In this connexion it may be added that on June 11, in reply to an inquiry from Mr. King (L., Somerset, N.) as to the existence of an Anglo-Russian naval agreement, or negotiations to that end, the Foreign Secretary had distinctly replied in the negative, saying that the Prime Minister's answer of the year before (A. R., 1913, p. 70) still held good, and that, if any agreement, were concluded modifying it, such an agreement, in his opinion, should be laid before Parliament.
The dignified tributes to the murdered Archduke were followed in the Commons, by a storm. In Committee of Supply on the Treasury Estimates, Mr. J. F. Hope (U.) attempted to revive the Marconi scandal by moving to reduce the Premier's salary as a protest against a recent refusal by him to warn Civil servants against speculation in stocks. Despite repeated calls to order, Mr. Hope managed to mention Lord Murray, the Chancellor of the Exchequer, and Sir Rufus Isaacs; Major Archer-Shee (U.) added fuel to the flame; the Chancellor of the Exchequer was not allowed by the Chairman to reply by citing "more pertinent illustrations"; the Prime Minister treated the suggestion that a warning was needful as a reflection on the honour of the Civil Service, and ultimately the reduction was negatived by 274 to 122.
The rising excitement of the Opposition was partly accounted for by the increasing difficulties of the Government. The Finance Bill was taken in Committee on July 1 and 2; but the Chancellor of the Exchequer had already found that the course of his plans must be cleared and their burden lightened by dropping its second part and putting the additional grants to local authorities into the Revenue Bill. This was announced in the House on June 29. On July 1 the President of the Local Government Board moved an instruction empowering the Committee to provide for amending the law relating to income tax (including supertax), death duties, and the National Debt. This was intended mainly to enable members to discuss grievances relating to the taxes in question, but Mr. Cassel (U.) moved to extend it so as to empower the Committee to deal with grievances affecting general taxation. The Chancellor of the Exchequer, in a bitter speech, opposed this as an obstructive manœuvre; Mr. Austen Chamberlain, who described him as "a bad loser," said that the amendment was designed to revert to the old procedure of discussing grievances before imposing fresh taxation—a procedure imperilled by the practice adopted in 1913 of dividing the Finance Bill; for the second part of that Bill might be dropped, or delayed too late for adequate discussion. Eventually, however, the amendment was rejected by 271 to 185; another amendment moved by Sir F. Banbury, excluding the National Debt from the purview of the Committee—in order, he said, to prevent the reduction of the Sinking Fund—was defeated also by 276 to 182. In Committee, amendments (1) to graduate the tea duty ad valorem, and (2) to give a preference of 1d. per lb. to tea grown in the British Empire, were rejected, after discussion, by 241 to 130 and 258 to 165 respectively. On the first, Mr. Snowden (Lab., Blackburn), speaking for the Labour party, said that ad valorem duties on tea were barred by insuperable difficulties, and that, while his party disapproved of indirect taxation, they would support the Bill as intended, broadly, to increase direct taxation. On the second, the Attorney-General pointed out that 270,000,000 lb. of tea came from British India and Ceylon, 11,000,000 lb. from China and 31,000,000 lb. from other countries.
Next day (July 2) the Chancellor of the Exchequer moved an amendment reducing the income tax from 1s. 4d. to 1s. 3d. (p. 130). He explained that the alternative lay between taking off this additional penny and reducing the older taxation. But the amount saved by postponing the grants to local, authorities would not suffice to relieve the death duties, or to take off the sugar duty, and the income taxpayer, especially in the lower rates of income, deserved relief more than the payer of supertax. The inconvenience of the change to bankers had been greatly exaggerated, and, as soon as they had been officially told to deduct 1s. 4d. on dividends till the House otherwise ordered, the position became simple. The reduction was passed after a long debate by 251 to 56. The Committee was resumed on July 13 after the introduction of the guillotine (post, p. 146).
Meanwhile the debate on the second reading of the Amending Bill had begun in the House of Lords on July 1. After a preliminary objection by Lord Willoughby de Broke, that it proposed to amend a non-existent Act, had been overruled by the Lord Chancellor, Lord Morley of Blackburn moved the second reading. The Bill, he said, afforded a better solution than Earl Grey's proposed Convention; had it not been introduced, Home Rule would have been wrecked by the sectarian prejudice which hampered the Union at its outset. The Government believed there could be no better opportunity for discovering the common ground existing in Parliament for attaining an effective peace in Ireland. The situation in Ireland had a historic base for which neither party could escape responsibility. As to exclusion, no part of Ulster was homogeneous. The National Volunteers had dispelled the illusion that the masses in the South and West of Ireland had lost their care for Home Rule. The danger was that the constitutional agitation for self-government might give place to the older methods of violence and disloyalty. He hoped the House would have no hand in promoting the change.
The Marquess of Lansdowne described the Bill as a "freak Bill," fit for a museum, and wholly inadequate to avert a calamity. Exclusion, on its merits, had probably no friends at all; and the form of it in the Bill was futile and vicious. It had been accepted by the Nationalists only because they thought Ulster would refuse it; so that the original proposal was insincere. The plan of voting by counties was most unfortunate, for in some of the counties Roman Catholics and Protestants were almost equal, and the voting would set up a saturnalia of intimidation and corruption. The time limit was vexatious and superfluous. After criticising in detail the system of government for the excluded areas, he said that the Opposition would not resist the second reading, but would move amendments in regard to the area excluded, the duration of the exclusion, and the conditions of government in the excluded area. But any revision of the Government of Ireland Bill was hopeless, and they would not deal with minute points of the Amending Bill, but leave the Government to make it "watertight." They would be misrepresented and misunderstood, but failure of this last effort might mean an irremediable misfortune to the country. When Æneas descended to Hades, the final and most dread of all the spectres he met was War. But they would support the second reading as that of a makeshift emergency measure meant solely to gain time. The meshes of the Parliament Act left them no other way, but, were a better way offered, they would be ready to explore it. They fully recognised that there was a great Irish problem, requiring to be handled with courage and sympathy, and that they could not adopt a policy of mere negation or destructive criticism.
