Chapter 6 Volume 1, Chapter 2, The Heyday of Peace

1922｜1931 The introduction of Mr. Baldwin The downfall of Lloyd George The restoration of protectionist tariffs The first British socialist government The victory of Mr. Baldwin I as Chancellor of the Exchequer War debts and reparations The situation of all classes in the country continues to improve Hindenburg is elected German President Loh The Cano Conference The exploits of Austin Chamberlain The heyday of peace Peaceful Europe Germany's return to prosperity Election 1929 My disagreement with Mr. Baldwin Indian economic storm Good hopes dashed Unemployment Downfall of MacDonald's second government I Britain's financial turmoil began to be driven out of the political arena by the 1931 general election.

In 1922, a new leader appeared in Britain, Baldwin.He was originally an unknown or unnoticed figure on the international stage, and he was only an ordinary character in domestic affairs.He had been Chancellor of the Exchequer during the war and now Secretary of State for Trade.From October 1922 when he replaced Lloyd George until May 1937 when he retired from heavy work to his Worcestershire hometown in a solemn and silent way full of honor and public respect , he is the ruling force in British politics.My relationship with this statesman is part of what I am going to say next.My differences with him were sometimes serious, but in all these years, until later, there was never an unpleasant meeting or contact between us personally, nor did I ever feel that I could not talk sincerely with him personally and get to know each other.

Lloyd George's coalition government is under pressure from within the party over the Irish bill, which is building as the looming general election approaches.The question arises: do we keep the coalition in place until the general election, or dissolve it first.The parties and cabinet ministers in the Coalition Government have worked together for many years and shared many responsibilities, so it seems more in the public interest and the decency of British politics to remain united before the people of the country.To make it easier for the far stronger Conservative Party, the Prime Minister and I offered to resign in writing at the beginning of the year and to support the Conservative Party's Austin Chamberlain in his personal capacity to form a new government.The Conservative leaders, having considered the letter, replied firmly that they could not accept our sacrifice, and that we must advance and retreat together.This kind of chivalrous spirit failed to get the support of other members of the party. At this time, the Conservative Party felt that it was strong enough to hold state power alone.

The Conservative Party overwhelmingly decided to split with Lloyd George, ending the coalition government.In the afternoon of the same day, the prime minister resigned.In the morning they are our friends and colleagues; in the evening they are our political enemies, bent on driving us out of politics.All the eminent Conservatives who have fought with us, and most of the cabinet ministers, with the one and surprising exception of Lord Curzon, have resigned with Lloyd George.These included four of the Conservative Party's most able men: Arthur Balfour, Austin Chamberlain, Robert Horne and Lord Birkenhead.At this critical juncture I was operated on for appendicitis and did not know until the next morning when I regained consciousness that Lloyd George's government had resigned and not only had I lost my appendix but also my Secretary of State for the Dominions and Colonies errand.I consider myself to have achieved considerable success in both parliamentary and administrative fields when I held this position.Mr. Bonar Law, who had left us a year ago on serious health grounds, reluctantly undertook to become Prime Minister.

The cabinet he formed can be called the second eleven-member cabinet.The eminent Mr. Baldwin was Chancellor of the Exchequer.The prime minister asked the king to order the dissolution of parliament, and the people wanted a change.Mr. Bonar Law, assisted by Mr. Baldwin, with Lord Beaverbrook as his chief supporter and adviser, obtained a majority of seventy-three votes, and had a good chance of ruling for five years.At the beginning of 1923, Mr. Bonar Law resigned from the post of Prime Minister and retired, and later fell ill and died.Mr. Baldwin became Prime Minister, and Lord Curzon became Foreign Secretary in the new government.

