Baldwinism, Integral Unionism, and Liberalism in the Turbulent British 1930s
Churchillian Austerity Measures resulted in Record Unemployment throughout
Britain
A Worsening Economy left the new Prime Minister Winston Churchill with a enormous challenge. By the time he took to 10 Downing Street in January of 1932, unemployment topped 16% and the streets were littered with beggars, the jobless, and the homeless. The most effected, the Manchester-Liverpool Industrial Area, faced even higher at close to 35% to 50% in some locations. The whole North itself was greatly effected by the collapse; as Overseas and Domestic demand for Industrial Goods dropped in a matter of months. The South yes, was effected, but successful management planning and lesser dependency on Trade, instead of Artisan and Craft Works, allowed for a healthier (relative) economy.
Wanting to end this economic trauma, though, was the top priority for his First Ministry. In the Parliament, Conservative MPs held one more over the majority, yet rebellious MPs effectively made such a reality but a illusion. So he took it up with both Labour and the Liberal Party, both whom rejected his offer, but did not remain a solid unit. Several Labour and Liberal MPs defected, mainly from the Southern Conservative Stronghold, allowing for a working, yet dangerous, majority for the Prime Minister.
Newly Appointed Labour Minister John Baird, Baldwin Era Transport Minister, took to his office with great intent on first, stopping, and then balancing the Debt and the Budget. It was per Churchill's believe that only a balancing of the expenditures and cutting back the National Debt could end the woes caused from previous bad economics. Cutting with his campaign promise of never cutting any MacDonald Epoch Social Program's, within the first months of his Ministry he ordered Baird to propose a new plan to balance the budget within "the new few or so years".
After a Month of Labour on the shoulders of the Minister, with Baird in fact visiting many poverty stricken area's to see the full effects, he put a new document of Churchill's desk. "The Baird Solution" would cut all Government Aid Programs created within the past decade by half, the Sterling would be pegged to Gold not Bullion, set strict guidelines for the amount of spending issued by his administration, and finally kept with Conservative Tradition and offer a high increase in the Tariff Rate to Aid Trade effected Areas.
Churchill approved unanimously on the tenants of the plan. He sent the economic draft to the Parliament, where it received major pressure of removal by a potential Liberal-Labour Coalition against the bill. Labour MP John Potts argued on the floor that the bill "Creates a decisive recipe straight towards economic oblivion", while Liberal MP Percy Harris called the bill "atrocious to the fiscal well-being of the British People". Only the guiding hand of the Conservative House Leader, and successful lobbying for the bill by the Conservative apparatus allowed for it to pass the body by a 350 to 251 margin. Churchill took to the Radio claiming the Depression would soon be over, "I see brighter days Ahead".
Only those bright days never came. It turned out cutting government aid when a large minority was unemployed, and installing a very risky Gold Standard would only worsen fiscal calamity. The unexpected Global Drop in Gold Prices in March of 1933, made the Sterling and Pound virtually worthless. Inflation similar to Early 1920s Germany was seen and multiple instances of bankruptcy in large companies like Wolseley Sheep Shearing and Harrods. And the Government's Austerity measures only increased unemployment, topping at 20% by 1933, and the Gold Standard prevented the stimulation of greater currency supply. The Prime Minister would face new reports showing the calming of the Depression of the Early 1930s coming to a end. In April of 1933 the Bank of England collapsed in interest rates and currency straining filing for bankruptcy, unable to function. Churchill offered a bailing out of the Bank, which passed the Government. The Bank was secured by Early 1935, but the collapse of the Nations Largest and Most Secure Bank took a toll of Churchill's image.
The Unemployed began to riot and it got ugly. Churchill ordered immediate calm and call to put down arms, on the rioters. Churchill suggested these Riots were Socialism Owned and Caused, in a attempt to install a Communist Government similar to Italy and Germany. The British Public en large, fearful of communism and it occurring on the homeland, largely sided between Churchill during this period of riots. When rumors that rioting groups were funded by German and Russian Operatives, justification was used to forcefully break up these groups. Although the rioting, caused large destruction in the nation's city's, it was over and order secured.
