MacDonald, who on Monday night interrupted his holiday at Lossiemouth to visit London to discuss hhis Cabinet colleagues the; neial situation and other ques-ne, was able to return to Scot-this evening in company with) this daughter. Adverse weather prevented him from making the) Journey by air, as had been intend-led, and he left by night express.
During the day the Premier) Jagain devoted his attention to the budgetary position. He presided this morning at She resumed disleussions of the special suf committee of the Cabinet, which is considering the economies which faust be effected to secure a balans-jet budget, Tt may be taken for granted that although the Government, will Jaccept full and sole responsibility for the measures adopted in pursuance of their determination to produce a balanced budget,—those measures will have the support ment of both Opposition ties.
The chief items of national expenditure were examined anew to-hay by the Cabinet committee, which, it is reported, has drafted in broad outline certain proposals which will be examined in detail by the Treasury. It is not supposed that these proposals, arise] wholly, of even mainly, from the recommendations in the recent re-Inert of the Economy Commission. Tf those recommendations were adopted in. their entirety they would involve legislation that might well occupy the time of Parlianient for two session.
'The Prime Minister will return to London to attend the next meeting of the Cabinet committee on Monday afternoon, when a mo precise examination of to-day' proposals will be undertaken. farther meeting will be held _on Tuesday and a full Cabinet has been summoned for Wednesday. immediate sions, and ie"Ts fecalled that the tation For the "adjournment of the House of Commons' provided that if it; ap, eared to the Speaker: that public interest demanded a reassembly fe tore. October he might fix the into for" an' earlier meeting.
Avg. 14 been convoked for Angus: 9 te A special Cabinet, meeting has
consider the Cabinet Economy Com:
"I am very much happier about, the. situation?" said the Premier, Br. Ramsay MacDonaldy_ when. in: terviewed by Reuter on his arrival at. Lossiemouth, 'The Prime Minister, who appear to be in good spirits added "The Country' most not listen to. panie-Stricken "talk. "There is\ nothing rong with the country. There are of course special difficulties which ave to be overcome and this means there will "have to be reduced na-expenditure, but the roduetions will fell on all classes and not Aug. 15.
Members of the economy, committee, on holiday in different parts of the country, are ing the Treasury" me-miranda and other departmental reports on the various under consideration, and the Chancellor of the Exchequer, Mr. Philip JSnowden, in particular,' is_ keeping, jin close touch with the Treasury from his home in Surrey.
The scheme approved by ' the Cabinet will probably be the sub-JJect of discussions with Mr, Neville Chamberlain, representing the Conservatives, and Sir Herbert Samuel, representing the Liberals, and if there is an indication thatthe jppositign parties are prepared give th@® proposals general support Parliament will be summoned probably next month.
'The attitude of the Liberal Party' to the scheme under consideration uig"|by the Cabinet Economy Committee jis unknown. In view of the fact, that the appointment of the Economy [Committee whose report has pre imitated the budget crisis was made Jon a Liberal Party proposal, leon sidered likely that the Party wi be behind the suggestions put forward in that committee's report. The attitude of the Conservative Party may be gauged from. the statement" made" by. Mz. Neville Chamberlain on the occasion of Mr. Snowden's pronouncement on, the financial stability of Great Britain.
then said that he was dissatisfied with the relation between experditure and the Uneraployment. In surance Fund in the Goverament's Finance Bill.
Whatever dificalties that may]
ise to prevent a Three-Party coll aboration in effecting w unified plan {for national economy care likely to Jeome out of the method decided upon by' the Government in carrying. out Jor modifying the recommendation: lof the Economy Committee under the chairmanship of Sir George May. "Other members of this com: mittee were:—Mr. P. Ashley Coope Sir Mark Webster Jenkinson, Charles Latham, Lord Plender, Mr Arthur Pugh, and Sir Them Roydien. At the time the committee's terms of reference were made known, "it was stated that" IGoverwent reserved to. itself all political considerations and. it is considered that this reservation ght be applied to the recommend.
fons of the committee with reductions in appropria the social services, especially in view lof the Left Wing of the Labour Party's declared opposition to these reductions, Aug. 16, "A. sheer malicious invention" was the description applied by Mr. Ramsay MacDonald, the Prime Minister, when interviewed by Reuter's correspondent at Lossiemouth to-day, to the report that a manfesto would be issued by Party leaders calling for voluntary cuts in salaries and wages.
