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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..6833f05 --- /dev/null +++ b/.gitattributes @@ -0,0 +1,3 @@ +* text=auto +*.txt text +*.md text diff --git a/15681-8.txt b/15681-8.txt new file mode 100644 index 0000000..43eae5c --- /dev/null +++ b/15681-8.txt @@ -0,0 +1,2195 @@ +The Project Gutenberg EBook of Constructive Imperialism, by Viscount Milner + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Constructive Imperialism + +Author: Viscount Milner + +Release Date: April 22, 2005 [EBook #15681] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK CONSTRUCTIVE IMPERIALISM *** + + + + +Produced by Jonathan Ingram, Jeannie Howse and the Online Distributed +Proofreading (https://www.pgdp.net). + + + + + +[Transcriber's Note: Two advertisements from the beginning of the book +have been moved to the end.] + + * * * * * + + + + + CONSTRUCTIVE + IMPERIALISM + + BY + + VISCOUNT MILNER, G.C.B. + + FIVE SPEECHES + + DELIVERED AT + TUNBRIDGE WELLS (OCTOBER 24, 1907) + GUILDFORD (OCTOBER 29, 1907) + EDINBURGH (NOVEMBER 15, 1907) + RUGBY (NOVEMBER 19, 1907) + AND OXFORD (DECEMBER 5, 1907) + + + LONDON + THE NATIONAL REVIEW OFFICE + 23 RYDER STREET, ST. JAMES'S + 1908 + + * * * * * + + + + +CONTENTS + + + PAGE + +TARIFF REFORM (TUNBRIDGE WELLS) 7 + +A CONSTRUCTIVE POLICY (GUILDFORD) 34 + +UNIONISTS AND THE EMPIRE (EDINBURGH) 50 + +UNIONISTS AND SOCIAL REFORM (RUGBY) 69 + +SWEATED INDUSTRIES (OXFORD) 88 + + * * * * * + + + + +TARIFF REFORM + +Tunbridge Wells, October 24, 1907 + + +As this is a Tariff Reform meeting pure and simple, I am anxious not +to approach the subject in any party spirit or in any spirit of +acrimonious controversy. The question is a difficult and complicated +one, and though I am a strong Tariff Reformer myself I hope I am not +incapable of seeing both sides of the case. I certainly should have +reason to be ashamed if I could not be fair to those whom, for the +sake of brevity and convenience, I will call Free Traders, though I do +not altogether admit the correctness of that designation. My views +were once the same as theirs, and though I long ago felt constrained +to modify them, and had become a Tariff Reformer some years before the +subject attained its present prominence in public discussion, it would +ill become me to treat as foolish arguments which I once found so +convincing or to vilify opinions which I once honestly shared. + +What has happened to me is what I expect has happened to a good many +people. I still admire the great Free Trade writers, the force of +their intellect, the lucidity of their arguments. There can be no +clearer proof of the spell which they exercised over the minds of +their countrymen than the fact that so many leading public men on both +sides of politics remain their disciples to this very day. But for my +own part I have been unable to resist the evidence of facts which +shows me clearly that in the actual world of trade and industry things +do not work out even approximately as they ought to work out if the +Free Trade theory were the counsel of perfection which I once thought +it. And that has led me to question the theory itself, and so +questioned it now seems to me far from a correct statement of the +truth, even from the point of view of abstract inquiry. But I am not +here to engage in abstract arguments. What I want to do is to look at +the question from a strictly practical point of view, but at the same +time a very broad one. I am anxious to bring home to you the place of +Tariff Reform in a sound national policy, for, indeed, it seems to me +very difficult to construct such a policy without a complete revision +of our fiscal arrangements. Now a sound national policy has two +aspects. There are two great objects of practical patriotism, two +heads under which you may sum it up, much as the Church Catechism sums +up practical religion, under the heads of "duty to God" and "duty to +your neighbour." These objects are the strength of the Empire, and the +health, the well-being, the contentedness of the mass of the people, +resting as they always must on steady, properly organised, and fairly +remunerated labour. Remember always, these two things are one; they +are inseparable. There can be no adequate prosperity for the forty or +fifty million people in these islands without the Empire and all that +it provides; there can be no enduring Empire without a healthy, +thriving, manly people at the centre. Stunted, overcrowded town +populations, irregular employment, sweated industries, these things +are as detestable to true Imperialism as they are to philanthropy, +and they are detestable to the Tariff Reformer. His aim is to improve +the condition of the people at home, and to improve it concurrently +with strengthening the foundations of the Empire. Mind you, I do not +say that Tariff Reform alone is going to do all this. I make no such +preposterous claim for it. What I do say is that it fits in better +alike with a policy of social reform at home and with a policy +directed to the consolidation of the Empire than our existing fiscal +system does. + +Now, what is the essential difference between Tariff Reformers and the +advocates of the present system? I must dwell on this even at the risk +of appearing tiresome, because there is so much misunderstanding on +the subject. In the eyes of the advocates of the present system, the +statesman, or at any rate the British statesman, when he approaches +fiscal policy, is confronted with the choice of Hercules. He is +placed, like the rider in the old legend, between the black and the +white horseman. On the one hand is an angel of light called Free +Trade; on the other a limb of Satan called Protection. The one is +entirely and always right; the other is entirely and always wrong. +All fiscal wisdom is summed up in clinging desperately to the one and +eschewing like sin anything that has the slightest flavour of the +other. Now, that view has certainly the merit of simplicity, and +simplicity is a very great thing; but, if we look at history, it does +not seem quite to bear out this simple view. This country became one +of the greatest and wealthiest in the world under a system of rigid +Protection. It has enjoyed great, though by no means unbroken, +prosperity under Free Trade. Side by side with that system of ours +other countries have prospered even more under quite different +systems. These facts alone are sufficient to justify the critical +spirit, which is the spirit of the Tariff Reformer. He does not +believe in any absolute right or wrong in such a matter as the +imposition of duties upon imports. Such duties cannot, he thinks, be +judged by one single test, namely, whether they do or do not favour +the home producer, and be condemned out of hand if they do favour him. + +The Tariff Reformer rejects this single cast-iron principle. He +refuses to bow down before it, regardless of changing circumstances, +regardless of the policy of other countries and of that of the other +Dominions of the Crown. He wants a free hand in dealing with imports, +the power to adapt the fiscal policy of this country to the varying +conditions of trade and to the situation created at any given time by +the fiscal action of others. He has no superstitious objection to +using duties either to increase employment at home or to secure +markets abroad. But on the other hand he does not go blindly for +duties upon foreign imports as so-called Free Traders go blindly +against them, except in the case of articles not produced in this +country, some of which the Free Traders are obliged to tax +preposterously. Tariff Reform is not one-ideaed, rigid, inelastic, as +our existing system is. Many people are afraid of it, because they +think Tariff Reformers want to put duties on foreign goods for the fun +of the thing, merely for the sake of making them dearer. Certainly +Tariff Reformers do not think that cheapness is everything. Certainly +they hold that the blind worship of immediate cheapness may cost the +nation dear in the long run. But, unless cheapness is due to some +mischievous cause, they are just as anxious that we should buy cheaply +as the most ardent Cobdenite, and especially that we should buy +cheaply what we cannot produce ourselves. Talking of cheapness, +however, I must make a confession which I hope will not be +misunderstood by ladies present who are fond of shopping--I wish we +could get out of the way of discussing national economics so much from +the shopping point of view. Surely what matters, from the point of +view of the general well-being, is the productive capacity of the +people, and the actual amount of their production of articles of +necessity, use, or beauty. Everything we consume might be cheaper, and +yet if the total amount of things which were ours to consume was less +we should be not richer but poorer. It is, I think, one of the first +duties of Tariff Reformers to keep people's eyes fixed upon this vital +point--the amount of our national production. It is that which +constitutes the real income of the nation, on which wages and profits +alike depend. + +And that brings me to another point. Production in this country is +dependent on importation, more dependent than in most countries. We +are not self-supplying. We must import from outside these islands vast +quantities of raw materials and of the necessaries of life. That, at +least, is common ground between the Free Trader and the Tariff +Reformer. But the lessons they draw from the fact are somewhat +different. The Free Trader is only anxious that we should buy all +these necessary imports as cheaply as possible. The Tariff Reformer is +also anxious that we should buy them cheaply, but he is even more +anxious to know how we are going to pay for all this vast quantity of +things which we are bound to import. And that leads him to two +conclusions. The first is that, seeing how much we are obliged to buy +from abroad in any case, he looks rather askance at our increasing our +indebtedness by buying things which we could quite easily produce at +home, especially with so many unemployed and half-employed people. The +other, and this is even a more pressing solicitude to him, is that it +is of vital importance to us to look after our external markets, to +make sure that we shall always have customers, and good customers, to +buy our goods, and so to enable us to pay for our indispensable +imports. The Free Trader does not share this solicitude. He has got a +comfortable theory that if you only look after your imports your +exports will look after themselves. Will they? The Tariff Reformer +does not agree with that at all. Imports no doubt are paid for by +exports, but it does not in the least follow that by increasing your +dependence on others you will necessarily increase their dependence on +you. It would be much truer to say: "Look after the exports and the +imports will look after themselves." The more you sell the more you +will be able to buy, but it does not in the least follow that the more +you buy the more you will be able to sell. What business man would go +on the principle of buying as much as possible and say: "Oh, that is +all right. I am sure to be able to sell enough to pay for it." The +first thought of a wise business man is for his markets, and you as a +great trading nation are bound to think of your markets, not only your +markets of to-day but of to-morrow and the day after to-morrow. + +The Free Trade theory was the birth of a time when our imports were +practically all supplemental to our exports, all indispensable to us, +and when, on the other hand, the whole of the world was in need of our +goods, far beyond our power of supplying it. Since then the situation +has wholly altered. At this actual moment, it is true, there is +temporarily a state of things which in one respect reproduces the +situation of fifty years ago. There is for the moment an almost +unlimited demand for some of our goods abroad. But that is not the +normal situation. The normal situation is that there is an increasing +invasion of our markets by goods from abroad which we used to produce +ourselves, and an increasing tendency to exclude our goods from +foreign markets. The Tariff Reform movement is the inevitable result +of these altered circumstances. There is nothing artificial about it. +It is not, as some people think, the work of a single man, however +much it may owe to his genius and his courage, however much it may +suffer, with other good causes, through his enforced retirement from +the field. It is not an eccentric idea of Mr. Chamberlain's. Sooner or +later it was bound to come in any case. It is the common sense and +experience of the people waking up to the altered state of affairs, +beginning to shake itself free from a theory which no longer fits the +facts. It is a movement of emancipation, a twofold struggle for +freedom--in the sphere of economic theory, for freedom of thought, in +the sphere of fiscal policy, for freedom of action. + +And that freedom of action is needed quickly. It is needed now. I am +not doubtful of the ultimate triumph of Tariff Reform. Sooner or +later, I believe, it is sure to achieve general recognition. What does +distress me is the thought of the opportunities we are losing in the +meantime. This year has been marked, disastrously marked, in our +annals by the emphatic and deliberate rejection on the part of our +Government of the great principle of Preferential Trade within the +Empire. All the other self-governing States are in favour of it. The +United Kingdom alone blocks the way. What does that mean? What is it +that we risk losing as long as we refuse to accept the principle of +Preferential Trade, and will certainly lose in the long run if we +persist in that refusal? It is a position of permanent and assured +advantage in some of the greatest and most growing markets in the +world. Preference to British goods in the British dominions beyond the +sea would be a constant and potent influence tending to induce the +people of those countries to buy what they require to buy outside +their own borders from us rather than from our rivals. It means beyond +all doubt and question so much more work for British hands. And the +people of those countries are anxious that British hands should get +it. They have, if I may so express myself, a family feeling, which +makes them wish to keep the business within the family. But business +is business. They are willing to give us the first chance. But if we +will give nothing in return, if we tell them to mind their own +business and not to bother us with offers of mutual concessions, it is +only a question of time, and the same chance will be given to others, +who will not refuse to avail themselves of it. + +You see the beginning of the process already in such an event as the +newly-concluded commercial treaty between Canada and France. If we +choose, it is still possible for us not only to secure the preference +we have in Colonial markets, but to increase it. But if we do nothing, +commercial arrangements with other nations who are more far-sighted +will gradually whittle that preference away. To my mind the action of +Canada in the matter of that treaty, perfectly legitimate and natural +though it be, is much more ominous and full of warning to us than the +new Australian Tariff, about which such an unjustifiable outcry has +been made. Rates of duty can be lowered as easily as they can be +raised, but the principle of preference once abandoned would be very +difficult to revive. I am sorry that the Australians have found it +necessary in their own interests to raise their duties, but I would +rather see any of the British Dominions raise its duties and still +give a preference to British goods than lower its duties and take away +that preference. Whatever duties may be imposed by Canada, Australia, +or the other British Dominions, they will still remain great +importers, and with the vast expansion in front of them their imports +are bound to increase. They will still be excellent customers, and the +point is that they should be our customers. + +In the case of Australia the actual extent of the preference accorded +to British goods under the new tariff is not, as has been represented, +of small value to us. It is of considerable value. But what is of far +more importance is the fact that Australia continues to adhere to the +principle of Preference. Moreover, Australia, following the example of +Canada, has established an extensive free list for the benefit of this +country. Let nobody say after this that Australia shows no family +feeling. I for one am grateful to Australia, and I am grateful to that +great Australian statesman, Mr. Deakin, for the way in which, in the +teeth of discouragement from us, he has still persisted in making the +principle of preferential trade within the Empire an essential feature +of the Australian Tariff. + +Preference is vital to the future growth of British trade, but it is +not only trade which is affected by it. The idea which lies at the +root of it is that the scattered communities, which all own +allegiance to the British Crown, should regard and treat one another +not as strangers but as kinsmen, that, while each thinks first of its +own interests, it should think next of the interests of the family, +and of the rest of the world only after the family. That idea is the +very corner-stone of Imperial unity. To my mind any weakening of that +idea, any practical departure from it, would be an incalculable loss +to all of us. I should regard a readjustment of our own Customs duties +with the object of maintaining that idea, even if such readjustment +were of some immediate expense to ourselves, as I hope to show you +that it would not be, as a most trifling and inconsiderable price to +pay for a prize of infinite value. I am the last man to contend that +preferential trade alone is a sufficient bond of Empire. But I do +contend that the maintenance or creation of other bonds becomes very +difficult, if in the vitally important sphere of commerce we are to +make no distinction between our fellow-citizens across the seas and +foreigners. Closer trade relations involve closer relations in all +other respects. An advantage, even a slight advantage, to Colonial +imports in the great British market would tend to the development of +the Colonies as compared with the foreign nations who compete with +them. But the development of the British communities across the seas +is of more value to us than an equivalent development of foreign +countries. It is of more value to our trade, for, if there is one +thing absolutely indisputable, it is that these communities buy ever +so much more of us per head than foreign nations do. But it is not +only a question of trade; it is a question of the future of our +people. By encouraging the development of the British Dominions beyond +the seas we direct emigration to them in preference to foreign lands. +We keep our people under the flag instead of scattering them all over +the world. We multiply not merely our best customers but our fellow +citizens, our only sure and constant friends. + +And now is there nothing we can do to help forward this great object? +Is it really the case, as the Free Traders contend, that in order to +meet the advances of the other British States and to give, as the +saying is, Preference for Preference, we should be obliged to make +excessive sacrifices, and to place intolerable burdens on the people +of this country? I believe that this is an absolute delusion. I +believe that, if only we could shake off the fetters of a narrow and +pedantic theory, and freely reshape our own system of import duties on +principles of obvious common sense, we should be able at one and the +same time to promote trade within the Empire, to strengthen our hands +in commercial negotiations with foreign countries, and to render tardy +justice to our home industries. + +The Free Trader goes on the principle of placing duties on a very few +articles only, articles, generally, of universal consumption, and of +making those duties very high ones. Moreover, with the exception of +alcohol, these articles are all things which we cannot produce +ourselves. I do not say that the system has not some merits. It is +easy to work, and the cost of collection is moderate. But it has also +great defects. The system is inelastic, for the duties being so few +and so heavy it is difficult to raise them in case of emergency +without checking consumption. Moreover, the burden of the duties +falls entirely on the people of this country, for the foreign +importer, except in the case of alcoholic liquors, has no home +producer to compete with, and so he simply adds the whole of the duty +to the price of the article. Last, but not least, the burden is +inequitably distributed. It would be infinitely fairer, as between +different classes of consumers, to put a moderate duty on a large +number of articles than to put an enormous duty on two or three. But +from that fairer and more reasonable system we are at present debarred +by our pedantic adhesion to the rule that no duty may be put on +imported articles unless an equivalent duty is put on articles of the +same kind produced at home. Why, you may well ask, should we be bound +by any such rule? I will tell you. It is because, unless we imposed +such an equivalent duty, we should be favouring the British producer, +and because under our present system every other consideration has got +to give way to this supreme law, the "categorical imperative" of the +Free Trader, that we must not do anything which could by any +possibility in the remotest degree benefit the British producer in +his competition with the foreigner in our home market. It is from the +obsession of this doctrine that the Tariff Reformer wishes to liberate +our fiscal policy. He approaches this question free from any doctrinal +prepossessions whatever. Granted that a certain number of millions +have to be raised by Customs duties, he sees before him some five to +six hundred millions of foreign imports on which to raise them, and so +his first and very natural reflection is, that by distributing duties +pretty equally over this vast mass of imported commodities he could +raise a very large revenue without greatly enhancing the price of +anything. Our present system throws away, so to speak, the advantage +of our vast and varied importation by electing to place the burden of +duties entirely on very few articles. As against this system the +Tariff Reformer favours the principle of a widespread tariff, of +making all foreign imports pay, but pay moderately, and he holds that +it is no more than justice to the British producer that all articles +brought to the British market should contribute to the cost of +keeping it up. It is no answer to say that it is the British consumer +who would pay the duty, for even if this were invariably true, which +it is not, it leaves unaffected the question of fair play between the +British producer and the foreign producer. The price of the home-made +article is enhanced by the taxes which fall upon the home makers, and +which are largely devoted to keeping up our great open market, but the +price of the foreign article is not so enhanced, though it has the +full benefit of the open market all the same. Moreover, the price of +the home-made article is also enhanced by the many restrictions which +we place, and rightly place, on home manufacture in the interests of +the workers--restrictions as to hours, methods of working, sanitary +conditions, and so forth--all excellent, all laudable, but expensive, +and from which the foreign maker is often absolutely, and always +comparatively, free. The Tariff Reformer is all for the open market, +but he is for fair play as between those who compete in it, and he +holds that even cheapness ought not to be sought at the expense of +unfairness to the British producer. + +I say, then, that the Tariff Reformer starts with the idea of a +moderate all-round tariff. But he is not going to ride his principle +to death. He is essentially practical. There are some existing duties, +like those on alcoholic liquors, the high rate of which is justified +for other than fiscal reasons. He sees no reason to lower these +duties. On the other hand, there are some articles, such as raw +cotton, which compete with no British produce, and even a slight +enhancement of the price of which might materially injure our export +trade. The Tariff Reformer would place these on a free list, for he +feels that, however strong may be the argument for moderate all-round +duties as a guiding rule, it is necessary to admit exceptions even to +the best of rules, and it is part of his creed that we are bound to +study the actual effect of particular duties both upon ourselves and +upon others. No doubt that means hard work, an intimate acquaintance +with the details of our industry and trade, an eye upon the +proceedings of foreign countries. A modern tariff, if it is to be +really suitable to the requirements of the nation adopting it, must be +the work of experts. But is that any argument against it? Are we less +competent to make a thorough study of these questions than other +people, as for instance the Germans, or are we too lazy? Free Traders +make fun of a scientific tariff, but why should science be excluded +from the domain of fiscal policy, especially when the necessity of it +is so vigorously and so justly impressed upon us in every other field? +It is not only the War Office which has got to get rid of antiquated +prejudices and to open its eyes to what is going on in the world. Our +financial departments might reasonably be asked to do the same, and +they are quite equally capable, and I have no doubt equally willing, +to respond to such an appeal, instead of leaving the most thorough, +the most comprehensive, and the most valuable inquiry into the effects +of import duties, which has ever been made in this country, to a +private agency like the Tariff Commission. + +I do not think it is necessary for me to point out how a widespread +tariff, besides those other advantages which I have indicated, would +strengthen our hands in commercial policy. In the first place, it +would at once enable us to meet the advances of the other States of +the Empire, and to make the British Empire in its commercial aspect a +permanent reality. To do this it would not be necessary, nor do I +think it would be right, to exempt goods from the British Dominions +entirely from the duties to which similar goods coming from foreign +lands are subject. Our purpose would be equally well served by doing +what the Colonies do, and having two scales of duty, a lower one for +the products of all British States and Dependencies, a higher one for +those of the outside world. The amount of this preference would be a +matter of bargain to be settled by some future Imperial Conference, +not foredoomed to failure, and preceded by careful preliminary +investigation and negotiations. It might be twenty-five, or +thirty-three, or even fifty per cent. And whatever it was, I think we +should reserve the right also to give a preference, but never of the +same amount, to any foreign country which was willing to give us some +substantial equivalent. It need not be a general preference; it might +be the removal or reduction of some particular duties. I may say I do +not myself like the idea of engaging in tariff wars. I do not believe +in prohibitive or penal tariffs. But I do believe in having something +to give to those who treat us well, something to withhold from those +who treat us badly. At present, as you are well aware, Great Britain +is the one great nation which is treated with absolute disregard by +foreign countries in framing their tariffs. They know that however +badly they treat us they have nothing to lose by it, and so we go to +the wall on every occasion. + +And now, though there is a great deal more to be said, I feel I must +not trespass much further on your patience. But there is one objection +to Tariff Reform which is constantly made, and which is at once so +untrue and so damaging, that before sitting down I should like to say +a few words about it. We are told that this is an attempt to transfer +the burden of a part of our taxation from the shoulders of the rich to +those of the poor. If that were true, it would be fatal to Tariff +Reform, and I for one would have nothing to do with it. But it is not +true. There is no proposal to reduce and I believe there is no +possibility of reducing, the burden which at present falls on the +shoulders of the upper and middle classes in the shape of direct +taxation. On the other hand, I do not believe there is much room for +increasing it--though I think it can be increased in one or two +directions--without consequences which the poorer classes would be the +first to feel. Excise duties, which are mainly paid by those classes, +are already about as high as they can be. It follows that for any +increase of revenue, beyond the ordinary growth arising from increase +of wealth and population, you must look, at least to a great extent, +to Customs duties. And the tendency of the time is towards increased +expenditure, all of it, mind you--and I do not complain of the +fact--due to the effort to improve the condition of the mass of the +people. It is thus no question of shifting existing burdens, it is a +question of distributing the burden of new expenditure of which the +mass of the people will derive the benefit. And if that new +expenditure must, as I think I have shown, be met, at least in large +part, by Customs duties, which method of raising these duties is more +in the interest of the poorer classes--our present system, which +enhances enormously the price of a few articles of universal +consumption like tea and sugar and tobacco, or a tariff spread over a +much greater number of articles at a much lower rate? Beyond all doubt +or question the mass of the people would be better off under the +latter system. Even assuming--as I will for the sake of argument, +though I do not admit it--that the British consumer pays the whole of +the duty on imported foreign goods competing with British goods, is it +not evident that the poorer classes of the community would pay a +smaller proportion of Customs duties under a tariff which included a +great number of foreign manufactured articles, at present entirely +free, and largely the luxuries of the rich, than they do, when Customs +duties are restricted to a few articles of universal consumption? + +And that is at the same time the answer to the misleading, and often +dishonest, outcry about "taxing the food of the people," about the big +loaf and little loaf, and all the rest of it. The construction of a +sensible all-round tariff presents many difficulties, but there is +one difficulty which it does not present, and that is the difficulty +of so adjusting your duties that the total proportion of them falling +upon the wage-earning classes shall not be increased. I for one regard +such an adjustment as a postulate in any scheme of Tariff Reform. And +just one other argument--and I recommend it especially to those +working-class leaders who are so vehement in their denunciation of +Tariff Reform. Is it of no importance to the people whom they +especially claim to represent that our fiscal policy should lean so +heavily in favour of the foreign and against the British producer? If +they regard that as a matter of indifference, I think they will come +to find in time that the mass of the working classes do not agree with +them. But be that as it may, it is certain that I, for one, do not +advocate Tariff Reform in the interests of the rich, but in the +interests of the whole nation, and therefore necessarily of the +working classes, who are the majority of the nation. + + + + +A CONSTRUCTIVE POLICY + +Guildford, October 29, 1907 + + +I am very sensible of the honour of being called on to reply for the +Unionist cause, but I approach the task with some diffidence, not to +say trepidation. I feel very conscious that I am not a very good +specimen of a party man. It is not that I do not hold strong opinions +on many public questions--in fact, that is the very trouble. My +opinions are too strong to fit well into any recognised programme. I +suffer from an inveterate habit, which is partly congenital, but which +has been developed by years spent in the service of the Crown, of +looking at public questions from other than party points of view. And +I am too old to unlearn it. + +For a man so constituted there is evidently only a limited _rôle_ in +political life. But he may have his uses all the same, if you take +him for what he is, and not for what he is not, and does not pretend +to be. If he does not speak with the weight and authority of a party +leader, he is at least free from the embarrassments by which a party +leader is beset, and unhampered by the caution which a party leader is +bound to exercise. He commits nobody but himself, and therefore he can +afford to speak with a bluntness which is denied to those whose +utterances commit many thousands of other people. And I am not sure +whether the present moment is not one at which the unconventional +treatment of public questions may not be specially useful, so, whether +it be as an independent Unionist or as a friendly outsider--in +whichever light you like to regard me--I venture to contribute my mite +to the discussion. + +Having now made my position clear, I will at once plunge _in medias +res_ with a few artless observations. You hear all this grumbling +which is going on just now against the Unionist leader. Well, +gentlemen, a party which is in low water always does grumble at its +leader. I have known this sort of thing happen over and over again in +my own lifetime. And the consequence is, it is all like water on a +duck's back to me; it makes no impression on me whatsoever. I remember +as long back as the late sixties and early seventies the Conservative +party were ceaselessly grumbling at Lord Beaconsfield, then Mr. +Disraeli, right up to his greatest victory and the commencement of his +longest tenure of power--almost up to the moment when he became the +permanent idol of the Conservative party. I remember how the Liberals +grumbled at Mr. Gladstone from 1873 and 1874 almost up to the opening +of the Midlothian campaign. Again, I remember how the Conservatives +grumbled at Lord Salisbury from the first moment of his accession to +the leadership right up to 1885. I can recall as well as if it were +yesterday a young Tory friend of mine--he has become a distinguished +man since, and I am not going to give him away--telling me, who was at +that time a Liberal, in the year of grace 1883 or 1884, that it was +absolutely hopeless for the Tory party ever to expect to come back +into power with such a leader as Lord Salisbury. He called him a +"Professor." He said, "No doubt he is a very able man and an excellent +speaker, but he is a man of science. He has no popular gifts whatever. +There is not a ghost of a chance of a Conservative victory so long as +he is in command." Yet that was not more than two years before Lord +Salisbury commenced a series of Premierships which kept him, for some +thirteen and a half years out of seventeen, at the helm of the State. + +With all these experiences to look back upon it is really impossible +for me to be much affected by the passing wave of dissatisfaction with +Mr. Balfour. Men of first-rate ability and character are rare. Still +rarer are men who, having those qualities, also have the knack of +compelling the attention and respect even of a hostile House of +Commons. When a party possesses a leader with all these gifts, it is +not likely to change him in a hurry. + +But if I refuse to take a gloomy view of the Unionist leadership, I +must admit that I am not altogether an optimist about the immediate +prospects of Unionism. There is no doubt a bright side to the picture +as well as a less encouraging one. The bright side, from the party +point of view, is afforded by the hopeless chaos of opinion in the +ranks of our opponents--by the total absence of any clear conviction +or definite line whatever in the counsels of the Government, which +causes Ministers to dash wildly from measure to measure in +endeavouring to satisfy first one section and then another section of +their motley following, and which prevents them from ever giving +really adequate attention to any one of their proposals. + +I am not speaking of Ministers individually. Granted that some of them +have done excellent work at the heads of their several departments--I +think it would not be fair to deny that. I am thinking of their +collective policy, and especially of their legislative efforts. For +monuments of clumsy opportunism, commend me to the legislative +failures, and, for the matter of that, to most of the legislative +achievements, of the last two years. + +So far so good. Unionists cannot complain of what the Government is +doing for them. And on the negative side of policy--in their duty as +a mere Opposition--their course is clear. It is a fundamental article +of their faith to maintain the authority of the Imperial Parliament in +Ireland. But that authority can be set aside by the toleration of +lawlessness just as much, and in a worse way, than by the repeal of +the Union. And such toleration is the rule to-day. There may be no +violent crime, but there is open and widespread defiance of the law +and interference with the elementary rights of law-abiding people. It +is a demoralising state of affairs, and one to which no good citizen +in any part of the United Kingdom, however little he may be personally +affected by it, can afford to be indifferent. Once let it be granted +that any popular movement, which is not strong enough to obtain an +alteration of the law by regular means, can simply set the law aside +in practice, and you are at the beginning of general anarchy. + +Unionists have to fight for a restoration of the respect for law in +Ireland in the interest of the whole kingdom. And they may have to +fight also, it appears, against the abrogation of our existing +constitution in favour of a system of quinquennial dictatorships. For +that and nothing else is involved in the proposal to reduce the House +of Lords to impotence and put nothing in its place. I am not concerned +to represent the present constitution of the House of Lords as +perfect. I have always been of opinion that a more representative and +therefore a stronger second chamber was desirable. But that we can +afford to do without any check on the House of Commons, especially +since the removal of all checks upon the power of those who from time +to time control the House of Commons to rush through any measures they +please without the possibility of an appeal to the people--that is a +proposition which no man with any knowledge of history or any respect +for constitutional government can possibly defend. To resist such a +proposal as that is not fighting for a party; it is not fighting for a +class. It is fighting for the stability of society, for the +fundamental rights of the whole nation. + +I say, then, that on the negative side, in the things it is called +upon to resist, the Unionist party is strong and fortunate. But are we +to be content with that? Should we not all like to feel that we +appealed for the confidence of the people on the merits of our own +policy, and not merely on the demerits of our opponents? That, I take +it, is the feeling at the bottom of what men are saying on all hands +just now--that the Unionist party ought to have a constructive policy. +Now, if by a constructive policy is meant a string of promises, a sort +of Newcastle programme, then I can well imagine any wise statesmen, +especially if they happened to be in Opposition, thinking twice before +they committed themselves to it. But if by a constructive policy is +meant a definite set of principles, a clear attitude to the questions +which most agitate the public mind, a sympathetic grasp of