s ▁went ▁on . ▁ ▁Response ▁to ▁De pression ▁ ▁Ly ons ▁fav oured ▁the ▁t ough ▁economic ▁measures ▁of ▁the ▁" P rem iers ' ▁Plan ", ▁purs ued ▁an ▁orth odox ▁fis cal ▁policy ▁and ▁refused ▁to ▁accept ▁NS W ▁Premier ▁Jack ▁Lang ' s ▁propos als ▁to ▁default ▁on ▁over se as ▁deb t ▁rep ay ments . ▁ ▁A ▁dram atic ▁episode ▁in ▁Australian ▁history ▁followed ▁Ly ons ' ▁first ▁elect oral ▁victory ▁when ▁NS W ▁Premier ▁Jack ▁Lang ▁refused ▁to ▁pay ▁interest ▁on ▁over se as ▁State ▁deb ts . ▁The ▁Ly ons ▁government ▁stepped ▁in ▁and ▁paid ▁the ▁deb ts ▁and ▁then ▁passed ▁the ▁Fin an cial ▁Ag re ement ▁En for cement ▁Act ▁to ▁recover ▁the ▁money ▁it ▁had ▁paid . ▁In ▁an ▁effort ▁to ▁fr ustr ate ▁this ▁move , ▁Lang ▁ordered ▁State ▁depart ments ▁to ▁pay ▁all ▁rece i pts ▁directly ▁to ▁the ▁Tre as ury ▁instead ▁of ▁into ▁Government ▁bank ▁accounts . ▁The ▁New ▁South ▁Wales ▁Governor , ▁Sir ▁Philip ▁Game , ▁interven ed ▁on ▁the ▁basis ▁that ▁Lang ▁had ▁acted ▁il leg ally ▁in ▁bre ach ▁of ▁the ▁state ▁Aud it ▁Act ▁and ▁s ack ed ▁the ▁Lang ▁Government , ▁who ▁then ▁suffered ▁a ▁lands lide ▁loss ▁at ▁the ▁consequ ent ▁ 1 9 3 2 ▁state ▁election . ▁ ▁Australia ▁entered ▁the ▁De pression ▁with ▁a ▁deb t ▁crisis ▁and ▁a ▁credit ▁crisis . ▁According ▁to ▁author ▁Anne ▁Hend erson ▁of ▁the ▁Sydney ▁Institute , ▁Ly ons ▁held ▁a ▁stead fast