Mr. MacDonald said no proposal had been made for temporary all-round cuts in wages and salaries The whole thing was ridiewiou: There was nothing, he added, which by any stretch of the imagination could be made a basis for such a discreditable statement. He dejelared that the country was as secure as the Bank of England.
'A. Pariamentary economy bloc composed of the best elements of fall the three parties is predicted as the probable outcome of the conversations between the party lead-lers in regard to the financial crisis.
Aug. 17.
The drastic economy measures which are to be adopted by the British Government to meet the budget deficit of £120,000,000 were outlined to-day by the "Daily Mail."
Forecasting "equal sacrifice for all" the "Daily Mail" declares that the forthcoming economy programme includes the following 1—A saving of £6,000,000 through
making projects. the along of Inrurous road:
2—A reduction of £475,000 in the Government's grant to the British Broadcasting Company.
Reductions in the salaries of members of the Cabinet and of members of Parliament. The salaries of members of Pailianient are to be reduced in the amount of $50 er year.
price of living and a cut in 4 Enforcement of @ fallin the service salaries.
'5A ten per cent. reduction in the salaries of teachers.
G—A tax of one per coat. on all fixed income bearing investments.
7—A reduction of one shilling [per head in the panel of doctors? capitation feo, reduction of two shillings a week in the unemployment benefits and increased contributions 0 that the scope of the fund may, be, extended.
The "Daily Mail" predicte that theca economy measures will proved by a Three Patty Conference fand by the Cabinet, and* that. September the Parliament will be asked to pass the legislation necessary to make them effective.
Pavty leaders and Ins. Rumeay MacDonald, are returning to. Lone don to devote the week to the task of metting the financial evisis, All efforts are being concentrated on the problem. of balancing the budget. The Cabinet economy come mittee is to meet again to-day and fon, Wednesday there will be & full Cabinet: meeting to consider the situation.
Economy measures are being carefully "examined by ofcals the Treasury and. mamexous. pro posals are. being. submitted to Mr, Philip Snowden, the Chancellor of the Exchequer, for his opinion, In an interview published bj. the Daily Herald" to-day, alr. Philip Snowden, the British Chancellor of the Exelequer, declared that an eXtremely serious situation fa. pre-ling in Great Britain, ensues met and will be taken
Snowden told the "Daily Hevald,?
wiry of the financial exist," May are omnennarte with the
which is the oficial organ of the Tabour, Patty.
""Bury" Mr Snowden continued, "Jet mo immediately anything in the mat ave of Dank Economics wil be drastic but the tion is most sound. to say that Great Britain is on the verge of bankruptcy. The present situation is due to the unfounded nervousness of foreign investors."—United Press.
Aug. 17, "The economy big five" as they are now called—Mr, Ramsay Mac-Donald, Mr. Philip Snowden, Mr. Asthur Henderson, Mr. William Graham and My. J. H, Thomas—regathered in London this morning from the four corners of the Kingdom for their meeting at 4 o'clock this. afternoon.
There is considerable activity among, political circles in anticipat
Government to summon Payliament tian of the expected decision of the after the meeting of the Cabinet fon August 19 in order to pass le-Rislation embodying the ment's proposals, arious theories continue to be advanced regarding the Government's precise measures, but there seems general/agreement that a. special levy on all kinds of interest Dearing securities is at least "regiving serious consideration Reate
Text read from the printed page and cleaned; old type leaves the occasional error.