'Very Peculiar Circumstances': Walter Runciman and the National Government, 1931-3

Walter Runciman's role in the crisis of 1931 and its aftermathis not as well known as those of his Liberal contemporaries,Samuel and Simon. It was, however, at least as important indetermining the outcome. Runciman was not a member of the firstNational Cabinet of August 1931, but he reluctantly acceptedthe Board of Trade, on flattering terms, in November. Highlyregarded by MacDonald, he developed an effective working andpersonal relationship with Neville Chamberlain, and togetherthey shaped the government's tariff policy. It was a compromisethat ensured the long-term survival of the National Governmentand defined the fiscal policy that would replace free trade.Runciman remained convinced throughout his years in office thathe was remaining true to Liberal principles—using tariffbargaining to reduce the general level of tariffs—andthat the national crisis and the changing economic climate justifiedhis compromise with the Conservatives. ¹ I am grateful to my colleagues, Professor Bill Luckin andDr Gaynor Johnson, and to Dr David Dutton, for their commentswhile this article was being written. The quotation in the titleis from Lord Shuttleworth to Runciman, 18 November 1935, RuncimanPapers, Robinson Library, University of Newcastle-upon-Tyne.WR221