Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-26
MCDONALD TAKES
| D|CTATOR'S ROLE
IN BUDGET CRISIS
Prepares to Cut $500, O00,-
600 From Expenditures De-
spite Labor's Opposition.
MOVE TO ExPEL PREMIER
/ FROM PARTY UNDER WAY
Doubt Expressed as to Whether
New Cabinet Can Survive in
Parliament.
BY the Associated press.

BY the Associated Press.
LONDON, August 26.-Ramsay Mac
Donald became. in manner of speak
ing, British dictator today, as he pre-
sided over the first cabinet meeting of
the new non-partisan government,
which is preparing to cut 100000, 900
from the budget expenditures.
Charged by the King with forming
the emergency government. the prime
minister holds his post of power as an
Individual but net as representative OF
organized labor. which is now marshall
ing solid opposition to its former leader
The program which he laid out for
his ministers today was net much dif-
ferent from that which he and Chan
cellor Philip Snowden tried to force
through with the Labor government.
The platform of the new ministry Is
virtually the same as that on which the
Labor government split and fell.
Based on Cutting Outlay.
It is proposed that the greater part
of the money needed TO balance the
budget be made available by reducing
expenses instead Of by increasing taxes.
Probably the largest economy will be
made by cutting the weekly unemploy-
ment dole by 10 per cent.
This means jobless man and his
wife. who now receive about $6!25 a
week, win get only about $5.65. The al
lowance Of shillings week tabout 90
centst for each child OF such a couple
is not to be reduced.
The workers contribution to the Dole
fund would be increased to 25 cents
week instead of Is cents, as at present.
Another substantial economy proposed
is reduction in the pay Of government
employees Cabinet ministers VINO gel
SIS, 900 year would lose 20 per cent
of that stipend. Other civil service
salaries would be cut on sliding scale
from 20 per cent down. The lower
grades Of civil servants would not be
affected, but even they would be SUBJ
ject to q cut In the bonus they now
receive.
Even members of the House Of Com
mons may have to take q Fer cent
cut in their 50 600 salaries.
School teachers and police would lose
about 1915 per cent of their pay. Sol
diers and sailors would take smaller
reduction.
Savings on education are expected to
reach about S57, 500 900: in the fighting
services $45, O0O. 600 The health Serv-
ices would be cut by $3.50 900 and
agriculture by Sc $50. 600. About $40,-
900 900 would be taken from the road
fund and projects for improvements and
maintenance would be curtailed.
Wealthy May Be Hit.
After economies have been effected.
there remains new revenue to be found.
and it is generally believed that. as a
counter balance to sacrifices on the
part of the voorhees, and State en-
ployes. the Weather classes viii have
their income tax levy increased.
Among proposals is tax on all Sc
curities bearing fixed interest, such as
debentures and preference shares so
that the RENTER" class would make an
equal sacrifice.
New luxury taxes also are expected,
with a possible increase of taxes on
spirits, beer and tobacco, although some
authorities maintain the yield from
these sources Is approaching the maxi
mum obtainable.
The national governments task is to
put through Parliament two main bills,
one of them an economy bill and the
other a finance bill. or second budget Of
the year. The plan is to force these
measures through Commons by means
CT the "guillotine" rule-providing for
the setting of dates for discussion of
different stages of a measure, for APP
plying the closure and for taking a
division-in the face of the bitterest
opposition the Labor ranks can or
ganize.
Seek to Expell Premier.
A resolution expelling Mr. Macdonald
from the Hampstead Labor party was
adopted by the Executive Committee
today for submission to the general
council of the organization.
The resolution read as follows:
In view of Mr.. MacDonald's dis
loyalty to the Labor party and his own
open houting of party discipline IN
Joining the anti-Socialist government
formed for the purpose of forcing
through parliament anti-working class
legislation, the Hampstead Labor party