Yet Large Food Lines could not be broken up. London by May of 1934, was nearly 45% unemployed, and bread lines stretched for miles. Churchill knew he had too do something, but he thought he own solutions would work. He blamed this on Baird and his "Bad Judgement". He fired him and replaced him with similar Tory Richard Wells. Wells suggested for the re-payment of the former benefit programs to end the nearing 30% unemployment, but said that where Baird got wrong was his struck faith in the Gold Standard. Wells in favor of the former Bullion Standard, disagreed with the Prime Minister sure, but the Prime Minister was desperate for results.
He fully backed his plan and sent it to fellow MPs. Ultimately, the vote was on currency lines. Though nearly all Rebellious Conservative MPs were subdued into supporting it, large numbers of Pro-Bullion Liberals and Labourites bucked for the bill. Enacted, the bill would cut back, unemployed and slightly decrease the effects of the previous order. The Bread Lines were shorter, and the numbers looked better, and Wells was satisfied that he would not be kicked from the Ministry.
Going on with this action, he supported Bi-Partisan legislation in December of 1934 allowing for the Bank to provide low interest rates, and nationalize itself as a self-functioning and Central Bank. Governor Montagu Norman would thus be allowed to end the practice of Commercial Banking in regards to the bank. Yet their forth, the Bank of England would no longer remain independent of the Government, rather it became the Nations Largest Protector of Stability and Fiscal Insurance.
The Bank of England, CIRCLE EARLY 1900s?
Churchill maintained a high head in regards to International Politics. The Bull Dog was known the Isolationist, and meet with the United States President a Record Time, and like the President, he helped centralize the League of Nations as the Central Protector of Western Liberalism and Democracy. He helped successfully increase British payment for the group by the more then 500,000 Pounds, a move criticized for spending badly needed money on a International Governing Organization.
He formed a close alliance with French President André Maginot, securing the "Franco-British European Defense Pact", creating a line of border security, patrolled by member country's military's, along the Nations of Italy, Germany, and only the Soviet Unions Western Border. Poland and Hungary, worried on being surrounded by Communism, joined the pact quickly after news of it circled the World Media. Greece, Spain, Portugal, Denmark, and Finland also joined it.
The Cominterm took this with some caution. Not wanting to start a war, at-least at this time, they refused to however back down. Joseph Stalin and his German and Italian Allies helped secure mixed Army Groups along their borders facing the patrolling Western ones. Tensions were high, and a accident could start a war at any moment, but Churchill thought this was the only way to circle Communism and "Squeeze them off the Continent".
The Irish Free State also plagued his administration. Upon the Statue of Westminister in 1931, the Irish State finally ended any potential British Say in her legislation. But lingering issues over the Irish Government's refusal to continue the reimbursing of Britain with land annuities per the Irish Land Acts. Churchill issued talks failed and his meetings with President Éamon de Valera. De Valera, a ardent Irish Nationalist and Irish Protectionist ordered the British to pay back losses from the Land Commission annunities and pay back alleged over-taxation between 1801 and 1922.
The Prime Minister rejected these offers and in exchange imposed high tariffs on the Free State. The Irish Government did the same, giving a national objective to "Burn everything English except their coal". And when these effects began to impact the British Coal Industry, a major employer in the north, he refused to take such measures. Without a Proper Irish Beef Supply too, the starving lost a major protein supplier. A Coal for Cattle Proposal (ending the conflict by increasing the import of Irish Cattle by a third in return for British Coal) was rejected by the increasingly angry Churchill whom the Irish by now refused to work with.
Irish Protectionism was ensured as a Irish National Policy by De Valera and the British Prime Minister did the same. It effected both country's to some extent, by the Irish Markets would be devastated. Economic Decline in the Country would now trend with the rest of the world and it wasn't until Churchill's departure that British Markets ensured Irish Trade.
The Prime Minister in the meanwhile ordered increase supply from the Commonwealth. Beef from South Africa was ordered at a rate more then 70% more then normal, and raw materials from Canada and India were bought in bulge and in large supply.
Irishmen, CIRCA 1930s?
MacDonald's departure from the Labour Party would be expected after such a defeat. Friend John Sankey and High Ranking Official took up his rains after he left. He would be a uncontroversial leader, mainly because his only actions as Prime Minister was to order his successor's leadership election to be held for February 10th.
