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UNEMPLOYMENTToC

Kinnaird Hall, Dundee, October 10, 1908

(From The Times, by permission.)

What is the political situation which unfolds itself to our reflections to-night? I present it to you without misgivings or reserve. For nearly three years a Liberal Administration, more democratic in its character, more widely selected in its personnel, more Radical in the general complexion of its policy, than any that has previously been known to British history, has occupied the place of power. During the whole of that period no single serious administrative mistake, either at home or abroad, has embarrassed or discredited the conduct of public affairs. Three Parliamentary Sessions, fruitful beyond precedent in important legislation, have been surmounted with dignity and dispatch. The authority and influence of Great Britain among foreign Powers have been prudently guarded, and are now appreciably augmented, and that authority and influence have been consistently employed, and will be in the future employed, in soothing international rivalries and suspicion, in asserting a proper respect for public law, in preserving a just and harmonious balance amongst great Powers, and in forwarding as opportunities have served, whether in the Near East or in the Congo, causes of a generous and disinterested humanitarianism.

The British Empire itself has enjoyed under Liberal rule a period of prosperous tranquillity, favourable both to development and consolidation; and it is no exaggeration to say that it was never more strong or more peacefully united than at the present moment. The confidence which the whole country, irrespective of party, feels in Sir Edward Grey in the present European crisis, is the measure of our success in foreign affairs. The gathering of the Convention of a United South Africa is in itself a vindication of colonial policy. Each year for which we have been responsible has been marked by some great and beneficent event which has commanded the acquiescence—or at least silenced the dissent—of many of our professed opponents. In 1906 the charter of trade unions; in 1907, the conciliation and settlement of South Africa; in 1908, the establishment of old-age pensions. These are large matters; they will take their place in the history book; and on them alone, if necessary, I would confidently base the claims of his Majesty's Government to respect, if not to renown, in future times.

But although we do not meet to-night in any atmosphere of crisis, nor in any expectation of a general election, nevertheless I feel, and I dare say you feel too, that we have reached a climacteric in the life of this Parliament. The next six months will probably determine the whole remaining fortunes of the Government, and decide whether a gradual but progressive decline will slowly carry the Administration in the natural course to the grave where so many others are peacefully slumbering, or whether, deriving fresh vigour from its exertions, it will march forward conquering and to conquer.

I said a few minutes ago that this session had been marked by a measure of great and cardinal importance. Surely no one will deny the magnitude and significance of the step which has been taken in the establishment of a system of old-age pensions. It marks the assertion in our social system of an entirely new principle in regard to poverty, and that principle, once asserted, cannot possibly be confined within its existing limits. Old-age pensions will carry us all a very long way. They have opened a door which will not soon or easily be closed. The members of both Houses of Parliament have been led to the verge of the cruel abyss of poverty, and have been in solemn session assembled to contemplate its depths and its gloom. All alike have come to gaze; none have remained unmoved. There are some distinguished and eminent men, men whose power and experience I cannot impugn, who have started back appalled by what they have seen, and whose only idea is to slam the door on the grim and painful prospect which has been revealed to their eyes.

But that is not the only spirit which has been awakened in our country; there are others, not less powerful, and a greater number, who will never allow that door to be closed; they have got their feet in it, they are resolved that it shall be kept open. Nay, more, they are prepared to descend into the abyss, and grapple with its evils—as sometimes you see after an explosion at a coal mine a rescue party advancing undaunted into the smoke and steam. Now there is the issue on which the future of this Parliament hangs—"Forward or back?" Voices sound loud and conflicting in our ears; the issue, the sharpest and simplest, the most tremendous that can be put to a generation of men—"Forward or backward?"—is the issue which confronts us at the present time, and on it the future of the Government is staked. There are faint-hearted friends behind; there are loud-voiced foes in front. The brewer's dray has been pulled across the road, and behind it are embattled a formidable confederation of vested interests. A mountainous obstacle of indifference and apathy bars our advance. What is your counsel? Forward or Back?

Let it be remembered that aged poverty is not the only evil with which, so far as our means allow, we have to grapple. What is the problem of the hour? It can be comprised in one word—Unemployment. After two years of unexampled trade expansion, we have entered upon a period of decline. We are not alone in this. A reaction from overtrading is general all over the world. Both Germany and the United States are suffering from a similar commercial contraction, and in both countries, in spite of their high and elaborate protective tariffs, a trade set-back has been accompanied by severe industrial dislocation and unemployment. In the United States of America, particularly, I am informed that unemployment has recently been more general than in this country. Indeed the financial collapse in the United States last autumn has been the most clearly marked of all the causes to which the present trade depression may be assigned.

It is not yet possible to say that the end of that period of depression is in sight; but there are some significant indications which I think justify the hope that it will be less severe and less prolonged than has been known in other trade cycles, or than some people were at first inclined to believe. But the problem of unemployment is not confined to periods of trade depression, and will not be solved by trade revival; and it is to that problem in its larger and more permanent aspects that I desire to draw your attention for a short time to-night.

There is no evidence that the population of Great Britain has increased beyond the means of subsistence. On the contrary, our wealth is increasing faster than our numbers. Production is active; industry grows, and grows with astonishing vigour and rapidity. Enterprise in this country requires no artificial stimulant; if it errs at all, it is from time to time upon the side of overtrading and overproduction. There is no ground for believing that this country is not capable of supporting an increasing population in a condition of expanding prosperity.

It must, however, be remembered that the British people are more than any other people in the world a manufacturing people. It is certain that our population could never have attained its present vast numbers, nor our country have achieved its position in the world, without an altogether unusual reliance upon manufacture as opposed to simple agriculture. The ordinary changes and transitions inseparable from the active life and growth of modern industry, therefore, operate here with greater relative intensity than in other countries. An industrial disturbance is more serious in Great Britain than in other countries, for it affects a far larger proportion of the people, and in their distresses the urban democracy are not sustained by the same solid backing of country-folk and peasant cultivators that we see in other lands. It has, therefore, become a paramount necessity for us to make scientific provision against the fluctuations and set-backs which are inevitable in world commerce and in national industry.

We have lately seen how the backwash of an American monetary disturbance or a crisis in the Near East or in the Far East, or some other cause influencing world trade, and as independent of our control as are the phases of the moon, may easily have the effect of letting loose upon thousands of humble families and households all the horrors of a state of siege or a warlike blockade. Then there are strikes and trade disputes of all kinds which affect vast numbers of people altogether unconcerned in the quarrel. Now, I am not going to-night to proclaim the principle of the "right to work." There is not much use in proclaiming a right apart from its enforcement; and when it is enforced there is no need to proclaim it. But what I am here to assert, and to assert most emphatically, is the responsibility of Government towards honest and law-abiding citizens; and I am surprised that that responsibility should ever be challenged or denied.

When there is a famine in India, when owing to some unusual course of nature the sky refuses its rains and the earth its fruits, relief works are provided in the provinces affected, trains of provisions are poured in from all parts of that great Empire, aid and assistance are given to the population involved, not merely to enable them to survive the period of famine, but to resume their occupations at its close. An industrial disturbance in the manufacturing districts and the great cities of this country presents itself to the ordinary artisan in exactly the same way as the failure of crops in a large province in India presents itself to the Hindu cultivator. The means by which he lives are suddenly removed, and ruin in a form more or less swift and terrible stares him instantly in the face. That is a contingency which seems to fall within the most primary and fundamental obligations of any organisation of Government. I do not know whether in all countries or in all ages that responsibility could be maintained, but I do say that here and now in this wealthy country and in this scientific age it does in my opinion exist, is not discharged, ought to be discharged, and will have to be discharged.

The social machinery at the basis of our industrial life is deficient, ill-organised, and incomplete. While large numbers of persons enjoy great wealth, while the mass of the artisan classes are abreast of and in advance of their fellows in other lands, there is a minority, considerable in numbers, whose condition is a disgrace to a scientific and professedly Christian civilisation, and constitutes a grave and increasing peril to the State. Yes, in this famous land of ours, so often envied by foreigners, where the grace and ease of life have been carried to such perfection, where there is so little class hatred and jealousy, where there is such a wide store of political experience and knowledge, where there are such enormous moral forces available, so much wisdom, so much virtue, so much power, we have not yet succeeded in providing that necessary apparatus of insurance and security, without which our industrial system is not merely incomplete, but actually inhumane.

I said that disturbances of our industrial system are often started from outside this country by causes utterly beyond our control. When there is an epidemic of cholera, or typhoid, or diphtheria, a healthy person runs less risk than one whose constitution is prepared to receive the microbes of disease, and even if himself struck down, he stands a far greater chance of making a speedy recovery. The social and industrial conditions in Great Britain at this present time cannot be described as healthy. I discern in the present industrial system of our country three vicious conditions which make us peculiarly susceptible to any outside disturbance of international trade. First, the lack of any central organisation of industry, or any general and concerted control either of ordinary Government work, or of any extraordinary relief works. It would be possible for the Board of Trade to foretell with a certain amount of accuracy the degree of unemployment likely to be reached in any winter. It ought to be possible for some authority in some Government office—which I do not care—to view the whole situation in advance, and within certain limits to exert a powerful influence over the general distribution of Government contracts.

