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Catalogue Reference:CAB/24/201
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S E 0 R E- T
CP. 27(39)
GABIHET.
UNEMPLOYMEHT-.
Memorandum by the Home Secretary.
It
is no part
of m
y purpose to discuss in this memorandum
the broad national and economic aspects of the problem presented
by the unemployed:
these are only too familiar
however, been considering lately
reactions on the fortunes
and I must confess that
applied,
the problem in relation to
of the Party at
There is not
I find
its
on all
already
the prospect most
lacking evidence that
during the Election will be vilified
I have,
the General Election,
despite the remedial measures
in preparation or contemplated,
disquieting.
to us all...
the Government
the Opposition platforms.,
not only for having done nothing to improve the unemployment
situation during their
become even more acute
term of office,
n
but for having allowed it
Attention will be directed to the
periodical returns,
and we shall be asked to explain how It
when we took office
there were only about
am aware that
these figures
are not
there have been a number of factors
strictly
comparable and that
a high level,
Election times explanations of a seeming failure
dissertions
but at
are received with
to the Coal Strike and the General Strike-­
causes of our present
industrial
i l l s will only
serve to antagonise those whose confidence we most desire to wiru
W
e cannot disguise from ourselves the fact
that
an attack on the
Government's unemployment policy is inevitable and will evoke
considerable
,
on world economics will be received with
impatience, and references
as contributory
of 1,520,730.*
beyond our control operating
to keep unemployment In this country at
suspioionj
is that
1,190,000 unemployed and
that that figure has now grown to the startling total
I
to
sympathy in the country,
and i t
is necessary for us
to use our utmost endeavour to render the attack abortive.
On December 31st, 192*"­
The
provide
Government
the
de-rating
necessary
of
on
special
juvenile
workers
available,
bear
and
in
time,
tributions
to
the
on p l a t f o r m s
probable
results
survey
such
of
not
be
to
and
of
the
those
our
through
have,
addition,
at
the
is
concerned,
Schemes
an
in
of
no
is
that
of
reduction
and
in
special
and d u r i n g
has
the
migration
the
policy.
financial
to
schemes
to
up
be
In
with
Canada
their
is
we
the
of
Labour,
in
with
several
the
i n hand w i l l
There
are,
training
migration
the
Canadian
Settlement
background
land
there
relief
trainees
pursuance
as
a necessary
the
of
transferred,
So f a r
if
on
shall
end
undergoing
Land
turmoil
results,
including
reached
are
stand
for
been
works
any
be
the
themselves.
fact
and
during
same p e r i o d
failure
con­
The
asked
areas,
ambitious
course,
properly
Ministry
centres.
as
as
Between
relief
been
of
dispassionate
it
juveniles
regarded
linked
fares
yet
more
foredoomed
was
and
training
are
the
the
will,
work
and
have
transferred
adults
to
of
distressed
on
and
there
where
produce
take
shall
and
will
receive
-
em-
meetings,
showings
January
the
agreement
it
we
machinery
Labour
appear
that
adult
cannot
close
achieved
thought,
Canada which
scheme would
training
from
regard
intensive
suggestion
the
a number
in
of
policy,
it
Ministry
authorities
be
a
their
aggregate
opponents
indifferent
employment
grants
in
The
an
beginning
given
new
to
of
projects
cannot
our
expectations,
10,000 w o r k e r s
thousands
to
presently
If
and
the
after
and
the
in
mass
fear,
employment,
industries
problem
I
The
migration,
at
not,
offensive.
of
several
not
Moreover,
or
understand,
some
these
will
they
training
assessed
as
make b u t
and
be
the
calculation
promisee
able
of
areas,
those
worth
careful
results
August
I
which
an Election..,
actual
their
or
increased
the
in
will
counter
distressed
work,
solution
in hand
a
of
encouragement
but
reviewed
for
from
employment
the
for
promise
relief
for
fruit
matters
its
workers
ployment
already
ammunition
scheme w i t h
transference
is
measures
settlement
were
of
various
result,
any
unemployment.other
on a
rough
- a ­
estimate,
the
in
course
25,000
the
of
the
to
30,000
employed:
wives
proportion
of
of
3&,000
There
settlement
present
will
the
unassisted
is,
I
migration
gather,
to
Of
been
children
total
Canada
year.
have
and
in
and
will
few,
no p r o s p e c t
at
certainly
the
ranks
account
for
a
any,
of
the
a n d New Z e a l a n d
more
of
the
estimated
the
than
un­
total
unemployed.
moment
of
as
conditions
the
during­
considerable
the
come f r o m
souls
not
from
if
will
some - 6 9 , 0 0 0
these
drawn
emigrants
Australia
of
increased
are
unfavourable.
