CAUSES OF CRISIS

Rotorua Morning Post, Volume 1, Issue 16, 10 September 1931, Page 3

CAUSES OF CRISIS

Press Association-

-"Post" Special Serrice.

prime minister's analysis GREAT ECONOMY NECESSARY

— Coprrlsht.

By Telephone—

RUGBY, Tuesday. When Parliament reassembled in the special session, summoned to give legislative effect to the scheme prepared in the last two weeks by the National Government for the restoring of the equilibrium "of national finances by large economies in national expenditure and additional taxation, Mr. MacDonald faced a packed House as head of the National Administration with the leaders of the Liberals and Conservatives as Cabinet colleagues, and with his former followers, save for a dozen or so, ranged in opposition. The Prime Minister, moving a resolution that the House go into Committee of Ways and Means on Thursday, when Mr. Philip Snowden, Chancellor of the Exchequer, would introduce a supplementary Budget, said the crisis was one of those extraordinary incidents in politics which put democratic Government to the test. There were, he said, niany underlying causes of the country's difficultties, which must be thoroughly examined later. The banking system required examination. Britain had burdened itself by its honesty and generosfty in paying debts and helping other countries. The Government had to accept its responsibility for dealing with the crisis. It had to face the realities and act promptly and vigorously. London was the great international banking centre and found itself undefended from the demands made upon it. The specific and only problem was to restore the waning confidence.