Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-26
MCDONALD TAKES
D|CTATOR'S ROLE
Prepares to Cut $500, 600
600 From Expenditures De-
spite Labor'S Opposition.
tcontinued PROM First page.l

Continued From First Page.)
expels him from the membership of the
local party"
Mr.. MacDonald's residence is in the
HAMPSTEAD section Of London, and he
holds his membership In the Labor
party through that branch.
Appeals to Own Party.
But MIR. Macdonald, apparently an
ticipating some sucn move on the eve
of the Labor party meeting scheduled
for Friday, forwarded to all Labor mem
bers of Parliament q personal message
explaining his recent course of action.
THE financial crisis was approaching
rapidly" he wrote 1T had become a
matter OF hours, and we had to act
immediately. The Labor government
strove hard to agree about this issue so
it might continue its work in other
fields, but It failed and had to face the
consequences.
IF our financial stability is en-
dangered and q run is made on our
financial resources, the consequences
would be too terrible. This makes
temporary retrenchment inevitable and
imposes some amount OF common sacrl-
fee"
The premier expressed regret that,
after a lifetime of work in the labor
movement, he and some OF his coll
leagues had to decide In the interests
of the country on a course which might
embarrass the party for the time being.
He appealed TO Labor members to sis-
pend Judgment until Parliament as
sembles and the events Of the past
few days may be seen In panorama.
May Float Large Loan.
II Is understood the ministry is con-
sidering floating q large conversion
loan. as suggested by Snowden some
weeks ago. and is debating asking Par
Iianert for wider authority to effect
administrative economies by orders In
The dole has been running deeply
into debt at the rate of $5,0O0,00O
week, borrowing from the treasury.
While the new government went TO
work, Labor leaders throughout the
country were organizing their opposi-
xion, Today's most important Labor
meeting was q joint session OF the
General Council of the Trades Union
Congress, the national executive Of the
Labor party and the Consultative COM
mittee Of the parliamentary Labor
tomorrow the Miners Federation
.ssncutive meets and there viii be q
session of the Seaman division Of the
Labor party executive to decide the
party status Of Mr.. Macdonald. The
prime minister represents Seaman In
Parliament.
Old Cabinet Withdraws.
MacDonaId,s second Labor government
passed into history today in the pres
ence Of King George.
The King received the retiring minis
fers Of the old regime at Buckingham
Palace and they handed over their seals
Of Office. An hour later the trfparty
members of the new cabinet called on
him and he convened privy council, at
which they we're sworn In.
About 1900 people stood outside the
palace as the reSigning ofticialS came
to surrender their authority. No longer
using ofictal automobiles. they came In
taxicabs or on foot
Having played his constitutional role
IN the nations political drama. the
King prepared to return to his castle at
BaImoral, Scotland, from which he was
summoned Sunday when the. cabinet
split on the question of finances.
Though the cabinet Of 10 ministers
includes Macdonald and Snowden, It
was apparent the weight of almost the
entire Labor party and trade unionism
would be cast solidly against the gov
eminent.
Early Defeat Possible.
on the basis Of the belief that not
more than a dozen Labor members Of
Parliament outside the cabinet mem
bers themselves would support the re-
giIne In the Commons, there was specu-
1ation as to whether 1t could even be
sure of a majority. The vote Of the
combined Conservative and Liberal par
ties would be sufncient to keep the
government In power, but 1t Is felt GER
tain that a number of Liberals win join
with the Laborites in opposition TO a
cut Ia the dole.
Mr.. Macdonald is said TO have no
illusions about his position and to real
lze that, by cutting himself adrift from
his old associates and the bulk OF the
party. he has ended his political career.
Delivering what was believed to be
his swan song, Mr.. Macdonald ex-
planned in a countrywide radiocast
last night the circumstances that led to
the downfall of his Socialist ministry,
and appealed TO the people TO go the
last mile with the government IN bal
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