Creation of The Organisation
In December, MacDonald's private secretary Herbert Usher wrote a long memorandum asking key questions about what type of ongoing organisation was needed. Usher stated that MacDonald needed to answer three crucial questions: first, whether he wanted to form a new party; second, whether he envisaged returning to the Labour Party, and third, whether the National Government would continue for a long time and produce a single party of the centre. Usher argued that it was not possible to create a distinctive National Labour Party because any distinctive policy would threaten the unity of the National Government coalition. He also contended that MacDonald could not return to the Labour Party which harboured extreme bitterness about the manner in which the National Government was formed. Usher concluded that the public favoured a large centrist party but that existing political organisations would not permit it.
Early in 1932 a constitution and organisation was established and the monthly "News-Letter" set up for supporters which was edited by Clifford Allen. An editorial in the first edition written by Allen emphasised that the News-Letter was "intended to be a means of contact between Labour supporters of the National Government" but also "begs the attention of public opinion." The editorship was later taken by Godfrey Elton; both Allen and Elton received peerages from MacDonald. In September 1932, William Spofforth (formerly the Labour Party agent in Westhoughton) was appointed as secretary.
Philip Snowden, who as Chancellor of the Exchequer had been second only to MacDonald in becoming a prominent Labour member of the National Government, remained nominally one of the National Labour cabinet members after the election having received a Peerage. However Snowden rejected an invitation from Clifford Allen to write for the News-Letter, replying scathingly and declaring that "I really do not understand this National Labour Party". When Snowden resigned from the Government in opposition to the protectionist outcome of the Ottawa Conference in September 1932, he declared that he no longer had any party allegiance.
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