FOREIGN CREDITS FOR BRITAIN

Dominion, Volume 24, Issue 287, 31 August 1931, Page 9

FOREIGN CREDITS FOR BRITAIN

France and America to Provide £80,000,000

LABOUR’S DESERTION OF MACDONALD

Resignation Recommended in Own Constituency UNCOMPROMISING REPLY TO DRAMATIC APPEAL (United Press Association.—By Electric Telegraph.—Copyright) (Rec. August 80, 5.5 p.m.) London, August 29. A message from Paris.stated that an agreement for French assistance to Britain had been signed, under which France is providing £40,000,000, half of which are credits from private banks and half is being raised by public subscription at 41 per cent for one-year Treasury bonds. Aiherica is providing a further £40,000,000. The object is to strengthen the exchange. As a result of party meetings held on Friday it is indicated that the Government will have a majority of 50. Earlier reports that Mr. Ramsay MacDonald would enjoy a considerable Labour following have not been fulfilled. The Premier’s son, Mr. Malcolm MacDonald, and Mr. G. Glllet, together with the four Cabinet Ministers, are likely to be the only Labour supporters of the Government. Three Liberal and jjix other Independent members will bring the National strength to 331 against Labour’s 272. In the meantime the Prime Minister has been brought face to face with the undisguised hostility of hi? own constituency. Despite a dramatic letter from Mr. MacDonald, the Seaham Labour executive unanimously recommended that the Prime Minister be asked to resign his seat. The letter pointed out that the crisis endangered workers’ wages and savings. ./ “We had to avert" the crisis or allow it to shatter us,” added Mr. MacDonald. “It is as useless talking about banking reform as it would be for a doctor to talk vegetarianism to an appendicitis patient. The appendix had to come out, and more scientific treatment will be 'applied when the patient is recovering. A small dole cut Is necessary to enable the dole to continue at aIL I know the pressure that will be brought to bear on my friends at Seaham, but I place myself unreservedly in their hands.” *

Mr. MacDonald, when i informed of the decision of the Seaham executive, refused to comment.

The Hampstead Labour Party, of which the Prime Minister Is a member owing to his place of residence, has expelled him. Sir Donald Mac Lean, President of the Board of Education, addressing his constituents, said that the allegation that the bankers had manufactured the crisis was entirely unfounded. Their one object was the country’s good. They were not serving selfish interests. U.S. SHARE IN LOAN X • Record Short-term Credit FORM NOT YET DIVULGED (Rec. August 30, 5.5 p.m.) New York, August 28. < The J. P. Morgan Company has announced that French and. American bankers have extended a total one-year credit Of approximately 400,000,000 dollars to Britain. The names of the firms participating in the 200,000,000-dollar American share of the credit, which Is a record for a local, short-term foreign loan, are not divulged, but it is understood that they are the banking organisations which have been associated with the Morgans in previous foreign credits. Details as to the form of the credit are not published, but apparently they differ from the terms of the French share of the sum, and it is generally believed that the American portion of the loan will operate under the purchase of British Treasury bills. So far as could be ascertained, the present arrangement will not be used to retire the 125,000,000-dollar Federal Reserve credit to. the Bank of England, which expires in about two months; hence the 'presumption that the credit might be funded into a long-term loan is officially denied. WAGE CUTS OPPOSED Move by Teachers’ Council POLICE ALSO TO RESIST (Rec. August 30, 5.5 p.m.) Lonilon, August 29. As an indication of the speed with which Cabinet is acting, Sir Herbert Samuel. Home Secretary, met the Police Council and explained the proposals for wage reductions. A decision was deferred, but it is obvious that the proposals will be resisted. Similarly the National Council of Teachers has been convened to consider action. CHORUS OF REPROACH Labour’s Foolish Manifesto PURE MISREPRESENTATION London, August 28. The “Daily Express” says that the official Opposition has produced the most foolish document in the political annals of the country. “If their men and women can be deceived by such a cry, then Heaven help the nation.” The “Morning Post” says that it is difficult to imagine a, statement in which reckless 'misrepresentation is carried to more extreme lengths. “It is a shock to find among the signatories his Majesty’s late Foreign Secretary,” adds the newspaper. “The document enhances Mr. Henderson's . prestige as a demagogue, but extin- • guishes his reputation as a statesman.” In a leading article on the Trades Union Congress manifesto, “The Times” says it shows how grotesque ideas, which are dismissible 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 a smoke-screen to con ceal a sinister attack on the standard of living. “Unfortunately,” the article cot. eludes, "the trades union leaders so little understand the facts that'their ludicrous concatenation of expedients only Irreparably harm national credit and further undermine foreign confidence.” The “Daily Mail” describes the Labour manifesto as tbe most mischievous and most irresponsible declaration ever jnada la British pelitic*.

