148
23rd August, 1928
PERSONAL AND CONFIDENTIAL
My dear P.M.,
I send a most confidential hand written letter to you by this
mail.
I enclose copies of Dean Inge's [1] article in the 'Evening
Standard' and of the ensuing correspondence.
I enclose copy of a leading article 'Australian Finance' from
today's 'Times'. I was in some degree responsible for this in that
when Senator McLachlan [2] showed me a telegram from you about the
success of the �21 million Conversion Loan in Australia, I
suggested to him that I should see the Editor of the 'Times' and
try to get a good leader. He agreed and I arranged a meeting
between Collins [3] and the financial leader writer of the
'Times', with the attached result. It is little like the Curate's
egg.
His Majesty's Government agreed to the �30,000 for the Queensland
survey business in connection with the �34 million agreement, but
with rather a bad grace, as they considered that they should not
have been pressed about it. [4]
The memorandum of the Associated British Chambers of Commerce
seems to be satisfactorily out of the way. [5] The Secretary [6]
said to me regretfully in the course of the several conversations
about it, 'You know, it took us three months to put this
memorandum together and get it agreed to all round'!
Tom Alston [7] and his wife and daughter lunched with us this
week. All very fit and well.
I am, Yours sincerely,
R.G. CASEY
[Handwritten]
I have since heard from the City that the Times leader has been
very well received. Nivisons [8] like it very much and think it
will do us a lot of good. It is probably the better thru' not
being fulsome or without criticism. On the whole, very welcome and
will go some way to answer our many critics.
1 Very Rev. W.R. Inge, Dean of St Paul's, London.
2 Senator Alexander McLachlan, an Honorary Minister, leader of the
Australian delegation to the 1928 session of the League of Nations
Assembly.
3 J.R. Collins, Financial Adviser to the Australian High
Commissioner.
4 In 1925 the British and Commonwealth Governments agreed to lend
up to �34 million to the Australian States for approved
development plans. In return the States agreed to settle one
assisted immigrant for every �75 received. Few useful schemes were
put up by the States, and the Development and Migration
Commission, set up in 1926 to consider such schemes, authorised
the spending of only �8 million under the 1925 agreement. The
States borrowed immense sums from other sources for schemes that
did not have to be justified, but Queensland had faced a virtual
loans lockout because the City of London disapproved of its
statist domestic policies and Bruce had warned Casey in a cable of
15 August 1928 that, if Queensland were denied funds now under the
migration agreement (and all her submitted schemes had been
rejected), she might well abandon adherence to the agreement, and
perhaps take other States with her. Casey went to the Chancellor
of the Exchequer, Winston Churchill, and obtained his agreement.
Admittedly the Dominions Secretary, Leopold Amery, was in
Switzerland at the time, but this was by British standards rather
crude dealing.
5 Addressed to the Australian Associated Chambers of Commerce, the
memorandum was in fact meant for the Commonwealth Government. It
protested vigorously about the effect in the United Kingdom of
increased Australian duties on cheaper woollen goods, which had
caused dislocation to the woollen industry, especially in
Leicester and in the West Riding of Yorkshire.
6 R.B. Dunwoody, Secretary of the Associated British Chambers of
Commerce 1912-46.
7 T.C. Alston, Melbourne solicitor and company director, Chairman
of Paterson, Laing and Bruce Ltd, was Bruce's solicitor. He and
Bruce had married sisters and he was also a friend of Casey's
wife's family.
8 R. Nivison and Co., the major underwriter of Australian
government securities.