I
would
like
transference
of
of
for
juveniles
available
of
this
is
here
workers
employment
for
any
on B r i t i s h
place
heavy
disastrous
if
adequate.
The
was
the
and heavy
industry
amount
industries,
and
the
in
for
of
to
of
Moreover,
outside,
London
that
about
hostility
On a
the
assistance
which
its
will
be
see
are
effect
general
conclusion
that
of.migration
cannot
on t h e
most
and
the
of
surplus
to
with
both
the
for
any
in
transferees
to
during
situation,
Government
the
optimistic
it
and
going,
notably
and
Election.
is
not
easy
schemes
for
the
reckoning
expansion
This
of
to
workers,
embrace
the
those
incursion
the
transference
with
itself
are
the
their
recruitment
for
own u n e m p l o y e d .
full
of
those
of
House
steel
textile
considerable
the
there
and
coupled
difficult
hostile
the
the
it
that
the
in
be
not
contraction
when
may m a k e
takes
were
iron
sections
react
would
considered
which,
on t h e i r
of
Board
factors
becoming
review
available
is
continuance
it
stream
which
training
my v i e w ,
normal
to
exploited
in
the
signs,
districts
the
shipbuilding,
of
successfully
I
and Middlesex,
anxious
escape
the
are
the
the
i n which work
industry,
a permanent
of
that
and when a r e v i v a l
certain
face
agree
and
moment,
labour
in
I
areas
may w e l l ,
textile
elsewhere
causes,
grapple
the
If
skilled
to
long,
industries
trade.
the
diversion
natural
at
time
surplus
be p r e p a r e d
transfer
operation
of
that
though
industries
Transference
and
The
persisted
or
of
permanent
personnel.
if
those
industry.
trades
engineering,
must
in
that,
distressed
expedient
Industrial
a probable
the
length
u n f av our a b l y
the
indicate
from
a necessary
policy
In
to
more
than
60',000
of
the
unemployed
afford
in
the
near
employment
that
can
ask
the
two
or
such
mass
I
the
think,
I
so
as
unemployed
drainage
migration
at
and
that
with
their
to
be
to
that
clear
the
to
not
the
we
to
are
un­
doing
endure
miserable
Party
will
conscience
prepared
present
the
as
to
secure
absorb
time
the
a. p r o p o s a l
to
if
all
we
can
for
one,
condition?
we w e r e
vast
areas
sources
of
they
of
electric
the
attract
building
power
of
plants,
by
unless
undertakings
the
private
undertaken
sufficiently
under
large
Statute.
future,
were
materials
could
But
to
It
make
lines
any
to
(and
be
presumably
be
Empire
the
supplied
s^aaafc&al x o n t r i b u t i o n . v r o n l d
p r o d u o - t - i v e . w o r k JijQE,
of
works
constructed
if
present
like,
the
Act
to
be
to
take
the
works,
on any
to
large
be
soale,
and
it
cannot
1922
on
a
limitations
be
far
as
practicable
imposed.by
undertaken
scheme
opened
wealth^
unlikely
of
are
potential
become
to
de-rating
have
are
were
so
at
there
were
return,
to
detailed
were
is
rate
Settlement
because
increasing
irrigation
immediate
more
merit
areas
any
surplus,
to
it
at
quickening
I would v e n t u r e
whether
the
danger
0
development,
those
these,
of
and
promise
of
Governments
and
of
any
permanent
traders
dams,
many
obviate
and
enterprise,
scale
at
these
or
as
Grown C o l o n i e s
which
the
depressed
line,
the
seems
and
If
0
of
Empire
which
country
more
safety
with
for
to
migrants,
the
railways,
the
if
of
the
trades
Dominion
British
harbours
undertaken
the
the
immigrants
Such
their
policy
in
incidentally
Dominions
and no
centres.
at
remainder
capacity
on t h e s e
wealth
the
of
production
beyond
the
undeveloped
would
producing
form
of
comprehensive
and
render
matter
In
a
work
possible,
to
same
in
find
transference
consideration.
