BRITISH POLITICS.

Waikato Times, Volume 107, Issue 18026, 22 May 1930, Page 5

BRITISH POLITICS.

SIR OSWALD MOSLEY. DIFFERENCE ON UNEMPLOYMENT. BOLDER MEASURES WANTED. United Press Assn.—Elec. Tel. Copyright. RUGBY, May 20. Official wireless messages from Rugby state that Sir Oswald Mosley, Chancellor of the Duchy of Lancaster, has been associated with the Lord Privy Seal (Right Hon. J. H. Thomas), in devising measures for dealing with the unemployment problem. The newspapers state Sir Oswald favoured bolder measures on unemployment problems. CABINET CRISISREVOLT IN LONDON RANKS. MINISTER’S SERIOUS DIFFICULTIES. LONDON, May 20. The Prime Minister, Mr MacDonald, probably will form a practically new Ministry and Mr Thomas may be given an important Dominion post. The resignation of Sir Oswald, following as it did so closely upon the drop in the Government’s majority yesterday in the division in-the House of Commons on the amendment to reduce the vote for the Department of Labour, is regarded by the newspapers as a political sensation. The opinion is generally expressed that the Ministry Is getting into serious difficulties oyer unemployment, particularly with its own supporters, who are most disappointed owing to the fact that there is no check .on the mounting figures. The Daily Herald says there is a large division of opinion in the Cabinet on unemployment. Sir Oswald’s resignation is an open sign of the known fact that the Cabinet rejected his memorandum because it was antithetic to the Treasury’s doctrine that a great State loan would not create work, but merely divert capital from one set of industries to another.

,l The Cabinet has not neglected any avenue of hope,” says the paper, “ but we are dubious whether the Treasury’s dogma is really the last work in economic wisdom.” j The Parliamentary correspondent of the Herald says the rejected memorandum is believed to have been the joint work of Mr George Lansbury, Mr Tom Johnston and Sir Oswald Mosley. It aimed at pensioning aged workers and raising a loan of £250,000,000 lo finance schemes of work. The committee of the Cabinet which rejected the memorandum consisted of Mr Phillip Snowden, Miss Margaret Bondfield, Mr A. Greenwood and Mr Tom Shaw. / Their grounds w r ere that pensions were too great a burden in the present state of the country’s finances and that an attempt to raise a loan of £250,000,000 on the money market would fail; also that road schemes could not absorb large numbers of cotton operatives.

LATER SIR A. MOSLEY’S COMPLAINT. HONOUR AT STAKE. LOYALTY TO PARTY. (Official Wireless.) (Received May 21,, 11.45 a.m.) RUGBY, May 20. In the House of Commons Sir Oswald Mosley made a statement on the reasons which led tQ his resignation from the Government. Fie read a letter he had addressed to Mr Ramsay MacDonald in which he -stated that on January 23 he submitted a memorandum on unemployment and in a covering letter made it clear that he had reached the very definite conclusion that it w 7 as Impossible to continue as at present. The Cabinet subsequently appointed a committee, which presented a report, which not only rejected in its entirety the memorandum, but also adopted a position which would involve the rejection of any effective alternative to the present policy. In those circumstances he held it .inconsistent with honour for him to remain a member of the Government. On the back benches he should remain, in vote and action, a loyal member of the Labour Party.