Photograph: Londoners read the news of the Wall Street Crash in dismay.
October 30 1929
In the wake if its current financial crisis, the United States has recalled their loans to Germany, putting an end to the Dawes plan (1924) and leaving the Allies without payment. President Hoover has also placed restrictions and tariffs on imports. These restrictions are likely to heavily reduce demand for British goods overseas, as they will become extremely expensive. Without the revenue from exporting steel and other building materials, Britain will face economic turmoil.
The Dawes Plan, which was created by The Allied Reparations Commission, involved the US loaning to Germany so they are able to meet their reparations as agreed in The Treaty of Versailles. With America retracting these loans, Germany will face a crisis, rendering them unable to pay.
Prime Minister MacDonald stands firm on his promise to maintain a balanced budget at any cost. This could mean cut welfare benefits or unemployment for many English men and women.