his sentiments against imperial domination from London. Scullin
2416-512: A grim report – that "Australian credit is at a low ebb...lower than that of any of the other dominions" and that without drastic steps default and financial collapse was assured. Gibson agreed, and as Chairman of the Commonwealth Bank Board had the power to deny the Australian government loans to finance the budget unless more cuts were made by both the national and state governments. After meeting with Scullin and state premiers,
2567-505: A head. The 1931 East Sydney by-election saw Eddie Ward elected on a specifically pro-Lang platform, and the bitter campaign within the seat saw federal Labor and NSW Labor mutually expel each other from the party. Scullin and the Federal party refused to admit Ward to the caucus, and subsequently Jack Beasley led five others out of the party room to sit on the cross-benches as "Lang Labor". With chaos in Labor ranks and parliament facing
2718-554: A highly controversial plan for economic rehabilitation, the Opposition presented a motion of no confidence . Lyons, Fenton and four others on the conservative wing resigned from Labor and crossed over to the opposition benches. Scullin was reduced to a minority government of just 35 members, depending on the Lang faction to stay in power. Having built a large and popular following among the public, Lyons and his ex-Labor followers joined
2869-415: 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. 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
3020-530: A more conservative fiscal approach and the unions and caucus calling for repudiation of debts. 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
3171-499: A patriotic campaign, wool and wheat prices finally began to rise, and government finances at both Commonwealth and state level were largely under control by October. But with unemployment still rising (it would not peak until 1932), Scullin still faced disillusionment from many within his party, and further gains in ground by Lang. Lang felt threatened by the apparent success of the Premier's Plan though, and renewed talks of unity between
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#17327803918773322-581: 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, and gross domestic product declined by 10% between 1929 and 1931. There were also incidents of civil unrest , particularly in Australia's largest city, Sydney . Though Australian Communist and far right movements were active in
3473-634: A row. Famous victories included the 1930 Melbourne Cup , following an assassination attempt and carrying 9 stone 12 pounds weight. 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
3624-488: A seriously troubled financial outlook when Scullin took office. Scullin's government faced significant limitations on its power to implement its response to the economic crisis. There had been no half-Senate election in 1929, meaning that the Nationalist majority elected at the 1928 election was still in place. The conservative Senate proved hostile to much of Labor's economic program. Scullin also had to contend with
3775-499: 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. Scullin was born in Trawalla, Victoria on 18 September 1876. His parents, John and Ann (née Logan) Scullin, were both Irish Catholics from County Londonderry . His father
3926-546: 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. 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
4077-582: A surplus, was very unpopular with all sections of the community. What is more, the budget proved overly optimistic as Australian revenues continued to plunge and the deficit rose. By August 1930, crisis meetings were held in which Sir Robert Gibson and Sir Otto Niemeyer were demanding further economies in Commonwealth spending. Niemeyer, a representative of the Bank of England, had arrived in Australia to inspect financial conditions on behalf of creditors and had
4228-440: A white Australia, higher import duties and the introduction of a land tax. In federal parliament, Scullin quickly earned a reputation as an impressive and formidable parliamentary debater. He spoke on a wide range of issues over the three years of his term, but concentrated especially on matters relating to taxation and the powers of the Commonwealth , both of which would become signature issues for Scullin throughout his career. By
4379-446: A year when Labor's Andrew Fisher surged in the polls and formed Australia's first majority government. Scullin had done much to personally build the grass-roots organisation of the Labor movement in this seat in the years prior to the election, although its rural character meant it was not considered a seat naturally sympathetic to Labor. His campaign focused on increasing the powers of the Federal parliament and issues such as defending
4530-500: 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. 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
4681-728: 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. 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
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4832-454: The 1906 federal election he was selected as the Labor candidate for the Division of Ballaarat against then Prime Minister Alfred Deakin . Although a race in which Labor had virtually no chance of winning, Scullin ran a spirited campaign and impressed those within the movement for his efforts. On 11 November 1907 he married Sarah Maria McNamara , a dressmaker from Ballarat. The marriage
4983-597: 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. 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