Viscount Bryce, as an ex-Chief Secretary for Ireland, pointed out that the Lord-Lieutenant would have to act on the advice of the British, not the Irish Minister, and thought future Irish parties would be formed on different lines. Personally he would have preferred to give certain northern areas local autonomy, with an appeal to England against any measure which they thought objectionable. He defended the provisions as to exclusion, while admitting the great difficulty as to areas.
The Archbishop of York said that a general election would now give no chance of a settlement; and he suggested a Statutory Commission in two sections, to consider devolution from the point of view respectively of Ireland and of the United Kingdom. They had suffered all along from shortness of view; let Parliament stand aside and allow the Irish people to come to an agreement. The chances, however, were not propitious.
After other speeches, Lord Willoughby de Broke moved the rejection of the Bill. The Home Rule Bill might never become an Act. The Irish policy of the Government had broken down, and with it the Parliament Act, and they were asking the despised House of Lords to help them out. Nobody wanted the exclusion of Ulster, and to vote for it was to support a Parliament in Dublin. He spoke strongly for the maintenance of the Union. Lord Macdonnell urged that the problem might be solved by proportional representation and Home Rule within Home Rule, rather than by exclusion. Of later speakers, the Earl of Mayo, opposing the Bill, did not believe in the danger of civil war.
The debate was resumed next day (July 2) by the Marquess of Londonderry, who asked whether the Prime Minister would tell Mr. Redmond that the Government would insist on the acceptance of the far-reaching amendments invited by the Marquess of Crewe? If not, the House had better reject the Bill. Lord Wimborne, in a vigorous speech, charged the Unionist party with having exceeded their constitutional rights in their opposition to Home Rule. The Government did not admit any imperfection in their main Home Rule measure, nor their inability to put it into operation. They were not asking for relief; they did not believe that the provisional government that was contemplated was practicable, or that the electors would tolerate it. They proposed temporary exclusion only to enable passions to cool and apprehensions to be allayed. The salvation of Ireland must be won in Ireland, and he hoped all parties would work together for a solution. The Earl of Dunraven said that the only solution was by conference. The essence of the Amending Bill was apparently that Ireland must be governed by Orders in Council. As the provisions of the Bill as to Customs and Excise did not apply to the excluded areas, the confusion would be inextricable and the administration impracticable. Still, he would vote for the second reading in the hope that the Bill might be shaped into something that would avert a catastrophe. Viscount Midleton condemned the provocative character of Lord Wimborne's speech, and said that they must hope that the Bill would avert civil war, but an election must follow, and then both Bills must be revised. He asked that (1) the minority should be assured impartial trials; (2) attention should be given to the land question; (3) the graduation of taxes common to Ireland and Great Britain should not be different in Ireland, and provision should be made against the discriminating taxation of land. Even so, the Opposition would not accept the Bill, but they would pass it from patriotic motives. Lord Islington, a former Colonial Governor, favoured a Commission of Inquiry to devise amendments along with the passing of the two Bills. The Earl of Halsbury felt that the Bill should be read a second time to avoid civil war, though he would have naturally voted for its rejection. Lord Sydenham favoured a Statutory Commission, or some other effort towards settlement by Consent. Lord Courtney of Penwith said that unless the Nationalist and Ulster leaders would consent to a Conference, a Royal Commission would defer the solution under circumstances which gave no prospect of eventual accomplishment. He pleaded for "Home Rule within Home Rule." Among later speakers, the Duke of Abercorn (an Ulster Volunteer) said the whole of Ulster would have to be excluded without a time limit, and the Earl of Crawford, who described the Bill as "vague, nebulous, and amorphous," said that the six years' limit was not a truce, but a provocation, and the whole of Ulster must be excluded. The suggestion of a statutory convention was too vague. The Earl of Denbigh, as a Catholic Unionist, scouted the idea of religious persecution, but opposed Home Rule as weakening Great Britain. He supported the Bill as gaining time.
The debate was resumed and concluded on July 6. Viscount Milner commented on the lukewarmness of the Ministerialists towards the measure, and, while approving of a Conference as an entirely fresh start towards solution, urged the Government to facilitate such a fresh start by a general election or a referendum. The Amending Bill, however, might be useful if it were so entirely remodelled as to reassure the Ulstermen, and nothing would do that but a frank and complete assurance at once that they would never be subjected to the authority of an Irish Parliament and Executive without their own consent. If Ulster remained free to decide, she might conceivably some day join the rest of Ireland, but to conquer her would make a united Ireland impossible, and, were the Army and Navy employed to do it, the British Empire would not long survive the shock. The Amending Bill was a temporary expedient which might tide over an interval of great danger. He feared nothing could be done for the Unionist minority in the South and West of Ireland, though he hoped for some relief to them by proportional representation, and indirectly by inducing the Nationalists to treat them well in order to attract Ulster. He therefore supported the Bill. Earl Roberts said that to use the Army to force the Home Rule Bill on Ulster would mean its utter destruction. He denied absolutely that the Army had conspired with the Unionist party to defeat the Home Rule Bill. The Army had no politics, but this was no mere political crisis, but one which affected the roots of our national existence. Following the example set by Viscount Wolseley in 1893, he had warned the Government, and subsequently the Prime Minister, that any attempt to use the military forces of the nation to coerce Ulster would break and ruin the Army. Discipline, as in the British Army, might override human nature under almost every imaginable circumstance, but there was a stratum in every one which was impervious to it. The solution must be taken in hand at once, and the consequences of delay might be irreparable.
After several Irish Peers had either condemned or very reluctantly accepted the Bill, Earl Curzon of Kedleston summed up against it. After dwelling on the paradoxical character of the situation, he declared that the debate had shown (1) that the Bill was forlorn and friendless, and they were really discussing another and an undefined Bill; (2) that exclusion was thoroughly unpopular, and was only considered as a makeshift; but if it were to come, "better a clean cut than a cut with ragged edges and festering lips." He looked forward to a reunited Ireland, managing some portion of her local affairs, but subject to the Crown; but that could only be accomplished by Irishmen themselves; (3) the debate had shown that no ultimate settlement could be found but by a Conference. An immediate Conference seemed impracticable and relief had to be provided for the immediate emergency. The Amending Bill, which he called a Peace Preservation Bill, and the Home Rule Bill, would prove unworkable, and a Conference would have to come. Meanwhile, did Ministers still propose to adhere to the impossible time-limit and the even more impossible scheme of voting by counties?
