BRITISH CRISIS

Hokitika Guardian, 26 August 1931, Page 5

BRITISH CRISIS

LABOUR’S OPPONENTS. (United Prflee AB»ociation—By Electric i'ele*r aph— Uopyrigkri. LONDON, August 25. v The formation of the National Cabinet has greatly .shocked the late Government's opponents, who (according to ’“The Times’') were planning an opposition campaign in which there was to be war with gloves off. i M MR H END Ell SON'S POSITION. GENEVA, August 25. Although. lit. Hon. Arthur Henderson’s appointment to the Presidency of the Disarmament Conference is a personal one, it is thought that lie will tender his resignation; “THE TIMES’S” ATTACK. LONDON, August 25. “The Times” says: “Despite , the fact that he ought to have known the realliity of the danger fronting the country, Mr Henderson has chosen to aim at a leadership of folly, instead of loyally following a course of wisdom, At one time, he was apparently einerg. ing from the Foreign, Secretaryship" with oredit. Now he is likely to be remembered for a final indiffernce to Britain’s position in the eyes of the world.” > BANKERS BLAMED. . T BY LABOUR’S NEW LEADER. LONDON, August 2-5. It is expected that Mr Arthur Henderson will now lead the Labour Party. Mr Henderson firmly believes that the London bankers are the villains of the piece," and he attributes the crisis to their bungling in insisting on the premature return of Britain to the gold standard. jl MORE AMERICAN CREDIT. FOR BANK OF ENGLAND

NEW YORK. August 24. The United States Secretary of the Treasury, Mr Mellon, arrived here today. He immediately went into a conference with Mr Harrison, the Governor of the Federal Reserve Bank. -It is generally believed that the conference is one concerning the British financial crisis. It is also reported that the most ’ prominent bankers in the country ' were called in during the day to discuss the extension by America of further credits to the Bank of England. The presence of - the Rt. Hoh. Montagu Norman' (Governor of the Bank g- of England) in Quebec' gave further ’'*• substance to these reports. U.S.A. BANKERS. jLC WILL BACK THE NEW 'GOVERNT * . MEINIT. NEW -YORK, August 25. The ‘New York Times” says: The powerful Wall Street bankers, as an indication of their confidence, in the ability of the new British Coalition Government, have announced that the incoming Government, can dtbain sub';v, "stantial private banking credit in this country 'in twenty-four hours’ notice. BRITISH SECURITIES SLUMP. / ’ ,NE.W YORK, August 24. .The markets here are not seriously affected by the change of the British Government.* The trading in stocks has remained dull, their general trend being slightly lower. British Government per cents (1937) declined 1£- per cent, to 104|. This was a sharp fall, these securities being normally static here. ' THE NEW CABINET. "PROBABLE PERSONNEL. ■

LONDON, August 25

The genera] expectation' is that the new Cabinet will comprise the following:— ,» Mr J. R, MacDonald. Mr P. Snowden. Mr J. H. Thomas, <; lord Sankey. Mr S. Baldwin. Mr .Neville Chamberlain. Sir I. Hoare. " Lord Hailshan , Sir H. Samuel. Lord Reading. Either Sir D. Mac Lead of Lord Lothain. RAILWAYMEN’S REGRET. LONDON, August 25. Mr J. H. Thomas, who is the official head of the Railwayman's Organisation, had a two and a-half hours’ discussion with the National Railwaymen’s Executive. He afterwards issued . a statement as follows:—“Nobody deplores more than T do the break up of the Cabinet; but financial stability is imperative. All, regardless of personal consequences, must conAvtribute their bit- to enable the country to .pull through.” An official of the Railway men’s Executive later declared that the Executive’s opinion had not yet been regis-

, tered, but it was unofficially regretted /• that Mr Thomas was acting in opposilion to the Trades Union Congress, and that he had joined the new Cabinet, -

LIFE OF NEW GOVERNMENT. MAY BE SIX MONTHS. LONDON, August 25. The papers forecast the life of the Government as varying from six weeks to six months. The “News Chronicle”, says: “Pressure is being exercised in high quarters against a general election being held until all danger of the crisis is past. This, it is indented, might carry the National Government on until the next normal budget in the soring of 1932. NEW CABINET FOLLOWING. * LONDON, August 25. The new Cabinet should be able to rely on the support of 269 Conservatives and 55 Liberals. If Mr MacDonald’s followers number eighty, the Government will have a majority of 197.