5134-450: The 1931 election that Scullin "had already done much to place Australia on the high road to recovery". Several measures which had been proposed and defeated by the UAP opposition (particularly on gold shipments for loan repayments) were subsequently reintroduced and passed by the UAP once in government, giving Scullin some satisfaction. Furthermore, Scullin consoled himself with the fact that
5285-690: 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
5436-467: The 1949 election . Scullin was frequently bedridden in these last 18 months, and unable to attend many gatherings. His condition deteriorated further after retirement, suffering cardio- renal failure in 1951 and becoming almost permanently bedridden and under the care of his wife. Scullin died in his sleep on 28 January 1953 in Hawthorn, Melbourne from complications arising from pulmonary edema . He
5587-779: The Australian Labor Party (ALP), at a time when the ALP's socialist ideology was a matter of intra-party dispute. It was closely aligned with the Industrial Workers of the World (IWW) and the One Big Union (OBE) movement. The party was formally founded at a conference in August 1919, with Arthur Rae becoming Secretary and Albert Willis President of the party. The party subsequently announced that George Burns and William McCristal would nominate for
5738-484: The Australian Labor Party (ALP), having briefly served as treasurer of Australia during his time in office from 1930 to 1931. His time in office was primarily categorised by the Wall Street Crash of 1929 which transpired just two days after his swearing in, thus heralding the beginning of the Great Depression in Australia . Scullin remained a leading figure in the Labor movement throughout his lifetime, and
5889-568: The City of London at an average of £30 million per annum. 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
6040-473: The Commonwealth Bank to separate out its reserve bank and trading bank functions. The Senate blocked them all, or made amendments which rendered them unrecognisable. A double dissolution was threatened, though for various reasons both practical and political, Scullin never took this step. In June 1930 the government suffered a heavy loss when Theodore was forced to resign after he was criticised by
6191-801: The Evening Echo , a daily newspaper owned by the Australian Workers Union in Ballarat . He would hold this position for the next nine years, which solidified his position within the Victorian Labor movement and made him an influential voice within its ranks, being elected president of the Victorian state branch of Labor in 1918. He and his paper became leading voices against conscription in Victoria during World War I, and
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6342-579: 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
6493-485: 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 Australian Senate , and the conservative-dominated boards of the Commonwealth Bank and Loan Council , repeatedly blocked the plans. With
6644-570: 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. 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,
6795-685: The New South Wales Legislative Assembly seat of Sturt at the 1922 state election but received only 7.88% of the primary vote. He later became a member of parliament for the Labor Party. Other members of the party who later became prominent in the ALP were Jock Garden and Jack Baddeley . This article about an Australian political party is a stub . You can help Misplaced Pages by expanding it . Great Depression in Australia Australia
6946-454: The Premiers' Plan was too much of a betrayal for many to accept, and opposing Lang and Scullin Labor factions continued to plague NSW and Victorian state politics for years. The election proved to be a dispiriting defeat for Scullin. Despite an admirable and vigorous term as opposition leader, Scullin's Labor gained just four seats and actually suffered a small swing against it, with Labor and
7097-477: 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
7248-565: The 'Melbourne Agreement' was reluctantly struck in which further major spending cuts were agreed to, although opposed by a significant minority of Scullin's party. In the heat of this crisis, matters were made worse still by Scullin's decision to travel to London to seek an emergency loan and to attend the Imperial Conference . While in London, Scullin succeeded in gaining loans for Australia at reduced interest. He also succeeded in having King George V appoint Sir Isaac Isaacs as
7399-749: The 1920s, including the Sydney Harbour Bridge and Sydney's underground railway system in addition to the Commonwealth government beginning to fund major highways. 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. 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
7550-599: 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. 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
7701-623: 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
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#17327803918777852-503: The Beasley group crossed the floor to join the Opposition, thereby defeating the government. A snap poll, the 1931 election , was called. Scullin for the first time in Australian politics made heavy use of the radio to reach voters. The campaign was one of the shortest in history, but with open warfare between pro-Lang and pro-Scullin forces in Victoria and New South Wales, and much of the country still facing hardship and grievances against
