THE BRITISH CRISIS.

Otago Witness, Issue 4048, 13 October 1931, Page 26

THE BRITISH CRISIS.

DISSOLUTION GRANTED. POLLING ON OCTOBER 27. LONDON, October 0. With the certainty of an impending election the House of Commons was less than half filled during a lifeless question time, in which Mr Ramsay MacDonald, yielding to Mr A. V. Alexander's entreaty, told members that the King had granted his request for a dissolution. The announcement was received with surprising tameness. There were no cheers from the Labour benches. Members in stead trooped into the lobbies, arranging to scamper to their constituencies for the short, sharp fight. By contrast there were the wildest scenes when the announcement wasjnade at the Labour Conference at Scarborough. After Mr Henderson had revealed the date of polling Mr Lansbury jumped hi the platform and began singing the “ Red Flag,” in which the delegates and onlookers joined, and this was repeated again and again. The date of the general election is fixed for Tuesday, October 27, and the new Parliament will meet on Tuesday, November 10. Arrangements have thus been made to reduce the delay incurred by the general election to the minimum allowed by the constitutional procedure. GIFT TO THE EXCHEQUER A SULTAN’S GENEROSITY. LONDON, October 6. The Sultan of Jahore, who is at present in London, has given £5OOO to the exchequer to help Great Britain during the crisis. Mr J. H. Thomas, in acknowledging the gift, said it was evidence of devotion to the Crown, and would create a profound impression throughout the Empire. MR HENDERSON’S OPPONENT LONDON, October 7. Mr Arthur Henderson's opponent is Rear-admiral Gordon Campbell, who won the Victoria Cross as a Q-boat commander. KING’S PROROGATION SPEECH RUGBY, October 7. The King’s prorogation speech, road in the House, contained the following passages:—“My relations with foreign Powers continue to be friendly. I hav* been following with interest and sympathy the resumed deliberations of the Round Table Conference. I trust joint endeavour may produce agreement on a plan which commends itself to the judgment of wise statesmanship. In the last few weeks my people have been called upon to face a financial and economic crisis, which continues to give cause for anxiety. The measures taken to meet this emergency involve sacrifices from every member of the community. I am confident that, as on former occasions in the history of this country, every citizen will co-operate to the utmost in restoring prosperity to the nation.” THE PRIME MINISTER APPEAL TO THE NATION. RUGBY, October 7. At the beginning of the election campaign the Prime Minister issued “an appeal to the nation” as follows: — “ The present National Government was formed in haste to meet a swiftly approaching crisis. It stopped borrow ing, imposed economies, and balanced the Budget. World conditions and internal financial weaknesses, however, made it impossible for the Government to achieve its immediate object. Sterling came off the gold standard, and the country must now go through a period of recovery and readjustment during which steps of the utmost importance, nationally and internationally, must be taken to secure stability and avoid a recurrence of the recent troubles.

“ A monetary policy which will establish sterling in confidence and authority, international agreements which will remove some of the most frightful causes of economic misfortunes, like war debts and reparations, from which the whole world now suffers so grievously, and plans to change any adverse balance into a favourable balance of trade will have to be set going without delay. In the background of this work, and studded at every point in connection with it, must be the question of unemployment, especially in its most important aspect of finding work by the expansion of markets both at Home and abroad.

“As it is impossible to foresee in the changing conditions of to-day what may arise, no one can set out a programme in detail on which specific 'pledges can be given. The Government must, therefore, be free to consider every proposal likely to help, such as tariffs, expansion of exports and contraction of imports, commercial treaties, and mutual economic arrangements with the dominions. It must teach how the devaluation of money and the economies which had to be made to balance the Budget affect the lives of our people, and take every step which can be made effective to protect them against exploitation. It must be made plain, however, that whilst everything possible will be done to meet hardships, the Budget must not be allowed to slip into deficits.

“In these days of transition and uncertainty we must all pull together, and by our co-operation now strive to put a new spirit of energy and hope into our people. These things cannot be done by political parties fightjfig partisan battles on platforms and in Parliament, but they must not involve the loss of political identity, because the immediate tasks are temporary, and when finished will be followed by the normal political activities. They do mean, however, willing co-operation between all political parties acting together through their representatives and shouldering joint responsibility for discussion, examination, and action.

“National unity through the cooperation of parties—all parties by preference if that were possible—is as essential now as it was in August. In August a combination had to be improvised hurriedly both as regards the Government and its supporting parties an 1 the groups in Parliament. Now with the prospect before us, and so many world indications of uncertainty still threaten ing, it is essential that the nation’s sup port of the Government policy should be placed beyond the shadow of doubt. “ Parliament has to be endowed with fresh life and new mandates, so an elec tion was unavoidable. The working of parliamentary institutions, democratic responsibility, and constitutional practice demand it. An election, of the result of which there must be no uncertainty, is also necessary to demonstrate to rhe whole world the determination of the British people to stand by each other in times of national difficulty and to support any measures required for placing themselves and their credit in an unassailable position. That is the basis of every security which our people have. “In August we won the admiration of the world by our instant subordination of party politics to the national interest. Let us now prove that we are determined to see the matter through until we have brought the country out beyond these cloudy days into clearer and more tranquil times.”

