McPherson was elected to the
Victorian Legislative Assembly for the seat of
Hawthorn in 1913. He was Treasurer in the
Nationalist governments of
John Bowser and
Harry Lawson from 1917 to 1923, and developed a reputation as a very conservative manager of the state's finances. It was McPherson's refusal to provide funds for pensions for members of the
Victoria Police that sparked the
1923 Victorian Police strike. He was appointed a Knight Commander of the
Order of the British Empire (KBE) in 1923 for service as Treasurer.
Premier of Victoria In 1927 McPherson succeeded
Alexander Peacock as leader of the Nationalist Party. In November 1928 he moved a vote of no confidence against
Ned Hogan's minority
Labor Party government, which had lost the support of the independent members who were keeping it in office, and as a result he became Premier. His Cabinet included two bright young Nationalist politicians who were destined for higher things:
Robert Menzies and
Wilfrid Kent Hughes. But in July 1929 both these men joined a Cabinet revolt over McPherson's uncharacteristic agreement to offer an open-ended subsidy to rural meat-freezing works (this was a bid to win over rural independent MPs). As a result of this and similar examples of unsustained government spending to buy off rural interest groups, Victoria by 1929 had amassed a public debt of over a million pounds, a huge amount at the time. This provoked McPherson into proposing cuts to public spending, which in turn led the country members who held the balance of power to withdraw their support from McPherson's government. As a result, he called an
election at which the Nationalists won 17 seats and the
Country Party 11, while Labor won 30, with seven independents. ==Later life==