MR J Parker (Letters, November 10) made some disparaging remarks about the first Labour Cabinet of 1924, saying that it needed the Liberal members due to the lack of ability of the working-class Labour members.

Now, (Letters, November 26) in answer to my contribution (Letters, November 17) he at last gets the point - the need was mutual. As for his criticism of Philip Snowden, the first Labour Chancellor of the Exchequer, let me make a number of points.

The return to the Gold Standard in 1925 at the 1914 parity was a recommendation of the Cunliffe Committee.

When Snowden took over the Treasury in 1924 he was an instant success. His first budget got the support of all sides of the 'House.' His actions from 1930 to his leaving office in September 1931 were determined by the world depression and the crisis amongst the City of London Banks.

The latter having got themselves in a mess had to be rescued by the Government. The May report on the British economy, caused a panic amongst foreign investors who started to withdraw gold from the Bank of England, at an alarming rate. Snowden tried to balance the national books, hence the cut in unemployment benefit find the career of Philip Snowden remarkable, taking into account the fact that he left school at 13.

G SCHOFIELD (MR), Swallow Drive, Blackburn.

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