LORDS’ SENSATION

Nelson Evening Mail, Volume LXVI, 25 May 1933, Page 7

LORDS’ SENSATION

ATTACK ON MR MACDONALD BY LORD SNOWDEN “SURPRISING AND UNEXPECTED” (United Press Association —By Electric Telegraph—Copyright) (Received 25th May, 12.45 p.m.) LONDON, 24th May. In the House of Lords, Lord Snowden, requesting a statement on the Government’s policy at the World Economic Conference, made a surprising and unexpected attack upon Mr MacDonald. He described the Prime Minister’s reply to a similar demand in the House of Commons as “absolutely staggering.” “I know not- whether this is due to the Government having no policy, or to Mr MacDonald’s constitutional inability to make a clear statement. I suggest thatCabinet look into the case of the Prime Minister. It is a positive danger to the country that its affairs should be in the hands of a man who every time he speaks exposes his ignorance or incapacity.” Referring to Mr MacDonald’s visit to Washington. Lord Snowden said that Mr MacDonald’s and President Roosevelt’s joint statement was a mere repetition of platitudes. The Prime Minister might just as well have saved the country the expense of his visit. The joint statement in reference to commodity prices only showed ignorance of the nature of the problem. It dismissed excessive tariffs, quotas, and exchange restrictions, which were the fundamental and primary causes of the world depression, in less space than the silver question. What was to be the Government’s policy at the World Conference? When a tariff truce was suggested for the duration of the Conference, Mr MacDonald only accepted it with reservations amounting practically to rejection. While the World Conference would begin by denouncing tariffs, the British Government and its Tariff Advisory Committee would be engaged in preparing further increases in our tariffs. “Mr MacDonald has suggested that the only tariffs to be reduced should be those which are more than sufficient for national economic protection. Every tariff in the world is regarded as necessary to national economic protection. If the World Conference acted upon Mr MacDonald’s principle, it would be useless even to discuss the tariff question. “The joint statements say not a word about the American debt question, which lias been woefully bungled and mismanaged, especially last year. Mr Hoover’s magnificent gesture would have been of great benefit if the opportunity had been taken during the moratorium to come to a definite settlement of a difficult question. Nothing has been done. Our next instalment is due three weeks hence. Are we going to pay or default? The reason the joint statement says nothing about the debt is that it is a matter for Congress, which is very jealous of its rights. If President Roosevelt made a declaration now Congress would reject it. Mr MacDonald has said they were going to talk about the debt, but nobody is coining from America competent to deal with the question. Ido not believe the United States will make a definite suggestion about debts until they see the outcome of the Disarmament Conference. If America gets something out of that conference, President Roosevelt will likely have the courage to approach Congress on the debt question and suggest that the gain from the reduction in armaments he an offset to a reduction of the debt.” PAY OR DEFAULT “We have either to pay or default. I always viewed with abhorrence the very idea of repudiation or default. Unless the British Government, enters the conference with a- clear-cut, well thought out, practical plan, we might abandon hope of any practical success. International debts and private and public international indebtedness are by lathe most formidable factor which has been produced in the present crisis. The conference is inexorably and inevitably doomed to failure unless debts are taken into account. We are faced either with cancellation or bankruptcy on a Mg-antic scale, or you must resort to conditions of trade permitting international lending to begin again. These are the only conditions on which prosperity can be restored.”