Thus began the period of fourteen years from 1923 which may be called the Baldwin-McDonald period.The two statesmen, who alternated at first, later formed a political brotherhood and ruled Britain together.Nominally, they represent two opposing parties, two different theories and hostile interests, but in fact they are congenial, have the same views, and have the same methods. There has never been between two prime ministers.Strangely enough, the two men were extremely speculative with each other.Ramsay MacDonald shared many of the views of the old Tories, and Stanley Baldwin, apart from an industrialist ingrained pro-protectionist stance, was of a character compared with many in the Labor Party. But it is a more sincere representative of a moderate socialism.

Mr Baldwin is not dazzled by his sudden political prominence.When others congratulated him, he said: Please pray for me.Before long, he became a little uneasy, fearing that Lloyd George would use the protective tariff as a call to unite many dissident Conservative leaders who had left office at the same time as the war cabinet to split the government's majority or even challenge the party leadership. .So, in the autumn of 1923, he decided to preemptively raise the issue of protective tariffs himself.On October 25th he delivered a speech at Plymouth, only to bring the newly elected Parliament to an end before its due date.He tried hard to say that he had no such intentions; but to believe it would be to underestimate his deep knowledge of British party politics.On his recommendation, Parliament was dissolved in October, and a second general election was called less than twelve months later.

The Liberal Party rallied under the banner of free trade, and I joined it.We have achieved a balancing position in the election; it is a minority party, but it is likely to form a government if Mr Asquith wants it.The Labor Party led by Mr. Ramsay Macdonald only holds slightly more than two-fifths of the seats in the House of Commons. Given that Asquith has no intention of forming a cabinet, Mr. Macdonald became the first socialist Prime Minister of Great Britain. And relying on the acquiescence and bickering of the two parties with a longer history, he finally served for a year.Britain is ruled by a minority Labor Party, and the political climate is so favorable to the Liberal and Conservative opposition parties that they picked the right moment to defeat the Labor government on one major issue.So another general election was called, the third in less than two years.As a result of the election, the Conservative Party won 222 seats more than all parties combined. [1] At the beginning of this election, Mr. Baldwin's position was very weak, and he made no special contribution to the result of the election.But he had been the leader of the Conservative Party before, so when the results of the election were announced, he was, of course, Prime Minister again.

[1] The Conservative Party has 413 seats, the Liberal Party has 40 seats, and the Labor Party has 151 seats. At this time I was quite popular with the Conservative Party.In the by-election in Westminster, six months after the general election, it proved that I did indeed hold power in the Conservative Party.I ran as an independent constitutionalist, but there were many Conservatives who worked for me and voted for me.In my thirty-four committee offices, each chaired by a Conservative MP, they did so against the will of the party leader, Mr. Baldwin, and the party apparatus.It's also unheard of.Out of a total of more than 20,000 votes, I lost by only 43 votes.At the general election, I was re-elected as a constitutionalist for Epping with a majority of 10,000 votes.I would not have used the name of the Conservative Party then.I had a few friendly encounters with Mr Baldwin between the elections, but I don't think he will remain Prime Minister.Now when he wins, I have no idea what he's going to think of me.When he asked me to be Chancellor of the Exchequer, where my father had been for a time, it came as a surprise not only to me but to the Conservatives as well.A year later, with no personal pressure but the approval of my constituents, I formally rejoined the Conservative Party and the Carleton Club after leaving for twenty years.

The first international problem I encountered at the Treasury Department was our debt to the United States.At the end of the war, the European Allies owed the United States some ten billion dollars, of which Great Britain owed four billion dollars.On the other hand, the other Allies, mainly Russia, owe us seven billion dollars.In 1920, Britain proposed to cancel all war debts.As a result, Britain lost at least 750 million pounds on paper.Since the value of the currency has halved since then, the actual figure may have doubled.But never found any solution.On August 1, 1922, the Balfour note under Lloyd George announced that if the United States did not demand debts from Great Britain, Britain would not demand debts from its debtors, whether allies or former enemies.This is a worthy statement.In December 1922, the Bonar Law government sent a British delegation headed by Chancellor of the Exchequer Baldwin to Washington. As a result, Britain agreed that no matter how much it recovered from its debtor countries, Britain should pay back the debts owed to the United States. For all war debts, the interest rate has been reduced from 5% to 3.5%.

