on holders of National Debt and other investments with fixed interests. Response In response to the Report the Cabinet appointed an economy committee with the Prime Minister Ramsay MacDonald, Snowden, Foreign Secretary Arthur Henderson, Lord Privy Seal James Henry Thomas and President of the Board of Trade William Graham as its members. Although the first meeting of this committee was due to meet on 25 August, MacDonald's holiday was interrupted on 11 August by a message from bankers that there was a run on the pound. The whole Cabinet discussed what to do from 20 August until on 24 August they could not reach a consensus on whether to cut unemployment benefits to ensure a balanced budget. Nine Cabinet members would resign if this was carried through, with the rest (11) not dissenting. The acting leader of the Liberals, Herbert Samuel, suggested a National Coalition Government headed by MacDonald, with Conservative leader Stanley Baldwin agreeing. Therefore, on 24 August a National Government headed by MacDonald came into being, a consequence of which was to split the Labour Party. Notes Great Depression in the United Kingdom Economic history of the United Kingdom 1931 in the United Kingdom July 1931 events 1931 in British politics