The Marquess of Crewe, summing up for Ministers, replied to a number of questions of detail raised in the debate. Bills not yet law had been amended or repealed by other Bills in 1851 and 1907. As to judicial proceedings, the parties to them in the excluded area were safeguarded at all stages. For the excluded area an independent Land Commission must be established. The question raised by Lord Midleton as to income tax and supertax had no bearing on the exclusion of Ulster, but the Government did not apprehend oppressive taxation by the Irish Parliament. Customs and Excise were not mentioned because it was felt that no splitting up of Ireland could be permanent. All serious amendments would be considered, but what was called "looking facts in the face" ignored the existence of Nationalist Ireland. Were Ulster totally excluded, would the Opposition guarantee Ireland and Great Britain against civil conflict? A Conference would be impossible if it pre-supposed the scrapping of Liberal policy, but otherwise, if it took place between leading Irishmen and were backed by strong public opinion, it would be the best augury for some permanent arrangement.
The second reading was passed by 273 to 10.
The resumption of this debate had been preceded by tributes from the leaders on both sides to the memory of the most conspicuous figure in the Unionist party for the twenty years preceding 1906. Mr. Joseph Chamberlain, disabled in that year by paralysis, had since then made but few and brief public appearances, and on July 2 he had passed away painlessly at his home at Highbury, near Birmingham. He was buried on July 6 at the Key Hill Cemetery at Birmingham, after an impressive funeral service at the Church of the Messiah (Unitarian), conducted, at his own desire, by the Rev. Prof. Jacks of Manchester College, Oxford. The church was filled with representatives of the City Council and of local institutions and political associations; vast crowds lined the streets, and messages of sympathy were sent from the King, the King of Spain, the President of the French Chamber, the Dominions, and all parts of the world. Meanwhile a memorial service, held at St. Margaret's, Westminster, was attended by representatives of the King, foreign Powers, and the Dominions, and by many members of the Cabinet and the two Houses. In the House of Lords, three hours later, the Marquess of Crewe spoke of Mr. Chamberlain's greatness alike as a Colonial Secretary, as a debater, and as "the greatest civic figure ever engaged in British politics," as well as of his "serene family life "; the Marquess of Lansdowne bore witness to his merits as a colleague and a leader, and Viscount Milner testified that Mr. Chamberlain was "an incomparable chief." The House of Commons marked the occasion by adjourning for the day, after the Prime Minister and the actual and former leaders of the Opposition had paid their tributes to the memory of a great Parliamentarian and promoter of the Empire. The Prime Minister, analysing Mr. Chamberlain's Parliamentary career and character, said that neutrality was impossible to a man of his temperament and convictions. He was the pioneer of a new generation, and a new type of personality in the House, introducing and perfecting a new style of speaking, and giving the impression of complete and serene command of his material and himself. The Prime Minister further touched on Mr. Chamberlain's genuine sympathy for the victims of the strain of social and industrial life, on the imaginative quality that touched his ideals in the larger issues of national policy, on his unsurpassed confidence and courage, and on his generosity as an antagonist. It was fitting that within those walls, where the echoes of his voice seemed still to linger, they should suspend for a few hours the clash of controversy and join in acknowledging their common debt to his life and example. Mr. Bonar Law expressed the gratitude of the Opposition for Mr. Asquith's tribute. Mr. Chamberlain, he said, was his hero when he entered Parliament, and had continued so, and he described him as a great fighter and a great friend. Two principles were at the basis of his political action—a desire to improve the condition of the people, and an intense, perhaps almost aggressive, national pride. He almost alone had changed the whole spirit of the reciprocal relationship of different parts of the Empire, and had thus laid strong the foundation on which others might build. Mr. Balfour added his tribute, as one of the very few left who had served with Mr. Chamberlain in Cabinets. The future historian, he thought, would think of him mainly as an Imperial statesman. As Colonial Secretary he had done the greatest work that had ever fallen to a statesman in Great Britain. He had recognised that the Dominions must be treated with absolute equality, and that there must be a bracing feeling of common patriotism. He was a great idealist, a great friend, a great orator and a great man.
This commemoration of a great Parliamentarian had secured a day's intermission in party strife, but it broke out afresh on July 7, when the Prime Minister moved that the remaining stages of the Finance Bill should be limited to seven days. He pointed out that ten and a half days had been spent already on various stages of the Budget, and, under the Provisional Collection of Taxes Act, 1913, the Finance Bill must become law on August 4, while standing orders required the Estimates to be disposed of by August 5. Of the sixteen Parliamentary days (omitting Fridays as not full days) available before August 5, six and a half were needed to Supply, and seven given to the Finance Bill would leave two and a half for contingencies. He reviewed the progress made, promising a day and a half for the new clauses, and said that if there were ever a Tariff Reform Budget, there would certainly have to be an allocation of time for it. He would prefer that such allocations should be the duty of an independent tribunal, and hinted that the committee then sitting on procedure might make them so. Mr. Bonar Law (U.) moved an amendment repudiating and condemning, as a dangerous innovation, proposals for the curtailment of discussion on measures tending to impose heavy burdens of new taxation. He pointed out that the main business of the House was finance, and that a guillotine had never before been imposed for the Finance Bill. The Government might suspend the 11 o'clock rule, and use ordinary and kangaroo closure. The Government had taken every precaution to ensure that they would be short of time. The Chancellor of the Exchequer had despised the real work of his office, and had used the Exchequer to help electioneering. Several Liberals defended the proposal as necessary, though Mr. Leif Jones (L., Notts, Rushcliffe) and, later, Mr. D. Mason (L., Coventry) spoke against it. The Chancellor of the Exchequer declared that the experience of the Budget debates in 1909 showed that closure was necessary. Other and more important Budgets, e.g., those of 1842 and 1860, had produced similar attacks on the Chancellor of the Exchequer, and that of 1842 was only discussed for sixteen days. He agreed, however, that better methods of examining the Budget might be found. Mr. Balfour (U.) said that, while it was true that the art of obstruction had been perfected, the difficulty arose mainly from the fact that more members were able and eager to speak than formerly, and that the constituencies watched them more. The Government should have found a remedy long ago. With the guillotine, no Minister was required to explain, or even to understand, his Bill. The amendment was rejected, but only by 269 to 263, many Liberals abstaining, among them the group who had followed Mr. Holt (L.) in objecting to the Budget (p. 128). The majority of 269 contained but 181 Liberals, the rest being Nationalist and Labour members. Various amendments involving an extension of time were defeated that day and the next by majorities varying from 79 to 124, and finally the motion was carried by 265 to 175 (July 9).
