MR. SHOWDEN'S WARNING

Taranaki Daily News, 14 February 1931, Page 7

MR. SHOWDEN'S WARNING

drastic economy needed BOARD TO PAY MEN’S WAGES SPEECH HAS WIDE EFFECT LABOUR MEMBERS GLOOMY By Telegraph—Press Assn.— Copyright. Rec. 9.20 p.m. London, Feb. 12.

Beyond causing gilt-edged securities to drop and the value of the sterling, in New York to weaken Mr. Philip Snowden’s warning that drastic economy was urgently required in Britain is without visible effects in the City, which welcomes the declaration that extensive schemes of social reform must wait, though it considers Mr. Snowden’s pessimism may have a serious effect in foreign countries. "It might even make them insist on a gold clause in contracts with Britain.” Labour politicians, however, are very gloomy and dread the effect of the speech in the constituencies, particularly in the pending by-elections. Mr. Snowden’s phrase "the economic crisis will involve temporary sacrifice for all’’ is the key to Labour’s disquiet. The consultative committee of the Labour Party has summoned a meeting of the Parliamentary party for Tuesday afternoon, which Mr, MacDonald and Mr- Snowden will attend. The independent Labour Party group has also decided to refer the speech to its council with a view, to a campaign if wage cuts and reduced doles are attempted.

Sir Oswald Mosley described the speech as "putting the nation on starvation diet, which is the policy of an old woman in a fright.” . _ The Trade Union group, representing 8a Commoners, expelled Mr. W. J. Brown, regarding his attack last night on the Government as reprehensible and unwarranted. Mr. Snowden’s speech has been wildly circulated on the Continent, and was much discussed on the Paris and Berlin bourses. The summary broadcast throughout Germany aroused immense concern. The newspapers anticipate that Mr. MacDonald will follow the steps of Herr Bruening in reducing the salaries of civil servants and stimulating exports by lowering prices by means of a corresponding cut in wages. Hard on the heels of Mr, Snowden’s grave warning comes a Treasury resolution increasing the borrowing powers of the uneipployment fund during the deficiency period by £20,000/100 to £90,000,000. • It is explained that, excluding accrued interest, there is now a weekly debt of £985,000 under the fund. The National. Confederation of Employers, an organisation claiming to represent organisations normally employing 7,000,000, lias forwarded to Mr. MacDonald, Mr. Baldwin, Mr. Lloyd George and all Parliamentarians a statement urging that in view of the depression and unemployment, consideration be given to various proposals, including a reduction of unemployment benefit, the review of Government and local authorities’ wage levels in relation to exporting industries, the appointment of a national economy committee fixing a maximum sum of expenditure on social services, and also no legislation, further burdening industry until unemployment is reduced 5 per cent. .The statement contains statistics showing how Britain is handicapped by production costs compared with her competitors.