GOVERNMENT’S FATE

Hokitika Guardian, 22 August 1931, Page 5

GOVERNMENT’S FATE

IN THE BALANCE.

United Press Association— By Electric Telegraph.—Copyrigot.)

LONDON. August 20

The “Daily Mail” says: “This has been the most dramatic day in prlilics since the war. The Government’s fate hung in the balance at midnight, when it was clear that a determined Opposition might have succeeded in replacing the Government in power. It ws equally evident, however, that, the Conservatives were not anxious for office, they preferring to retain the Labour' Government in office, instead ot inheriting the present difficulties. It remains to be seen whether Mr Rainsay MacDonald will pre'er to make n dramatic stroke. If he does resign office, then the Conservatives will be compelled to take up the government of the country, or there will be an immediate election. CRISIS REACHED. “THE TIMES’S” ANXIETY. LONDON, August 21. “Although the Government have approached the balancing of the Budget in the right spirit, it is unfortunate that the day- has ended without any sign of a definite timetable for the next few hours,” says “The Times,” in a lending article, “The Times” emphasises tlto urgent necessity for action, owing to the fact that the financial situation is deteriorating each hour, until there is some dramatic proof that the extravagance policy will he reversed. The delay will cause a renewal of the nervousness of the world. An antidote must be administered within, a few hours.”

BRITISH POLITICAL SITUATION,

OF THE GRAVEST CHARACTER,

(Received this day at 9.25 a.m) LONDON, August 21

It is understood the Trades Union Congress to-day told the Government they would prefer tariffs to a reduction of unemployment benefits.

The Conservatives view, the situation as of the gravest and are preparing for a possible change of administration. In response to an urgent telegram Mr Baldwin leaves Aix-Les-Baines for London.

A CRITICAL POSITION.

OF BRITISH GOVERNMENT.

(Received this day at 10.15 a.m.) LONDON, August 21.

The position late to-night remained critical. The Government still, refrains from making a statement. Cabinet sat continuously until four. The Big Five were then summoned. Conservatives, Liberals and /Trade Union Congress Council announced the decision to refer the Government’s proposal to a full Congress at Bristol on 7tli September, Jt amounts to a volte face because the Trades Union Council is well aware of the necessity for urgent action.

Trades Union Council rejected the proposals or economies in unemployment insurance and also salary reductions.

It is learned that Cabinet which has again been pressed by the banks, has decided to repudiate the Trades Uni'n Council nnd proceed with the plan for drastic economies. A revenue tariff ha s been definitely ruled out. Conservatives and Liberals told the Dig Five that the proposals were useless. They demanded greater economies and less taxes. Cabinet will therefore probably have to rearrange ' the entire proposals. There is still the possibility of the Government falling.