LABOR’S VOLTE FACE

Poverty Bay Herald, Volume LV, Issue 17606, 23 October 1931, Page 5

LABOR’S VOLTE FACE

ME. SNOWDEN HITS OUT EX-MINISTERS SHOWN UP LONDON, Oct. 21. How 15 out of 20 Labor members of Cabinet voted for tho immediate imposition of a .10 per cent, revenue tariff as an alternative to the dole “cut” is revealed by Mr. Philip Snowden in the course of his reply to Mr. W. Graham's broadcast assertion that Cabinet had not decided in favor of a revenue tariff. Mr. Snowden says that Messrs. Graham and Henderson were the strongest supporters of a tariff. Mr. Graham informed Cabinet that a .1.0 per cent, tax on manufactured and semi-manufactured imports would yield £25,000,000 a year, and a tax on all imports £00,000,000. Cabinet at first voted by 15 to five in favor of the first proposal, and then by five to 15 against levying a duty on all imports, including food and raw materials. Mr. Graham supported both proposals. Thereafter the scheme was dropped as unanimity was .impossible and it .was feared that persistence would break up Cabinet. Mr, Snowden also replied to Mr Graham’s statement that the Prime Minister and Mr. Snowden told Cabinet that Mr. Harrison, of tho New York Reserve Bank, insisted on a 10 per emit, cut in unemployment pay, as a condition of the loan. Neithor Mr. MacDonald nor himself had ever been in communication with Air. Harrison. What happened was that tho Bank of England reported that tho American banks insisted on an assurance that tho budget should be balanced. They never insisted on or suggested a cut in unemployment pay, neither did tho Bank of England. What they did say was, “You must balance tho budget if you want to restore foreign confidence.” It was for tho Government to decide what economies to mako and what taxation to impose. When there came the final decision about the 10 nor cent, cut in unemployed pay tho Primo Minister and himself were authorised by Cabinet to inquiro from the Bank of England whether a programme totalling £7(5,000,000, including a 10 per cent, dolo cut, would enable them to secure the necessary loan. On receiving an affirmative reply more than half the Labor Cabinet were in favor of including the dole cut. An cx-Cabinet Minister, Mr. T. Johnston, in a speech in reference to Air. Snowden’s disclosures, said that if Air. Snowden continued to publish half-truths and untruths about Cabinet happenings, it would be the duty of Labor ex-members of the Cabinet to ask tho King to release them from their oath of secrecy, to enable a disclosure of all that happened during the closing days of the Government,