RESIGNATION

Hokitika Guardian, 25 August 1931, Page 5

RESIGNATION

NATIONAL GOVERNMENT POSSIBLE.

(British Official Wireless.) RUGBY, August 23. The Cabinet meeting lasted three .hours and thrqe-quarters. Just before it dispersed, the acting Leader of the Liberal Party, Sir H. Samuel, arrived at No. 10 Downing Street. He remained with the Prime Minister a.ter most of his Cabinet calleagues had left. THE OPPOSITION PARTIES.. RUGBY, August 23. Mr Baldwin 'arrived in London on Saturday from France. Passing through Paris, /he was interviewed, and expressed the hope that he would shortly -be on his way to Aix-les-Bains, wheie he *is spending a holiday. ' 1 Mr Lloyd George has not yet sufficiently recovered from his recent grave illness to (participate in the consultation, but Sir H. Samuel and 'Sir 1 D • Mac Lean, are in close agreement with Lord Reading and other leaders of the Liberals.! Mr Baldwin and the principal Conservatives met on Sunday. The Liberal shadow Cabinet met on Sunday afternoon. PRESS OPINION. V , ‘ ' J.l / , . ' PLANS FOR MORE ECONOMY. ’■ , t )v ( LONDON, August 34. The ‘.‘Sunday Express’! says: Cabinet has decided to resist the temptation to resign and will take the responsibility and let Parlianjpnt decide its fate. ‘ The ‘‘Sunday Observer” believes that the plans of the Government now 'include an internal luxury tax, doubling the entertainment tax, several forms of direct taxation,: reduction u ; pay for civil servants, but the police pay may be hiinimised. The “Sunday Times" says •—Elec-i tion talk . i». not credited in .any quarter. It 1 may be taken-for granted that Mr Snowden will propose, an increase in income tax, and higher duties on beer k ' and tobacco, thus the Government hope to convince its supporters of equality of sacrifice. 'y . ' , The “News of the 'World" says The Government has, prepared a statement designed to reassure foreignopinion/that the Budget will be balanced. This may be published to-night, and is hoped to end the financial crisis. As regards the political crisis, Mr MacDonald is resolved to submit liis policy to Parliament.

CABINET SPLIT. RESIGNATION EXPECTED. LONDON, August 24. In view of acute differences that are known to prevail in the Cabinet, there has been the expectation in London throughout the day, yesterday, that Rt. Hon. Ramsay MacDonald, would be compelled to resign. Summing up the position at midnight, the “Daily Telegraph” and the “Daily Herald” agree' that at least seven Ministers are prepared to resign rather than to accept a programme, which the Trade’s Union Council opposes. , The : Ministers are Messrs Henderson, Graham, Clynes, Tom Johnston, Greenwood, Lansbury and Adamson. PREMIER DISTRESSED. LONDON, August 24;. When Mr Mas Donald left Downing Street to see the King, his emotion was obvious. In his car, while going to the Palace, he was seen to take off his hat and then bury his face" in his hands. > LIBERALS’ TURN. The final blow to Mr Macßonnld.’s authority, came with tlm realisation that the Liberal Party’s objects’ to the Cabinet Scheme are now jus 4 as strong as those of the Conservatives. Indeed the view of the . Opposition parties have become harmonised to quite an unexpected exten* This is chiefly % owing to the stubborn resistance of. the seven Ministers mentioned to a drastic reduction in the cost of the employment insurance. The necessity for a reduction of ' the unemployment insurances is •stated to be greater because it is believed that the unemployment in Britain will total more than three million when the winter begins. Though the Cabinet was obviously tottering towards a fall, its actual resignation had not been decided unmi when the leaders called at Downing Street, dispersed, and anxious and tired out, Mr MacDonald wont to bed at 12.15 a.m, to-day. ,

OF MACDONALD’S CABINET KING RECEIVES POLITICAL HEADS NATIONAL GOVERNMENT FORMING MR MACDONALD AS LEADER. a —- MR BALDWIN TAKING OFFICE. CABINET’S LONG MEETING. KING FOREWARNED

LONDON, August 24. The majority of the Government is opposed to the idea of a National Government and there is little chance of it coining into being. If the three-party conference breaks down it is certain that the Government will resign. The King has already been advised of the probability of .this happening, if Mr MacDonald is unable A 0 carry out economies. TRADE UNIONS. ' ' i . : 1 .• CONDEMN PREMIER’S COMPROMISES. LONDON, August 24. The Trade Union , Congress’s belief is that the Government’s revised proposals only widen the cleavage and that, even if the Government succeeds in forcing cuts in the social services through Parliament, it would be forced to resign the very day after the Economy Bill received the Royal assent.