FAREWELL TO MR SNOWDEN LAST APPEARANCE IN HOUSE. RUGBY, October 7. As it was the last occasion on which the Chancellor of the Exchequer (Mr Philip Snowden) would appear on the floor of the House, owing to ill-health, thus ending his career in the House of Commons, the Speaker and many members of all parties made a special point of bidding him farewell. SIR JOHN SIMON MESSAGE TO CONSTITUENTS. RUGBY, October 7. Sir John Simon, chairman of the newly-formed Liberal National organisation, in a message to his constituents, says: “ Mr MacDonald has shown the courage that the crisis demands, and Mr Baldwin's willingness to stand by his side without disputing pride of place is an example to everyone, and I eall upon everyone I can influence to take the same course and make common cause against a common danger.” AN OPEN MANDATE SOUGHT. APPEAL TO THE PEOPLE. RUGBY, October 8. The dissolution proclamation was issued in the London Gazette last night. The Prime Minister (Mr Ramsay MacDonald), in a broadcast address, said that when it was formed n August the Government contemplated a brief life, finishing by the re-establishment of security and immediate return to normal political conditions. The new situation created when the sterling went off a gold basis made that impossible for some time to come, and the Government had been compelled to ask the country for a mandate and support which could be weakened by no fa.'’on, and by no opposition, cither organised or disorganised. Summarising the work before the Government, Mr MacDonald said: "First of all the pound must be stabilised and in this the Government has to bear some responsibility. It must come to an understanding with other countries which have also gone off the gold standard.” The work which the Government had in hand, though it had a kind of bankers’ appearance, was really a protection of the living wage of earners from one end of the country to the other. Another goal they must strive to reach was to balance imports and exports. “ To do this we shall adopt two kinds of action —we shall try to increase the exports, which is the best way, and to reduce our imports. Whatever the remedy is, the Government wishes to do the most effective thing, and it asks the country to give it power to do so. While things are settling down the Government proposes to watch continuously how these changed financial conditions affect the standard of living of the people, and it will not hesitate to take every practical step to protect them against exploitation. “ Even our economies must be watched lest they become really oppressive. But it must be clearly understood that expenditure which has to be met by loans, and which makes it impossible for the Chancellor of the Exchequer to balance the Budget, may be very gratifying at the moment, but it has to be paid for in the immediate future by * deener poverty and distress. The Government needs to

enter into international conferences regarding the economic and financial situation of the world, and must use its influence to remove the imp linn nts to commerce and finance which have contributed so largely to the present breakdown. “ We are still confronted, for instance, with the consequence of paying, or trying to pay, war debts and reparations, the uneconomic distribution of gold, the wide spread freezing up of credits and suchlike vital matters, and in dealing with these great problems the Government must clearly be able to work in security ar regards itself and in harmony with the countries involved so that settlements may be regarded as just and tolerable by them all. “ The present Government and the present Parliament cannot enter upon such labours without a mandate in the form of a vote of confidence from the nation. The result of this election is to prove to the world that the pillars of the State are sure, and although, with the rest of the world, we are hit hard, we have the will and the endurance to come through with our reputation enhanced.”

CONSERVATIVE MANIFESTO SUPPORT FOR GOVERNMENT. RUGBY, October 8. Mr Stanley Baldwin has issued a manifesto on behalf of the National Government. He recalls that his decision to join the National Government was unanimously endorsed wo months ago by Conservative members and candidates. They then expected the cooperation to be for only a few weeks, but recent events made it necessary that this period should be extended. The Budget had been balanced, borrowing had been stopped at the cost of sacrifices from every class, which he hoped and believed as a result of the continuance of their policy might be temporary, but they could not yet balance the "trade account of the nation. In other words they were not yet earning enough to pay for what thej had to buy fronCoverseas. “To complete this work,” he said, “it is imperative that the Government should have a national mandate, giving it freedom to use whatever means may be found necessary, after careful examination, to effect the end in view. It is necessary that, in place of a small parliamentary majority, we should have a stable Government with a large majority, backed by the resolution of a great majority of the electors. In the international field we have to consider war debts and reparations, disarmament, the unequal distribution of the world supply of gold, and the mutual financial dependence of the countries of the world. These questions may well tax the statesmanship of all nations. At home the paramount question is that of the adverse balance of trade, the redress of which is essential to secure our financial stability. This can be accomplished only by reducing imports and by increasing exports or by a combination of both. I am prepared to examine any method which can effect what is required. I recognise that the situation is altered by the devalution of the pound, but in my view the effect of that devaluation •"an be no valid substitute for a tariff carefully designed and adjusted to meet present needs. I shall therefore continue to press upon electors that the tariff is the quickest and most effective weapon not only to reduce excessive imports but to enable us to induce’ other countries to lower their tariff walls.”