popular +needs, and a readiness to indicate the extent to which, and the lines +on which, you think it possible and desirable to satisfy them--then I +agree that the Unionist party ought to have such a policy. And I +venture to say that, if it has such a policy, the fact is not yet +sufficiently apparent to the popular mind, or, perhaps, I should say, +speaking as one of the populace, to my mind. + +Many people think that it is sufficient for the purpose--that it is +possible to conduct a victorious campaign with the single watchword +"Down with Socialism." Well, I am not fond of mere negatives. I do not +like fighting an abstract noun. My objection to anti-Socialism as a +platform is that Socialism means so many different things. On this +point I agree with Mr. Asquith. I will wait to denounce Socialism till +I see what form it takes. Sometimes it is synonymous with robbery, and +to robbery, open or veiled, boldly stalking in the face of day or +hiding itself under specious phrases, Unionists are, as a matter of +course, opposed. But mere fidelity to the eighth Commandment is not a +constructive policy, and Socialism is not necessarily synonymous with +robbery. Correctly used, the word only signifies a particular view of +the proper relation of the State to its citizens--a tendency to +substitute public for private ownership, or to restrict the freedom of +individual enterprise in the interests of the public. But there are +some forms of property which we all admit should be public and not +private, and the freedom of individual enterprise is already limited +by a hundred laws. Socialism and Individualism are opposing +principles, which enter in various proportions into the constitution +of every civilised society; it is merely a question of degree. One +community is more Socialistic than another. The same community is more +Socialistic at one time than at another. This country is far more +Socialistic than it was fifty years ago, and for most of the changes +in that direction the Unionist and the Tory party are responsible. The +Factory Acts are one instance; free education is another. The danger, +as it seems to me, of the Unionist party going off on a crusade +against Socialism is that in the heat of that crusade it may neglect, +or appear to neglect, those social evils of which honest Socialism is +striving, often, no doubt, by unwise means, to effect a cure. If the +Unionist party did that, it would be unfaithful to its own best +traditions from the days of "Sybil" and "Coningsby" to the present +time. + +The true antidote to revolutionary Socialism is practical social +reform. That is no claptrap phrase--although it may sound so; there is +a great historical truth behind it. The revolutionary Socialist--I +call him revolutionary because he wants to alter the whole basis of +society--would like to get rid of all private property, except, +perhaps, our domestic pots and pans. He is averse from private +enterprise. He is going absurdly too far; but what gave birth to his +doctrine? The abuse of the rights of private property, the cruelty and +the failure of the scramble for gain, which mark the reign of a +one-sided Individualism. If we had not gone much too far in one +direction, we should not have had this extravagant reaction in the +other. But do not let us lose our heads in face of that reaction. +While resisting the revolutionary propaganda, let us be more, and not +less, strenuous in removing the causes of it. + +You may think I am now talking pure Radicalism. Well, but it is not to +the objects which many Radicals have at heart that we, as Unionists, +need take exception. Why should we make them a present of those good +objects? Old age pensions; the multiplication of small landholders--and, +let me add, landowners; the resuscitation of agriculture; and, on the +other hand, better housing in our crowded centres; town planning; +sanitary conditions of labour; the extinction of sweating; the physical +training of the people; continuation schools--these and all other +measures necessary to preserve the stamina of the race and develop its +intelligence and productive power--have we not as good a right to +regard these as our objects, aye, and in many cases a better right, than +the supporters of the Government have? + +It is not these objects which we deprecate. On the contrary, they have +our ardent sympathy. What we do deprecate is the spirit in which they +are so often preached and pursued. No progress is going to be +made--quite the contrary--by stirring up class hatred or trying to rob +Peter in order to pay Paul. It is not true that you cannot benefit one +class without taking from another class--still less true that by +taking from one you necessarily benefit another. The national income, +the sum total of all our productive activities, is capable of being +enormously increased or diminished by wise or foolish policy. For it +does not only depend on the amount of capital and labour. A number of +far subtler factors enter into the account--science, organisation, +energy, credit, confidence, the spirit in which men set about their +business. The one thing which would be certain to diminish that +income, and to recoil on all of us, would be that war of classes which +many people seem anxious to stir up. Nothing could be more fatal to +prosperity, and to the fairest hopes of social progress, than if the +great body of the upper and middle classes of the community had cause +to regard that progress as indissolubly associated with an attack upon +themselves. And that is why, if reforms such as I have indicated are +costly--as they will be costly--you must find some better way of +providing for them than by merely giving another turn to the +income-tax screw, or just adding so much per cent. to the estate duty. + +From my point of view, social reform is a national affair. All classes +benefit by it, not only those directly affected. And therefore all +should contribute according to their means. I do not in any way object +to the rich being made to contribute, even for purposes in which they +are not directly interested. What I do object to is that the great +body of the people should not contribute to them. It is thoroughly +vicious in principle to divide the nation, as many of the Radical and +Labour men want to divide it, into two sections--a majority which only +calls the tune, and a minority which only pays the piper. + +I own I am aghast at the mean opinion which many politicians seem to +have of the mass of their working fellow countrymen, when they +approach them with this crude sort of bribery, offering them +everything for nothing, always talking to them of their claims upon +the State, and never of their duties towards it. This is a democratic +country. It is their State and their Empire--theirs to possess, theirs +to control, but theirs also to support and to defend. And I for one +have such faith in the common sense and fair-mindedness of the British +people that I believe you have only to convince them that you have a +really sound national policy, and they will rally to it, without +having to be bought by promises of a penny off this and twopence off +the other--a sort of appeal, I regret to say, which is not only +confined to Radical orators, but in which Unionists also are +sometimes too apt to indulge. + +And, now, gentlemen, only one word in conclusion--a brief and +inadequate reference to a vast subject, but one to which I am at all +times and seasons specially bound to refer. After all, my chief +quarrel with the Radical party--not with all of them--I do not say +that for a moment--but with a far too large and influential +section--is their anti-patriotism. I use the word advisedly. It is not +that they are unpatriotic in the sense of having no affection for +their country. It is that they are deliberately and on principle--I do +not asperse their motives; I do not question their sincerity and +conviction--anti-patriotic, opposed to national as distinct from +cosmopolitan ideals. They are not zealous for national defence; they +have no faith in the Empire; they love to show their impartiality by +taking sides against their own country; they object to their children +being taught respect for the flag. But we Unionists are not +cosmopolitans, but Britons. We have no envy or ill-will towards other +nations; a man is not a worse neighbour because he loves his own +family. But we do hold that it is not our business to look after +others. It is our business to look after ourselves and our +dependencies, and the great kindred communities who own allegiance to +the British flag. We want to draw closer to them, to stand together; +and we believe that the strength and the unity of the British Empire +are of vital and practical importance to every citizen. In all our +propaganda, and in all our policy, let us continue to give that great +principle a foremost place. + + + + +UNIONISTS AND THE EMPIRE + +Edinburgh, November 15, 1907 + + +I am greatly reassured by the very kind reception which you have just +given me. To tell the truth, I had been feeling a little alarmed at +the fate which might await me in Edinburgh. From a faithful perusal of +the Radical Press I had been led to believe that Scotland was seething +with righteous indignation against that branch of the Legislature of +which I am, it is true, only a humble and very recent member, but yet +a member, and therefore involved in the general condemnation of the +ruthless hereditary tyrants and oppressors of the people, the +privileged landowning class, which is alleged to be so out of sympathy +with the mass of their fellow-countrymen, although, oddly enough, it +supplies many of the most popular candidates, not only of one party, +at any General Election. Personally, I feel it rather hard to be +painted in such black colours. There is no taint of hereditary +privilege about me. I am not--I wish I were--the owner of broad acres, +and I am in no way conscious of belonging to a specially favoured +class. There are a great many of my fellow members in the House of +Lords who are in the same position, and who sit there, not by virtue +of any privilege, but by virtue of their services, or, let me say in +my own case, supposed services, to the State. And while we sit +there--and here I venture, with all humility, to speak for all the +members of that body, whether hereditary or created--we feel that we +ought to deal with the questions submitted to us to the best of our +judgment and conscience, without fear of the consequences to ourselves +and without allowing ourselves to be brow-beaten for not being +different from what we are. We believe that we perform a useful and +necessary function. We believe that a Second Chamber is essential to +the good government of this country. We do not contend--certainly I am +myself very far from contending--that the existing Second Chamber is +the best imaginable. Let there be a well-considered reform of the +House of Lords, or even, if need be, an entirely different Second +Chamber. But until you have got this better instrument, do not throw +away the instrument which you have--the only defence, not of the +privileges of a class, but of the rights of the whole nation, against +hasty, ill-considered measures and against the subordination of +permanent national interests to the temporary exigencies of a party. + +It is said that there is a permanent Conservative majority in the +House of Lords. But then every Second Chamber is, and ought to be, +conservative in temper. It exists to exercise a restraining influence, +to ensure that great changes shall not be made in fundamental +institutions except by the deliberate will of the nation, and not as +the outcome of a mere passing mood. And if the accusation is, that the +House of Lords is too Conservative in a party sense, which is a +different thing, I admit, from being Conservative in the highest and +best sense, that points not to doing away with the Second Chamber, but +to making such a change in its composition as, while leaving it still +powerful, still, above all, independent, will render it more +representative of the permanent mind of the nation. + +But let me be permitted to observe that the instance relied on to prove +that the House of Lords is in the pocket of the Conservative party is a +very unfortunate instance. What is its offence? It is said that the +Lords rejected the Scottish Land Bill. But they did not reject the +Scottish Land Bill. They were quite prepared to accept a portion of the +Bill, and it is for the Government to answer to the people interested +in that portion for their not having received the benefits which the +Bill was presumably intended to bestow on them. What the Government did +was to hold a pistol at the head of the House of Lords, and to say that +they must either accept the whole straggling and ill-constructed +measure as it stood, or be held up to public odium for rejecting it. +But when the Bill was looked at as a whole, it was found to contain +principles--novel principles as far as the great part of Scotland was +concerned, bad principles, as the experience of Ireland showed--which +the House of Lords, and not only the Conservatives in the House of +Lords, were not prepared to endorse. Was it Conservative criticism +which killed the Bill? It was riddled with arguments by a Liberal Peer +and former Liberal Prime Minister--arguments to which the Government +speakers were quite unable, and had the good sense not even to attempt, +to reply. And that is the instance which is quoted to prove that the +House of Lords is a Tory Caucus! + +Now, before leaving this question of the House of Lords, let me just +say one word about its general attitude. I have not long been a member +of that assembly. I do not presume to take much part in its +discussions. But I follow them, and I think I follow them with a +fairly unprejudiced mind. On many questions I am perhaps not in accord +with the views of the majority of the House. But what strikes me about +the House of Lords is that it is a singularly independent assembly. It +is not at the beck and call of any man. It is a body which does not +care at all about party claptrap, but which does care a great deal +about a good argument, from whatever quarter it may proceed. +Moreover, I am confident that the great body of its members are quite +alive to the fact that they cannot afford to cast their votes merely +according to their individual opinions and personal prejudices--that +they are trustees for the nation, and that while it is their duty to +prevent the nation being hustled into revolution, as but for them it +would have been hustled into Home Rule in 1893, they have no right to +resist changes upon which the nation has clearly and after full +deliberation set its mind. And when the Prime Minister says that it is +intolerable arrogance on the part of the House of Lords to pretend to +know better what the nation wishes than the House of Commons, I can +only reply that the proof of the pudding is in the eating. In 1893 the +House of Commons said that the nation wished Home Rule. The House of +Lords had the intolerable arrogance to take a different view. Well, +within less than two years the question was submitted to the nation; +and who proved to be right? + +I regret to have had to dwell at such length upon this particular +topic. But it seems to me that we have no choice in the matter. If +the Government succeed in their attempt to divert the attention of the +nation from matters of the greatest interest at home and abroad in +order to involve us all in a constitutional struggle on a false issue, +we must be prepared to meet them. But I do not wish to waste the rare +opportunity afforded to me to-night of addressing this great and +representative Scottish audience by talking exclusively about this +regrettable manoeuvre. There is something I am anxious to say to you +about the future of the Unionist party. I do not claim to lay down a +policy for that or for any party. I am not, by temperament or +antecedents, a good party man. But I want to be allowed, as a private +citizen, to point out what are the great services which I think the +Unionist party can render to the nation at the present very critical +juncture in its history. The Unionist party has a splendid record in +the past. For twenty years it has saved the United Kingdom from +disruption. It has preserved South Africa for the Empire; and, greatly +as I feel and know, that the results of the efforts and sacrifices of +the nation have been marred and impaired by the disastrous policy of +the last two years, South Africa is still one country under the +British flag. And all the time, in spite of foreign war and domestic +sedition, the Unionist party has pursued a steady policy of practical +social reform, and the administrative and legislative record of the +last twenty years will compare favourably with that of any period of +our history. + +But no party can afford to rely upon its past achievements. How is the +Unionist party going to confront the great problems of the present +day? The greatest of these problems, as I shall never cease to preach +to my countrymen, is the maintenance of the great heritage which we +owe to the courage, the enterprise, and the self-sacrifice of our +forefathers, who built up one of the greatest Empires in history by, +on the whole, the most honourable means. The epoch of expansion is +pretty nearly past, but there remains before us a great work of +development and consolidation. And that is a work which should appeal +especially to Scotsmen. The Scottish people have borne a great part, +great out of proportion to their numbers, in building up our common +British heritage. They are taking a foremost part in it to-day. All +over the world, as settlers in Canada, in Australia, or in South +Africa, as administrators in India and elsewhere, they are among the +sturdiest pillars on which the great Imperial fabric rests. I am not +talking in the air. I am speaking from my personal experience, and +only saying in public here to-night what I have said in private a +hundred times, that as an agent of my country in distant lands I have +had endless occasion to appreciate the support given to the British +cause by the ability, the courage, the shrewd sense and the broad +Imperial instinct of many Scotsmen. And therefore I look with +confidence to a Scottish audience to support my appeal for continuous +national effort in making the most of the British Empire. I say this +is not a matter with regard to which we can afford to rest on our +laurels. We must either go forward or we shall go back. And especially +ought we to go forward in developing co-operation, on a basis of +equality and partnership, with the great self-governing communities +of our race in the distant portions of the world, else they will drift +away from us. Do not let us think for a moment that we can afford such +another fiasco as the late Colonial Conference. Do not let us imagine +for a moment that we can go to sleep over the questions then raised, +and not one of them settled, for four years, only to find ourselves +unprepared when the next Conference meets. A cordial social welcome, +many toasts, many dinners, are all very well in their way, but they +are not enough. What is wanted is a real understanding of what our +fellow countrymen across the seas are driving at, and a real attempt +to meet them in their efforts to keep us a united family. All that our +present rulers seem able to do is to misunderstand, and therefore +unconsciously to misrepresent--I do not question their good +intentions, but I think they are struck with mental blindness in this +matter--to misrepresent the attitude of the colonists and greatly to +exaggerate the difficulties of meeting them half-way. The speeches of +Ministers on a question like that of Colonial Preference leave upon me +the most deplorable impression. One would have thought that, if they +could not get over the objections which they feel to meeting the +advances of our kinsmen, they would at least show some sort of regret +at their failure. But not a bit of it. Their one idea all along has +been to magnify the difficulties in the way in order to make party +capital out of the business. They saw their way to a good cry about +"taxing the food of the people," the big and the little loaf, and so +forth, and they went racing after it, regardless of everything but its +electioneering value. From first to last there has been the same +desire to make the worst of things, sometimes by very disingenuous +means. First of all it was said that there was "no Colonial offer." +But when the representatives of the Colonies came here, and all in the +plainest terms offered us preference for preference, this device +evidently had to be abandoned. So then it was asserted that, in order +to give preference to the Colonies, we must tax raw materials. But +this move again was promptly checkmated by the clear and repeated +declaration of the Colonial representatives that they did not expect +us to tax raw materials. And so nothing was left to Ministers, +determined as they were to wriggle out of any agreement with the +Colonies at all costs, except to fall back on the old, weary +parrot-cry--"Will you tax corn?" "Will you tax butter?" and so on +through the whole list of articles of common consumption, the taxation +of any one of which was thought to be valuable as an electioneering +bogey. + +For my own part, I am not the least bit frightened by any of these +questions. If I am asked whether I would tax this or tax that, it may +be proof of great depravity on my part, but I say without hesitation, +that, for a sufficient object, I should not have the least objection +to putting two shillings a quarter on wheat or twopence a pound on +butter. But I must add that the whole argument nauseates me. What sort +of opinion must these gentlemen have of their fellow countrymen, if +they think that the question of a farthing on the quartern loaf or +half a farthing on the pat of butter is going to outweigh in their +minds every national consideration? And these are the men who accused +Mr. Chamberlain of wishing to unite the Empire by sordid bonds! It is +indeed extraordinary and to my mind almost heartrending to see how +this question of Tariff Reform continues to be discussed on the lowest +grounds, and how its higher and wider aspects seem to be so constantly +neglected. Yet we have no excuse for ignoring them. The Colonial +advocates of Preference, and especially Mr. Deakin, with whose point +of view I thoroughly agree, have repeatedly explained the great +political, national, and I might almost say moral aspects of that +policy. There is a great deal more in it than a readjustment of +duties--twopence off this and a penny on that. I do not say that such +details are not important. When the time comes I am prepared to +show--and I am an old hand at these things--that the objections which +loom so large in many eyes can really be very easily circumvented. But +I would not attempt to bother my fellow countrymen with complicated +changes in their fiscal arrangements, or even with the discussion of +them, if it were not for the bigness of the principle that is +involved. + +I wish to look at it from two points of view. The principle which +lies at the root of Tariff Reform, in its Imperial aspect, is the +national principle. The people of these great dominions beyond the +seas are no strangers to us. They are our own kith and kin. We do not +wish to deal with them, even in merely material matters, on the same +basis as with strangers. That is the great difference between us +Tariff Reformers and the Cobdenites. The Cobdenite only looks at the +commercial side. He is a cosmopolitan. He does not care from whom he +buys, or to whom he sells. He does not care about the ulterior effects +of his trading, whether it promotes British industry or ruins it; +whether it assists the growth of the kindred States, or only enriches +foreign countries. To us Tariff Reformers these matters are of moment, +and of the most tremendous moment. We do not undervalue our great +foreign trade, and I for one am convinced that there is nothing in the +principles of Tariff Reform which will injure that trade. Quite the +reverse. But we do hold that our first concern is with the industry +and productive capacities of our own country, and our next with those +of the great kindred countries across the seas. We hold that a wise +fiscal policy would help to direct commerce into channels which would +not only assist the British worker, but also assist Colonial +development, and make for the greater and more rapid growth of those +countries, which not only contain our best customers, but our fellow +citizens. + +That, I say, is one aspect of the matter. But then there is the other +side--the question of social reform in this country. Now here again we +differ from the Cobdenite. The Cobdenite is an individualist. He +believes that private enterprise, working under a system of unfettered +competition, with cheapness as its supreme object, is the surest road +to universal well-being. The Tariff Reformer also believes in private +enterprise, but he does not believe that the mere blind struggle for +individual gain is going to produce the most beneficent results. He +does not believe in cheapness if it is the result of sweating or of +underpaid labour. He keeps before him as the main object of all +domestic policy the gradual, steady elevation of the standard of life +throughout the community; and he believes that the action of the +State deliberately directed to the encouragement of British industry, +not merely by tariffs, is part and parcel of any sound national policy +and of true Imperialism. And please observe that in a number of cases +the Radical party itself has abandoned Cobdenism. Pure individualism +went to the wall in the Factory Acts, and it is going to the wall +every day in our domestic legislation. It is solely with regard to +this matter of imports that the Radical party still cling to the +Cobdenite doctrine, and the consequence is that their policy has +become a mass of inconsistencies. It is devoid of any logical +foundation whatever. + +I know that there are many people, sound Unionists at heart, who still +have a difficulty about accepting the doctrines of the Tariff +Reformers. My belief is that, if they could only look at the matter +from the broad national and Imperial point of view, they would come to +alter their convictions. I am not advocating Tariff Reform as in +itself the greatest of human objects. But it seems to me the key of +the position. It seems to me that, without it, we can neither take the +first steps towards drawing closer the bonds between the mother +country and the great self-governing States of the Empire; nor +maintain the prosperity of the British worker in face of unfair +foreign competition; nor obtain that large and elastic revenue which +is absolutely essential, if we are going to pursue a policy of social +reform and mean real business. I cannot but hope that many of those +who still shy at Tariff Reform, when they come to look at it from this +point of view--to see it as I see it, not as an isolated thing, but as +an essential and necessary part of a comprehensive national +policy--will rally to our cause. I have travelled along that road +myself. I have been a Cobdenite myself--I am not ashamed of it. But I +have come to see that the doctrine of free imports--the religion of +free imports, I ought to say--as it is practised in this country +to-day, is inconsistent with social reform, inconsistent with fair +play to British industry, and inconsistent with the development and +consolidation of the Empire. And therefore I rejoice that, in the +really great speech which he delivered last night, the leader of the +Unionist party has once more unhesitatingly affirmed his adhesion to +the principles which I have been trying, in my feebler way, to +advocate here this evening. My own conviction is that, when these +principles are understood in all their bearings, they will command the +approval of the mass of the people. And even in Scotland, where I dare +say it is a very uphill fight, I look forward with confidence to their +ultimate victory. Do not let us be discouraged if the fight is long +and the progress slow. The great permanent influences are on our side. +On the one hand there is the growth of the Empire, with all the +opportunities which it affords; on the other there is the increasing +determination of foreign nations to keep their business to themselves. +These potent facts, which have already converted so many leading +minds, will in due time make themselves felt in ever-widening circles. +And they will not fail to produce their effect upon the shrewd +practical sense of the Scottish people, especially when combined with +an appeal to the patriotic instincts of a race which has done so much +to make the Empire what it is, and which has such a supreme interest +in its maintenance and consolidation. + + + + +UNIONISTS AND SOCIAL REFORM + +Rugby, November 19, 1907 + + +There has been such a deluge of talk during the last three weeks that +I doubt whether it is possible for me, or any man, to make a further +contribution to the discussion which will have any freshness or value. +But inasmuch as you probably do not all read all the speeches, you may +perhaps be willing to hear from me a condensed summary of what it all +comes to--of course, from my point of view, which no doubt is not +quite the same as that of the Prime Minister or Mr. Asquith. Now, from +my point of view, there has been a considerable clearing of the air, +and we ought all to be in a position to take a more practical and less +exaggerated view of the situation. Speaking as a Tariff Reformer, I +think that those people, with whom Tariff Reformers agree on almost +all other political questions, but who are strongly and +conscientiously opposed to anything like what they call tampering with +our fiscal system, must by now understand a little better than they +did before what Tariff Reformers really aim at, and must begin to see +that there is nothing so very monstrous or revolutionary about our +proposals. I hope they may also begin to see why it is that Tariff +Reformers are so persistent and so insistent upon their own particular +view. There is something very attractive in the argument which says +that, since Tariff Reform is a stumbling-block to many good Unionists, +it should be dropped, and our ranks closed in defence of an effective +Second Chamber, and in defence of all our institutions against +revolutionary attacks directed upon the existing order of society. In +so far as this is an argument for tolerance and against +excommunicating people because they do not agree with me about Tariff +Reform, I am entirely in accord with it. I am only a convert to Tariff +Reform myself, although I am not a very recent convert, for at the +beginning of 1903, at Bloemfontein, I was instrumental in inducing all +the South African Colonies to give a substantial preference to goods +of British origin. I was instrumental in doing that some months before +the great Tariff Reform campaign was inaugurated in this country by +its leading champion, Mr. Chamberlain. But while I am all for personal +tolerance, I am opposed to any compromise on the question of +principle. I am not opposed to it from any perverseness or any +obstinacy. I am opposed to it because I see clearly that dropping +Tariff Reform will knock the bottom out of a policy which I believe is +not only right in itself, but is the only effective defence of the +Union and of many other things which are very dear to us--I mean a +policy of constructive Imperialism, and of steady, consistent, +unhasting, and unresting Social Reform. + +I have never advocated Tariff Reform as a nostrum or as a panacea. I +have never pretended that it is by itself alone sufficient to cure all +the evils inherent in our social system, or alone sufficient as a bond +of Empire. What I contend is that without it, without recovering our +fiscal freedom, without recovering the power to deal with Customs +Duties in accordance with the conditions of the present time and not +the conditions of fifty years ago, we cannot carry out any of those +measures which it is most necessary that we should carry out. Without +it we are unable to defend ourselves against illegitimate foreign +competition; we are unable to enter into those trade arrangements with +the great self-governing States of the British Crown across the seas, +which are calculated to bestow the most far-reaching benefits upon +them and upon us; and we are unable to obtain the revenue which is +required for a policy of progressive Social Reform. I hope that people +otherwise in agreement with us, who have hitherto not seen their way +to get over their objections to Tariff Reform, will, nevertheless, +find themselves able to accept that principle, when they regard it, +not as an isolated thing, but as an essential part of a great national +and Imperial policy. + +Of course, they will have to see it as it is, and not as it is +represented by its opponents. The opponents of Tariff Reform have a +very easy method of arguing with its supporters. They say that any +departure whatsoever from our present fiscal system necessarily +involves taxing raw materials, and must necessarily result in high and +prohibitive duties, which will upset our foreign trade, and will be +ruinous and disorganising to the whole business of the country. But +Tariff Reformers are not going to frame their duties in order to suit +the argumentative convenience of Mr. Asquith. They are going to be +guided by wholly different considerations from that. It is curious +that everybody opposed to Tariff Reform says that Tariff Reformers +intend to tax raw material, while Tariff Reformers themselves have +steadily said they do not. I ask you in that respect to take the +description of a policy of Tariff Reform from those who advocate it, +and not from those who oppose it. And as for the argument about high +prohibitive duties, I wish people would read the reports or summaries +of the reports of the Tariff Commission. They contain not only the +most valuable collection that exists anywhere of the present facts +about almost every branch of British industry but they are also an +authoritative source from which to draw inferences as to the +intentions of Tariff Reformers. Now the Tariff Reform Commission have +not attempted to frame a complete tariff, a scale of duties for all +articles imported into this country, and wisely, because, if they had +tried to do that, people would have said that they were arrogating to +themselves the duties of Parliament. What they have done is to show by +a few instances that a policy of Tariff Reform is not a thing in the +air, not a mere thing of phrases and catchwords, but is a practical, +businesslike working policy. They have drawn up what may be called +experimental scales of duties, which are merely suggestions for +consideration, with respect to a number of articles under the +principal heads of British imports, such as, for instance, +agricultural imports and imports of iron and steel. These experimental +duties vary on the average from something like 5 per cent. to 10 per +cent. on the value of the articles. In no one case in my recollection +do they exceed 10 per cent. + +But then the opponents of Tariff Reform say: "Yes. That is all very +well. But though you may begin with moderate duties, you are bound to +proceed to higher ones. It is in the nature of things that you should +go on increasing and increasing, and in the end we shall all be +ruined." I must say that seems to me great nonsense. It reminds me of +nothing so much as the fearful warnings which I have read in the least +judicious sort of temperance literature, and sometimes heard from +temperance orators of the more extreme type--the sort of warning, I +mean, that, if you once begin touching anything stronger than water, +you are bound to go on till you end by beating your wife and die in a +workhouse. But you and I know perfectly well that it is possible to +have an occasional glass of beer or glass of wine, or even, low be it +spoken, a little whisky, without beating or wanting to beat anybody, +and without coming to such a terrible end. The argument against the +use of anything from its abuse has always struck me as one of the +feeblest of arguments. And just see how particularly absurd it is in +the present case. The effect of duties on foreign imports, even such +moderate and carefully devised duties as those to which I have +referred, would, we are told, be ruinous to British trade. It would +place intolerable burdens upon the people. Yet for all that the people +would, it appears, insist on increasing these burdens. Surely it is as +clear as a pike-staff that, if the duties which Tariff Reformers +advocate were to produce the evils which Free Importers allege that +they would produce, these duties, so far from being inevitably +maintained and increased, would not survive one General Election after +their imposition. + +It is not only with regard to Tariff Reform that I think the air is +clearer. The Unionist Party has to my mind escaped another danger +which was quite as great as that of allowing the Tariff question to be +pushed on one side, and that was the danger of being frightened by the +scare, which the noisy spreading of certain subversive doctrines has +lately caused, into a purely negative and defensive attitude; of +ceasing to be, as it has been, a popular and progressive party, and +becoming merely the embodiment of upper and middle class prejudices +and alarms. I do not say that there are not many projects in the air +which are calculated to excite alarm, but they can only be +successfully resisted on frankly democratic and popular lines. My own +feeling is--I may be quite wrong, but I state my opinion for what it +is worth--that there is far less danger of the democracy going wrong +about domestic questions than there is of its going wrong about +foreign and Imperial questions, and for this simple reason, that with +regard to domestic questions they have their own sense and experience +to guide them. + +If a mistake is made in domestic policy its consequences are rapidly +felt, and no amount of fine talking will induce people to persist in +courses which are affecting them injuriously in their daily lives. You +have thus a constant and effective check upon those who are disposed +to try dangerous experiments, or to go too fast even on lines which +may be in themselves laudable, as the experience of recent municipal +elections, among other things, clearly shows. But with regard to +Imperial questions, to our great and vital interests in distant parts +of the earth, there is necessarily neither the same amount of personal +knowledge on the part of the electorate, nor do the consequences of a +mistaken policy recoil so directly and so unmistakably upon them. +These subjects, therefore, are the happy hunting-ground of the +visionary and the phrase-maker. I have seen the people of this country +talked into a policy with regard to South Africa at once so injurious +to their own interests, and so base towards those who had thrown in +their lot with us and trusted us, that, if the British nation had only +known what that policy really meant, they would have spat it out of +their mouths. And I tremble every day lest, on the vital question of +Defence, the pressure of well-meaning but ignorant idealists, or the +meaner influence of vote-catching demagogues, should lead this +Government or, indeed, any Government, to curtail the provisions, +already none too ample, for the safety of the Empire, in order to pose +as the friends of peace or as special adepts in economy. I know these +savings of a million or two a year over say five or ten years, which +cost you fifty or one hundred millions, wasted through unreadiness +when the crisis comes, to say nothing of the waste of gallant lives +even more precious. This is the kind of question about which the +democracy is liable to be misled, being