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Hokitika Guardian, 25 August 1931, Page 4

The news of the resignation of the Labour Government at Home will come ns something of a surprise, not only to the Empire, hut to the world at large. There was just a. hint of tins possibility in the criticism of the French press reported in. the cable news the evening previously. There was also the hurried return of the King from Scotland, and the successrve conferences between' the party leaders. Earlier the leaders of these parties had conferred, and it would appear the proposals for righting the national

finances were more exacting than Labour was prepared to attempt. It lias to be borne in mind that so far as the, financial policy of the Labour party at Home is concerned, the dictum of Mr Snowden is all powerful. It is well known that he i.s an ardent free trader, and is not prepared to sacrifice his principles on that issue. Whether this was the main factor in the resignation remains to be - seen. It is known that " a radical policy in regard to finance must be pursued to ensure stability; and on the face of it Labour lacked the courage to attempt the task. It may he tactics to leave it to the Conservatives to do the job, but the act of running away so that the Labour party may live to fight politically another day, lacks the courage one might expect to see displayed in such a national crisis. The circumstances are that the Labour party’s policy brought about a serious financial position, and in the moment of pressing need, the party is prepared to leave it to someone else to clear up the position. Events at Home will have their effect on the New Zealand position—and no doubt Australia. Here the effect will be instantaneous because just now Parliament is at olose grips with a similar position as in England, and it remains to be seen how far Labour will go with the other parties in tile endeavour to right affairs; [Since the above iVas ill print, news has coin© stating a National Government is being formed.]