When the Depression struck in 1930, the Scullin government split over its response. Lyons became the leading advocate within the government of orthodox finance and deflationary economic policies, and an opponent of the inflationary, proto-Keynesian policies of Treasurer Ted Theodore. Theodore was forced to resign over accusations of corruption in June 1930, and Scullin took over the Treasury portfolio in addition to the Prime Ministership. Lyons served as acting Treasurer from August 1930 to January 1931, whilst Scullin was in Britain for the Imperial Conference. Lyons announced his plan for recovery in October 1930, insisting on the need to maintain a balanced budget and cut public spending and salaries, although also advising lower interest rates and the provision of greater credit for industry.