8003-676: The Catholic Young Men's Society, eventually becoming president of the latter. He was also a skilled debater, participating in local competitions and having an association with the Ballarat South Street debating society for nearly 30 years, which would prove formative to his interest and talent in politics. Scullin was a devout Roman Catholic, a non-drinker and a non-smoker all his life. Scullin became active in politics during his years in Ballarat, being influenced by
8154-407: The Commonwealth dismantle federal arbitration and hand industrial matters back entirely to the states. The proposal was a radical departure from one of the pillars of the so-called " Australian settlement ", and several MPs, led by former PM Billy Hughes, ultimately voted against the government and forced Bruce to seek an additional mandate from the people, at the 1929 election . Crucially, it would be
8305-469: The Depression destroyed most of the political careers of those who occupied government through it – only one Australian premier won re-election from 1927 to 1935, and Scullin's foreign contemporaries Herbert Hoover (in the United States of America), Ramsay MacDonald (United Kingdom), Richard Bennett (Canada) and George Forbes (New Zealand) all suffered similarly devastating elections in the wake of
8456-515: 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
8607-471: 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
8758-677: 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. The Labor Party soon split into three separate factions. Jack Lang and his supporters, mainly in New South Wales, were expelled from
8909-452: The Federal structure in favour of a unified state – was advanced when he was appointed as one of three on a committee to recommend means of implementing uniform taxation. That committee soon proposed eliminating state governments' ability to levy income tax, a proposal which Curtin accepted and greatly weakened the Federal system by making states fiscally dependent on the Commonwealth. Scullin's committee work shone out again in 1944, where he led
9060-542: The Government's mishandling of the economy, and the generally dangerous trajectory of Commonwealth financial policy, predicted catastrophe. He accused the government of spending too much, borrowing too much from overseas sources, and not rectifying a worrying excess of imports over exports: a three-part recipe for disaster. This alarming analysis of the Australian economy would prove to be correct within three years, however relatively few paid attention to Scullin's warning at
9211-529: The Industrial Labor Party, citing they were "dissatisfied with the manner in which the affairs of that party have been carried on". Michael Considine , Labor member for Barrier in the federal House of Representatives from 1917, joined in 1920 after his expulsion from the ALP, and unsuccessfully contested the seat of Darling for the Industrial Labor Party in 1922. Donald Grant , one of 12 Australian IWW members gaoled in 1916 , contested
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#17327803918779362-423: The Labor caucus. In regular contact with Fenton and Lyons in London through the awkward means of cables, Scullin felt he had no choice but to agree to the recommendations of economic advisers, supported by Lyons and Fenton, that government spending be heavily cut, despite the suffering this caused and the disillusionment of the Labor party's base, whom were most affected by these cuts. Party unity began to crumble, and
9513-550: 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
9664-418: 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
9815-416: The Nationalists and the erstwhile followers of Hughes in United Australia Party , with Lyons becoming the new Leader of the Opposition . With a possible default by the Commonwealth looming in June, Scullin's minority government attempted to push through the Theodore Plan. Although under pressure given the prospect of bankruptcy, the Senate and Gibson did not relent, and nearly all the bills needed to implement
9966-420: The Theodore Plan were rejected. Nationwide opinion was divided on the government plan, however many were extremely concerned about the prospect of excessive inflation should the government start printing money to pay its bills. Now May, with unemployment at 27.6% widespread suffering across much of the population, Scullin called another conference of the state premiers to try and forge a new deal, now resigned to
10117-472: 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 . Australia would recover relatively quickly from the global financial downturn, with recovery beginning around 1932. Lyons pursued an orthodox fiscal policy, favouring
10268-569: The UAP losing ground to Lang Labor, which gained 5 seats on a swing of almost 4%. Scullin markedly declined in vigor for his role as Opposition Leader after he was reconfirmed in it after the 1934 election. Tired of the infighting, he took little part in the renewed conciliation talks between the opposition party wings, which in the event failed to resolve the now entrenched divide between Lang and anti-Lang forces. Scullin at many points had stated his resolve to remain leader until such time that he could be sure he would not be succeeded by Lang forces at
10419-474: 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. 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
10570-411: 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%. The Great War had also caused many necessary infrastructure projects to be delayed or abandoned, many of which began in