without the corrective of +direct personal contact with the facts to keep it straight. And it is +unpopular and up-hill work to go on reminding people of the vastness +of the duty and the responsibility which the control of so great a +portion of the earth's surface, with a dependent population of three +or four hundred millions, necessarily involves; to go on reminding +them, too, how their own prosperity and even existence in these +islands are linked by a hundred subtle but not always obvious or +superficially apparent threads with the maintenance of those great +external possessions. + +I say these are difficulties which any party or any man, who is +prepared to do his duty by the electorate of this country, not merely +to ingratiate himself with them for the moment, but to win their +confidence by deserving it, by telling them the truth, by serving +their permanent interests and not their passing moods, is bound to +face. For my own part, I have always been perfectly frank on these +questions. I have maintained on many platforms, I am prepared to +maintain here to-night and shall always maintain, although this is a +subject on which it may be long before my views are included in any +party programme--I say I shall always maintain that real security is +not possible without citizen service, and that the training of every +able-bodied man to be capable of taking part, if need be, in the +defence of his country, is not only good for the country but good for +the man--and would materially assist in the solution of many other +problems, social and economic. But being, as I am, thus +uncompromising, and quite prepared to find myself unpopular, on these +vital questions of national security, and of our Imperial duties and +responsibilities, I can perhaps afford to say, without being suspected +of fawning or of wishing to play the demagogue myself, that in the +matter of domestic reform I am not easy to frighten, and that I have a +very great trust in the essential fair-mindedness and good sense of +the great body of my fellow countrymen with regard to questions which +come within their own direct cognisance. And therefore it was most +reassuring to me at any rate--and I hope it was to you--to observe, +that that large section of the Unionist Party which met at Birmingham +last week, not so much by any resolutions or formal programme--for +there was nothing very novel in these--as by the whole tone and temper +of its proceedings, affirmed in the most emphatic manner the +essentially progressive and democratic character of Unionism. The +greatest danger I hold to the Unionist Party and to the nation is that +the ideals of national strength and Imperial consolidation on the one +hand, and of democratic progress and domestic reform on the other, +should be dissevered, and that people should come to regard as +antagonistic objects which are essentially related and complementary +to one another. The upholders of the Union, the upholders of the +Empire, the upholders of the fundamental institutions of the State, +must not only be, but must be seen and known to be, the strenuous and +constant assailants of those two great related curses of our social +system--irregular employment and unhealthy conditions of life--and of +all the various causes which lead to them. + +I cannot stay here to enumerate those causes, but I will mention a +few of them. There is the defective training of children, defective +physical training to begin with, and then the failure to equip them +with any particular and definite form of skill. There is the irregular +way in which new centres of population are allowed to spring up, so +that we go on creating fresh slums as fast as we pull down the old +rookeries. There is the depopulation of the countryside, and the +influx of foreign paupers into our already overcrowded towns. There is +the undermining of old-established and valuable British industries by +unfair foreign competition. That is not an exhaustive list, but it is +sufficient to illustrate my meaning. Well, wherever these and similar +evils are eating away the health and independence of our working +people, there the foundations of the Empire are being undermined, for +it is the race that makes the Empire. Loud is the call to every true +Unionist, to every true Imperialist, to come to the rescue. + +And now at the risk of wearying you there is one other subject to +which I would like specially to refer, lest I should be accused of +deliberately giving it the go-by, and that is the question of old age +pensions. It is not a reform altogether of the same nature as those on +which I have been dwelling, nor is it perhaps the kind of reform about +which I feel the greatest enthusiasm, because I would rather attack +the causes, which lead to that irregularity of employment and that +under-payment which prevents people from providing for their own old +age themselves, than merely remedy the evils arising from it. But I +accept the fact that under present conditions, which it may be that a +progressive policy in time will alter, a sufficient case for State aid +in the matter of old age pensions has been made out, and I believe +that no party is going to oppose the introduction of old age pensions. +But, on the other hand, I foresee great difficulties and great +disputes over the question of the manner in which the money is to be +provided. I know how our Radical friends will wish to provide the +money. They will want to get it, in the first instance, by starving +the Army and the Navy. To that way of providing it I hope the Unionist +Party, however unpopular such a course may be, and however liable to +misrepresentation it may be, will oppose an iron resistance, because +this is an utterly rotten and bad way of financing old age pensions, +or anything else. But that method alone, however far it is carried, +will not provide money enough, and there will be an attempt to raise +the rest by taxes levied exclusively on the rich. I am against that +also, because it is thoroughly wrong in principle. I am not against +making the rich pay, to the full extent of their capacity, for great +national purposes, even for national purposes in which they have no +direct interest. But I am not prepared to see them made to pay +exclusively. Let all pay according to their means. It is a thoroughly +vicious idea that money should be taken out of the pocket of one man, +however rich, in order to be put into the pocket of another, however +poor. That is a bad, anti-national principle, and I hope the +Unionist Party will take a firm stand against it. And this is an +additional reason why we should raise whatever money may be necessary +by duties upon foreign imports, because in that way all will +contribute. No doubt the rich will contribute the bulk of the money +through the duties on imported luxuries, but there will be some +contribution, as there ought to be some contribution, from every class +of the people. + +And now, in conclusion, one word about purely practical +considerations. We Unionists, if you will allow me to call myself a +Unionist--at any rate I have explained quite frankly what I mean by +the term--are not a class party, but a national party. That being so, +it is surely of the utmost importance that men of all classes should +participate in every branch and every grade of the work of the +Unionist Party. Why should we not have Unionist Labour members as well +as Radical Labour members? I think that the working classes of this +country are misrepresented in the eyes of the public of this country +and of the world, as long as they appear to have no leaders in +Parliament except the men who concoct and pass those machine-made +resolutions with which we are so familiar in the reports of Trade +Union Congresses. I am not speaking now about their resolutions on +trade questions, which they thoroughly understand, but about +resolutions on such subjects as foreign politics, the Army and Navy, +and Colonial and Imperial questions, resolutions which are always +upon the same monotonous lines. I do not believe that the working +classes are the unpatriotic, anti-national, down-with-the-army, +up-with-the-foreigner, take-it-lying-down class of Little Englanders +that they are constantly represented to be. I do not believe it for a +moment. I have heard Imperial questions discussed by working men in +excellent speeches, not only eloquent speeches, but speeches showing a +broad grasp and a truly Imperial spirit, and I should like speeches of +that kind to be heard in the House of Commons as an antidote to the +sort of preaching which we get from the present Labour members. And +what I say about the higher posts in the Unionist Army applies equally +to all other ranks. No Unionist member or Unionist candidate is really +well served unless he has a number of men of the working class on what +I may call his political staff. And I say this not merely for +electioneering reasons. This is just one of the cases in which +considerations of party interest coincide--I wish they always or often +did--with considerations of a higher character. There is nothing more +calculated to remove class prejudice and antagonism than the +co-operation of men of different classes on the same body for the same +public end. And there is this about the aims of Unionism, that they +are best calculated to teach the value of such co-operation; to bring +home to men of all classes their essential inter-dependence on one +another, as well as to bring home to each individual the pettiness and +meanness of personal vanity and ambition in the presence of anything +so great, so stately, as the common heritage and traditions of the +British race. + + + + +SWEATED INDUSTRIES + +Oxford, December 5, 1907 + + +This exhibition is one of a series which are being held in different +parts of the country with the object of directing attention, or rather +of keeping it directed, to the conditions under which a number of +articles, many of them articles of primary necessity, are at present +being produced, and with the object also of improving the lot of the +people engaged in the production of those articles. Now this matter is +one of great national importance, because the sweated workers are +numbered by hundreds of thousands, and because their poverty and the +resulting evils affect many beside themselves, and exercise a +depressing influence on large classes of the community. What do we +mean by sweating? I will give you a definition laid down by a +Parliamentary Committee, which made a most exhaustive inquiry into +the subject: "Unduly low rates of wages, excessive hours of work, and +insanitary condition of the workplaces." You may say that this is a +state of things against which our instincts of humanity and charity +revolt. And that is perfectly true, but I do not propose to approach +the question from that point of view to-day. I want to approach it +from the economic and political standpoint. But when I say political I +do not mean it in any party sense. This is not a party question; may +it never become one. The organisers of this exhibition have done what +lay in their power to prevent the blighting and corrosive influence of +party from being extended to it. The fact that the position which I +occupy at this moment will be occupied to-morrow by the wife of a +distinguished member of the present Government (Mrs. Herbert +Gladstone), and on Saturday by a leading member of the Labour Party +(Mr. G.N. Barnes, M.P.), shows that this is a cause in which people of +all parties can co-operate. The more we deal with sweating on these +lines, the more we deal with it on its merits or demerits without +ulterior motive, the more likely we shall be to make a beginning in +the removal of those evils against which our crusade is directed. + +My view is, that the sweating system impoverishes and weakens the +whole community, because it saps the stamina and diminishes the +productive power of thousands of workers, and these in their turn drag +others down with them. "Unduly low rates of wages, excessive hours of +labour, insanitary condition of workplaces"--what does all that mean? +It means an industry essentially rotten and unsound. To say that the +labourer is worthy of his hire is not only the expression of a natural +instinct of justice, but it embodies an economic truth. One does not +need to be a Socialist, not, at least, a Socialist in the sense in +which the word is ordinarily used, as designating a man who desires +that all instruments of production should become common property--one +does not need to be a Socialist in that sense in order to realise that +an industry, which does not provide those engaged in it with +sufficient to keep them in health is essentially unsound. Used-up +capital must be replaced, and of all forms of capital the most +fundamental and indispensable is the human energy necessarily consumed +in the work of production. A sweated industry does not provide for the +replacing of that kind of capital. It squanders its human material. It +consumes more energy in the work it exacts than the remuneration it +gives is capable of replacing. The workers in sweated industries are +not able to live on their wages. As it is, they live miserably, grow +old too soon, and bring up sickly children. But they would not live at +all, were it not for the fact that their inadequate wages are +supplemented, directly, in many cases, by out-relief, and indirectly +by numerous forms of charity. In one way or another the community has +to make good the inefficiency that sweating produces. In one way or +another the community ultimately pays, and it is my firm belief that +it pays far more in the long run under the present system than if all +workers were self-supporting. If a true account could be kept, it +would be found that anything which the community gains by the +cheapness of articles produced under the sweating system is more than +outweighed by the indirect loss involved in the inevitable subsidising +of a sweated industry. That would be found to be the result, even if +no account were taken of the greatest loss of all, the loss arising +from the inefficiency of the sweated workers and of their children, +for sweating is calculated to perpetuate inefficiency and +degeneration. + +The question is: Can anything be done? Of the three related +evils--unduly low rates of wages, excessive hours of labour, and +insanitary condition of work-places--it is evident that the first +applies equally to sweated workers in factories and at home, but the +two others are to some extent guarded against, in factories, by +existing legislation. This is the reason why some people would like to +see all work done for wages transferred to factories. Broadly +speaking, I sympathise with that view. But if it were universally +carried out at the present moment, it would inflict an enormous amount +of suffering and injustice on those who add to their incomes by home +work. Hence the problem is twofold. First, can we extend to workers in +their own homes that degree or protection in respect of hours and +sanitary conditions which the law already gives to workers in +factories? And secondly, can we do anything to obtain for sweated +workers, whether in homes or factories, rates of remuneration less +palpably inadequate? Now it certainly seems impossible to limit the +hours of workers, especially adult workers, in their own homes. More +can be done to ensure sanitary conditions of work. Much has been done +already, so far as the structural condition of dwellings is concerned. +But I am afraid that the measures necessary to introduce what may be +called the factory standard of sanitariness into every room, where +work is being done for wages, would involve an amount of inspection +and interference with the domestic lives of hundreds of thousands of +people which might create such unpopularity as to defeat its own +object. I do not say that nothing more should be attempted in that +direction, quite the reverse; but I say that nothing which can be +attempted in that direction really goes to the root of the evil, which +is the insufficiency of the wage. How can you possibly make it healthy +for a woman, living in a single room, perhaps with children, but even +without, to work twelve or fourteen hours a day for seven or eight +shillings a week, and at the same time to do her own cooking, washing, +and so on. How much food is she likely to have? How much time will be +hers to keep the place clean and tidy? An increase of wages would not +make sanitary regulations unnecessary, but it would make their +observance more possible. + +An increase of wages then is the primary condition of any real +improvement in the lives of the sweated workers. So the point is this. +Can we do anything by law to screw up the remuneration of the +worst-paid workers to the minimum necessary for tolerable human +existence? I know that many people think it impossible, but my answer +is that the fixing of a limit below which wages shall not fall is +already not the exception but the rule in this country. That may seem +a rather startling statement, but I believe I can prove it. Take the +case of the State, the greatest of all employers. The State does not +allow the rates of pay even of its humblest employés to be decided by +the scramble for employment. The State cannot afford, nor can any +great municipality afford, to pay wages on which it is obviously +impossible to live. There would be an immediate outcry. Here then you +have a case of vast extent in which a downward limit of wages is fixed +by public opinion. Take, again, any of the great staple industries of +the country, the cotton industry, the iron and steel industry, and +many others. In the case of these industries rates of remuneration are +fixed in innumerable instances by agreement between the whole body of +employers in a particular trade and district on the one hand and the +whole body of employés on the other. The result is to exclude +unregulated competition and to secure the same wages for the same +work. No doubt there is an element--and this is a point of great +importance--which enters into the determination of wages in these +organised trades, but which does not enter in the same degree into the +determination of the salaries paid by the State. That element is the +consideration of what the employers can afford to pay. This question +is constantly being threshed out between them and the workpeople, +with resulting agreements. The number of such agreements is very +large, and the provisions contained in them often regulate the rate of +remuneration for various classes of workers with the greatest +minuteness. But the great object, and the principal effect of all +these agreements, is this: it is to ensure uniformity of remuneration, +the same wage for the same work, and to protect the most necessitous +and most helpless workers from being forced to take less than the +employers can afford to pay. Broadly speaking, the rate of pay, in +these highly organised industries, is determined by the value of the +work and not by the need of the worker. That makes an enormous +difference. But in sweated industries this is not the case. Sweated +industries are the unorganised industries, those in which there is no +possibility of organisation among the workers. Here the individual +worker, without resources and without backing, is left, in the +struggle of unregulated competition, to take whatever he can get, +regardless of what others may be getting for the same work and-of the +value of the work itself. Hence the extraordinary inequality of +payment for the same kind of work and the generally low average of +payment which are the distinguishing features of all sweated +industries. + +Now, if you have followed this rather dry argument, I shall probably +have your concurrence when I say, that the proposal that the State +should intervene to secure, not an all-round minimum wage, but the +same wages for the same work, and nothing less than the standard rate +of his particular work for every worker, is not a proposition that the +State should do something new, or exceptional, or impracticable. It is +a proposal that the State should do for the weakest and most helpless +trades what the strongly-organised trades already do for themselves. I +cannot see that there is anything unreasonable, much less +revolutionary or subversive, in that suggestion. + +This proposal has taken practical form in a Bill presented to the +House of Commons last session. Whether the measure reached its second +reading or not I do not know. It was a Bill for the establishment of +Wages Boards in certain industries employing great numbers of +workpeople, such as tailoring, shirtmaking, and so on. The industries +selected were those in which the employés, though numerous, are +hopelessly disorganised and unable to make a bargain for themselves. +And the Bill provided that where any six persons, whether masters or +employés, applied to the Home Secretary for the establishment of a +Wages Board, such a Board should be created in the particular industry +and district concerned; that it should consist of representatives of +employers and employed in equal proportions, with an impartial +chairman; and that it should have the widest possible discretion to +fix rates of remuneration. If Wages Boards were established, as the +Bill proposed, they would simply do for sweated trades what is already +constantly being done in organised trades, with no doubt one important +difference, that the decisions of these Boards would be enforceable by +law. Now that no doubt may seem to many of you a drastic proposition. +But I would strongly recommend any one interested in the subject to +study a recently-published Blue-book, one of the most interesting I +have ever read, which contains the evidence given before the House of +Commons Committee on Home Work. That Blue-book throws floods of light +on the conditions which have led to the proposal of Wages Boards, on +the way in which these Boards would be likely to work, and on the +results of the operation of such Boards in the Colony of Victoria, +where they have existed for more than ten years, and now apply to more +than forty industries. The perusal of that evidence would, I feel +sure, remove some at least of the most obvious objections to this +proposed remedy for sweating. + +Many people look askance, and justly look askance, at the interference +of the State in anything so complicated and technical as a schedule of +wages for any particular industry. But the point to bear in mind is +this, that the wages, which under this proposal would be enforceable +by law, would be wages that had been fixed for a particular industry +in a particular district by persons intimately cognisant with all the +circumstances, and, more than that, by persons having the deepest +common interest to avoid anything which could injure the industry. The +rates of remuneration so arrived at would be based on the +consideration of what the employers could afford to pay and yet retain +such a reasonable rate of profit as would lead to their remaining in +the industry. Such a regulation of wages would be as great a +protection to the best employers against the cut-throat competition of +unscrupulous rivals as it would be to the workers against being +compelled to sell their labour for less than its value. There is +plenty of evidence that the regulation of wages would be welcomed by +many employers. And as for the fear sometimes expressed, that it would +injure the weakest and least efficient workers, because, with +increased wages, it would no longer be profitable to employ them, it +must be borne in mind that people of that class are mainly home +workers, and as remuneration for home work must be based on the piece, +there would be no reason why they should not continue to be employed. +No doubt they would not benefit as much as more efficient workers from +increased rates, but _pro tanto_ they would still benefit, and that is +a consideration of great importance. But even if this were not the +case, I would still contend, that it was unjustifiable to allow +thousands of people to remain in a preventable state of misery and +degradation all their lives, merely in order to keep a tenth of their +number out of the workhouse a few years longer. + +I have only one more word to say. I come back to the supreme interest +of the community in the efficiency and welfare of all its members, to +say nothing of the removal of the stain upon its honour and conscience +which continued tolerance of this evil involves. That to my mind is +the greatest consideration of all. That is the true reason, as it +would be the sufficient justification, for the intervention of the +State. And, or my own part, I feel no doubt that, whether by the +adoption of such a measure as we have been considering, or by some +other enactment, steps will before long be taken for the removal of +this national disgrace. + + + + Printed by BALLANTYNE & CO. LIMITED + Tavistock Street, London + + + + * * * * * + +The Fundamental Fallacies of Free Trade + +By L.S. AMERY + +(FELLOW OF ALL SOULS COLLEGE, OXFORD) + +_Price 2s. net._ + + +These "Four Addresses on the Logical Groundwork of the Free Trade +Theory," as they are described by the author on the title-page, are +nothing less than a frontal attack on the dogmas of the Manchester +School, as sacrificing the permanent interests of the nation to the +ephemeral interests of the individual. They are bound on account of +their originality and ability to provoke considerable controversy, and +to compel the Cobdenites to make some attempt at an answer. The +chapters are successively entitled "The Individualist Fallacy," "The +Capitalist Fallacy," "The Trade Fallacy," and "Free Trade Psychology +and Free Trade History." + +This is essentially a book to be read, marked, learned, and inwardly +digested by all serious students of public affairs. + + +THE "NATIONAL REVIEW" OFFICE 23 RYDER STREET, ST. JAMES'S, LONDON, S.W. + + * * * * * + + THE + NATIONAL + REVIEW + + EDITED BY L.J. 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You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Constructive Imperialism + +Author: Viscount Milner + +Release Date: April 22, 2005 [EBook #15681] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK CONSTRUCTIVE IMPERIALISM *** + + + + +Produced by Jonathan Ingram, Jeannie Howse and the Online Distributed +Proofreading (https://www.pgdp.net). + + + + + + +</pre> + + +<hr /> + +<br /> +<br /> + +<div class="tr"> +<p>Transcriber's Note: </p> + +<p>Two advertisements from the beginning of the book +have been moved to the end.</p> +</div> + +<br /> +<br /> +<hr /> + +<a name="Page_1"></a> +<a name="Page_2"></a> + +<a name="Page_3"> +</a><h1>CONSTRUCTIVE<br /> +IMPERIALISM</h1> + +<br /> +<br /> + +<h3>BY</h3> + +<h2>VISCOUNT MILNER, G.C.B.</h2> + +<br /> +<br /> + +<h3>FIVE SPEECHES</h3> +<h5>DELIVERED AT</h5> +<h4><i>TUNBRIDGE WELLS (OCTOBER 24, 1907)<br /> +GUILDFORD (OCTOBER 29, 1907)<br /> +EDINBURGH (NOVEMBER 15, 1907)<br /> +RUGBY (NOVEMBER 19, 1907)<br /> +AND OXFORD (DECEMBER 5, 1907)</i></h4> + +<br /> +<br /> + +<h5>LONDON<br /> +THE NATIONAL REVIEW OFFICE<br /> +23 RYDER STREET, ST. JAMES'S<br /> +1908</h5> + +<br /> +<hr /> +<br /> +<br /> +<a name="toc" id="toc"></a><br /> +<br /> + +<a name="Page_4"></a> + +<h2><a name="Page_5"></a>CONTENTS</h2> + +<div class="centered"> +<table border="0" cellpadding="4" cellspacing="0" width="70%" summary="Table of Contents"> + <tr> + <td colspan="2" class="tdrsc" style="font-size: 85%;">Page</td> + </tr> + <tr> + <td width="80%" class="tdlsc"><a href="#Tariff">Tariff Reform (Tunbridge Wells)</a></td> + <td width="20%" class="tdr">7</td> + </tr> + <tr> + <td class="tdlsc"><a href="#Constructive">A Constructive Policy (Guildford)</a></td> + <td class="tdr">34</td> + </tr> + <tr> + <td class="tdlsc"><a href="#Unionists">Unionists and the Empire (Edinburgh)</a></td> + <td class="tdr">50</td> + </tr> + <tr> + <td class="tdlsc"> <a href="#Social">Unionists and Social Reform (Rugby)</a></td> + <td class="tdr">69</td> + </tr> + <tr> + <td class="tdlsc"> <a href="#Sweated">Sweated Industries (Oxford)</a></td> + <td class="tdr">88</td> + </tr> +</table> +</div> + +<a name="Page_6"></a> +<br /> +<br /> +<br /> +<br /> +<a name="Tariff"></a><hr /> +<br /> + +<h2><a name="Page_7"></a>TARIFF REFORM<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>Tunbridge Wells, October 24, 1907</h3> +<br /> + +<p>As this is a Tariff Reform meeting pure and simple, I am anxious not +to approach the subject in any party spirit or in any spirit of +acrimonious controversy. The question is a difficult and complicated +one, and though I am a strong Tariff Reformer myself I hope I am not +incapable of seeing both sides of the case. I certainly should have +reason to be ashamed if I could not be fair to those whom, for the +sake of brevity and convenience, I will call Free Traders, though I do +not altogether admit the correctness of that designation. My views +were once the same as theirs, and though I long ago felt constrained +to modify them, and had become a Tariff Reformer some years before the +subject attained its present prominence in public discussion, it would +ill become me to <a name="Page_8"></a>treat as foolish arguments which I once found so +convincing or to vilify opinions which I once honestly shared.</p> + +<p>What has happened to me is what I expect has happened to a good many +people. I still admire the great Free Trade writers, the force of +their intellect, the lucidity of their arguments. There can be no +clearer proof of the spell which they exercised over the minds of +their countrymen than the fact that so many leading public men on both +sides of politics remain their disciples to this very day. But for my +own part I have been unable to resist the evidence of facts which +shows me clearly that in the actual world of trade and industry things +do not work out even approximately as they ought to work out if the +Free Trade theory were the counsel of perfection which I once thought +it. And that has led me to question the theory itself, and so +questioned it now seems to me far from a correct statement of the +truth, even from the point of view of abstract inquiry. But I am not +here to engage in abstract arguments. What I want to do is to look at +the question from a strictly practical point of view, but at <a name="Page_9"></a>the same +time a very broad one. I am anxious to bring home to you the place of +Tariff Reform in a sound national policy, for, indeed, it seems to me +very difficult to construct such a policy without a complete revision +of our fiscal arrangements. Now a sound national policy has two +aspects. There are two great objects of practical patriotism, two +heads under which you may sum it up, much as the Church Catechism sums +up practical religion, under the heads of "duty to God" and "duty to +your neighbour." These objects are the strength of the Empire, and the +health, the well-being, the contentedness of the mass of the people, +resting as they always must on steady, properly organised, and fairly +remunerated labour. Remember always, these two things are one; they +are inseparable. There can be no adequate prosperity for the forty or +fifty million people in these islands without the Empire and all that +it provides; there can be no enduring Empire without a healthy, +thriving, manly people at the centre. Stunted, overcrowded town +populations, irregular employment, sweated industries, these things +are as detestable to true Imperialism as they <a name="Page_10"></a>are to philanthropy, +and they are detestable to the Tariff Reformer. His aim is to improve +the condition of the people at home, and to improve it concurrently +with strengthening the foundations of the Empire. Mind you, I do not +say that Tariff Reform alone is going to do all this. I make no such +preposterous claim for it. What I do say is that it fits in better +alike with a policy of social reform at home and with a policy +directed to the consolidation of the Empire than our existing fiscal +system does.</p> + +<p>Now, what is the essential difference between Tariff Reformers and the +advocates of the present system? I must dwell on this even at the risk +of appearing tiresome, because there is so much misunderstanding on +the subject. In the eyes of the advocates of the present system, the +statesman, or at any rate the British statesman, when he approaches +fiscal policy, is confronted with the choice of Hercules. He is +placed, like the rider in the old legend, between the black and the +white horseman. On the one hand is an angel of light called Free +Trade; on the other a limb of Satan called Protection. The one is +entirely and always right; the other <a name="Page_11"></a>is entirely and always wrong. +All fiscal wisdom is summed up in clinging desperately to the one and +eschewing like sin anything that has the slightest flavour of the +other. Now, that view has certainly the merit of simplicity, and +simplicity is a very great thing; but, if we look at history, it does +not seem quite to bear out this simple view. This country became one +of the greatest and wealthiest in the world under a system of rigid +Protection. It has enjoyed great, though by no means unbroken, +prosperity under Free Trade. Side by side with that system of ours +other countries have prospered even more under quite different +systems. These facts alone are sufficient to justify the critical +spirit, which is the spirit of the Tariff Reformer. He does not +believe in any absolute right or wrong in such a matter as the +imposition of duties upon imports. Such duties cannot, he thinks, be +judged by one single test, namely, whether they do or do not favour +the home producer, and be condemned out of hand if they do favour him.</p> + +<p>The Tariff Reformer rejects this single cast-iron principle. He +refuses to bow down <a name="Page_12"></a>before it, regardless of changing circumstances, +regardless of the policy of other countries and of that of the other +Dominions of the Crown. He wants a free hand in dealing with imports, +the power to adapt the fiscal policy of this country to the varying +conditions of trade and to the situation created at any given time by +the fiscal action of others. He has no superstitious objection to +using duties either to increase employment at home or to secure +markets abroad. But on the other hand he does not go blindly for +duties upon foreign imports as so-called Free Traders go blindly +against them, except in the case of articles not produced in this +country, some of which the Free Traders are obliged to tax +preposterously. Tariff Reform is not one-ideaed, rigid, inelastic, as +our existing system is. Many people are afraid of it, because they +think Tariff Reformers want to put duties on foreign goods for the fun +of the thing, merely for the sake of making them dearer. Certainly +Tariff Reformers do not think that cheapness is everything. Certainly +they hold that the blind worship of immediate cheapness may cost the +<a name="Page_13"></a>nation dear in the long run. But, unless cheapness is due to some +mischievous cause, they are just as anxious that we should buy cheaply +as the most ardent Cobdenite, and especially that we should buy +cheaply what we cannot produce ourselves. Talking of cheapness, +however, I must make a confession which I hope will not be +misunderstood by ladies present who are fond of shopping—I wish we +could get out of the way of discussing national economics so much from +the shopping point of view. Surely what matters, from the point of +view of the general well-being, is the productive capacity of the +people, and the actual amount of their production of articles of +necessity, use, or beauty. Everything we consume might be cheaper, and +yet if the total amount of things which were ours to consume was less +we should be not richer but poorer. It is, I think, one of the first +duties of Tariff Reformers to keep people's eyes fixed upon this vital +point—the amount of our national production. It is that which +constitutes the real income of the nation, on which wages and profits +alike depend.</p> + +<p>And that brings me to another point. <a name="Page_14"></a>Production in this country is +dependent on importation, more dependent than in most countries. We +are not self-supplying. We must import from outside these islands vast +quantities of raw materials and of the necessaries of life. That, at +least, is common ground between the Free Trader and the Tariff +Reformer. But the lessons they draw from the fact are somewhat +different. The Free Trader is only anxious that we should buy all +these necessary imports as cheaply as possible. The Tariff Reformer is +also anxious that we should buy them cheaply, but he is even more +anxious to know how we are going to pay for all this vast quantity of +things which we are bound to import. And that leads him to two +conclusions. The first is that, seeing how much we are obliged to buy +from abroad in any case, he looks rather askance at our increasing our +indebtedness by buying things which we could quite easily produce at +home, especially with so many unemployed and half-employed people. The +other, and this is even a more pressing solicitude to him, is that it +is of vital importance to us to look after our external markets, <a name="Page_15"></a>to +make sure that we shall always have customers, and good customers, to +buy our goods, and so to enable us to pay for our indispensable +imports. The Free Trader does not share this solicitude. He has got a +comfortable theory that if you only look after your imports your +exports will look after themselves. Will they? The Tariff Reformer +does not agree with that at all. Imports no doubt are paid for by +exports, but it does not in the least follow that by increasing your +dependence on others you will necessarily increase their dependence on +you. It would be much truer to say: "Look after the exports and the +imports will look after themselves." The more you sell the more you +will be able to buy, but it does not in the least follow that the more +you buy the more you will be able to sell. What business man would go +on the principle of buying as much as possible and say: "Oh, that is +all right. I am sure to be able to sell enough to pay for it." The +first thought of a wise business man is for his markets, and you as a +great trading nation are bound to think of your markets, not only your +markets of <a name="Page_16"></a>to-day but of to-morrow and the day after to-morrow.</p> + +<p>The Free Trade theory was the birth of a time when our imports were +practically all supplemental to our exports, all indispensable to us, +and when, on the other hand, the whole of the world was in need of our +goods, far beyond our power of supplying it. Since then the situation +has wholly altered. At this actual moment, it is true, there is +temporarily a state of things which in one respect reproduces the +situation of fifty years ago. There is for the moment an almost +unlimited demand for some of our goods abroad. But that is not the +normal situation. The normal situation is that there is an increasing +invasion of our markets by goods from abroad which we used to produce +ourselves, and an increasing tendency to exclude our goods from +foreign markets. The Tariff Reform movement is the inevitable result +of these altered circumstances. There is nothing artificial about it. +It is not, as some people think, the work of a single man, however +much it may owe to his genius and his courage, however much it may +suffer, with <a name="Page_17"></a>other good causes, through his enforced retirement from +the field. It is not an eccentric idea of Mr. Chamberlain's. Sooner or +later it was bound to come in any case. It is the common sense and +experience of the people waking up to the altered state of affairs, +beginning to shake itself free from a theory which no longer fits the +facts. It is a movement of emancipation, a twofold struggle for +freedom—in the sphere of economic theory, for freedom of thought, in +the sphere of fiscal policy, for freedom of action.