Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-31
MCDONALD SPEEDS
ACTION IN CRISIS
"Going to See 1t Through
Despite Demands for
Resignation.

AONOON, august OF NALL
lister Ramsay Macdonald few down
from Lossiemouth today to take up the
task of his new national government
where he left of Friday.
Reiterating his pledge to steer the
emergency cabinet through the finan-
cial crisis, he made it clear that he has
no intention of submitting to the de-
mand of his constituents in Seaham
Harbor that he resign from the House
of Commons.
It am going to see it through" he
said. There is no time for delay and
do not intend that any time should
be wasted"
His pilot brought him from Lossle-
mouth to the Hendon Airdome in 10
minutes less than the usual time for
the run and the prime minister went
Immediately to his ONCE.
Get Down to Business.
The big Ten" as the newspapers
are beginning to call the cabinet, got
down to the business Of its $600,000,00o
economy program soon afterward.
1t received the reports of two COM
mittees, one Of which outlined economies
and the other a schedule OF pending
business in Parliament Its threefold
task includes reduction Of budget ex-
penditures, increase in budget revenue
lishment Of conditions to insure a
balanced budget for the next fiscal year
The drastic economies contemplated
cannot contribute much in the way OF
relief this year, and 1t is believed that
an immediate increase in taxation is
necessary to avoid a deficit next March
in the budget which Chancellor Snow
den introduced last April. This indl-
Gates that the first measure which
Parliament will be asked to consider at
its special session beginning September
s will be a supplementary budget with
new taxation to be effective lmme-
diately
Speculation has ranged over wide
field of possible new levies. One view
is that most of the main sources OF tax
revenue will be drawn upon more
heavily-the income tax, the super tax
the death duties, and the taxes on beer
and wine, tobacco, gasoline and enter
tainment.
Labor Leader Resigns.
It also has been suggested that the
so-called McKenna duties will be boost
ed above the present 1914 per cert
ported automobiles, films, musical m
str,lments, clocks and watches.
While he was on the way from Scot
land, ]. H. Jim" Thomas, one OF the
few Labor cabinet ministers supporting
the new government, broke with the
National Union of Railwaymen after
q lifetime association.
The union demanded his resignation
from the national cabinet and Mr..
Thomas asserting that such an action
would brand him as coward and a
cad, resigned from the leadership OF
the union instead.
In his formal letter Of resignation, ne
described the step as the most painful
task of his life and recalled that stree
he was IL years old and an engine
cleaner in the railway yards his record
was one of unbroken service to the
union.
He was almost in tears as he an
nounced his resignation at his ONCE.
1t is doubted whether one session OF
the cabinet will be enough Tor tee Jop
and there may be several additional
meetings during the week.
Mr.. Macdonald talked with the press
In Lossiemouth yesterday in an optl-
mistic strain. He said he had received
many letters from unemployed Socialists
and that 80 per cent OF them realized
the nations need and expressed their
willingness to share any sacr1nces that
would pull it through.
TT isn't the Socialists who stand In
our path" he said, 1T Is a section OF
the Trade Unionists which is opposing
us They do not realize the moral
force of our appeal to the country and
they do not realize that unless some
thing is done the poor will be In dire
need"
Opposition Is Scored.
Newspapers favorable to the govern
ment corroborated Mr.. Macdonald S
determination to carry his measures
through and the Mail said that II
necessary it would be done by orders
in council as far as such powers exist,
a procedure which would not require
immediate sanction by Parliament.
The Sunday Observer, headed Good
bye, Mac" said that Seaman Harbor,
his own constituency, which called on
him to resign his seat in Parliament,
might reject him but Great Britain
as whole would not
His own part of the island ought
to be more proud Of Mr. Ramsay Mac
Donald than of any other Scotsman
alive" the paper said, and, although
he probably will take long rest after
the dissolution, some Scottish constitu-
ency ought to elect him without con-
test or stipulation. His exclusion from
Parliament is unthinkable and his re-
turn is assured one way or another.
England will see to that If Scotland
fails
The Daily Herald said an important
assurance company modified foreign
investments totaling about $500, 100000
last week and offered them to the Bank
of England to be used in stabilizing
the pound sterling. This move played
a decisive role in speeding up the $4oo,-