the
satisfied
a
year,
relief
then
stimulating
wealth-producing
make
be
substantial
disastrous
of
as
by
so
tractable
up,
current
we
submit,
industries
the
the
claim.
object
and
any
unemployed
more
be
three-fold
of
done
years
We m u s t ,
the
Are
be
of
three
would,
future
problem.
safely
during
in
of
fulfils
the
near
British
its
promise,,
c o n j P - Q t i t i Y ^ F p n L c o - B " ^ . . &*. - e u b ­
been
t h e unemployed
in
made
those
to
the
provision
industries
which
of
are
at
present
suffering
migration,
to
productive
power
the
prosperity
ultimately
I
have
funds
are
in
at
the
a policy
Imperial
to
of
earliest
possible
financing
first
found
concealed
in
to
am a w a r e
of
would
have
service
of
period,
any
and
so
far
a matter
at
of
shoulders
those
that
we
scale
for
necessary
of
known
schemes
to
be
should
than
against
such
the
them p r o v i d e d
in
last
the
for
course,
that
there
as
but
I
be
an
the
under^
embark
hitherto
for
the
even
be
increased
and
unemployed
increase
cost
in
of
of
20
fund
or
30
are
major
be
employment
and
the
some
that
and
their
the
national
of
by
the
of
such
and
as
a
the
for
part
certainly
ahead,
this
portion
have
fell
to
upon
a n d w i s e 13^
return
and
as
burden
concerned,
to
set
off
migration
which
between
millions
revenue,
is
answer
though
years
dependents,
unemployed
the
various
rates
50
how
credit
money w e l l
immediate
out-relief
the
the
sharing
the
some
also
is,
raising
make p r o v i s i o n
Dominions
if
the
indefinite
The
that
guaranteed
Government
to
an
itself
suggest
am a w a r e
way.
unemployment
total
I
of
possibly
would
benefit
I
quarters
am c o n v i n c e d ,
expenditure)
relieve
year
rate
presents
maintenance
their
would,
Moreover,
many
loan
time,
agreement
spent.
in
an abuse
the
such
any
it
naturally
be p r e p a r e d
for
in paying
succeed
as
such
they
assume
and
the
doubtless
subscribed-loan
that
to
until
of
moment
inflation.
undertakings
would
that
plans
prospect
are
be provided?
a publicly
measure
Government
our
schemes
suggest
that
funds
be regarded
loan would
be
a fair
on a much l a r g e r
question
a
would,
is
in
shipping.
bodies,
when
the
course,
Crown C o l o n i e s
be undertaken
these
I. w o u l d
I
lengthy
and
to
Many
necessary
be
the
trade
schemes
Government.
of
British
or p u b l i c
to
increase
of
by p r i v a t e
when t h e r e
Any
will,
the
of
and
Colonies
of
and
revenue,
Colonies.
whether
or
stimulation
development.
The
the
and
and
Dominions
the
national
benefit
Office.
of
to
the
Dominions
the
the
return.
of
Dominions
to
available,
Colonial
taken
is
the
development
immediate
are
the
been prepared,
various
the
of
of
that
severely,
expansion
redound
imagine
on
the
most
during
and
there
I
cannot
limited
to
would
the
above
figure:
unemployed
children
as
history
of
the
such
It
a
that
Development
here
at
Loan
an early
Special
supporters
But
will
before
this
of
bridging
intend
date
a
if
the voices
proposal
can r e a c t
loan
for
is
base
h i s appeal
find
lour
road
you work".
opponents
lemployed
to
think
by c r e a t i n g
If
of
of
such
and i f
cover
Colonial
and
market
proposals
find
for
in England,
a certain
to present
I
Conference
there
we w e r e
a
able
Colonial
inviting
at
a
we s h o u l d ,
I
employment
of
our
time
ground.
must
here,
a n d we
some m e a n s
that
the
extent,
w a y we s h o u l d
results
a
MacDonald
"I
of
the
transfer
and
be i n a
to
will
anticipate
a s many
for
of
of
Mr.
must,
Liberals
the raising
for
elapse
Dominion
on t h e p r o m i s e ,
schemes
satisfactory
the
and that
we m u s t ,
in this
a
the
all
t o my n o t i c e
the existing
then
to discuss
considerable
mainly
onoe
if
critics.
the country
at
­
a
the apprehensions
politically,
to
such
loan
at
of
consideration
labour
h a s come
months
coping
view
the flotation
itself
some
on t h e
country
supplemented
position
that
construction
as possible.
