STRENGTHENING THE FINANCES

Dominion, Volume 24, Issue 286, 29 August 1931, Page 7

STRENGTHENING THE FINANCES

Large New Credits front Paris and New York ; BRITISH GOVERNMENT’S PLANS 'Cabinet Concentrates on Economy Proposals •PARTY CLAPTRAP”: ATTITUDE OF LABOUR DIEHARDS - ■. . J ■ ? The granting of "large new credits” by Paris and New York, In regard to which an authentic announcement is to be made shortly, is one of the more important communications from London this morning in connection with the British financial crisis. T _ Meanwhile the members of the new National Government are setting to work in earnest, and it is expected that when the full Cabinet meets on Monday important decisions affecting v. Budget economies will be made. Cabinet sub-committees are examining economy avenues and the amount of taxation required •'■ to meet the financial demands. . On the other hand, Labour “diehards” are unmistakably expressing their intention of vigorously opposing the new. Government. The “diehard” opposition was crystallised at a joint meetfog of the General Council of the Trades Union Congress and the National Executive of the Labour Party. The extremist Labour attitude to the new Government is set out in a manifesto published this morning. , •' j

CREDITS FOR BRITAIN Announcement ■ Expected NEW YORK REPORTS By Telegraph—Press Assn.— Copyright (Rec. August 28, 7 p.m.) ••• ■ .c-:: London, August 28.- ’ An authentic announcement is expected shortly in regard to large new credits from Paris and from New York. \ New York, August 27. The “New York. Evening Post” says that the bankers have agreed upon the terms of the new'credit, to Great Britain, which will probably total 300,000,000. dollars... ■ /“.fe'S/'-i • . Confirmation of the report is not available- in high' banking circles, but one of Waff; street’s leading bankers said that .the. talk of such a loan whs in the air, and it had been confidently expected that such a credit would be arranged .shortly... There was a feeling, however, that It might not be arranged until the new British / economy. ~ programme was Inaugurated and the Budget finally balanced. ;; The loan, it is .expected,, will be underwritten by a group of private bankers, probably Messrs. J. P. Morgan and Cd.,, and will run for. a. comparatively abort time. / L 1 ~ < . It Is understood' that negotiations have been carried on with London by trans-Atlantic telephone during, the ..”'/"/'. ' ~ >' -LABOUR. DIEHARDS ‘ Opposition to Government manifesto published Official Wireless. Rugby, August 27. Following a decision yesterday of a joint meeting 5 of -the -General Council of the Trades Union Congress and the National Executive of the Labour Party that the new Government “should be vigorously opposed in Parliament and by a movement throughout the country,” a jointl session to-day, at which members of the consultative committee of the? Parliamentary Labour Party were also present, issued a manifesto calling oh the masses of the people to rally ,to the Labour movement “in defence of the true national Interests and a constructive effort toward a new social order.” ■ The manifesto.. declares that the true causes of the financial crisis have not been .publicly explained and described the'.. National Ministry as . a . Government. of persons acting .without authority from the people. i The Government is stated to be attacking the standard of living of the ■workers to meet a situation caused by the'.policy of . the private banking in- ' terests outside public control, and to ■ be attempting to reverse . the social policy of the.nation. It.does.so ’’not. because the nation’s resources have suddenly diminished, not because the , nation cannot afford to provide for its unemployed, not .because the Budget cannot be balanced, but primarily because the financial interests have decided that Britain is setting a bad example to other countries in taxing the rich to provide for the necessities of the poor.”. • .

'. GROTESQUE IDEAS ’‘Times” Criticism of Manifesto . 1 >,’■ ■ ("Times” Cable*) (Rec. August 28, 7 p.m.) London, August 28. In a leading article on the Trades Union Congress manifesto "The Times” says it shows how grotesque ideas, which are dismissable as party claptrap, have obtained a hold of the Labour leaders. “It Is scarcely worth while refuting categorically its tissue of misstatements, Including the fantastic notion that the crisis Is merely a bankers’ ramp used as smoke-screen to conceal a sinister attack on the standard of living. Unfortunately,” the article Concludes, “the trades union leaders so little understand the facts that their ludicrous concatenation of expedients only Irreparably harm national credit and further undermine foreign con , fldence.” The “Daily Mall” describes the Labour manifesto as the most mischievous and most Irresponsible declaration ever made in British politics. WOMAN M.P.’s REGRETS London, August 27. Dr. Marion Phillips, M.P. (Lab.), in a letter to Mr. MacDonald, says that every Socialist Party In any part of the world some day comes to a final difficulty with the bankers and must accept or challenge the domination of orthodox capitalist finance. “I am glad Labour members are determined to challenge, but I am sorry It involves fighting you.”