10721-465: 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. The Great War ( World War I ) had depleted Britain's savings and foreign investments, and wartime inflation had deeply upset
10872-407: The agricultural and manufacturing sectors were compounding the problem, but the most worrying statistic was unemployment, which was just over 13% at the end of 1929. A further problem was the decline in Australian trade. Price for wool and wheat – Australia's two principal exports – had fallen by almost a third during 1929. With debts rising and the ability to repay diminishing, Australia was faced with
11023-494: 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
11174-448: The annual deficit from some £41.08m to £14.65m. Although he had finally secured parliamentary and state approval for a plan, Scullin now faced a revolt from his own party. Cuts to pensions and the poor were particularly hard for Scullin, and many core Labor supporters felt deeply betrayed by this compromise of society's most vulnerable groups. Scullin ardently defend the program, but Lang's influence as an alternative opinion leader of Labor
11325-403: 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
11476-608: 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
11627-699: The charge to change the tax code to operate on a pay-as-you-go basis, which was accepted and implemented by the Curtin government . Ill-health continued to return in bouts, but Scullin remained active if subdued in parliament after Curtin's death and Chifley's succession in 1945. He continued to be influential in fiscal and taxation matters, and the impact of his experience was still occasionally felt in Chifley-era legislation . However his health declined significantly in 1947, and he did not appear in parliament again after June of that year, announcing he would retire at
11778-607: The commonwealth government into defence and armaments manufacture. Lyons saw restoration of Australia's exports as the key to economic recovery. A devalued Australian currency assisted in restoring a favourable balance of trade. 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
11929-400: The country through the brunt of the depression, beset as he was by many enemies and few friends, left deep marks on Scullin's character. As one Country Party parliamentarian observed, "the great burden that was imposed upon him then almost killed him". Scullin won much praise for his performance as Opposition Leader, as he had before coming prime minister. His grasp of economic and trade matters
12080-528: 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. Although
12231-437: The crisis, and a great many were sympathetic to the then radical ideas of inflationary finance and other proto-Keynesian approaches . Furthermore, Scullin and his Treasurer Ted Theodore were vehemently opposed to suggestions from the Opposition and Commonwealth Bank to reduce the deficit by cutting Federal welfare emoluments. Thus began two-years of clashes between the government and its opponents, which would prove to be some of
12382-465: The currency. The NSW contingent in Federal parliament was sympathetic to Lang's views and had become disillusioned with Scullin's leadership and his compromises with conservative interests. At the first meeting of cabinet upon his return, Scullin made things worse by reappointing Theodore as treasurer, despite his name not having been yet cleared over the Mungana Affair. Although arguably Theodore
12533-426: 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 Sydney Institute [1] , Lyons held a steadfast belief in "the need to balance budgets, lower costs to business and restore confidence" and
12684-463: The depression. In 1951, 114 manufacturers in Melbourne donated to a fund for Scullin's retirement. Having not forgotten his advocacy of tariffs during their height of unpopularity in the depression, several companies went as far to state that Scullin's efforts had "commenced a new era in the secondary industry field in Australia" and that the success of Australia's wartime industry was due to Scullin's protection of industry during its most vulnerable period
12835-504: 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. 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
12986-404: 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
13137-579: The economy around. Appeals were made, both to the Australian public and on overseas markets, to bolster confidence and boost government bond subscriptions. A "Grow More Wheat" campaign was launched in 1930 to encourage farmers to plant a record crop and attempt to improve Australia's serious trade deficit , although ultimately Scullin was unsuccessful in convincing the Senate or the Commonwealth Bank to support this program through price guarantees. At
13288-539: The economy as the predominant concern of Australian politics. James Scullin was succeeded by John Curtin , who proved a necessary salve to Labor wounds. Under Curtin's leadership, most of the Lang Labor faction returned to the mainline Labor fold, though Lang and some supporters remained obdurate. During these years Scullin was far quieter in the backbenches, only occasionally taking an active role in parliament, though still an active local member in his seat of Yarra. He
13439-466: 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. Many hundreds of thousands of Australians suddenly faced
13590-416: The effects of the slump and the tough economic times ahead. This affected the country in many ways. 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
