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Churchill's First Budget and the General Strike In 1925 Baldwin was once more Prime Minister. He made Churchill, Chancellor of the Exchequer - not Churchill's spiritual home but Baldwin wanted to keep him happy and busy, he saw Churchill as a possible threat. In his first budget Churchill returned Britain to the Gold Standard. This effectively made the pound too strong - Churchill had little understanding of what this might mean. Keynes among many others did, foreseeing the economic problems that were to face Britain in the Thirties. 1926 saw a crisis in the coal industry. The pits badly needed modernising but they were privately owned and the Government had no intention of subsidising them. The miners' union also wanted shorter hours and higher wages. After an attempt at negotiation the TUC called a general strike. Baldwin accused the TUC of political anarchy. The TUC backed down after only eight days of striking. The miners stayed out for another six months. On their return to work they had to accept lower wages and work longer hours.
"The General Council, with the full approval and co- operation of the accredited representatives of the trade unions, has been compelled to organise united resistance to the attempt to enforce a settlement of the mining problem at the expense of the miners wages. At a special conference of trade union executives on Thursday, Friday and Saturday last, measures were taken by the General Council to bring about a stoppage of work in the transport services, the printing trades, and certain productive industries. "Unless a settlement, which the representatives of the Trades Union Congress can recommend the miners to accept, is reached before midnight on Monday the workers in these essential industries will be withdrawn. The trade unions disclaim all responsibility for the calamity that now threatens. Their action is not directed against the public. Responsibility for the consequences that must inevitably follow a general cessation of work lies with the mine-owners and the government entirely."
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