RAMSAY MACDONALD RESIGNS

Evening Post, Volume CXII, Issue 48, 25 August 1931, Page 9

RAMSAY MACDONALD RESIGNS

TO FORM NEW NATIONAL ADMINISTRATION

INCLUDING OTHER PARTY LEADERS

NOTABLE ROLE PLAYED BY THE KING

- (British Official Wireless.) (Received 25th August, 11 a.m.) RUGBY, 24th August. The political crisis ended 10-day with the announcement that the Prime Minister had tendered his resignation to the King, who asked him to form a new National Administration. Mr. Ramsay Mac Donald accepted and kissed hands on his appointment as head of a National Government. A series of important conferences preceded this announcement. These conferences began with the visit to Buckingham Palace early this morning by the Prime Minister, Mr. Stanley Baldwin, Leader of the Conservative Party, and Sir Herbert Samuel, Acting-Leader of the Liberal Party, at the invitation of the King, and at its conclusion the first official intimation was given that the formation of a National Government was under consideration. On returning to Downing Street the Prime Minister met his Cabinet colleagues of the outgoing Administration, whose members placed their resignations in his hands. The Parliamentary Under-Secretaries and holders of other minor posts in the ]ale Government tendered their resignations later and, after a further conference with Mr. Baldwin and Sir Herbert Samuel, the Prime Minister again went to see His Majesty. The following statement was then issued from 10, Downing Street: "The Prime Minister this afternoon tendered to His Majesty the resignation of the Ministry, which was accepted by His Majesty, who entrusted Mr. Ramsay Mac Donald with the task of forming a National Government on a comprehensive basis for the purpose of meeting the present financial emergency. Mr. Mac Donald accepted the commission, and is now in conference with Mr. Stanley Baldwin and Sir Herbert Samuel, who are co-operating with him in the constitution of such an Administration." FIRST TASK OF NEW GOVERNMENT The first task of the new Government will be to devise measures for balancing the Budget to be presented lo a special meeting of Parliament to be summoned next month. The necessity for balancing the Budget was fully recognised by the late Government, and a considerable measure of agreement on the economies in Stale expenditure required -was, it is understood, secured. The plan produced by the Prime Minister and Chancellor of the Exchequer, however, is believed to have included among other economies a reduction in the rates of unemployment insurance benefit, and the newspapers state that the deadlock which precipitated the fall of the Government arose on. these proposals. It is stated that Mr. Mac Donald at last night's meeting failed to secure sufficient Cabinet support to justify him in asking the other political parties to support the Government. It was in these circumstances that the proposal arose for meeting the emergency by some form of National Government with the full support of the Conservative and Liberal Parties, and of that section of the Labour Party that would be prepared to follow Mr. Mac Donald. The new Government's proposals to meet the financial situation will be published with as little delay as possible.