Ted Theodore
Encyclopedia
Edward Granville Theodore (29 December 1884 – 9 February 1950) was an Australia
n politician. He was Premier of Queensland
1919–25, a federal politician representing a New South Wales seat 1927–31, and Federal Treasurer
1929–30.
, South Australia
, the second son of Basil Teodorescu, a Romania
n immigrant. He was educated at Lefevre Peninsula Catholic and Aldgate State schools in Adelaide, but left school at 12 to work on the Adelaide docks. In 1900 he left for the goldfields of Western Australia
, but failed to make his fortune there and decided to try his luck at Broken Hill, New South Wales
, instead. In 1906 he left for Cairns, Queensland
where he prospected for tin in the Chillagoe
area and worked in the Vulcan Mine in Irvinebank
. It was among the unorganized workers of Stannary Hills and Irvinebank that the Amalgamated Workers Association of North Queensland was born.
in 1909 for the Australian Labor Party
. His position in the AWU made him a power in the Parliamentary Labor Party, and when Labor won a majority in the Assembly for the first time in 1915, he became Treasurer and Secretary for Public Works in the government of Thomas Ryan
.
In 1919 Ryan resigned and Theodore succeeded him as Premier of what was then Australia's only Labor state government, following the great split in the Labor Party over the issue of conscription
in World War I
. He was a popular and successful Premier, and soon began to be talked about as a possible federal Labor leader. It was during his term that the upper house of Parliament was abolished. In 1925 he resigned as Premier and stood for the Queensland seat of Herbert
in the federal election, but was unexpectedly defeated by Lewis Nott
by 268 votes.
for the seat of Dalley
in Sydney
at a by-election in 1927. His status as an outsider in Sydney Labor politics was a permanent problem for him, but he soon made his mark in federal Parliament. In 1929 he became Deputy Leader of the Labor Party under James Scullin
. In October 1929 Scullin defeated the conservative government of Stanley Bruce
and became Prime Minister, while Theodore became Treasurer.
The effects of the Great Depression
were soon felt in Australia, and the Scullin government, like others, had no solutions to mounting unemployment and the collapse of world trade, on which Australia's export-based economy depended.
Meanwhile, a conservative government had taken power in Queensland, and appointed a Royal Commission
to investigate Theodore's financial dealings while he had been Premier. The Commission found that Theodore and another Labor minister, William McCormack
, had corruptly profited by authorising the purchase by the state of a copper mine at Mungana
while concealing the fact that they had a financial interest in the mine, which furthermore was not economically viable. In June 1930 the "Mungana affair
" forced Theodore's resignation.
Without Theodore's leadership and financial skills, the Scullin government drifted into deeper crisis. When it became apparent that the Queensland government did not intend charging Theodore with any offence, Scullin re-appointed him as Treasurer, in January 1931. This led to the resignation of a conservative group of ministers led by Joseph Lyons
, who soon left the Labor Party and became Opposition Leader.
, Dr Otto Niemeyer
, who recommended an "orthodox" solution, including sharp reductions in government spending such as pensions and unemployment benefits. The radical Premier of New South Wales, Jack Lang, on the other hand, campaigned for the repudiation of Australia's debt to bond-holders in London.
Theodore rejected both these alternatives and proposed instead an expansion of credit to farmers and small business, through the issue of "fiduciary notes" which could be redeemed after the Depression. His Fiduciary Notes Bill was denounced as financially unsound by orthodox economists and the banks, and was eventually defeated in the Senate
. Theodore has been described as a visionary proto-Keynesian for this proposal, although it cannot be known what effect his measures would have had on the Depression had the bill been passed.
In late 1931 the followers of Lyons and Lang joined in the House of Representatives to pass a no-confidence motion in the Scullin government, and an election
was held in December. Theodore had no base of support in Sydney and he lost his seat to a Lang candidate. This ended his political career, although several offers were made to him during the 1930s to return.
in gold-mining ventures in Fiji
and other enterprises, making him a rich man. He was chairman of directors of Packer's press company, Australian Consolidated Press
, and director of several other companies.