There is nothing economically unsound in increasing temporarily and artificially the demand for labour during a period of temporary and artificial contraction. There is a plain need of some averaging machinery to regulate and even-up the general course of the labour market, in the same way as the Bank of England, by its bank rate, regulates and corrects the flow of business enterprise. When the extent of the depression is foreseen, the extent of the relief should also be determined. There ought to be in permanent existence certain recognised industries of a useful, but uncompetitive character, like, we will say, afforestation, managed by public departments, and capable of being expanded or contracted according to the needs of the labour market, just as easily as you can pull out the stops or work the pedals of an organ. In this way, you would not eliminate unemployment, you certainly would not prevent the creation of unemployables; but you would considerably limit the scale of unemployment, you would reduce the oscillation of the industrial system, you would increase its stability, and by every step that you took in that direction you would free thousands of your fellow-countrymen from undeserved agony and ruin, and a far greater number from the haunting dread of ruin. That is the first point—a gap, a hiatus in our social organisation—to which I direct your attention to-night, and upon which the intelligence of this country ought to be concentrated.

The second vicious condition is positive and not negative. I mean the gross, and, I sometimes fear, increasing evil of casual labour. We talk a great deal about the unemployed, but the evil of the under-employed is the tap-root of unemployment. There is a tendency in many trades, almost in all trades, to have a fringe of casual labour on hand, available as a surplus whenever there is a boom, flung back into the pool whenever there is a slump. Employers and foremen in many trades are drawn consciously or unconsciously to distribute their work among a larger number of men than they regularly require, because this obviously increases their bargaining power with them, and supplies a convenient reserve for periods of brisk business activity.

And what I desire to impress upon you, and through you upon this country, is that the casual unskilled labourer who is habitually under-employed, who is lucky to get three, or at the outside four, days' work in the week, who may often be out of a job for three or four weeks at a time, who in bad times goes under altogether, and who in good times has no hope of security and no incentive to thrift, whose whole life and the lives of his wife and children are embarked in a sort of blind, desperate, fatalistic gamble with circumstances beyond his comprehension or control, that this poor man, this terrible and pathetic figure, is not as a class the result of accident or chance, is not casual because he wishes to be casual, is not casual as the consequence of some temporary disturbance soon put right. No; the casual labourer is here because he is wanted here. He is here in answer to a perfectly well-defined demand. He is here as the result of economic causes which have been too long unregulated. He is not the natural product, he is an article manufactured, called into being, to suit the requirements, in the Prime Minister's telling phrase, of all industries at particular times and of particular industries at all times.

I suppose no Department has more means of learning about these things than the Board of Trade, which is in friendly touch at every stage all over the country both with capital and labour. I publish that fact deliberately. I invite you to consider it, I want it to soak in. It appears to me that measures to check the growth and diminish the quantity of casual labour must be an essential part of any thorough or scientific attempt to deal with unemployment, and I would not proclaim this evil to you without having reason to believe that practicable means exist by which it can be greatly diminished.

If the first vicious condition which I have mentioned to you is lack of industrial organisation, if the second is the evil of casual labour, there is a third not less important. I mean the present conditions of boy labour. The whole underside of the labour market is deranged by the competition of boys or young persons who do men's work for boys' wages, and are turned off so soon as they demand men's wages for themselves. That is the evil so far as it affects the men; but how does it affect the boys, the youth of our country, the heirs of all our exertion, the inheritors of that long treasure of history and romance, of science and knowledge—aye, of national glory, for which so many valiant generations have fought and toiled—the youth of Britain, how are we treating them in the twentieth century of the Christian era? Are they not being exploited? Are they not being demoralised? Are they not being thrown away?

Whereas the youth of the wealthier class is all kept under strict discipline until eighteen or nineteen, the mass of the nation runs wild after fourteen years of age. No doubt at first employment is easy to obtain. There is a wide and varied field; there are a hundred odd jobs for a lad; but almost every form of employment now open to young persons affords them no opening, is of no use to them whatever when they are grown up, and in a great number of cases the life which they lead is demoralising and harmful. And what is the consequence? The consequence may be measured by this grim fact, that out of the unemployed applying for help under the Unemployed Workmen Act, no less than twenty-eight per cent. are between twenty and thirty years of age, that is to say, men in the first flush of their strength and manhood already hopelessly adrift on the dark and tumultuous ocean of life. Upon this subject, I say to you deliberately that no boy or girl ought to be treated merely as cheap labour, that up to eighteen years of age every boy and girl in this country should, as in the old days of apprenticeship, be learning a trade as well as earning a living.

All attempts to deal with these and similar evils involve the expenditure of money. It is no use abusing capitalists and rich people. They are neither worse nor better than any one else. They function quite naturally under the conditions in which they find themselves. When the conditions are vicious, the consequence will be evil; when the conditions are reformed, the evil will be abated. Nor do I think the wealthy people of Great Britain would be ungenerous or unwilling to respond to the plain need of this nation for a more complete or elaborate social organisation. They would have a natural objection to having public money wasted or spent on keeping in artificial ease an ever-growing class of wastrels and ne'er-do-weels. No doubt there would also be a selfish element who would sullenly resist anything which touched their pocket. But I believe that if large schemes, properly prepared and scientifically conceived for dealing with the evils I have mentioned were presented, and if it could be shown that our national life would be placed upon a far more stable and secure foundation, I believe that there would be thousands of rich people who would cheerfully make the necessary sacrifices. At any rate, we shall see.

The year that lies before us must be a year of important finance. No doubt that finance will be a subject of fierce and protracted discussion; but I shall certainly not exclude from my mind, in weighing the chances of social reform, that strong element of patriotism which is to be found among the more fortunate of our fellow-countrymen, and which has honourably distinguished them from the rich people of other countries I could name.

I have been dealing with three, and only three, of the evil causes which principally affect labour conditions in Great Britain at the present time. Do not forget, however, as the Prime Minister has reminded us, how intimate is the co-relation of all social reforms, how vital it is to national health and security that we should maintain an adequate and independent population upon the land, and how unsatisfactory, in Scotland, at any rate, are the present conditions for small holdings. Do not forget, either, how fatal to the social, moral, and political progress of British democracy is the curse of intemperance. There is not a man or woman who lifts a voice and exerts an influence in support either of land or of temperance reform, who will not be doing something not only to alleviate the sufferings of the poor, but to stimulate the healthy advance of British prosperity.

But see how vast is the range of this question of unemployment with which we are confronted. See now how intricate are its details and its perplexities; how foolish it would be to legislate in panic or haste; how vain it would be to trust to formulas and prejudices; how earnest must be the study; how patient and laborious the preparation; how scientific the spirit, how valiant the action, if that great and hideous evil of insecurity by which our industrial population are harassed is to be effectually diminished in our national life. See now, also, what sort of politicians those are, whichever extreme of politics they may belong to, who tell you that they have an easy, simple, and unfailing remedy for such an evil. What sort of unscrupulous and reckless adventurers they are who tell you that tariff reform, that a trumpery ten per cent. tariff on foreign manufactures, and a tax on wheat would enable them to provide "work for all." I was very glad to see that Mr. Balfour frankly and honestly dissociated himself, the other night at Dumfries, from the impudent political cheap-jacks who are touting the country on behalf of the Tory Party, by boldly declaring that tariff reform, or "fiscal reform," as he prefers to call it, would be no remedy for unemployment or trade oscillations.

Now that Mr. Balfour has made that admission, for which we thank him, and for which we respect him, I will make one in my turn. If tariff reform or protection, or fiscal reform, or whatever you choose to call it, is no remedy for unemployment—and it is pretty clear from the experience of other countries who have adopted it on a large scale that it is not—neither is free trade by itself a remedy for unemployment. The evil lies deeper, the causes are more complex than any within the reach of import duties or of no import duties, and its treatment requires special measures of a social, not less than of an economic character which are going to carry us into altogether new and untrodden fields in British politics.

I agree most whole-heartedly with those who say that in attempting to relieve distress or to regulate the general levels of employment, we must be most careful not to facilitate the very disorganisation of industry which causes distress. But I do not agree with those who say that every man must look after himself, and that the intervention by the State in such matters as I have referred to will be fatal to his self-reliance, his foresight, and his thrift. We are told that our non-contributory scheme of old-age pensions, for instance, will be fatal to thrift, and we are warned that the great mass of the working classes will be discouraged thereby from making any effective provision for their old age. But what effective provision have they made against old age in the past? If terror be an incentive to thrift, surely the penalties of the system which we have abandoned ought to have stimulated thrift as much as anything could have been stimulated in this world. The mass of the labouring poor have known that unless they made provision for their old age betimes they would perish miserably in the workhouse. Yet they have made no provision; and when I am told that the institution of old-age pensions will prevent the working classes from making provision for their old age, I say that cannot be, for they have never been able to make such provision. And I believe our scheme, so far from preventing thrift, will encourage it to an extent never before known.

It is a great mistake to suppose that thrift is caused only by fear; it springs from hope as well as from fear; where there is no hope, be sure there will be no thrift. No one supposes that five shillings a week is a satisfactory provision for old age. No one supposes that seventy is the earliest period in a man's life when his infirmities may overwhelm him. We have not pretended to carry the toiler on to dry land; it is beyond our power. What we have done is to strap a lifebelt around him, whose buoyancy, aiding his own strenuous exertions, ought to enable him to reach the shore.

