BLAME FOR THE CRISIS.

New Zealand Herald, Volume LXVIII, Issue 20969, 4 September 1931, Page 9

BLAME FOR THE CRISIS.

VIEW OF LABOUR MEMBER. DICTATION BY BANKERS. KEEN FIGHT AT ELECTION. - y By Telegraph—Press Association—Copyright. (Received September 8, 8.2S p.m.) LONDON, Sept. 3. Commander J. M. Kenworthy, Labour member for Central Hull, in a letter to the Hull Labour Party, writes:—"The crisis is not of the Government's making. The difficulty was caused by financial houses and French and American bankers, who had dictated the way in which the Budget should be balanced, which is intolerable. "We are in for a very hard struggle. The general election may be soon, but the issue is simple, namely, whether Parliament is to be supreme, or the City of London, Wall Street and the Banque de France. "The Labour Party is fighting a small oligarchy of financiers."

LOYAL TO LEADER. EIGHT LABOUR MEMBERS. ONE GIVES HIS REASON. (Received September 3, 8.45 p.m.) LONDON, Sept. 3. The following Labour members of Parliament are supporting Mr. Mac Donald : Mr. Snowden, Mr. J. H. Thomas, Sir William Jowitt, Mr. Craigie Aitchison, Mr. Holford Knight, Mr. Malcolm MacDonald, Mr. J. A. Lovat-Fraser, and Mr. G. M. Gillett. Mr. Gillett states:—"The defeat of the Government would cause a financial panic. Accordingly I felt that I must follow Mr. Mac Donald's wise example." THE NEW REGIME. LABOUR LEADER'S FORECAST. SEMI-FASCISM COMING. (Received September 3, 8.45 p.m.) LONDON. Sept. 3. Mr. James Maxton, M.P., the leader of the Labour extremists, writing in the New Leader, says the National Government will fail to do more than find temporary solutions for the immediate troubles. The people had better prepare their minds for a semi-Fascist regime. It is obvious that new revolutionary tactics must be adopted by the Labour Opposition.

LABOUB MEMBER'S VOTE. f FREEDOM NOT SURRENDERED. DICTATION REPUDIATED. British Wireless. RUGBY, Sept. 2. Mr. Holford Knight, Labour member for South Nottingham, has informed the local party that he reserves his decision on his attitude to the new Government until its proposals have come before Parliament. . The only test he will apply, he said, is how far they satisfy the national necessities, and he repudiates dictation by the party caucus. PLANS FOR ECONOMY. REPORT REACHES CABINET. DISCUSSION OF TAXATION./ British Wireless. RUGBY, Sept. 2. At the Cabinet meeting to-day, which lasted for 2£ hours, the report of the subcommittee on finance was considered and the examination of the taxation proposals which will be disclosed in the House of Commons next week was begun. The Cabinet will meet again this evening. While speculation as to the main features of the proposals continues, it is generally recognised that no definite statement regarding any part of the Cabinet's plan will be made until it has been completed and placed before Parliament, which, it is officially announced, will meet on September 8.

DUTY TO BE DONE. MR. MacDONALD'S POSITION. LETTER TO CONSTITUENTS. LONDON, Sept. 2. The Prime Minister, Mr. Mac Donald, in a letter to the Seaham Labour Party, says he regrets that the resolution by its committee recommending that he be asked to resign his seat, was passed in ignorance of the facts. " The position of my colleagues and of myself is dictated by our determination to maintain the maximum standards of living and pay. Any action I may take in response, to any resolution will bo taken only after I lmvo finished my present duty. " STOCKS IMPROVE. GROWTH OF CONFIDENCE. NEWS OF CONVERSION LOAN. LONDON. Sept. 2. The Stock Exchange has a more confident tone, following the official announcement that the forthcoming war loan conversion will be purely voluntary and also that fixed interest-bearing securities will not be singled out for taxation.

Commenting on the improved tendency on the Stock Exchange to-day the evening papers refer to the growth of confidence which is due to the obvious determination of the Government to press on without delay with the scheme for balancing the Budget. • N