P6 - Emergence of Baldwin + Labour rise

Claus 4

state ownership belief of industry + greater rights for workers

not as radical as communism and doesn’t call for revolt

“Second eleven”

Churchill called BL gov this

LG resigned in OCT 1922 and BL made gov, but many top conservatives didn’t join as supported LG

First pas the post system favoured Cons victory

-labour opposition with 142 MPs

-Asquith and LG libs combined 118 MPs

Baldwin

BL illness forced resign in 1922-23 replaced by Baldwin 

passed 1923 Chamberlains Housing act + Treaty of Sevres - solve Chanak crisis

DEC 1923 - gen election of tariff reform, didn’t get party fully on his side or the media

led to libs uniting and loss of majority - fail as lost 90 seats 

led to resign 

Hung parliament + Asquith view

labour opposition party took office, with dependence on lib support

libs went along as thought could oust Cons,

control measures,

show labour can’t rule and bring labour down

-missed opportunity to revive own party or form coalition

1st Labour gov

JAN 1924 Ramsay MacDonald PM

good orator and negotiator + well grasped on foreign policy

some labour MPs argued against this but he felt he wanted to show Labour presence

his cabinet filled with mainly moderates and not radicals

lasted only 9 months - perception of party being too radical and close to communism

Reforms passed by Labour gov (5)

raise old age pensions

unemployment benefit - removed gap between 16 week period

public works programme - stimulate employment - gov money used to make roads + council houses 

subsidy to Imperial Airways - make aircraft 

made committee on future of secondary education to extend to 15 and divided at 11+ increase funding

1924 Wheatley Housing act 

raised subsidy to make houses

500,000 new council houses built over 10 years that could only be rented not sold

idea social duty to provide houses

Polarising

public choosing between labour and Cons

libs falling off the radar, suggesting libs decisions to back labour was detrimental 

Accused Honour Scandal

MD got shares from a biscuit factory + a Daimler car when made PM, from friend Alex Grant

anticipated before MD  PM to he Knighted

he was later knighted

-see as embarrassing + corrupt 

USSR

trade treaties - designed to gain compensation for BR investors after communist revolt + felt trade would eliminate unemployment 

recognition of USSR - opponents suggest MD recognised the USSR regime

image pro-communist

lost lib support - can’t pass reform as minority gov

Campbell case

was a communist journalist who encouraged troop mutiny if told to fire against strikers 

MD accused of not taking strong enough action, when his charges were withdrawn 

accused of interfering with justice system 

Election + Zinoviev letter

SEP 1924 MI5 intercept letter from Gregory Zinoviev (chairman of Comintern in USSR)

letter told BR communists to revolt 

initial agreed contents of letter kept secret but was exposed by Daily mail and posted 4 days before elections 

MD defeated at election as fear of communism + lost party moderate voter also.

-letter to be found as a forgery

economy when Conservatives took over (4)

high unemployment:

• ship - North ,Belfast, Glasgow

• coal - national

• textile - West , Wigan

• cotton - Wigan

staples growing slowed down pre 1914 

clear shift in demand of the world

Developing Industries 

Low unemployment

• Aircraft - given subsidies by Henderson - (south, Bristol)

• motor vehicles/ industries - 3x increased by 1920s + petrol etc- (south , Birmingham)

• electrical goods / electric power- 1926 Central Electricity Generating Board - power stations + national grids (south , London)

-growth of service sector such as banking

-food imports had increased so standard of living rising

-mass markets due to growing population 

-continuing urbanisation + improving wages

-railways travel for leisure and employment 

clear not a full depression 

Causes for economic issues 1930s - Demand factor

war lost markets and forced BR to sell oversea investments

USA tariffs + Italy self sufficient

weakened pound

foreign comp e.g. coal -Poland and Germany + cotton - india, USA, Japan

decline of staples + moves to oil 

new industries moving locations as transportation allowed them not to be near coalfields 

Causes for economic issues 1930s - supply factor

lack of investment - BR coal mines 50 y.o and machinery outdated

gov policies sometimes made worse e.g. Geddes axe deepened unemployment + back on gold standard

bad industrial relations - strikes + disputes e.g. General strike 1926

Coal mines

economic difficulties, high injury and death rates

-Br coal can’t compete with cheaper foreign coal

-machinery lagged behind

-mines were small and run by inefficient businessmen - private

-not maintained during the war or invested on 

other forms of power more sought after e.g. oil, electricity

gold standard - coal cheap for domestic buyers but too high for foreign