Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-16
Premier Flies to London
For Budget Balancing
BY A. G. oARDNER.

LONDON, August Is. - The sudden
decision Of Premier Ramsay MaeDon-
aid. after his visit with Secretary az
State Henry l.. Stinson in the High
lands, to cancel his holiday and return
by airplAne to London created q stir
In the city, where the fact was under
stood 70 reflect the gravity Of the finan-
cial situation.
The publication Of the Economy
Commuters report profoundly dis
turbed public confidence, but MacDon-
AIDS decision to take immediate action
Was mainly Influenced by disgusting
symptoms abroad that the prestige Of
sterling was in danger. The symptoms
were aggravated by the seriousness Of
the committees disclosures, and Mac
credit was involved, determined on an
instant gesture to restore public con-
fidence and check the foreign ten
denotes.
The gesture took form after tina
prenlier's prolonged consultations with
Ph1lip Snowden, chancellor Of the ex-
chequer and bankers of issue and in
spireu the statement OF the govern
ments determination to balance the
budget no matter what steps were
necessary to achieve that end.
committee Of the cabinet irnme-
diately set to work on the basis OF the
economy report to devise methods of
filling up the estimated gap Of half 4
billion dollars In the budget. The un-
expected return of Stanley Baldwin
from France enabled Macdonald to
acquaint him and Sir Austen Chamber
lain with his views, and it Is expected
that in the course of a few days he
VIII invite the leaders of the Ccnserva-
tive and Liberal parties to a Joint con-
sultatlon to consider government pro-
posals with q view to agreement in
the HOUSE of Commons for the neces-
sary legislation. This is calculated to
have far-reaching repercussions on the
political situation II not a bid for A
national government II is a clear indi-
cation that Macdonald realizes the
LABOR party alone is an inefficient in
strument with which TO meet the emer-
gency.
There are only two methods of ball
anclng the budget-by drastic econo-
mics In social services and by new tax
alton. Labor Is always enthusiastic
over the latter and always hostile to
the former, but both are inevitable.
Macdonald Is aware that he can only
carry the economy part Of the program
with the help Of the Conservatives Ia
the face Of passionate opposition from
ms own LEFT wing and the disapproval
OF moderate Labor.
Critical meetings Of both the Trade
Union Congress and the Socialist PARTY
are imminent and fierce Opposition d
anticipated. Macdonald viii face the
music in each case and may possibly
carry the support of the trade unfonista
on plea not to embarrass the govern
ment in q national crisis. But what
ever the attitude of the conferences
this writer has been assured that the
premier Is resolved to achieve his main
purpose OF balancing the budget
disruption in his own party is not
the only difficulty before Macdonald.
baldw1n has rather cold shouldered the
Idea OF a National government and his
supporters In the press show no en-
snuslasm Tor . joint consultation. which
would involve the opposition party with
tqe government In responsibility for the
measure proposed Baldwin & not likely
to refuse q consultation, but it Is highly
questionable whether the governrn@rt's
proposals In regard to economies VIII
De accepted as adequate.
-
Macdonald. between the dew and thu
deep sea, demands more taxation az
the rich from behind and more eco-
Monies from the front. The former
demand Is not easy Of fai6nment. Tor
revenue returns make clear that direct
taxation has reached the Eaturatlofi
point and the melancholy records cf
company meetings indicate that i1ext
years revenue win be worse than this. !
The only productive taxation avail
able Is taxation Of consumption and
this Is as unpopular with labcr as are
economies on social insurance. In short.
Whatever proposals are made are certain
70 be resented and the temptation to
the Conservatives to stand alcof ard
leave the government and the Liberals
to bsar the odium Is inteiliaIble II not
disinterested. The Effect Of the Mac
Donald gesture on the public mind has
been bFacing. though how hn viii impie-
ment his hercie resolution g beyond
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