Inigration. were
tronger
I
It
the
large
to
n o t by
survive
interval.
to put before
general
the Dominions,
our
in
In the meantime,
allay
of
and employment
we a r e t o
that
does
be o b v i o u s
loans
both
two
i n t h e economic
of Dominion R e p r e s e n t a t i v e s
for
some
discussion
in the Colonies
loan
annum.
development
convening
the country
similar
per
of ­
measures.
be t h e
we h a d u n d e r
of
be prepared
for
a s may b e .
some m e a s u r e
the raising
submit,
to
and t h a t
course
the
t o be done
and s t i l l
Development
I
in
soon
going
Conference
am c o n v i n c e d ,
It
for
that
the
on a f i g u r e
times
a large
be a matter
preparations
as
three
of
of
and s e r i o u s n e s s
exceptional
If
before
character
a n d we m u s t
Conference.
b e Work w a i t i n g
announce
a
employ
or
i n a memorandum
the flotation
be undertaken
feeding
£110,000,000
two or
500 y e a r s ,
to
about
of
country
situation
Imperial
would urge
must
is
in principle'should
Special
should
this
last
per head
law r e l i e f ,
remarked
situation
may b e t h a t
approved
somewhere
of Labour
faced
poor
estimate
i s " 3 0 / - p e r head p e r week
unemployed
has only
the lowest
"dole",
and c h a r i t y ,
the present
with
that
u p of
the Minister
ago,
to
think
made
l-g- m i l l i o n
As
I
the
un­
far
country.
*P
It
may b e
that
the
Industrial
deprecating
the
already,
encouraging
by
creation
of
of
industrial
Moreover,
is
my f i r m
create
work d u r i n g
neglect
on too
at
the
narrow
Government
Is
is
no doubt
situation
creation
do
only
on r o a d
work
good
reply
to
the
form,
"Where
It
on major
and drop
to
for
can
I
no
works
take
idea
this
of
Imperial
settlement
-
an
would wish
trade
and
I
entirely
"that
no
question
Commonwealth
of
British
a policy
the
-
of
our
is
will
State
our
question'
or
100,000
their
there
meeting
than
scale.
be h u r l e d
at
us
the
will
the
men.
refusal
effect
of
-
It
1
to
is
advantage
than
we a r e
the
that
I want
on e v e r y
it
the
attached
the
it
a
plat­
Industrial
the
the
for
one
certain
which w i l l
not
contribute
increase
the
of
and
policy
migration
British
-
the
of
in
to
Board
British
the
people
my
opinion
which w i l l
effect
that
in
Dominions.
Transference
territories",
which
.Conservative
an
destiny
needs
scale.
which
of
that
overseas
distribution
stop-gap
own
importance
from
capacity
embark
better
on o u r
benefits
derive
be
to
of
to
large
the
no member
a proper
a purely
would
on a
ignore
for
its
going
exclusively
to
and
so f a t e f u l
as
if
country
have
which
other
one
for
In
ultimately
view
Nations
of
for
Election,
country.
development
wholly
throughout
to
this
minimise
is
to
Liberal
conceive
large
prepared
the
General
50,000
the
suffer
the
attention
stock
stimulation
preferable
in
overseas
the
or
have
advice.
we a r e
and h a s
and w e a l t h ^ p r o d u c i n g
share
their
in
we
with
placing
reconsider
that
Conferences
to
shipping
population
urged
importance
Party
the
be
stand
successive
but
shall
on t h e
right
work?".
relief
concentrate
any
the
which w i l l
doubt
of
for
unemployed
get
the
on a f a i r l y
throughout
question
be
will
to
we
a Labour
injury
employment
unless
to
of
they
more
construction
show
will
should
far
disregarded
if
-
connection
period
result
my c o l l e a g u e s
suitable
a
But
inflict
urge
the
in
seem
but
projects
artificial
makes
we
basis,
will
therefore
embark
a Party
as
may
Board were
employment
that
intervening
This
the
works
workers,
polls.
that
of
artificial
conviction
the
formed
Transference
relief
transference
it
tr:
is
have
infinitely
end*