And now I say to you Liberals of Scotland and Dundee two words—"Diligence and Daring." Let that be your motto for the year that is to come. "Few," it is written, "and evil are the days of man." Soon, very soon, our brief lives will be lived. Soon, very soon, we and our affairs will have passed away. Uncounted generations will trample heedlessly upon our tombs. What is the use of living, if it be not to strive for noble causes and to make this muddled world a better place for those who will live in it after we are gone? How else can we put ourselves in harmonious relation with the great verities and consolations of the infinite and the eternal? And I avow my faith that we are marching towards better days. Humanity will not be cast down. We are going on—swinging bravely forward along the grand high road—and already behind the distant mountains is the promise of the sun.

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THE SOCIAL FIELDToC

Birmingham, January 13, 1909 [13]

(From The Times, by permission.)

I am very glad to come here to-night to wish good luck in the New Year to the Liberals of Birmingham. Good luck is founded on good pluck, and that is what I think you will not fail in. Birmingham Liberals have for twenty years been over-weighted by the influence of remarkable men and by the peculiar turn of events. This great city, which used to be the home of militant Radicalism, which in former days supplied with driving power the cause of natural representation against hereditary privilege, has been captured by the foe. The banner of the House of Lords has been flung out over the sons and grandsons of the men who shook all England in the struggle for the great Reform Bill; and while old injustice has but been replaced by new, while the miseries and the privations of the poor continue in your streets, while the differences between class and class have been even aggravated in the passage of years, Birmingham is held by the enemy and bound to retrogression in its crudest form.

But this is no time for despondency. The Liberal Party must not allow itself to be overawed by the hostile Press which is ranged against it. Boldly and earnestly occupied, the platform will always beat the Press. Still less should we allow ourselves to be perturbed by the fortuitous and sporadic results of by-electoral warfare. I suppose I have fought as many by-elections as most people, and I know that all the advantages lie with the attacking force. The contests are complicated by personal and local influences. The discussions turn upon the incidents of current legislation. There are always grievances to be urged against the Government of the day. After a great victory, all parties, and particularly the Liberals, are prone to a slackening of effort and organisation; after a great defeat all parties, and especially the Tories, are spurred to supreme exertions.

These factors are common to all by-elections, under all Governments; but never, I venture to say, has it been more important to an Opposition to gain by-electoral successes than during the present Parliament. It is their only possible line of activity. In the House of Commons they scarcely show their noses. In divisions they are absent; in debate—well, I do not think we need say much about that; and it is only by a combination of by-electoral incidents properly advertised by the Party Press on the one hand, and the House of Lords' manipulation upon the other, that the Conservative Party are able to keep their heads above water. And when I speak of the importance to the Opposition of by-elections, let me also remind you that never before have by-electoral victories been so important, not only to a great Party, but to a great trade.

Therefore, while I am far from saying that we should be content with recent manifestations of the opinion of the electorate, while I do not at all deny that they involve a sensible reaction of feeling of an unfavourable character, and while I urge the most strenuous exertions upon all concerned in party organisation, I assert that there is no reason, as the history of this country abundantly shows, why a general election, at a well-chosen moment, and upon some clear, broad, simple issue, should not retrieve and restore the whole situation.

There could be no question of a Government, hitherto undisturbed by internal disagreement and consistently supported in the House of Commons by a large, united, and intact majority, being deflected one hair's breadth from its course by the results of by-elections. We have our work to do, and while we have the power to carry it forward, we have no right, even if we had the inclination, to leave it uncompleted. Certainly we shall not be so foolish, or play so false to those who have supported us, as to fight on any ground but that of our own choosing, or at any time but that most advantageous to the general interest of the Progressive cause.

The circumstances of the period are peculiar. The powers of the House of Lords to impede, and by impeding to discredit, the House of Commons are strangely bestowed, strangely limited, and still more strangely exercised. There are little things which they can maul; there are big things they cannot touch; there are Bills which they pass, although they believe them to be wrong; there are Bills which they reject, although they know them to be right. The House of Lords can prevent the trams running over Westminster Bridge; but it cannot prevent a declaration of war. It can reject a Bill prohibiting foreign workmen being brought in to break a British strike; it cannot amend a Bill to give old-age pensions to 600,000 people. It can thwart a Government in the minute details of its legislation; it cannot touch the whole vast business of finance. It can prevent the abolition of the plural voter; but it could not prevent the abolition of the police. It can refuse a Constitution to Ireland, but not, luckily, to Africa.

Lord Lansdowne, in his leadership of the House of Lords during the present Parliament, has put forward claims on its behalf far more important and crude than ever were made by the late Lord Salisbury. No Tory leader in modern times has ever taken so high a view of its rights, and at the same time no one has shown a more modest conception of its duties. In destroying the Education Bill of 1906 the House of Lords asserted its right to resist the opinion of a majority of members of the House of Commons, fresh from election, upon a subject which had been one of the most prominent issues of the election. In rejecting the Licensing Bill of 1908 they have paraded their utter unconcern for the moral welfare of the mass of their fellow-countrymen.

There is one feature in the guidance of the House of Lords by Lord Lansdowne which should specially be noticed, and that is the air of solemn humbug with which this ex-Whig is always at pains to invest its proceedings. The Nonconformist child is forced into the Church school in single-school areas in the name of parents' rights and religious equality. The Licensing Bill is rejected in the highest interests of temperance. Professing to be a bulwark of the commercial classes against Radical and Socialistic legislation, the House of Lords passes an Old-Age Pensions Bill, which it asserts will be fatal alike to public finance and public thrift, a Mines Eight Hours Bill, which it is convinced will cripple British industry, and a Trades Disputes Bill, which it loudly declared tyrannous and immoral. Posing as a Chamber of review remote from popular passion, far from the swaying influences of the electorate, it nevertheless exhibits a taste for cheap electioneering, a subserviency to caucus direction, and a party spirit upon a level with many of the least reputable elective Chambers in the world; and beneath the imposing mask of an assembly of notables backed by the prescription and traditions of centuries we discern the leer of the artful dodger, who has got the straight tip from the party agent.

It is not possible for reasonable men to defend such a system or such an institution. Counter-checks upon a democratic Assembly there may be, perhaps there should be. But those counter-checks should be in the nature of delay, and not in the nature of arrest; they should operate evenly and equally against both political parties, and not against only one of them; and above all they should be counter-checks conceived and employed in the national interest and not in a partisan interest. These abuses and absurdities have now reached a point when it is certain that reform, effective and far-reaching, must be the necessary issue at a general election; and, whatever may be the result of that election, be sure of this, that no Liberal Government will at any future time assume office without securing guarantees that that reform shall be carried out.

There is, however, one reason which would justify a Government, circumstanced and supported as we are, in abandoning prematurely the trust confided to us by the country. When a Government is impotent, when it is destitute of ideas and devoid of the power to give effect to them, when it is brought to a complete arrest upon the vital and essential lines of its policy, then I entirely agree that the sooner it divests itself of responsibilities which it cannot discharge, the better for the country it governs and the Party it represents. No one who looks back over the three busy years of legislation which have just been completed can find any grounds for such a view of our position; and although we have sustained checks and vexations from circumstances beyond our control which have prevented us settling, as we otherwise would have done, the problems of licensing and of education, no lover of progress who compares the Statute-book as it stands to-day with its state in 1905, need feel that he has laboured in vain.

No one can say that we have been powerless in the past. The trade unionist as he surveys the progress of his organisation, the miner as the cage brings him to the surface of the ground, the aged pensioner when he visits the post office with his cheque-book, the Irish Catholic whose son sees the ranges of a University career thrown open, the child who is protected in his home and in the street, the peasant who desires to acquire a share of the soil he tills, the youthful offender in the prison, the citizen as he takes his seat on the county bench, the servant who is injured in domestic service, all give the lie to that—all can bear witness to the workings of a tireless social and humanitarian activity, which, directed by knowledge and backed by power, tends steadily to make our country a better place for the many, without at the same time making it a bad place for the few.

But, if we have been powerful in the past, shall we then be powerless in the future? Let the year that has now opened make its answer to that. We shall see before many months are passed whether his Majesty's Government, and the House of Commons, by which it is supported, do not still possess effective means to carry out their policy, not only upon those important political issues in which we have been for the time being thwarted, but also in that still wider and, in my opinion, more important field of social organisation into which, under the leadership of the Prime Minister, we shall now proceed to advance.I do not, of course, ignore the fact that the House of Lords has the power, though not the constitutional right, to bring the government of the country to a standstill by rejecting the provision which the Commons make for the financial service of the year. That is a matter which does not rest with us, it rests with them. If they want a speedy dissolution, they know where to find one. If they really believe, as they so loudly proclaim, that the country will hail them as its saviours, they can put it to the proof. If they are ambitious to play for stakes as high as any Second Chamber has ever risked, we shall not be wanting. And, for my part, I should be quite content to see the battle joined as speedily as possible upon the plain, simple issue of aristocratic rule against representative government, between the reversion to protection and the maintenance of free trade, between a tax on bread and a tax on—well, never mind. And if they do not choose, or do not dare to use the powers they most injuriously possess, if fear, I say, or tactics, or prudence, or some lingering sense of constitutional decency, restrains them, then for Heaven's sake let us hear no more of these taunts, that we, the Liberal Party, are afraid to go to the country, that we do not possess its confidence, and that we are impotent to give effect to the essential purposes of our policy.

Subject to such a constitutional outrage as I have indicated, his Majesty's Government will claim their right and use their power to present the Liberal case as a whole to the judgment of the whole body of electors. That case is already largely developed. How utterly have all those predictions been falsified that a Liberal Government would be incapable of the successful conduct of Imperial affairs! Whether you look at our position in Europe, or at the difficult conduct of Indian administration, or the relations which have been preserved, and in some cases restored, with our self-governing Colonies, the policy of the Government has been attended with so much success that it has not only commanded the approval of impartial persons, but has silenced political criticism itself.

