Posts Tagged ‘gold standard’

Labour history uncut: Arthur Henderson’s last chance for Labour and how maudlin Macdonald blew it

29/08/2013, 03:18:43 PM

by Pete Goddard and Atul Hatwal

After the initial shock of Ramsay Macdonald’s government leaving the gold standard wore off, a tide of anger started to rise across the Labour party.

Just a few weeks earlier, amid cataclysmic warnings from the economists, the Labour government had torn itself apart in its efforts to pass the severe cuts demanded by the markets. All this to prevent Britain coming off the gold standard.

Now the replacement national government had passed the cuts and then come off gold anyway. And the economic sky hadn’t fallen in.

The economists coughed and looked at their shoes. The only sound was Keynes’ gently banging his head against his desk, muttering, ‘I bloody told them’.

‘Was that it?’ wondered the people of Labour, ‘Was that what we sacrificed our government for?’

Someone had to pay.

First on the list, oddly, was new Labour leader Arthur Henderson.

Arthur Henderson models the 1931 beachwear collection

His crime? He had spoken in a conciliatory way in parliament in the debate on whether to come off the gold standard. And he supported the government’s eminently sensible decision. The fool.

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Labour history uncut: “They didn’t tell us we could do that”

09/08/2013, 06:14:56 PM

by Pete Goddard and Atul Hatwal

“We are like marooned sailors on a dreary island”

Not a Morrissey lyric, but the upbeat analysis of Ramsay Macdonald, leader of the new national government, as he pondered the position of the small group of Labour ministers who had stood with him.

They had reason to feel lonely. Macdonald was still prime minister, but when Parliament returned, his government benches would be dominated by Tories and Liberals. Across the floor of the house, former Labour friends and colleagues would glare at him in angry opposition.

Meanwhile, over at Transport House, headquarters of the Labour party, the Transport Union (T&G) and the TUC, the mood was punchy. Ernest Bevin of the T&G declared, “this is like the general strike, I’m prepared to put everything in.” Although if it was like the general strike, he’d then take everything out again after a week and experience total defeat.

On the 27th August, two days after the fall of the Labour government, the party issued a manifesto. Something that clarified Labour’s position on the big issues.

It said, “We oppose the cuts.”

It then said, “Yes, the same cuts we were actually proposing two weeks ago. What? What? Shut up.”

Montagu Norman, governor of the Bank Of England – never trust a man whose names are the wrong way round

On the 28th, the parliamentary party was due to meet to ratify the manifesto and elect a new leader.

As a meeting of the PLP, invites went to all Labour MPs. In a moment of supreme administrative awkwardness, this included Macdonald and the rest of the splitters

It was a pivotal moment.

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Labour history uncut: How the man from the Pru turned an economic drama into a Labour crisis

30/07/2013, 04:19:25 PM

by Pete Goddard and Atul Hatwal

By 1931, prime minister Ramsay Macdonald had made his choice: he was going to cut his way out of Britain’s financial crisis. Austerity beckoned.

But first, as ever, a committee.

The national expenditure committee was set up on February and was due to report in July. So obviously it became known as the May committee. Admittedly this was because the committee chair was Sir George May, recently retired as company secretary at the Prudential, but did they have to make things so confusing?

Sir George May, formerly of Prudential Assurance. “I assure you, the nation is screwed.”

Oswald Mosley, who had been unsuccessfully touting his alternative, spending-based recovery plan around the party, couldn’t take it anymore. In February 1931, he voted with his feet, resigning from the Labour party completely.

Mosley then gathered a handful of his closest MP friends to form a new party. He showed that his new party had the imagination and vision that Labour lacked, by calling it the New party.

The New party betrayed a few hints of what was to come for Mosley by forming its very own militia. This might have been frightening had it not been for their choice of nickname: the “Biff Boys” sounded less a jackbooted menace and more a carefree gay subculture.

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