During World War II
Theodore served the Curtin
and Chifley
governments as Director of the Allied Works Council, which was established to undertake works requested by Allied Forces in Australia during World War II
. After the war his health declined and he died of hypertensive cardiovascular disease on 9 February 1950 at Edgecliff, Sydney.
.
regarded Theodore as a potentially great "lost leader" of the Labor Party, although it is unlikely that he could have become Party leader after the Mungana Affair.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n politician. He was Premier of Queensland
Premiers of Queensland
Before the 1890s, there was no developed party system in Queensland. Political affiliation labels before that time indicate a general tendency only. Before the end of the first decade of the twentieth century, political parties were more akin to parliamentary factions, and were fluid, informal and...
1919–25, a federal politician representing a New South Wales seat 1927–31, and Federal Treasurer
Treasurer of Australia
The Treasurer of Australia is the minister in the Government of Australia responsible for government expenditure and revenue raising. He is the head of the Department of the Treasury. The Treasurer plays a key role in the economic policy of the government...
1929–30.
Early life
Theodore was born in AdelaideAdelaide
Adelaide is the capital city of South Australia and the fifth-largest city in Australia. Adelaide has an estimated population of more than 1.2 million...
, South Australia
South Australia
South Australia is a state of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories.South Australia shares borders with all of the mainland...
, the second son of Basil Teodorescu, a Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
n immigrant. He was educated at Lefevre Peninsula Catholic and Aldgate State schools in Adelaide, but left school at 12 to work on the Adelaide docks. In 1900 he left for the goldfields of Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
, but failed to make his fortune there and decided to try his luck at Broken Hill, New South Wales
Broken Hill, New South Wales
-Geology:Broken Hill's massive orebody, which formed about 1,800 million years ago, has proved to be among the world's largest silver-lead-zinc mineral deposits. The orebody is shaped like a boomerang plunging into the earth at its ends and outcropping in the centre. The protruding tip of the...
, instead. In 1906 he left for Cairns, Queensland
Queensland
Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...
where he prospected for tin in the Chillagoe
Chillagoe, Queensland
Chillagoe in northern Queensland, Australia, was once a thriving mining town for a range of minerals, but is now reduced to a small zinc mine and some marble quarries. At the 2006 census, Chillagoe had a population of 227....
area and worked in the Vulcan Mine in Irvinebank
Irvinebank
Irvinebank is a village in the western foothills of the Atherton Tablelands of Far North Queensland, Australia. Once a thriving town with an economy based on mining, milling and smelting...
. It was among the unorganized workers of Stannary Hills and Irvinebank that the Amalgamated Workers Association of North Queensland was born.
Queensland politics
Theodore founded the Amalgamated Workers Association with Bill McCormack. This union used the process and principle of amalgamation to unify with other unions until it became Australia's largest union, the Australian Workers Union (AWU). Theodore became Queensland state president of the AWU in 1913. Meanwhile, he had been elected to the Queensland Legislative AssemblyQueensland Legislative Assembly
The Queensland Legislative Assembly is the unicameral chamber of the Parliament of Queensland. Elections are held approximately once every three years. Voting is by the Optional Preferential Voting form of the Alternative Vote system...
in 1909 for the Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
. His position in the AWU made him a power in the Parliamentary Labor Party, and when Labor won a majority in the Assembly for the first time in 1915, he became Treasurer and Secretary for Public Works in the government of Thomas Ryan
T. J. Ryan
Thomas Joseph "T.J." Ryan was Premier of Queensland, Australia from May 1915 until October 1919 when he resigned to enter Federal politics.-Early life:Thomas Joseph Ryan was born at Port Fairy, Victoria...
.
