(ACT) in 1938. The Northern Territory was transferred from the control of the South Australian government to the Commonwealth in 1911. Great Depression Australia was deeply affected by the Great Depression of the 1930s, particularly due to its heavy dependence on exports, especially primary products such as wool and wheat. Exposed by continuous borrowing to fund capital works in the 1920s, the Australian and state governments were "already far from secure in 1927, when most economic indicators took a turn for the worse. Australia's dependence of exports left her extraordinarily vulnerable to world market fluctuations", according to economic historian Geoff Spenceley. Debt by the state of New South Wales accounted for almost half of Australia's accumulated debt by December 1927. The situation caused alarm amongst a few politicians and economists, notably Edward Shann of the University of Western Australia, but most political, union and business leaders were reluctant to admit to serious problems. In 1926, Australian Finance magazine described loans as occurring with a "disconcerting frequency" unrivalled in the British Empire: "It may be a loan to pay off maturing loans or a loan to pay the interest on existing loans, or a loan to repay temporary loans from the bankers..." Thus, well before the Wall Street Crash of 1929, the Australian economy was already facing significant difficulties. As the economy slowed in 1927, so did manufacturing and the country slipped into recession as profits slumped and unemployment rose. At elections held in October 1929, the Labor Party was swept into power in a landslide victory; Stanley Bruce, the former Prime Minister, lost his own seat. The new Prime Minister, James Scullin, and his largely inexperienced government were almost immediately faced with a series of crises. Hamstrung by their lack of control of the Senate, a lack of control of the banking system and divisions within their party about how best to deal with the situation, the government was forced to accept solutions that eventually split the party, as it had in 1917. Some gravitated to New South Wales Premier Lang, others to Prime Minister Scullin. Various "plans" to resolve the crisis were suggested; Sir Otto Niemeyer, a representative of the English banks who visited in mid-1930, proposed a deflationary plan, involving cuts to government spending and wages. Treasurer Ted Theodore proposed a mildly inflationary plan, while the Labor Premier of New South Wales, Jack Lang, proposed a radical plan