Constructive Imperialism Part 1

Constructive Imperialism.

by Viscount Milner.

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 G.o.d" and "duty to your neighbour." These objects are the strength of the Empire, and the health, the well-being, the contentedness of the ma.s.s 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 circ.u.mstances, 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 superst.i.tious 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 wors.h.i.+p 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 const.i.tutes 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 quant.i.ties 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 quant.i.ty 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 circ.u.mstances. 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 emanc.i.p.ation, 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 a.s.sured 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 n.o.body 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 cla.s.ses 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 compet.i.tion 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 ma.s.s 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 trespa.s.s 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 cla.s.ses 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 cla.s.ses would be the first to feel. Excise duties, which are mainly paid by those cla.s.ses, 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 ma.s.s of the people. It is thus no question of s.h.i.+fting existing burdens, it is a question of distributing the burden of new expenditure of which the ma.s.s 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 cla.s.ses--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 ma.s.s of the people would be better off under the latter system. Even a.s.suming--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 cla.s.ses 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 cla.s.ses 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-cla.s.s 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 ma.s.s of the working cla.s.ses 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 cla.s.ses, 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 const.i.tuted 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 embarra.s.sments by which a party leader is beset, and unhampered by the caution which a party leader is bound to exercise. He commits n.o.body 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 leaders.h.i.+p 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 Premiers.h.i.+ps 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 pa.s.sing 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 leaders.h.i.+p, 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 const.i.tution in favour of a system of quinquennial dictators.h.i.+ps. 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 const.i.tution 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 const.i.tutional government can possibly defend. To resist such a proposal as that is not fighting for a party; it is not fighting for a cla.s.s. 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 att.i.tude 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 subst.i.tute public for private owners.h.i.+p, 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 const.i.tution 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 cla.s.s hatred or trying to rob Peter in order to pay Paul. It is not true that you cannot benefit one cla.s.s without taking from another cla.s.s--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 cla.s.ses 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 cla.s.ses of the community had cause to regard that progress as indissolubly a.s.sociated 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 cla.s.ses 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 ma.s.s 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 rea.s.sured 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 cla.s.s, which is alleged to be so out of sympathy with the ma.s.s 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 cla.s.s. 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 cla.s.s, 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.