In 1919 Ryan resigned and Theodore succeeded him as Premier of what was then Australia's only Labor state government, following the great split in the Labor Party over the issue of conscription
Conscription
Conscription is the compulsory enlistment of people in some sort of national service, most often military service. Conscription dates back to antiquity and continues in some countries to the present day under various names...
in World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
. He was a popular and successful Premier, and soon began to be talked about as a possible federal Labor leader. It was during his term that the upper house of Parliament was abolished. In 1925 he resigned as Premier and stood for the Queensland seat of Herbert
Division of Herbert
The Division of Herbert is an Australian Electoral Division in Queensland. Eligible voters within the Division elect a single representative, known as the member for Herbert, to the Australian House of Representatives. The division was first contested at the 1901 election...
in the federal election, but was unexpectedly defeated by Lewis Nott
Lewis Nott
Lewis Windermere Nott was an Australian politician, medical practitioner and hospital superintendent. He represented two federal electorates, more than 1,000 km and 21 years apart.-Early life and war service:...
by 268 votes.
Federal politics
Theodore was elected to the House of RepresentativesAustralian House of Representatives
The House of Representatives is one of the two houses of the Parliament of Australia; it is the lower house; the upper house is the Senate. Members of Parliament serve for terms of approximately three years....
for the seat of Dalley
Division of Dalley
The Division of Dalley was an Australian Electoral Division in New South Wales. The division was created in 1900 and was one of the original 75 divisions contested at the first federal election. It was abolished in 1969. It was named for the colonial politician William Dalley. It was located in the...
in Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
at a by-election in 1927. His status as an outsider in Sydney Labor politics was a permanent problem for him, but he soon made his mark in federal Parliament. In 1929 he became Deputy Leader of the Labor Party under James Scullin
James Scullin
James Henry Scullin , Australian Labor politician and the ninth Prime Minister of Australia. Two days after he was sworn in as Prime Minister, the Wall Street Crash of 1929 occurred, marking the beginning of the Great Depression and subsequent Great Depression in Australia.-Early life:Scullin was...
. In October 1929 Scullin defeated the conservative government of Stanley Bruce
Stanley Bruce
Stanley Melbourne Bruce, 1st Viscount Bruce of Melbourne, CH, MC, FRS, PC , was an Australian politician and diplomat, and the eighth Prime Minister of Australia. He was the second Australian granted an hereditary peerage of the United Kingdom, but the first whose peerage was formally created...
and became Prime Minister, while Theodore became Treasurer.
The effects of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
were soon felt in Australia, and the Scullin government, like others, had no solutions to mounting unemployment and the collapse of world trade, on which Australia's export-based economy depended.
Meanwhile, a conservative government had taken power in Queensland, and appointed a Royal Commission
Royal Commission
In Commonwealth realms and other monarchies a Royal Commission is a major ad-hoc formal public inquiry into a defined issue. They have been held in various countries such as the United Kingdom, Australia, Canada, New Zealand, and Saudi Arabia...
to investigate Theodore's financial dealings while he had been Premier. The Commission found that Theodore and another Labor minister, William McCormack
William McCormack
William McCormack , was Premier of Queensland, Australia, from 1925 to 1929.He was born in Purnam, Queensland and died in Brisbane on 21 November 1947....
, had corruptly profited by authorising the purchase by the state of a copper mine at Mungana
Mungana, Queensland
Mungana, 15 km from Chillagoe, in north Queensland, Australia, was once the site of copper mines that featured in the Mungana Affair.-External links:*...
while concealing the fact that they had a financial interest in the mine, which furthermore was not economically viable. In June 1930 the "Mungana affair
Mungana affair
The Mungana Affair involved the selling of some mining properties in the Chillagoe-Mungana districts of northern Queensland, Australia to the Queensland government, at a grossly inflated price...
" forced Theodore's resignation.
Without Theodore's leadership and financial skills, the Scullin government drifted into deeper crisis. When it became apparent that the Queensland government did not intend charging Theodore with any offence, Scullin re-appointed him as Treasurer, in January 1931. This led to the resignation of a conservative group of ministers led by Joseph Lyons
Joseph Lyons
Joseph Aloysius Lyons, CH was an Australian politician. He was Labor Premier of Tasmania from 1923 to 1928 and a Minister in the James Scullin government from 1929 until his resignation from the Labor Party in March 1931...
, who soon left the Labor Party and became Opposition Leader.
