Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-26
3 the Assoclated Press.


LONDON, August 26s--Following Is
Minister Ramsay Macdonald, broadcast
last night from his home at 10 Downing
street
IT speak tonight under unusual, and
to me. rather sorrowful circumstances.
II have given my life to the building
up Of political party.
II was present at It's birth. I was
its nurse when it emerged from infancy
and had attained adult years.
"At this moment have changed none
of my beliefs and none of my ideals.
see that it Is said that have no Labor
credentials for what I am doing. It is
true, I do not plan to have them, al
though ! am certain that in the inter
ests Of the working classes I ought to
have them.
BE that as It may, have the Gre
dentialS of an even higher authority.
My credentials are those of national
duty, as conceive 1t, ana obey them
irrespective of the consequences.
You will have read in the daily pa
pers during the last few weeks of great
activity in London. For my many
friends who have been In close touch
with things 1t has been time Of very
great anxiety. There have been sensa-
tional stories and many rumors of all
kinds. You have heard the words
crisis and emergency and you viii
know matters of great moment have
arisen in what Is nominally a quiet holi-
day season. Let me tell you briefly
what has happened.
Confidence Impaired.
During the last two weeks the
country has been faced with a finan-
cial emergency. What has been going
on is that people and institutions
abroad who have money in this coun-
try have been Withdrawing it in con-
siderable amounts. They have been
accustomed to deposit big sums in Lon
don for short periods because they had
complete confidence that they could
always rely on getting their money
when they wanted It.
Recently the confidence of leaders
has bten impaired and they have been
withdrawing their money. There have
been various causes for these fears
about the soundnesS of our position.
In the first place, world depression
in trade has hit all countries very
hard, including ourselves. There was
a crisis In Germany. 1t was known
We had q lot OF money in Germany
which temporarily could not be repaid.
But, above all, public opinion abroad
was concerned about our position. They
saw big deficit in prospect. They
said we had been borrowing for cur
rent expenditures. They feared we
were living beyond our means and no
longer exporting enough to pay for our
necessary and very large imports of
food and raw materials. In the alb
sence Of any contrary evidence, they
were inclined to believe our troubles
are not only temporary.
Propaganda Has Evil Effect.
There was great deal of propa-
ganda, which had an evil effect abroad,
even more so than at home. People
who speak in public and use a plat
form, sounds from which are heard all
around the world, should be very care
full when expressing party views that
they are not damaging national in
terests. In sentence, foreigners, who
had been In our financial trust, have
listened to ghost stories in a gloomy
atmosphere and have become rather
nervous.
1T IS not true to suggest that foreign
countries are deliberately trying to
harm us. Nothing could be further
from the truth. They know that the
consequences OF financial troubles In
this country would be serious. not only
for ourselves. but for the whole world.
They have helped US greatly, and they
are anxious and ready to help us more.
But they need to be treasured about our
position.
1T Is no good saying they ought not
70 be anxious. The very important
point Is that they are anxious, and their
anxiety has faced the government with
financial situation which is like an
attack OF appendicitis, and cannot be
trfhed with, but must have immediate
treatment.
There is no danger whatever IL the
treatment Is given, but It must be i'm
mediate It cannot be trified with. It
Is essential that the confidence Of the
world In our credit should be restored.
Otherwise we shall not be able TO MAIN
tain the value of the pound sterling,
and the results Of this should be care
fully considered.
Loss Of Credit Fatal.
First Of all, If there were any coll
lapse in the pound we should be de-
faulting on our obligations TO the rest
Of the world and our credit would be
gone This would be fatal, since this
country. above all others, depends upon
the maintenance Of its credit, having to
buy, as we do, so large a part of our
food and raw materials from abroad.
Then the pound sterling is the great
est medium of world trade, and the
basis of the money of many other coun-
tries. Thus the commerce and well being
not only Of the British nation, but of a
large part Of the civilized world, has
been built and rests upon the conf
dence In the pound sterling, and II that
confidence is destroyed it means dislo-