CRISIS IN BRITAIN.

Kaikoura Star, Volume LI, Issue 69, 27 August 1931, Page 3

CRISIS IN BRITAIN.

MacDONALD MINISTRY RESIGNS. LONDON, August 24. The MacDonald Cabinet Las resigned The “Daily Mai 1 ” understands that Mr Stanley Baldwin’s leadership of a National Government will be announced to-day. Mr Baldwin previously declared he would not form a National Government, but it is understood that after a conversation with His Majesty his viewpoint was profoundly altered. The “Chicago Tribune” published a cablegram dated London, August 24th, saying that Great Britain will have a new Government to.day, and that the King will call upon Mr Baldwin to form a new Administration to carry out the stringent measures of economy which the Labour Government dared not inflict against its own ranks. The ‘ ‘ Tribune’s ’ ’ informant charges ‘ France with withdrawing gold from London at a terrific rate, the total being £300,000,000 in the past fortnight. “The Times” says: The collapse of British credit will hit none more severely than the poor. The £50,000,000 granted by the Bank of England is approaching exhaustion. Within a rew days further credits must be obtained, and will not be obtainable unless the Budget is balanced. ECONOMY OPPOSED. The Trades Union Council’s belief is 1 that the revised Government proposals ' will widen the cleavage. Even if the i Government succeeds in forcing cuts in j social services through Parliament, it i will be forced to resign the day after the Economy Bill has received the Royal Assent.

One Trades Union Council leader added: “We also have objected to Mr MacDonald’s airy offhand manner with us. The Government was elected by a class to defend a class. At the first big test it runs to make terms with the other Parties.” AUDIENCE WITH THE KING. The King received Mr Ramsay Mac Donald, Mr Stanley Baldwin, and Sir Herbert Samuel (Liberal) at Buckingham Palace with the Party leaders. The “Central News” understands that Mr Baldwin informed His Majesty that if Mr MacDonald formed a National Government he would be willing to serve under him. It was officiall announced from the Palace that the formation of a National Government is under consideration. Mr George Lansbury (First Commissioner of Works), posing for a photograph on the doorstep of No. 10 Downing Street, before going into the Cabinet meeting, said: It is the last time. . KING RECEIVES LEADERS. . . LONDON, AUGUST 23. It is officially stated from Downing Street that on Mr Ramsay MacDonald’s advice the King has asked Mr Stanley | Baldwin and Sir Herbert Samuel to see him, because he wishes to hear from them the position of their respective Parties. It is understood that these audiences nave no relation to any possibility of the Government’s resignation. *Mr MacDonald explained to his Majesty \he situation, according to his own impressions, and suggested, that the Opposition leaders should have a similar opportunity. The “Observer” says that Mr MacDonald had a long conversation with His Majesty over the telephone after the events of yesterday, as a result of which His Majesty decided to return to London.

It is learned, that His Majesty’s decision to return to London was purely personal. He desired to get in closer touch with developments, and no doubt the operation to the Duke of Gloucester was an additional incentive. His Majesty was accompanied by the. Queen. Cabinet met at 7 o’clock on Sunday night. Mr MacDonald, leaving No. 10 Downing Street by a back door, visited His Majesty at 10.15 o’clock and re mained for less than half an hour. Ho returned *-o Downing Street, where ne saw Sir Herbert Samuel. Cabinet dispersed at 10.50 o’clock. In addition to Mr Ramsay MacDonald, Mr Stanley Baldwin, Leader of the Conservatives, and Sir Herbert Samuel, ’•epresenting the Liberal Party, also visited Buckingham Palace, and were received by the King. The Prime Minister’s audience with His Majesty lasted over an diour. Great importance attaches to the decisions of Cabinet, which assembled at No. 10 Downing Street at 7 o’clock this evening, for the first Sunday meeting of the Cabinet Council for many years. Mr Stanley Baldwin, Mr Neville Chamberlain, and Sir Joseph Stump were called in consultation at Down’.ng Street after 11 o’clock on Sunday night and departed after midnight, when Downing S+reot intimated that no statement Would be made to-night. NEWSPAPER COMMENT. The “Sunday Express” says that Cabinet has decided to resist the temptation to resign and will take the responsibility and let Parliament decid? its fate. The “Sunday Express” believes that the plans now include an internal luxury tax, doubling the entertainment tax, several forms of direct taxation, and a reduction in the pay of civil -servants, though interference with po‘ 1 pay may by minimised 5 - ’ The .“Sunc. j- Times” says that th'’ election talk is not credited in any quarter. The Ministry will be reconstituted or replaced, and it may be taken for granted that Mr Philip Snowden will propose an increase in the income tax and higher duties on beer and tobacco. Thus the Government will hope to convince its supporters of equality

of sacrifice. The “News of the World” says that the Government has prepared a statement designed to reassure foreign opinion that the Btidget will be balanced. This may be published to-night, and is hoped to end the financial crisis. As regards the political crisis, Mr MacDonald is resolved to submit his policy to Parliament. ‘ LEADERS OF PARTIES. Mr Stanly Baldwin arrived in London to-night from France. Passing through Paris he was interviewed, and expressed the hope that he would shortly be on bis way back to Aix-les-Bains, i where he is spending his holiday . ■ Mr Lloyd George is not yet sufficient— I ly recovered from his recent grave ’ll-

ncss to participate in the consultations, but Sir Herbert Samuel and Sir Donald Mac Lean are acting in close agreement with Lord Reading and other Liberal ( leaders. DOWNING STREET CROWDED. LONDON, AUGUST 23. Not since the opening of the General Strike have such crowds filled Downing Street as were present to-night, owing < to the quickening public interest aroused chiefly by the King’s dash to London. The precincts of Buckingham Palace throughout the day were surrounded by people, while Whitehall and Downing Street never had their normal quiet