The agreement has caused deep concern among those familiar with the situation, especially the Prime Minister himself.In the war, as in this war, Britain has fought from beginning to end and has exhausted the people, and this agreement will cost Britain £35,000,000 a year for the next sixty-two years.Not only in England, but also by many disinterested financial authorities in the United States, the agreement was considered to be based on severe and ill-conceived conditions, both for debtors and creditors.President Coolidge said: They borrowed our money, didn't they? This succinct statement is true, but not entirely.If the payment between countries takes the form of delivery of goods or services, especially if it is a mutually beneficial transaction, it is not only fair, but also beneficial to both parties.However, if the method of payment is only the arbitrary and artificial cashing of the very huge sums caused by the war finance, it will inevitably disturb the whole process of the world economy.The same situation arises whether this payment is made from an ally who shared the victory but suffered a lot, or from a defeated enemy.The implementation of the Baldwin/Coolidge debt agreement was a clear factor in bringing the world into economic collapse, hindering world recovery, and fueling hatred shortly thereafter. The United States has recently raised tariffs and put almost all the gold it has ever mined in its underground vaults, making it harder to service the US debt.The decisions it imposed on the rest of the Entente in Europe were similar, only lighter.The first result of this approach is to make countries step up blackmail from Germany.I fully endorsed the policy of the Balfour Note of 1922, defended it at the time, reiterated it and acted upon it when I was Chancellor of the Exchequer.I think that if for this reason England is not only a debtor to the United States, but also a debt collector for the United States, then Washington must see that it is not wise to demand debts, but in the United States it has not happened. This reaction, in fact, is quite dissatisfied with this argument.The United States continued to insist that Britain must repay its debts every year, only by reducing the interest rate. Therefore, in addition to requiring Germany to pay the reduced reparations, we must also negotiate a solution with the other Allies so that we can obtain the thirty-five million pounds annually payable to the American treasury.As a result, Germany was under extreme pressure and had to accept a nasty international watchdog that interfered in Germany's internal affairs.The United States received three full payments from Britain, which in turn had been extorted from Germany in proportion to the revised Dawes plan. At that time, I lived at No. 11 Downing Street and lived next door to Mr. Baldwin for almost five years. I went to the Ministry of Finance every morning to work, and when I passed by his residence, I almost always went to see him and talked with him at the cabinet meeting. Talk in the room for a few minutes.I was one of his chief staff and I was responsible for everything that happened.During these five years, the revival of the country has achieved considerable results.The government was a calm and able one, with marked progress and restoration from year to year throughout the period.As far as the political program is concerned, nothing astonishing or controversial can be boasted about, but the lives of the masses have definitely improved, whether measured by economic or financial standards.At the end of our term, conditions at home and in the world are far more comfortable and prosperous than they were at the beginning of our term.This is a mundane, but also very factual comment. Throughout Europe, the government acquired a good name. At this time Hindenburg came to power in Germany.Ebert, the leader of the German Social Democratic Party before the war and the first president of the German Republic after the defeat, died at the end of February 1925.The nation must now elect a new president.All Germans have been brought up under a paternalistic despotism, conditioned by the far-reaching habits of free speech and parliamentary opposition.The defeated god of war spread his feathered wings and brought an extreme democratic system and various freedoms to the Germans.But what Germany has experienced has torn