The Party lost without MacDonald and without any real message other then to advocate the the preservation of MacDonald Policy's was ripe for the taking. Young Smethwick MP Sir Oswald Mosley declared his intentions to seek the leadership position. Mosley a Former Conservative, turned Independent, took a turn to the Left during the Late 1920s, and won a seat for Labour in Smethwick. What made him different however was his ideology. A well known Nationalist, he become to study the ideology's of Europe disillusioned by both Capitalism and Communism.
Within little time he found the works of Marinetti and Corradini, becoming hooked to their idea of a fusion of Nationalistic Government, a Patriotic Populous, and Corporatism. These ideas were never really used by any Government up to that point. The late Benito Mussolini also espoused such views but he was quickly swindled and imprisoned by the Government.
He ran for Re-Election in his constituency under these new beliefs. He coined a new term, "Unionism", for his beliefs aspiring a British Theme to the mostly Continental Beliefs. Unionism would combine intense Nationalism, Patriotism, Anti-Communism, Isolationism, and Corporatism, with more British Values including the rule of law, and support for Democratic Elections, and overall Republicanism.
His movement quickly caught on. In the Poverty Stricken Populous, his message caught on. He promised to remove known Communistic and Socialistic elements from the Labour Party, in favor of Unionists. He brought large crowds, and spoke with vigor in his traditional Black Shirt to his fellow citizens.
His Unionism however heavily frightened nearly as much people as it inspired. It was called "Un-Democratic", "Un-British", and "Against Liberty". Sankey and other members of the Old Guard disavowed him and refused to accept a victory result for him. The united around George Henry Hall from Aberdare.
Hall whom was a Trade Unionist was plagued by being out campaigned and out-charmed by Mosley. He argued he was the only reasonable choice for his Party. "Mosley would destroy British Liberalism" he said. Mosley would counter these attacks, with for saying them false, and then attacking both the Party Leadership and Hall himself.
Ultimately would decided this leadership election was both the Depression and the Fear of Communism. With Millions Unemployed and Communist Elements said to have infiltrated both Labour and the Country in whole, Mosley easily was painted as the Anti-Communist, while Hall's only half hearted attempts to disavow Socialist Infiltration into the Party painted him as Oswald's opposite. And with the Depression rampant, a MacDonald lackey would not do.
When the Party voted, Unionism had become a rival to the MacDonald Consensus, and to Hall's and Sankey's unknowing, it had become a much more popular ideology then they thought.
Mosley proved somewhat difficult for Churchill during his Ministry. Only real strong agreement came in each others stringent Anti-Communism, but both took different approaches to combating it. Mosley favored a more Non-Interventionist passive fight against Communism, while Churchill made it clear in his intentions that he supported a active fight against the major Communist Nations.
But both were able to come together when Churchill issued Mass Trade Embargoes with Germany, Italy, and the Soviet Union, in the end.
Besides that however, the two men hated each other. Mosley called Churchill a "Imperialist Brute" and a "Short Cow". Churchill in exchange said "Bloodily Un-Liberal" and "Textbook Demagogue". Mosley, during his time as minority leader, commanded his MPs with great power and was quite effective in using the Labour Party as a bloc behind him. He was able to pose a major threat to Conservative Legislation, thus.
But his top priority coming into the last years of the Churchill Ministry was of course, the 1935 Election. With the Conservative Party, and thus their Prime Minister, in a huge ditch after their Baird Plan failed tremendously, Mosley and the Labour Party sensed a pickup for them to be in the making.
He took to the Traditional Labour North, where he was set to boost turnout greatly among the poor and disaffected. He called for a "New Deal" for British Workers, similar to the "Fair Deal" promised by President Teddy Roosevelt Jr., and campaigned on the Social Democratic Premise in Bismarkian style that circumstanced Unionism.
But on the Campaign Trail, he remained as controversial as ever. In a Pit Stop in Chester-le-Street, he said "Vote for Churchill and you give our Country to the Bolsheviks, Vote for Mosley and Every Workingman gets a House and a Job". However he went further, and when asked of the growing Antisemitism surrounding his Unionist Movement, Mosley replied "Well you can't blame then of being suspicious of these Zionists who helped create and lead Communism".
