LABOUR LEADERS.

Auckland Star, Volume LXII, Issue 202, 27 August 1931, Page 7

LABOUR LEADERS.

IDEALS UNCHANGED.

Party Not Deserted to Meet

Britain's Emergency.

REASONS OUTLINED

(British Official Wireless.)

(Received 12 noon.) RUGBY, August 26.

The task that lies before the National Government and the motives which led him to play the leading part in its formation were examined in a broadcast speech by the Prime.Minister, Mr. Ramsay Mac Donald.

He said: "I have given my life to the building up of a political party. At this moment .1 have changed none of my beliefs and none of my ideals. It is the proposal to cut down unemployment benefits that troubles most people.

"That proposal now, as part of the urgently-required national saving, is that these benefits should be reduced by 10 per cent, but the children's allowance will not be touched. That looks pretty big, but remember that during the last two years the cost of living has been reduced by Hi per cent.

"It is better to-ask the unemployed to'go back, not fully but very nearly, to the standards of only two years ago than to stand rigidly for the present rate and run the risk o"f injuring our credit and the people's purchasing power as well.

"We are told that this is a bankers' conspiracy of something of the kind ag»iinst the Labour Government. We were never presented with any political ultimatum. We never found in the attitude or conversation of those with whom' we were negotiating any political bias one way or another. "One thing, and one thing only, will put British credit in, a position of security at this moment. That' is a scheme consisting of economies, on the orie side and further revenue on the other. i... .. '-. "Such a scheme must be well balanced,, with, burdens imposed as lightly as possible, but nevertheless equitably, and that scheme will be produced." Seals of Office Handed In. The members of the retiring Government arrived at Buckingham Palace this morning to deliver their seals of office to the King. The new Ministers were then sworn in.

The Chancellor of the Exchequer, Mr. P. Snowden, in an interview- in the "Yorkshire Observer," said: "The present crisis has arisen through the weakening of international confidence in Britain's financial state, but the position of our country is' fundamentally sound. We have vast resources, and all that is needed'to restore confidence abroad is evidence that we are placing our national finances on a thoroughly sound basis.

"This involves not .only economies in national expenditure, .but. additional taxation, and I am confident' that there is the national will to make the sacrifices needed and .emerge successfully from the.present crisis! . ~' '_'

"The new Government will dissolve as soon as its task is accomplished. I should never dream of joining in a coalition of the parties for a permanent Government. There are general principles and. policies in the political parties which would make such a permanent association impossible, but the composite character of the new Government will indicate to the world that there is a national will and a national duty to achieve what the inherent strength of Britain,, both in finance and industry,, and in national spirit, is capable of achieving." •

POLITICAL FUTURE.

MacDONALD AND SNOWDEN. LONDON, August 26i Industrial writers forecast that Mr. MaeDonald and Mr. Snowden will anticipate events at the Trades Union Congress next month, and will send in their resignations.

NO INTERFERENCE.

AMERICA AND BRITAIN. WASHINGTON, August 26. After a Cabinet meeting, at which President Hoover was present, an unofficial denial was circulated concerning the validity of the London "Daily Herald's" charges that the Federal Reserve Bank had attempted to dictate internal politics to Britain.

It is affirmed that the United States is in no way involved in' the downfall of the Labour Government. It has not attached any condition to its credit of £25,000,000, which, it is pointed out, is not yet exhausted.

DEPUTY BILLED.

GUNPLAY IN MEXICO

MEXICO ..CITY,. August 26,

One deputy was killed and four were wounded in a shooting affray in the Chamber of Deputies last evening. More than 60 shots were fired, after a heated argument.

CONVALESCING.

LLOYD GEORGE IN SURREY.

(British OfficiaL Wirel-ass.)

RUGBY, August 26.

Mr. Lloyd George motored from London yesterday to hie home at Churt, Surrey, where he will stay for the remainder of the period of his convalescence. Later he hopes to go to Wales.

Although Mr. Lloyd George has been confined to his room he has followed the political crisis closely and several times was consulted by his Liberal colleagues.