the country apart, and it is at a loss as to what to do. All parties and factions compete with each other for power and profit.In the midst of the confusion, there was a strong desire to turn to Field Marshal Hindenburg.Hindenburg had retired home by this time, but was still loved.He remained loyal to the emperor in exile and favored a restoration of the monarchy on the British model.This is naturally the most reasonable, but most unsuitable move. When he was nominated as a presidential candidate under the Weimar Constitution, he was disturbed.He said again and again: Let me live a peaceful life! However, the pressure to ask him to go out continued to exist, and finally found Admiral Tirpitz to persuade him, so that he no longer hesitated to give up his original intention and take responsibility for the country.Hindenburg has always been brave enough to undertake his duties for the country.Hindenburg's opponents were Max of the Catholic Center Party and Thälmann of the Communist Party.Elections are held in Germany on Sunday, April 26.The votes were unexpectedly close to each other: Hindenburg, 14,655,766 votes; Max, 13,751,615 votes; Thälmann, 1,931,151 votes.Hindenburg's reputation was prominent, and he reluctantly agreed to this election because of various persuasions, and he was not involved in the interests of all parties. He gained the upper hand among the candidates and was elected with a majority of less than one million. An absolute majority has not yet been reached.When his son Oscar woke him up at seven in the morning to tell him the news, he scolded him: Why did you wake me up an hour earlier?Even at eight o'clock, things would be the same!After speaking, he went to bed again, and didn't get up until the usual time to wake him up. Hindenburg's election was seen in France as a new challenge to Germany from the very beginning.The response from the UK was relatively smooth.I've always wanted to see Germany regain her honor and pride and let the hatred of the war die away.So this news didn't make me anxious at all.Lloyd George said to me when we met again: He was a very reasonable old man.Indeed, Hindenburg was such a person before he was too old to be confused.Even some of his most vehement opponents had to admit that a waste was better than a tyrant. [1] However, he is seventy-seven years old, and his term of office is seven years.Few would expect him to be re-elected.He tried to be even-handed among the various parties; and his presidency did give Germany a steady strength and tranquility that did not threaten its neighbours. [1] Quoted from Theodor Lessing (assassinated by the Nazis in September 1933). In February 1925, the German government made a proposal to the then French Prime Minister Herriot.The German government's memorandum stated that if the countries with interests in the Rhine, especially Britain, France, Italy, and Germany, could sign a treaty with the United States government as guarantor, stipulating that for a long period of time, they would not wage war against the contracting countries. solemn obligation, Germany is ready to declare its acceptance.In addition, Germany could accept a treaty guaranteeing the status quo of the borders of the Rhineland.This is an extremely important event.The French government began consultations with its allies.On the British side, Austin Chamberlain made the announcement in the House of Commons on March 5.Negotiations were delayed due to the parliamentary crisis in France and Germany, but after negotiations between London and Paris, on June 16, 1925, the French ambassador to Germany addressed the German Foreign Minister Strey in Berlin. Zeman presented a formal note.The note declared that no agreement could be reached unless Germany's membership in the League of Nations was a prerequisite.Germany shall not make any proposals to modify the terms of the peace treaty.Belgium should be included among the contracting states; finally, a Franco-German arbitration treaty should be concluded as a natural supplement to the Rhineland Convention. On June 24, the British House of Commons held a debate on what attitude the United Kingdom should adopt. Mr. Chamberlain explained that according to the provisions of the Convention, the obligations undertaken by the United Kingdom were limited to Western Europe.France may have to establish its special relations with Poland