Regarding agriculture the manifesto advocates assistance to cereal farmers by means of a quota and a guaranteed price for wheat, to secure farmers against dumping, and to make Imperia) treaties which might be of enormous value to the nation. They required such a free hand as would allow the use of prohibitions, quotas, or duties as may seem most effective. The problem of the Empire was to secure economic unity. He hoped that the Canadian Government would renew its invitation to the Ottawa Conference, and there would be a unique opportunity when the National Government accepted such an invitation. LIBERAL CAMPAIGN OPENED LONDON, October 9. Sir Herbert Samuel, opening the • Liberal campaign at Bradford, said that if he had agreed to endorse commitment to tariffs the party would have been more seriously divided than it was at present. The Liberals opposed the taxing of the people’s food, and would not agree thereto. The Government must impartially examine the question of the adverse trade balance, and if it were found necessary to restrict luxury imports, as proposed by Mr Walter Runciman, the Liberals must not close their minds against such a possibility, but permanent tariffs, as advocated by the Conservatives for years, were not related to the present emergency. LABOUR’S FINANCIAL POLICY CONTROL OF THE BANKS. LONDON, October 9. Sir Stafford Cripps, speaking at Hull, said that Labour had a complete scheme ready to take over the Bank of England. They would control joint stock banks and govern the operations of discount houses. It was not intended to restore the pound to the gold standard, but to adopt means to prevent it from going too low, inelud ing having at the Government’s disposal foreign investments

THE NUMBER OF CANDIDATES UNDER THIRTEEN HUNDRED. LONDON, October 9. Arrangements are being made to provide that 25 Liberals who were in the last Parliament will be unopposed by Conservatives, and other cases are being considered. These members include Mr J. I. Macpherson, Sir Robert Hutchison, Sir William Edge, Mr G. Lambert, Major Hore-Belisha, Sir John Simon and M r Walter Runciman. It is predicted that the number of candidates will be under 1300, of whom the Conservatives and Labour will provide 1000. The shortness of cash is having a moderating effect. One candidate went to party headquarters and inquired what help he was likely to get, and when he was told £25 he immediately cancelled his candidature. MR PHP IP SNOWDEN PARTICIPATION IN CAMPAIGN. LONDON, October 9. Although for health reasons he is not again standing for Parliament, the Chancellor of the Exchequer (Mr Philip Snowden) will participate in the election campaign on behalf of the National Government. MR WALTER RUNCIMAN STANDING AGAIN FOR ST. IVES. LONDON, October 9. Mr Baldwin's manifesto commands rb<> approval of the Conservative press, thus Conservative unity is assured. Sir George Hennessy, assistant chief Whip, is acting as liaison officer between the Conservative central office and local associations with a view to the avoidance of overlapping and vote splitting. Mr Walter Runciman, who had previously announced that be was retiring from St. Ives for business reasons, has now joined the National Liberals, saying that he will support tariffs, if necessary, to a-'oid a crisis. The local Conservatives, however, have a strong candidate ready to fight Mr Runciman. Another curious situation has arisen at Luton, where three candidates—Conservative, Liberal and Labour—all claim the support of the National Government. LEADERS TO BROADCAST RUGBY, October 10. The Broadcasting Corporation is making arrangements for the party leaders to have equal opportunity to address the electorates. It is expected that Mr Baldwin and Sir Herbert Samuel will also speak for the Government, and Mr Henderson for the Opposition. Mr Lloyd George will explain bis own standpoint through the microphone. THE TARIFF REMEDY SIR H. SAMUEL'S VIEWS. RUGBY, October 10. Sir Herbert Samuel, explaining his views on the tariff question in a speech last night, said he thought that no single solution could be found for tincomplex economic problems that had to be faced. It might be that there was need for some emergency measures in order to restrict certain classes of imports, although it would be equally foolish to assume on the one hand that tariffs were the only possible and effective remedy, or on the other that the old conclusions to which the Freetraders had arrived must necessarily suit the changed premises. “ We must rule nothing out beforehand, and if it should be found by impartial inquiry and expert assistance that it is necessary to impose some restriction we must not say that we have our minds rigidly closed to a possibility. With regard to permanent tariffs, as proposed for many years past by the Con servative Party, it may be right or wrong, but the proposal is not directly related in the Liberal view to the present emergency.” PROBABLE CANDIDATES CHALLENGE BY LABOUR. LONDON, October 10. It is reported that 50 National Labour candidates, who will give full support to the Prime Minister, will stand for various constituencies. The Labour Party, under Mr Henderson, announces that it will challenge Government candidates wherever possible, and 500 Socialist candidates may be in the field. The Conservatives anticipate that about 500 of their candidates will contest the election in support of Mr MacDonald’s programme, supplemented by Mr Baldwin’s manifesto. THE LIBERAL PARTY MR LLOYD GEORGE'S PpSITION. LONDON, October 10. The Liberal Party is disunited owing to the opposition of Mr Lloyd George to the policy of the Liberal members of the Government in supporting a policy of a free hand for the National Govern ment, including possible emergency tariffs. It is stated that only about 20 Lloyd George Liberals will stand as candidates. About 30 Liberal followers of Sir John Simon, who has embraced the tariff policy,

