THE BRITISH CABINET.

Evening Star, Issue 21009, 25 January 1932, Page 8

THE BRITISH CABINET.

World affairs have demonstrated to British Ministers the necessity of keeping the ranks closed. When the National Government was formed, under stress, in defence of the pound and to correct the adverse balance of trade, it was realised that drastic measures, involving possibly a profound change of fiscal policy, would have to be taken. It was easy to see the difficulties in the way of arriving at combined action. Prominent and influential members of Cabinet still held tenaciously to the principle ot Freetrade, while admitting that the financial and econoihic crisis might involve a temporary and partial relaxation ot that system. The emphatic endorsement at the General Election of the National Government was regarded as an encouragement to proceed with protective measures. Following the abandonment of the gold standard, impon duties on certain goods were imposed pending the elaboration of a settled policy. A sub-committee of the Cabinet, representing the three political parties in the House of Commons, has been sitting to consider measures for correcting the adverse balance of trade and to make recommendations to Cabinet on broad questions of policy. . The discussions, according to statements emanating from leading London newspapers, which in the main may be taken as authentic, reveal that, as was expected, the discussions centred on the tariff question. They were prolonged, and the tension was so acute as to raise uneasiness on the matter of the continuance of, the cooperation. Apparently the rock that blocked the way was whether the tariff should be temporary or permanent, and when Cabinet itself came to go into the matter the former course was urged by Lord Snowden and three Liberal Ministers, all Freetraders in principle. We know from experience how determined Lord Snowden can be when he sets his back to the wall, so that there was reason for apprehension over the prospects. Happily a way out has been found, and one that will strike those who are not sticklers for hoary custom as entirely reasonable. Having discovered that it was impossible to reach a unanimous conclusion on the tariff issue, and being deeply impressed with tho paramount importance of maintaining national unity in the presence of the grave problems confronting the country and the world, Cabinet decided on a modification of a recognised Ministerial practice. The doctrine of collective responsibility is to be relaxed in tho face of the unique position that has arisen. The dissentient Ministers, instead of leaving tho Cabinet or bringing about tho resignation of the Government, will be free to speak and vote as their principles urge them on the tariff issue. Anyone who knows something of Britain’s fiscal history realises how wide is the breach between the advocates of Protection and Freetrade, and it is a revelation of tho gravity of tho general problems that confront tho Government that such a compromise should bo reached. Naturally the comments of the extreme party newspapers aro biting. Tho ‘ Daily Herald,’ tho Labour organ, calls it a contemptible business, while the ‘ Morning Post,’ tho vehicle of extreme Conservatism, considers that the expedient is not sound and cannot succeed. ‘ Tho Times,’ however, puts tho position in truer perspective when it says that the common front is not necessarily doomed by the action of a few Ministers to-

wards one item on the national programme. The results attached to the imposition of the import duties have encouraged the advocates of a permanent tariff. It is declared that the proposal which found most favour by the Cabinet committee was one for the immediate imposition of a 10 per cent, general tariff, with certain exceptions. These possibly include wheat, meat, and cotton. The imposition of a tariff, at any rate, is a certainty, and the Government’s declaration on the matter will bo awaited with the greatest interest. In the meantime it is gratifying to note that tho National Government, being a composite creation, is not to be hampered by the fetish of “ collective responsibility.” An encouraging sign, according to London’s trade review to-day, is tho spurt in the Yorkshire woollen manufacturing trade, which if maintained will have important reactions in this dominion. In considering the various issues raised in tho last few months, Mr Ramsay MacDonald’s pre-election appeal should be remembered. Ho asked for a free hand to use any and evfery method, including tariffs, expansion of exports, and contraction of imports, commercial treaties, mutual economic arrangements with the dominions, or any other expedient which might be found useful to save the nation from a currency collapse and to redress the balance of trade.