; Sunday appearance. ; Bv evening the crowds were den;»O j botli in Downing Street and outside the ' palace. The Ministers had the greatest | difficulty ’n elbowing their way to No. I 10. Miss Margaret Bondfield, Minister for Labour, was held up by a constable and not allowed to pass till it was • xplained that she was a. member of Cabinet. More police had to be called up to • handle the throng, and it was evenrual- | ly decided to take the unusual course 1 of clearing the whole street. CLOUDS GATHERING. LONDON, August 24. ; In view of the acute. differences known to prevail in the Cabinet, there was* expectation in London throughout the day that Mr Ramsay MacDonald would be compelled to resign. Summing up the position at midnight, the “Daily Telegraph” and the “Daily Herald” agreed hat at least seven Ministers ai*<> prepared to resign rather than accept the programme which the Trades Union Council opposed. These are: —M r A.- Henderson (Minister for Foreign Affairs); Mr William Graham (President of the Board of Trade); Mr J. R. (Hynes (Home Secretary); Mr Tom Johnson (Lord Privy Seal): Mr A. Greenwood (Minister tor Health); Mr G. l.ansbury (First Commissioner of Works); Dr. C. Addison (Minister of Agriculture). When Mr MacDonald left Downing Street to see the King, his emotion was obvious, .in the car going to the Palace he was seen to take off his hat. and bury his face in his hands. 'rhe final blow to Mr MacDonald’s authority v. as the realisation that the Liberal objections to the Cabinet scheme are now just as strong as the Conservative. Indeed, the views of the Opposition Parties have harmonised to a quite unexpected extent, chiefly owing to the stubborn resistance of the. seven Ministers to the drastic reduction in the cost of unemployment insurance. SPECTRE OF UNEMPLOYMENT. 'fhc necessity for a reduction is greater because, it is believed that the unemployment total will be more than 3,000,000 when the winter begins. Though the Cabinet is obviously tottering to its fall the actual resignation was undecided when the leaders wore called into Downing Street and Cabinet disposed . Anxious and tired out, Air Mac Don aid went to bed al 12.15. The decision not to issue a statement followed the arrival if Air Baldwin and Sir Herbert Samuel and other members of the Opposition and Downing Street, which is interpreted to mean that the formation of a National Government was at least discussed. Therefore. Mr Mac Donald’s iesignation is probably con templated after the Cabinet meeting at midday on Monday. NATIONAL GOVERNMENT OPPOSED. The majority of the Government i< opposed !o the idea of a. National Government, and there is little chance of it coming into being. If the threeParty conference breaks down it is co.r. tain that the Government will resign. The King has already been advised of the probability of this happening ii Mr Ramsay MacDonahl is unable tc carry out economies. FRANCE PERTURBED. PARIS, August 23. j The British crisis excluded all otlici topics of conversation. Scant sympathy is felt for lhe Labour Government, which no Party, except the Socialists favours, regarding it as too closely associated with the Second International and the interpreter of that body’s foreign policy. the average Frenchman believes that the financial troubles arc due to concessions to Germany. Nevertheless, there is considerable anxiriy regarding a speedy solution, as th* weakening of British credit wouhl disastrously affect French trade and finance. , LABOUR MINISTRY. I The Mr.eDonald Government t- ».k j off co for Ihc fcc’ond time in the hibtmy I of the British Labour Par<y on June ? li, 1929, sue-ceding the Baldwin Ad ministrrr me vdiich had be- n in pow< r ’for four years 212 days. The first Labour Ministry was on January 22nd, 1924, and remained in office 287 days, as compared with the first Bal<lwin Government’s 245 days. At December 31st, 1930, the state oi Parties was as follows: Labour .. . . 288 Conservatives . . . . 201 Liberals .. . . 58 Independents .. .. 8 Total .. .. 615 EMERGENCY MEASURES. LONDON, August 25. The British crisis is reaching solution with remarkable rapidity . The names of the members of the National Cabinet will be submitted tc His Majesty the King to-day, and the seals of office will be exchanged on Wednesday at the latest, when Cabinet will immediately get to work drafting emergency measures, which will enable the Government to issue Orders- inCoun There is no time to prepare Legis. lation couched in ordinary Parliamon tary language, and practically no de bate will be permissible during tin coming session . It should bo clearly realised that the National Government is in no sense <i coalition. Mr Baldwin is insistent on this. Ministers at the head of the spending Departments deliberately will be excluded from Ihc Cabinet, which i?purely an economy body with power to make arbitrary decisions binding on all the Departments. As soon as the programme of retrench ment has been decided, the Budget balanced, and British credit abroad re-es-tablished there will be a dissolution and an appeal to the country on normal lines. A General Election is unlikely until the India Round Table Conference rises in November, so Qhristmas is the probable date. It is expected that Mr Arthur Hen-

derson will lead Labour. Air Henderson firmly believes that the London bankers are the villains of the piece and attributes the crisis to their bungling in insisting on a premature return to the gold standard. THE PROBABLE CABINET.

TTie general expectation is that t 1 c Cabinet will comprise:—Air Ram ay MacDonald (Lab.), Air Philip Snowden (Lab.), Mr .J. H. Thomas (Lab.), Lord Hankey (Lab.), Air Stanley Baldwin (Con.), Mr Neville Chamberlain (Con.), Sir Samuel Hoare (Con.), Lord Hail-

sham (Con.), Sir Herbert Samuel (Lib. Lord Reading (Lib.), Sir Donald Mac Lean or Lord Lothian (Lib.) The National Cabinet should be abh to rely on the support of 262 Conscrva fives and 55 Liberals. If Air .MacDonald’s followers numbci

80 the Government will have a majority of 197. ' '