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====Response to Depression==== [[File:Workers, we've been fooled long enough! (cropped).jpg|thumb|left|Anti-Lang advertisement used by the UAP at the [[1932 New South Wales state election]]]] Lyons favoured the tough economic measures of the "Premiers' Plan", pursued an orthodox fiscal policy and refused to accept NSW Premier Jack Lang's proposals to default on overseas debt repayments. 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 [[Governor of New South Wales|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 consequent 1932 state election.<ref name="ReferenceC">Brian Carroll; ''[[From Barton to Fraser]]''; Cassell Australia; 1978</ref> Australia entered the Depression with a debt crisis and a credit crisis. According to author [[Anne Henderson (author)|Anne Henderson]] of the [[Sydney Institute]], 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 β 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.<ref>[[Anne Henderson (author)|Anne Henderson]]; ''Joseph Lyons: The People's Prime Minister''; NewSouth; 2011.</ref> A devalued Australian currency assisted in restoring a favourable balance of trade. Tariffs had been a point of difference between the Country Party and United Australia Party. The CP opposed high tariffs because they increased costs for farmers, while the UAP had support among manufacturers who supported tariffs. Lyons was therefore happy to be perceived as "protectionist". Australia agreed to give tariff preference to British Empire goods, following the 1932 Imperial economic conference. The Lyons government lowered interest rates to stimulate expenditure.<ref name="ReferenceC"/> Another point of difference was the issue of establishing national unemployment insurance. Debate on this issue became strained with the Country Party opposing the plan. On this issue, deputy leader Robert Menzies and Country Party leader [[Earle Page]] would have a public falling out. According to author Brian Carroll, Lyons had been underestimated when he assumed office in 1932 and as leader he demonstrated: "a combination of honesty, native shrewdness, tact, administrative ability, common sense, good luck and good humour that kept him in the job longer than any previous Prime Minister except Hughes".<ref name="ReferenceC"/> Lyons was assisted in his campaigning by his politically active wife, [[Enid Lyons]]. She had a busy official role from 1932 to 1939 and, following her husband's death, stood for Parliament herself, becoming Australia's first female Member of the House of Representatives, and later first woman in Cabinet, joining the [[Menzies government (1939-1941)|Menzies Cabinet]] in 1951.<ref>{{cite web |url=http://primeministers.naa.gov.au/primeministers/lyons/spouse.aspx |title=Enid Lyons β Joseph Lyons β Australia's PMs β Australia's Prime Ministers |publisher=Primeministers.naa.gov.au |date=24 October 1934 |access-date=28 June 2013 |archive-date=8 April 2019 |archive-url=https://web.archive.org/web/20190408175445/http://primeministers.naa.gov.au/primeministers/lyons/spouse.aspx |url-status=dead }}</ref>
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