Indianapolis Times, Volume 43, Number 105, Indianapolis, Marion County, 10 September 1931 — Page 4
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u. $. RELATIONS WITH ENGLAND AREJENACED Labor Party Leaders Lay Blame for Downfall on America. By WILLIAM PHILIP SIMMS Scrinn* Howard Foreign Editor WASHINGTON, Sept. 10. Did the United States ‘‘put a pistol to the head” of Great Britain and demand a slash in the dole as the price of saving her from threatened financial collapse? Already leaders of the Labor party are bitterly charging, in effect, that the downfall of their government was virtually dictated in the United States. And unless the British masses can be convinced that the charge is without foundation serious harm will be done Anglo-American relations. Britain’s emergency budget is almost certain to become historic. It already has split the Labor party, brought about the resignation of the government and the repudiation of the prime minister and made necessary a national election. Bitter Election Looms This election easily may develop into the bitterest England has witnessed in generations. The issues may set class against class, capital against labor, rich against the poor, with the name of America as the world’s financial colossus, constantly on the lips of campaigners. The British crisis came into the open six weeks ago when the parliamentary committee reported that the next budget faced a $600,000,000 deficit. This deficit, it further was stated, seemed permanent, rather than temporary, and accordingly a permanent reduction would have to be made in the government’s expenses or bankruptcy was inevitable. Cabinet Collapses It was like a bombshell exploding at a picnic. The pound sterling slipped dangerously. Foreign bankers hastily withdrew their credits The small dab of gold left in the Bank of England dwindled alarmingly. Something had to be done, and at once, to stave off a crash. Premier MacDonald, on vacation in Scotland, made a night dash for his office in Downing street and called his cabinet together. Just what happened at that meeting is still only partly known. But one certainty is that the cabinet split over the way to balance the budget and resigned. Another certainty is that the principal cause of the split was the proposal to reduce unemployment insurance, the so-called dole, by 10 per cent. Charge Hits U. S. Through the Daily Herald, organ of the Laborites, labor leaders charge that in order to get the necessary $400,000,000 credits from the United States and France, MacDonald allowed the French and Americans to make the credits conditional upon dole reduction. Former Minister of Agriculture Addison was quoted as charging that a 10 per cent reduction in the dole was imposed and that “the pistol that had been put to our heads was .... in the hands of the controllers of the money market.” Premier MacDonald has denied these charges emphatically. They have been denied in the United States. But the chances are that, true or false, the last has not been heard of them.
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THE INDTANATOLTS TIMES
.SEPT. 10,1131