It was in South Africa that we were most of all opposed and most of all distrusted, and by a singular inversion it is in South Africa that the most brilliant and memorable results have been achieved. Indeed, I think that the gift of the Transvaal and Orange River Constitutions and the great settlement resulting therefrom will be by itself as a single event sufficient to vindicate in the eyes of future generations the administration of Sir Henry Campbell-Bannerman, and to dignify his memory in Parliaments and periods which we shall not see. But our work abroad is not yet completed, has not yet come to its full fruition. If we should continue, as I expect we shall, to direct public affairs for the full five years which are the normal and the healthy period of British Administrations, we may look for a further advance and improvement in all the great external spheres of Imperial policy. We may look in India for a greater sense of confidence and solidarity between the people and the Government. We shall salute the sunrise of South Africa united under the British Crown. And in Europe I trust that Sir Edward Grey will have crowned his work at the Foreign Office by establishing a better and kindlier feeling between the British and the German peoples. That will be the record of policy beyond the seas on which we shall appeal for judgment and for justice.

If it be said that, contrary to general expectation, our policy has prospered better abroad than at home, you have not far to look for the reason. Abroad we have enjoyed full responsibility, a free hand, and fair-play; at home we have had a divided authority, a fettered hand, and the reverse of fair-play. We have been hampered and we have been harassed. We have done much; we could have done much more.

Our policy at home is less complete and less matured than it is abroad. But it so happens that many of the most important steps which we should now take, are of such a character that the House of Lords will either not be able or will not be anxious to obstruct them, and could not do so except by courting altogether novel dangers. The social field lies open. There is no great country where the organisation of industrial conditions more urgently demands attention. Wherever the reformer casts his eyes he is confronted with a mass of largely preventable and even curable suffering. The fortunate people in Britain are more happy than any other equally numerous class have been in the whole history of the world. I believe the left-out millions are more miserable. Our vanguard enjoys all the delights of all the ages. Our rearguard straggles out into conditions which are crueller than barbarism. The unemployed artisan, the casual labourer, and the casual labourer's wife and children, the sweated worker, the infirm worker, the worker's widow, the under-fed child, the untrained, undisciplined, and exploited boy labourer—it is upon these subjects that our minds should dwell in the early days of 1909.

The Liberal Party has always known the joy which comes from serving great causes. It must also cherish the joy which comes from making good arrangements. We shall be all the stronger in the day of battle if we can show that we have neglected no practicable measure by which these evils can be diminished, and can prove by fact and not by words that, while we strive for civil and religious equality, we also labour to build up—so far as social machinery can avail—tolerable basic conditions for our fellow-countrymen. There lies the march, and those who valiantly pursue it need never fear to lose their hold upon the heart of Britain.

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FOOTNOTES:

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THE APPROACHING CONFLICTToC

Nottingham, January 30, 1909

(From The Manchester Guardian, by permission of the Editor.)

We are met together at a time when great exertions and a high constancy are required from all who cherish and sustain the Liberal cause. Difficulties surround us and dangers threaten from this side and from that. You know the position which has been created by the action of the House of Lords. Two great political Parties divide all England between them in their conflicts. Now it is discovered that one of these Parties possesses an unfair weapon—that one of these Parties, after it is beaten at an election, after it is deprived of the support and confidence of the country, after it is destitute of a majority in the representative Assembly, when it sits in the shades of Opposition without responsibility, or representative authority, under the frown, so to speak, of the Constitution, nevertheless possesses a weapon, an instrument, a tool, a utensil—call it what you will—with which it can harass, vex, impede, affront, humiliate, and finally destroy the most serious labours of the other. When it is realised that the Party which possesses this prodigious and unfair advantage is in the main the Party of the rich against the poor, of the classes and their dependants against the masses, of the lucky, the wealthy, the happy, and the strong against the left-out and the shut-out millions of the weak and poor, you will see how serious the constitutional situation has become.

A period of supreme effort lies before you. The election with which this Parliament will close, and towards which we are moving, is one which is different in notable features from any other which we have known. Looking back over the politics of the last thirty years, we hardly ever see a Conservative Opposition approaching an election without a programme, on paper at any rate, of social and democratic reform. There was Lord Beaconsfield with his policy of "health and the laws of health." There was the Tory democracy of Lord Randolph Churchill in 1885 and 1886, with large, far-reaching plans of Liberal and democratic reform, of a generous policy to Ireland, of retrenchment and reduction of expenditure upon naval and military armaments—all promises to the people, and for the sake of which he resigned rather than play them false. Then you have the elections of 1892 and 1895. In each the Conservative Party, whether in office or opposition, was, under the powerful influence of Mr. Chamberlain, committed to most extensive social programmes, of what we should call Liberal and Radical reforms, like the Workmen's Compensation Act and Old-Age Pensions, part of which were carried out by them and part by others.

But what social legislation, what plans of reform do the Conservative Party offer now to the working people of England if they will return them to power? I have studied very carefully the speeches of their leaders—if you can call them leaders—and I have failed to discover a single plan of social reform or reconstruction. Upon the grim and sombre problems of the Poor Law they have no policy whatever. Upon unemployment no policy whatever; for the evils of intemperance no policy whatever, except to make sure of the public-house vote; upon the question of the land, monopolised as it is in the hands of so few, denied to so many, no policy whatever; for the distresses of Ireland, for the relations between the Irish and British peoples, no policy whatever unless it be coercion. In other directions where they have a policy, it is worse than no policy. For Scotland the Lords' veto, for Wales a Church repugnant to the conscience of the overwhelming majority of the Welsh people, crammed down their throats at their own expense.

Yet we are told they are confident of victory, they are persuaded that the country has already forgotten the follies and even the crimes of the late Administration, and that the general contempt and disgust in which they were dismissed from power has already passed away. They are already busy making their Cabinet, who is to be put in and, what is not less important, who is to be put out. Lists of selection and lists of proscription are being framed. The two factions into which they are divided, the Balfourites and the tariff reformers, are each acutely conscious of one another's infirmities, and, through their respective organs, they have succeeded in proving to their apparent satisfaction what most of us have known, and some of us have said for a long time past, that they are an uncommonly poor lot all round.

It would be bad enough if a Party so destitute, according to its own statement, of political merit were to return with the intention of doing nothing but repeating and renewing our experiences under Mr. Balfour's late Administration, of dragging through empty sessions, of sneering at every philanthropic enthusiasm, of flinging a sop from time to time to the brewers or the parsons or the landed classes. But those would not be the consequences which would follow from the Tory triumph. Consequences far more grave, immeasurably more disastrous, would follow. We are not offered an alternative policy of progress, we are not confronted even with a policy of standstill, we are confronted with an organised policy of constructive reaction. We are to march back into those shades from which we had hoped British civilisation and British science had finally emerged.

If the Conservative Party win the election they have made it perfectly clear that it is their intention to impose a complete protective tariff, and to raise the money for ambitious armaments and colonial projects by taxing the poor. They have declared, with a frankness which is, at any rate, remarkable, that they will immediately proceed to put a tax on bread, a tax on meat, a tax on timber, and an innumerable schedule of taxes on all manufactured articles imported into the United Kingdom; that is to say, that they will take by all these taxes a large sum of money from the pockets of the wage-earners, by making them pay more for the food they eat, the houses they live in, and the comforts and conveniences which they require in their homes, and that a great part of this large sum of money will be divided between the landlords and the manufacturers in the shape of increased profits; and even that part of it which does reach the Exchequer is to be given back to these same classes in the shape of reductions in income-tax and in direct taxation. If you face the policy with which we are now threatened by the Conservative Party fairly and searchingly, you will see that it is nothing less than a deliberate attempt on the part of important sections of the propertied classes to transfer their existing burdens to the shoulders of the masses of the people, and to gain greater profits for the investment of their capital by charging higher prices.

It is very natural that a Party nourishing such designs should be apprehensive of criticism and of opposition; but I must say I have never heard of a Party which was in such a jumpy, nervous state as our opponents are at this present time. If one is led in the course of a speech, as I sometimes am, to speak a little firmly and bluntly about the Conservative tariff reformers, they become almost speechless with indignation. They are always in a state of incipient political apoplexy, while as for the so-called Liberal Unionists, whenever they are criticised, they never leave off whining and say that it is unchivalrous to attack them while Mr. Chamberlain is disabled. Sorry I am that he is out of the battle, not only on personal, but on public grounds. His fiercest opponents would welcome his re-entry into the political arena, if only for the fact that we should then have a man to deal with, and some one whose statement of the case for his side would be clear and bold, whose speeches would be worth reading and worth answering, instead of the melancholy marionettes whom the wire-pullers of the Tariff Reform League are accustomed to exhibit on provincial platforms. But I hope you will not let these pretexts or complaints move you or prevent you from calling a spade a spade, a tax a tax, a protective tariff a gigantic dodge to cheat the poor, or the Liberal Unionist party the most illiberal thing on record.

