The Times - May 21 1930

UNEMPLOYMENT Sir Oswald Mosley's Position 

Sir Oswald Mosley, Chancellor of the Duchy of Lancaster, has tendered his resignation of that office to the Prime Minister. Though no definite decision has been announced, there is no doubt that the resignation will be accepted.

Sir Oswald Mosley's action is due entirely to his disapproval of the way in which the Government have handled the subject of unemployment. When the Labour Government was formed last year it was stated explicitly that the Chancellor of the Duchy and Mr Lansbury, the First Commissioner of Works, would have duties imposed upon them "in connection with the scheme for national reconstruction which is being prepared." Since that time the problem of unemployment has been dealt with by Mr Thomas, the Lord Privy Seal, with the assistance of Sir Oswald Mosley, Mr Lansbury and Mr Tom Johnston, the Under-Secretary of State for Scotland. It has been obvious for several months, however, that the arrangement has not been working well, and that there has been growing dissatisfaction with the Government's unemployment policy.

This dissatisfaction reached a critical point at the beginning of the year, when it became known that Sir Oswald Mosley, Mr Lansbury and Mr Johnston had prepared a memorandum advocating more drastic methods of grappling with the subject than Mr Thomas had cared to apply. In their scheme a number of expensive proposals were made, including the withdrawal of the old and the young from industry by raising the school-leaving age and by giving generous pensions to those who retired from work at 60; a reconstruction loan for national schemes of housing and road making; the preparation of schemes of work by an Economic Council, and the provision of the necessary credit through a special finance house; extended credits to Russia, and the setting up of an import board for agriculture.


CABINET DECISION 
This memorandum was submitted to the Cabinet through Mr Thomas, and the hint was conveyed that if it was not accepted Sir Oswald, as its chief author, would feel compelled to resign his Ministerial office. It was remitted to a Cabinet Committee for consideration. That body felt unable to recommend its acceptance, and their decision was confirmed by the full Cabinet. At the same time efforts were made to persuade Sir Oswald Mosley not to carry out his threat to resign. The final decision to persist in resignation was not taken until after the unemployment debate in the House of Commons on Monday, when the Government found itself deserted by its "rebel" Left Wing and by the Liberals, with the result that its majority fell to the dangerously low figure of 15. To many members of the Labour Party Mr Thomas's speech was an admission of failure, and Sir Oswald Mosley seems to have construed it as a suitable occasion for a demonstration.

His decision comes on the morrow of a debate which was described in the official organ of the Labour Party as "not a good day for the Government." The publication of the official figures of unemployment last night showing a further increase of 27,000 has caused consternation in the Labour Party, and it is now agreed that the figures are almost bound to pass the 2,000,000 mark before the winter is reached. In the circumstances, it is felt that the subject of unemployment will dominate the business of Parliament for the rest of the Session. In the division on Monday night 15 members of the Left Wing abstained from voting, and others would have followed their example but for the fear that the Government might be defeated.

The death of Mr Wheatley, the leader of the Left Wing, has given rise to rumours that Sir Oswald Mosley may decide to throw in his lot with the extremists, but this seems to be unlikely. Matters had reached such a pitch that it was obvious that either Mr Thomas or Sir Oswald Mosley would have to leave the Ministry. It is only fair to Sir Oswald to say that, though he disagreed with the Government's handling of the position, he voted in support of Mr Thomas. In this he set a better example than the Labour Party as a whole. In a party which boasts of its 100% attendance at Westminster there were no fewer than 31 members absent from the division unpaired - most of them as a protest against Government policy. Thirteen Conservative and 52 Liberal members were absent unpaired.

The meeting of the Parliamentary Labour Party today was summoned to discuss party discipline, but it is almost certain that Sir Oswald Mosley's resignation will also be considered. A special meeting was held three weeks ago to discuss unemployment, and it was then announced that the Government was not yet prepared to make a further statement as to their attitude towards the Mosley - Johnston - Lansbury memorandum.

The Times - May 21st 1930

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