Dealing with the Depression
During 1931 Theodore faced the greatest economic crisis in Australian history. The government imported an advisor from the Bank of EnglandBank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
, Dr Otto Niemeyer
Otto Niemeyer
Sir Otto Ernst Niemeyer, GBE, KCB was financial controller at the Treasury and a director at the Bank of England. He was also treasurer of the National Association of Mental Health post World War II...
, who recommended an "orthodox" solution, including sharp reductions in government spending such as pensions and unemployment benefits. The radical Premier of New South Wales, Jack Lang, on the other hand, campaigned for the repudiation of Australia's debt to bond-holders in London.
Theodore rejected both these alternatives and proposed instead an expansion of credit to farmers and small business, through the issue of "fiduciary notes" which could be redeemed after the Depression. His Fiduciary Notes Bill was denounced as financially unsound by orthodox economists and the banks, and was eventually defeated in the Senate
Australian Senate
The Senate is the upper house of the bicameral Parliament of Australia, the lower house being the House of Representatives. Senators are popularly elected under a system of proportional representation. Senators are elected for a term that is usually six years; after a double dissolution, however,...
. Theodore has been described as a visionary proto-Keynesian for this proposal, although it cannot be known what effect his measures would have had on the Depression had the bill been passed.
In late 1931 the followers of Lyons and Lang joined in the House of Representatives to pass a no-confidence motion in the Scullin government, and an election
Australian federal election, 1931
Federal elections were held in Australia on 19 December 1931. All 75 seats in the House of Representatives, and 18 of the 36 seats in the Senate were up for election...
was held in December. Theodore had no base of support in Sydney and he lost his seat to a Lang candidate. This ended his political career, although several offers were made to him during the 1930s to return.
Later life
Theodore went into business, becoming a business partner of Frank PackerFrank Packer
Sir Douglas Frank Hewson Packer, KBE , was an Australian media proprietor who controlled Australian Consolidated Press and the Nine Network.-Biography:...
in gold-mining ventures in Fiji
Fiji
Fiji , officially the Republic of Fiji , is an island nation in Melanesia in the South Pacific Ocean about northeast of New Zealand's North Island...
and other enterprises, making him a rich man. He was chairman of directors of Packer's press company, Australian Consolidated Press
Australian Consolidated Press
ACP Magazines , a subsidiary of the Nine Entertainment Co., is an Australian media company. It publishes the Australian Women's Weekly and the Australian edition of Woman's Day....
, and director of several other companies.
During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
Theodore served the Curtin
John Curtin
John Joseph Curtin , Australian politician, served as the 14th Prime Minister of Australia. Labor under Curtin formed a minority government in 1941 after the crossbench consisting of two independent MPs crossed the floor in the House of Representatives, bringing down the Coalition minority...
and Chifley
Ben Chifley
Joseph Benedict Chifley , Australian politician, was the 16th Prime Minister of Australia. He took over the Australian Labor Party leadership and Prime Ministership after the death of John Curtin in 1945, and went on to retain government at the 1946 election, before being defeated at the 1949...
governments as Director of the Allied Works Council, which was established to undertake works requested by Allied Forces in Australia during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. After the war his health declined and he died of hypertensive cardiovascular disease on 9 February 1950 at Edgecliff, Sydney.
Family
In 1909 Theodore married Esther Mahoney and they had four children. After Ted's death his son John assumed charge of the family's joint business interests with Frank Packer and he became the first managing director of Channel 9Nine Network
The Nine Network , is an Australian television network with headquarters based in Willoughby, a suburb located on the North Shore of Sydney. For 50 years since television's inception in Australia, between 1956 and 2006, it was the most watched television network in Australia...
.
Assessment
Subsequent Labor leaders such as Gough WhitlamGough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...
regarded Theodore as a potentially great "lost leader" of the Labor Party, although it is unlikely that he could have become Party leader after the Mungana Affair.
Further reading
- Red Ted: The Life of E. G. Theodore, Ross Fitzgerald, University of Queensland Press, 1994
- The Mungana Affair: State Mining and Political Corruption in the 1920s, K. H. Kennedy, University of Queensland Press, 1978
- Theodore: His Life and Times, Irwin Young, Alpha Books, 1971.