LABOUR ALARM.

Auckland Star, Volume LXII, Issue 37, 13 February 1931, Page 7

LABOUR ALARM.

IMPORT OF SPEECH.

Some Hear Death-Knell of

Government.

MORE MONEY FOR WORKLESS

(United P.A'.—Electric Telegraph—Copyright)

(Received 9.30 a.m.)

LONDON, February 12

Hard on the heels of Mr. Snowden's grave warning comes a Treasury resolution increasing the borrowing powers of the unemployment fund during the deficiency period by £20,000,000 to £90,000,000. It is explained that excluding accrued interest, there is now a weekly debt of £985,000 under the fund.

Mr. Snowden's speech is generally regarded as one of the most remarkable and important Parliamentary utterances for a long time. Labour members are alarmed at its implications, and some believe they can hear the death-knell of the Government, because it definitely rejected all new expenditure and cOntem? plated economies at the expense of the unemployed. The reference to temporary sacrifices for all, is regarded as an allusion to wage reductions as well as the curtailment of State activities of a beneficent kind. The political correspondent of the "Daily Telegraph" says the Cabinet has already decided on a 10 per cent reduction in its own salaries. The saving thus effected wi}l, of course, be merely a drop in the ocean, but it is intended as a practical gesture in the hope that the example Will be widely followed. Some members of the House of Commons may follow the example. The writer says cuts in Civil Service salaries are probable.

A political contributor in the same paper says the Conservatives considered that Mr. Snowden displayed courage in speaking so plainly. It is suggested that the Government in sanctioning the Chancellor's warning intended to check the extravagant demands from its own party, rather than anything else.

The "Daily Herald" says the nation is prepared to face the crisis, but there must be equality of sacrifice.

The "Times" says: "It is a little late to 60und the foghorn -when the ship is already on the rocks."

FRANCE ADAMANT.

WAR LOAN REPAYMENT.

(British Official Wireless.)

RUGBY, February 12.

The Secretary of State for Foreign Affairs, Mr. Arthur Henderson, was asked in the House of Commons whether he intended to make further representations to the French Government regarding the repayment of war loans: Mr. Henderson replied that in view of the refusal of the French Government to accept arbitration, it was difficult to see what further representations could usefully be mada