The rest of the week in the Commons was devoted to less contentious business. On the Board of Trade Vote (July 9) the grievances alleged by members concerned chiefly the mercantile marine, London traffic, and the absence of official statistics in regard to agricultural wages, which Mr. Peto (U., Devizes) demanded in order to facilitate a correct judgment on the land controversy before the general election. The President of the Board of Trade (Mr. Burns), in reply, promised these statistics by January, which would be quite time enough for the election. For the mercantile marine, he said, existing sight tests must be maintained, for the safety of life at sea. As to health, he had noticed that from 1891 to 1911 the death-rate in that calling fell only from 4.9 to 4.7 per 1000, as compared with falls in the Navy from 4.7 to 2 per 1000, in the Army from 9 to 3.6 per 1,000, and in the civil population of ages corresponding to those in these callings from 8 to 4.7 per 1000. This might be accounted for by the men coming from a poorer class than formerly, or from an inferior class to those represented by the Army, Navy, and industrial population. He had appointed an expert Inquiry Committee. Much had been done, meanwhile, to increase the number of cargo steamers having hospitals. He promised closer inspection, preferring good administration to bad legislation. The pending International Convention on timber deck loads would only be frustrated if, as some members desired, questions as to other deck loads were introduced. With London traffic the concern of the Board of Trade was purely statistical and historical, but, with 600 people killed annually and 20,000 injured, something must be done. He would report the views expressed to the Prime Minister. After further discussion, the Vote was agreed to.
The debate on the Foreign Office Vote (p. 137) was continued next day (July 10), according to promise. A number of questions were raised by various members on both sides; and Mr. Bonar Law introduced a party note by scornfully remarking that the Foreign Secretary had been lectured on the duty of keeping peace throughout the world, when his ability to do so at home was doubtful. Sir E. Grey ignored this taunt, and after commenting on the vast amount expected from the Foreign Office by members, replied specifically on the points raised. He repelled the charge of inaction as to railway concessions in Asia Minor and China; he had much rather that concessions should be given willingly than obtained under pressure. He believed that under the new agreement as to navigation on the Euphrates and Tigris the British position would be better and more secure. He was not in favour of securing the survey of the Muhamrah-Khoramabad railway by force, or of pushing British trade or concessions at excessive cost. As to the oil concession the British position was the same as in regard to trade in Southern Persia. After dealing hopefully with a pending arrangement regarding Chinese railway concessions, with the Portuguese West African labour question, and other matters, and specially acknowledging the release by the Portuguese Government of nearly all its political prisoners after a popular agitation in Great Britain, he mentioned that the Dutch Government had just invited Great Britain to send a representative to an International Committee in June, 1915, to draw up a programme for the Hague Conference. As to expenditure on armaments, direct suggestion of reduction was resented on the Continent, and neither it nor the improvement of the relations of the Great Powers had produced much result. Great Britain was not responsible for the increase, the most notable part of which had been military, not naval. He saw no remedy except the interference of public opinion when things became intolerable. The Government would do its best to encourage reduction, but not by direct suggestion. He looked rather to the promotion of good relations with other Powers. After a speech by Mr. Dillon the Vote was agreed to.
In the intervals between dealing with the Amending Bill the House of Lords disposed (on June 30 and July 7) of the Council of India Bill, a measure attributed (though inaccurately) mainly to Mr. Montagu, late Under-Secretary for India, and carrying out the developments of Liberal policy indicated in 1913 (A.R., 1913, p. 187 seq.). The salient feature was that the Council of the Secretary of State for India, which was now to contain from seven to ten members instead of from ten to fourteen, must always include two natives of India, to be chosen by the Secretary of State from a panel nominated by the Indian elective members of the Viceroy's Council and the Provincial Legislative Councils. Changes were also made in the working rules of the Council, partly to expedite its business, and one, which was severely criticised, provided that it should meet not, as heretofore, weekly, but only when summoned by the Secretary of State. The actual rules of procedure were extremely cumbrous, and it appeared from Ministerial statements made in the debate that it took nearly a month to get the most ordinary piece of business through the Council, and that in fact the Secretary had often, for practical purposes, to come very near evading the law. The Bill had been supported by a deputation from the Indian National Congress, though some organs of native opinion held that the elective provisions did not go far enough. It was strongly opposed both in The Times and by Peers with Indian experience, including Lords Ampthill and Harris; and Earl Curzon of Kedleston moved its rejection, as diminishing that element in the Council that possessed administrative experience, rendering procedure by Committees impossible, and making the Secretary of State into an autocrat. The presence of Indian members he thought entirely desirable, but the methods of selection would bring in platform speakers rather than competent advisers on questions of administration. The opposition to the Bill had gathered force by the second day's debate (July 7) when it was strongly defended by Lord Morley of Blackburn, and Lord Reay, and opposed no less strongly by Lords Ampthill, Harris, and Sydenham, Earl Roberts, and Viscount Midleton, while Lord Faber commended its proposals for simplifying financial business, and other Peers urged the House at least to give it a second reading. Lord Courtney of Penwith had desired to refer it to a Select Committee, but in spite of these arguments, and an able defence by the Marquess of Crewe, it was rejected on second reading by 96 to 38.