</p> + +<p>And that freedom of action is needed quickly. It is needed now. I am +not doubtful of the ultimate triumph of Tariff Reform. Sooner or +later, I believe, it is sure to achieve general recognition. What does +distress me is the thought of the opportunities we are losing in the +meantime. This year has been marked, disastrously marked, in our +annals by the emphatic and deliberate rejection on the part of our +Government of the great principle of Preferential Trade within the +Empire. All the other self-governing States are in favour of it. The +United Kingdom alone blocks the way. What does that mean? What is it +that <a name="Page_18"></a>we risk losing as long as we refuse to accept the principle of +Preferential Trade, and will certainly lose in the long run if we +persist in that refusal? It is a position of permanent and assured +advantage in some of the greatest and most growing markets in the +world. Preference to British goods in the British dominions beyond the +sea would be a constant and potent influence tending to induce the +people of those countries to buy what they require to buy outside +their own borders from us rather than from our rivals. It means beyond +all doubt and question so much more work for British hands. And the +people of those countries are anxious that British hands should get +it. They have, if I may so express myself, a family feeling, which +makes them wish to keep the business within the family. But business +is business. They are willing to give us the first chance. But if we +will give nothing in return, if we tell them to mind their own +business and not to bother us with offers of mutual concessions, it is +only a question of time, and the same chance will be given to others, +who will not refuse to avail themselves of it.</p> + +<p><a name="Page_19"></a>You see the beginning of the process already in such an event as the +newly-concluded commercial treaty between Canada and France. If we +choose, it is still possible for us not only to secure the preference +we have in Colonial markets, but to increase it. But if we do nothing, +commercial arrangements with other nations who are more far-sighted +will gradually whittle that preference away. To my mind the action of +Canada in the matter of that treaty, perfectly legitimate and natural +though it be, is much more ominous and full of warning to us than the +new Australian Tariff, about which such an unjustifiable outcry has +been made. Rates of duty can be lowered as easily as they can be +raised, but the principle of preference once abandoned would be very +difficult to revive. I am sorry that the Australians have found it +necessary in their own interests to raise their duties, but I would +rather see any of the British Dominions raise its duties and still +give a preference to British goods than lower its duties and take away +that preference. Whatever duties may be imposed by Canada, Australia, +or the other British Dominions, they will still remain <a name="Page_20"></a>great +importers, and with the vast expansion in front of them their imports +are bound to increase. They will still be excellent customers, and the +point is that they should be our customers.</p> + +<p>In the case of Australia the actual extent of the preference accorded +to British goods under the new tariff is not, as has been represented, +of small value to us. It is of considerable value. But what is of far +more importance is the fact that Australia continues to adhere to the +principle of Preference. Moreover, Australia, following the example of +Canada, has established an extensive free list for the benefit of this +country. Let nobody say after this that Australia shows no family +feeling. I for one am grateful to Australia, and I am grateful to that +great Australian statesman, Mr. Deakin, for the way in which, in the +teeth of discouragement from us, he has still persisted in making the +principle of preferential trade within the Empire an essential feature +of the Australian Tariff.</p> + +<p>Preference is vital to the future growth of British trade, but it is +not only trade which is affected by it. The idea which lies at the +root <a name="Page_21"></a>of it is that the scattered communities, which all own +allegiance to the British Crown, should regard and treat one another +not as strangers but as kinsmen, that, while each thinks first of its +own interests, it should think next of the interests of the family, +and of the rest of the world only after the family. That idea is the +very corner-stone of Imperial unity. To my mind any weakening of that +idea, any practical departure from it, would be an incalculable loss +to all of us. I should regard a readjustment of our own Customs duties +with the object of maintaining that idea, even if such readjustment +were of some immediate expense to ourselves, as I hope to show you +that it would not be, as a most trifling and inconsiderable price to +pay for a prize of infinite value. I am the last man to contend that +preferential trade alone is a sufficient bond of Empire. But I do +contend that the maintenance or creation of other bonds becomes very +difficult, if in the vitally important sphere of commerce we are to +make no distinction between our fellow-citizens across the seas and +foreigners. Closer trade relations involve closer relations in all +other respects. An <a name="Page_22"></a>advantage, even a slight advantage, to Colonial +imports in the great British market would tend to the development of +the Colonies as compared with the foreign nations who compete with +them. But the development of the British communities across the seas +is of more value to us than an equivalent development of foreign +countries. It is of more value to our trade, for, if there is one +thing absolutely indisputable, it is that these communities buy ever +so much more of us per head than foreign nations do. But it is not +only a question of trade; it is a question of the future of our +people. By encouraging the development of the British Dominions beyond +the seas we direct emigration to them in preference to foreign lands. +We keep our people under the flag instead of scattering them all over +the world. We multiply not merely our best customers but our fellow +citizens, our only sure and constant friends.</p> + +<p>And now is there nothing we can do to help forward this great object? +Is it really the case, as the Free Traders contend, that in order to +meet the advances of the other British <a name="Page_23"></a>States and to give, as the +saying is, Preference for Preference, we should be obliged to make +excessive sacrifices, and to place intolerable burdens on the people +of this country? I believe that this is an absolute delusion. I +believe that, if only we could shake off the fetters of a narrow and +pedantic theory, and freely reshape our own system of import duties on +principles of obvious common sense, we should be able at one and the +same time to promote trade within the Empire, to strengthen our hands +in commercial negotiations with foreign countries, and to render tardy +justice to our home industries.</p> + +<p>The Free Trader goes on the principle of placing duties on a very few +articles only, articles, generally, of universal consumption, and of +making those duties very high ones. Moreover, with the exception of +alcohol, these articles are all things which we cannot produce +ourselves. I do not say that the system has not some merits. It is +easy to work, and the cost of collection is moderate. But it has also +great defects. The system is inelastic, for the duties being so few +and so heavy it is difficult to raise them in case of emergency +without <a name="Page_24"></a>checking consumption. Moreover, the burden of the duties +falls entirely on the people of this country, for the foreign +importer, except in the case of alcoholic liquors, has no home +producer to compete with, and so he simply adds the whole of the duty +to the price of the article. Last, but not least, the burden is +inequitably distributed. It would be infinitely fairer, as between +different classes of consumers, to put a moderate duty on a large +number of articles than to put an enormous duty on two or three. But +from that fairer and more reasonable system we are at present debarred +by our pedantic adhesion to the rule that no duty may be put on +imported articles unless an equivalent duty is put on articles of the +same kind produced at home. Why, you may well ask, should we be bound +by any such rule? I will tell you. It is because, unless we imposed +such an equivalent duty, we should be favouring the British producer, +and because under our present system every other consideration has got +to give way to this supreme law, the "categorical imperative" of the +Free Trader, that we must not do anything which could by any +<a name="Page_25"></a>possibility in the remotest degree benefit the British producer in +his competition with the foreigner in our home market. It is from the +obsession of this doctrine that the Tariff Reformer wishes to liberate +our fiscal policy. He approaches this question free from any doctrinal +prepossessions whatever. Granted that a certain number of millions +have to be raised by Customs duties, he sees before him some five to +six hundred millions of foreign imports on which to raise them, and so +his first and very natural reflection is, that by distributing duties +pretty equally over this vast mass of imported commodities he could +raise a very large revenue without greatly enhancing the price of +anything. Our present system throws away, so to speak, the advantage +of our vast and varied importation by electing to place the burden of +duties entirely on very few articles. As against this system the +Tariff Reformer favours the principle of a widespread tariff, of +making all foreign imports pay, but pay moderately, and he holds that +it is no more than justice to the British producer that all articles +brought to the British market should contribute to <a name="Page_26"></a>the cost of +keeping it up. It is no answer to say that it is the British consumer +who would pay the duty, for even if this were invariably true, which +it is not, it leaves unaffected the question of fair play between the +British producer and the foreign producer. The price of the home-made +article is enhanced by the taxes which fall upon the home makers, and +which are largely devoted to keeping up our great open market, but the +price of the foreign article is not so enhanced, though it has the +full benefit of the open market all the same. Moreover, the price of +the home-made article is also enhanced by the many restrictions which +we place, and rightly place, on home manufacture in the interests of +the workers—restrictions as to hours, methods of working, sanitary +conditions, and so forth—all excellent, all laudable, but expensive, +and from which the foreign maker is often absolutely, and always +comparatively, free. The Tariff Reformer is all for the open market, +but he is for fair play as between those who compete in it, and he +holds that even cheapness ought not to be sought at the expense of +unfairness to the British producer.</p> + +<p><a name="Page_27"></a>I say, then, that the Tariff Reformer starts with the idea of a +moderate all-round tariff. But he is not going to ride his principle +to death. He is essentially practical. There are some existing duties, +like those on alcoholic liquors, the high rate of which is justified +for other than fiscal reasons. He sees no reason to lower these +duties. On the other hand, there are some articles, such as raw +cotton, which compete with no British produce, and even a slight +enhancement of the price of which might materially injure our export +trade. The Tariff Reformer would place these on a free list, for he +feels that, however strong may be the argument for moderate all-round +duties as a guiding rule, it is necessary to admit exceptions even to +the best of rules, and it is part of his creed that we are bound to +study the actual effect of particular duties both upon ourselves and +upon others. No doubt that means hard work, an intimate acquaintance +with the details of our industry and trade, an eye upon the +proceedings of foreign countries. A modern tariff, if it is to be +really suitable to the requirements of the nation adopting it, must be +the work of experts. <a name="Page_28"></a>But is that any argument against it? Are we less +competent to make a thorough study of these questions than other +people, as for instance the Germans, or are we too lazy? Free Traders +make fun of a scientific tariff, but why should science be excluded +from the domain of fiscal policy, especially when the necessity of it +is so vigorously and so justly impressed upon us in every other field? +It is not only the War Office which has got to get rid of antiquated +prejudices and to open its eyes to what is going on in the world. Our +financial departments might reasonably be asked to do the same, and +they are quite equally capable, and I have no doubt equally willing, +to respond to such an appeal, instead of leaving the most thorough, +the most comprehensive, and the most valuable inquiry into the effects +of import duties, which has ever been made in this country, to a +private agency like the Tariff Commission.</p> + +<p>I do not think it is necessary for me to point out how a widespread +tariff, besides those other advantages which I have indicated, would +strengthen our hands in commercial policy. <a name="Page_29"></a>In the first place, it +would at once enable us to meet the advances of the other States of +the Empire, and to make the British Empire in its commercial aspect a +permanent reality. To do this it would not be necessary, nor do I +think it would be right, to exempt goods from the British Dominions +entirely from the duties to which similar goods coming from foreign +lands are subject. Our purpose would be equally well served by doing +what the Colonies do, and having two scales of duty, a lower one for +the products of all British States and Dependencies, a higher one for +those of the outside world. The amount of this preference would be a +matter of bargain to be settled by some future Imperial Conference, +not foredoomed to failure, and preceded by careful preliminary +investigation and negotiations. It might be twenty-five, or +thirty-three, or even fifty per cent. And whatever it was, I think we +should reserve the right also to give a preference, but never of the +same amount, to any foreign country which was willing to give us some +substantial equivalent. It need not be a general preference; it might +be the removal or reduction of <a name="Page_30"></a>some particular duties. I may say I do +not myself like the idea of engaging in tariff wars. I do not believe +in prohibitive or penal tariffs. But I do believe in having something +to give to those who treat us well, something to withhold from those +who treat us badly. At present, as you are well aware, Great Britain +is the one great nation which is treated with absolute disregard by +foreign countries in framing their tariffs. They know that however +badly they treat us they have nothing to lose by it, and so we go to +the wall on every occasion.</p> + +<p>And now, though there is a great deal more to be said, I feel I must +not trespass much further on your patience. But there is one objection +to Tariff Reform which is constantly made, and which is at once so +untrue and so damaging, that before sitting down I should like to say +a few words about it. We are told that this is an attempt to transfer +the burden of a part of our taxation from the shoulders of the rich to +those of the poor. If that were true, it would be fatal to Tariff +Reform, and I for one would have nothing to do with it. But it is not +true. There is no proposal to reduce <a name="Page_31"></a>and I believe there is no +possibility of reducing, the burden which at present falls on the +shoulders of the upper and middle classes in the shape of direct +taxation. On the other hand, I do not believe there is much room for +increasing it—though I think it can be increased in one or two +directions—without consequences which the poorer classes would be the +first to feel. Excise duties, which are mainly paid by those classes, +are already about as high as they can be. It follows that for any +increase of revenue, beyond the ordinary growth arising from increase +of wealth and population, you must look, at least to a great extent, +to Customs duties. And the tendency of the time is towards increased +expenditure, all of it, mind you—and I do not complain of the +fact—due to the effort to improve the condition of the mass of the +people. It is thus no question of shifting existing burdens, it is a +question of distributing the burden of new expenditure of which the +mass of the people will derive the benefit. And if that new +expenditure must, as I think I have shown, be met, at least in large +part, by Customs duties, which method of raising these <a name="Page_32"></a>duties is more +in the interest of the poorer classes—our present system, which +enhances enormously the price of a few articles of universal +consumption like tea and sugar and tobacco, or a tariff spread over a +much greater number of articles at a much lower rate? Beyond all doubt +or question the mass of the people would be better off under the +latter system. Even assuming—as I will for the sake of argument, +though I do not admit it—that the British consumer pays the whole of +the duty on imported foreign goods competing with British goods, is it +not evident that the poorer classes of the community would pay a +smaller proportion of Customs duties under a tariff which included a +great number of foreign manufactured articles, at present entirely +free, and largely the luxuries of the rich, than they do, when Customs +duties are restricted to a few articles of universal consumption?</p> + +<p>And that is at the same time the answer to the misleading, and often +dishonest, outcry about "taxing the food of the people," about the big +loaf and little loaf, and all the rest of it. The construction of a +sensible all-round tariff <a name="Page_33"></a>presents many difficulties, but there is +one difficulty which it does not present, and that is the difficulty +of so adjusting your duties that the total proportion of them falling +upon the wage-earning classes shall not be increased. I for one regard +such an adjustment as a postulate in any scheme of Tariff Reform. And +just one other argument—and I recommend it especially to those +working-class leaders who are so vehement in their denunciation of +Tariff Reform. Is it of no importance to the people whom they +especially claim to represent that our fiscal policy should lean so +heavily in favour of the foreign and against the British producer? If +they regard that as a matter of indifference, I think they will come +to find in time that the mass of the working classes do not agree with +them. But be that as it may, it is certain that I, for one, do not +advocate Tariff Reform in the interests of the rich, but in the +interests of the whole nation, and therefore necessarily of the +working classes, who are the majority of the nation.</p> + +<br /> +<br /> +<br /> +<br /> +<a name="Constructive"></a><hr /> +<br /> +<h2><a name="Page_34"></a>A CONSTRUCTIVE POLICY<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>Guildford, October 29, 1907</h3> +<br /> + +<p>I am very sensible of the honour of being called on to reply for the +Unionist cause, but I approach the task with some diffidence, not to +say trepidation. I feel very conscious that I am not a very good +specimen of a party man. It is not that I do not hold strong opinions +on many public questions—in fact, that is the very trouble. My +opinions are too strong to fit well into any recognised programme. I +suffer from an inveterate habit, which is partly congenital, but which +has been developed by years spent in the service of the Crown, of +looking at public questions from other than party points of view. And +I am too old to unlearn it.</p> + +<p>For a man so constituted there is evidently only a limited <i>rôle</i> in +political life. But he may have his uses all the same, if you take +<a name="Page_35"></a>him for what he is, and not for what he is not, and does not pretend +to be. If he does not speak with the weight and authority of a party +leader, he is at least free from the embarrassments by which a party +leader is beset, and unhampered by the caution which a party leader is +bound to exercise. He commits nobody but himself, and therefore he can +afford to speak with a bluntness which is denied to those whose +utterances commit many thousands of other people. And I am not sure +whether the present moment is not one at which the unconventional +treatment of public questions may not be specially useful, so, whether +it be as an independent Unionist or as a friendly outsider—in +whichever light you like to regard me—I venture to contribute my mite +to the discussion.</p> + +<p>Having now made my position clear, I will at once plunge <i>in medias +res</i> with a few artless observations. You hear all this grumbling +which is going on just now against the Unionist leader. Well, +gentlemen, a party which is in low water always does grumble at its +leader. I have known this sort of thing happen over <a name="Page_36"></a>and over again in +my own lifetime. And the consequence is, it is all like water on a +duck's back to me; it makes no impression on me whatsoever. I remember +as long back as the late sixties and early seventies the Conservative +party were ceaselessly grumbling at Lord Beaconsfield, then Mr. +Disraeli, right up to his greatest victory and the commencement of his +longest tenure of power—almost up to the moment when he became the +permanent idol of the Conservative party. I remember how the Liberals +grumbled at Mr. Gladstone from 1873 and 1874 almost up to the opening +of the Midlothian campaign. Again, I remember how the Conservatives +grumbled at Lord Salisbury from the first moment of his accession to +the leadership right up to 1885. I can recall as well as if it were +yesterday a young Tory friend of mine—he has become a distinguished +man since, and I am not going to give him away—telling me, who was at +that time a Liberal, in the year of grace 1883 or 1884, that it was +absolutely hopeless for the Tory party ever to expect to come back +into power with such a leader as <a name="Page_37"></a>Lord Salisbury. He called him a +"Professor." He said, "No doubt he is a very able man and an excellent +speaker, but he is a man of science. He has no popular gifts whatever. +There is not a ghost of a chance of a Conservative victory so long as +he is in command." Yet that was not more than two years before Lord +Salisbury commenced a series of Premierships which kept him, for some +thirteen and a half years out of seventeen, at the helm of the State.</p> + +<p>With all these experiences to look back upon it is really impossible +for me to be much affected by the passing wave of dissatisfaction with +Mr. Balfour. Men of first-rate ability and character are rare. Still +rarer are men who, having those qualities, also have the knack of +compelling the attention and respect even of a hostile House of +Commons. When a party possesses a leader with all these gifts, it is +not likely to change him in a hurry.</p> + +<p>But if I refuse to take a gloomy view of the Unionist leadership, I +must admit that I am not altogether an optimist about the immediate +prospects of Unionism. There is no <a name="Page_38"></a>doubt a bright side to the picture +as well as a less encouraging one. The bright side, from the party +point of view, is afforded by the hopeless chaos of opinion in the +ranks of our opponents—by the total absence of any clear conviction +or definite line whatever in the counsels of the Government, which +causes Ministers to dash wildly from measure to measure in +endeavouring to satisfy first one section and then another section of +their motley following, and which prevents them from ever giving +really adequate attention to any one of their proposals.</p> + +<p>I am not speaking of Ministers individually. Granted that some of them +have done excellent work at the heads of their several departments—I +think it would not be fair to deny that. I am thinking of their +collective policy, and especially of their legislative efforts. For +monuments of clumsy opportunism, commend me to the legislative +failures, and, for the matter of that, to most of the legislative +achievements, of the last two years.</p> + +<p>So far so good. Unionists cannot complain of what the Government is +doing for them. And on the negative side of policy—in their duty <a name="Page_39"></a>as +a mere Opposition—their course is clear. It is a fundamental article +of their faith to maintain the authority of the Imperial Parliament in +Ireland. But that authority can be set aside by the toleration of +lawlessness just as much, and in a worse way, than by the repeal of +the Union. And such toleration is the rule to-day. There may be no +violent crime, but there is open and widespread defiance of the law +and interference with the elementary rights of law-abiding people. It +is a demoralising state of affairs, and one to which no good citizen +in any part of the United Kingdom, however little he may be personally +affected by it, can afford to be indifferent. Once let it be granted +that any popular movement, which is not strong enough to obtain an +alteration of the law by regular means, can simply set the law aside +in practice, and you are at the beginning of general anarchy.</p> + +<p>Unionists have to fight for a restoration of the respect for law in +Ireland in the interest of the whole kingdom. And they may have to +fight also, it appears, against the abrogation of our existing +constitution in favour of a system <a name="Page_40"></a>of quinquennial dictatorships. For +that and nothing else is involved in the proposal to reduce the House +of Lords to impotence and put nothing in its place. I am not concerned +to represent the present constitution of the House of Lords as +perfect. I have always been of opinion that a more representative and +therefore a stronger second chamber was desirable. But that we can +afford to do without any check on the House of Commons, especially +since the removal of all checks upon the power of those who from time +to time control the House of Commons to rush through any measures they +please without the possibility of an appeal to the people—that is a +proposition which no man with any knowledge of history or any respect +for constitutional government can possibly defend. To resist such a +proposal as that is not fighting for a party; it is not fighting for a +class. It is fighting for the stability of society, for the +fundamental rights of the whole nation.</p> + +<p>I say, then, that on the negative side, in the things it is called +upon to resist, the Unionist party is strong and fortunate. But are we +to <a name="Page_41"></a>be content with that? Should we not all like to feel that we +appealed for the confidence of the people on the merits of our own +policy, and not merely on the demerits of our opponents? That, I take +it, is the feeling at the bottom of what men are saying on all hands +just now—that the Unionist party ought to have a constructive policy. +Now, if by a constructive policy is meant a string of promises, a sort +of Newcastle programme, then I can well imagine any wise statesmen, +especially if they happened to be in Opposition, thinking twice before +they committed themselves to it. But if by a constructive policy is +meant a definite set of principles, a clear attitude to the questions +which most agitate the public mind, a sympathetic grasp of popular +needs, and a readiness to indicate the extent to which, and the lines +on which, you think it possible and desirable to satisfy them—then I +agree that the Unionist party ought to have such a policy. And I +venture to say that, if it has such a policy, the fact is not yet +sufficiently apparent to the popular mind, or, perhaps, I should say, +speaking as one of the populace, to my mind.</p> + +<p><a name="Page_42"></a>Many people think that it is sufficient for the purpose—that it is +possible to conduct a victorious campaign with the single watchword +"Down with Socialism." Well, I am not fond of mere negatives. I do not +like fighting an abstract noun. My objection to anti-Socialism as a +platform is that Socialism means so many different things. On this +point I agree with Mr. Asquith. I will wait to denounce Socialism till +I see what form it takes. Sometimes it is synonymous with robbery, and +to robbery, open or veiled, boldly stalking in the face of day or +hiding itself under specious phrases, Unionists are, as a matter of +course, opposed. But mere fidelity to the eighth Commandment is not a +constructive policy, and Socialism is not necessarily synonymous with +robbery. Correctly used, the word only signifies a particular view of +the proper relation of the State to its citizens—a tendency to +substitute public for private ownership, or to restrict the freedom of +individual enterprise in the interests of the public. But there are +some forms of property which we all admit should be public and not +private, and the freedom of individual enterprise <a name="Page_43"></a>is already limited +by a hundred laws. Socialism and Individualism are opposing +principles, which enter in various proportions into the constitution +of every civilised society; it is merely a question of degree. One +community is more Socialistic than another. The same community is more +Socialistic at one time than at another. This country is far more +Socialistic than it was fifty years ago, and for most of the changes +in that direction the Unionist and the Tory party are responsible. The +Factory Acts are one instance; free education is another. The danger, +as it seems to me, of the Unionist party going off on a crusade +against Socialism is that in the heat of that crusade it may neglect, +or appear to neglect, those social evils of which honest Socialism is +striving, often, no doubt, by unwise means, to effect a cure. If the +Unionist party did that, it would be unfaithful to its own best +traditions from the days of "Sybil" and "Coningsby" to the present +time.</p> + +<p>The true antidote to revolutionary Socialism is practical social +reform. That is no claptrap phrase—although it may sound so; there is +a great historical truth behind it. The <a name="Page_44"></a>revolutionary Socialist—I +call him revolutionary because he wants to alter the whole basis of +society—would like to get rid of all private property, except, +perhaps, our domestic pots and pans. He is averse from private +enterprise. He is going absurdly too far; but what gave birth to his +doctrine? The abuse of the rights of private property, the cruelty and +the failure of the scramble for gain, which mark the reign of a +one-sided Individualism. If we had not gone much too far in one +direction, we should not have had this extravagant reaction in the +other. But do not let us lose our heads in face of that reaction. +While resisting the revolutionary propaganda, let us be more, and not +less, strenuous in removing the causes of it.</p> + +<p>You may think I am now talking pure Radicalism. Well, but it is not to +the objects which many Radicals have at heart that we, as Unionists, +need take exception. Why should we make them a present of those good +objects? Old age pensions; the multiplication of small +landholders—and, let me add, landowners; the resuscitation of +agriculture; and, on the other hand, better housing in <a name="Page_45"></a>our crowded +centres; town planning; sanitary conditions of labour; the extinction +of sweating; the physical training of the people; continuation +schools—these and all other measures necessary to preserve the +stamina of the race and develop its intelligence and productive +power—have we not as good a right to regard these as our objects, +aye, and in many cases a better right, than the supporters of the +Government have?</p> + +<p>It is not these objects which we deprecate. On the contrary, they have +our ardent sympathy. What we do deprecate is the spirit in which they +are so often preached and pursued. No progress is going to be +made—quite the contrary—by stirring up class hatred or trying to rob +Peter in order to pay Paul. It is not true that you cannot benefit one +class without taking from another class—still less true that by +taking from one you necessarily benefit another. The national income, +the sum total of all our productive activities, is capable of being +enormously increased or diminished by wise or foolish policy. For it +does not only depend on the amount of capital and labour. <a name="Page_46"></a>A number of +far subtler factors enter into the account—science, organisation, +energy, credit, confidence, the spirit in which men set about their +business. The one thing which would be certain to diminish that +income, and to recoil on all of us, would be that war of classes which +many people seem anxious to stir up. Nothing could be more fatal to +prosperity, and to the fairest hopes of social progress, than if the +great body of the upper and middle classes of the community had cause +to regard that progress as indissolubly associated with an attack upon +themselves. And that is why, if reforms such as I have indicated are +costly—as they will be costly—you must find some better way of +providing for them than by merely giving another turn to the +income-tax screw, or just adding so much per cent. to the estate duty.</p> + +<p>From my point of view, social reform is a national affair. All classes +benefit by it, not only those directly affected. And therefore all +should contribute according to their means. I do not in any way object +to the rich being made to contribute, even for purposes in which they +are not directly interested. What I do object <a name="Page_47"></a>to is that the great +body of the people should not contribute to them. It is thoroughly +vicious in principle to divide the nation, as many of the Radical and +Labour men want to divide it, into two sections—a majority which only +calls the tune, and a minority which only pays the piper.</p> + +<p>I own I am aghast at the mean opinion which many politicians seem to +have of the mass of their working fellow countrymen, when they +approach them with this crude sort of bribery, offering them +everything for nothing, always talking to them of their claims upon +the State, and never of their duties towards it. This is a democratic +country. It is their State and their Empire—theirs to possess, theirs +to control, but theirs also to support and to defend. And I for one +have such faith in the common sense and fair-mindedness of the British +people that I believe you have only to convince them that you have a +really sound national policy, and they will rally to it, without +having to be bought by promises of a penny off this and twopence off +the other—a sort of appeal, I regret to say, which is not only +confined to <a name="Page_48"></a>Radical orators, but in which Unionists also are +sometimes too apt to indulge.</p> + +<p>And, now, gentlemen, only one word in conclusion—a brief and +inadequate reference to a vast subject, but one to which I am at all +times and seasons specially bound to refer. After all, my chief +quarrel with the Radical party—not with all of them—I do not say +that for a moment—but with a far too large and influential +section—is their anti-patriotism. I use the word advisedly. It is not +that they are unpatriotic in the sense of having no affection for +their country. It is that they are deliberately and on principle—I do +not asperse their motives; I do not question their sincerity and +conviction—anti-patriotic, opposed to national as distinct from +cosmopolitan ideals. They are not zealous for national defence; they +have no faith in the Empire; they love to show their impartiality by +taking sides against their own country; they object to their children +being taught respect for the flag. But we Unionists are not +cosmopolitans, but Britons. We have no envy or ill-will towards other +nations; a man is not a worse neighbour because he loves his own +<a name="Page_49"></a>family. But we do hold that it is not our business to look after +others. It is our business to look after ourselves and our +dependencies, and the great kindred communities who own allegiance to +the British flag. We want to draw closer to them, to stand together; +and we believe that the strength and the unity of the British Empire +are of vital and practical importance to every citizen. In all our +propaganda, and in all our policy, let us continue to give that great +principle a foremost place.</p> + +<br /> +<br /> +<br /> +<br /> +<a name="Unionists"></a><hr /> +<br /> +<h2><a name="Page_50"></a>UNIONISTS AND THE EMPIRE<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>Edinburgh, November 15, 1907</h3> +<br /> + +<p>I am greatly reassured by the very kind reception which you have just +given me. To tell the truth, I had been feeling a little alarmed at +the fate which might await me in Edinburgh. From a faithful perusal of +the Radical Press I had been led to believe that Scotland was seething +with righteous indignation against that branch of the Legislature of +which I am, it is true, only a humble and very recent member, but yet +a member, and therefore involved in the general condemnation of the +ruthless hereditary tyrants and oppressors of the people, the +privileged landowning class, which is alleged to be so out of sympathy +with the mass of their fellow-countrymen, although, oddly enough, it +supplies many of the most popular candidates, not only of one party, +at any General Election. <a name="Page_51"></a>Personally, I feel it rather hard to be +painted in such black colours. There is no taint of hereditary +privilege about me. I am not—I wish I were—the owner of broad acres, +and I am in no way conscious of belonging to a specially favoured +class. There are a great many of my fellow members in the House of +Lords who are in the same position, and who sit there, not by virtue +of any privilege, but by virtue of their services, or, let me say in +my own case, supposed services, to the State. And while we sit +there—and here I venture, with all humility, to speak for all the +members of that body, whether hereditary or created—we feel that we +ought to deal with the questions submitted to us to the best of our +judgment and conscience, without fear of the consequences to ourselves +and without allowing ourselves to be brow-beaten for not being +different from what we are. We believe that we perform a useful and +necessary function. We believe that a Second Chamber is essential to +the good government of this country. We do not contend—certainly I am +myself very far from contending—that the existing Second Chamber is +the best <a name="Page_52"></a>imaginable. Let there be a well-considered reform of the +House of Lords, or even, if need be, an entirely different Second +Chamber. But until you have got this better instrument, do not throw +away the instrument which you have—the only defence, not of the +privileges of a class, but of the rights of the whole nation, against +hasty, ill-considered measures and against the subordination of +permanent national interests to the temporary exigencies of a party.</p> + +<p>It is said that there is a permanent Conservative majority in the +House of Lords. But then every Second Chamber is, and ought to be, +conservative in temper. It exists to exercise a restraining influence, +to ensure that great changes shall not be made in fundamental +institutions except by the deliberate will of the nation, and not as +the outcome of a mere passing mood. And if the accusation is, that the +House of Lords is too Conservative in a party sense, which is a +different thing, I admit, from being Conservative in the highest and +best sense, that points not to doing away with the Second Chamber, but +to making such a change in its composition as, while leaving it still +<a name="Page_53"></a>powerful, still, above all, independent, will render it more +representative of the permanent mind of the nation.