The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-08-24
LABOR PARTY
RULE ENDS IN
GREAT BRITAIN
Macdonald Will Remain as
Head of Coalition
Government.
SERIOUS CRISIS FACED
Nation Races Against Time
to Assure Credit and
Avert Ruin.
SERIOUS CRISIS FACED
BY WEBB MILLER
United Press staff COrresnondent

LONDON, Aug. 24.-The labor
government resigned today, but j.
Ramsay Macdonald, it's leader, re-
manned as premier to guide Great
Britain through a desperate finan-
cial crisis at the head of a ma
tional, or coalition, government.
Macdonald called on the king and
informed him of the state of af-
fairs. The nations second expert
ment with Socialist government,
after little more than two years
of depression and financial weak
ness, ended in the governments in
ability to solve the problem I'M
aided.
The king commissioned MacDon-
aid to form a new ministry, includ-
ing Labor, Conservative and Lib
eral elements. AS in the days of the
war, when the parties joined hands
to present united front against
the enemy, the new government
will so to work at once to bolster
Britain'S faltering credit, impose
rigid national economies and raise
a $600,000,000 budget deficit.
Macdonald Clings to Last
The governments resignation
came late this afternoon, after the
anxiety of the last week has been
climaxed by a day of momentous
decisions and many rumors. 1t be-
came certain that the government
would resign early in the day, but
Macdonald chung to Office until he
was certain of his course.
He called at Buckingham palace
at Alb p. m, Q0:13 a. m, Indian
apolis time) and left at Abs p m.
after presenting his resignation and
receiving his commission.
An official statement issued at Nc.
10 Downing street, the premier'S
residence, at p. m. said;
"The prime minister this after
noon rendered to the king the res
ignation of the ministry, which was
accepted by his majesty, who in
trusted Mr.. Ramsay Macdonald
with the task of forming a national
government on a comprehensive
basis to meet the present financial
emergency.
Crowd Is Sullen
Ramsay Macdonald accepted the
commission and now is in confer
ence with Stanley Baldwin and Sir
Herbert Samuel, who are co-operat-
ing with him in a constitution of
such administration"
No immediate dissolution of par
lament was anticipated.
Macdonald delayed carrying for
NAL notice of the cabinets reSigna-
ton to the king until ready to pre-
sent his coalition government list.
All parties were anxious to avoid a
gap between the old and new gov
ernments.
Huge crowds in Whitehall awaited
the official announcement. Many
were sullen. Some booed certain de-
parting members of the Labor cab
met. Shouts of traitor" greeted
Graham and Clynes.
Credit Nearly Exhausted
Financial circles reported today
that Britain had opened negotia-
tions for further credit in race
against time to preserve internal
and foreign confidence in the pound
sterling.
1t was reported that the Bank of
England's credit of 100000 pounds
sterling with the federal reserve
bank and the bank of France had
been nearly exhausted in main
tanning the parity of sterling during
the last ten days.
A sterling slump automatically
would renew the drain on Englands
gold reserves. A weakening of the
sterling position would affect seri-
ouSly London's position as a~world
banking and financial center.