DEMAND FOR ECONOMY.

New Zealand Herald, Volume LXVIII, Issue 20959, 24 August 1931, Page 9

DEMAND FOR ECONOMY.

CRISIS IN BRITAIN.

KING GOES TO LONDON.

CONSERVATIVE STAND.

IfOEE TAXES RESISTED.

'ACUTE PUBLIC ANXIETY.

By Telegraph - Press Association—Copyright. (Received August 23. 9.45 p.m.) LONDON 7 . August 23. Owing to the political crisis King George has returned to London from Balmoral, which he left yesterday. / His Majesty reached Euston Station this morning. Crowds cheered him on his arrival there, and also when he drove through the gates of Buckingham V Palace. / The Prime Minister, Mr. Mac Donald, arrived at the Palace at 10.20 a.m. The large crowd broke loose and surged round Mr. Mac Donald as he left the Falace after an hour's audience. He was apparently cheerful. Mr. Baldwin and 7 the principal Conservatives met this morning. The Liberal "Shadow Cabinet" will meet this afternoon. The Observer Mr. MacDonald bad a long conversation with His Majesty bv telephone after the events of yesterday, and as the result His Majesty decided to return to London. It is believed, however, that the King's decision to return to London was purely personal, as he desired to be in closer touch with the political developments. No doubt tile operation on the Duke of Gloucester was an additional incentive. His Majesty is not accompanied by Queen Maty- z The whole press.agrees that the situation is most critical, and that the Government's position last night was precarious. According to the' Daily Herald, the Conservatives are demanding that 75 per cent, of the Budget deficit be met by economies, end only 25 per cent, by new taxation. / The Times says 30' members of the Com-mons-Council of London have petitioned the Lord Mayor, Sir Pbene Neal, to coni yene the Corporation, to appeal to the Prime Minister to relieve the distressed state of the people, and to restore international confidence. The National Chamber of Trade, which includes 100,000 traders, has addressed Mr. Mac Donald and Mr. Snowden, the Chancellor of the Exchequer, and the Opposition leaders, demanding real economy. [LEADERS' CONFERENCE. 'cabinet deliberations. " THE FINISHING TOUCHES." LONDON, August 21. The Cabinet met at 9.50 a.m. to-day and adjourned for, luncheon 'at 12.10 p.m. Immediately afterwards, Mr; Mac Donald requested the Opposition leaders to visit Downing Street. • Mr. NeviJlo Chamberlain, Sir Samuel Hcare, Sir Donald 'Maclean and Sir Herbert Samuel arrived within a few minutes, end had an interview with Mr. MacDonald and Mr. Snowden. An official statement issued later says: The Cabinet has been putting the finishing' touches to its scheme, which it is believed will- meet the situation. It will meet, to hear the results to-morrow. LABOUR PARTY SPLIT. MINISTRY AND UNIONS. GOVERNMENT MAY FALL. LONDON, August 21. The Daily Mail says the Government's position is more precarious, and a change of administration is rapidly becoming a more definite possibility. It is understood that the Conservatives , suggested to the Liberals the formation of a Coalition Government, to tide over the crisis, and proposed Mr. Lloyd George as Chancellor of the Exchequer. The Daily Telegraph states that Mr. Snowden's reply to the Trades Union Congress was to the effect that it was impossible to meet its behests. This led to a general impression that its vital differences would involve the end of the Labour Party as at present constituted. The congress says it is able to count on at least 120 to 150 members of the llouso of Commons who will decline to support the Government. The Cabinet sat continuously until 4 p.m. on Friday, and the "Big Five" then summoned the Conservatives and Liberals and the members of the council of the .Trades Union Congress, and announced its decision to refer the Government's proposal to the full Trades Union Congress at Bristol on September 7. This amounts to a volte face, because the Trades Union Council is well aware of the necessity for urgent action. The Trades Union Council rejected the proposals for economies in unemployment insurance, and also the salary reductions. If is understood that the Trades Union Congress has told the Government it Would prefer tariffs to a reduction in the Unemployment benefits. It is learned that the Cabinet, which has agam been pressed by the banks, has decided to repudiate the Trades Union Council, and proceed with its plan for drastic economies, A revenue tariff was definitely ruled cut.

'lhe Conservatives and Liberals told the "Big Five" that its proposals were useless. The Cabinet will thereforo probably have to rearrange its entire proposals, and there is a great possibility of the Government's falling. -11)o Daily Telegraph says it lias been established that the Government has come to the conclusion that a tariff for revenue cannot be given a place on its programme, as it would split the Cabinet and possibly the Labour Party. Moreover, ' it would make further Liberal assistance impossible. 1 The Conservatives view the situation as being very grave and are preparing for a possible change in the Administration. In response to an urgent telegram Mr. r . Baldwin has left Aix-les-Bains for Lonfe don.