MOST DRAMATIC DAY

Pahiatua Herald, Volume XXXIX, Issue 11831, 22 August 1931, Page 5

MOST DRAMATIC DAY

BRITISH POLITICAL CRISIS

WILL GOVERNMENT RESIGN?

United Press Assn—By Electric Telegraph—Copyright. LONDON. August 21. Tlie • Cabinet meeting concluded to-night. The Economic Committee then received tlie Trade Union Congress delegation. Political circles are of opinion that the chief Conservative objection to the Government proposals is the weakness of the economy si,de. While Cabinet itself is sharply divided as regards ways and means of economy, the question of cooperation between the three parties is still in the balance until it is certain the Government will go further in the direction of economies.

Tlie Daily Afail says it was the most dramatic day in politics since the war. The Government's fate was in the balance at midnight when it was clear that a determined Opposition might succeed to power.

It is equally evident the Conservatives are not anxious for office, preferring to retain the Labour Government instead of inheriting its difficulties. It remains to be seen whether Air MacDonald will prefer a dramatic stroke. If he resigns the Conservatives will be compelled to take up the Government or force an immediate election. ASSATLED BY FRIENDS AND FOES. LONDON, August 21. It is generally agreed that the Government experienced a bad day and had to face candid criticism from friends and opponents alike in the Trades Union General Council, which sat in continuous session for nine hours. The Daily Express says Air Ramsay MacDonald gave the joint meeting only an outline of the Government’s proposals. A trade union representative who was present said afterwards that these were no different from what he had read in the papers. There was no mention of a tariff until someone inquired about it. The reply was: “Tariffs are in the air. AYe have not made a decision yet.” Air Philip Snowden was pessimistic and refused to disclose details of his taxation plans. It is understood that dole economies are the chief cause of the difference between the trade unions and Cabinet. The Daily Mail says that the T.U.C. bluntly told the Government that its proposals were not acceptable. MATTER. OF HOURS ONLY. FINANCIAL SITUATION DETERIORATING. . LONDON, A ugust 21. “Although the Government approached the .balancing of the Budget in the right spirit, it is unfortunate that the day has ended without a sign of a definite timetable for the next few hours.” •says the Times, in a leader, emphasising the urgent necessity for action owing to the financial situation deteriorating hourly until there is some dramatic proof that the extravagance of tlie' Government’s policy will be reversed. Delay will cause a renewal of the nervousness of the world. The antidote must be administered within a few hours. ECONOAIIES IN THE ARMY. LONDON, August 21. The Daily Telegraph understands that the Army Council has decided upon economies in pay and pensions, and subsidies for motor vehicles and horse breeding totalling £1,500,000.