and the Czech Republic, but England will have no obligations beyond those expressly provided for in the Covenant of the League of Nations.The Dominions were not enthusiastic about the Western European Convention.General Smuts wanted to avoid a regional agreement, Canada was indifferent, only New Zealand was ready to accept the British government's views unconditionally, but we still insisted.It seems to me that the settlement of the thousand-year conflict between France and Germany seems to be our highest goal.If we can bring the two great nations of Gaul and Teutonia into close economic, social and moral unity, so as to prevent new disputes, achieve common prosperity and mutual dependence, and make the past antagonism disappear, Then Europe can flourish again.It seems to me that the greatest interest of the English people lies in the conciliation of the differences between France and Germany, and that no other interest seems to rival or conflict with it.To this day, my opinion remains the same. Mr. Austin Chamberlain, Foreign Secretary, offered views respected by all parties, and the Cabinet unanimously supported him.Germany responded to the French note in July, accepting the combination of the Western European Pact and Germany's entry into the League of Nations, but stating that it was necessary to establish an agreement first on the question of general disarmament. Mr. Briand came to England to have a long discussion on the Western European Convention and the problems connected with it.In August, France obtained the full agreement of Britain and formally responded to Germany.Germany must join the League of Nations unconditionally as a necessary first step. The German government accepted this condition.That is to say, the terms of the peace treaty, unless and until amended by mutual agreement, would remain in force; nor did Germany receive specific guarantees of reductions in armaments by the Allies.In addition, the Germans put forward other demands under the pressure and passion of strong nationalism, such as the cancellation of the clauses on war crimes in the peace treaty, the request that the Alsace-Lorraine issue not be resolved for the time being, and the immediate withdrawal of the troops of the Allied Powers. The German government did not insist on the Cologne retreat, etc., but even if it persisted, the Allied Powers would not agree. On this basis, the Locarno Conference was formally held on October 4th.Beside the mirror-like lake, representatives from Britain, France, Germany, Belgium and Italy gathered together. The achievements of the meeting are: first, the five countries concluded mutual assurance treaties; second, arbitration treaties were concluded between Germany and France, Germany and Belgium, Germany and Poland, Germany and the Czech Republic; third, France and Poland, France Special agreements were concluded between France and the Czech Republic, which stipulated that if the Western European Convention breaks down and unreasonable military actions follow, France guarantees assistance to Poland and the Czech Republic.In this way, the Western European democracies unanimously agreed to maintain mutual peace under any circumstances, and unanimously opposed any contracting country to break the agreement and launch aggression against the brotherly countries.Britain made a solemn guarantee to France and Germany: if any of the two countries becomes the target of unprovoked aggression, it will provide assistance to that country.This far-reaching military obligation was recognized by Parliament and enthusiastically supported by the whole country.Such a work can be said to be unprecedented. The question of whether Britain or France was obliged to reduce armaments, or to what extent, was not affected.As Chancellor of the Exchequer, I encountered these problems shortly after I took office.My opinion of this twofold guarantee is as follows: if France maintains its armaments and Germany disarms it, there is no possibility of Germany attacking France; Allies of Germany so that France would never attack Germany.This suggestion seems to be dangerous in theory. If there is a war between Germany and France, we must guarantee to join this or that side. But such a disaster as this is very difficult to encounter in practice; good idea.I have therefore always been opposed to the disarmament of France and the rearmament