Jack Lang

John (Jack) Thomas Lang was an estate agent and politician, he was born on 21 December 1876 in George Street, Sydney.

In 1903 Lang was the secretary of the Granville Labour League and in 1913 he was president of the Granville Electoral Council. He was associated with St Joseph's Hospital and took part in Catholic social life. In 1907-14 he represented Newington Ward on the Auburn council and was mayor in 1909-11.

In 1920 Labour narrowly won the state election, held under proportional representation. Lang gained one of the Parramatta seats and became treasurer in the Storey ministry; he continued in office until the fall of the Dooley government in 1922.

Lang knew that members of the Communist Party of Australia had infiltrated the Labour Party, and he was determined to eliminate them. He was always relentlessly opposed to communism. But he also argued that 'Capitalism must go'. Conservative forces, already fearing him, responded with a constant attack linking Labour with revolution, even after communists were banned in 1924.

In June of 1924 Lang won an internal party vote to become leader of the state Labour party. Lang then led the Labour party to victory in the 1925 state election. However due to a number of reasons Lang ended up losing the next election in 1927.

By 1930 the Depression was now biting, with severe unemployment and balance of payments problems forcing deflationary policies. Lang’s policy for the October general election included extensive public works to reduce unemployment, restoration of reductions in public service salaries, markets for farmers' produce, and double payment for each family's first child. He also promised to balance the budget. He won the election by twenty seats.

In December Lang's legislation gave relief to mortgagors and tenants, and restricted evictions and the sale of tenants' furniture. However, Hard-pressed for revenue, he introduced a State lottery, a 10 per cent tax on winning bets, and increased the unemployment tax on wages and salaries from threepence to one shilling in the pound.

At a Federal-States conference in Canberra in February 1931 it was agreed that budgets should be balanced within three years. Lang proposed 'the Lang Plan', that interest payments to British bondholders should be suspended, that interest on Australian government borrowings should be reduced to 3 per cent, and that a new form of currency should be based on 'the goods standard'. In March 1931 Lang announced that interest due in London on 1 April would not be paid; he said dole commitments should come first.

In May the Government Savings Bank of New South Wales was forced to close. Next month the Premiers' Conference in Melbourne with Lang's agreement adopted a severe deflationary policy, including cuts in wages and pensions.

In 1932 he faced charges of corruption in the operation of the 'tin hares' in parliament and the federal Prime Minister J. A. Lyons's Financial Agreements Enforcement Act provoked Lang to withdraw more than £1 million in cash from two Sydney banks. The Federal government then used its new powers to take over the revenues of New South Wales, depriving Lang of banking facilities. Massive demands were made on the governor to dismiss him.

Governor Game had been examining Lang's circular instructing public servants not to pay money into the Federal Treasury as required by law. He judged it was illegal. Lang refused to withdraw it and on 13 May 1932 the governor dismissed him. Constitutionally the grounds were dubious as the courts had the duty to determine illegality; but socially and politically Game was justified. Civil disorder threatened; Lang's inner resources were exhausted, his policies as bankrupt as his Treasury, his popular backing decimated.

Exercises:

On a new page in your books put the Heading “Jack Lang”. Under the heading write a 1/2 page summary based upon the information above. After you have completed the summary, write the following sub-headings and the questions in your books and answer them in full sentences using the links to the websites listed below.

Economic Crisis

1. What was Niemeyer's Plan? Explain.
2. What was Lang's Plan? Explain.
3. What was the relationship between The New Guard and the Lang government? Explain.