But if the tariff reformers are so touchy and intolerant that they resent the slightest attack or criticism from their opponents as if it were sacrilege, that is nothing to the fury which they exhibit when any of their friends on the Conservative side begin to ask a few questions. One would have thought at least that matters of such gravity and such novelty should be considered fairly on their merits. But what does Mr. Austen Chamberlain say? He tells us that no hesitation will be tolerated from Unionist Members of Parliament in regard to any tariff reform proposals which may in a future Parliament be submitted—by whoever may be the Chancellor of the Exchequer. No hesitation will be tolerated. Not opposition, not criticism, not dissent, but no hesitation will be tolerated. The members of the Unionist Party are to go to the next Parliament, not as honest gentlemen, free to use their minds and intelligences. They are to go as the pledged, tied-up delegates of a caucus, forced to swallow without hesitation details of a tariff which they have not even seen; denied the right which every self-respecting man should claim, to give their vote on grand and cardinal issues according to their faith and their conscience. And in order that those who would refuse to be bound by these dishonouring conditions may be smelt out and excluded from the House of Commons, a secret society of nameless but probably interested busybodies is hard at work in all the dirtiest sewers of political intrigue.

But, after all, these methods are an inseparable part of the process of carrying a protectionist tariff. The whole question resolves itself into a matter of "business is business," and the predatory interests which have banded themselves together to finance and organise the tariff campaign cannot be expected to put up with the conscientious scruples and reasonable hesitations of Members of Parliament. It will be a cash transaction throughout, with large profits and quick delivery. Every little would-be monopolist in the country is going to have his own association to run his own particular trade. Every constituency will be forced to join in the scramble, and to secure special favours at the expense of the commonwealth for its special branches of industry. All the elections of the future will turn on tariffs. Why, you can see the thing beginning already. That egregious Tariff Commission have been dividing all the loot among themselves before the battle has been won—dividing the lion's skin while the beast lives—and I was reading only the other day that the Conservatives of Norwood have decided that they could not support their Member any longer, because, forsooth, he would not pledge himself to vote for a special tax on foreign imported chairs and window panes. It is the same in every country.

Such is the great conspiracy with which the British democracy is now confronted—an attempt to place the main burden of taxation upon the shoulders of wage-earners and not on income-drawers, a disastrous blow at the prosperity, the freedom, the flexibility, and the expansive power of British industry, and a deadly injury to the purity of English public life. The Conservative Party tell us that if they win the victory they will screw a protective tariff on our necks. What do we say? What of the House of Lords? We say that if we win, we will smash to pieces the veto of the House of Lords. If we should obtain a majority at the next election—and I have good hopes that if we act with wisdom and with union, and, above all, with courage, we shall undoubtedly obtain an effective majority—the prize we shall claim will be a final change in the relations of the two Houses of Parliament, of such a character as to enable the House of Commons to make its will supreme within the lifetime of a single Parliament; and except upon that basis, or for the express purpose of effecting that change, we will not accept any responsibility for the conduct of affairs.

But there is another issue which must not be overlooked. I mean the social issue. We have taken a great step already. I must say that he is rather a sour kind of man who can find nothing to notice in the Old-Age Pensions Act except its little flaws and petty defects. I think you will feel, on the contrary, that the establishment of the pensions system is a marvellous and impressive example of the power which British Governments possess. Without a hitch, perfectly smoothly, punctual to the minute, regular as clockwork, nearly 600,000 aged persons are being paid their pensions every week. That is a wonderful and beneficent achievement, a good job well worth some risk and sweat to finish. Nearly eight millions of money are being sent circulating through unusual channels, long frozen by poverty, circulating in the homes of the poor, flowing through the little shops which cater to their needs, cementing again family unions which harsh fate was tearing asunder, uniting the wife to the husband, and the parent to the children. No; in spite of Socialistic sneer and Tory jeer and glorious beer, and all the rest of it, I say it is a noble and inspiring event, for which this Parliament will be justly honoured by generations unborn. I said just now that a Tory tariff victory meant marching backwards, but there are some things they cannot undo. We may be driven from power. We may desire to be released from responsibility. Much of our work may be cut short, much may be overturned. But there are some things which Tory reaction will not dare to touch, and, like the settlement and reconciliation of South Africa, so the Old-Age Pensions Act will live and grow and ripen as the years roll by, far beyond the reach of Party warfare and far above the changing moods of faction.

There are many political injustices in this country and many absurd, oppressive, or obsolete practices. But the main aspirations of the British people are at this present time social rather than political. They see around them on every side, and almost every day, spectacles of confusion and misery which they cannot reconcile with any conception of humanity or justice. They see that there are in the modern state a score of misfortunes that can happen to a man without his being in fault in any way, and without his being able to guard against them in any way. They see, on the other hand, the mighty power of science, backed by wealth and power, to introduce order, to provide safeguards, to prevent accidents, or at least to mitigate their consequences. They know that this country is the richest in the world; and in my sincere judgment the British democracy will not give their hearts to any Party that is not able and willing to set up that larger, fuller, more elaborate, more thorough social organisation, without which our country and its people will inevitably sink through sorrow to disaster and our name and fame fade upon the pages of history.We have done some of that work, and we are going to do more. In moving forward to this great struggle which is approaching, we are going to carry our social policy along with us. We are not going to fight alone upon the political and constitutional issue, nor alone upon the defence of free trade. We are going, fearless of the consequences, confident of our faith, to place before the nation a wide, comprehensive, interdependent scheme of social organisation—to place it before the people not merely in the speeches or placards of a Party programme, but by a massive series of legislative proposals and administrative acts. If we are interrupted or impeded in our march, the nation will know how to deal with those who stand in the path of vital and necessary reforms. And I am confident that in the day of battle the victory will be to the earnest and to the persevering; and then again will be heard the doleful wail of Tory rout and ruin, and the loud and resounding acclamations with which the triumphant armies of democracy will march once again into the central place of power.

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THE SECOND READING OF THE ANTI-SWEATING BILL[14]ToC

House of Commons, April 28, 1909

It is a serious national evil that any class of his Majesty's subjects should receive in return for their utmost exertions less than a living wage.

It was formerly supposed that the workings of the laws of supply and demand would in the regular and natural course of events, and by a steady progression, eliminate that evil, and achieve adequate minimum standards. Modern opinion has found it necessary greatly to refine upon these broad generalisations of the truth, and the first clear division that we make to-day in questions of wages, is that between a healthy and unhealthy condition of bargaining.

Where, as in the great staple trades of this country, you have powerful organisations on both sides, with responsible leaders able to bind their constituents to their decisions, conjoined with automatic scales, or arbitration or conciliation in case of a deadlock, there you have a healthy condition of bargaining, which increases the competitive power of the industry, which continually weaves more closely together the fortunes of Capital and Labour, and which enforces a constant progression in the standards of living and of productive power. But where, as in what we call "Sweated trades," you have no organisation at all on either side, no parity of bargaining between employers and employed, where the good employer is continually undercut by the bad, and the bad again by the worse; where the worker whose whole livelihood depends on the trade is undercut by the worker to whom it is only a second string; where the feebleness and ignorance of the workers and their isolation from each other render them an easy prey to the tyranny of bad masters, and middlemen one step above them upon the lowest rungs of the ladder, and themselves held in the grip of the same relentless forces—there you have a condition not of progress but of progressive degeneration. And just as in the former case the upward tendency will be constant if it is not interrupted by external power, so in the latter case the demoralisation will continue in a squalid welter for periods which are quite indefinite so far as our brief lives are concerned.

We have seen from the investigations of the last twenty years, when the phenomena of sweating have been under close and scientific review, that there is no power of self-cure within the area of the evil. We have seen that while the general advance in the standards of work and wages has on the whole been constant, these morbid and diseased patches, which we call the Sweated Trades, have not shared in that improvement, but have remained in a state of chronic depression and degeneration. The same shocking facts, in some cases the same pitiful witnesses, were brought before the Select Committee last year as before Lord Dunraven's Committee in 1888. Indeed I am advised that in some respects wages and conditions are worse than they were twenty years ago. Nor are these melancholy facts confined to any one country. Sweating is not a peculiarity of Great Britain. Practically the same trades experience the same evils in all other industrial countries. France, Germany, Austria, and America reproduce with great exactness under similar economic conditions the same social evils, and in those countries, as in ours, Sweated Industries—by which I mean trades where there is no organisation, where wages are exceptionally low, and conditions subversive of physical health and moral welfare—cast dark shadows in what is, upon the whole, the growing and broadening light of civilisation.

There is a clear reason for this, which is in itself at once a justification for the special treatment which we propose for these trades, and a means of marking them off more or less definitely from the ordinary trades. In the case of any great staple trade in this country, if the rate of wages became unnaturally low compared to other industries, and the workers could not raise it by any pressure on their part, the new generation at any rate would exercise a preference for better pay and more attractive forms of industry. The gradual correction of depressed conditions over large periods of time is thus possible. But in these sweated industries there is no new generation to come to the rescue. They are recruited from a class rather than from a section of the community. The widow, the women folk of the poorest type of labourer, the broken, the weak, the struggling, the diseased—those are the people who largely depend upon these trades, and they have not the same mobility of choice, exerted, tardily though it be, by a new generation, but which is undoubtedly operative upon the great staple trades of the country. That is an explanation which accounts for the same evils being reproduced under similar conditions in different countries, separated widely from one another and marked by great differences of general conditions.

