(1) Refrain from meeting any Governmental expenditure by the drawing of cheques until further advised.

(2) Hold all moneys collected coming under their control until forwarded as mentioned here under.

(3) Under no circumstances to pay receipts into any bank.

(4) All collections to be made in cash or, if in any case it is necessary to take a cheque, such cheque must be cashed, if practicable, or, if the cheque or cheques cannot be cashed, such cheques must be "bearer" cheques made payable to "cash" or to a number, and crossed.

Cheques with specific crossings must not be accepted.
On no account must a cheque be officially marked either by stamp or otherwise.

(5) All cash and cheques collected to be delivered to the Treasury, either direct or to the departmental head office. Banks must not be used for this purpose, but safe and suitable arrangements should be made for forwarding cash and cheques to the Treasury. For this purpose, it is suggested that it may be possible to use the organisation of the railways.

For the information of the departments, it might be stated that value envelopes may be obtained from the railway stations, and, where the money is remitted through the railways, such envelopes containing the remittances should be addressed to the head office of the department or to the Treasury, full details of the collections to accompany the remittances. The Transport Commissioners have undertaken to facilitate arrangements through their organisation for the remittance of cash to the Treasury.
(6) Immediate action in this connexion is necessary.

C. B. Chapman
Under-Secretary.

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CIRCULAR

Premier's Department, Sydney, 10th May 1932.

SUBJECT: Collection and Expenditure—Procedure to be followed.
REFERENCE: Treasury Circular letter of 12th April 1932.

I am to inform you that this matter was considered by Cabinet yesterday and the following decision was approved, viz:—

That as forced labour without payment by the Authority who would use such forced labour or in other words, slavery, has been abolished in the British Empire for over 100 years, and as the first charge on revenue in every civilised community is the payment of those who collect the revenue for the Government, it is the decision of Cabinet, for the guidance of, and as an instruction to, all servants of the State and of State Statutory Bodies, in order that the essential and social services of the State of New South Wales may be carried on, that the method of collecting revenue and paying same shall be as outlined in the Treasury Circular of 13th April, Subject: “Collections and Expenditure—Procedure to be followed"—and shall continue directed by Treasury Circular under Government instruction from time to time.

C. H. HAY
Undersecretary Government House, on this day 12th May
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Dear Mr. Lang,

I have received the copy of the circular for which I asked you. It appears to me that the terms of this circular direct public servants to commit a direct breach of the law as set out in proclamation No. 42 of 1932, published in the Commonwealth of Australia Gazette of 5th May, and the notice issued in accordance with the last paragraph of that proclamation and published in the Commonwealth of Australia Gazette of the 6th May. I feel it my bounden duty to remind you at once that you derive your authority from His Majesty, through me, and that I cannot possibly allow the Crown to be placed in the position of breaking the law of the land.

I must ask you, therefore, either to furnish me with proof that the instructions in the circular are within the law, or, alternatively to withdraw the circular at once.
I do not wish to press you unduly, but the matter appears to me to be of an urgency which admits of no delay, and I must ask for a definite reply by 11 a.m., tomorrow, 13th May.

PHILIP GAME
Governor
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Premier's Department, 13th May 1932

Dear Sir Philip,

I received your letter of the 12th instant at 6 p.m., and must say that it is hard to understand how you do not wish to press unduly and yet insist on a definite reply by 11 a.m., on the 13th instant.

The circular of which you do not appear to approve represents the decision of Cabinet, and no doubt was arrived at after consideration of the primary duties of maintaining the essential and social services of the State.
The only reply you can be given is that the circular cannot possibly be withdrawn.

Premier's Department, Sydney, 13th May, 1932

Dear Sir Philip,

If your letter of today's date means that you are requesting the resignations of Ministers, you are hereby informed that your request is refused.

As to other matters mentioned in your letter, you are referred to my previous letter to you of today.

Yours faithfully,
JOHN T. LANG
Premier
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Government House, 13th May, 1932

Dear Mr. Lang,

Your letter informing me that Ministers are not prepared to tender their resignations has just reached me. In view of this and of your refusal to withdraw the circular, I feel it my bounden duty to inform you that I cannot retain my present Ministers in office, and that I am seeking other advisers. I must ask you to regard this as final.