Next day (July 8) the Lords proceeded completely to transform the Amending Bill. They struck out, by 158 to 35, the provision that any county in Ulster might vote itself out of the Home Rule Scheme for six years, the Earl of Selborne, who moved this deletion, laying stress on various complications which the provision would set up, and explaining that, as an advocate of the Referendum, he desired that it should not be associated with an experiment that could only end in disaster; and Lord Killanin said that if no time-limit were imposed, Ulster would be free to come in voluntarily. Next, the House rejected, by 196 to 20, Lord Macdonnell's scheme for establishing in Ulster "Home Rule within Home Rule," in the form of local administrative control through an Ulster Council elected by proportional representation. To this Council would be transferred the Departments concerned with education, local government, and agriculture and technical instruction, and possibly portions of others. The expenses incurred by the Ulster Council would be provided by the Irish Parliament, or, in default, deducted from the transferred sum by the Joint Exchequer Board. The Marquess of Crewe said that the proposal would be rejected by the various parties to the controversy; Earl Loreburn, Lord Courtney of Penwith, and, later, Viscount Bryce supported it; the Lord Chancellor, while admitting that the exclusion of Ulster was a most unfortunate solution, said that the Government only proposed it because the Opposition were deaf to all appeals. The latter were forcing the country into proximity to a great danger. They hoped soon to take office, but had no clear idea how they would deal with the situation.' To this Earl Curzon of Kedleston retorted that they at any rate had a consistent policy and would not flinch from the issue. After this division the Marquess of Lansdowne moved an amendment permanently excluding the whole of Ulster from the operation of the Home Rule Bill, advocating this course as the most likely way to avert a conflict, though the Opposition could not guarantee that it would do so. The Archbishop of Canterbury thought that a division based on religious differences was the worst possible, and that only a geographical division was practicable. Lord Macdonnell protested strongly against the exclusion of Cavan, Donegal, and Monaghan from the control of the Irish Parliament, but the amendment was passed by 138 to 39. Among other amendments passed one substituted a Secretary of State for the Lord-Lieutenant as the executive authority in the excluded area. Another reduced the representation of Ireland in the Imperial House of Commons from 42 members to 27. A third, moved by the Earl of Halsbury, continued the existing method of judicial appointments and of appeal, to the House of Lords instead of to the Judicial Committee of the Privy Council as provided in the Bill. This was supported next day by several Unionist Peers, the Earl of Desart urging that under Home Rule one party would be permanently in power, that the Judges would therefore be under special pressure, and that attacks on a Judge would probably have the sympathy of the Irish Parliament. The Marquess of Crewe urged that the amendment would be a slight on the Irish Government; the Marquess of Lansdowne supported it, partly as tending to reassure the Unionists outside Ulster. It was passed by 166 to 42. An amendment by Lord Macdonnell, making the administration of the Land Purchase Acts a reserved service, was next adopted. The Marquess of Lansdowne supported it, but explained that the Opposition had limited themselves to framing amendments to the provisions intended to avert civil strife, and had, therefore, abstained from attempting to protect minorities outside Ulster. The Marquess of Crewe intimated that, if the Bill were altered after discussion between the Houses, the alteration need not be confined to Ulster. Lord Macdonnell then proposed a scheme for proportional representation in the Irish Parliament; but the question, after debate, was deferred to the Report Stage. Some other amendments were negatived; one, moved by the Earl of Kenmare, was passed, keeping the Royal Irish Constabulary under the Imperial Government; and a new clause, moved by the Earl of Selborne, provided that nothing in the Home Rule Bill should prejudicially alter or affect the powers and rights of any person in the excluded area.
Meanwhile the Labour and suffragist disturbances continued to promise fresh complications. The London builders' dispute had resisted all attempts at settlement; and a strike similar to those which had caused the dispute arose at Woolwich Arsenal (July 3), where an engineer in the Carriage Department refused to erect machinery on a concrete base prepared by a non-unionist. At first only the men in certain departments were called out, but by July 6 over 10,000 had ceased work. On July 7, however, the Prime Minister stated in the House that the contract under which the base had been laid ran from 1912 to 1915, that no question as to non-union labour under it had been raised previously, and that the men had left work without notice. A Court of Inquiry, however, was appointed—two representative employers, two trade unionists, and Sir George Askwith as Chairman, and on July 9 the men returned to work.
Though this fresh extension of the Labour unrest was happily checked, the Suffragist militancy which was gradually estranging public sympathy did not abate. On July 3, Ballymenoch House, near Belfast, was burnt, the damage done being estimated at 20,000l.; an attempt was also made to burn Carmichael Church, Lanark, and on July 9 to destroy Robert Burns's birthplace at Alloway. A day earlier Mrs. Pankhurst had recovered sufficiently to visit the militant headquarters, and to submit to rearrest as the prelude of her ninth hunger-and-thirst strike; and two women (whose behaviour in court was disorderly) had been convicted of conspiracy to destroy windows, and sentenced to three months' imprisonment, while a sentence of two months had been passed on the printer of the Suffragette. The King's visit to Scotland had occasioned futile and fatuous attempts to gain the Royal attention by throwing leaflets into the carriage or shouting protests (during his visit to the Clyde) through a megaphone; and on Mrs. Pankhurst's arrest, a bomb was deposited in St. John the Evangelist Church, Westminster (July 12); the depositor, however, was arrested, and no harm was done. Nevertheless there was a strong feeling that the true remedy for the agitation had not been found, and it was intensified by the publication of a letter from the Bishop of London (Times, July 5), in which, however, he disclaimed support of militancy. But two real successes were obtained by the promoters of the "emancipation" of women. On July 9 the Representative Church Council of the Church of England (consisting of the members of the Convocations and the Houses of Laymen of the two Provinces) decided by a large majority of clergy and a small one of laymen to give women votes in the elections of Church Councils and enable them to sit on parochial councils; and on June 17 deputations from societies connected with the protection of women and children obtained from the Home Office a promise of favourable consideration of the appointment, for special duties, of women police.