</p> + +<p>But let me be permitted to observe that the instance relied on to +prove that the House of Lords is in the pocket of the Conservative +party is a very unfortunate instance. What is its offence? It is said +that the Lords rejected the Scottish Land Bill. But they did not +reject the Scottish Land Bill. They were quite prepared to accept a +portion of the Bill, and it is for the Government to answer to the +people interested in that portion for their not having received the +benefits which the Bill was presumably intended to bestow on them. +What the Government did was to hold a pistol at the head of the House +of Lords, and to say that they must either accept the whole straggling +and ill-constructed measure as it stood, or be held up to public odium +for rejecting it. But when the Bill was looked at as a whole, it was +found to contain principles—novel principles as far as the great part +of Scotland was concerned, bad principles, as the experience of +Ireland showed—which the House of Lords, <a name="Page_54"></a>and not only the +Conservatives in the House of Lords, were not prepared to endorse. Was +it Conservative criticism which killed the Bill? It was riddled with +arguments by a Liberal Peer and former Liberal Prime +Minister—arguments to which the Government speakers were quite +unable, and had the good sense not even to attempt, to reply. And that +is the instance which is quoted to prove that the House of Lords is a +Tory Caucus!</p> + +<p>Now, before leaving this question of the House of Lords, let me just +say one word about its general attitude. I have not long been a member +of that assembly. I do not presume to take much part in its +discussions. But I follow them, and I think I follow them with a +fairly unprejudiced mind. On many questions I am perhaps not in accord +with the views of the majority of the House. But what strikes me about +the House of Lords is that it is a singularly independent assembly. It +is not at the beck and call of any man. It is a body which does not +care at all about party claptrap, but which does care a great deal +about a good argument, from whatever quarter <a name="Page_55"></a>it may proceed. +Moreover, I am confident that the great body of its members are quite +alive to the fact that they cannot afford to cast their votes merely +according to their individual opinions and personal prejudices—that +they are trustees for the nation, and that while it is their duty to +prevent the nation being hustled into revolution, as but for them it +would have been hustled into Home Rule in 1893, they have no right to +resist changes upon which the nation has clearly and after full +deliberation set its mind. And when the Prime Minister says that it is +intolerable arrogance on the part of the House of Lords to pretend to +know better what the nation wishes than the House of Commons, I can +only reply that the proof of the pudding is in the eating. In 1893 the +House of Commons said that the nation wished Home Rule. The House of +Lords had the intolerable arrogance to take a different view. Well, +within less than two years the question was submitted to the nation; +and who proved to be right?</p> + +<p>I regret to have had to dwell at such length upon this particular +topic. But it seems to me <a name="Page_56"></a>that we have no choice in the matter. If +the Government succeed in their attempt to divert the attention of the +nation from matters of the greatest interest at home and abroad in +order to involve us all in a constitutional struggle on a false issue, +we must be prepared to meet them. But I do not wish to waste the rare +opportunity afforded to me to-night of addressing this great and +representative Scottish audience by talking exclusively about this +regrettable manoeuvre. There is something I am anxious to say to you +about the future of the Unionist party. I do not claim to lay down a +policy for that or for any party. I am not, by temperament or +antecedents, a good party man. But I want to be allowed, as a private +citizen, to point out what are the great services which I think the +Unionist party can render to the nation at the present very critical +juncture in its history. The Unionist party has a splendid record in +the past. For twenty years it has saved the United Kingdom from +disruption. It has preserved South Africa for the Empire; and, greatly +as I feel and know, that the results of the efforts and <a name="Page_57"></a>sacrifices of +the nation have been marred and impaired by the disastrous policy of +the last two years, South Africa is still one country under the +British flag. And all the time, in spite of foreign war and domestic +sedition, the Unionist party has pursued a steady policy of practical +social reform, and the administrative and legislative record of the +last twenty years will compare favourably with that of any period of +our history.</p> + +<p>But no party can afford to rely upon its past achievements. How is the +Unionist party going to confront the great problems of the present +day? The greatest of these problems, as I shall never cease to preach +to my countrymen, is the maintenance of the great heritage which we +owe to the courage, the enterprise, and the self-sacrifice of our +forefathers, who built up one of the greatest Empires in history by, +on the whole, the most honourable means. The epoch of expansion is +pretty nearly past, but there remains before us a great work of +development and consolidation. And that is a work which should appeal +especially to Scotsmen. The Scottish people have borne a great <a name="Page_58"></a>part, +great out of proportion to their numbers, in building up our common +British heritage. They are taking a foremost part in it to-day. All +over the world, as settlers in Canada, in Australia, or in South +Africa, as administrators in India and elsewhere, they are among the +sturdiest pillars on which the great Imperial fabric rests. I am not +talking in the air. I am speaking from my personal experience, and +only saying in public here to-night what I have said in private a +hundred times, that as an agent of my country in distant lands I have +had endless occasion to appreciate the support given to the British +cause by the ability, the courage, the shrewd sense and the broad +Imperial instinct of many Scotsmen. And therefore I look with +confidence to a Scottish audience to support my appeal for continuous +national effort in making the most of the British Empire. I say this +is not a matter with regard to which we can afford to rest on our +laurels. We must either go forward or we shall go back. And especially +ought we to go forward in developing co-operation, on a basis of +equality and partnership, with the great self-governing <a name="Page_59"></a>communities +of our race in the distant portions of the world, else they will drift +away from us. Do not let us think for a moment that we can afford such +another fiasco as the late Colonial Conference. Do not let us imagine +for a moment that we can go to sleep over the questions then raised, +and not one of them settled, for four years, only to find ourselves +unprepared when the next Conference meets. A cordial social welcome, +many toasts, many dinners, are all very well in their way, but they +are not enough. What is wanted is a real understanding of what our +fellow countrymen across the seas are driving at, and a real attempt +to meet them in their efforts to keep us a united family. All that our +present rulers seem able to do is to misunderstand, and therefore +unconsciously to misrepresent—I do not question their good +intentions, but I think they are struck with mental blindness in this +matter—to misrepresent the attitude of the colonists and greatly to +exaggerate the difficulties of meeting them half-way. The speeches of +Ministers on a question like that of Colonial Preference leave upon me +the most deplorable impression. One <a name="Page_60"></a>would have thought that, if they +could not get over the objections which they feel to meeting the +advances of our kinsmen, they would at least show some sort of regret +at their failure. But not a bit of it. Their one idea all along has +been to magnify the difficulties in the way in order to make party +capital out of the business. They saw their way to a good cry about +"taxing the food of the people," the big and the little loaf, and so +forth, and they went racing after it, regardless of everything but its +electioneering value. From first to last there has been the same +desire to make the worst of things, sometimes by very disingenuous +means. First of all it was said that there was "no Colonial offer." +But when the representatives of the Colonies came here, and all in the +plainest terms offered us preference for preference, this device +evidently had to be abandoned. So then it was asserted that, in order +to give preference to the Colonies, we must tax raw materials. But +this move again was promptly checkmated by the clear and repeated +declaration of the Colonial representatives that they did not expect +us to tax raw materials. And <a name="Page_61"></a>so nothing was left to Ministers, +determined as they were to wriggle out of any agreement with the +Colonies at all costs, except to fall back on the old, weary +parrot-cry—"Will you tax corn?" "Will you tax butter?" and so on +through the whole list of articles of common consumption, the taxation +of any one of which was thought to be valuable as an electioneering +bogey.</p> + +<p>For my own part, I am not the least bit frightened by any of these +questions. If I am asked whether I would tax this or tax that, it may +be proof of great depravity on my part, but I say without hesitation, +that, for a sufficient object, I should not have the least objection +to putting two shillings a quarter on wheat or twopence a pound on +butter. But I must add that the whole argument nauseates me. What sort +of opinion must these gentlemen have of their fellow countrymen, if +they think that the question of a farthing on the quartern loaf or +half a farthing on the pat of butter is going to outweigh in their +minds every national consideration? And these are the men who accused +Mr. Chamberlain of wishing to unite the <a name="Page_62"></a>Empire by sordid bonds! It is +indeed extraordinary and to my mind almost heartrending to see how +this question of Tariff Reform continues to be discussed on the lowest +grounds, and how its higher and wider aspects seem to be so constantly +neglected. Yet we have no excuse for ignoring them. The Colonial +advocates of Preference, and especially Mr. Deakin, with whose point +of view I thoroughly agree, have repeatedly explained the great +political, national, and I might almost say moral aspects of that +policy. There is a great deal more in it than a readjustment of +duties—twopence off this and a penny on that. I do not say that such +details are not important. When the time comes I am prepared to +show—and I am an old hand at these things—that the objections which +loom so large in many eyes can really be very easily circumvented. But +I would not attempt to bother my fellow countrymen with complicated +changes in their fiscal arrangements, or even with the discussion of +them, if it were not for the bigness of the principle that is +involved.</p> + +<p>I wish to look at it from two points of view. <a name="Page_63"></a>The principle which +lies at the root of Tariff Reform, in its Imperial aspect, is the +national principle. The people of these great dominions beyond the +seas are no strangers to us. They are our own kith and kin. We do not +wish to deal with them, even in merely material matters, on the same +basis as with strangers. That is the great difference between us +Tariff Reformers and the Cobdenites. The Cobdenite only looks at the +commercial side. He is a cosmopolitan. He does not care from whom he +buys, or to whom he sells. He does not care about the ulterior effects +of his trading, whether it promotes British industry or ruins it; +whether it assists the growth of the kindred States, or only enriches +foreign countries. To us Tariff Reformers these matters are of moment, +and of the most tremendous moment. We do not undervalue our great +foreign trade, and I for one am convinced that there is nothing in the +principles of Tariff Reform which will injure that trade. Quite the +reverse. But we do hold that our first concern is with the industry +and productive capacities of our own country, and our next with those +of the great <a name="Page_64"></a>kindred countries across the seas. We hold that a wise +fiscal policy would help to direct commerce into channels which would +not only assist the British worker, but also assist Colonial +development, and make for the greater and more rapid growth of those +countries, which not only contain our best customers, but our fellow +citizens.</p> + +<p>That, I say, is one aspect of the matter. But then there is the other +side—the question of social reform in this country. Now here again we +differ from the Cobdenite. The Cobdenite is an individualist. He +believes that private enterprise, working under a system of unfettered +competition, with cheapness as its supreme object, is the surest road +to universal well-being. The Tariff Reformer also believes in private +enterprise, but he does not believe that the mere blind struggle for +individual gain is going to produce the most beneficent results. He +does not believe in cheapness if it is the result of sweating or of +underpaid labour. He keeps before him as the main object of all +domestic policy the gradual, steady elevation of the standard of life +throughout <a name="Page_65"></a>the community; and he believes that the action of the +State deliberately directed to the encouragement of British industry, +not merely by tariffs, is part and parcel of any sound national policy +and of true Imperialism. And please observe that in a number of cases +the Radical party itself has abandoned Cobdenism. Pure individualism +went to the wall in the Factory Acts, and it is going to the wall +every day in our domestic legislation. It is solely with regard to +this matter of imports that the Radical party still cling to the +Cobdenite doctrine, and the consequence is that their policy has +become a mass of inconsistencies. It is devoid of any logical +foundation whatever.</p> + +<p>I know that there are many people, sound Unionists at heart, who still +have a difficulty about accepting the doctrines of the Tariff +Reformers. My belief is that, if they could only look at the matter +from the broad national and Imperial point of view, they would come to +alter their convictions. I am not advocating Tariff Reform as in +itself the greatest of human objects. But it seems to me the key <a name="Page_66"></a>of +the position. It seems to me that, without it, we can neither take the +first steps towards drawing closer the bonds between the mother +country and the great self-governing States of the Empire; nor +maintain the prosperity of the British worker in face of unfair +foreign competition; nor obtain that large and elastic revenue which +is absolutely essential, if we are going to pursue a policy of social +reform and mean real business. I cannot but hope that many of those +who still shy at Tariff Reform, when they come to look at it from this +point of view—to see it as I see it, not as an isolated thing, but as +an essential and necessary part of a comprehensive national +policy—will rally to our cause. I have travelled along that road +myself. I have been a Cobdenite myself—I am not ashamed of it. But I +have come to see that the doctrine of free imports—the religion of +free imports, I ought to say—as it is practised in this country +to-day, is inconsistent with social reform, inconsistent with fair +play to British industry, and inconsistent with the development and +consolidation of the Empire. And therefore I rejoice that, in the +<a name="Page_67"></a>really great speech which he delivered last night, the leader of the +Unionist party has once more unhesitatingly affirmed his adhesion to +the principles which I have been trying, in my feebler way, to +advocate here this evening. My own conviction is that, when these +principles are understood in all their bearings, they will command the +approval of the mass of the people. And even in Scotland, where I dare +say it is a very uphill fight, I look forward with confidence to their +ultimate victory. Do not let us be discouraged if the fight is long +and the progress slow. The great permanent influences are on our side. +On the one hand there is the growth of the Empire, with all the +opportunities which it affords; on the other there is the increasing +determination of foreign nations to keep their business to themselves. +These potent facts, which have already converted so many leading +minds, will in due time make themselves felt in ever-widening circles. +And they will not fail to produce their effect upon the shrewd +practical sense of the Scottish people, especially when combined with +an appeal to the patriotic <a name="Page_68"></a>instincts of a race which has done so much +to make the Empire what it is, and which has such a supreme interest +in its maintenance and consolidation.</p> + +<br /> +<br /> +<br /> +<br /> +<a name="Social"></a><hr /> +<br /> +<h2><a name="Page_69"></a>UNIONISTS AND SOCIAL REFORM<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>Rugby, November 19, 1907</h3> +<br /> + +<p>There has been such a deluge of talk during the last three weeks that +I doubt whether it is possible for me, or any man, to make a further +contribution to the discussion which will have any freshness or value. +But inasmuch as you probably do not all read all the speeches, you may +perhaps be willing to hear from me a condensed summary of what it all +comes to—of course, from my point of view, which no doubt is not +quite the same as that of the Prime Minister or Mr. Asquith. Now, from +my point of view, there has been a considerable clearing of the air, +and we ought all to be in a position to take a more practical and less +exaggerated view of the situation. Speaking as a Tariff Reformer, I +think that those people, <a name="Page_70"></a>with whom Tariff Reformers agree on almost +all other political questions, but who are strongly and +conscientiously opposed to anything like what they call tampering with +our fiscal system, must by now understand a little better than they +did before what Tariff Reformers really aim at, and must begin to see +that there is nothing so very monstrous or revolutionary about our +proposals. I hope they may also begin to see why it is that Tariff +Reformers are so persistent and so insistent upon their own particular +view. There is something very attractive in the argument which says +that, since Tariff Reform is a stumbling-block to many good Unionists, +it should be dropped, and our ranks closed in defence of an effective +Second Chamber, and in defence of all our institutions against +revolutionary attacks directed upon the existing order of society. In +so far as this is an argument for tolerance and against +excommunicating people because they do not agree with me about Tariff +Reform, I am entirely in accord with it. I am only a convert to Tariff +Reform myself, although I am not a very recent convert, for at the +<a name="Page_71"></a>beginning of 1903, at Bloemfontein, I was instrumental in inducing all +the South African Colonies to give a substantial preference to goods +of British origin. I was instrumental in doing that some months before +the great Tariff Reform campaign was inaugurated in this country by +its leading champion, Mr. Chamberlain. But while I am all for personal +tolerance, I am opposed to any compromise on the question of +principle. I am not opposed to it from any perverseness or any +obstinacy. I am opposed to it because I see clearly that dropping +Tariff Reform will knock the bottom out of a policy which I believe is +not only right in itself, but is the only effective defence of the +Union and of many other things which are very dear to us—I mean a +policy of constructive Imperialism, and of steady, consistent, +unhasting, and unresting Social Reform.</p> + +<p>I have never advocated Tariff Reform as a nostrum or as a panacea. I +have never pretended that it is by itself alone sufficient to cure all +the evils inherent in our social system, or alone sufficient as a bond +of Empire. What I contend is that without it, without recovering <a name="Page_72"></a>our +fiscal freedom, without recovering the power to deal with Customs +Duties in accordance with the conditions of the present time and not +the conditions of fifty years ago, we cannot carry out any of those +measures which it is most necessary that we should carry out. Without +it we are unable to defend ourselves against illegitimate foreign +competition; we are unable to enter into those trade arrangements with +the great self-governing States of the British Crown across the seas, +which are calculated to bestow the most far-reaching benefits upon +them and upon us; and we are unable to obtain the revenue which is +required for a policy of progressive Social Reform. I hope that people +otherwise in agreement with us, who have hitherto not seen their way +to get over their objections to Tariff Reform, will, nevertheless, +find themselves able to accept that principle, when they regard it, +not as an isolated thing, but as an essential part of a great national +and Imperial policy.</p> + +<p>Of course, they will have to see it as it is, and not as it is +represented by its opponents. The opponents of Tariff Reform have a +very <a name="Page_73"></a>easy method of arguing with its supporters. They say that any +departure whatsoever from our present fiscal system necessarily +involves taxing raw materials, and must necessarily result in high and +prohibitive duties, which will upset our foreign trade, and will be +ruinous and disorganising to the whole business of the country. But +Tariff Reformers are not going to frame their duties in order to suit +the argumentative convenience of Mr. Asquith. They are going to be +guided by wholly different considerations from that. It is curious +that everybody opposed to Tariff Reform says that Tariff Reformers +intend to tax raw material, while Tariff Reformers themselves have +steadily said they do not. I ask you in that respect to take the +description of a policy of Tariff Reform from those who advocate it, +and not from those who oppose it. And as for the argument about high +prohibitive duties, I wish people would read the reports or summaries +of the reports of the Tariff Commission. They contain not only the +most valuable collection that exists anywhere of the present facts +about almost every branch of British industry but they are <a name="Page_74"></a>also an +authoritative source from which to draw inferences as to the +intentions of Tariff Reformers. Now the Tariff Reform Commission have +not attempted to frame a complete tariff, a scale of duties for all +articles imported into this country, and wisely, because, if they had +tried to do that, people would have said that they were arrogating to +themselves the duties of Parliament. What they have done is to show by +a few instances that a policy of Tariff Reform is not a thing in the +air, not a mere thing of phrases and catchwords, but is a practical, +businesslike working policy. They have drawn up what may be called +experimental scales of duties, which are merely suggestions for +consideration, with respect to a number of articles under the +principal heads of British imports, such as, for instance, +agricultural imports and imports of iron and steel. These experimental +duties vary on the average from something like 5 per cent. to 10 per +cent. on the value of the articles. In no one case in my recollection +do they exceed 10 per cent.</p> + +<p>But then the opponents of Tariff Reform say: "Yes. That is all very +well. But though you <a name="Page_75"></a>may begin with moderate duties, you are bound to +proceed to higher ones. It is in the nature of things that you should +go on increasing and increasing, and in the end we shall all be +ruined." I must say that seems to me great nonsense. It reminds me of +nothing so much as the fearful warnings which I have read in the least +judicious sort of temperance literature, and sometimes heard from +temperance orators of the more extreme type—the sort of warning, I +mean, that, if you once begin touching anything stronger than water, +you are bound to go on till you end by beating your wife and die in a +workhouse. But you and I know perfectly well that it is possible to +have an occasional glass of beer or glass of wine, or even, low be it +spoken, a little whisky, without beating or wanting to beat anybody, +and without coming to such a terrible end. The argument against the +use of anything from its abuse has always struck me as one of the +feeblest of arguments. And just see how particularly absurd it is in +the present case. The effect of duties on foreign imports, even such +moderate and carefully devised duties as those to which I <a name="Page_76"></a>have +referred, would, we are told, be ruinous to British trade. It would +place intolerable burdens upon the people. Yet for all that the people +would, it appears, insist on increasing these burdens. Surely it is as +clear as a pike-staff that, if the duties which Tariff Reformers +advocate were to produce the evils which Free Importers allege that +they would produce, these duties, so far from being inevitably +maintained and increased, would not survive one General Election after +their imposition.</p> + +<p>It is not only with regard to Tariff Reform that I think the air is +clearer. The Unionist Party has to my mind escaped another danger +which was quite as great as that of allowing the Tariff question to be +pushed on one side, and that was the danger of being frightened by the +scare, which the noisy spreading of certain subversive doctrines has +lately caused, into a purely negative and defensive attitude; of +ceasing to be, as it has been, a popular and progressive party, and +becoming merely the embodiment of upper and middle class prejudices +and alarms. I do not say that there are not many projects in the air +which are calculated to excite alarm, but <a name="Page_77"></a>they can only be +successfully resisted on frankly democratic and popular lines. My own +feeling is—I may be quite wrong, but I state my opinion for what it +is worth—that there is far less danger of the democracy going wrong +about domestic questions than there is of its going wrong about +foreign and Imperial questions, and for this simple reason, that with +regard to domestic questions they have their own sense and experience +to guide them.</p> + +<p>If a mistake is made in domestic policy its consequences are rapidly +felt, and no amount of fine talking will induce people to persist in +courses which are affecting them injuriously in their daily lives. You +have thus a constant and effective check upon those who are disposed +to try dangerous experiments, or to go too fast even on lines which +may be in themselves laudable, as the experience of recent municipal +elections, among other things, clearly shows. But with regard to +Imperial questions, to our great and vital interests in distant parts +of the earth, there is necessarily neither the same amount of personal +knowledge on the part of the electorate, nor do the consequences <a name="Page_78"></a>of a +mistaken policy recoil so directly and so unmistakably upon them. +These subjects, therefore, are the happy hunting-ground of the +visionary and the phrase-maker. I have seen the people of this country +talked into a policy with regard to South Africa at once so injurious +to their own interests, and so base towards those who had thrown in +their lot with us and trusted us, that, if the British nation had only +known what that policy really meant, they would have spat it out of +their mouths. And I tremble every day lest, on the vital question of +Defence, the pressure of well-meaning but ignorant idealists, or the +meaner influence of vote-catching demagogues, should lead this +Government or, indeed, any Government, to curtail the provisions, +already none too ample, for the safety of the Empire, in order to pose +as the friends of peace or as special adepts in economy. I know these +savings of a million or two a year over say five or ten years, which +cost you fifty or one hundred millions, wasted through unreadiness +when the crisis comes, to say nothing of the waste of gallant lives +even more precious. This is the <a name="Page_79"></a>kind of question about which the +democracy is liable to be misled, being without the corrective of +direct personal contact with the facts to keep it straight. And it is +unpopular and up-hill work to go on reminding people of the vastness +of the duty and the responsibility which the control of so great a +portion of the earth's surface, with a dependent population of three +or four hundred millions, necessarily involves; to go on reminding +them, too, how their own prosperity and even existence in these +islands are linked by a hundred subtle but not always obvious or +superficially apparent threads with the maintenance of those great +external possessions.</p> + +<p>I say these are difficulties which any party or any man, who is +prepared to do his duty by the electorate of this country, not merely +to ingratiate himself with them for the moment, but to win their +confidence by deserving it, by telling them the truth, by serving +their permanent interests and not their passing moods, is bound to +face. For my own part, I have always been perfectly frank on these +questions. I have maintained on many platforms, I am prepared to +maintain here to-night and shall always <a name="Page_80"></a>maintain, although this is a +subject on which it may be long before my views are included in any +party programme—I say I shall always maintain that real security is +not possible without citizen service, and that the training of every +able-bodied man to be capable of taking part, if need be, in the +defence of his country, is not only good for the country but good for +the man—and would materially assist in the solution of many other +problems, social and economic. But being, as I am, thus +uncompromising, and quite prepared to find myself unpopular, on these +vital questions of national security, and of our Imperial duties and +responsibilities, I can perhaps afford to say, without being suspected +of fawning or of wishing to play the demagogue myself, that in the +matter of domestic reform I am not easy to frighten, and that I have a +very great trust in the essential fair-mindedness and good sense of +the great body of my fellow countrymen with regard to questions which +come within their own direct cognisance. And therefore it was most +reassuring to me at any rate—and I hope it was to you—to observe, +that that large section <a name="Page_81"></a>of the Unionist Party which met at Birmingham +last week, not so much by any resolutions or formal programme—for +there was nothing very novel in these—as by the whole tone and temper +of its proceedings, affirmed in the most emphatic manner the +essentially progressive and democratic character of Unionism. The +greatest danger I hold to the Unionist Party and to the nation is that +the ideals of national strength and Imperial consolidation on the one +hand, and of democratic progress and domestic reform on the other, +should be dissevered, and that people should come to regard as +antagonistic objects which are essentially related and complementary +to one another. The upholders of the Union, the upholders of the +Empire, the upholders of the fundamental institutions of the State, +must not only be, but must be seen and known to be, the strenuous and +constant assailants of those two great related curses of our social +system—irregular employment and unhealthy conditions of life—and of +all the various causes which lead to them.</p> + +<p>I cannot stay here to enumerate those causes, <a name="Page_82"></a>but I will mention a +few of them. There is the defective training of children, defective +physical training to begin with, and then the failure to equip them +with any particular and definite form of skill. There is the irregular +way in which new centres of population are allowed to spring up, so +that we go on creating fresh slums as fast as we pull down the old +rookeries. There is the depopulation of the countryside, and the +influx of foreign paupers into our already overcrowded towns. There is +the undermining of old-established and valuable British industries by +unfair foreign competition. That is not an exhaustive list, but it is +sufficient to illustrate my meaning. Well, wherever these and similar +evils are eating away the health and independence of our working +people, there the foundations of the Empire are being undermined, for +it is the race that makes the Empire. Loud is the call to every true +Unionist, to every true Imperialist, to come to the rescue.</p> + +<p>And now at the risk of wearying you there is one other subject to +which I would like specially to refer, lest I should be accused of +deliberately <a name="Page_83"></a>giving it the go-by, and that is the question of old age +pensions. It is not a reform altogether of the same nature as those on +which I have been dwelling, nor is it perhaps the kind of reform about +which I feel the greatest enthusiasm, because I would rather attack +the causes, which lead to that irregularity of employment and that +under-payment which prevents people from providing for their own old +age themselves, than merely remedy the evils arising from it. But I +accept the fact that under present conditions, which it may be that a +progressive policy in time will alter, a sufficient case for State aid +in the matter of old age pensions has been made out, and I believe +that no party is going to oppose the introduction of old age pensions. +But, on the other hand, I foresee great difficulties and great +disputes over the question of the manner in which the money is to be +provided. I know how our Radical friends will wish to provide the +money. They will want to get it, in the first instance, by starving +the Army and the Navy. To that way of providing it I hope the Unionist +Party, however unpopular such a course may be, and <a name="Page_84"></a>however liable to +misrepresentation it may be, will oppose an iron resistance, because +this is an utterly rotten and bad way of financing old age pensions, +or anything else. But that method alone, however far it is carried, +will not provide money enough, and there will be an attempt to raise +the rest by taxes levied exclusively on the rich. I am against that +also, because it is thoroughly wrong in principle. I am not against +making the rich pay, to the full extent of their capacity, for great +national purposes, even for national purposes in which they have no +direct interest. But I am not prepared to see them made to pay +exclusively. Let all pay according to their means. It is a thoroughly +vicious idea that money should be taken out of the pocket of one man, +however rich, in order to be put into the pocket of another, however +poor. That is a bad, anti-national principle, and I hope the +Unionist Party will take a firm stand against it. And this is an +additional reason why we should raise whatever money may be necessary +by duties upon foreign imports, because in that way all will +contribute. No doubt the rich will contribute the bulk of the money +through <a name="Page_85"></a>the duties on imported luxuries, but there will be some +contribution, as there ought to be some contribution, from every class +of the people.</p> + +<p>And now, in conclusion, one word about purely practical +considerations. We Unionists, if you will allow me to call myself a +Unionist—at any rate I have explained quite frankly what I mean by +the term—are not a class party, but a national party. That being so, +it is surely of the utmost importance that men of all classes should +participate in every branch and every grade of the work of the +Unionist Party. Why should we not have Unionist Labour members as well +as Radical Labour members? I think that the working classes of this +country are misrepresented in the eyes of the public of this country +and of the world, as long as they appear to have no leaders in +Parliament except the men who concoct and pass those machine-made +resolutions with which we are so familiar in the reports of Trade +Union Congresses. I am not speaking now about their resolutions on +trade questions, which they thoroughly understand, but about +resolutions on such subjects as foreign politics, the Army and Navy, +and <a name="Page_86"></a>Colonial and Imperial questions, resolutions which are always +upon the same monotonous lines. I do not believe that the working +classes are the unpatriotic, anti-national, down-with-the-army, +up-with-the-foreigner, take-it-lying-down class of Little Englanders +that they are constantly represented to be. I do not believe it for a +moment. I have heard Imperial questions discussed by working men in +excellent speeches, not only eloquent speeches, but speeches showing a +broad grasp and a truly Imperial spirit, and I should like speeches of +that kind to be heard in the House of Commons as an antidote to the +sort of preaching which we get from the present Labour members. And +what I say about the higher posts in the Unionist Army applies equally +to all other ranks. No Unionist member or Unionist candidate is really +well served unless he has a number of men of the working class on what +I may call his political staff. And I say this not merely for +electioneering reasons. This is just one of the cases in which +considerations of party interest coincide—I wish they always or often +did—with considerations of a higher <a name="Page_87"></a>character. There is nothing more +calculated to remove class prejudice and antagonism than the +co-operation of men of different classes on the same body for the same +public end. And there is this about the aims of Unionism, that they +are best calculated to teach the value of such co-operation; to bring +home to men of all classes their essential inter-dependence on one +another, as well as to bring home to each individual the pettiness and +meanness of personal vanity and ambition in the presence of anything +so great, so stately, as the common heritage and traditions of the +British race.