BRITISH GOVERNMENT

Hawera Star, Volume LI, 25 August 1931, Page 5

BRITISH GOVERNMENT

NATIONAL CABINET FORMING

Mr MacDonald Still Leader

GREAT BRITAIN’S CREDIT THREATENED

King Receives Parly Leaders

Crisis Creates Tense Atmosphere

' United Press* Association —By Electric Telegraph

Copyright.)

LONDON, Aug. 24.

The MacDonald Cabinet has resigned and a National Cabinet, is being formed under the leadership of! Mr. MacDonald. - . . . Mr. Lloyd Gteorge has been informed that it. is intended that the National Government should confine • itself to the financial crisis, relinquishing office when Ibis is overcome. The King received Mr. MacDonald, Mr. Stanley Baldwin (Conservative Leader) and Sir Herbert Samuel (acting-Liberal Leader) at the Palace with a party of leading politicians. The “Central News” understands Mr. Baldwin informed His Majesty that if Mr. MacDonald formed a National Government he was willing to serve under him. Enormous crowds demonstrated as the Cabinet members entered 10 Downing Street. The Cabinet rose at 12.25 p.m. Mr. George Lansbury, posing for a photograph on the doorstep of 10 Downing Street when going into a Cabinet meeting, said: “This is the last time.” The “Times” says the collapse of British credit has hit none more severely than the poor. The £50,000,000 granted by the Bank of England is approaching exhaustion, and within a few days further credits must be obtained and be unobtainable unless the Budget is balanced.