"It is always difficult for an administration or party which is founded upon attacking capital to preserve the confidence and credit so important to the highly artificial economy of an island like Britain. Mr. MacDonald’s Labour-Socialist Government were utterly unable to cope with the problems which confronted them. They could not command the party discipline or produce the vigour necessary even to balance the budget. In such conditions a Government, already in a minority and deprived of all financial confidence, could not survive. The failure of the Labour Party to face this tempest, the sudden collapse of British financial credit, and the break-up of the Liberal Party, with its unwholesome balancing power, led to a national coalition. It seemed that only a Government of all parties was capable of coping with the crisis. Mr. MacDonald and his Chancellor of the Exchequer, on a strong patriotic emotion, attempted to carry the mass of the Labour Party into this combination. Mr. Baldwin, always content that others should have the function so long as he retained the power, was willing to serve under Mr. MacDonald. It was an attitude which, though deserving respect, did not correspond to the facts. Mr. Lloyd George was still recovering from an operation – serious at his age; and Sir John Simon led the bulk of the Liberals into the all-party combination."