One T.U.O. leader added: “That Congress have also objected to Mr MacDonald’s airy and off hand manner with us. This Government was elected by a class to defend a class. At the first big test, it runs to make terms''with th e other parties." NO STATEMENT. NATIONAL GOVERNMENT PRESAGED P LONDON, August 24. The decision was taken not to issue a statement. This followed the arrival of Mr Baldwin, Sir H. Samuel and the other members of the Opposition at” Downing Street. The absence of a statement is interpreted to moan that the formation of a National Government was at least discussed, and that, therefore, Mr MacDonald’s resignation is contemplated after the Cabinet hblds a further meeting at midday to-day (Monday).

AMERICAN PREDICTION. . * LONDON, August 24. The “Chicage Tribute” has to-day published a cablegram, dated London, Monday, saying, “Britain will have a new Government to-day. The King will call upon Mr Baldwin to form a new adminsfcration, to cany out stringent measures of economy, which the Labour Governent dared not inflict against their own ranks. NEW GOVERNMENT FORECASTED. LONDON, Apgust 24. The “Daily Mail” says it understands that Mr Baldwin’s leadership of a National Government will be announced to-day. Mr Baldwin, it states, has previously declared that it would not form a National Government; but it is understood that, after bis conversation with His Majesty, his viewpoint has been profoundly altered.

FRENCH BANKERS. LONDON, August 24. The “Chicago Tribune’s” informant charges France with withdrawing gold from London at a terrific rate, He states that a total of tlire e hundred million sterling worth of gold has been withdrawn by France in the past fortnight. . ■ 3- ' > BRITISH CREDIT. WORST EFFECT OF COLLAPSE. LONDON, August 24. “The Times” says: “The collapse of British credit has hit, none more severely than the poor. Fifty millions of credit was granted by the Bank of England, but it. is 'now approaching exhaustion. .Within a few days, further credits must he obtained. and these will l>e unobtainable unless the Budget is balanced.”

MACDONALD CABINET RESIGN. LONDON. August 24. The MacDonald Cabinet has re signed.

(Received this day at 9.25 a.m) LONDON, August 24. The King received Mr MacDonald, Mr Baldwin, and Sir Herbert Samuel at the Palace with the Party Leaders. The “Central News” understands Mr Baldwin informed His Majesty that if Air MacDonald formed a National Government he was willing to serve under him. It is officially announced from the Palace that the formation of a National Government is under consideration. Mr Lansbury, posing for his photograph on the doorstep at No. 10 Downing Street., in going to a Cabinet meet,., ing said:—“lt is the last time.” FORMING NATIONAL GOVERNMENT. LONDON, August 24. Enormous crowds demonstrated as the Cabineteers entered No. 10 Downing Street. Cabinet rose a,t 12.25. A National Government is forming under Mr MacDonald’s leadership. Mr Baldwin is serving under him. FOR FINANCIAL CRISIS ONLY. Mr Lloyd George has been informed it is intended that the National Government confine itself to the financial crisis relinquishing office when this is overcome. OFFICIAL REPORT, ; (Received this dav at 10 a.m A LONDON, August 24. An 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.” MR THOMAS IN CABINET. Mr Thomas states lie 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. ■ MR LLOYD GEORGE. \ “I am not surprised at that;” commented Mr Llovd 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. THE LABOUR SPLIT. It is stated that the Labour Cabinet finally split on the proposed cut ot two shillings a week in the dole payments, LABOUR OPPOSITION,

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. “THE CRISIS OVER.” Mr MacDonald smiling broadly to the assembled crowd, on the way to the Palace said:— “The crisis is ended.” GERMAN COMMENT. BEr.LIX, -August ?■’. The British crisis monopolises attention in the papers. The ‘‘Vorwaerts’’ says the fall of the MacDonald Government is tragic. Sis second Ministry will occupy a glorious place in the history of the Labour movement. Its achievements in preventing international understanding will live long. Germany is particularly grateful for its support of the Rhineland evacuation.