While all these causes seemed tending to set up a great crisis, the King and Queen, with Princess Mary, had been spending a busy week in Scotland (July 6-13). Making Holyrood Palace their headquarters, they paid a state visit to Glasgow (July 7) where the King laid the foundation-stone of the new Municipal Buildings, opened a new block at the Royal Infirmary, and were received at the University; next day they visited the Fairfield shipbuilding yard at Govan, where His Majesty walked underneath the hull of the super-Dreadnought Valiant, in course of construction, and visited H.M.S, Benbow, completing; the day following they witnessed the stages of manufacture of the 15-inch gun at Parkhead Steel Works, visited Lord Newlands (who marked the occasion by giving 25,000l. to the Western Infirmary) and the Duke of Hamilton; next day they visited Dundee and Perth, and on the Saturday Dunblane Cathedral, Stirling Castle, and the ruined ancient palace of Linlithgow. On the Sunday they attended service at St. Giles's Cathedral, Edinburgh, and on Monday returned to London. Everywhere they were enthusiastically welcomed, and, save for the few futile militant interruptions, the visit was an entire success. The King, as the Spectator remarked, was enabled by these visits to know his own country better than the best informed of his subjects.
However, less pleasant matters were soon to engage His Majesty's attention. The "historic Twelfth" was approaching, in Ulster; the Ulster Unionist Council was to take the opportunity of meeting (July 10); and on the previous day Captain Craig, M.P., made a statement, in the course of which he read the preamble to the Constitution of the Ulster Provisional Government. This document declared that, trusting to Divine aid, the signatories, "the people of the counties and places of Ulster represented in the Ulster Unionist Council," undertook to resist to the utmost the claims of an Irish Nationalist Government to exercise powers over them hitherto exercised by the Crown and the Imperial Parliament, and resolved to ignore the Irish Parliament, and to assume and exercise within the Ulster area, pending the restoration of direct Imperial Government, all powers rendered necessary by the withdrawal of such Government for the maintenance of peace and order and the protection of the rights and liberties of His Majesty's subjects; but such powers were to be exercised in allegiance to the King and in trust for the Constitution, to the intent that the Ulster area should continue an integral portion thereof. The laws in force, other than the Home Rule Act, would be maintained and all judges and others acting under the direct authority of the King protected. After contrasting the aims of the Nationalist and of the Ulster leaders, Captain Craig added that the outlook was as dark as it could be. This view was emphasised by the landing of machine guns for the Ulstermen, and of consignments of arms for both sides, and by the announcement that "rest stations" were being arranged in England for Ulster refugee women and children, at Eaton Hall and elsewhere; while the National Volunteers were stated to number 200,000. On July 10 Sir Edward Carson had an enthusiastic welcome at Belfast, and he and Mr. Long, addressing a meeting of Ulster delegates, left the impression that the moment of supreme crisis was at hand. Possibly through the confidence of the rank and file in their leaders, the celebrations of the Boyne anniversary on Monday, July 13, though more numerously attended than ever, passed off without disturbance. Seventy thousand men marched from Belfast to Drumbeg, where Sir Edward Carson again emphasised Ulster's determination to resist; "Give us a clean cut," he said, "or come and fight us."
Liberal journals stated that Lord Northcliffe's newspapers, in particular The Times and the Daily Mail, were making the most of these demonstrations by means of a host of special correspondents and photographers, and an important Unionist paper, the Birmingham Daily Post, also thought the alarm exaggerated. But the House of Lords increased the impression already produced by its treatment of the Amending Bill. The Report Stage was disposed of on July 13. An amendment was negatived which was proposed by Lord Weardale, modifying the provision for the exclusion of Ulster by enabling a poll to be taken on the question upon a requisition from 10 per cent. of the electors in any four counties; and then Lord Macdonnell renewed in a simplified form his proposal for proportional representation, by moving that each constituency in the Irish Parliament should return not less than three members. He advocated this in the interest of the Unionists outside Ulster. Viscount St. Aldwyn supported this scheme; Viscount Bryce held that it was a corollary to the exclusion of Ulster; but the Marquess of Crewe objected to making the Irish Parliament a corpus vile for experiment, and Viscount Morley of Blackburn doubted if Irish peasants would understand the "single transferable vote." On a division being challenged, the leaders on both sides abstained; and no "Not Contents" appeared. The amendment, therefore, was declared carried.
On the third reading next day, the Marquess of Crewe pointed out that the exclusion of Ulster raised, in a new form, the difficulty of governing Irish Nationalists from Great Britain, which had been somewhat masked by the concessions of certain Unionist Ministers in the past to Irish ideas. He reminded the House that the Irish Councils Bill of 1907 was accepted reluctantly by the Nationalist leaders, but rejected by their followers, and hinted that legislation could not depend solely on the legislators; politics were not a game of chess. The Marquess of Lansdowne, reviewing the Bill as amended, declared that the coercion of Ulster was dead. Lord Joicey, as a Liberal Peer, protested against the refusal of the Government to assist in altering the Bill. But the interest of the debate lay mainly in a new clause moved by the Earl of Dunraven, after the Bill had been read a third time without a division, providing that the Home Rule Act might be suspended by Order in Council until a Commission had reported on the relation of Ireland to other parts of the United Kingdom. He desired, he said, to avoid "the horror of the dismemberment of Ireland," ensure a stable peace, and indicate the line of a future final and satisfactory settlement. Viscount Morley opposed the amendment as against the whole spirit of the Constitution, and treated, the action of the Peers as only an elaborate way of rejecting the Home Rule Bill. The Archbishop of York and Lord Ribblesdale supported the amendment; Earl Beauchamp indicated that, while the Government could not accept a Statutory Commission, they would, if there were any desire for it, agree to a voluntary conference. The Marquess of Lansdowne held it undesirable to put the Constitution in the melting-pot on the chance of getting Ministers out of a purely domestic difficulty in Ireland, and refused to accept the amendment as a substitute for the Unionist demands; were they conceded, an inquiry might be of advantage. The clause was then added to the Bill without a division.
Thus the main changes in the Home Rule scheme effected by the Bill were as follows: Ulster was entirely and permanently excluded from the Home Rule scheme, and was to be administered by a Secretary of State through offices and departments different from those exercising authority under the Home Rule Bill, and set up by Order in Council, subject to the acquiescence of both Houses of the Imperial Parliament. Ulster would continue to send members to the Imperial Parliament, in which Irish representation would be reduced to twenty-seven. Judges would be appointed as under the existing system, and the appeal from Irish courts to the House of Lords would continue. Land purchase would be reserved, so would the Royal Irish Constabulary, and the Lord-Lieutenant would control the Dublin metropolitan police.