I ask the House to regard these industries as sick and diseased industries. I ask Parliament to deal with them exactly in the same mood and temper as we should deal with sick people. It would be cruel to prescribe the same law for the sick as for the sound. It would be absurd to apply to the healthy the restrictions required for the sick. Further, these sweated trades are not inanimate abstractions. They are living, almost sentient, things. Let the House think of these sweated trades as patients in a hospital ward. Each case must be studied and treated entirely by itself. No general rule can be applied. There is no regulation dose which will cure them all. You cannot effect quicker cures by giving larger doses. Different medicines, different diets, different operations are required for each; and consideration, encouragement, nursing, personal effort are necessary for all. Great flexibility and variety of procedure, and a wide discretionary power, entrusted to earnest and competent people, must characterise any attempt to legislate on this subject.

The central principle of this Bill is the establishment of Trade Boards, which will be charged with the duty of fixing a minimum wage. I am very anxious to give these Trade Boards the utmost possible substance and recognition. They will be formed on the principle of equality of representation for employers and employed, with a skilled official chairman or nucleus. That is the principle I have adopted in the new Arbitration Court recently established. That is the principle which will govern the system of Labour Exchanges, shortly to be introduced, and other measures which may come to be associated with Labour Exchanges, and I think it is an excellent principle.

At the same time, do not let us suppose that these Trade Boards will, in the first instance, be very strong or representative bodies. They are to be formed in trades mainly worked by women, where no organisation has ever yet taken root, where there are as yet no means of finding and focusing an effective trade opinion. Where possible, they will be partly elective; in many cases they will, I expect, have to begin by being almost entirely nominated. In some cases it will be upon the official members alone that the main burden will fall. I could not ask the House to confer upon bodies of this nebulous character, not representative, not elective in any democratic sense, responsible not to constituents, nor to a public department, nor to Parliament itself in any way, the absolute and final power of enforcing by the whole apparatus of the law any decision, whether wise or foolish, upon wage questions to which they may come by the narrowest majority. The work which we entrust to them wholly and finally is sufficiently difficult and important. We direct them by this Bill to prescribe minimum rates of wages. They are to find the minimum rate. For that purpose they are as well qualified as any body that we could devise. In this sphere their jurisdiction will be complete. The Board of Trade will not retry the question of what is the right minimum rate. Another and quite different question will be decided by the Board of Trade. They will decide whether the minimum rate which has been prescribed by the Trade Board commands sufficient support in the trade to make its enforcement by inspection and prosecution likely to be effective.

That is the division between the responsibility which the Trade Boards will have and the responsibility which we shall reserve to ourselves. I shall be quite ready in Committee to express that intention, which is in the Bill, in a simpler and stronger manner, and to make the function of the Board of Trade a positive and not a negative one, so that when the Trade Board has fixed the minimum rate of wages it shall, after an interval of six months, acquire the force of law, and shall be enforced by compulsory powers, unless in the meanwhile the Board of Trade decides or rules otherwise. For my part, I gladly give an assurance that it is our intention to put the compulsory provisions of this Bill into full effect upon at least one of the trades in the schedule, at as early a date as possible, in order to bring about the fulfilment of a much-needed and long-overdue experiment.

Now I come to the probationary period, and I know that there are a great many who have stated that it is mere waste of time. I, on the contrary, have been led to the opinion that it is vital to any practical or effective policy against sweating. It is no use to attempt, in trades as complex and obscure as these with which we are dealing, to substitute outside authority for trade opinion. The only hope lies in the judicious combination of the two, each acting and reacting upon the other. A mere increase of the penal provisions and inspection would be a poor compensation for the active support of a powerful section within the trade itself. It is upon the probationary period that we rely to enable us to rally to the Trade Board and to its minimum wage the best employers in the trade. In most instances the best employers in the trade are already paying wages equal or superior to the probable minimum which the Trade Board will establish. The inquiries which I have set on foot in the various trades scheduled have brought to me most satisfactory assurances from nearly all the employers to whom my investigators have addressed themselves.

For the enforcement of this Act, and for the prevention of evasion and collusion, I rely upon the factory inspectors, who will report anything that has come to their notice on their rounds and who will make themselves a channel for complaints. I rely still more upon the special peripatetic inspectors and investigators who will be appointed under the Act by the Board of Trade, who will have to conduct prosecutions under the Act, and who will devote all their time to the purposes of the Act. These officers will incidentally clothe the Trade Boards with real authority, once the rate has been enforced, in that they will be responsible to the Trade Board, and not to some powerful Department of Government external to the Trade Board itself. I rely further upon the support of the members of the Trade Boards themselves, who will act as watch-dogs and propagandists. I rely upon the driving power of publicity and of public opinion. But most of all I put my faith in the practical effect of a powerful band of employers, perhaps a majority, who, whether from high motives or self-interest, or from a combination of the two—they are not necessarily incompatible ideas—will form a vigilant and instructed police, knowing every turn and twist of the trade, and who will labour constantly to protect themselves from being undercut by the illegal competition of unscrupulous rivals.

An investigator in the East End of London writes:

There are solid reasons on which we on this side of the House who are Free Traders rely with confidence, when we associate ourselves with this class of legislation. First of all, we must not imagine that this is the only European country which has taken steps to deal with sweating. The first exhibition of sweated products was held in Berlin, and it was from that exhibition that the idea was obtained of holding that most valuable series of exhibitions throughout this country which created the driving power which renders this Bill possible. I am advised that German legislation on some of these questions has even anticipated us. In other countries legislation is pending on principles not dissimilar from those which we advocate. In Bavaria and Baden the latest reports are to the effect that the official Government Reports of Inquiries recommend almost the same and in some cases stronger provisions than those to which we now ask the assent of the House of Commons. This may be said in a different form of Austria. All this movement which is going on throughout Europe, and which is so pregnant with good, will be powerfully stimulated by our action in this country, and that stimulus will not only facilitate our work by removing the argument which causes hon. gentlemen opposite anxiety, but it will also, I think, redound to the credit of this country that it took a leading and prominent position in what is a noble and benignant work.

I was delighted to hear the Leader of the Opposition say, in a concise and cogent sentence, that he could easily conceive many sweated trades in which the wages of the workers could be substantially raised without any other change except a diminution of price. Sir, the wages of a sweated worker bear no accurate relation to the ultimate price. Sometimes they vary in the same places for the same work done at the same time. And sometimes the worst sweating forms a part of the production of articles of luxury sold at the very highest price. We believe further, however, that decent conditions make for industrial efficiency and increase rather than diminish competitive power. "General low wages," said Mill, "never caused any country to undersell its rivals; nor did general high wages ever hinder it." The employers who now pay the best wages in these sweated trades maintain themselves not only against the comparatively small element of foreign competition in these trades, but against what is a far more formidable competition for this purpose—the competition of those employers who habitually undercut them by the worst processes of sweating. I cannot believe that the process of raising the degenerate and parasitical portion of these trades up to the level of the most efficient branches of the trade, if it is conducted by those conversant with the conditions of the trade and interested in it, will necessarily result in an increase of the price of the ultimate product. It may, even as the right hon. gentleman has said, sensibly diminish it through better methods.

Sir, it is on these grounds, and within these limits, that I ask for a Second Reading for this Bill.

The principles and objects are scarcely disputed here. Let us go into Committee and set to work upon the details, actuated by a single-minded desire to produce a practical result. It is by the evidences of successful experiment that, more than any other way, we shall forward and extend the area of our operations; and in passing this Bill the House will not only deal manfully with a grave and piteous social evil, but it will also take another step along that path of social organisation into which we have boldly entered, and upon which the Parliaments of this generation, whatever their complexion, will have to march.

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FOOTNOTES:

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LABOUR EXCHANGES AND UNEMPLOYMENT INSURANCEToC

House of Commons, May 19, 1909

The functions of Government in relation to industrial life may be divided into three categories—discipline, organisation, and relief. The control and regulation of industrial conditions by penal and disciplinary powers belong to the Home Office, the relieving and curative processes are entrusted to the Local Government Board, and the organisation of industry falls to the province of the Board of Trade. The proposals which I now submit to the House are concerned only with organisation; they can be judged only in relation to that section of the subject; they do not pretend to stretch beyond it, or to include other not less important aspects; and I ask that they shall not be impugned, because, in dealing with the evils which properly fall within that sphere, they do not extend to other evils that lie without it.I ask permission to introduce a Bill for the establishment of a national system of Labour Exchanges. There is high authority for this proposal. The Majority and Minority representatives of the Poor Law Commission, differing in so much else, are agreed unanimously in its support. "In the forefront of our proposals," says the Majority Report, "we place Labour Exchanges." "This National Labour Exchange," says the Minority Report, "though in itself no adequate remedy, is the foundation of all our proposals. It is, in our view, an indispensable condition of any real reform." The National Conference of Trade Union Delegates, convened by the Parliamentary Committee of the Trade Union Congress, of March 19, 1909, resolved unanimously: "That this Conference of Trade Union delegates, representing 1,400,000 members, approves of the establishment of Labour Exchanges on a national basis, under the control of the Board of Trade, provided that the managing board contains at least an equal proportion of employers and representatives of Trade Unions." The Central Unemployed Body for London, by a Resolution in June 1908, declared in favour of a national system of Labour Exchanges. Economists as divergent in opinion as Professor Ashley, of Birmingham, and Professor Chapman, of Manchester, have all approved and urged the project publicly in the strongest terms. Several of the principal members of the late Government have, either in evidence before the Poor Law Commission or in public speeches, expressed themselves in favour of Labour Exchanges, and the Report of the delegates of the Labour Party to Germany strongly approves of the system which they found there, namely: "the co-ordination and systematic management of Public Labour Exchanges."

