The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 28, 1931. FACING THE FACTS.

Hokitika Guardian, 28 August 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, AUGUST 28, 1931. FACING THE FACTS.

It is clear from the cable news that Mr Itamsay MacDonald and his colleagues of the Labour party entering the National Government at Home, are making great political sacrifices to do so. They are estranging themselves from the Labour Unions, the leaders of which are already reviling their late political leaders. It is true that the Ministers can give good reason for their latest action, but us usual the Labour Union people will not listen to reason. In the ordinary course they should credit Messrs MacDonald, Snowden and Thomas, with a cleai knowledge of the national finances a’.'d the standing of Britain at this time of crisis. But the malcontents give no heed to what that position may be. Tiny clamour for the upkeep of social services and wages, blind to the fact that the source whence those emoluments were coming, is now drying up. Mr MacDonald has well said that ms action in taking the step he has is in the interests of the wage earner. Had the National Government not been established and the financial fortunes of Britain had crashed, the wage earner would be the worse off of the whole community. The pound would have lost its Sterling value, and the working; In an would be the worst penalised by that deterioration. Now. as is so often the case, the Labour exponents blame the banks for the trouble. But it should lie known to that the banks trade on the peoples’ money. If there is a substantial sum of money

in a bank on deposit, it is not the property of the bank. The institution i has only the custody of the amount, for which it pays interest to the depositors. But that money along with its inverted capital Horn individuals, the bank uses in credits for the good of the business or its clients. If there is a demand for more credit than is justified, the banks conserve funds as far as possible. The British Government was given liberal credit, using not the banks, but the peoples’ money, but when the demand for this credit grew to excessive limits, the Government had to be told its credit with the banks were exhausting. That meant on the face of it, the public service wages and the benefits under social services could not be continued. The country had readied a. crisis, and realising the position, Mr Ramsay MacDonald and his colleagues had to face the facts. It is to the credit of the most influential of the party that they saw eye to eye in this grave national crisis, and were as resolute as their Prime Minister to do the right thing irL the right way. The "leaders of the Opposition, were summoned, and the situation disclosed, The King was advised of the position, and heads were put together .in the effort to lead the Kingdom out of its complex difficulties. It was the right thing to do, and is being applauded by all who will review the position without prejudice. The world bankers are ready to help Great Britain with other peoples’ money which is surely the best sign of all that the National Ministry is the proper way to set about bringing the right measure of financial credit again.