These comments received immense condemnation from the London Press, and although Churchill could of gained from Mosley's declined, it was instead the Liberal's who got the momentum.
After David George left from a very hard internal fight following the depression on the direction the party should take on the issue of trade, it was only George's stable hand who helped unite the party around still vague "Free" Trade ideas. He headed into the 1935 Campaign as yet again the leader of the greatly diminished party, but he did not lose hope. Yet again advocating Full British Employment, the nearing 30% Unemployment of the Country seemed ripe for his message. He called Mosley a "Reactionary Demagogic Twit" and Churchill a "Misguided Turtle over a Misguided Bulldog".
Churchill finally knew he had no chance, he was not a fool. However he believed he could greatly diminish the losses his Party would receive. Although he would be thrown at sticks, food items, and harsher items by the defectors, he promised to greatly expand Welfare Programs, more so then he had attempted in his first ministry, and silenced any mention of continued support for Balanced Budgets (although he still did) after his attempts to do so did not end well.
The ultimate deciding factor though came in the overthrow of the Mexican Government by a Rouge Socialistic Faction in October of 1935. Yet another national fall to Communism put even more a case in the Mosley camp, and although both remained majorly Anti-Communist, Mosley was able to seal the branding of Churchill as a Soft Imperialist to its final extent.
Although the result was expected, Churchill would be humiliated by the amount he lost by.
No Party received a majority. Gains by Oswald Mosley were canceled out by the tremendous gains the Liberal Party received. However nobody have expected the Liberals to jump this high, 79 seats in one election. George was exacerbated on hearing the results saying, "The British People want to be Represented Once Again, as proved tonight!".
Mosley's gains in the North, into Wales, and into the Central South were also impressive. But the beating Churchill would take doomed him from being anything more then a leader of a severely minority party. He pledged to continue to lead the party however, though months after the election, doubts of his ability to win the party another ministry were becoming commonplace among Conservative MPs.
A hung parliament remained in the wake; Labour remaining almost 50 seats short of victory. Another Labour-Liberal Coalition was expected but George made it clear, that neither he, nor a significant number of his Liberal MP colleagues would work with the likes of Oswald.
A Government was finally formed in April of 1935, he he had picked off enough supporters from both the Conservatives and Liberals to form a bare majority. He formed a "National Government", and in his new Ministry, he appointed those of all party backgrounds.
His Pick for Labour however remained close to Mosley governance. For that he choose J.H. Thomas, a Trade Unionist and MP yes, that was well connected to the Labour Old Guard, which was good for uniting the party. Yet he shared many of the same corporatism and statist beliefs as Mosley did.
One of these included Protectionism. A issue that could be shared with both Unionists and Conservatives alike, he was able to sign a first sign of domestic legislation in October of 1936 in the "Common Goods Act", raising the Churchillian (and which Churchill agreed to himself as Conservative Leader) rates to a new flat rate of 76% on all "common and industrial goods" as it was defined.
Thomas would remain as the Labour Minister for a short time however, as the Winter Months of 1936 it was revealed he has secretly concluded with investor speculators thus far, hinting to speculators of upcoming tax rate and fiscal political agenda which could of effected their profits.
Mosley was reportedly outraged by this. "You damn fool. You collude against the people for this long and you feel no remorse" he reported yelled at him in their final cabinet meeting. He would be replaced by more ideologically related 33 year old Abraham Flint from Ilkeston. A later pickup to Unionist philosophy, his choosing reflecting a stark turn of any attempt to please the Greater Labour Party. Neglecting those MPs and ultimatly calling for the Unionist Primary of many Labour MPs who fell defiant in these actions.
The 1937 By-Elections also proved more trouble, with the Liberal Party picking up Glasgow Springburn and Islington North from Labour incumbents.
He tried to switch the direction of Labour troubles towards the now 31.5% unemployment rate. He was able to perform where he did best and would set out of a Autumn 1938 speaking tour advocating a New Deal for Britain including a full nationalization of Public Works, Universal Healthcare, a breakup and dissolution of large financial institutions, and the creation of Government Company's to end the Depression.