ORDER-IN-COUNGIL RULE

RETRENCHMENT POLICY. LONDON, August'2s. The British (crisis is Teaching a solution with remarkable rapidity. The names' of the members of the new Cabinet will be submitted to His Majesty on Tuesday. The seals of office will be exchanged on l Wednesday, at the latest. Then the Cabinet will immediately get to work with the drafting of emergency measures, which are to enable the Qovernrtient to issue. Orders-irt-Couttcil. There is no time to prepare legislation couched In the ordinary Parliamentary language, and practically no debate will be permissible in the coming session, opening early in September. It should be clearly realised that the National Government is in no sense a Coalition. Mr Baldwin is insistent on this. The Ministers at the head of the spending Departments arc being deliberately excluded from the Cabinet, which is purely an economic body. It will make arbitrary decisions binding on all Departments. As soon as a programme of retrenchment is decided, the Budget is balanced and British credit abroad is re-established, there will be a dissolution, and an 'appeal to the country on normal lines.

A general election is unlikely tintil the Indian Round-Table Conference rises in November so that Christmas is the probable date.

RUTHLESS CUTS THE OBJECTIVE

LONDON, August 25

The “Daily Mail,” in a leading article, says:—The Government’s success depends on the willing self-sacrificing help of every loyal Briton. Displays of political rancour would be as base as treachery in wartime. Britain never faced a graver financial danger. She must ruthlessly cut down expenses, and build up industries.

FRENCH APPROVAL.

PARIS, August 25.

The Bourse was favourably impressed with the British National Government, and the markets immediately became firmer.

FRENCH POLITICIAN’S VIEWS

PARIS, August 25

AI. Painleve declared: “J. he fundamental role that Britain plays in world finance renders any weakening of her centuries-old credit disquieting to other nations as well as to Britain. He said be welcomed the possibility of closer collaboration with British Parties to solve the problems.

MR FORBES’S COMMENTS.

WELLINGTON, August 25

Discussing the British' political situation; -Mr Forbes said.: “The first thing that strikes one in connection with the development in Great Britain is the patriotism that Mr Baldwin, who is the head of a very strong Opposition Party, Has shown in accepting office, under Mr MacDonald; and Mr MacDonald is to be commended for taking the course he has, which undoubtedly is in the interests of the Empire. It indicates that when the necessities of the country call, these men are prepared to sink personal and party ambition. With such a spirit in evidence, one feels more hopeful of the future concerning affairs in Great Britain. There is no doubt that the Old Country has her difficulties, and that these are becoming greater. We in New Zealand are very closely concerned with the prosperity and well being of Great Britain, because that is the market for our products. If anything goes wrong with our principal, customer, it must .react upon us. The knowledge that her Parliamentarians have set out for the ■stabilisation of the political situation augurs well for action concerning the industrial and commercial problems. The question of imperial preference will -u,ow come (into greater prominence than ever before, and will assuredly receive more serious consideration than has been devoted to this important subject in the past.”

DAILY HERALD’S COMMENT. (Received this day at 9.25 a.m) LONDON, August 25. The “Daily Herald” commenting on news from New York asks where is patriotism in 'allowing the Federal Reserve Banks of New York to dictate as to further credit for the Bank of England : that British unemployment benefits should be reduced. The news will cause a shock and alarm as it amounts to the acceptance of a dictatorship of international finance and the apothesis of the power of finance is the severest

blow to democratic Governments. Labourites will reject any scheme involving new privations for unemployed. Mr MacDonald is walking a path to political suicide. LABOUR ATTITUDE. LONDON, August 25. Mr Tom Kennedy, the Chief Whip with his colleagues in the Government Whip's room, Edwards, Whitley, Paling, Thmtle, Charlton, Ben Smith, Tom. ILndersoii and Hayes are refusing office ! with the National Government. » C. R. Hyse (Conservative) was elm ted unopposed for Guildford. CONSERVATIVE LEADER. ON “GRAVE NATIONAL CRISIS.” LONDON, August: 24. Mr Stanley Baldwin (ConservatU Loader), in a statement, said:— j “The formation of a National Gov- , eminent is a guarantee that those knowing the facts realise the gravity j of the situation, and are resolved on j .immediate* measures to put the conn- j try’s finances in order. W r e are con- j fronting a grave national crisis, which, if not courageously and firmly handled, will he frmight with serious 1 consequences to every man, woman 1 and child throughout the country. But the country has proved its great- 1 ness in times of national emergency, and I have sufficient confidence in the I people to know that this occasion * will not be an exemption. A dissolu- J tion at this stage, followed by a gen* - efal election, would be disastrous. 1 This fact at present dominated the * situation. - The only means by which i * the national emergency can be met is | the close co-operation of all parties, * for which the Conservatives have con- 8 sented for a. 1 limited period, to enter « the National Government, to balance the Budget, and so restore confidence in the national credit. This is not a I question of a permanent coalition No party ha s been called on to sacrifice any of its principles; hut it is everybody’s duty to eschew party differences.” „