BRITISH CRISIS

Hokitika Guardian, 31 August 1931, Page 5

BRITISH CRISIS

NEW GOVERNMENT. ONLY 50 MAJORITY. (United Prose Association—By Electric —OopyrigT'.i LONDON, August 2&. The outcome of to-day’s meetings suggests that the Government will have a majority of fifty. Earlier reports that Air AlacDonald would enjoy a considerable Labour have not been fulfilled. (i( [Phe Premier’s son, and Air G. Gillet, together with the four members of the Cabinet, are likely to be cue only Labour supporters of the Government. Three Liberals, and six other Independents will bring the National Ministry’s strength to 331, as against Labour’s 272.

AY AGES CUTS. FOR. TEACHERS AND POLICE. LONDON, August 29. As an indication of the speed with which the Cabinet are acting, Sir H. Samuef met the Police Council and explained the proposals for reductions of the police wages. A decision was deferred, but it is obvious that the proposals will be resisted by the police. Similarly, a National Council of the Teachers Has been convened to consider what actions the teachers shall take. CONSERVATIVE PAPER.

ON WEAKENING OF STERLING

LONDON, August 29

The “Morning PovSt’s” City Editor states that to-day ther e was a. weakening of sterling exchange on British funds and other securities. He attributes this partly to th e necessity for a second budget within the year, with the certainty of additional taxation, and partly to what he terms “tire virulent Labour manifesto.” He says : “While the city is not sorry that the • Opposition has shown its hand, and has so disclosed the weakness of their case, these things are not easily understood abroad. “He expresses the opinion that until Parliament meets and a full financial statement is issued, the markets are bound to reflect the nervous uncertainty. STOCK EXCHANGE NERVOUS. LONDON, August 29. Although the Stock Exchange is nervous, the actual amount of selling out has Hot been heavy; •The hulk of the marking down has been preentitionary, It may be predicted that, if the Government proposals arc well received, there will be a considerable revival in all gilt edged securities and sound industrial stocks.-

An extraordinary example of the sensitivity of the markets to the suggestion for a tariff has occurred at Liverpool, where industrial shares were affected several points on a mere rumour that Mr Snowden was resigning from the Government. -