The House of Lords next day continued its protest against the Parliament Act by rejecting (July 15) the Plural Voting Bill. The debate was, however, languid. The Marquess of Crewe, in moving the second reading, hoped that the inherent impropriety of plural voting would have in any case led Ministers to introduce the measure; the party advantage it gave was, in fact, only occasional, and unknown before 1884. He repeated the promise (p. 84) of a Redistribution Commission. Lord St. Audries said that such promises were idle; the general election would come as a thief in the night, and would find the Redistribution Bill in bed. In fact, most plural voters had but two votes, one for their residence and one for their place of business or their University, and agriculture, commerce, and industry should be adequately represented. Lord Newton traced indirectly to the Bill the militants' agitation, stimulated by the juggling over the Franchise Bill in 1913, and the Irish crisis, as the general election was being postponed till the plural voter was abolished. Earl Grey held that the Bill aggravated the existing inequality of representation. The Marquess of Lansdowne said that the debate was unreal. The authority of the Government in the country was waning, and they hoped the Bill would save something out of the wreck. The second reading was postponed by 119 to 49.
This division, of course, meant little; and it was clear that the Government and the majority of the Commons would not accept the Lords' transformation of the Amending Bill. But the division on the guillotining of the Finance Act had left the Government weaker, and they had been compelled to strain their supporters' patience by announcing a new session "in the early winter" after a Prorogation in August, to enable the essential provisions of the Revenue Bill to be carried in time for the insertion of the grants to the local authorities in the next Estimates. Before the Prorogation they would take the Amending Bill, the Indian Budget, and the resolutions on the Reform of the House of Lords.
For the moment, they proceeded with the Committee stage of the Finance Bill (July 13, 14, 15, 16), but only a brief notice of a few features of it is possible here. An amendment moved by Mr. Worthington Evans (U., Colchester) to allow a payer of supertax to deduct the duties on mineral rights and undeveloped land from his sources of income, on the ground that he would otherwise be paying part of his tax twice over, was defeated by 257 to 115, the Chancellor of the Exchequer rejecting his arguments; and he was also unsuccessful in his opposition to the provisions regarding income tax in respect of property abroad, which he contended would be ineffective as well as unfair. He outlined, indeed, an ingenious method of evasion, and contended that it was unjust to tax income which never reached Great Britain, but was reinvested abroad, as also income already taxed in the country of its origin. From both sides of the House the unfairness of the provisions was insisted on; and an amendment moved by the Chancellor of the Exchequer, intended to afford some relief to insurance companies and others who had habitually invested abroad the proceeds of their foreign investments, was carried by 280 to 190. Next day (July 14) on the clause altering the estate duties (p. 95) the usual complaints were made of the incidence of the death duties on large estates, especially agricultural estates; and Sir A. Henderson (U., St. George's, Hanover Square) declared that the necessity of selling stock to meet them was one cause of the fall in Stock Exchange securities, which he estimated as aggregating over 1,000,000,000l. since 1909. The critics were reinforced by Mr. Balfour (U.) who contended that the tax came out of capital, and might thus decrease employment suddenly where the estate was that of a great landlord or manufacturer; besides, it was diminishing the national emergency reserve. The Chancellor of the Exchequer replied that the money had to be found, and savings were diminished whether it was raised by death duties or by income tax; if expenditure on defence, education, or public health were inadequate, securities would then depreciate also. The fall in them had been heavier abroad, and also at home before 1905. Some of the burden must come out of capital; Germany got it thus, but from the living. The clause was passed by 301 to 207. On the clause abolishing settlement duty and relief in respect of settled property (p. 95), an attempt was made by Mr. Cassel (U., St. Pancras) to prevent its retrospective application where estate duty had been paid before the passing of the Bill. The Chancellor of the Exchequer, invoking the example of Pitt, contended that each generation had a right to adjust its own taxation. Members on both sides strongly condemned the clause, Mr. Bonar Law citing as a parallel Mr. Larkin's "To hell with contracts" (A.R., 1913, p. 208). The Solicitor-General said that the Government proposed, first, that the full settlement estate duty that had been paid should be repaid; next, that during the whole of the period over which that duty failed to frank the estate interest should be allowed on the amount. He contended that it was a fair equivalent. The amendment was rejected by 297 to 208, and the clause passed by 295 to 204.
The following day (July 15) attempts were vainly made to extend the relief in cases of quick succession to property where it consisted of land or a business, first, by removing this limitation so as to take in personalty, next, by extending the five years' interval allowed between payments of the entire estate duty to fifteen. The former the Chancellor of the Exchequer found too costly; the latter was rejected on a division by 297 to 175. An attempt by Sir F. Banbury (U.) to prevent the reduction of the annual charge for diminution of the National Debt from 24,500,000l. to 23,500,000l. (p. 95) was rejected, after a long discussion, by 281 to 176. The Chancellor of the Exchequer said that, while the greatest previous reduction of the Debt—Mr. Goschen's—had been 39,000,000l. in six years the Liberal Government had effected a reduction of 103,000,000l. The retort was made, of course, that it had also increased expenditure permanently by 40,000,000l. annually, and some of the money, it was contended, was wasted—on the land valuation and payment of members, for instance. Next, the relief to be given to married persons in respect of income tax was challenged as inadequate by Mr. Cassel (U.) and other members. A new clause in the Bill provided that income tax and supertax should be assessed, charged, and recovered on the incomes of husband and wife separately, as if they were not married. This met two grievances—that the husband was called on to pay tax on his wife's income, but could not recover it from her (A.R., 1913, p. 224), and that the wife could not make a return or claim abatement; but it did not meet a third and far more general grievance—that their two incomes were still added together and treated as one, so that they paid more than two persons with equal incomes living together unmarried. The Chancellor of the Exchequer argued against any concession on this head, but agreed that there should be special exemption for married people, and the clause was adopted. Next day, however, attempts were made so to amend it as to modify or relieve this grievance. An amendment providing that the separate incomes of husband and wife should be treated as one for purposes of exemption or abatement only when they together exceeded 500l. was rejected by 267 to 139, partly as involving too great a sacrifice of revenue; another, preventing a husband's goods from being liable for distraint for his wife's income, was also rejected by 271 to 166. A new clause providing that private firms, like companies, should not be taxed on profits made abroad, was criticised as enabling such firms to escape taxation by transferring their business abroad. The Chancellor of the Exchequer admitted this was done already, but not often enough to make it worth while to stop it, and the clause was adopted by 225 to 95. Another amendment, providing for deductions in respect of inherently wasting assets, was rejected by 208 to 113, and, after the rejection of other amendments, the Committee stage was completed under the guillotine.