13741-481: The end of his first year in parliament he had a reputation as "one of the most ardent land-taxers in the Labor party" and had spoken frequently on breaking up "the land monopoly which has for so many years retarded the growth of this young country." Scullin enthusiastically supported Fisher's referendum questions in expand Commonwealth power over in 1911 and again in 1913 , though in both cases all amendment proposals were rejected by comfortable majorities. Although he
13892-418: The fact that compromise with the Opposition was inevitable if any plan could be implemented. A new orthodox plan calling for 20% reductions in spending across the board for all governments was struck, and such cuts to also apply to social welfare spending. Combined with a mass loan conversion that would reduce the interest rates paid on government bonds by 22.5%, Australia now had a consensus as to how to reduce
14043-475: The factions had appeared with the improvement of economic conditions. Lang Labor subsequently forced a showdown with the Scullin government in November. With allegations arising that Theodore had abused his position as treasurer to buy support in New South Wales away from the Lang faction, Beasley and his followers called for a royal commission into the charges. Scullin refused. To the surprise of many observers,
14194-526: The federal level, but fate intervened and Scullin's health, always middling, declined significantly in 1935. Bedridden several times, Scullin tendered his resignation on 23 September 1935, citing a physical inability to continue as leader. By the time of Scullin's resignation Australia's economy had recovered significantly and business confidence had returned to a large extent. The belligerent actions of Japan in China , and then Germany in Europe , began to overtake
14345-678: The first Australian-born Governor-General of Australia , despite the King's personal opposition and the strong objections of both the British establishment and the conservative opposition in Australia, who attacked the appointment as tantamount to republicanism. However a leadership vacuum was left behind, with Scullin out of the country for the whole second half of 1930, James Fenton (as acting prime minister) and Joseph Lyons (as acting Treasurer) were left in charge. They insisted on pursuing deflationary policies and orthodox solutions to degrading Commonwealth budgetary position, arousing great opposition in
14496-411: 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 1931, as an emergency measure during the Great Depression, Australia left
14647-484: 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
14798-448: The government as well, and several of his suggestions from the opposition bench made their way into government legislation. In March 1927 Scullin became the parliamentary ALP's deputy leader. As Deputy Leader, Scullin excelled in taking the case to the government. Throughout 1927 Scullin earned particular acclaim in keeping the ageing Bruce government to account on economic and financial matters. A series of speeches by Scullin that year on
14949-473: 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 . James Scullin James Henry Scullin (18 September 1876 – 28 January 1953) was an Australian politician and trade unionist who served as the ninth prime minister of Australia from 1929 to 1932. He held office as the leader of
15100-420: The government measures designed to combat the crisis still in limbo due to opposition either from the Senate or refusal of funding by the Commonwealth Bank. In February Scullin and Theodore presented a comprehensive plan at a conference of the state premiers that attempted to straddle both orthodox and radical approaches. While maintaining heavy budgetary cuts, it also planned to provide economic stimulus to help
15251-438: The government, a Labor defeat was virtually assured. Labor was defeated in a massive landslide. The official Labor Party was reduced to a mere 14 seats (Lang Labor won another 4), and Lyons became prime minister. However, Scullin was not held responsible for the debacle and stayed on as Labor leader. To date, it is the last time that a sitting Australian government has been defeated after a single term. The heavy task of leading
15402-404: 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. The stance of Joseph Lyons and James Fenton against the far more radical proposals of the Labor movement to deal with
15553-411: The government. The effect these developments would have on the Australian economy were not yet known, as economic conditions were already agreed to be poor, but the portents of future disaster were there. Three of the last four Commonwealth budgets had been in substantial arrears funded by overseas borrowing, and the value of Australian debt had been steadily declining in foreign markets. Sluggish years for
15704-486: The gulf between the moderate and radical wings of the party began to grow. Returning to Australia in 1931, Scullin was faced with a party now deeply divided over how to respond to the Depression. Jack Lang had won election as Premier of New South Wales and had become a leading alternative voice within Labor, advocating radical measures including repudiation of interest on debts to Britain and printing money to pay for public works programs to relieve unemployment and inflate
15855-443: 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 male suicide rate spiked in 1930 and it became clear that Australia had limits to the resources for dealing with the crisis. The depression's sudden and widespread unemployment hit