It was here were their was most potential for a upbringing of the Prime Minister. But partisan gridlock ultimately got the way of the House. A select few programs of the New Deal including Nationalization of most Public Works and the creation of different State Company's to deal with unemployment, but Conservatives, Liberals, and many Labourites alike refused to work with Mosley. He would say, "They Oppose me so much, they wouldn't care if millions of the streets are starving and in need of work".
The Public would not see his way. He promised a end to unemployment, and three years later, unemployment was stagnant or even higher. And though it may of not been his fault, he was scorned for his inaction.
His Unionism however would live on.
Mosley at a Rally of Supporters with the famous Unionist Lightening Strike Symbol, CIRCA 1937
On the International Stage, he was just as controversial. On first action, he removed all British Troops from Europe, saying "Old Churchill wanted War. I want all British Men and Women to have a live". He also removed all increased funding for the League of Nations then under his predecessor
But he didn't want this to be mistaken for weakness. He ordered a massive increase on internal British Military Forces upgrading a oldening 1920s class of Ships and Planes with new versions in the fight again Communism. He also removed all British Embassies from "Any and all Communist Nations" refusing to recognize it as legitimate. Instead he secretly help support Democratic Forces in the Soviet Union, Germany, and Italy with little success.
He put scrupulous sanctions on all members of the Cominterm (which he declared terrorists) and eventually and all economic contacts. Resources from the vast Russian wilderness and raw materials and luxury goods from all three main European Communist States showed this to be bad economic decision making in a country with a depression. A slight cutback in the economy was shown following this decision in the Spring of 1937, but Mosley called for "Complete, and Utter, self dependence and alliance against all communist threats that seek to destroy us".
A most lasting impact though was his reforms of internal security. A area where he called Churchill weak, he feared and thought that massive infiltration on all levels of Government had taken place by the Soviets, Germans, and Italians. He would fire all previous members he thought were connected to Berlin, Moscow, or Rome, and was able to pass the Internal Defense Department, whose main aim was to defeat all "forces that aim to overthrow the British way of life". In reality, it mainly dealt with communist threats, and although greatly diminished by Liberal MPs refusing to vote otherwise, it still held much power, effectively re-organizing the British Policing Services around it. And it would get to work quickly, arresting up to 500 alleged Communist agents by 1939. Some Liberals, Labourites, and Conservatives alike showed bi-partisan condemnation, but the agency would remain popular, and a crown achievement of the Premiership.
The issue of the British Communist Party, though, plagued the new agency. It was known, that the small party allied itself with Soviet forces, but it was not known if they had received funding. A long 2 year audit into the Party by the I.D.D, proved mysterious results, and on the orders of the Prime Minister, the Party was officially labeled treasonous for "connections to Anti-British to Communistic World Organizations and States including the Union of Soviet Socialist Republics". Top Leadership were latter arrested for not complying with the decision.
Top Party Leader John Gollan, however, refused to go down without a fight. After appealing upon the judiciary, of the House of Lords, he was accepted arguing that the expansive powers of the I.D.D were unconstitutional and that the Communist Party be reinstated.
The ultimate ruling was already widely known before it was told, and the Court ruled in favor of the Government, arguing that the "Communist Party of Britain used treasonous funds from a foreign country, a right not protected in the British Constitution". So the party was banned, and Gollan himself would be arrested for unrelated causes.
Public opinion seemed content with these actions and Mosley declared in 1940, "The Era of Fear of ones neighbor is over". Indeed, a new era of domestic surveillance reign over the United Kingdom.
Communist Demonstration in England, CIRCA 1928
Constitutional Crisis would come in November of 1936. After the Death of Long Reigning Monarch George V, who helped Britain through the chaos of the Great War and Political Turmoil, he was succeeded by his eldest son Edward VIII.
Edward VIII would be far from orthodox. For one, he flew in on a plane into his Accession Council, and for another he took to a far more activist role then constitutional powers provided for him. He scorned the high unemployment and would visit coal miners, unemployed by the Depression, in South Wales. "Something must be done" he said of his visit. He wanted to modernize the Monarchy and for this, Traditionalists scorned him.
But the real cause to the constitutional crisis was in fact his declaration of marriage to Wallis Simpson on November 16th, 1936. Simpson, a American Socialite had a history of divorce, divorcing her first husband and in the process of her second. And Divorce was a unacceptable term to the British Moral Establishment.