Next day the usual "Massacre of the Innocents" took place, but subsequent events so increased the numbers that the list need hardly be given here. In the evening the Chancellor of the Exchequer dealt with the situation at the annual Lord Mayor's dinner to bankers and merchants at the Mansion House. A quieter period of trade, he said, was opening; but in twenty years the international commerce of the country had doubled, the clearances of the London banks had trebled; in 1914, 160,000,000l. of new capital had been issued in London, as against 125,000,000l. in 1913. Trade depressions were now shorter, and there were healthy signs. He referred to the great progress set up by British capital, comparing its effect to irrigation in the Sudan; and he mentioned that in fifty years 3,700,000,000l. of British capital had been advanced for development, though in war and war preparations the world's expenditure during the past ten years had been 4,500,000,000l. He looked to finance to arrest this "creeping catastrophe." But peace was needed at home also; there was the industrial crisis, as to which he was hopeful, and the Irish crisis, and the two together would set up the gravest situation Great Britain had had to face for centuries. It was, the duty, therefore, of responsible men of all parties to work for peace.
But the Irish crisis was approaching a climax. The Amending Bill, as transformed by the Lords, was to be taken in the Commons on Monday, July 20; it was certain that it would be accepted neither by the Nationalists nor by Ministers; but a minority in the Cabinet, said to number four out of nineteen, were alleged to favour concessions to Ulster beyond those originally embodied in the Bill. Conferences between the different leaders were held informally, and on July 17 the Cabinet met twice, A great naval display had been arranged at Spithead on the occasion of the test mobilisation; the King was to leave London to review the Fleet at 9.30 A.M. on Saturday, July 18; but he was detained till the afternoon, and various communications passed in the morning between him and the Prime Minister. The two, however, travelled together to Portsmouth, where the most powerful Fleet ever assembled, numbering some 200 vessels in all, was drawn up in eight lines, extending over some twenty-two miles altogether, and manned by some 70,000 officers and men. The forces afloat were supplemented by five squadrons of four seaplanes each, with a squadron of eight aeroplanes, and four airships. The King was able to witness the illumination of the Fleet on Saturday evening; on Sunday he visited some of the ships informally; on Monday the ships moved to sea past the Royal yacht, as did a procession of aircraft, and, after witnessing tactical exercises, the King returned to London late on Monday evening. The display and assemblage proved to have an unforeseen value.
The curtailment of the King's visit was explained by the momentous revelation made by The Times on Monday morning, July 20, that His Majesty had issued invitations for the following day to a Conference on the Ulster question at Buckingham Palace, consisting of two members each from the Government, the Opposition, the Nationalists and the Ulster Covenanters. This step was believed to have been initiated by the King, but taken with the knowledge and consent of the Ministry, though without previous consultation with the leaders of the Nationalists or of either the British or Ulster section of the Opposition. The Prime Minister and the Chancellor of the Exchequer would represent the Ministry; the Marquess of Lansdowne and Mr. Bonar Law the Unionists of Great Britain; Mr. John Redmond and Mr. Dillon the Nationalists; Sir Edward Carson and Captain Craig the Ulstermen. It was rumoured that the Government, though not prepared to accept the transformed Amending Bill, had virtually abandoned the time-limit, and were ready to exclude from the operation of the Home Rule Act not only Armagh, Down, Derry, and Monaghan, but parts of Fermanagh and Tyrone. The dispute now centred, therefore, on the question whether parts of these latter counties should be excluded or the whole.
The Amending Bill was postponed pending the Conferences; and the Prime Minister in announcing the postponement (July 20) repeated the statement of The Times, adding that the Speaker would preside. Mr. Bonar Law announced that the Opposition leaders had "loyally accepted" the King's command; Mr. Redmond, while disclaiming responsibility for the calling of the Conference, said that he had "of course accepted" likewise. Mr. Ginnell (I.N., Westmeath, N.) asked, as an independent Irish Nationalist, what authority the Prime Minister had to advise the King to place himself at the head of a conspiracy to defeat the decision of the House; but Mr. Asquith and the Speaker ignored the question. In the House of Lords, Lord Courtney of Penwith asked for assurances that the Government took the responsibility for the Conference, and that the final decision would rest with Parliament; and the Marquess of Crewe made a satisfactory reply.
The action of The Times was severely criticised, as tending to jeopardise the success of the Conference; but its information, as the Prime Minister assured the House, was not derived from official quarters, and seemed to have been obtained by inference from the movements of Ministers and of the King. The Conference itself was received with misgiving by the Nationalists, the Labour party, and a section of the Liberals, the first named feeling that they could not go much further in concession, the two others suspecting that the King had initiated it, and in so doing had exceeded the limits set by constitutional usage to the powers of the Crown. It had been rumoured that the King had intimated that he would not sign the Home Rule Bill except in conjunction with an Amending Bill; so that the Unionists need only make the Amending Bill impossible to ensure a crisis, ending probably in the dismissal of Ministers and a general election. The Daily News called the Conference "a Royal coup d'état"; the Labour party's views were expressed by Mr. J. H. Thomas (Derby) in his constituency on July 21. He objected to it as a deliberate attempt to defeat the Parliament Act, and also because two rebels had been invited to take part; Labour leaders who had used such language would have been arraigned at the Old Bailey. Liberal feeling was manifested at a meeting of members on that day, summoned in order to express anxiety for the supremacy of Parliament; but a more moderate resolution was passed, declaring that the party was determined to stand by the Nationalists, and that the Government should not appeal to the constituencies before completing the whole of its programme under the Parliament Act.
The misgivings of the Liberals were heightened by the speech with which the King opened the Conference at Buckingham Palace at 11.30 A.M. on Tuesday, July 21. It was as follows:—