16006-649: The ideas of Tom Mann and the growing labour movement in Victoria, as were many of his later ministerial colleagues such as Frank Anstey, John Curtin and Frank Brennan. He became a foundation member of his local Political Labor Council in 1903 and was active in local politics thereafter. He was a campaigner and political organizer for the Australian Workers' Union , the union movement with which he would remain most closely associated throughout his career. He spoke often around Ballarat on political issues and helped with Labor campaigns at state and federal level. At
16157-522: The increasingly urban nature of Labor. Labor managed to take eight seats, significantly reducing the Coalition's previously large majority. This was due to a swing against the government rather than a swing towards Labor, but was still enough to put Labor within striking distance of winning the next election. Although Labor came up well short of forming government, the campaign was viewed as a success and Scullin's reputation remained intact as leader. 1929
16308-714: The largest majority that Labor had ever won at the time. However, the party had many diverse interests and factions within it, ranging from metropolitan socialist radicals to rural professional politicians. The Scullin government immediately rolled back several of the Bruce government's measures deemed to be anti-labor – including changes made to industrial arbitration and competition, and the immediate abolition of compulsory military training . Scullin also chose not to take residence in The Lodge , which had only been completed two years prior, citing its unnecessary extravagance and cost to
16459-494: The most turbulent in Australian political history. Ongoing industrial disputes on the coalfields of the Hunter Valley and Newcastle dragged on throughout Scullin's government, the Commonwealth lacking the power to coerce a solution and numerous negotiations between owners and workers collapsed. As a Labor Prime Minister, expectations ran high that Scullin would force the mine owners to submit to worker demands. Scullin
16610-476: The note issue. This 'Theodore Plan' was approved by narrow majorities of the state premiers and then the parliamentary party. However, Jack Lang rejected the plan, stating instead that Australia should default on its British debts until more equitable repayment terms were agreed to. Lyons and the conservatives within the party were horrified, as were the Opposition, seeing note issue as a sure path to hyperinflation and complete economic ruin. In March matters came to
16761-457: The overall war effort, except where finance was concerned. However, he was given the office between Curtin and Treasurer Ben Chifley 's, and his advice would have significant bearing upon the policy and political tactics of the Curtin government. Scullin was a leading voice in caucus in support of the new PM, urging it to give Curtin the powers to run his own government without the caucus interference Scullin himself had so frequently fallen afoul of
16912-588: 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. 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
17063-556: The party in 1927 and then Leader of the Opposition in 1928. After Scullin 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
17214-475: 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
17365-427: 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
17516-572: The public library and South Street Debating Society . He joined 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 Australian 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
17667-664: 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 . Many Australians campaigned at a community level through organisations such as the Unemployed Workers Movement to demand improved welfare and relief. Authorities often attempted to repress protest through the use of repressive laws including bans on street marches and free speech. These in turn were resisted by campaigns of civil resistance, with Melbourne social realist artist Noel Counihan famously speaking from inside
17818-466: The same time unemployment had hit a record high of 14.6% in the March quarter of 1930. Scullin's election promise of unemployment insurance was discussed in this period, but with dire predictions for government finance the promise was continually stalled. Scullin made major proposals to change the constitutional amendment process; expand Commonwealth powers over commerce, trade and industry; and to break apart
17969-585: The seat at the ensuing 1922 Yarra by-election with more than three-quarters of the vote. With his win, he and his family relocated to Richmond , away from his long-time home of Ballarat, and to an electorate completely different in character to his earlier seat of Corangamite. However his new proximity to the Federal parliament (still located in Melbourne) and representation of a safe seat afforded many more political opportunities and freedoms, and soon Scullin
18120-563: The seats of Illawarra and Cook in the 1919 Australian federal election . They were opposed by endorsed ALP candidates and received less than 10% of the primary vote. In January 1920, the party merged with the Socialist Labor Party , taking the name of the Socialist Labor Party. In February 1921, the parliamentarian Percy Brookfield and several other members split from the Socialist Labor Party and formed
18271-441: 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. 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