</p> + +<br /> +<br /> +<br /> +<br /> +<a name="Sweated"></a><hr /> +<br /> +<h2><a name="Page_88"></a>SWEATED INDUSTRIES<span class="totoc"><a href="#toc">ToC</a></span></h2> + +<h3>Oxford, December 5, 1907</h3> +<br /> + +<p>This exhibition is one of a series which are being held in different +parts of the country with the object of directing attention, or rather +of keeping it directed, to the conditions under which a number of +articles, many of them articles of primary necessity, are at present +being produced, and with the object also of improving the lot of the +people engaged in the production of those articles. Now this matter is +one of great national importance, because the sweated workers are +numbered by hundreds of thousands, and because their poverty and the +resulting evils affect many beside themselves, and exercise a +depressing influence on large classes of the community. What do we +mean by sweating? I will give you a definition laid down by a +Parliamentary <a name="Page_89"></a>Committee, which made a most exhaustive inquiry into +the subject: "Unduly low rates of wages, excessive hours of work, and +insanitary condition of the workplaces." You may say that this is a +state of things against which our instincts of humanity and charity +revolt. And that is perfectly true, but I do not propose to approach +the question from that point of view to-day. I want to approach it +from the economic and political standpoint. But when I say political I +do not mean it in any party sense. This is not a party question; may +it never become one. The organisers of this exhibition have done what +lay in their power to prevent the blighting and corrosive influence of +party from being extended to it. The fact that the position which I +occupy at this moment will be occupied to-morrow by the wife of a +distinguished member of the present Government (Mrs. Herbert +Gladstone), and on Saturday by a leading member of the Labour Party +(Mr. G.N. Barnes, M.P.), shows that this is a cause in which people of +all parties can co-operate. The more we deal with sweating on these +lines, the more we deal with it on its merits or <a name="Page_90"></a>demerits without +ulterior motive, the more likely we shall be to make a beginning in +the removal of those evils against which our crusade is directed.</p> + +<p>My view is, that the sweating system impoverishes and weakens the +whole community, because it saps the stamina and diminishes the +productive power of thousands of workers, and these in their turn drag +others down with them. "Unduly low rates of wages, excessive hours of +labour, insanitary condition of workplaces"—what does all that mean? +It means an industry essentially rotten and unsound. To say that the +labourer is worthy of his hire is not only the expression of a natural +instinct of justice, but it embodies an economic truth. One does not +need to be a Socialist, not, at least, a Socialist in the sense in +which the word is ordinarily used, as designating a man who desires +that all instruments of production should become common property—one +does not need to be a Socialist in that sense in order to realise that +an industry, which does not provide those engaged in it with +sufficient to keep them in health is essentially unsound. Used-up +capital <a name="Page_91"></a>must be replaced, and of all forms of capital the most +fundamental and indispensable is the human energy necessarily consumed +in the work of production. A sweated industry does not provide for the +replacing of that kind of capital. It squanders its human material. It +consumes more energy in the work it exacts than the remuneration it +gives is capable of replacing. The workers in sweated industries are +not able to live on their wages. As it is, they live miserably, grow +old too soon, and bring up sickly children. But they would not live at +all, were it not for the fact that their inadequate wages are +supplemented, directly, in many cases, by out-relief, and indirectly +by numerous forms of charity. In one way or another the community has +to make good the inefficiency that sweating produces. In one way or +another the community ultimately pays, and it is my firm belief that +it pays far more in the long run under the present system than if all +workers were self-supporting. If a true account could be kept, it +would be found that anything which the community gains by the +cheapness of articles produced under the sweating system is <a name="Page_92"></a>more than +outweighed by the indirect loss involved in the inevitable subsidising +of a sweated industry. That would be found to be the result, even if +no account were taken of the greatest loss of all, the loss arising +from the inefficiency of the sweated workers and of their children, +for sweating is calculated to perpetuate inefficiency and +degeneration.</p> + +<p>The question is: Can anything be done? Of the three related +evils—unduly low rates of wages, excessive hours of labour, and +insanitary condition of work-places—it is evident that the first +applies equally to sweated workers in factories and at home, but the +two others are to some extent guarded against, in factories, by +existing legislation. This is the reason why some people would like to +see all work done for wages transferred to factories. Broadly +speaking, I sympathise with that view. But if it were universally +carried out at the present moment, it would inflict an enormous amount +of suffering and injustice on those who add to their incomes by home +work. Hence the problem is twofold. First, can we extend to workers in +their own homes that degree or protection in respect <a name="Page_93"></a>of hours and +sanitary conditions which the law already gives to workers in +factories? And secondly, can we do anything to obtain for sweated +workers, whether in homes or factories, rates of remuneration less +palpably inadequate? Now it certainly seems impossible to limit the +hours of workers, especially adult workers, in their own homes. More +can be done to ensure sanitary conditions of work. Much has been done +already, so far as the structural condition of dwellings is concerned. +But I am afraid that the measures necessary to introduce what may be +called the factory standard of sanitariness into every room, where +work is being done for wages, would involve an amount of inspection +and interference with the domestic lives of hundreds of thousands of +people which might create such unpopularity as to defeat its own +object. I do not say that nothing more should be attempted in that +direction, quite the reverse; but I say that nothing which can be +attempted in that direction really goes to the root of the evil, which +is the insufficiency of the wage. How can you possibly make it healthy +for a woman, living in a single room, perhaps with <a name="Page_94"></a>children, but even +without, to work twelve or fourteen hours a day for seven or eight +shillings a week, and at the same time to do her own cooking, washing, +and so on. How much food is she likely to have? How much time will be +hers to keep the place clean and tidy? An increase of wages would not +make sanitary regulations unnecessary, but it would make their +observance more possible.</p> + +<p>An increase of wages then is the primary condition of any real +improvement in the lives of the sweated workers. So the point is this. +Can we do anything by law to screw up the remuneration of the +worst-paid workers to the minimum necessary for tolerable human +existence? I know that many people think it impossible, but my answer +is that the fixing of a limit below which wages shall not fall is +already not the exception but the rule in this country. That may seem +a rather startling statement, but I believe I can prove it. Take the +case of the State, the greatest of all employers. The State does not +allow the rates of pay even of its humblest employés to be decided by +the scramble for employment. <a name="Page_95"></a>The State cannot afford, nor can any +great municipality afford, to pay wages on which it is obviously +impossible to live. There would be an immediate outcry. Here then you +have a case of vast extent in which a downward limit of wages is fixed +by public opinion. Take, again, any of the great staple industries of +the country, the cotton industry, the iron and steel industry, and +many others. In the case of these industries rates of remuneration are +fixed in innumerable instances by agreement between the whole body of +employers in a particular trade and district on the one hand and the +whole body of employés on the other. The result is to exclude +unregulated competition and to secure the same wages for the same +work. No doubt there is an element—and this is a point of great +importance—which enters into the determination of wages in these +organised trades, but which does not enter in the same degree into the +determination of the salaries paid by the State. That element is the +consideration of what the employers can afford to pay. This question +is constantly being threshed out between them and the <a name="Page_96"></a>workpeople, +with resulting agreements. The number of such agreements is very +large, and the provisions contained in them often regulate the rate of +remuneration for various classes of workers with the greatest +minuteness. But the great object, and the principal effect of all +these agreements, is this: it is to ensure uniformity of remuneration, +the same wage for the same work, and to protect the most necessitous +and most helpless workers from being forced to take less than the +employers can afford to pay. Broadly speaking, the rate of pay, in +these highly organised industries, is determined by the value of the +work and not by the need of the worker. That makes an enormous +difference. But in sweated industries this is not the case. Sweated +industries are the unorganised industries, those in which there is no +possibility of organisation among the workers. Here the individual +worker, without resources and without backing, is left, in the +struggle of unregulated competition, to take whatever he can get, +regardless of what others may be getting for the same work and-of the +value of the work itself. Hence the <a name="Page_97"></a>extraordinary inequality of +payment for the same kind of work and the generally low average of +payment which are the distinguishing features of all sweated +industries.</p> + +<p>Now, if you have followed this rather dry argument, I shall probably +have your concurrence when I say, that the proposal that the State +should intervene to secure, not an all-round minimum wage, but the +same wages for the same work, and nothing less than the standard rate +of his particular work for every worker, is not a proposition that the +State should do something new, or exceptional, or impracticable. It is +a proposal that the State should do for the weakest and most helpless +trades what the strongly-organised trades already do for themselves. I +cannot see that there is anything unreasonable, much less +revolutionary or subversive, in that suggestion.</p> + +<p>This proposal has taken practical form in a Bill presented to the +House of Commons last session. Whether the measure reached its second +reading or not I do not know. It was a Bill for the establishment of +Wages Boards in certain industries employing great numbers <a name="Page_98"></a>of +workpeople, such as tailoring, shirtmaking, and so on. The industries +selected were those in which the employés, though numerous, are +hopelessly disorganised and unable to make a bargain for themselves. +And the Bill provided that where any six persons, whether masters or +employés, applied to the Home Secretary for the establishment of a +Wages Board, such a Board should be created in the particular industry +and district concerned; that it should consist of representatives of +employers and employed in equal proportions, with an impartial +chairman; and that it should have the widest possible discretion to +fix rates of remuneration. If Wages Boards were established, as the +Bill proposed, they would simply do for sweated trades what is already +constantly being done in organised trades, with no doubt one important +difference, that the decisions of these Boards would be enforceable by +law. Now that no doubt may seem to many of you a drastic proposition. +But I would strongly recommend any one interested in the subject to +study a recently-published Blue-book, one of the most interesting I +have ever read, which contains the <a name="Page_99"></a>evidence given before the House of +Commons Committee on Home Work. That Blue-book throws floods of light +on the conditions which have led to the proposal of Wages Boards, on +the way in which these Boards would be likely to work, and on the +results of the operation of such Boards in the Colony of Victoria, +where they have existed for more than ten years, and now apply to more +than forty industries. The perusal of that evidence would, I feel +sure, remove some at least of the most obvious objections to this +proposed remedy for sweating.</p> + +<p>Many people look askance, and justly look askance, at the interference +of the State in anything so complicated and technical as a schedule of +wages for any particular industry. But the point to bear in mind is +this, that the wages, which under this proposal would be enforceable +by law, would be wages that had been fixed for a particular industry +in a particular district by persons intimately cognisant with all the +circumstances, and, more than that, by persons having the deepest +common interest to avoid anything which could injure the industry. The +rates of remuneration <a name="Page_100"></a>so arrived at would be based on the +consideration of what the employers could afford to pay and yet retain +such a reasonable rate of profit as would lead to their remaining in +the industry. Such a regulation of wages would be as great a +protection to the best employers against the cut-throat competition of +unscrupulous rivals as it would be to the workers against being +compelled to sell their labour for less than its value. There is +plenty of evidence that the regulation of wages would be welcomed by +many employers. And as for the fear sometimes expressed, that it would +injure the weakest and least efficient workers, because, with +increased wages, it would no longer be profitable to employ them, it +must be borne in mind that people of that class are mainly home +workers, and as remuneration for home work must be based on the piece, +there would be no reason why they should not continue to be employed. +No doubt they would not benefit as much as more efficient workers from +increased rates, but <i>pro tanto</i> they would still benefit, and that is +a consideration of great importance. But even if this were not the +case, I would still contend, that it was <a name="Page_101"></a>unjustifiable to allow +thousands of people to remain in a preventable state of misery and +degradation all their lives, merely in order to keep a tenth of their +number out of the workhouse a few years longer.</p> + +<p>I have only one more word to say. I come back to the supreme interest +of the community in the efficiency and welfare of all its members, to +say nothing of the removal of the stain upon its honour and conscience +which continued tolerance of this evil involves. That to my mind is +the greatest consideration of all. That is the true reason, as it +would be the sufficient justification, for the intervention of the +State. And, or my own part, I feel no doubt that, whether by the +adoption of such a measure as we have been considering, or by some +other enactment, steps will before long be taken for the removal of +this national disgrace.</p> + +<br /> +<br /> +<hr /> +<br /> +<br /> +<h5>Printed by BALLANTYNE & CO. LIMITED<br /> +Tavistock Street, London</h5> +<br /> +<br /> +<hr /> +<br /> +<br /> + +<a name="Page_i"></a> +<a name="Page_ii"></a> + +<h2>The <br />Fundamental Fallacies <br />of Free Trade</h2> + +<h2>By L.S. 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The +chapters are successively entitled "The Individualist Fallacy," "The +Capitalist Fallacy," "The Trade Fallacy," and "Free Trade Psychology +and Free Trade History."</p> + +<p>This is essentially a book to be read, marked, learned, and inwardly +digested by all serious students of public affairs.</p> +</div> + +<br /> + +<h4>THE "NATIONAL REVIEW" OFFICE<br /> +23 RYDER STREET, ST. 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You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Constructive Imperialism + +Author: Viscount Milner + +Release Date: April 22, 2005 [EBook #15681] + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK CONSTRUCTIVE IMPERIALISM *** + + + + +Produced by Jonathan Ingram, Jeannie Howse and the Online Distributed +Proofreading (https://www.pgdp.net). + + + + + +[Transcriber's Note: Two advertisements from the beginning of the book +have been moved to the end.] + + * * * * * + + + + + CONSTRUCTIVE + IMPERIALISM + + BY + + VISCOUNT MILNER, G.C.B. + + FIVE SPEECHES + + DELIVERED AT + TUNBRIDGE WELLS (OCTOBER 24, 1907) + GUILDFORD (OCTOBER 29, 1907) + EDINBURGH (NOVEMBER 15, 1907) + RUGBY (NOVEMBER 19, 1907) + AND OXFORD (DECEMBER 5, 1907) + + + LONDON + THE NATIONAL REVIEW OFFICE + 23 RYDER STREET, ST. JAMES'S + 1908 + + * * * * * + + + + +CONTENTS + + + PAGE + +TARIFF REFORM (TUNBRIDGE WELLS) 7 + +A CONSTRUCTIVE POLICY (GUILDFORD) 34 + +UNIONISTS AND THE EMPIRE (EDINBURGH) 50 + +UNIONISTS AND SOCIAL REFORM (RUGBY) 69 + +SWEATED INDUSTRIES (OXFORD) 88 + + * * * * * + + + + +TARIFF REFORM + +Tunbridge Wells, October 24, 1907 + + +As this is a Tariff Reform meeting pure and simple, I am anxious not +to approach the subject in any party spirit or in any spirit of +acrimonious controversy. The question is a difficult and complicated +one, and though I am a strong Tariff Reformer myself I hope I am not +incapable of seeing both sides of the case. I certainly should have +reason to be ashamed if I could not be fair to those whom, for the +sake of brevity and convenience, I will call Free Traders, though I do +not altogether admit the correctness of that designation. My views +were once the same as theirs, and though I long ago felt constrained +to modify them, and had become a Tariff Reformer some years before the +subject attained its present prominence in public discussion, it would +ill become me to treat as foolish arguments which I once found so +convincing or to vilify opinions which I once honestly shared. + +What has happened to me is what I expect has happened to a good many +people. I still admire the great Free Trade writers, the force of +their intellect, the lucidity of their arguments. There can be no +clearer proof of the spell which they exercised over the minds of +their countrymen than the fact that so many leading public men on both +sides of politics remain their disciples to this very day. But for my +own part I have been unable to resist the evidence of facts which +shows me clearly that in the actual world of trade and industry things +do not work out even approximately as they ought to work out if the +Free Trade theory were the counsel of perfection which I once thought +it. And that has led me to question the theory itself, and so +questioned it now seems to me far from a correct statement of the +truth, even from the point of view of abstract inquiry. But I am not +here to engage in abstract arguments. What I want to do is to look at +the question from a strictly practical point of view, but at the same +time a very broad one. I am anxious to bring home to you the place of +Tariff Reform in a sound national policy, for, indeed, it seems to me +very difficult to construct such a policy without a complete revision +of our fiscal arrangements. Now a sound national policy has two +aspects. There are two great objects of practical patriotism, two +heads under which you may sum it up, much as the Church Catechism sums +up practical religion, under the heads of "duty to God" and "duty to +your neighbour." These objects are the strength of the Empire, and the +health, the well-being, the contentedness of the mass of the people, +resting as they always must on steady, properly organised, and fairly +remunerated labour. Remember always, these two things are one; they +are inseparable. There can be no adequate prosperity for the forty or +fifty million people in these islands without the Empire and all that +it provides; there can be no enduring Empire without a healthy, +thriving, manly people at the centre. Stunted, overcrowded town +populations, irregular employment, sweated industries, these things +are as detestable to true Imperialism as they are to philanthropy, +and they are detestable to the Tariff Reformer. His aim is to improve +the condition of the people at home, and to improve it concurrently +with strengthening the foundations of the Empire. Mind you, I do not +say that Tariff Reform alone is going to do all this. I make no such +preposterous claim for it. What I do say is that it fits in better +alike with a policy of social reform at home and with a policy +directed to the consolidation of the Empire than our existing fiscal +system does. + +Now, what is the essential difference between Tariff Reformers and the +advocates of the present system? I must dwell on this even at the risk +of appearing tiresome, because there is so much misunderstanding on +the subject. In the eyes of the advocates of the present system, the +statesman, or at any rate the British statesman, when he approaches +fiscal policy, is confronted with the choice of Hercules. He is +placed, like the rider in the old legend, between the black and the +white horseman. On the one hand is an angel of light called Free +Trade; on the other a limb of Satan called Protection. The one is +entirely and always right; the other is entirely and always wrong. +All fiscal wisdom is summed up in clinging desperately to the one and +eschewing like sin anything that has the slightest flavour of the +other. Now, that view has certainly the merit of simplicity, and +simplicity is a very great thing; but, if we look at history, it does +not seem quite to bear out this simple view. This country became one +of the greatest and wealthiest in the world under a system of rigid +Protection. It has enjoyed great, though by no means unbroken, +prosperity under Free Trade. Side by side with that system of ours +other countries have prospered even more under quite different +systems. These facts alone are sufficient to justify the critical +spirit, which is the spirit of the Tariff Reformer. He does not +believe in any absolute right or wrong in such a matter as the +imposition of duties upon imports. Such duties cannot, he thinks, be +judged by one single test, namely, whether they do or do not favour +the home producer, and be condemned out of hand if they do favour him. + +The Tariff Reformer rejects this single cast-iron principle. He +refuses to bow down before it, regardless of changing circumstances, +regardless of the policy of other countries and of that of the other +Dominions of the Crown. He wants a free hand in dealing with imports, +the power to adapt the fiscal policy of this country to the varying +conditions of trade and to the situation created at any given time by +the fiscal action of others. He has no superstitious objection to +using duties either to increase employment at home or to secure +markets abroad. But on the other hand he does not go blindly for +duties upon foreign imports as so-called Free Traders go blindly +against them, except in the case of articles not produced in this +country, some of which the Free Traders are obliged to tax +preposterously. Tariff Reform is not one-ideaed, rigid, inelastic, as +our existing system is. Many people are afraid of it, because they +think Tariff Reformers want to put duties on foreign goods for the fun +of the thing, merely for the sake of making them dearer. Certainly +Tariff Reformers do not think that cheapness is everything. Certainly +they hold that the blind worship of immediate cheapness may cost the +nation dear in the long run. But, unless cheapness is due to some +mischievous cause, they are just as anxious that we should buy cheaply +as the most ardent Cobdenite, and especially that we should buy +cheaply what we cannot produce ourselves. Talking of cheapness, +however, I must make a confession which I hope will not be +misunderstood by ladies present who are fond of shopping--I wish we +could get out of the way of discussing national economics so much from +the shopping point of view. Surely what matters, from the point of +view of the general well-being, is the productive capacity of the +people, and the actual amount of their production of articles of +necessity, use, or beauty. Everything we consume might be cheaper, and +yet if the total amount of things which were ours to consume was less +we should be not richer but poorer. It is, I think, one of the first +duties of Tariff Reformers to keep people's eyes fixed upon this vital +point--the amount of our national production. It is that which +constitutes the real income of the nation, on which wages and profits +alike depend. + +And that brings me to another point. Production in this country is +dependent on importation, more dependent than in most countries. We +are not self-supplying. We must import from outside these islands vast +quantities of raw materials and of the necessaries of life. That, at +least, is common ground between the Free Trader and the Tariff +Reformer. But the lessons they draw from the fact are somewhat +different. The Free Trader is only anxious that we should buy all +these necessary imports as cheaply as possible. The Tariff Reformer is +also anxious that we should buy them cheaply, but he is even more +anxious to know how we are going to pay for all this vast quantity of +things which we are bound to import. And that leads him to two +conclusions. The first is that, seeing how much we are obliged to buy +from abroad in any case, he looks rather askance at our increasing our +indebtedness by buying things which we could quite easily produce at +home, especially with so many unemployed and half-employed people. The +other, and this is even a more pressing solicitude to him, is that it +is of vital importance to us to look after our external markets, to +make sure that we shall always have customers, and good customers, to +buy our goods, and so to enable us to pay for our indispensable +imports. The Free Trader does not share this solicitude. He has got a +comfortable theory that if you only look after your imports your +exports will look after themselves. Will they? The Tariff Reformer +does not agree with that at all. Imports no doubt are paid for by +exports, but it does not in the least follow that by increasing your +dependence on others you will necessarily increase their dependence on +you. It would be much truer to say: "Look after the exports and the +imports will look after themselves." The more you sell the more you +will be able to buy, but it does not in the least follow that the more +you buy the more you will be able to sell. What business man would go +on the principle of buying as much as possible and say: "Oh, that is +all right. I am sure to be able to sell enough to pay for it." The +first thought of a wise business man is for his markets, and you as a +great trading nation are bound to think of your markets, not only your +markets of to-day but of to-morrow and the day after to-morrow. + +The Free Trade theory was the birth of a time when our imports were +practically all supplemental to our exports, all indispensable to us, +and when, on the other hand, the whole of the world was in need of our +goods, far beyond our power of supplying it. Since then the situation +has wholly altered. At this actual moment, it is true, there is +temporarily a state of things which in one respect reproduces the +situation of fifty years ago. There is for the moment an almost +unlimited demand for some of our goods abroad. But that is not the +normal situation. The normal situation is that there is an increasing +invasion of our markets by goods from abroad which we used to produce +ourselves, and an increasing tendency to exclude our goods from +foreign markets. The Tariff Reform movement is the inevitable result +of these altered circumstances. There is nothing artificial about it. +It is not, as some people think, the work of a single man, however +much it may owe to his genius and his courage, however much it may +suffer, with other good causes, through his enforced retirement from +the field. It is not an eccentric idea of Mr. Chamberlain's. Sooner or +later it was bound to come in any case. It is the common sense and +experience of the people waking up to the altered state of affairs, +beginning to shake itself free from a theory which no longer fits the +facts. It is a movement of emancipation, a twofold struggle for +freedom--in the sphere of economic theory, for freedom of thought, in +the sphere of fiscal policy, for freedom of action. + +And that freedom of action is needed quickly. It is needed now. I am +not doubtful of the ultimate triumph of Tariff Reform. Sooner or +later, I believe, it is sure to achieve general recognition. What does +distress me is the thought of the opportunities we are losing in the +meantime. This year has been marked, disastrously marked, in our +annals by the emphatic and deliberate rejection on the part of our +Government of the great principle of Preferential Trade within the +Empire. All the other self-governing States are in favour of it. The +United Kingdom alone blocks the way. What does that mean? What is it +that we risk losing as long as we refuse to accept the principle of +Preferential Trade, and will certainly lose in the long run if we +persist in that refusal? It is a position of permanent and assured +advantage in some of the greatest and most growing markets in the +world. Preference to British goods in the British dominions beyond the +sea would be a constant and potent influence tending to induce the +people of those countries to buy what they require to buy outside +their own borders from us rather than from our rivals. It means beyond +all doubt and question so much more work for British hands. And the +people of those countries are anxious that British hands should get +it. They have, if I may so express myself, a family feeling, which +makes them wish to keep the business within the family. But business +is business. They are willing to give us the first chance. But if we +will give nothing in return, if we tell them to mind their own +business and not to bother us with offers of mutual concessions, it is +only a question of time, and the same chance will be given to others, +who will not refuse to avail themselves of it. + +You see the beginning of the process already in such an event as the +newly-concluded commercial treaty between Canada and France. If we +choose, it is still possible for us not only to secure the preference +we have in Colonial markets, but to increase it. But if we do nothing, +commercial arrangements with other nations who are more far-sighted +will gradually whittle that preference away. To my mind the action of +Canada in the matter of that treaty, perfectly legitimate and natural +though it be, is much more ominous and full of warning to us than the +new Australian Tariff, about which such an unjustifiable outcry has +been made. Rates of duty can be lowered as easily as they can be +raised, but the principle of preference once abandoned would be very +difficult to revive. I am sorry that the Australians have found it +necessary in their own interests to raise their duties, but I would +rather see any of the British Dominions raise its duties and still +give a preference to British goods than lower its duties and take away +that preference. Whatever duties may be imposed by Canada, Australia, +or the other British Dominions, they will still remain great +importers, and with the vast expansion in front of them their imports +are bound to increase. They will still be excellent customers, and the +point is that they should be our customers. + +In the case of Australia the actual extent of the preference accorded +to British goods under the new tariff is not, as has been represented, +of small value to us. It is of considerable value. But what is of far +more importance is the fact that Australia continues to adhere to the +principle of Preference. Moreover, Australia, following the example of +Canada, has established an extensive free list for the benefit of this +country. Let nobody say after this that Australia shows no family +feeling. I for one am grateful to Australia, and I am grateful to that +great Australian statesman, Mr. Deakin, for the way in which, in the +teeth of discouragement from us, he has still persisted in making the +principle of preferential trade within the Empire an essential feature +of the Australian Tariff. + +Preference is vital to the future growth of British trade, but it is +not only trade which is affected by it. The idea which lies at the +root of it is that the scattered communities, which all own +allegiance to the British Crown, should regard and treat one another +not as strangers but as kinsmen, that, while each thinks first of its +own interests, it should think next of the interests of the family, +and of the rest of the world only after the family. That idea is the +very corner-stone of Imperial unity. To my mind any weakening of that +idea, any practical departure from it, would be an incalculable loss +to all of us. I should regard a readjustment of our own Customs duties +with the object of maintaining that idea, even if such readjustment +were of some immediate expense to ourselves, as I hope to show you +that it would not be, as a most trifling and inconsiderable price to +pay for a prize of infinite value. I am the last man to contend that +preferential trade alone is a sufficient bond of Empire. But I do +contend that the maintenance or creation of other bonds becomes very +difficult, if in the vitally important sphere of commerce we are to +make no distinction between our fellow-citizens across the seas and +foreigners. Closer trade relations involve closer relations in all +other respects. An advantage, even a slight advantage, to Colonial +imports in the great British market would tend to the development of +the Colonies as compared with the foreign nations who compete with +them. But the development of the British communities across the seas +is of more value to us than an equivalent development of foreign +countries. It is of more value to our trade, for, if there is one +thing absolutely indisputable, it is that these communities buy ever +so much more of us per head than foreign nations do. But it is not +only a question of trade; it is a question of the future of our +people. By encouraging the development of the British Dominions beyond +the seas we direct emigration to them in preference to foreign lands. +We keep our people under the flag instead of scattering them all over +the world. We multiply not merely our best customers but our fellow +citizens, our only sure and constant friends. + +And now is there nothing we can do to help forward this great object? +Is it really the case, as the Free Traders contend, that in order to +meet the advances of the other British States and to give, as the +saying is, Preference for Preference, we should be obliged to make +excessive sacrifices, and to place intolerable burdens on the people +of this country? I believe that this is an absolute delusion. I +believe that, if only we could shake off the fetters of a narrow and +pedantic theory, and freely reshape our own system of import duties on +principles of obvious common sense, we should be able at one and the +same time to promote trade within the Empire, to strengthen our hands +in commercial negotiations with foreign countries, and to render tardy +justice to our home industries. + +The Free Trader goes on the principle of placing duties on a very few +articles only, articles, generally, of universal consumption, and of +making those duties very high ones. Moreover, with the exception of +alcohol, these articles are all things which we cannot produce +ourselves. I do not say that the system has not some merits. It is +easy to work, and the cost of collection is moderate. But it has also +great defects. The system is inelastic, for the duties being so few +and so heavy it is difficult to raise them in case of emergency +without checking consumption. Moreover, the burden of the duties +falls entirely on the people of this country, for the foreign +importer, except in the case of alcoholic liquors, has no home +producer to compete with, and so he simply adds the whole of the duty +to the price of the article. Last, but not least, the burden is +inequitably distributed. It would be infinitely fairer, as between +different classes of consumers, to put a moderate duty on a large +number of articles than to put an enormous duty on two or three. But +from that fairer and more reasonable system we are at present debarred +by our pedantic adhesion to the rule that no duty may be put on +imported articles unless an equivalent duty is put on articles of the +same kind produced at home. Why, you may well ask, should we be bound +by any such rule? I will tell you. It is because, unless we imposed +such an equivalent duty, we should be favouring the British producer, +and because under our present system every other consideration has got +to give way to this supreme law, the "categorical imperative" of the +Free Trader, that we must not do anything which could by any +possibility in the remotest degree benefit the British producer in +his competition with the foreigner in our home market. It is from the +obsession of this doctrine that the Tariff Reformer wishes to liberate +our fiscal policy. He approaches this question free from any doctrinal +prepossessions whatever. Granted that a certain number of millions +have to be raised by Customs duties, he sees before him some five to +six hundred millions of foreign imports on which to raise them, and so +his first and very natural reflection is, that by distributing duties +pretty equally over this vast mass of imported commodities he could +raise a very large revenue without greatly enhancing the price of +anything. Our present system throws away, so to speak, the advantage +of our vast and varied importation by electing to place the burden of +duties entirely on very few articles. As against this system the +Tariff Reformer favours the principle of a widespread tariff, of +making all foreign imports pay, but pay moderately, and he holds that +it is no more than justice to the British producer that all articles +brought to the British market should contribute to the cost of +keeping it up. It is no answer to say that it is the British consumer +who would pay the duty, for even if this were invariably true, which +it is not, it leaves unaffected the question of fair play between the +British producer and the foreign producer. The price of the home-made +article is enhanced by the taxes which fall upon the home makers, and +which are largely devoted to keeping up our great open market, but the +price of the foreign article is not so enhanced, though it has the +full benefit of the open market all the same. Moreover, the price of +the home-made article is also enhanced by the many restrictions which +we place, and rightly place, on home manufacture in the interests of +the workers--restrictions as to hours, methods of working, sanitary +conditions, and so forth--all excellent, all laudable, but expensive, +and from which the foreign maker is often absolutely, and always +comparatively, free. The Tariff Reformer is all for the open market, +but he is for fair play as between those who compete in it, and he +holds that even cheapness ought not to be sought at the expense of +unfairness to the British producer. + +I say, then, that the Tariff Reformer starts with the idea of a +moderate all-round tariff. But he is not going to ride his principle +to death. He is essentially practical. There are some existing duties, +like those on alcoholic liquors, the high rate of which is justified +for other than fiscal reasons. He sees no reason to lower these +duties. On the other hand, there are some articles, such as raw +cotton, which compete with no British produce, and even a slight +enhancement of the price of which might materially injure our export +trade. The Tariff Reformer would place these on a free list, for he +feels that, however strong may be the argument for moderate all-round +duties as a guiding rule, it is necessary to admit exceptions even to +the best of rules, and it is part of his creed that we are bound to +study the actual effect of particular duties both upon ourselves and +upon others. No doubt that means hard work, an intimate acquaintance +with the details of our industry and trade, an eye upon the +proceedings of foreign countries. A modern tariff, if it is to be +really suitable to the requirements of the nation adopting it, must be +the work