of Germany, which would at once present far greater dangers to England.On the other hand, Great Britain and the League of Nations (to which Germany was a member by agreement) afforded the German people a certain protection.This created a balance of power in which Great Britain, whose main interest was to end the dispute between Germany and France, basically occupied the position of notary and arbitrator.We hope that this balance will last for twenty years, during which time the armaments of the Entente will be gradually reduced under the effects of long peace, growing confidence, and financial burdens.It is obvious that the danger would arise once Germany was roughly equal in power to France, let alone Germany became stronger than France, but all these scenarios seemed to be precluded by solemn treaty obligations. The Locarno Pact concerned only peace in Western Europe, and it was hoped that there would be a so-called Locarno Pact for Eastern Europe to follow.We shall be glad if the danger of a future war between Germany and Russia can be brought under control with the same spirit and measures that have prevented the possibility of a war between Germany and France.But even Germany under Stresemann was unwilling to give up German claims in the east, or to accept the terms of the territorial treaties for Poland, Danzig, the Corridor and Upper Silesia.Soviet Russia, behind the anti-Bolshevik line of defense, calculated in isolation.While we continue our efforts, no progress has been made in Eastern Europe.I have never fallen on deaf ears to attempts to give Germany greater satisfaction on the eastern frontier.But in these short and promising years, good opportunities have never been encountered. The treaty resulting from the Locarno Conference at the end of 1925 was warmly welcomed. Baldwin was the first to sign at the Foreign Office.As the Foreign Secretary had no official residence, he and Stresemann had an intimate and friendly lunch in my restaurant at No. 11 Downing Street.We met in an atmosphere of great friendliness and agreed that the future of Europe would be infinitely better if the largest countries in Europe were truly united and felt safe.Following the good faith assent of Parliament to this memorable document, Mr. Austin Chamberlain was awarded the Order of the Garter and the Nobel Peace Prize.His success marked the high tide of European revival, and since then began three years of peaceful revival.Although the old antagonisms are only dormant, and the drumming of recruits is faintly audible, there is reason to hope that, on a well-founded basis, we will forge a path forward. At the end of Baldwin's second administration, Europe was calmer than it had been for the past two decades, and it hasn't been for at least another two decades.Since our Treaty of Locarno there has been a friendly sentiment towards Germany, and French troops and Allied contingents have withdrawn from the Rhineland long before the date fixed by the Treaty of Versailles.New Germany joined the incomplete League of Nations.With the thoughtful help of American and British loans, Germany soon recovered.Its new ocean liner earned the honor of being the fastest passenger ship to cross the Atlantic.Its trade has grown by leaps and bounds, and domestic conditions are very prosperous.In Europe, France and its alliance system also appear to be in good health.The terms of the Treaty of Versailles on the abolition of armaments were not openly violated.Germany's navy no longer exists.Germany's air force was banned and has not yet been revived.There were many powerful figures in Germany who, at least on the grounds of prudence, strongly opposed war, and the German High Command did not believe that the Entente would allow them to rearm.On the other hand, there is unfolding before us what I shall hereinafter call the economic storm, but only a few people in the financial circles are aware of it; I was so frightened that I fell silent. The general elections of May 1929 showed that the ups and downs of political parties and the normal desire for change are powerful factors affecting voters.In the new House of Commons, Labor holds a slim majority over the Conservatives.The Liberal Party, with about 60 seats, holds a pivotal position.It was clear that, under Lloyd George, the Liberals were bound to take a hostile stance against the Conservatives, at