Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-08

Continued From First Page
of the national finances calls for impo-
sition of additional taxation and for
| effective economy in the public expen-
diture.
Kings Message Customary.
Such message from the monarch Is
, a necessary formality under the consti-
! tutional theory that all taxes are levied
at the Kings command.
The Labor members burst into APP
plause as Arthur Henderson, who has
replaced Mr., Macdonald as the Labor
leader, arose and asked the prime min
ister for statement of the business
before the House.
Mr.. Macdonald answered that to-
night a vote of confidence would be
asked. for tomorrow a resolution would
be proposed controlling the length OF
debate On Thursday he said MI
Snowden would propose his supplement
tary budget ana Friday would be de-
voted to second reading OF the econo-
! mics bill.
Clash Opens Debate.
{ Mr.. Henderson protested that such
rush at a time of crisis was very
bad beginning"
There were loud cheers from both
sides as this first clash between Mr.:
Henderson and his old Labor CHIEF
| arose.
Mr.. Macdonald retorted, II am glad
the gentleman admits that there is
The Laborites suffered their first re-
verse in trying to block the govern
ment's program, for the speaker ruled
that the House was gathered IN excep-
tional circumstances and could not acV
according to precedent. :.
why, why?' the Laborites demanded.
Because there are no presidents,
Then Mr.. Macdonald launched his
formal declaration for the government
and statement Of the national situa-
ton.
Outlines Situation.
ION August 8 a statement reached
me that the Bank of England, because
of an outflow of deposits and danger to
the gold reserve, was considering the
possibility of serious situation having
to be met" Mr.. Macdonald said.
BY the third week of August fresh
credits that had been obtained were
practically exhausted and the bank was
down again on gold.
The responsibility We had to face
was like typhoon approaching, ana
unless We could avert it, 1t would pass
over. leaving widely strewn wreckage
behind.
From day to day reports, every one
gloomier than the other, continued TO
come in.
Prompt Action Necessary.
"The government had to act promptly
and vigorously, not in relation to party
machines" said the prime minister,
glowering at Labor ranks opposite him,
but with the promptest possible &C
ton.
Our trade balance is not favorable
and we must be careful lest We be put
i'll the position of paying for our i'm
ports from capital or by printed paper,
Mr.. Macdonald said.
Moreover, the May Committee econ
cmy report became a great interna-
tional document. These things caused
the present crisis"
Premier's Pay to Be Cut.
Mr.. MacDonalds own salary will be
cut $4,000 a year under the economy
program, he said, and he urged there
be no criticism in the campaign OF
rumors against banks and financial
leaders "of the magnificent helpful
ness and good will shown us by the
American banks"
Far-reaching negotiations concerning
reparations and other international
problems must begin soon, he said land
the very best of good will must exist
between America, France and our
selves"
Mr.. Henderson began speaking when
| the prime minister had concluded. He
asserted the present government was
not a national government and said he
and his associates would oppose it as
| long As it lasted. He is proud. he said,
that he has been a leader of the oppo-
sition tn reduction of the dole