are expected to contest seats, and so far as is at present known probably the sama number of National Liberal supporters. Sir Herbert Samuel will be nominated. OPPOSITION MANIFESTO NO CONFIDENCE IN TARIFFS. LONDON, October 9. The. Official Opposition has issued a manifesto signed by Mr Henderson, Mr Clynes, and Mr Graham. It states: “ Tie fall of the Labour Government was due to the clamour of the bankers and financiers. The National Government was installed in order to wrest from Parliament the authority to satisfy them. The Labour Party proposes to call an international conference to arrive at a concerted monetary policy, also an immediate international conference to cancel war debts and reparations and to bring about disarmament. The banking credit system of the country cannot longer be left in private hands. It is necessary to form a National Investment Board with power to control domestic and foreign investments. The Labour Party has no confidence in tariffs, but the capitalist system has broken down. It fails to give employment to millions of willing workers, and accumulates vast stocks of commodities. Socialism provides the only solution to the evils. An Import Board must be created for foodstuffs, raw materials, and manufactures, with power to regulate purchases, consumers being protected by effective regulation of prices. Land must also be publicly owned and controlled in order that agriculture may be made prosperous. Given a majority the Labour Party pledges itself to unsparing efforts to remove the spectres of want and insecurity from the homes of the people.” INDEPENDENT LABOUR PARTY “ DECAYING CAPITALISM.” LONDON, October 10. The Independent Labour Party manifesto, signed by Mr Fleming Brockway, insists that the present economic system has broken down, and industry, finance, trade, and agriculture are collapsing the world over under the futile reform of decaying capitalism. The nation must find a new life in creating Socialism, which will take control of the whole economic life. The tyrannical and disastrous rule of the bankers must be ended. “We have begun the final decisive struggle between capitalism and Socialism.” LIBERAL MANIFESTO CO-OPERATION WITH PRIME MINISTER. LONDON, October 10. The manifesto of the Liberal leader (Sir 11. Samuel) declares that the worldwide depression demands the highest statesmanship to prevent disasters of the greatest magnitude, reiterates that the election should not be held, and emphasises the duty of co-operating with the Prime Minister to maintain a stable allparty Government. The vital need, it is stated, is the avoidance of inflation, entailing a reduction of the purchasing power and lowering the living standard. International action is needed to stabilise the currency, and to deal with war debt reparations and lower tariff barrier's, which are the chief cause of Hie depression and of unemployment. Freetrade is the only basis for the welfare of the Empire and the world. IMPORT BOARDS FOODSTUFFS FROM DOMINIONS. LONDON, October 10. Mr Henderson says that the Labour Party always insisted on import boards in preference to tariffs, which would increase the cost of the workers’ food. “We will establish import boards here, enabling extensive purchases of foodstuffs from the dominions.” THE NATIONAL CONTEST CONSERVATIVES AND SOCIALISTS. LONDON, October 10. An alignment of the new parties shows that since the National Labour aud the Official Liberal comprise a mere handful of candidates the real fight lies between the Conservatives aud the Socialists, with all the symptoms of a bitter class struggle. The Times publishes a list of over 1220 candidates, compared with 1730 at the last election. Labour is determined to fight every possible seat. MR THOMAS’S CANDIDATURE LONDON, October 10. Mr J. H. Thomas, at a large meeting at Derby, secured adoption as a National Labour candidate. There were 30 dissentients. Mr Thomas said he desired Freetrade throughout the world mote than anything else. He was prepared to use tariffs as a bargaining lever. Mr Strauss, a Conservative, has announced that he wiU not proceed with his candidature for Huddersfield as a Liberal candidate, as he is unqualifiedly supporting the National Government. Sir Edward Grigg, Conservative candidate for Central Leeds, has withdrawn in favour of the late Labour member, Mr Richard Denman, who is standing in the National interests.