1.1 Labour government was accused of influencing the withdrawal of
journalist J.R. Campbell's prosecution for encouraging troops to
mutiny if they were called upon to fire at striking workers.
1.2 Many saw this as Labour having connections with Communism.
1.3 MacDonald's failure to deal effectively with this was
the last straw and he resigned.
2 Zinoviev Letter
2.1 A letter from Grigor Zinoviev, chief of the Comintern,
addressing the British Communist party to infiltrate the
Labour party and bring down the British state, was
printed in the Daily Mail four days before general
election after MacDonald's resignation.
2.2 Historians believe this letter to have been forged.
2.3 Labour had drawn up Anglo-Russian Treaty in which Britain agreed to
advancing £30 million loan to the Soviet Union. This made people
believe that Labour was too close to Communist Russia, and Zinoviev
letter obviously fuelled this fear.
3 Minority Government
3.1 Could only pass limited legislation rather than making radical
changes, eg. restrictions on unemployment benefit were
eased and more public funds directed to education.
3.2 Wheatley's Housing Act 1924 was passed to develop
Chamberlain's scheme. The subsidy paid per
property increased to £9 and annual payment to local
councils was extended to 40 years. Successful, by
1933 1/2 million council houses built.
3.3 MacDonald persuaded France and Germany to move towards a settlement of the reparations issue.
Before, France demanded Germany pay full original amount settled at Treaty of Versailles, but Germany
felt this was impossible. Dawes Plan lowered reparations and allowed a period of 5 years over which it
was to be paid. Yet as the Dawes Plan was not agreed until 1925, MacDonald was not credited for his