of experts. But is that any argument against it? Are we less +competent to make a thorough study of these questions than other +people, as for instance the Germans, or are we too lazy? Free Traders +make fun of a scientific tariff, but why should science be excluded +from the domain of fiscal policy, especially when the necessity of it +is so vigorously and so justly impressed upon us in every other field? +It is not only the War Office which has got to get rid of antiquated +prejudices and to open its eyes to what is going on in the world. Our +financial departments might reasonably be asked to do the same, and +they are quite equally capable, and I have no doubt equally willing, +to respond to such an appeal, instead of leaving the most thorough, +the most comprehensive, and the most valuable inquiry into the effects +of import duties, which has ever been made in this country, to a +private agency like the Tariff Commission. + +I do not think it is necessary for me to point out how a widespread +tariff, besides those other advantages which I have indicated, would +strengthen our hands in commercial policy. In the first place, it +would at once enable us to meet the advances of the other States of +the Empire, and to make the British Empire in its commercial aspect a +permanent reality. To do this it would not be necessary, nor do I +think it would be right, to exempt goods from the British Dominions +entirely from the duties to which similar goods coming from foreign +lands are subject. Our purpose would be equally well served by doing +what the Colonies do, and having two scales of duty, a lower one for +the products of all British States and Dependencies, a higher one for +those of the outside world. The amount of this preference would be a +matter of bargain to be settled by some future Imperial Conference, +not foredoomed to failure, and preceded by careful preliminary +investigation and negotiations. It might be twenty-five, or +thirty-three, or even fifty per cent. And whatever it was, I think we +should reserve the right also to give a preference, but never of the +same amount, to any foreign country which was willing to give us some +substantial equivalent. It need not be a general preference; it might +be the removal or reduction of some particular duties. I may say I do +not myself like the idea of engaging in tariff wars. I do not believe +in prohibitive or penal tariffs. But I do believe in having something +to give to those who treat us well, something to withhold from those +who treat us badly. At present, as you are well aware, Great Britain +is the one great nation which is treated with absolute disregard by +foreign countries in framing their tariffs. They know that however +badly they treat us they have nothing to lose by it, and so we go to +the wall on every occasion. + +And now, though there is a great deal more to be said, I feel I must +not trespass much further on your patience. But there is one objection +to Tariff Reform which is constantly made, and which is at once so +untrue and so damaging, that before sitting down I should like to say +a few words about it. We are told that this is an attempt to transfer +the burden of a part of our taxation from the shoulders of the rich to +those of the poor. If that were true, it would be fatal to Tariff +Reform, and I for one would have nothing to do with it. But it is not +true. There is no proposal to reduce and I believe there is no +possibility of reducing, the burden which at present falls on the +shoulders of the upper and middle classes in the shape of direct +taxation. On the other hand, I do not believe there is much room for +increasing it--though I think it can be increased in one or two +directions--without consequences which the poorer classes would be the +first to feel. Excise duties, which are mainly paid by those classes, +are already about as high as they can be. It follows that for any +increase of revenue, beyond the ordinary growth arising from increase +of wealth and population, you must look, at least to a great extent, +to Customs duties. And the tendency of the time is towards increased +expenditure, all of it, mind you--and I do not complain of the +fact--due to the effort to improve the condition of the mass of the +people. It is thus no question of shifting existing burdens, it is a +question of distributing the burden of new expenditure of which the +mass of the people will derive the benefit. And if that new +expenditure must, as I think I have shown, be met, at least in large +part, by Customs duties, which method of raising these duties is more +in the interest of the poorer classes--our present system, which +enhances enormously the price of a few articles of universal +consumption like tea and sugar and tobacco, or a tariff spread over a +much greater number of articles at a much lower rate? Beyond all doubt +or question the mass of the people would be better off under the +latter system. Even assuming--as I will for the sake of argument, +though I do not admit it--that the British consumer pays the whole of +the duty on imported foreign goods competing with British goods, is it +not evident that the poorer classes of the community would pay a +smaller proportion of Customs duties under a tariff which included a +great number of foreign manufactured articles, at present entirely +free, and largely the luxuries of the rich, than they do, when Customs +duties are restricted to a few articles of universal consumption? + +And that is at the same time the answer to the misleading, and often +dishonest, outcry about "taxing the food of the people," about the big +loaf and little loaf, and all the rest of it. The construction of a +sensible all-round tariff presents many difficulties, but there is +one difficulty which it does not present, and that is the difficulty +of so adjusting your duties that the total proportion of them falling +upon the wage-earning classes shall not be increased. I for one regard +such an adjustment as a postulate in any scheme of Tariff Reform. And +just one other argument--and I recommend it especially to those +working-class leaders who are so vehement in their denunciation of +Tariff Reform. Is it of no importance to the people whom they +especially claim to represent that our fiscal policy should lean so +heavily in favour of the foreign and against the British producer? If +they regard that as a matter of indifference, I think they will come +to find in time that the mass of the working classes do not agree with +them. But be that as it may, it is certain that I, for one, do not +advocate Tariff Reform in the interests of the rich, but in the +interests of the whole nation, and therefore necessarily of the +working classes, who are the majority of the nation. + + + + +A CONSTRUCTIVE POLICY + +Guildford, October 29, 1907 + + +I am very sensible of the honour of being called on to reply for the +Unionist cause, but I approach the task with some diffidence, not to +say trepidation. I feel very conscious that I am not a very good +specimen of a party man. It is not that I do not hold strong opinions +on many public questions--in fact, that is the very trouble. My +opinions are too strong to fit well into any recognised programme. I +suffer from an inveterate habit, which is partly congenital, but which +has been developed by years spent in the service of the Crown, of +looking at public questions from other than party points of view. And +I am too old to unlearn it. + +For a man so constituted there is evidently only a limited _role_ in +political life. But he may have his uses all the same, if you take +him for what he is, and not for what he is not, and does not pretend +to be. If he does not speak with the weight and authority of a party +leader, he is at least free from the embarrassments by which a party +leader is beset, and unhampered by the caution which a party leader is +bound to exercise. He commits nobody but himself, and therefore he can +afford to speak with a bluntness which is denied to those whose +utterances commit many thousands of other people. And I am not sure +whether the present moment is not one at which the unconventional +treatment of public questions may not be specially useful, so, whether +it be as an independent Unionist or as a friendly outsider--in +whichever light you like to regard me--I venture to contribute my mite +to the discussion. + +Having now made my position clear, I will at once plunge _in medias +res_ with a few artless observations. You hear all this grumbling +which is going on just now against the Unionist leader. Well, +gentlemen, a party which is in low water always does grumble at its +leader. I have known this sort of thing happen over and over again in +my own lifetime. And the consequence is, it is all like water on a +duck's back to me; it makes no impression on me whatsoever. I remember +as long back as the late sixties and early seventies the Conservative +party were ceaselessly grumbling at Lord Beaconsfield, then Mr. +Disraeli, right up to his greatest victory and the commencement of his +longest tenure of power--almost up to the moment when he became the +permanent idol of the Conservative party. I remember how the Liberals +grumbled at Mr. Gladstone from 1873 and 1874 almost up to the opening +of the Midlothian campaign. Again, I remember how the Conservatives +grumbled at Lord Salisbury from the first moment of his accession to +the leadership right up to 1885. I can recall as well as if it were +yesterday a young Tory friend of mine--he has become a distinguished +man since, and I am not going to give him away--telling me, who was at +that time a Liberal, in the year of grace 1883 or 1884, that it was +absolutely hopeless for the Tory party ever to expect to come back +into power with such a leader as Lord Salisbury. He called him a +"Professor." He said, "No doubt he is a very able man and an excellent +speaker, but he is a man of science. He has no popular gifts whatever. +There is not a ghost of a chance of a Conservative victory so long as +he is in command." Yet that was not more than two years before Lord +Salisbury commenced a series of Premierships which kept him, for some +thirteen and a half years out of seventeen, at the helm of the State. + +With all these experiences to look back upon it is really impossible +for me to be much affected by the passing wave of dissatisfaction with +Mr. Balfour. Men of first-rate ability and character are rare. Still +rarer are men who, having those qualities, also have the knack of +compelling the attention and respect even of a hostile House of +Commons. When a party possesses a leader with all these gifts, it is +not likely to change him in a hurry. + +But if I refuse to take a gloomy view of the Unionist leadership, I +must admit that I am not altogether an optimist about the immediate +prospects of Unionism. There is no doubt a bright side to the picture +as well as a less encouraging one. The bright side, from the party +point of view, is afforded by the hopeless chaos of opinion in the +ranks of our opponents--by the total absence of any clear conviction +or definite line whatever in the counsels of the Government, which +causes Ministers to dash wildly from measure to measure in +endeavouring to satisfy first one section and then another section of +their motley following, and which prevents them from ever giving +really adequate attention to any one of their proposals. + +I am not speaking of Ministers individually. Granted that some of them +have done excellent work at the heads of their several departments--I +think it would not be fair to deny that. I am thinking of their +collective policy, and especially of their legislative efforts. For +monuments of clumsy opportunism, commend me to the legislative +failures, and, for the matter of that, to most of the legislative +achievements, of the last two years. + +So far so good. Unionists cannot complain of what the Government is +doing for them. And on the negative side of policy--in their duty as +a mere Opposition--their course is clear. It is a fundamental article +of their faith to maintain the authority of the Imperial Parliament in +Ireland. But that authority can be set aside by the toleration of +lawlessness just as much, and in a worse way, than by the repeal of +the Union. And such toleration is the rule to-day. There may be no +violent crime, but there is open and widespread defiance of the law +and interference with the elementary rights of law-abiding people. It +is a demoralising state of affairs, and one to which no good citizen +in any part of the United Kingdom, however little he may be personally +affected by it, can afford to be indifferent. Once let it be granted +that any popular movement, which is not strong enough to obtain an +alteration of the law by regular means, can simply set the law aside +in practice, and you are at the beginning of general anarchy. + +Unionists have to fight for a restoration of the respect for law in +Ireland in the interest of the whole kingdom. And they may have to +fight also, it appears, against the abrogation of our existing +constitution in favour of a system of quinquennial dictatorships. For +that and nothing else is involved in the proposal to reduce the House +of Lords to impotence and put nothing in its place. I am not concerned +to represent the present constitution of the House of Lords as +perfect. I have always been of opinion that a more representative and +therefore a stronger second chamber was desirable. But that we can +afford to do without any check on the House of Commons, especially +since the removal of all checks upon the power of those who from time +to time control the House of Commons to rush through any measures they +please without the possibility of an appeal to the people--that is a +proposition which no man with any knowledge of history or any respect +for constitutional government can possibly defend. To resist such a +proposal as that is not fighting for a party; it is not fighting for a +class. It is fighting for the stability of society, for the +fundamental rights of the whole nation. + +I say, then, that on the negative side, in the things it is called +upon to resist, the Unionist party is strong and fortunate. But are we +to be content with that? Should we not all like to feel that we +appealed for the confidence of the people on the merits of our own +policy, and not merely on the demerits of our opponents? That, I take +it, is the feeling at the bottom of what men are saying on all hands +just now--that the Unionist party ought to have a constructive policy. +Now, if by a constructive policy is meant a string of promises, a sort +of Newcastle programme, then I can well imagine any wise statesmen, +especially if they happened to be in Opposition, thinking twice before +they committed themselves to it. But if by a constructive policy is +meant a definite set of principles, a clear attitude to the questions +which most agitate the public mind, a sympathetic grasp of popular +needs, and a readiness to indicate the extent to which, and the lines +on which, you think it possible and desirable to satisfy them--then I +agree that the Unionist party ought to have such a policy. And I +venture to say that, if it has such a policy, the fact is not yet +sufficiently apparent to the popular mind, or, perhaps, I should say, +speaking as one of the populace, to my mind. + +Many people think that it is sufficient for the purpose--that it is +possible to conduct a victorious campaign with the single watchword +"Down with Socialism." Well, I am not fond of mere negatives. I do not +like fighting an abstract noun. My objection to anti-Socialism as a +platform is that Socialism means so many different things. On this +point I agree with Mr. Asquith. I will wait to denounce Socialism till +I see what form it takes. Sometimes it is synonymous with robbery, and +to robbery, open or veiled, boldly stalking in the face of day or +hiding itself under specious phrases, Unionists are, as a matter of +course, opposed. But mere fidelity to the eighth Commandment is not a +constructive policy, and Socialism is not necessarily synonymous with +robbery. Correctly used, the word only signifies a particular view of +the proper relation of the State to its citizens--a tendency to +substitute public for private ownership, or to restrict the freedom of +individual enterprise in the interests of the public. But there are +some forms of property which we all admit should be public and not +private, and the freedom of individual enterprise is already limited +by a hundred laws. Socialism and Individualism are opposing +principles, which enter in various proportions into the constitution +of every civilised society; it is merely a question of degree. One +community is more Socialistic than another. The same community is more +Socialistic at one time than at another. This country is far more +Socialistic than it was fifty years ago, and for most of the changes +in that direction the Unionist and the Tory party are responsible. The +Factory Acts are one instance; free education is another. The danger, +as it seems to me, of the Unionist party going off on a crusade +against Socialism is that in the heat of that crusade it may neglect, +or appear to neglect, those social evils of which honest Socialism is +striving, often, no doubt, by unwise means, to effect a cure. If the +Unionist party did that, it would be unfaithful to its own best +traditions from the days of "Sybil" and "Coningsby" to the present +time. + +The true antidote to revolutionary Socialism is practical social +reform. That is no claptrap phrase--although it may sound so; there is +a great historical truth behind it. The revolutionary Socialist--I +call him revolutionary because he wants to alter the whole basis of +society--would like to get rid of all private property, except, +perhaps, our domestic pots and pans. He is averse from private +enterprise. He is going absurdly too far; but what gave birth to his +doctrine? The abuse of the rights of private property, the cruelty and +the failure of the scramble for gain, which mark the reign of a +one-sided Individualism. If we had not gone much too far in one +direction, we should not have had this extravagant reaction in the +other. But do not let us lose our heads in face of that reaction. +While resisting the revolutionary propaganda, let us be more, and not +less, strenuous in removing the causes of it. + +You may think I am now talking pure Radicalism. Well, but it is not to +the objects which many Radicals have at heart that we, as Unionists, +need take exception. Why should we make them a present of those good +objects? Old age pensions; the multiplication of small landholders--and, +let me add, landowners; the resuscitation of agriculture; and, on the +other hand, better housing in our crowded centres; town planning; +sanitary conditions of labour; the extinction of sweating; the physical +training of the people; continuation schools--these and all other +measures necessary to preserve the stamina of the race and develop its +intelligence and productive power--have we not as good a right to +regard these as our objects, aye, and in many cases a better right, than +the supporters of the Government have? + +It is not these objects which we deprecate. On the contrary, they have +our ardent sympathy. What we do deprecate is the spirit in which they +are so often preached and pursued. No progress is going to be +made--quite the contrary--by stirring up class hatred or trying to rob +Peter in order to pay Paul. It is not true that you cannot benefit one +class without taking from another class--still less true that by +taking from one you necessarily benefit another. The national income, +the sum total of all our productive activities, is capable of being +enormously increased or diminished by wise or foolish policy. For it +does not only depend on the amount of capital and labour. A number of +far subtler factors enter into the account--science, organisation, +energy, credit, confidence, the spirit in which men set about their +business. The one thing which would be certain to diminish that +income, and to recoil on all of us, would be that war of classes which +many people seem anxious to stir up. Nothing could be more fatal to +prosperity, and to the fairest hopes of social progress, than if the +great body of the upper and middle classes of the community had cause +to regard that progress as indissolubly associated with an attack upon +themselves. And that is why, if reforms such as I have indicated are +costly--as they will be costly--you must find some better way of +providing for them than by merely giving another turn to the +income-tax screw, or just adding so much per cent. to the estate duty. + +From my point of view, social reform is a national affair. All classes +benefit by it, not only those directly affected. And therefore all +should contribute according to their means. I do not in any way object +to the rich being made to contribute, even for purposes in which they +are not directly interested. What I do object to is that the great +body of the people should not contribute to them. It is thoroughly +vicious in principle to divide the nation, as many of the Radical and +Labour men want to divide it, into two sections--a majority which only +calls the tune, and a minority which only pays the piper. + +I own I am aghast at the mean opinion which many politicians seem to +have of the mass of their working fellow countrymen, when they +approach them with this crude sort of bribery, offering them +everything for nothing, always talking to them of their claims upon +the State, and never of their duties towards it. This is a democratic +country. It is their State and their Empire--theirs to possess, theirs +to control, but theirs also to support and to defend. And I for one +have such faith in the common sense and fair-mindedness of the British +people that I believe you have only to convince them that you have a +really sound national policy, and they will rally to it, without +having to be bought by promises of a penny off this and twopence off +the other--a sort of appeal, I regret to say, which is not only +confined to Radical orators, but in which Unionists also are +sometimes too apt to indulge. + +And, now, gentlemen, only one word in conclusion--a brief and +inadequate reference to a vast subject, but one to which I am at all +times and seasons specially bound to refer. After all, my chief +quarrel with the Radical party--not with all of them--I do not say +that for a moment--but with a far too large and influential +section--is their anti-patriotism. I use the word advisedly. It is not +that they are unpatriotic in the sense of having no affection for +their country. It is that they are deliberately and on principle--I do +not asperse their motives; I do not question their sincerity and +conviction--anti-patriotic, opposed to national as distinct from +cosmopolitan ideals. They are not zealous for national defence; they +have no faith in the Empire; they love to show their impartiality by +taking sides against their own country; they object to their children +being taught respect for the flag. But we Unionists are not +cosmopolitans, but Britons. We have no envy or ill-will towards other +nations; a man is not a worse neighbour because he loves his own +family. But we do hold that it is not our business to look after +others. It is our business to look after ourselves and our +dependencies, and the great kindred communities who own allegiance to +the British flag. We want to draw closer to them, to stand together; +and we believe that the strength and the unity of the British Empire +are of vital and practical importance to every citizen. In all our +propaganda, and in all our policy, let us continue to give that great +principle a foremost place. + + + + +UNIONISTS AND THE EMPIRE + +Edinburgh, November 15, 1907 + + +I am greatly reassured by the very kind reception which you have just +given me. To tell the truth, I had been feeling a little alarmed at +the fate which might await me in Edinburgh. From a faithful perusal of +the Radical Press I had been led to believe that Scotland was seething +with righteous indignation against that branch of the Legislature of +which I am, it is true, only a humble and very recent member, but yet +a member, and therefore involved in the general condemnation of the +ruthless hereditary tyrants and oppressors of the people, the +privileged landowning class, which is alleged to be so out of sympathy +with the mass of their fellow-countrymen, although, oddly enough, it +supplies many of the most popular candidates, not only of one party, +at any General Election. Personally, I feel it rather hard to be +painted in such black colours. There is no taint of hereditary +privilege about me. I am not--I wish I were--the owner of broad acres, +and I am in no way conscious of belonging to a specially favoured +class. There are a great many of my fellow members in the House of +Lords who are in the same position, and who sit there, not by virtue +of any privilege, but by virtue of their services, or, let me say in +my own case, supposed services, to the State. And while we sit +there--and here I venture, with all humility, to speak for all the +members of that body, whether hereditary or created--we feel that we +ought to deal with the questions submitted to us to the best of our +judgment and conscience, without fear of the consequences to ourselves +and without allowing ourselves to be brow-beaten for not being +different from what we are. We believe that we perform a useful and +necessary function. We believe that a Second Chamber is essential to +the good government of this country. We do not contend--certainly I am +myself very far from contending--that the existing Second Chamber is +the best imaginable. Let there be a well-considered reform of the +House of Lords, or even, if need be, an entirely different Second +Chamber. But until you have got this better instrument, do not throw +away the instrument which you have--the only defence, not of the +privileges of a class, but of the rights of the whole nation, against +hasty, ill-considered measures and against the subordination of +permanent national interests to the temporary exigencies of a party. + +It is said that there is a permanent Conservative majority in the +House of Lords. But then every Second Chamber is, and ought to be, +conservative in temper. It exists to exercise a restraining influence, +to ensure that great changes shall not be made in fundamental +institutions except by the deliberate will of the nation, and not as +the outcome of a mere passing mood. And if the accusation is, that the +House of Lords is too Conservative in a party sense, which is a +different thing, I admit, from being Conservative in the highest and +best sense, that points not to doing away with the Second Chamber, but +to making such a change in its composition as, while leaving it still +powerful, still, above all, independent, will render it more +representative of the permanent mind of the nation. + +But let me be permitted to observe that the instance relied on to prove +that the House of Lords is in the pocket of the Conservative party is a +very unfortunate instance. What is its offence? It is said that the +Lords rejected the Scottish Land Bill. But they did not reject the +Scottish Land Bill. They were quite prepared to accept a portion of the +Bill, and it is for the Government to answer to the people interested +in that portion for their not having received the benefits which the +Bill was presumably intended to bestow on them. What the Government did +was to hold a pistol at the head of the House of Lords, and to say that +they must either accept the whole straggling and ill-constructed +measure as it stood, or be held up to public odium for rejecting it. +But when the Bill was looked at as a whole, it was found to contain +principles--novel principles as far as the great part of Scotland was +concerned, bad principles, as the experience of Ireland showed--which +the House of Lords, and not only the Conservatives in the House of +Lords, were not prepared to endorse. Was it Conservative criticism +which killed the Bill? It was riddled with arguments by a Liberal Peer +and former Liberal Prime Minister--arguments to which the Government +speakers were quite unable, and had the good sense not even to attempt, +to reply. And that is the instance which is quoted to prove that the +House of Lords is a Tory Caucus! + +Now, before leaving this question of the House of Lords, let me just +say one word about its general attitude. I have not long been a member +of that assembly. I do not presume to take much part in its +discussions. But I follow them, and I think I follow them with a +fairly unprejudiced mind. On many questions I am perhaps not in accord +with the views of the majority of the House. But what strikes me about +the House of Lords is that it is a singularly independent assembly. It +is not at the beck and call of any man. It is a body which does not +care at all about party claptrap, but which does care a great deal +about a good argument, from whatever quarter it may proceed. +Moreover, I am confident that the great body of its members are quite +alive to the fact that they cannot afford to cast their votes merely +according to their individual opinions and personal prejudices--that +they are trustees for the nation, and that while it is their duty to +prevent the nation being hustled into revolution, as but for them it +would have been hustled into Home Rule in 1893, they have no right to +resist changes upon which the nation has clearly and after full +deliberation set its mind. And when the Prime Minister says that it is +intolerable arrogance on the part of the House of Lords to pretend to +know better what the nation wishes than the House of Commons, I can +only reply that the proof of the pudding is in the eating. In 1893 the +House of Commons said that the nation wished Home Rule. The House of +Lords had the intolerable arrogance to take a different view. Well, +within less than two years the question was submitted to the nation; +and who proved to be right? + +I regret to have had to dwell at such length upon this particular +topic. But it seems to me that we have no choice in the matter. If +the Government succeed in their attempt to divert the attention of the +nation from matters of the greatest interest at home and abroad in +order to involve us all in a constitutional struggle on a false issue, +we must be prepared to meet them. But I do not wish to waste the rare +opportunity afforded to me to-night of addressing this great and +representative Scottish audience by talking exclusively about this +regrettable manoeuvre. There is something I am anxious to say to you +about the future of the Unionist party. I do not claim to lay down a +policy for that or for any party. I am not, by temperament or +antecedents, a good party man. But I want to be allowed, as a private +citizen, to point out what are the great services which I think the +Unionist party can render to the nation at the present very critical +juncture in its history. The Unionist party has a splendid record in +the past. For twenty years it has saved the United Kingdom from +disruption. It has preserved South Africa for the Empire; and, greatly +as I feel and know, that the results of the efforts and sacrifices of +the nation have been marred and impaired by the disastrous policy of +the last two years, South Africa is still one country under the +British flag. And all the time, in spite of foreign war and domestic +sedition, the Unionist party has pursued a steady policy of practical +social reform, and the administrative and legislative record of the +last twenty years will compare favourably with that of any period of +our history. + +But no party can afford to rely upon its past achievements. How is the +Unionist party going to confront the great problems of the present +day? The greatest of these problems, as I shall never cease to preach +to my countrymen, is the maintenance of the great heritage which we +owe to the courage, the enterprise, and the self-sacrifice of our +forefathers, who built up one of the greatest Empires in history by, +on the whole, the most honourable means. The epoch of expansion is +pretty nearly past, but there remains before us a great work of +development and consolidation. And that is a work which should appeal +especially to Scotsmen. The Scottish people have borne a great part, +great out of proportion to their numbers, in building up our common +British heritage. They are taking a foremost part in it to-day. All +over the world, as settlers in Canada, in Australia, or in South +Africa, as administrators in India and elsewhere, they are among the +sturdiest pillars on which the great Imperial fabric rests. I am not +talking in the air. I am speaking from my personal experience, and +only saying in public here to-night what I have said in private a +hundred times, that as an agent of my country in distant lands I have +had endless occasion to appreciate the support given to the British +cause by the ability, the courage, the shrewd sense and the broad +Imperial instinct of many Scotsmen. And therefore I look with +confidence to a Scottish audience to support my appeal for continuous +national effort in making the most of the British Empire. I say this +is not a matter with regard to which we can afford to rest on our +laurels. We must either go forward or we shall go back. And especially +ought we to go forward in developing co-operation, on a basis of +equality and partnership, with the great self-governing communities +of our race in the distant portions of the world, else they will drift +away from us. Do not let us think for a moment that we can afford such +another fiasco as the late Colonial Conference. Do not let us imagine +for a moment that we can go to sleep over the questions then raised, +and not one of them settled, for four years, only to find ourselves +unprepared when the next Conference meets. A cordial social welcome, +many toasts, many dinners, are all very well in their way, but they +are not enough. What is wanted is a real understanding of what our +fellow countrymen across the seas are driving at, and a real attempt +to meet them in their efforts to keep us a united family. All that our +present rulers seem able to do is to misunderstand, and therefore +unconsciously to misrepresent--I do not question their good +intentions, but I think they are struck with mental blindness in this +matter--to misrepresent the attitude of the colonists and greatly to +exaggerate the difficulties of meeting them half-way. The speeches of +Ministers on a question like that of Colonial Preference leave upon me +the most deplorable impression. One would have thought that, if they +could not get over the objections which they feel to meeting the +advances of our kinsmen, they would at least show some sort of regret +at their failure. But not a bit of it. Their one idea all along has +been to magnify the difficulties in the way in order to make party +capital out of the business. They saw their way to a good cry about +"taxing the food of the people," the big and the little loaf, and so +forth, and they went racing after it, regardless of everything but its +electioneering value. From first to last there has been the same +desire to make the worst of things, sometimes by very disingenuous +means. First of all it was said that there was "no Colonial offer." +But when the representatives of the Colonies came here, and all in the +plainest terms offered us preference for preference, this device +evidently had to be abandoned. So then it was asserted that, in order +to give preference to the Colonies, we must tax raw materials. But +this move again was promptly checkmated by the clear and repeated +declaration of the Colonial representatives that they did not expect +us to tax raw materials. And so nothing was left to Ministers, +determined as they were to wriggle out of any agreement with the +Colonies at all costs, except to fall back on the old, weary +parrot-cry--"Will you tax corn?" "Will you tax butter?" and so on +through the whole list of articles of common consumption, the taxation +of any one of which was thought to be valuable as an electioneering +bogey. + +For my own part, I am not the least bit frightened by any of these +questions. If I am asked whether I would tax this or tax that, it may +be proof of great depravity on my part, but I say without hesitation, +that, for a sufficient object, I should not have the least objection +to putting two shillings a quarter on wheat or twopence a pound on +butter. But I must add that the whole argument nauseates me. What sort +of opinion must these gentlemen have of their fellow countrymen, if +they think that the question of a farthing on the quartern loaf or +half a farthing on the pat of butter is going to outweigh in their +minds every national consideration? And these are the men who accused +Mr. Chamberlain of wishing to unite the Empire by sordid bonds! It is +indeed extraordinary and to my mind almost heartrending to see how +this question of Tariff Reform continues to be discussed on the lowest +grounds, and how its higher and wider aspects seem to be so constantly +neglected. Yet we have no excuse for ignoring them. The Colonial +advocates of Preference, and especially Mr. Deakin, with whose point +of view I thoroughly agree, have repeatedly explained the great +political, national, and I might almost say moral aspects of that +policy. There is a great deal more in it than a readjustment of +duties--twopence off this and a penny on that. I do not say that such +details are not important. When the time comes I am prepared to +show--and I am an old hand at these things--that the objections which +loom so large in many eyes can really be very easily circumvented. But +I would not attempt to bother my fellow countrymen with complicated +changes in their fiscal arrangements, or even with the discussion of +them, if it were not for the bigness of the principle that is +involved. + +I wish to look at it from two points of view. The principle which +lies at the root of Tariff Reform, in its Imperial aspect, is the +national principle. The people of these great dominions beyond the +seas are no strangers to us. They are our own kith and kin. We do not +wish to deal with them, even in merely material matters, on the same +basis as with strangers. That is the great difference between us +Tariff Reformers and the Cobdenites. The Cobdenite only looks at the +commercial side. He is a cosmopolitan. He does not care from whom he +buys, or to whom he sells. He does not care about the ulterior effects +of his trading, whether it promotes British industry or ruins it; +whether it assists the growth of the kindred States, or only enriches +foreign countries. To us Tariff Reformers these matters are of moment, +and of the most tremendous moment. We do not undervalue our great +foreign trade, and I for one am convinced that there is nothing in the +principles of Tariff Reform which will injure that trade. Quite the +reverse. But we do hold that our first concern is with the industry +and productive capacities of our own country, and our next with those +of the great kindred countries across the seas. We hold that a wise +fiscal policy would help to direct commerce into channels which would +not only assist the British worker, but also assist Colonial +development, and make for the greater and more rapid growth of those +countries, which not only contain our best customers, but our fellow +citizens. + +That, I say, is one aspect of the matter. But then there is the other +side--the question of social reform in this country. Now here again we +differ from the Cobdenite. The Cobdenite is an individualist. He +believes that private enterprise, working under a system of unfettered +competition, with cheapness as its supreme object, is the surest road +to universal well-being. The Tariff Reformer also