The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-08-26
WAR ON DOLE
CUT FACED BY
MACDONALD
Labor Reads Premier Out
of Party as Cabinet
Takes Office.
DEFENDS HIS COURSE
Prime Minister Appeals to
Nation for Sacrifice in
Time of Stress.
BY WEBB MILLER
United Press staff Correspondent

LONDON, Aug. 26.-Britain'S new
government of sacrifice" headed
by Prime Minister j. Ramsay Mac
Donald, received the seals of Office
from King George at Buckingham
palace at IL a. m. today as the labor
party prepared to fight the proposed
dole cut.
The new cabinet took the oath at
a meeting of the privy council,
after members of the late iaborite
government had handed over their
seals of office to the king.
The cabinet was to meet imme-
diately and begin the task of eff
fecting economies in national ex-
penditureS sufficient to balance the
budget and restore foreign conf
dence in the pound sterling.
Members of the late labor cabinet
who refused to sanction a reduc-
ton of unemployment benefits pre-
pared strenuous opposition to the
new regime.
Macdonald Is Disowned
Macdonald was diSowned in a
Labor party statement and his right
to represent the party in the new
cabinet challenged.
Macdonald addressed letter to
Labor members of parliament, APP
pealing to them to think over the
situation without prejudice or pas
sion" before deciding upon their
course and to suspend judgment
until parliament meets.
"All this has caused us great
pain. When it is over, the party
will be left untrammeled as to
policy ard program" the prime
minister wrote.
He reiterated his statement made
on the radio Tuesday night that he
had acted in the country's interest
and defended the proposed 10 per
cent reduction in the dole.
Appeals for Sacrifice
MacDonald's radio address APP
pealed to the nation for sac es
IN time of emergency. Holdin ue
to the ideals which have guide i'm
through a remarkable career, ac-
Donald replied to charges tina. he
did not hold Labor credentials to
head national government, in the
following words:
My credentials are those of ma
tlonal duty as I see it. 1 will obey
them irrespective of consequences.
Macdonald refuted charges that
the Labor governments fall was
the result of bankers conspiracy.
1 give emphatic assurance that the
charge is not true" he said.
He confirmed the governments
proposal to reduce unemployment
benefits 10 per cent, but added.
"children's allowances will not be
touched at ALL" He pointed out that
the cost of living had decreased 10
per cent since 1921.
The prime minister ascribed the
causes of the financial emergency
to worldwide depression, the Ger
man crisis, foreign anxiety regard
ing the British budgetary position.
and propaganda.
Clears Foreign Countries
"It is not true to suggest that
foreign countries have been trying
to harm us" he said. Nothing
could be farther from the truth
they helped us greatly and are
ready to help us more it is es-
Sential that the confidence of the
world in our credit should be re-
stored, otherwise we will be unable
to maintain the value of the pound
sterling.
action, swift, decisive, and eff
fective, is asked for; this we pro-
pose to give"
Macdonald referred to the pass
ing of the Labor government which
he had guided through turbulent
times.
1.-The occasion is unusual and
rather sorrowful," he said. 81 have
given my life to building up a DO
itical party. I was present at it's
birth. was its nurse when it
emerged from infancy and attained
adult years.
This moment has changed none
OF my belief, none Of my ideals"
Macdonald said the new admin.
istration was not coalition, but a