Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-15
Chancellor SnOwden
Throws q BOmbshell
BY A. @. GARDINER.

LONDON, February l4.-Philip Snow
d MS bombshell, which he exploded in
the House Of Commons on Wednesday
has shaken the whole country and
thrown all the political parties into
eommotion.
The courage of his performance was
magnificent for in making the speech
the chancellor of the exehequer risked
signing his own political death warrant
with the Labor party. But this con-
sideration does not weigh with the iron
chancellor, whose passionate devotion
to the strictest financial code Is out
ragged by the alarming drift of the eoun-
trys finances along the path which has
brought Australia to her present des-
perate plight.
Naturally. the passage in his speech
which Overshadows all the rest is that
relating to the alarming insolvency of
the unemployment insurance fund and
his appeal to the commission now sitting
to present recommendations which win
rescue the scheme from disaster The
urgency Of this question is illustrated
by the fact that the government. is about
TO ask Parliament for an additional
500 100000 to tide the fund over the
coming weeks. Already the BORROWINGS
have plotted out the operation of the
SINKING fund and another year on the
present scale of borrowings will raise
the funds overdraft to $500, O0o, 900.
Inc general impression Of the speech
is that Chancellor Snowden eontem-
plates, If not reduction of the
unemployment benefit at least such
. drastic revision of the admin
istration Of the fund and such reStric-
lions upon the notorious abuses of the
cole as VIII amount TO q substantial re-
duction OF the actual benefit. Further,
Labor reads into the speech q hint to
employers Of the country 70 reduce
wages as y means of restoring export
trade.
Mr.. Snowden's indictment of the in
Surance administration was welcomed bv
the opposition, but the Labor party was
lnfurlated and was not placated BY the
ehancellors further threat to exact
more sacrifices from the rich. There is
q universal demand in the party for an
explanation of what he means and it Is
understood that special meeting has
eeen called for next Tuesday to put him
to question.
Meanwhile, attacks are raining IN
him from the extremists, and in the
House on Thursday Sir Oswald Mosley
declared Mr.. Snowden's idea "of putting
the nation to bed on q starvation diet
is the policy of an old woman in
fright" Not only the Left wing of his
party Is In revolt against the chancellor.
Inc trade union element is modified
against any radical interference with
the. unemployment insurance scheme.
and II the battle is fought to a finish
the Labor party will be split in two
with probably a large majority hostile
to Mr.. Snowden. The cabinet runs the
risk OF being wrecked on the issue, and
all depends on how far the chancellor
can be brought to heel
N* "
Mr.. Snowdeus assailants argue that
his attack on the insurance system is
an attack on the standard of living of
the poor and that his warning that q
halt must be called in the expenditure
on social services until the country Is
better able to meet that expenditure
Is equivalent to return to the Dark
Ages.
But, whatever the upshot of the crisis
in the Labor party, the financial prob |
lem remains, Admittedly the utmost
possible savings on insurance will be
utterly inadequate to meet the ener-
gency. New taxation seems inevitable,
and the question of reducing the inter-
est on the internal debt is much can
FoSSSu' rIdHClS w. f1lrSC, n Liberal
economist, in a much-discussed speech
on Thursday, said that If the British
debt to America were being repaid on
the basis Of the purchasing power of
the pound sterling at the time the loan
was made. Great Britain would be pay
ing America today not $3.50, 900 900 |
annually, but sR0,QQ0.oOO, The New
Statesmen urges tAes government to |
save q hundred million on ornaments |
as . gesture to the Disarmament Con-
ference.
Meanwhile, Chancellor Sn0Wdens op-
position TO the Liberal party acheme to
raise loan Of billion dollars for en-