BRITISH MINISTRY

Southland Times, Issue 21089, 22 May 1930, Page 5

BRITISH MINISTRY

MEMBER RESIGNS SIR OSWALD MOSLEY’S DECISION POLITICAL SENSATION (United Press Assn.— By Telegraph—Copyright) (Rec. 5.5 p.m.) London, May 20. Sir Oswald Mosley, Chancellor of the Duchy of Lancaster, has resigned from the Ministry. Sir Oswald Mosley has been associated with the Lord Privy Se.al, Mr J. 11. Thomas, in devising measures for dealing with the unemployment problem. The newspapers state that Sir Oswald favours bolder meavres being taken on unemployment problems. The Daily News states that Sir Oswald Mosley’s resignation follows Cabinet’s rejection of his unemployment scheme and Mr Thomas’s failure to satisfy the {louse that he has any unemployment policy at all. Sir Oswald Mosley will be a formidable recruit to the Labour left wing, which has now definitely revolted. Mr MacDonald will probably now form practically a new Ministry. Mr Thomas may be given an import-* ant dominion post. A later message states that Sir Oswald Mosley’s resignation following so closely on the drop in the Government’s majority is re* garded by the newspapers as.a political sensation. The opinion is generally expressed that the Ministry is getting into serious difficulties over unemployment, particularly with its own supporters, who are most disappointed owing to there being no check to the mounting figures. The Daily Herald, in an editorial, states: There is a large division of opinion in the Cabinet on' unemployment. Sir Oswald Mosley’s resignation is an open sign of the .known fact that the Cabinet rejected his memorandum because it was antithetic to the Treasury doctrine that a great State loan would not create new work, but merely divert capital from one set of industries to another. The Cabinet has not neglected any avenue of hope, but we are dubious whether the' Treasury dogma is really the last word in economic wisdom.

The Daily Herald’s lobbyist says that the rejected memorandum is believed to be the joint work of Mr G. Landsbury, First Commissioner of Works, Mr T. Johnston, Undersecretary for Scotland, and Sir Oswald Mosley. It aimed at pensioning aged workers and raising a loan of £250,000,000 to finance work schemes. The Cabinet Committee that rejected the memorandum consisted of Mr Snowden, Chancellor of the Exchequer, Miss Bondfield, Minister of Labour, Mr A. Greenwood, Minister of Health, and Mr T. Shaw, Secretary for War. It was rejected on the grounds that pensions were an over-great burden at present on the State finances. An attempt to raise a loan of £250,000,000 would cause the money market to fail, while the road schemes could not absorb large numbers of cotton operatives.