18422-437: 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%. 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
18573-491: 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. In November 1931, Lang Labor dissidents chose to challenge the Scullin Labor government and align with the United Australia Party Opposition to pass
18724-543: The taxpayer. In 1929, the Scullin government established the Canberra University College. But the government's attention would soon shift to the economy. On the very day Scullin arrived in Canberra after the 1929 election , The Sydney Morning Herald announced large losses on Wall Street . On 24 October, two days after Scullin's cabinet was sworn in, news of Black Thursday reached Australia and
18875-431: The time, nor the prescient 1927 volume The Boom of 1890 – And Now by E.O.G. Shann , on which Scullin based many of his arguments. In March 1928, Matthew Charlton resigned as federal Labor leader and was replaced by Scullin in a unanimous motion, although some had their eye on newcomer Ted Theodore as a more promising replacement. The ensuing contest over the position of Deputy Leader saw Theodore denied once again in
19026-406: The unemployed and farmers, as well as repaying short-term debts and overdrafts held by British banks. This would require substantial further funds to be advanced by the Commonwealth Bank, however Gibson soon made it clear he would not do so unless significant cuts to social spending (particularly pensions) was also implemented. Scullin refused, instead planning to pay for the plan through the expanding
19177-470: The wages that workers wanted. The result was a series of 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
19328-484: The wave of sweeping reforms made by the Curtin/Chifley governments. Scullin was a well-respected figure in politics. Although the target of much bile and disagreement over his policies, he was personally extremely well regarded and had a reputation as a fearless and stoic leader of great personal integrity and fortitude. His resignation as leader in 1935 caused even longtime critic Jack Beasley to admit that Scullin
19479-535: The weak are being crushed by the strong." Scullin's wife, Sarah , was interred with him in 1962. Labor stalwarts Arthur Calwell , Esmond Kiernan , Herbert Cremean and Edward Grayndler are all buried adjacent to the Scullin plot. Scullin had defended his record in government throughout his later career, and took pride in having been prime minister in times which might have broken a lesser figure. However he lived long enough to see many of his economic ideas vindicated by history, particularly inflationary financing, which
19630-486: The young James attended school at Mount Rowan State School until 12. Thereafter he held various manual odd-jobs in the Ballarat district until about 1900, and for ten years from 1900 he ran a grocer's shop in Ballarat. In his mid-20s he attended night school, was a voracious reader and became somewhat of an autodidact . He joined a number of societies and was active in the Australian Natives' Association and
19781-573: Was a passionate advocate for Australian arts, and with the Fellowship of Australian Writers , was responsible for a dramatic boost to the Commonwealth Literary Fund 's budget in 1939. Curtin became prime minister in 1941 after two independents joined Labor in voting down the government's budget. Curtin came to rely on Scullin greatly for his counsel. Scullin took no portfolio nor played any part in military strategy or much of
19932-551: Was a prominent figure on the Labor campaign trail and appearing at events around the country. In these years Scullin's renown increased considerably within the party and the nation at large. He became one of the leading lights of the parliamentary opposition, and was quickly elevated to the Australian Labor Party National Executive in February 1923. During his years as an opposition backbencher , Scullin spoke frequently and passionately. He
20083-554: Was a railway labourer, who emigrated to Australia in his 20s. His mother joined her husband in Australia later. James was the fourth of eight children, and grew up in a tight-knit and devoutly Catholic home. James attended the Trawalla State School from 1881 to 1887 and earned an early reputation as an active and quick-witted boy, though never physically robust. These characteristics would remain with him for life. The family moved to Mount Rowan, Ballarat , in 1887, and
20234-563: Was a still popular status-quo in industrial relations law, Scullin and Labor romped home in the polls, winning 46 seats in the 75 seat chamber, the most they had ever won at the time. Labor even managed to oust Bruce in his own seat. The party was jubilant and Scullin enthusiastically accepted commission to become prime minister. He was to be Australia's first Catholic prime minister. Prime Minister of Australia Term of government (1929–1932) Ministries Elections Scullin came to Canberra amid rapturous applause from his supporters and
20385-565: Was accorded a state funeral in St Patrick's Cathedral, Melbourne with a Requiem Mass presided over by Archbishop Daniel Mannix . He was buried in the Catholic section of Melbourne General Cemetery . Over his grave the federal Labor executive and the ACTU erected a monument on behalf of the Labor movement of Australia. The inscription reads: "Justice and humanity demand interference whenever
20536-427: Was affected 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 had 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