Mr. Pethick Lawrence’s'letter read at the Labour meeting said: “It is unthinkable that we should be compelled to balance the Budget at the behest'of foreign Governments and banks. Britain’s position is far too strong to make that necessary in such a national emergency.” He asked, in view of the Australian Conversion Loan of a far more drastic kind whether it was not possible in a national emergency to effect a large voluntary conversion at some slight sacrifice by the banks and big houses. Mr. MacDonald refuses to discuss the Labour meeting. He said: “My only comment Is that the Trades Union Congress manifesto is of no assistance In dispelling the crisis.”

HENDERSON’S WISHES A “Policy of Emergency” LANSBURY FOR A TARIFF (Rec. August 80, 5/5 p.m.) - London. August 29. It Is reported that one of the surprises at the Labour Party meeting was Mr. Arthur Henderson’s statement that he preferred a policy of emergency to the programme of severe economies now launched by the National Government Mr. George Lansbury (Labour), speaking at Bow, said: “If there Is no alternative between a tariff and a cut in the dole, then I am for a tariff.” STILL A’ SICK MAN Condition of Lloyd George SEEING ONLY HIS FAMILY ,-(Rec. August 30, 5.5 p.m.) London, August 29. Though Mr. Lloyd George is known to be In complete agreement with the action of the Liberal representatives in connection with the National Government, he is unlikely to accept ofllce in the Government. -He is Still a sick man. He had only the briefest of talks with Sir Herbert Samuel and Lord Reading, and even,these resulted in his temperature rising. He now sees only his family. He will shortly move to Criccieth, where he will remain until he is able to return to active political life. SNOWDEN TO RETIRE Battle With Physical Ills MUST -NOW SEEK A REST Official Wireless. Rugby, August 28. The decision of the Chancellor of the Exchequer, Mr. Philip Snowden, to retire from Parliament at the next general election is regretted on personal grounds by members of all political parties. He notified the Prime Minister four months ago of his intention not to seek re-election, and Iris decision is in no way connected with the recent political events. For years past Parliamentarians have admired the extraordinary courage and determination with which Mr. Snowden, both in office and in Opposition, has devoted himself to his duties in spite of constant physical disability and frequent illness. It had constantly seemed he had kept himself going by the exercise of immense will power. The strain upon him has been even more marked since his recent severe operation. In a letter to his constituents he says: “Although I have had a remarkable recovery I am compelled at the age of 67 to realise that I cannot expect to be able to continue the strenuous life I have lived for the last forty years. I must seek a rest from the arduous work of the House of Commons, with its long hours and late sittings.” Mr. Snowden would have asked leave to retire earlier, but, when the international crisis arose, he felt it his duty to remain in office to see through these difficulties. Statements to the effect that the Prime Minister had derided' not to seek reelection at tbe end of the present Parliament nr' authoritatively described unreliable Naturally Mr MneDnnnld’s attention is nt nrcsent wholly tnknn up with the immediate tnek of the Government. and he is unlikely to make tiny decision regarding his own political future in the meantime. Sir William Jowitt has written to his constituency, Preston, to say that he has agreed to retain his position as AttorneyGc&Bsal and places hltoseU In tha hands

of the local Labour Party as regards the next election. LEAGUE APPOINTMENT Henderson Yet to Decide (Rec. August 30, 5.5 p.m.) Official Wireless. Rugby, August 29. In the course of a speech at a meeting of the Parliamentary Labour Party to-day, Mr. Henderson referred to Mie chairmanship of the Disarmament Conference, to which ho was elected by the Council of the League of Nations. He indicated that whether he would be free to undertake the duties of the chairmanship depended on the developments in the Home political situation. A SARTORIAL SINNER Prime Minister Under Fire London, August 2S. The “Tailor and Cutter,”, not allowing the magnitude of the political crisis to detract from the sanctity of the correct clothes, says that one of the surprises of a sensational week was the appearance of Mr. MacDonald in a morning coat and bowler bat when he visited his Majesty on the fateful Sunday. It was- thought that there would be an emergency Government, and the best excuse to make for the hat is that it was an emergency hat Mr. MacDonald s fall from grace was betrayed by the inconsistency of a morning coat which demanded a silk hat, but the unholy combination of tail coat and bowler hat suggested a works foreman rather than a Minister of the Crown.