TO THE RESCUE OF STERLING

Dominion, Volume 24, Issue 288, 1 September 1931, Page 9

TO THE RESCUE OF STERLING

Mr. MacDonald stated plain truths In his letter to the Seaham executive, states “The Times.” He declared that the leader of organised labour, by appealing to prejudice and class feeling and by raising the bogey of financial conspiracy, is busily sowing seeds which, if they grow, will assuredly produce a Calamity. “From this calamity we merely have been reprieved long enough to enable us to escape triumphantly,” continued the letter. “We are not through the crisis. We have taken only the first step. “Trade unionists must be made aware of the perils to which the policy of the Trades Union Congress exposes them and the nation.” MAY ACCEPT TARIFF Attitude of Trades Unions HENDERSON AS AGITATOR (Bee. August 31, 9.30 p.m.). London, August 31. “The Times” says the General Council is inviting the Trade Union Congress to decide the tariff issue. A section of the council, which favours a tariff, is convinced that if it is presented as a possible means of averting wage and dole cuts, the traditional opposition of the Congress to Protection could be overcome, i Mr. Arthur Henderson, Leader of the Labour Party, is now organising Labour protests throughout the country. A deluge of resolutions aireddy is beginning. denouncing the National Government. APPEAL NOT GRASPED Union’s & Country’s Need RECEPTION OF DOLE CUT ■ London, August 31). Mr. Ramsay MacDonald declined to comment on the Seaham expulsion, beyond saying that he had written a letter to the executive, expressing himself optimistic as to the outcome of next week’s meetings. He said: “The Trades Union element does not yet appreciate the moral force of the appeal in the hour of the country’s need. We may have to give up many things, but we mean to carry out this task to the end. “We have received thousands of letters signifying a willingness for any sacrifice. The majority of those unemployed and the recipients of the old age pension are willing to accept the ‘cut.’ ” Mr. Wedgwood Benn (ex-Secretary for India), addressing the executive of the Aberdeen Trades Council, urged that none should doubt the sincerity and courage of Mr. MacDonald and Mr. Snowden. The late Cabinet was faced with a most critical financial situation, and Labour’s duty was unitedly to formulate a policy imbued with a sense of responsibility. MAJORITY OF FIFTY New Government’s Strength SPEEDY ACTION PROMISED Official Wireless. Rugby, August 29. Yesterday’s meetings of the three political parties indicate that the National Government will have a majority of at least fifty in the House of Commons. Conservative and Liberal members were unanimous in its support. The voting strength of the House of Commons is 612. The Government vote will comprise 261 Conservatives, 55 Liberals, 6 Labour. 3 Liberal Independents, and probably 6 other Indepedents, totalling 331. The Opposition vote will comprise 272 Labour members and probably 9 Independents, totalling 281. The remaining three members of the House — namely, the Speaker and the two Chairmen of Committees, do not vote on divisions. Cabinet Ministers are studying during the week-end reports in detail made by Cabinet sub-committees on the proposals for economy, new taxation. and Parliamentary procedure. They will thus be fully familiar with the whole plan when it is considered by Monday’s full Cabinet. Parliament will meet on September 8. I'he Prime Minister, in a Press in terview at Lossiemouth, said: “You can assure the public that we are going tp deal speedily with the situation. There will be no delay in Parliament, no long debates put up. We mean to got on with the business, for that is

Big Companies Mobilise Their Investments HUGE SUM OFFERED TO GOVERNMENT Farcical Nature of Prime Minister’s “Expulsion” NOT LEAST LIKELIHOOD OF HIS RESIGNATION (United Press Association.—By Electric Telegraph.—Copyright) (Rec. August 31, 8.30 p.m.) London, August 31. Foreign investments totalling £100,000,000, belonging to big insurance companies and investment houses, and mobilised during the past few have been offered to the Government and the Bank of England for the defence of sterling, and thus will assist the £80,000,000 credit from France and the United States. The mobilisation was voluntary and was due to the Initiative of the Prudential Assurance, which also offered to hand over all its American investments in exchange for British Government sterling securities. A feature of the present economic situation is the marked decline in Britain’s invisible exports which, from £137,000,000 in 1929, shrank to £39,000,000 In 1930, and now are practically non-existent owing to the under-employment of British shipping and the decline of interest on such investments as South American railways. There Is not the least likelihood of Mr. Ramsay MacDonald Immediately resigning from the House of Commons owing to the action of the Seaham Socialist Executive, which consists of eleven men and five married women, of whom four are miners’ wives and the fifth the wife of a school caretaker. Two of the men are school teachers, one is a Joiner and the others are colliery workers.

one of the ways in which we can Justify the confidence which Is reposed in us." CREDITS FOR BRITAIN Excellent Effect of Move STRENGTHENING STERLING' Official Wireless. Rugby, August 29. The successful conclusion of negotiations in Paris and New York for credits to the British Government amounting to about £80,000,000 for a year was announced late last night by the Treasury in the following statement:— “For the purpose of strengthening still further the exchange position of sterling, negotiations have been in progress with the financial authorities In New York and Paris. They have been concluded on the following basis:— “In the case of America, the arrangement is that a financial group will undertake, if called upon, to take up British Government dollar Treasury bills to a total not exceeding 200,000,000 dollars.

“In the case of France, an agreement In principle has been reached witli a view to making available a sum not exceeding five milliards of francs, partly in the form of a credit from French banks, and partly by the issue of British franc bills to the French public. The sum to be borrowed in each centre will be for the term of a year.” The negotiations have been conducted in the most cordial spirit, and the greatest assistance has been received from the French Ministry of Finance, the Bank of France, and various authorities In America. The negotiations were carried through very expeditiously and without any difficulty. The British representatives only reached Paris on Wednesday night. Sir Frederick Leith Ross, their chief, last night expressed to M. Flandin, on behalf of the Chancellor of the Exchequer, Mr. Snowden, the British Government’s appreciation of the cordial support of the French Government and the Bank of France during the negotiations. M. Flandin, in reply, paid a tribute to the well-earned confidence which British credit inspired throughout the world. “The Times” city editor to-day remarks: “These credits are really of the nature of insurance. Their mere existence should have an excellent effect, and a large portion of them may never be used at all.” CHEAPER PRODUCTION Question is Still Shirked FRENCH OBSERVER’S VIEW Paris, August 30. While the Press generally recognises that the recent developments are a proof of the stability of British credit, “Pertinax,” writing from London, declares that Conservative and Labour members with whom he conversed still shirk the crucial question of how British production costs can be reduced sufficiently to enable the export trade to stand up to foreign competition. He says that.no one seems prepared to face the necessary moderation In the standard of living. EXTRAVAGANT LIVING Habits Die Hard, Thinks Italy Rome, August 30. Fascist opinion is that British public and private expenditure must be curbed. Few believe that even the new Cabinet will have sufficient courage to force the labouring classes to live loss extravagantly.