The British authorities which I have mentioned are reinforced by the example of many foreign countries; and as early as 1904 the Board of Trade, in its reports on agencies and methods of dealing with unemployed in foreign countries, drew attention to the very considerable extension of Labour Exchanges in the last three years in Germany, Austria, Switzerland, France, and Belgium. Since then Norway has been added to the list. Mr. W. Bliss, in the Bulletin of the Washington Bureau of Labour for May, 1908, in the course of a survey of the whole field of unemployment and of possible remedies, says, "The most important agencies for providing work for the unemployed who are employable, but have no prospect of returning to their former positions, are the public employment bureaux. These are largely developed in a number of European countries, and especially in Germany, where they have grown rapidly in the last twenty years, both in numbers and in efficiency." So that the House will see that we have behind us this afternoon not only a practical consensus of opinion among authorities at home in favour of the policy, but the spectacle of its successful practice on an extensive scale, and over a period of years, in the greatest industrial community of the Continent, and its extension in various degrees to many other countries.

I do not, therefore, propose to occupy the time of the House with any elaborate justification of the merits of the Bill. Those we may discuss at our leisure later. I confine myself only to a few general observations. Two main defects in modern industrial conditions which were emphasised by the Royal Commission were the lack of mobility of labour and lack of information. With both of these defects the National System of Labour Exchanges is calculated to deal. Modern industry has become national. Fresh means of transport knit the country into one, as it was never knit before. Labour alone in its search for markets has not profited; the antiquated, wasteful, and demoralising method of personal application—that is to say, the hawking of labour—persists. Labour Exchanges will give labour for the first time a modernised market. Labour Exchanges, in the second place, will increase and will organise the mobility of labour. But let me point out that to increase the mobility of labour is not necessarily to increase the movement of labour. Labour Exchanges will not increase the movement of labour; they will only render that movement, when it has become necessary, more easy, more smooth, more painless, and less wasteful.

Labour Exchanges do not pretend to any large extent to create new employment. Their main function will be to organise the existing employment, and by organising the existing employment to reduce the friction and wastage, resulting from changes in employment and the movement of workers, to a minimum. By so doing they will necessarily raise the general economic standard of our industrial life.So far as the second defect, "lack of information," is concerned, a system of Labour Exchanges promises to be of the highest value. In proportion as they are used, they will give absolutely contemporary information upon the tendencies of the demand for labour, both in quality and in quantity, as between one trade and another, as between one season and another, as between one cycle and another, and as between one part of the country and another. They will tell the worker where to go for employment. They will tell him, what is scarcely less important, where it is useless to go in search of employment. Properly co-ordinated and connected with the employment bureaux of the various education authorities, which are now coming into existence in Scotland and in England, they will afford an increasing means of guiding the new generation into suitable, promising, and permanent employment, and will divert them from overstocked or declining industries. They will put an end to that portion of unemployment that is merely local or accidental in character. They are the only means of grappling with the evils of casual employment, with all its demoralising consequences. They are capable of aiding the process of dovetailing one seasonal trade into another. A system of Labour Exchanges, dispensing with the need for wandering in search of work, will make it possible, for the first time, to deal stringently with vagrancy. And, lastly, Labour Exchanges are indispensable to any system of Unemployment Insurance, as indeed to any other type of honourable assistance to the unemployed, since they alone can provide an adequate test of the desire for work and of the reality of unemployment. The authority of both Reports of the Poor Law Commission may be cited upon these points; and I shall present this Bill to the House as an important piece of social and industrial machinery, the need for which has long been apparent, and the want of which has been widely and painfully felt.

I said that in the creation of such a system we may profit by the example of Germany; we may do more, we may improve upon the example of Germany. The German Exchanges, though co-ordinated and encouraged to some extent by State and Imperial Governments, are mainly municipal in their scope. Starting here with practically a clear field and with the advantage of the experiment and the experience of other lands to guide us, we may begin upon a higher level and upon a larger scale. There is reason to believe that the utility of a system like Labour Exchanges, like utility of any other market, increases in proportion to its range and scope. We therefore propose, as a first principle, that our system shall be uniform and national in its character; and here, again, we are supported both by the Minority and by the Majority Reports of the Royal Commission.

A Departmental Committee at the Board of Trade has, during the last six months, been working out the scheme in close detail. The whole country will be divided into ten or twelve principal divisions, each with a Divisional Clearing House, and each under a Divisional Chief, all co-ordinated with the National Clearing House in London. Distributed among these 10 Divisions in towns of, let us say, 100,000 or upwards will be between 30 and 40 First-class Labour Exchanges; in towns of 50,000 to 100,000 between 40 and 50 Second-class Exchanges; and about 150 minor offices, consisting of Third-class Exchanges, Sub-Offices, and Waiting-rooms, which last will be specially used in connection with Dock decasualisation.The control and direction of the whole system will be under the Board of Trade. But in order to secure absolute impartiality as between the interests of capital and labour, Joint Advisory Committees, to contain in equal numbers representatives of employers and work-people, will be established in the principal centres. Thus we shall apply to the local management of Labour Exchanges the same principle of parity of representation between workmen and employers under impartial guidance and chairmanship, that we have adopted in the administration of the Trade Boards Bill, and that, mutatis mutandis, is the governing feature of the Courts of Arbitration which have recently been set up. If this Bill should obtain the assent of Parliament without undue delay, I should hope to bring the system into simultaneous operation over the whole country, so far as practicable, in the early months of next year. Temporary premises will be procured in all cases in the first instance; but a programme of building has been prepared, which in ten years will by a gradual process enable in all the principal centres these temporary premises to be replaced by permanent buildings.The expense of this system will no doubt be considerable. Its ordinary working will not need a sum less than about £170,000 per year, and during the period when the building is going on the expenditure will rise to about £200,000 per year.

We hope that the Labour Exchanges will become industrial centres in each town. We hope they will become the labour market. They may, where necessary, provide an office where the Trade Board, if there is one, will hold its meetings. We desire to co-operate with trade unions on cordial terms, while preserving strict impartiality between capital and labour in disputed matters. It may, for instance, be possible for trade unions to keep their vacant-book in some cases at the exchanges. The structure of those Exchanges may in some cases be such as to enable us to have rooms which can be let to trade unions at a rent, for benefit and other meetings, so as to avoid the necessity under which all but the strongest unions lie at the present time of conducting their meetings in licensed premises. The Exchanges may, as they develop, afford facilities for washing, clothes-mending, and for non-alcoholic refreshments to persons who are attending them. Separate provision will be made for men and for women, and for skilled and for unskilled labour. Boy labour will be dealt with in conjunction with the local Education Authorities; and travelling expenses may be advanced on loan, if the management of the Exchange think fit, to persons for whom situations have been found.

So much for the policy of Labour Exchanges. That is a policy complete in itself. It would be considerable if it stood alone; but it does not stand alone. As my right hon. friend the Chancellor of the Exchequer has announced in his Budget speech, the Government propose to associate with the policy of Labour Exchanges a system of Unemployment Insurance.

The House knows that the Minority Report advocates a system of compulsory labour exchanges, that no person shall engage any man for less than a month except through a Labour Exchange. That is not the proposal we are making. We are making a proposal of voluntary Labour Exchanges. I am quite ready to admit that no system of voluntary Labour Exchanges can deal adequately with the evils and difficulties of casual labour; but there is one conclusive reason against compulsory Labour Exchanges at the present time. To establish a system of compulsory Labour Exchanges in order to eliminate casual labour, and so to divide among a certain proportion of workers all available employment, would be absolutely and totally to cast out at the other end a surplus of unemployed: and to do this before preparations have been made for dealing with that surplus, would be to court an administrative breakdown which could not fail to be attended with the gravest possible disaster. Until poor law reform has made further progress, to establish a compulsory system of Labour Exchanges would only increase and not diminish the miseries with which we are seeking to cope.

We have, therefore, decided that our system of labour exchanges shall be voluntary in its character. For that very reason there is a great danger, to which I have never shut my eyes, that the highest ranks of labour, skilled workers, members of strong trade unions, would not think it necessary to use the Exchanges, but would use the very excellent apparatus which they have established themselves; that therefore this expensive system of Exchanges which we are calling into being would come to be used only by the poorest of the workers in the labour market, and, consequently, would gradually relapse and fall back into the purely distress machinery and non-economic machinery from which we are labouring to extricate and separate it. It is for that reason, quite apart from the merits of the scheme of unemployment insurance, that the Government are very anxious to associate with their system of Labour Exchanges a system of unemployed insurance. If Labour Exchanges depend for their effective initiation and establishment upon unemployment insurance being associated with them, it is equally true to say that no scheme of unemployment insurance can be worked except in conjunction with some apparatus for finding work and testing willingness to work, like Labour Exchanges. The two systems are complementary; they are man and wife; they mutually support and sustain each other.

So I come to Unemployment Insurance. It is not practicable at the present time to establish a universal system of unemployment insurance. We, therefore, have to choose at the very outset of this subject between insuring some workmen in all trades or all workmen in some. In the first case we should have a voluntary, and in the second a compulsory system. The risk of unemployment varies so much between one man and another owing to relative skill, character, demeanour, and other qualities, that any system of State-aided voluntary insurance is utilised mainly by those most liable to be unemployed, and, consequently, a preponderance of bad risks is established against the Insurance Office fatal to its financial stability. On the other hand, a compulsory system of insurance, which did not add to the contribution of the worker a substantial contribution from outside, would almost certainly break down, because of the refusal of the higher class of worker to assume, unsupported, a share of the burden of the weaker members of the community.