believes in private +enterprise, but he does not believe that the mere blind struggle for +individual gain is going to produce the most beneficent results. He +does not believe in cheapness if it is the result of sweating or of +underpaid labour. He keeps before him as the main object of all +domestic policy the gradual, steady elevation of the standard of life +throughout the community; and he believes that the action of the +State deliberately directed to the encouragement of British industry, +not merely by tariffs, is part and parcel of any sound national policy +and of true Imperialism. And please observe that in a number of cases +the Radical party itself has abandoned Cobdenism. Pure individualism +went to the wall in the Factory Acts, and it is going to the wall +every day in our domestic legislation. It is solely with regard to +this matter of imports that the Radical party still cling to the +Cobdenite doctrine, and the consequence is that their policy has +become a mass of inconsistencies. It is devoid of any logical +foundation whatever. + +I know that there are many people, sound Unionists at heart, who still +have a difficulty about accepting the doctrines of the Tariff +Reformers. My belief is that, if they could only look at the matter +from the broad national and Imperial point of view, they would come to +alter their convictions. I am not advocating Tariff Reform as in +itself the greatest of human objects. But it seems to me the key of +the position. It seems to me that, without it, we can neither take the +first steps towards drawing closer the bonds between the mother +country and the great self-governing States of the Empire; nor +maintain the prosperity of the British worker in face of unfair +foreign competition; nor obtain that large and elastic revenue which +is absolutely essential, if we are going to pursue a policy of social +reform and mean real business. I cannot but hope that many of those +who still shy at Tariff Reform, when they come to look at it from this +point of view--to see it as I see it, not as an isolated thing, but as +an essential and necessary part of a comprehensive national +policy--will rally to our cause. I have travelled along that road +myself. I have been a Cobdenite myself--I am not ashamed of it. But I +have come to see that the doctrine of free imports--the religion of +free imports, I ought to say--as it is practised in this country +to-day, is inconsistent with social reform, inconsistent with fair +play to British industry, and inconsistent with the development and +consolidation of the Empire. And therefore I rejoice that, in the +really great speech which he delivered last night, the leader of the +Unionist party has once more unhesitatingly affirmed his adhesion to +the principles which I have been trying, in my feebler way, to +advocate here this evening. My own conviction is that, when these +principles are understood in all their bearings, they will command the +approval of the mass of the people. And even in Scotland, where I dare +say it is a very uphill fight, I look forward with confidence to their +ultimate victory. Do not let us be discouraged if the fight is long +and the progress slow. The great permanent influences are on our side. +On the one hand there is the growth of the Empire, with all the +opportunities which it affords; on the other there is the increasing +determination of foreign nations to keep their business to themselves. +These potent facts, which have already converted so many leading +minds, will in due time make themselves felt in ever-widening circles. +And they will not fail to produce their effect upon the shrewd +practical sense of the Scottish people, especially when combined with +an appeal to the patriotic instincts of a race which has done so much +to make the Empire what it is, and which has such a supreme interest +in its maintenance and consolidation. + + + + +UNIONISTS AND SOCIAL REFORM + +Rugby, November 19, 1907 + + +There has been such a deluge of talk during the last three weeks that +I doubt whether it is possible for me, or any man, to make a further +contribution to the discussion which will have any freshness or value. +But inasmuch as you probably do not all read all the speeches, you may +perhaps be willing to hear from me a condensed summary of what it all +comes to--of course, from my point of view, which no doubt is not +quite the same as that of the Prime Minister or Mr. Asquith. Now, from +my point of view, there has been a considerable clearing of the air, +and we ought all to be in a position to take a more practical and less +exaggerated view of the situation. Speaking as a Tariff Reformer, I +think that those people, with whom Tariff Reformers agree on almost +all other political questions, but who are strongly and +conscientiously opposed to anything like what they call tampering with +our fiscal system, must by now understand a little better than they +did before what Tariff Reformers really aim at, and must begin to see +that there is nothing so very monstrous or revolutionary about our +proposals. I hope they may also begin to see why it is that Tariff +Reformers are so persistent and so insistent upon their own particular +view. There is something very attractive in the argument which says +that, since Tariff Reform is a stumbling-block to many good Unionists, +it should be dropped, and our ranks closed in defence of an effective +Second Chamber, and in defence of all our institutions against +revolutionary attacks directed upon the existing order of society. In +so far as this is an argument for tolerance and against +excommunicating people because they do not agree with me about Tariff +Reform, I am entirely in accord with it. I am only a convert to Tariff +Reform myself, although I am not a very recent convert, for at the +beginning of 1903, at Bloemfontein, I was instrumental in inducing all +the South African Colonies to give a substantial preference to goods +of British origin. I was instrumental in doing that some months before +the great Tariff Reform campaign was inaugurated in this country by +its leading champion, Mr. Chamberlain. But while I am all for personal +tolerance, I am opposed to any compromise on the question of +principle. I am not opposed to it from any perverseness or any +obstinacy. I am opposed to it because I see clearly that dropping +Tariff Reform will knock the bottom out of a policy which I believe is +not only right in itself, but is the only effective defence of the +Union and of many other things which are very dear to us--I mean a +policy of constructive Imperialism, and of steady, consistent, +unhasting, and unresting Social Reform. + +I have never advocated Tariff Reform as a nostrum or as a panacea. I +have never pretended that it is by itself alone sufficient to cure all +the evils inherent in our social system, or alone sufficient as a bond +of Empire. What I contend is that without it, without recovering our +fiscal freedom, without recovering the power to deal with Customs +Duties in accordance with the conditions of the present time and not +the conditions of fifty years ago, we cannot carry out any of those +measures which it is most necessary that we should carry out. Without +it we are unable to defend ourselves against illegitimate foreign +competition; we are unable to enter into those trade arrangements with +the great self-governing States of the British Crown across the seas, +which are calculated to bestow the most far-reaching benefits upon +them and upon us; and we are unable to obtain the revenue which is +required for a policy of progressive Social Reform. I hope that people +otherwise in agreement with us, who have hitherto not seen their way +to get over their objections to Tariff Reform, will, nevertheless, +find themselves able to accept that principle, when they regard it, +not as an isolated thing, but as an essential part of a great national +and Imperial policy. + +Of course, they will have to see it as it is, and not as it is +represented by its opponents. The opponents of Tariff Reform have a +very easy method of arguing with its supporters. They say that any +departure whatsoever from our present fiscal system necessarily +involves taxing raw materials, and must necessarily result in high and +prohibitive duties, which will upset our foreign trade, and will be +ruinous and disorganising to the whole business of the country. But +Tariff Reformers are not going to frame their duties in order to suit +the argumentative convenience of Mr. Asquith. They are going to be +guided by wholly different considerations from that. It is curious +that everybody opposed to Tariff Reform says that Tariff Reformers +intend to tax raw material, while Tariff Reformers themselves have +steadily said they do not. I ask you in that respect to take the +description of a policy of Tariff Reform from those who advocate it, +and not from those who oppose it. And as for the argument about high +prohibitive duties, I wish people would read the reports or summaries +of the reports of the Tariff Commission. They contain not only the +most valuable collection that exists anywhere of the present facts +about almost every branch of British industry but they are also an +authoritative source from which to draw inferences as to the +intentions of Tariff Reformers. Now the Tariff Reform Commission have +not attempted to frame a complete tariff, a scale of duties for all +articles imported into this country, and wisely, because, if they had +tried to do that, people would have said that they were arrogating to +themselves the duties of Parliament. What they have done is to show by +a few instances that a policy of Tariff Reform is not a thing in the +air, not a mere thing of phrases and catchwords, but is a practical, +businesslike working policy. They have drawn up what may be called +experimental scales of duties, which are merely suggestions for +consideration, with respect to a number of articles under the +principal heads of British imports, such as, for instance, +agricultural imports and imports of iron and steel. These experimental +duties vary on the average from something like 5 per cent. to 10 per +cent. on the value of the articles. In no one case in my recollection +do they exceed 10 per cent. + +But then the opponents of Tariff Reform say: "Yes. That is all very +well. But though you may begin with moderate duties, you are bound to +proceed to higher ones. It is in the nature of things that you should +go on increasing and increasing, and in the end we shall all be +ruined." I must say that seems to me great nonsense. It reminds me of +nothing so much as the fearful warnings which I have read in the least +judicious sort of temperance literature, and sometimes heard from +temperance orators of the more extreme type--the sort of warning, I +mean, that, if you once begin touching anything stronger than water, +you are bound to go on till you end by beating your wife and die in a +workhouse. But you and I know perfectly well that it is possible to +have an occasional glass of beer or glass of wine, or even, low be it +spoken, a little whisky, without beating or wanting to beat anybody, +and without coming to such a terrible end. The argument against the +use of anything from its abuse has always struck me as one of the +feeblest of arguments. And just see how particularly absurd it is in +the present case. The effect of duties on foreign imports, even such +moderate and carefully devised duties as those to which I have +referred, would, we are told, be ruinous to British trade. It would +place intolerable burdens upon the people. Yet for all that the people +would, it appears, insist on increasing these burdens. Surely it is as +clear as a pike-staff that, if the duties which Tariff Reformers +advocate were to produce the evils which Free Importers allege that +they would produce, these duties, so far from being inevitably +maintained and increased, would not survive one General Election after +their imposition. + +It is not only with regard to Tariff Reform that I think the air is +clearer. The Unionist Party has to my mind escaped another danger +which was quite as great as that of allowing the Tariff question to be +pushed on one side, and that was the danger of being frightened by the +scare, which the noisy spreading of certain subversive doctrines has +lately caused, into a purely negative and defensive attitude; of +ceasing to be, as it has been, a popular and progressive party, and +becoming merely the embodiment of upper and middle class prejudices +and alarms. I do not say that there are not many projects in the air +which are calculated to excite alarm, but they can only be +successfully resisted on frankly democratic and popular lines. My own +feeling is--I may be quite wrong, but I state my opinion for what it +is worth--that there is far less danger of the democracy going wrong +about domestic questions than there is of its going wrong about +foreign and Imperial questions, and for this simple reason, that with +regard to domestic questions they have their own sense and experience +to guide them. + +If a mistake is made in domestic policy its consequences are rapidly +felt, and no amount of fine talking will induce people to persist in +courses which are affecting them injuriously in their daily lives. You +have thus a constant and effective check upon those who are disposed +to try dangerous experiments, or to go too fast even on lines which +may be in themselves laudable, as the experience of recent municipal +elections, among other things, clearly shows. But with regard to +Imperial questions, to our great and vital interests in distant parts +of the earth, there is necessarily neither the same amount of personal +knowledge on the part of the electorate, nor do the consequences of a +mistaken policy recoil so directly and so unmistakably upon them. +These subjects, therefore, are the happy hunting-ground of the +visionary and the phrase-maker. I have seen the people of this country +talked into a policy with regard to South Africa at once so injurious +to their own interests, and so base towards those who had thrown in +their lot with us and trusted us, that, if the British nation had only +known what that policy really meant, they would have spat it out of +their mouths. And I tremble every day lest, on the vital question of +Defence, the pressure of well-meaning but ignorant idealists, or the +meaner influence of vote-catching demagogues, should lead this +Government or, indeed, any Government, to curtail the provisions, +already none too ample, for the safety of the Empire, in order to pose +as the friends of peace or as special adepts in economy. I know these +savings of a million or two a year over say five or ten years, which +cost you fifty or one hundred millions, wasted through unreadiness +when the crisis comes, to say nothing of the waste of gallant lives +even more precious. This is the kind of question about which the +democracy is liable to be misled, being without the corrective of +direct personal contact with the facts to keep it straight. And it is +unpopular and up-hill work to go on reminding people of the vastness +of the duty and the responsibility which the control of so great a +portion of the earth's surface, with a dependent population of three +or four hundred millions, necessarily involves; to go on reminding +them, too, how their own prosperity and even existence in these +islands are linked by a hundred subtle but not always obvious or +superficially apparent threads with the maintenance of those great +external possessions. + +I say these are difficulties which any party or any man, who is +prepared to do his duty by the electorate of this country, not merely +to ingratiate himself with them for the moment, but to win their +confidence by deserving it, by telling them the truth, by serving +their permanent interests and not their passing moods, is bound to +face. For my own part, I have always been perfectly frank on these +questions. I have maintained on many platforms, I am prepared to +maintain here to-night and shall always maintain, although this is a +subject on which it may be long before my views are included in any +party programme--I say I shall always maintain that real security is +not possible without citizen service, and that the training of every +able-bodied man to be capable of taking part, if need be, in the +defence of his country, is not only good for the country but good for +the man--and would materially assist in the solution of many other +problems, social and economic. But being, as I am, thus +uncompromising, and quite prepared to find myself unpopular, on these +vital questions of national security, and of our Imperial duties and +responsibilities, I can perhaps afford to say, without being suspected +of fawning or of wishing to play the demagogue myself, that in the +matter of domestic reform I am not easy to frighten, and that I have a +very great trust in the essential fair-mindedness and good sense of +the great body of my fellow countrymen with regard to questions which +come within their own direct cognisance. And therefore it was most +reassuring to me at any rate--and I hope it was to you--to observe, +that that large section of the Unionist Party which met at Birmingham +last week, not so much by any resolutions or formal programme--for +there was nothing very novel in these--as by the whole tone and temper +of its proceedings, affirmed in the most emphatic manner the +essentially progressive and democratic character of Unionism. The +greatest danger I hold to the Unionist Party and to the nation is that +the ideals of national strength and Imperial consolidation on the one +hand, and of democratic progress and domestic reform on the other, +should be dissevered, and that people should come to regard as +antagonistic objects which are essentially related and complementary +to one another. The upholders of the Union, the upholders of the +Empire, the upholders of the fundamental institutions of the State, +must not only be, but must be seen and known to be, the strenuous and +constant assailants of those two great related curses of our social +system--irregular employment and unhealthy conditions of life--and of +all the various causes which lead to them. + +I cannot stay here to enumerate those causes, but I will mention a +few of them. There is the defective training of children, defective +physical training to begin with, and then the failure to equip them +with any particular and definite form of skill. There is the irregular +way in which new centres of population are allowed to spring up, so +that we go on creating fresh slums as fast as we pull down the old +rookeries. There is the depopulation of the countryside, and the +influx of foreign paupers into our already overcrowded towns. There is +the undermining of old-established and valuable British industries by +unfair foreign competition. That is not an exhaustive list, but it is +sufficient to illustrate my meaning. Well, wherever these and similar +evils are eating away the health and independence of our working +people, there the foundations of the Empire are being undermined, for +it is the race that makes the Empire. Loud is the call to every true +Unionist, to every true Imperialist, to come to the rescue. + +And now at the risk of wearying you there is one other subject to +which I would like specially to refer, lest I should be accused of +deliberately giving it the go-by, and that is the question of old age +pensions. It is not a reform altogether of the same nature as those on +which I have been dwelling, nor is it perhaps the kind of reform about +which I feel the greatest enthusiasm, because I would rather attack +the causes, which lead to that irregularity of employment and that +under-payment which prevents people from providing for their own old +age themselves, than merely remedy the evils arising from it. But I +accept the fact that under present conditions, which it may be that a +progressive policy in time will alter, a sufficient case for State aid +in the matter of old age pensions has been made out, and I believe +that no party is going to oppose the introduction of old age pensions. +But, on the other hand, I foresee great difficulties and great +disputes over the question of the manner in which the money is to be +provided. I know how our Radical friends will wish to provide the +money. They will want to get it, in the first instance, by starving +the Army and the Navy. To that way of providing it I hope the Unionist +Party, however unpopular such a course may be, and however liable to +misrepresentation it may be, will oppose an iron resistance, because +this is an utterly rotten and bad way of financing old age pensions, +or anything else. But that method alone, however far it is carried, +will not provide money enough, and there will be an attempt to raise +the rest by taxes levied exclusively on the rich. I am against that +also, because it is thoroughly wrong in principle. I am not against +making the rich pay, to the full extent of their capacity, for great +national purposes, even for national purposes in which they have no +direct interest. But I am not prepared to see them made to pay +exclusively. Let all pay according to their means. It is a thoroughly +vicious idea that money should be taken out of the pocket of one man, +however rich, in order to be put into the pocket of another, however +poor. That is a bad, anti-national principle, and I hope the +Unionist Party will take a firm stand against it. And this is an +additional reason why we should raise whatever money may be necessary +by duties upon foreign imports, because in that way all will +contribute. No doubt the rich will contribute the bulk of the money +through the duties on imported luxuries, but there will be some +contribution, as there ought to be some contribution, from every class +of the people. + +And now, in conclusion, one word about purely practical +considerations. We Unionists, if you will allow me to call myself a +Unionist--at any rate I have explained quite frankly what I mean by +the term--are not a class party, but a national party. That being so, +it is surely of the utmost importance that men of all classes should +participate in every branch and every grade of the work of the +Unionist Party. Why should we not have Unionist Labour members as well +as Radical Labour members? I think that the working classes of this +country are misrepresented in the eyes of the public of this country +and of the world, as long as they appear to have no leaders in +Parliament except the men who concoct and pass those machine-made +resolutions with which we are so familiar in the reports of Trade +Union Congresses. I am not speaking now about their resolutions on +trade questions, which they thoroughly understand, but about +resolutions on such subjects as foreign politics, the Army and Navy, +and Colonial and Imperial questions, resolutions which are always +upon the same monotonous lines. I do not believe that the working +classes are the unpatriotic, anti-national, down-with-the-army, +up-with-the-foreigner, take-it-lying-down class of Little Englanders +that they are constantly represented to be. I do not believe it for a +moment. I have heard Imperial questions discussed by working men in +excellent speeches, not only eloquent speeches, but speeches showing a +broad grasp and a truly Imperial spirit, and I should like speeches of +that kind to be heard in the House of Commons as an antidote to the +sort of preaching which we get from the present Labour members. And +what I say about the higher posts in the Unionist Army applies equally +to all other ranks. No Unionist member or Unionist candidate is really +well served unless he has a number of men of the working class on what +I may call his political staff. And I say this not merely for +electioneering reasons. This is just one of the cases in which +considerations of party interest coincide--I wish they always or often +did--with considerations of a higher character. There is nothing more +calculated to remove class prejudice and antagonism than the +co-operation of men of different classes on the same body for the same +public end. And there is this about the aims of Unionism, that they +are best calculated to teach the value of such co-operation; to bring +home to men of all classes their essential inter-dependence on one +another, as well as to bring home to each individual the pettiness and +meanness of personal vanity and ambition in the presence of anything +so great, so stately, as the common heritage and traditions of the +British race. + + + + +SWEATED INDUSTRIES + +Oxford, December 5, 1907 + + +This exhibition is one of a series which are being held in different +parts of the country with the object of directing attention, or rather +of keeping it directed, to the conditions under which a number of +articles, many of them articles of primary necessity, are at present +being produced, and with the object also of improving the lot of the +people engaged in the production of those articles. Now this matter is +one of great national importance, because the sweated workers are +numbered by hundreds of thousands, and because their poverty and the +resulting evils affect many beside themselves, and exercise a +depressing influence on large classes of the community. What do we +mean by sweating? I will give you a definition laid down by a +Parliamentary Committee, which made a most exhaustive inquiry into +the subject: "Unduly low rates of wages, excessive hours of work, and +insanitary condition of the workplaces." You may say that this is a +state of things against which our instincts of humanity and charity +revolt. And that is perfectly true, but I do not propose to approach +the question from that point of view to-day. I want to approach it +from the economic and political standpoint. But when I say political I +do not mean it in any party sense. This is not a party question; may +it never become one. The organisers of this exhibition have done what +lay in their power to prevent the blighting and corrosive influence of +party from being extended to it. The fact that the position which I +occupy at this moment will be occupied to-morrow by the wife of a +distinguished member of the present Government (Mrs. Herbert +Gladstone), and on Saturday by a leading member of the Labour Party +(Mr. G.N. Barnes, M.P.), shows that this is a cause in which people of +all parties can co-operate. The more we deal with sweating on these +lines, the more we deal with it on its merits or demerits without +ulterior motive, the more likely we shall be to make a beginning in +the removal of those evils against which our crusade is directed. + +My view is, that the sweating system impoverishes and weakens the +whole community, because it saps the stamina and diminishes the +productive power of thousands of workers, and these in their turn drag +others down with them. "Unduly low rates of wages, excessive hours of +labour, insanitary condition of workplaces"--what does all that mean? +It means an industry essentially rotten and unsound. To say that the +labourer is worthy of his hire is not only the expression of a natural +instinct of justice, but it embodies an economic truth. One does not +need to be a Socialist, not, at least, a Socialist in the sense in +which the word is ordinarily used, as designating a man who desires +that all instruments of production should become common property--one +does not need to be a Socialist in that sense in order to realise that +an industry, which does not provide those engaged in it with +sufficient to keep them in health is essentially unsound. Used-up +capital must be replaced, and of all forms of capital the most +fundamental and indispensable is the human energy necessarily consumed +in the work of production. A sweated industry does not provide for the +replacing of that kind of capital. It squanders its human material. It +consumes more energy in the work it exacts than the remuneration it +gives is capable of replacing. The workers in sweated industries are +not able to live on their wages. As it is, they live miserably, grow +old too soon, and bring up sickly children. But they would not live at +all, were it not for the fact that their inadequate wages are +supplemented, directly, in many cases, by out-relief, and indirectly +by numerous forms of charity. In one way or another the community has +to make good the inefficiency that sweating produces. In one way or +another the community ultimately pays, and it is my firm belief that +it pays far more in the long run under the present system than if all +workers were self-supporting. If a true account could be kept, it +would be found that anything which the community gains by the +cheapness of articles produced under the sweating system is more than +outweighed by the indirect loss involved in the inevitable subsidising +of a sweated industry. That would be found to be the result, even if +no account were taken of the greatest loss of all, the loss arising +from the inefficiency of the sweated workers and of their children, +for sweating is calculated to perpetuate inefficiency and +degeneration. + +The question is: Can anything be done? Of the three related +evils--unduly low rates of wages, excessive hours of labour, and +insanitary condition of work-places--it is evident that the first +applies equally to sweated workers in factories and at home, but the +two others are to some extent guarded against, in factories, by +existing legislation. This is the reason why some people would like to +see all work done for wages transferred to factories. Broadly +speaking, I sympathise with that view. But if it were universally +carried out at the present moment, it would inflict an enormous amount +of suffering and injustice on those who add to their incomes by home +work. Hence the problem is twofold. First, can we extend to workers in +their own homes that degree or protection in respect of hours and +sanitary conditions which the law already gives to workers in +factories? And secondly, can we do anything to obtain for sweated +workers, whether in homes or factories, rates of remuneration less +palpably inadequate? Now it certainly seems impossible to limit the +hours of workers, especially adult workers, in their own homes. More +can be done to ensure sanitary conditions of work. Much has been done +already, so far as the structural condition of dwellings is concerned. +But I am afraid that the measures necessary to introduce what may be +called the factory standard of sanitariness into every room, where +work is being done for wages, would involve an amount of inspection +and interference with the domestic lives of hundreds of thousands of +people which might create such unpopularity as to defeat its own +object. I do not say that nothing more should be attempted in that +direction, quite the reverse; but I say that nothing which can be +attempted in that direction really goes to the root of the evil, which +is the insufficiency of the wage. How can you possibly make it healthy +for a woman, living in a single room, perhaps with children, but even +without, to work twelve or fourteen hours a day for seven or eight +shillings a week, and at the same time to do her own cooking, washing, +and so on. How much food is she likely to have? How much time will be +hers to keep the place clean and tidy? An increase of wages would not +make sanitary regulations unnecessary, but it would make their +observance more possible. + +An increase of wages then is the primary condition of any real +improvement in the lives of the sweated workers. So the point is this. +Can we do anything by law to screw up the remuneration of the +worst-paid workers to the minimum necessary for tolerable human +existence? I know that many people think it impossible, but my answer +is that the fixing of a limit below which wages shall not fall is +already not the exception but the rule in this country. That may seem +a rather startling statement, but I believe I can prove it. Take the +case of the State, the greatest of all employers. The State does not +allow the rates of pay even of its humblest employes to be decided by +the scramble for employment. The State cannot afford, nor can any +great municipality afford, to pay wages on which it is obviously +impossible to live. There would be an immediate outcry. Here then you +have a case of vast extent in which a downward limit of wages is fixed +by public opinion. Take, again, any of the great staple industries of +the country, the cotton industry, the iron and steel industry, and +many others. In the case of these industries rates of remuneration are +fixed in innumerable instances by agreement between the whole body of +employers in a particular trade and district on the one hand and the +whole body of employes on the other. The result is to exclude +unregulated competition and to secure the same wages for the same +work. No doubt there is an element--and this is a point of great +importance--which enters into the determination of wages in these +organised trades, but which does not enter in the same degree into the +determination of the salaries paid by the State. That element is the +consideration of what the employers can afford to pay. This question +is constantly being threshed out between them and the workpeople, +with resulting agreements. The number of such agreements is very +large, and the provisions contained in them often regulate the rate of +remuneration for various classes of workers with the greatest +minuteness. But the great object, and the principal effect of all +these agreements, is this: it is to ensure uniformity of remuneration, +the same wage for the same work, and to protect the most necessitous +and most helpless workers from being forced to take less than the +employers can afford to pay. Broadly speaking, the rate of pay, in +these highly organised industries, is determined by the value of the +work and not by the need of the worker. That makes an enormous +difference. But in sweated industries this is not the case. Sweated +industries are the unorganised industries, those in which there is no +possibility of organisation among the workers. Here the individual +worker, without resources and without backing, is left, in the +struggle of unregulated competition, to take whatever he can get, +regardless of what others may be getting for the same work and-of the +value of the work itself. Hence the extraordinary inequality of +payment for the same kind of work and the generally low average of +payment which are the distinguishing features of all sweated +industries. + +Now, if you have followed this rather dry argument, I shall probably +have your concurrence when I say, that the proposal that the State +should intervene to secure, not an all-round minimum wage, but the +same wages for the same work, and nothing less than the standard rate +of his particular work for every worker, is not a proposition that the +State should do something new, or exceptional, or impracticable. It is +a proposal that the State should do for the weakest and most helpless +trades what the strongly-organised trades already do for themselves. I +cannot see that there is anything unreasonable, much less +revolutionary or subversive, in that suggestion. + +This proposal has taken practical form in a Bill presented to the +House of Commons last session. Whether the measure reached its second +reading or not I do not know. It was a Bill for the establishment of +Wages Boards in certain industries employing great numbers of +workpeople, such as tailoring, shirtmaking, and so on. The industries +selected were those in which the employes, though numerous, are +hopelessly disorganised and unable to make a bargain for themselves. +And the Bill provided that where any six persons, whether masters or +employes, applied to the Home Secretary for the establishment of a +Wages Board, such a Board should be created in the particular industry +and district concerned; that it should consist of representatives of +employers and employed in equal proportions, with an impartial +chairman; and that it should have the widest possible discretion to +fix rates of remuneration. If Wages Boards were established, as the +Bill proposed, they would simply do for sweated trades what is already +constantly being done in organised trades, with no doubt one important +difference, that the decisions of these Boards would be enforceable by +law. Now that no doubt may seem to many of you a drastic proposition. +But I would strongly recommend any one interested in the subject to +study a recently-published Blue-book, one of the most interesting I +have ever read, which contains the evidence given before the House of +Commons Committee on Home Work. That Blue-book throws floods of light +on the conditions which have led to the proposal of Wages Boards, on +the way in which these Boards would be likely to work, and on the +results of the operation of such Boards in the Colony of Victoria, +where they have existed for more than ten years, and now apply to more +than forty industries. The perusal of that evidence would, I feel +sure, remove some at least of the most obvious objections to this +proposed remedy for sweating. + +Many people look askance, and justly look askance, at the interference +of the State in anything so complicated and technical as a schedule of +wages for any particular industry. But the point to bear in mind is +this, that the wages, which under this proposal would be enforceable +by law, would be wages that had been fixed for a particular industry +in a particular district by persons intimately cognisant with all the +circumstances, and, more than that, by persons having the deepest +common interest to avoid anything which could injure the industry. The +rates of remuneration so arrived at would be based on the +consideration of what the employers could afford to pay and yet retain +such a reasonable rate of profit as would lead to their remaining in +the industry. Such a regulation of wages would be as great a +protection to the best employers against the cut-throat competition of +unscrupulous rivals as it would be to the workers against being +compelled to sell their labour for less than its value. There is +plenty of evidence that the regulation of wages would be welcomed by +many employers. And as for the fear sometimes expressed, that it would +injure the weakest and least efficient workers, because, with +increased wages, it would no longer be profitable to employ them, it +must be borne in mind that people of that class are mainly home +workers, and as remuneration for home work must be based on the piece, +there would be no reason why they should not continue to be employed. +No doubt they would not benefit as much as more efficient workers from +increased rates, but _pro tanto_ they would still benefit, and that is +a consideration of great importance. But even if this were not the +case, I would still contend, that it was unjustifiable to allow +thousands of people to remain in a preventable state of misery and +degradation all their lives, merely in order to keep a tenth of their +number out of the workhouse a few years longer. + +I have only one more word to say. I come back to the supreme interest +of the community in the efficiency and welfare of all its members, to +say nothing of the removal of the stain upon its honour and conscience +which continued tolerance of this evil involves. That to my mind is +the greatest consideration of all. That is the true reason, as it +would be the sufficient justification, for the intervention of the +State. And, or my own part, I feel no doubt that, whether by the +adoption of such a measure as we have been considering, or by some +other enactment, steps will before long be taken for the removal of +this national disgrace. + + + + Printed by BALLANTYNE & CO. LIMITED + Tavistock Street, London + + + + * * * * * + +The Fundamental Fallacies of Free Trade + +By L.S. 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