The Daily News TUESDAY, AUGUST 25, 1931. THE BRITISH CRISIS.

Taranaki Daily News, 25 August 1931, Page 8

The Daily News TUESDAY, AUGUST 25, 1931. THE BRITISH CRISIS.

Tile bare announcement of the resignation of the MacDonald Government might have been regarded as an indication that Great Britain was about to find the best way out of her political troubles,, but the issue is less clear in the light of the further statement that the Labour Cabinet is to be- succeeded by a National Government, possibly led by Mr. MacDonald. Unfortunately there is little in the recent news to indicate tire nature and the policy of the. supposed new combination, the original economy programme outlined by the Labour organ, the Daily Herald, having undergone very material changes. An emergency tariff to provide revenue was one of the early suggestions, but more recent statements have been to the effect that the Government had abandoned the idea for fear of splitting its own party. Very little in the way of economy was indicated in the Daily Herald’s original review of the situation, but now we are told that the Conservatives and the Liberals are at one in demanding far greater economies than Labour was prepared to initiate. Thetwo moderate parties also, aie reported to have set their Ijaccs against the very heavy additional taxation favoured by the Government as the easiest means of balancing the Budget; in fact, the calling in of help undoubtedly had the effect of involving Mr. MacDonald and his colleagues in even worse complications than they had to face previously. The result was that a financial crisis developed into a political crisis, the issue being no longer the recasting of Mi*. Snowden’s Budget, but the fate of the Government. Had it not been for the possibility of a sudden change. in the political outlook the King would not have returned to London immediately after leaving for his promised holiday in Scotland. That both His Majesty and his advisers were gravely concerned was emphasised by the fact that this was the first time the King had interrupted a holiday since the Irish crisis of 1914 compelled his presence in London. If his Ministers and the representatives of the other parties had' been formulating a joint policy under normal conditions there would have been no need for the King to forego his period of leisure, but if Ministers want to put in their resignations he must be there to receive them and appoint successors. It now appears that His Majesty’s action was well timed. Labour has been so divided as to have to resign, and it seems that a section of Labour’ will combine with the other two parties to take control. That such an arrangement can have any permanence is exceedingly doubtful. It has been suggested as an alternatime that the Conservatives and Liberals might together form a Government, though the two parties are divided by very considerable differences of outlook. They could probably carry on through the time of financial emergency, but their coalition, each party retaining its identity - and having its recognised proportion of Ministers, could not be permanent. Even if the attempt were made to see the country over the present crisis without an election disruption would only be delayed. An appeal to the electorate would probably be the wisest course, provided satisfactory arrangements could be made to carry on during the interval. The situation in Great Britain naturally interests New Zealand, not only by reason of the close relations between the Dominion and the Mother Country but also because economic conditions are exercising the same pressure here., as they are over-

seas. In New Zealand, however, one of the two moderate parties is in charge and has just taken action to bring the other moderate party and Labour into consultation as to the best means of recasting the Budget and making provision for the future. It is possible that here also the result may be something in the nature of a political crisis, but it would naturally work out in a different way. Here a National Government representing all parties would be just as hopeless a scheme as in Great Britain. There is, however, no serious difference in policy between the two moderate parties in New Zealand, and it would be easy for them, in the event of a crisis arising, to form one party and establish a sound Government, giving the electorate the earliest opportunity to confirm its appointment.