BRITISH POLITICS.

Hokitika Guardian, 22 May 1930, Page 5

BRITISH POLITICS.

CABINET RECONSTRUCTION

[United Press Association.—By Electric

Telegraph—Copyright],

LONDON, My 21. The “Daily News” says that Mr Ramsay MacDonald will probably now. form practically a new Ministry. The paper adds that Mr J. H. Thomas may be gvien ail important Dominion post. <

REASON FOR MOSLEY’S ACTION « LONDON. May 20.

T!ie “Daily News” points out that Sir Oswald Mosley's resignation follows the Cabinet’s rejection ot his unemployment scheme and also Rt. Hon. J.. H. Thomas’s failure to satisr,v the House that he (Thomas) lias any unemployment policy at all.

CABINET IN TROUBLE

LONDON, May 21

Sir 0. Mosley’s resignation, following so closely on the drop in the Government’s majority is regarded by tho newspapers as ft political sensation \n opinion is generally expressed that the Ministry is getting into serous difficulties over unemployment, particularly with its own supporters, who are most disappointed, owing to there being ho check on the mounting figures.

The “Daily Herald” (Labour) in an editorial, states There is a large division of opinion 1 in the Cabinet on unemployment. Kis resignation is an open sign of the known fact that the Cabinet rejected Sir 0. Mosley’s memorandum, because it was antithetic to the Treasury doctrine that a great State loan would not create new work but would merely divert capital from one set of industries to another. Tire Cabinet bad not neglected any avenue of hope but we are dubious whether +ho Treasury dogma is really the last word in economic wisdom.

THE REJECTED PLAN,

LuNDON, May 21

The “Dailjy Herald’s” lobbyist says:—The rejected memorandum is believed to bo the joint work of Mr George Lansbury, Mr Tom Johnston and Sir 0. Mosley. It aimed at penboning the aged workers, and raising loans of £250,000,000 to finance work scheme. The Cabinet Committee that rejected the memorandum consisted of Mr Snowden, Miss Bondfield. Mr Greenwood and Mr Shaw. The grounds were that pensions were an over great burden at present on the State finances; that an attempt to raise a, 250 million loan on the money market would fail and that road schemes couhl not absorb large numbers of the cotton operatvies.

BUDGET PASSES SECOND READING.

LONDON, May 21

In the House of Commons,, after a long debate. Sir R, Horne’s (Conservative) motion to reject the Budget Pill Was defeated by 282 votes to 201 T V>e bill was then read the second time.