National Government Economic Problems

National Government Economic Problems

1. Strikes

   • Invergordon Mutiny September 1931 when 12,000 sailors from fifteen ships of Atlantic fleet, moored at Invergordon in Scotland and declared that they would disobey orders in protest of the scheduled cuts put forward by May Report in service pay.
     • Cuts were maintained but organisers were jailed and 200 sailors discharged from service, and a further 200 from elsewhere in the navy accused of attempting similar incident were purged. However, caused panic on London Stock Exchange and forced it off Gold Standard 20 September 1931.
   • Jarrow Crusade 1936 when Palmer's shipyard closed so 200 unemployed men from South Tyneside shipbuilding town marched 300 miles to London to petition parliament in the hope of government intervention to save town and workforce. March took 25 days, petition signed by 11,000. PM would not receive deputation, claiming he was too busy.
     • A ship-breaking yard and engineering works were established in 1938 in Jarrow, but depression continued until during war when industry prospered due to need of rearmament.

2. Trade

   • After Wall St. Crash, world trade shrank and demand for British exports fell by third in volume and by half in value by 1932. Did not fully recover till 1937.
   • Cotton exports 1932 total output was less than half of 1913 figure. Coal output declined by 30 million tonnes. Shipbuilding launched million tonnes of new shipping each year in 1920's but produced only 133,000 tonnes 1933.

3. Internal

   • 47% steel workers unemployed. 60% in shipbuilding.