Mr MacDonald Resigns Following Definite Split in Labour Party.

Star (Christchurch), Volume XLIV, Issue 201, 25 August 1931, Page 1

Mr MacDonald Resigns Following Definite Split in Labour Party.

(United Press Association.— i3y Klectrie Telegraph.—Copyrigot.) (Received August 25, 11 a.m.) LONDON, August 24. The Prime Minister, Mr J. Ramsay MacDonald, has tendered his resignation to the King and has been invited to join in the formation of a National Government. The Labour Party has definitely split. The following official announcement has been made from Buckingham Palace: “ His Majesty has invited Mr MacDonald, Mr Baldwin and Sir Herbert Samuel to Buckingham Palace to give consideration to the formation of a National Government. A full announcement will be made later.”

The National Government is being formed under Mr MacDonald’s leadership. Mr Baldwin will serve under him. Mr Lloyd George has been informed that it is intended that the National Government shall confine itself to the financial crisis, relinquishing office when this has been overcome. Enormous crowds made a demonstration as the members of the Cabinet entered No. 10 Downing Street at noon. The Cabinet rose at 12.25 p.m. The King received Mr Ramsay MacDonald, Mr Stanley Baldwin and Sir Herbert Samuel at Buckingham Palace with other party leaders. Mr George Lansbury, when posing for his photograph on the doorstep of No 10 Downing Street, when going in to the Cabinet meeting, said: “This is the last time.” Mr J. H. Thomas, who held the portfolio of Secretary for the Dominions in Mr MacDonald’s Labour Cabinet, states that he is in the new Cabinet. It is understood that three other Labour Ministers, including Mr Snowden, will accompany Mr MacDonald in the new Cabinet, which will be small and will probably number twelve or fourteen. “ I am not surprised at that,” commented Mr Lloyd George when informed that a National Government was being formed. It is understood that Mr Lloyd George’s health will exclude him from the Cabinet. It is stated that the Labour Cabinet finally split on the proposed cut of two shillings a week in the dole payments. It is expected that Mr Henderson will lead the Labour Opposition when Parliament meets. Labour circles estimate that not more than fifty Labour members will support Mr MacDonald’s new Government. Mr MacDonald, smiling broadly to the assembled crowd on the way to the Palace, said: “The crisis is ended.” One T.U.CX leader said: “We objected to Mr MacDonald’s airy and off-hand manner with us. This Government was elected by a class to defend a class, and at the first big test it runs to make terms with the other parties.” “ The Times ” says: “ The collapse of British credit has hit none more severely than the poor. The sum of £50,000,000 granted by the Bank of England is approaching exhaustion. Within a few days further credits must be obtained and they will be unobtainable unless the Budget is balanced.” An informant of the “ Chicago Tribune ” charges France with withdrawing gold from London at a terrific rate, the total being 300,000,000 dollars in the past fortnight.