Speculation came from all over. The Church of England condemned her past marriages, social and moral leaders refused to accept such infidelity, while Politicians balanced on a fin plate. Prime Minister Mosley for one, came out with a controversial decision to support the Monarch, along with Liberal Leader David George. Both arguing on grounds that, though Simpson was not perfect, the monarchy must be reformed. "Edward, i just to tell you, these absurd provision set out by this moral establishment would fail nearly all British men if they were applied to it" he said in a private phone call to the King.
The fate of the new king rested in the balance. Three main ideas for his future dawned: They Marry and She becomes Queen, they Marry but she takes on a courtesy title, or his abdicate. And when the main leaders of the Commonwealth were consulted on the manner, they choose the 3rd option.
In the most vocal monarchy supporting party, the Conservatives, opinion remained split. Former Prime Minister Stanley Baldwin came out in support of abdication and his follower MPs followed him. But he was opposed by the Minority Leader Winston Churchill.
Support for the King nationwide, was split as well, with the Upper Classes holding disdain while the lower classes and workingmen liking his activist role and concern for the downtrodden. And although, calls were made for the Prime Minister to remain inactive in the ensuing crisis, Mosley refused backing publicly the King, calling of him to the House "In our Changing World, he cares for the Common-man while respecting Kingship. He is a True King and deserves to keep his thrown".
After nearly a month of speculation, Edward VIII made his decision, stating over the radio approved by the Prime Minister "Calls for me to remove myself from the post of King have been deepening over the last month, and i want to say to all the good workingmen of this country, i refuse to bow down to their calls. I refuse to allow the Monarchy to be sedated in old ideas of right and wrong; our modernizing world deserves a British King who experiences the same condition the poorest of us go through daily. So to Mr. Baldwin, the the Ministers at the Church of England, and to many of the Moral Establishmentarrians who refuse to be lead by myself, i say i will continue my duty's as King of the British Empire".
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On August 19th, 1938, Old Liberal Lion David Lloyd George resigned from his long held leadership position over concerns of his old age.
A followup leadership election remained in the hands of the Georgist faction of the Liberal Party, with close friend and Herfeford MP Frank Owen getting the nod under a standard Full Employment and Vague Trade Stance Policy.
Oswald Mosley passed a upward battle in the 1940 Election, trying to explain away his promises that never came to fruition. Unemployment still high up in the 25% range and relative inaction ran against Mosley high ideas for a New Deal. His passionate and full-hearted speeches still brought large crowds and cheers, but momentum was being sucked from him into the Liberal Party, Owen gaining as equal a amount or more of excitement as Mosley.
His style was much similar to Mosley, claiming the British Elite had destroyed the British Working-class, and offering a wide range of programs and ideas to end the high unemployment. And many of these were connected to the New Deal, Owen's offering Universal Healthcare, New Works Programs, Mining and Farming subsidy's, mostly Free Trade stances to open up British Markets, and a plan to end Unemployment by 1950 with a "car in every house".
Mosley could not attack Owen for such implausible idea's as he himself had proposed many of those planks. Instead, Churchill was the one offering a return to "Fiscal Sanity", Balanced Budgets, and a New Emphasis on Work.
But what dominated the Election was the increasing luminous threat of War from the Cominterm. Soviet Troops marching along the Border and German-Italian Forces being prepared, for what seemed like war. Mosley offered a new policy of aggression against this, but it ran counter to his non-interventionism. Churchill offered a restoration of the European Anti-Communist network weakened by Mosley, but Owen provided the country with a worried and weary country. "We must remain vigilant against the Cominterm at all Times, but we must remain cautious and humane as well" he said on the campaign.
And it was this platform that flung the Liberals to a Historic Night.
Becoming the first Liberal Leader to achieve a plurality or majority of seats since George himself in 1916-1922, the result shocked the country larger then 5 years ago.
Mosley's Labour was reduced to a minority party losing 57 seats, while Churchill experienced modest loses, but the winner proved the Liberals who gained 81 seats and plurality leader status overnight.
Celebrations could be heard at Liberal Camps nationwide.