Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-26
Text of cDonald's Appeal
Prime Minister Declares British Situation Is Financial
and Promises That New Cabinet viii Act Swiftly,
Decisiyely and Effectively to Restore Confidence.

| cation Of world trade, from which every
one, and most Of all the working people
Of this country, viii suffer.
Further, II the value Of the pound
were to fall suddenly and cataStro-
phically, not by plan, as some people
suggest. but without plan. by the force
Of economic crisis, without control
crises would rise much faster thar
wages, and incomes could not be adj
| justed, even II adjustment were possible
Conditions similar to those in Ger
many when some millions OF marks
were given in exchange for a pound
sterling would arise by the widening
| of vicious circle. The people who
with large, with the smallest incomes
The questions of international finance
are very complicated. A great many
| people talk about them with great as
surance. but for myself am no au-
thortty on them.
Swift Action Necessary.
"But have consulted with every
shade of opinion and given the stu
alton the most careful thought of which
I am capable. paying attention primar-
| lily to actual pressing facts. Things are
happening which If allowed to go on
will speedily produce a crisis. Under
these circumstances, it is no use discuss
| ing the theories of banking in the Mac
MILAN reports, who Is to blame, and
so on.
This threatening cloud has to be
| dispelled, and dispelled Immediately
Action, swift, decisive and effective, is
asked for, and that we propose to give
when the danger has been removed and
we can have an assiZe trial aid a ver-
faf kf1f a
determined that the assize trial shall
not be a coroner'S inquest. Everyone
from whom we have borrowed or who
has placed deposits in our keeping must
be assured that the budget will be bal
anced, and that assurance has to be
given at once, not only as a declaration
of intention. but as a program in the
essential detail.
There was no disagreement in the
Labor cabinet that economies of a
fairly drastic nature would have to be
made. Meme of US want economies.
do not want economies myself, but If
cannot afford an expenditure I have
got to make them. We certainly do
not want economies which mean the
suspension Of programs of work. which
we believe are for the national good, or
reduction which we also believe is not
in the long run sound. But II by reason
Of shrinkage in the national income,
these good works mean such borrow
| ing as viii damage our credits, well, we
must cut our coats according to the
cloth. We must try, of course, to get
more cloth, but while 1t Is limited, our
garments VIII have to respond to its
limitation.
VIII Entail Sacrifice.
at undoubtedly will entail sacri-
flee, but I am perfectly certain that
in order to put our financial house in
order there is no person In the whole
community who will fail to give what
response he can, according to his
means, providing always he has the
assurance everybody else Il doing the
same.
Apparently the matter which
| troubles most Of the people with whom
I have been associated and whose in
| terest is dear to me, and whose whole
confidence Is equally dear, is the pro-
posaI to cut unemployment Dement'S.
May I make an observation or two
in order that the mass OF our people
may consider 1t with some sense Of
proportion and equity in their minds?
Unemployment benefit is not ltv-
| ing wage. Il was never meant to be
! that But I, like every one of my col
| leagues, have been willing rather 70
| stretch than to curtail those benefits.
| The proposal now is that as part OF
| this urgently required national saving
| these benefits should be reduced by 10
| per cent, but that childrer's allowances
should not be touched at all. That
| looks pretty big.
| to me remember this: That during the
| last two years the cost OF living has
reduced by liz per cent, so that Il
| the unemployment benefits had beer
subject to this considerations con-
sideration to which hundreds OF thou
sands of workers are Subjected con.
sideration which not a few trade unions
have deliberately arranged in the IN.
| terests of their own people-had that
been so, the unemployment benefit, au-
| tornatically and without changing q
| hairs breadth Of its value in main
tanning the standards Of life, could al
ready have been reduced. without ever
q clamor or a fight, by 11I2 per cent
/ The proposal to reduce these benefits
| therefore, leaves the recipients one and
one-half per cent better OF than they
| were in 1929.
| Matter Of Individual Pride.
THAT is one thing I hope you viii
all consider. And there Is another
! thing, this time something relating to
| individual pride and spirit. How car
any government go to the country anc
appeal for general economy and Sacri-
| fice, and say to every person whose
| income can be touched we want you
to give us heartily something you now
| possess, in the interests of your nation.
And then go on to add but those for
/ whose benefit the state is supplying