least initially.Baldwin and I completely agree: we should not form a government as a minority party or rely on the shaky support of the Liberal Party.Baldwin therefore tendered his resignation to the king, despite some disagreement over the course to be taken by the cabinet and the party. We all took a special train to Windsor, handed in our seals and ribbons, and formally resigned; on June 7, Ramsay MacDonald served as Prime Minister for the second time and became the leader of a minority government that relied on the support of the Liberal Party. The socialist prime minister hopes that his new Labor government will make major concessions to Egypt, sweeping institutional reforms in India, and renewed efforts to bring about disarmament in the world, at least in Britain, etc. Make the Labor government famous all over the world.He figured that these ends would have the support of the Liberal Party, and thus a majority in Parliament.That's where my disagreement with Baldwin started.Since then, there has been a marked change in the relationship that arose when he picked me as Chancellor five years ago.Of course we still maintain a pleasant personal contact, but we all know our differences of opinion.I think that the Conservative Party, as the opposition party, should be strongly opposed to a Labor government on all important questions, both imperial and domestic, and should uphold the dignity of England, as it did under Lords Disraeli and Salisbury, Debate should be pursued without hesitation, even if it does not elicit an immediate national response.As far as I can see, Baldwin feels that the era of resolutely maintaining the glory and greatness of the British Empire has long passed; Strong emotions and most of the voters were taken from them.Of course he was extremely successful in this.He is the greatest party manager the Conservative Party has ever had.As the leader of the Conservative Party, he participated in five general elections and won three times.On these general questions only history can judge. The categorical rift between us arose over the Indian question.With the strong support and even instigation of the Conservative Governor-General of India, Lord Owen and later Lord Halifax, the Prime Minister proposed his Indian autonomy plan.So a strange meeting was held in London, and Mr. Gandhi, who had just been released from a spacious and convenient detention center, became the central figure of the meeting.As for the details of the controversies that took place at the Congresses of 1929 and 1930, it is unnecessary to describe them all in this book.My relationship with Baldwin broke down when the government decided to release Gandhi so he could attend the London Conference as an emissary to nationalist India.He seemed quite satisfied with the way things were going, and he agreed with both the Prime Minister and the Governor-General, and decidedly led the opposition Conservative Party down this road.I firmly believe that in doing so, the final result will be that we will lose India, and the Indian people will suffer immeasurable disasters.So soon after I resigned from the shadow cabinet over this issue.On January 27, 1931, I wrote to Mr. Baldwin: Our differences on India policy have been made public.In the past, I was honored to invite you to participate in your business committee, but now I feel that I should no longer attend.Needless to say, I will do my best to help you oppose a Labor government in the House of Commons; and I will do my best at the General Election to bring about the defeat of the Labor Party. In 1929, until the end of the third quarter, there were hopes and prospects of increasing prosperity everywhere, especially in the United States.Frenzied speculative enterprise was indulged in extreme optimism.Books have been written proving that this stage of economic crisis has been overcome by expanding business organization and science.In September, the director of the New York Stock Exchange also said: We've clearly put an end to cyclical economic crises as we know them. But in October, a sudden frenzy swept Wall Street.Intervention by the most powerful institutions could not stem the frenzy of panic selling.Some major banks raised billions of dollars in an attempt to maintain and stabilize the market. But all was in vain. In previous years, all the wealth that was quickly accumulated at par value