CLEAVAGE IN LABOUR.

New Zealand Herald, Volume LXVIII, Issue 20960, 25 August 1931, Page 9

CLEAVAGE IN LABOUR.

TIiADES UNION FEELING. OBJECTION TO ECONOMY PLAN FATE OF MINISTRY SEALED. By Tele graph—Preps Association—Copyright. (lleceiTed August 24, 7.45 p.m.) LONDON". August 24. The Trades Union Congress believes that the Government's revised proposals will widen the cleavage with it. Even if the Government had succeeded in forcing the cuts in the social services through Parliament it would have been forced to resign the day after the Economy Bill had received the Royal Assent. One trades union leader added: "We also objected to Mr. Mac Donald's airy, offhand manner with us. This Government was elected by a class to defend a class. At the first big test it runs to make terms with the other parties."

PUBLIC EXCITEMENT. CABINET ACUTELY DIViDED. SEVEN DISSENTIENT MINISTERS. LONDON. August 23. Not, since the opening of the general strike in 3926 have such crowds filled Downing Street as were present this evening owing to the quickening of public interest,, chiefly by the King's hurried return to London. The precincts of Buckingham Palace were all day surrounded by people, while Whitehall and Downing Street never had their normal Sunday quiet appearance. By the evening the crowds were very dense, both m Downing Street and outside the Palace. Ministers had the greatest difficulty in elbowing their way to No. 10. Miss Margaret Bondficld, Minister of Labour, was held up by a constable and not allowed to pass until she explained that she was a Cabinet Minister. More police had to be called to handle the throng, and eventually it was decided to take the unusual course of clearing the whole street. In view of the acute differences known to prevail in the Cabinet, there was an expectation in London all day that Mr. Mac Donald would finally be compelled to resign.

Summing up the position at midnight the Daily Telegraph and Daily Herald agree that at least seven Ministers are prepared to resign rather than accept a programme which the Trades Union Congress opposes. These are Messrs. A. Henderson, W. Graham, J. E. Clynes, Tom Johnson, Arthur Greenwood, George Lansbury and William A damson. When* Mr. Mac Donald left Downing Street to see the King, his emotion was obvious. When in a car going to the Palace he was seen to take off his hat and bury his face in his hands. The final blow to Mr. Mac Donald's authority is the realisation that the

Liberal objections to the Cabinet s scheme are now just as strong as those of the Conservatives. 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 a drastic reduction in the cost of employment insurance. The necessity for the reduction is greater because it is believed that the total of the unemployed will be more than 3,000,000 when winter begins.

Although the Cabinet is obviously tottering to its fall its actual resignation was not- decided upon when the leaders who were called to Downing Street dispersed and Mr. Mac Donald, anxious and" tired out, went to bed at 12.15 a.m.