20687-426: Was an éminence grise in various capacities for the party until his retirement from federal parliament in 1949. He was the first Catholic , as well as the first Irish-Australian , to serve as prime minister. 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 made the most of Ballarat's facilities –
20838-453: Was an able debater and parliamentary performer, but also carved out a niche as a leading voice on several issues, particularly taxation and economic policy. Some of Scullin's charges on land-tax avoidance by wealthy pastoralists were so damning that the Bruce government called a Royal Commission specifically to investigate his claims. Scullin's competence on financial matters proved useful to
20989-497: Was an active member of the Labor Party herself, and would remain well-informed on politics. Very unusually among Australian political spouses (and even more so during the period of her husband's career), Sarah would often attend parliamentary sessions, and would even be present during the debate and vote that brought her husband's government down. In 1910 Scullin won his first election as the Labor candidate in Corangamite , in
21140-496: Was available. Single unemployed men had to make do in illegal camps or makeshift hostels in disused buildings, such as the old Redfern Fish Market . 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
21291-399: Was childless. Due to Scullin's frequent and often serious bouts of illness over his long career, Sarah served the role as her husband's protector and was a crucial source of support and care for her husband, particularly in his final years. She was frequently called to assist or stand in for her husband at social occasions when her husband's illness prevented him from attending personally. She
21442-489: Was dogged by industrial disputes, the worst of which occurred within the waterfront, timber and coalmining sectors. The Bruce government struggled to manage these episodes – its proposal by referendum for greater Commonwealth industrial powers had been rejected in 1926. After months of deadlock and protests over decisions of the Federal Arbitration Court , Bruce reversed course entirely by proposing that
21593-538: Was fiercely patriotic and critical of the war, particularly Britain's leadership of the dominions within it. In the early 1920s Scullin was prominent in the push for the party to adopt economic socialisation policies as part of its platform. The death of federal Labor leader Frank Tudor left a vacancy in the very safe urban seat of the Division of Yarra in Melbourne . Scullin handily won Labor preselection over several other candidates, and in February 1922 he took
21744-422: Was growing, now with state branches in Victoria and South Australia rebelling against the Premiers' Plan . Traumatic as it was, the government finally now was implementing an economic plan, and things began to improve. Domestic confidence, and confidence in the British loan market, began to recover and default was averted. Voluntary acceptance of lower bond rates on government debt had been extremely successful in
21895-399: Was quite radical by the standards of his times but an accepted pillar of Keynesian economics adopted by Australia and most other Western governments in the late 1930s and 1940s. Indeed, John Maynard Keynes himself would state of Scullin's Premier's Plan which caused him so much woe and electoral unpopularity that it "saved the economic structure of Australia". The Economist admitted after
22046-426: Was resoundingly defeated by the newly formed United Australia Party at the subsequent 1931 election . Scullin would remain party leader for four more years, losing the 1934 election 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
22197-432: Was still formidable, and on several matters he succeeded in forcing changes to government policy or banding with the Country Party to force amendments to government legislation. However failure to reunite the party and dislodge Lang as the alternative voice of the party failed in the lead-up to the 1934 election left the party at a distinct disadvantage. Ultimately, Scullin and his Commonwealth supporters' implementation of
22348-515: Was sympathetic, but refused to go beyond negotiations and inducements to end the disputes. Many within the New South Wales Labor branch were infuriated and felt they had been betrayed, catalysing a beginning of a separation between the state branch (led by fiery demagogue Jack Lang ) and the federal party led by Scullin. Heavily indebted and with conditions worsening, Scullin and Theodore took many novel steps in an attempt to turn
22499-468: Was the most competent man available to implement Scullin's economic program, Lyons and Fenton (as well as several others) were strongly opposed and resigned from the cabinet in protest. Making matters worse, Theodore had become a fierce personal rival of Lang within the New South Wales branch, and his return as treasurer further isolated radical elements of the party. At the same time, the economy had continued to decline and unemployment had soared, with most of
22650-553: 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
22801-424: Was well regarded in his district and hard-working and ardent, it was not enough to shield him from Joseph Cook 's resurgent and now united Commonwealth Liberal Party in the election of 1913 , and Scullin suffered the fate of many Labor members in rural districts at that year's election. He tried and failed to reacquire the seat at the 1918 Corangamite by-election . After defeat Scullin was appointed as editor of
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