was once wiped out.The prosperity of millions of American families, built on the gigantic structure of credit inflation, is suddenly proven to be an illusion.Prior to this, even the most famous banks used low interest rates to encourage people to engage in national stock speculation. In addition, they also established the method of purchasing houses, furniture, cars, and various household daily necessities by installment payment, and deferred payment. Huge business system.All of these are now finished together.Factories for mass production were in a state of chaos and paralysis.Just a day earlier, thousands of technicians and workers had started commuting to work by car, making parking a pressing problem.The whole society has always been engaged in extremely active production activities, producing all kinds of high-quality products for the enjoyment of hundreds of millions of people, but today, this society is caught in a tragic situation of sharply falling wages and increasing unemployment.The US banking system is far less centralized and less well-founded than the UK's.Twenty thousand local banks stopped paying.The way people exchange goods and services with each other has been shattered.The Wall Street crash affected every family, rich and poor. Longing for far more wealth and more people enjoying a more comfortable life together is a beautiful vision that once captivated the American people, but don't think it is pure paranoia and market madness.Never before had any society produced, shared, and exchanged such vast quantities and varieties of goods.There is indeed no limit to the number of interests which human beings can enhance one another, if their industry and skill are put to the best use.However, vanity, fantasy, and insatiability greatly exceeded the actual achievements, and finally ruined the magnificent appearance.During the period 1929-1932, the collapse of the stock market was followed by a collapse in prices and a subsequent reduction in production, which caused mass unemployment. Disturbances in economic life had worldwide consequences.Unemployment and falling production have led to a general contraction of trade.Countries have implemented tariff restriction policies to protect the domestic market.This general crisis was followed by a sharp financial crisis that paralyzed domestic credit.Bankruptcies and unemployment spread across the globe.The Macdonald government had made all kinds of promises, but in 1930-1931, facing the unemployment of one million to nearly three million people, made him dizzy.It is said that ten million people are unemployed in the United States.The whole banking industry of this great republic was thrown into disarray and collapsed in an instant.The disaster it caused spread to Germany and other European countries. But no one has starved to death in the English-speaking world. A government or party based on attack capital will always struggle to maintain the confidence and credibility that are so vital to a highly artificial economy in an island nation like Britain.麥克唐納的工黨政府完全無法應付所面臨的問題。他們甚至不能運用黨的紀律或採取必要的有力行動來使預算平衡。在這種情況下，一個早已處於少數地位而又喪失了一切財政信心的政府，是不可能繼續維持下去的。 工黨政府之不能應付這次風潮，英國財政信用的突然崩潰，自由黨及其有害的平衡力量的瓦解，所有這些導致了一個聯合政府的產生。看來只有由各黨組成的政府才能應付這次危機。麥克唐納先生和他的財政大臣，本於強烈的愛國熱忱，力圖引導工黨群眾擁護聯合政府。鮑德溫先生一向認為，只要他保持他的權力，別人盡可以擔任官職。現在他願意在麥克唐納之下服務。他這種態度固然值得尊敬，但事實上並非如此。勞合‧喬治先生做手術後還在休養（以他的年齡來說，情況是嚴重的），於是由赫伯特‧塞繆爾爵士率領大多數自由黨人參加了各黨聯合政府。 我沒有被邀參加聯合政府。在印度問題上，我已在政治上和鮑德溫發生分裂。我又是一個反對麥克唐納工黨政府政策的人。我和別人一樣，也感到有成立聯合政府的必要。但我被置在這個政府之外，既不使我驚訝，也不使我感到不快。 事實上，在政府改組的時候，我還在戛納繪畫。如果那時我被邀參加，我會做出點什麼呢？I don't know either.討論事實上從來不存在的令人懷疑的誘惑純屬多餘。在這年夏季，我曾經同麥克唐納談過聯合政府的事，他表示有興趣。但那時我在政治舞台上處於很為難的地位。我擔任內閣官職已有十五年之久，現在正忙於寫我的《馬爾巴羅傳》。對於那些在喧嚷的政治漩渦中的人來說，當時的政治戲劇的確是扣人心弦的。但我可以坦白地說，我在國家緊張關頭被斷然拋棄，並不使我感到憤懣，更說不上傷心，只是有所不便。從一九○五年以來，在下院開會時我總是坐在前排的席位，可以在我的座位上站起來發言，比較方便。我可以把發言稿放在講桌上，多少給人以即席發言的印象。現在我必須有點困難地在政府席那邊的過道後面找個座位，在發言時必須把稿子拿在手裡；同其他著名的前內閣大臣們進行辯論時，就只好碰運氣了。不過我還是常常得到發言機會。 新政府的成立並沒有制止住金融危機。當我從國外回來時，發現在勢必舉行的大選行將到來之時，什麼問題都沒有獲得解決。選民作出了無愧於英國民族的決定。聯合政府在工黨的締造者拉姆齊‧麥克唐納先生的領導下宣告成立。他們向人民提出了一個厲行節約和要求付出犧牲的綱領。這是熱血、辛勞、眼淚和汗水的早期版本，只是當時還不存在戰爭和生死攸關的危險所帶來的刺激或要求罷了。最嚴峻的經濟政策必須實行。每個人的工資、薪俸或收入必須削減。人民大眾被要求投票擁護一個厲行緊縮節約的政府。人民響應了，就像往常當他們激發起英雄氣概時所表現的那樣。儘管政策背棄以前的聲明，廢除金本位；儘管鮑德溫先生不得不停止償付而且永遠也不再償付美國戰債（這些美國戰債是鮑德溫迫使一九二三年的博納‧勞內閣向美國償付的），自信心和信用還是恢復了。新政府獲得了壓倒多數的擁護。麥克唐納先生出來組閣，但在他自己的政黨中，只得到七八個人的支持；而僅僅有五十個他的黨內反對派和他以前的追隨者當選為議員。他的健康狀況和精力迅速衰退；在決定命運的將近四年的時期內，他在越來越衰老的情況下在英國政體的最高地位執政。就在這四年中，希特勒很快就來了。