SEARCH FOR SAVINGS Sub-committees at Work REPORT ON MONDAY ' Official Wireless. Rugby, August 27. , The Prime Minister, Mr. Ramsay MacDonald, left London to-night for Lossiemouth.. He will return to preside at the next meeting of Cabinet on Monday.’ '. '■ ’ It is expected that reports will then be before Cabinet from sub-committees appointed at its first meeting yesterday. ! '■ Two of the sub-committees were at work to-day.: The sub-committee dealing with economies and taxation requited to meet the present situation and effect a balancing of the Budget was, engaged in examining the actual details, of the proposals which already had been decided upon in principle. , A. second committee considered Parliamentary procedure and the measures to be. proceeded with when Parliament 'resumes. ’ . ", Contentious Legislation. There is to be a Olean sweep of all contentious legislation in order to expedite the economy proposals. No time is being lost in putting these into final form for presentation to Parliament on September 8. Apart from legislation required for dealing vyitli the, financial emergency, the Government will'only proceed with measures of a proved non-controversial kind. .• “it is suggested that the London Passenger Transport Bill, Introduced by Mr. Herbert Morrison last March, may. rank as such, and since the support of. the Labour Party as the official Opposition is likely to be forthcoming the Bill will probably be carried through. The Bill provides for .the , establishment of a passenger transport board for the London traffic area, and negotiations with the underground railway and other groups have reached a point at which it. is generally recognised the suspension of. the measure would involve serious practical difficulties. It is considered improbable that any other of the Bills Introduced by the late Government and still before Parliament will be proceeded with by the National Government Unemployment Benefit. It is understood that a 10 per cent, cut in unemployment benefit, although the'only proposal so far officially announced, Is not by . any means the only serious economy cuit which the Government will make. . Reference to it was made by the Prime Minister in his broadcast speech because it had already been disclosed in the Press, and because It- was the issue on which the late Cabinet- split. Previously, however, It had reached agreement on other ■proposals, which will effect, drastic saving. ' i ■ ■ /Both the Prime Minister, in a letter to Labour members of Parliament, and the Secretary for the Colonies, Mr. J. H. Thomas, in a message to railwayman, have vigorously defended the unemploymnet cut.. They point out that when the cost of living is taken into . account unemployment benefits will still remain one and a half per cent, better than they were two years ago, and that in any case the alternative to Immediate action for restoring credit would have meant a drop in the benefit more likely to reach 50 per cent, .than 10 per cent. Poor people would have, been the first to 1 suffer from such a catastrophe, which now has been ! averted.

The desirability of making known as early as possible the general lines on which the Government intends to effect a drastic reduction of public expenditure is fully recognised. Any disclosure of the altered situation will, however, be impossible before the Chancellor of the Exchequer presents his supplementary Budget to the House of Commons. This morning the new,Ministers were early at work, and Downing Street, after the excitement of the last few days, had resumed its normal quiet appearance. GOOD IMPRESSION Reaction on Sterling Official Wireless. Rugby, August 27. Sterling reacted strongly throughout the world to the good impression created by the formation of the new Government and the statements by the Prime Minister and other Ministers. No change In the exchange rate was made to-day. . SECRETARY OF WAR Marquess of Crewe Appointed Official Wireless. Rugby, August 27. The last important Ministerial post in the new National Government has been filled by the appointment of the Marquess of Crewe to the War Office, where he replaces Mr. Tom Shaw. Lord Crewe, who is a Liberal, has had a long political career. He was Lord Lieutenant for Ireland when only

34 years of age, and among other offices filled by him were those of Secretary for India, Lord President of the/Council, and Lord Privy Seal. Lord Crewe was British Ambassador at Paris for six years before retiring in 1928. Lord Crewe wIU not occupy a seat in the new Cabinet. It is understood Lord Grey, owing to poor health, declined a seat in the Government, but expressed his hearty approval of its formation and purpose. BROADCASTS CANCELLED Prime Minister Sole Mouthpiece Official Wireless. Rugby, August 27. The broadcast addresses by Mr. Baldwin and Sir Herbert Samuel announced for Monday, have been cancelled. ;■ si ~ , It is understood Cabinet has decided that such statements as are necessary should be made by the Prime Minister, and that during the life of the National Government other Ministers will re--fraln from speeches outside Parliament. , RETURN TO SCOTLAND King’s Rousing Reception Official Wireless. Rugby, August 27. When the King’s special train reach-, ed Ballater, Scotland, this morning, his Majesty was loudly cheered by a large crowd. He drove to Balmoral to resume his holiday, which was inter-, rupted by his return to London during the political crisis. J MR. LLOYD GEORGE - / “Daily Herald” Asks a Question (Rec. August 28, 7 p.m.) London, August 28. The “Daily Herald,” in big type, ask?, “Will Mr. Lloyd George oppose the Government?” < ■■ ■ ■ ‘ The paper recalls that in February,* in the House of Commons, Mr. Lloyd George declared that a large part of the depression was due to the mishandling of monetary questions on the advice of the money barons.