We have decided to adopt the second alternative, and our insurance system will, in consequence, be based upon four main principles. It will involve contributions from workmen and employers; it will receive a substantial subvention from the State; it will be organised by trades; it will be compulsory upon all—employers and employed, skilled and unskilled, unionists and non-unionists alike—within those trades. The hon. Member for Leicester[15] with great force showed that to confine a scheme of unemployment insurance merely to trade unionists would be trifling with the subject. It would only be aiding those who have, thank God, been most able to aid themselves, without at the same time assisting those who hitherto, under existing conditions, have not been able to make any effective provision.

To what trades ought we, as a beginning, to apply this system of compulsory contributory unemployment insurance? There is a group of trades specially marked out for the operation of such a policy. They are trades in which unemployment is not only high, but chronic, for even in the best of times it persists; in which it is not only high and chronic, but marked by seasonal and cyclical fluctuations, and in which, wherever and howsoever it occurs, it takes the form not of short time or of any of those devices for spreading wages and equalising or averaging risks, but of a total, absolute, periodical discharge of a certain proportion of the workers. The group of trades which we contemplate to be the subject of our scheme are these: house-building, and works of construction, engineering, machine-and tool-making, ship-building and boat-building, making of vehicles, and mill-sawing.

That is a very considerable group of industries. They comprise, probably at the present time, 2¼ millions of adult males. Two and a quarter millions of adult males are, roughly speaking, one-third of the population of these three kingdoms engaged in purely industrial work; that is to say, excluding commercial, professional, agricultural, and domestic occupations. Of the remaining two-thirds of the industrial population, nearly one-half are employed in the textile trades, in mining, on the railways, in the merchant marine, and in other trades, which either do not present the same features of unemployment which we see in these precarious trades, or which, by the adoption of short time or other arrangements, avoid the total discharge of a proportion of workmen from time to time. So that this group of trades to which we propose to apply the system of unemployment insurance, roughly speaking, covers very nearly half of the whole field of unemployment; and that half is, on the whole, perhaps the worse half.

The financial and actuarial basis of the scheme has been very carefully studied by the light of all available information. The report of the actuarial authorities whom I have consulted leaves me in no doubt that, even after all allowance has been made for the fact that unemployment may be more rife in the less organised and less highly skilled trades than in the trade unions who pay unemployment benefits—which is by no means certain—there is no doubt whatever that a financially sound scheme can be evolved which, in return for moderate contributions, will yield adequate benefits. I do not at this stage propose to offer any figures of contributions or benefits to the House. I confine myself to stating that we propose to aim at a scale of benefits which would be somewhat lower both in amount and in duration of payments, than that which the best-organised trade unions provide for their own members, but which, at the same time, should afford a substantial weekly payment extending over by far the greater part of the average period of unemployment of all unemployed persons in these trades.

In order to enable such a scale of benefits to be paid, we should have to raise a total sum of something between 5d. and 6d. per week per head, and this sum will be met by contributions, not necessarily equal, from the State, the workman, and the employer. For such sacrifices, which are certainly not extortionate, and which, fairly adjusted, will not hamper industry nor burden labour, nor cause an undue strain on public finance, we believe it possible to relieve a vast portion of our industrial population from a haunting and constant peril which gnaws the very heart of their prosperity and contentment.

The House will see the connection of this to the Labour Exchanges. The machinery of the insurance scheme has been closely studied, and, as at present advised, we should propose to follow the example of Germany in respect of Insurance Cards or Books, to which stamps will be affixed week by week. When a worker in an insured trade loses his employment, all he will have to do is to take his card to the Labour Exchange, which, working in conjunction with the Insurance Office, will find him a job or pay him his benefit.

The relation of the whole scheme of insurance to the present voluntary efforts of trade unions requires, and will receive, the most anxious consideration, and I am in hopes that we shall be able to make proposals which would absolutely safeguard trade unions from the unfair competition of a national insurance fund, and will indeed act as a powerful encouragement to voluntary organisations which are providing unemployed benefit.

I have thought it right to submit these not inconsiderable proposals in general outline to the House of Commons at this early stage, in order that the proposals for Labour Exchanges which we are now putting forward may be properly understood, and may not be underrated or misjudged. We cannot bring the system of unemployment insurance before Parliament in a legislative form this year for five reasons: We have not now got the time; we have not yet got the money; the finance of such a system has to be adjusted and co-ordinated with the finance of the other insurance schemes upon which the Chancellor of the Exchequer is engaged; the establishment of a system of Labour Exchanges is the necessary forerunner and foundation of a system of insurance; and, lastly, no such novel departure as unemployment insurance could possibly be taken without much further consultation and negotiation with the trade unions and employers specially concerned than the conditions of secrecy under which we have been working have yet allowed. This business of conference and consultation of the fullest character will occupy the winter, when the Board of Trade will confer with all parties affected, so that the greatest measure of agreement may be secured for our proposals when they are next year presented in their final form.

It is only necessary for me to add that the pressure and prospect of these heavy duties have required me to make a re-arrangement of the Labour Department of the Board of Trade. I propose to divide it into three sections. The first will be concerned with Wages questions and Trade disputes, with Arbitration, Conciliation, and with the working of the Trade Boards Bill, should it become law; the second, with Statistics, the Census of Production, Special Inquiries, and The Labour Gazette; and the third, with Labour Exchanges and Unemployment Insurance.

One of the functions of the last section will be to act as a kind of intelligence bureau, watching the continual changes of the labour market here and abroad, and suggesting any measure which may be practicable, such as co-ordination and distribution of Government contracts and municipal work, so as to act as a counterpoise to the movement of the ordinary labour market, and it will also, we trust, be able to conduct examinations of schemes of public utility, so that such schemes can, if decided upon by the Government and the Treasury, be set on foot at any time with knowledge and forethought, instead of the haphazard, hand-to-mouth manner with which we try to deal with these emergencies at the present time.

Such are the proposals which we submit in regard to the organisation section of this problem. I have carefully confined myself to that section. I have not trespassed at all upon the other no less important or scarcely less important branches, and I am quite certain this Parliament will gladly devote whatever strength it possesses to attempting to grapple with these hideous problems of social chaos, which are marring the contentment and honour of our country, and which, neglected, may fatally affect its life and its strength.

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FOOTNOTES:

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talk to strangers."

Flossie looked back to where her father and mother were sitting. Mrs. Bobbsey was speaking to one of the ladies who had come in the car with the noisy children.

"Are you taking part of an orphan asylum on an outing?" Flossie heard her mother ask.

"No. These are some 'fresh air' children. They have been out in the country for two weeks, and now we are taking them home. Poor things! I wish we could have kept them longer out in the green fields and woods, but there are others waiting for their chance to go.

"You see," she went on, and Flossie and Freddie listened carefully, "some kind people give us money so that the poor children of the city may have a little time in the country during the hot weather. We board them out at different farmers' houses. This company of children has been on two different farms near Branchville, where we just got on the train. Some of the little ones are from Sanderville." This was a large city not far from Lakeport, a smaller city where the Bobbsey twins lived. "Others are from Lakeport," went on the lady, speaking to Mrs. Bobbsey.

"Indeed!" exclaimed Freddie's mother. "I did not know there was a fresh air society in our city."

"It has only just been formed," said the lady, who was a Miss Carter. "We haven't much money left, I'm sorry to say."

"Then you must let me give you some," said Mr. Bobbsey. "And I will get some friends of mine to give money also. Our own children enjoy it so much in the country that I want to see others have a good time, too."

Then he and Mrs. Bobbsey began to talk about ways of helping poor children, and Flossie and Freddie did not listen any more. Besides, just then the train was passing along a field in which were many horses, some of which raced alongside the cars, and that interested the twins.

"Oh, look at 'em run!" cried the fresh air boy who sat in front of the smaller Bobbsey twins. "Don't they go fast?"

The other fresh air youngsters crowded to their windows to look out, and some tried to push their companions away so they might see better. Then a number all wanted a drink of water at the same time, and the two ladies who were in charge of the children were kept busy making them settle down.

The quiet, neat boy about whom Flossie had whispered to her brother, turned around in his seat and, looking at Freddie, asked:

"Were you ever on a farm?"

"Yes," answered Freddie, "we just came from our uncle Dan's farm, at Meadow Brook. We were there 'most all Summer. Now we're going back home."

"Where do you live, and what's your name?" asked the strange boy.

"My name's Freddie Bobbsey, and this is my sister Flossie," was the answer. "We're twins. Up there, in that other seat, are my brother and sister, Bert and Nan. They're twins too, but they're older'n we are. We live in Lakeport."

"You do?" cried the boy in surprise. "Why, that's where I live! My name is Tommy Todd."

"That's a nice name," put in Flossie politely. "I don't know any one of that name in Lakeport though. Where does your father live?"

Tommy Todd did not answer at once, and Freddie was surprised to see tears in the eyes of the strange boy.

"I—I guess you folks don't ever come down to our part of Lakeport," he said. "We live down near the dumps. It isn't very nice there."

Freddie had heard of the "dumps." It was on the farther side of the city, a long distance from his nice home. Once, when he was very little, he had wandered away and been lost. A policeman who found him had said Freddie was near the "dumps."

Freddie remembered that very well. Afterward, he heard that the "dumps" was a place where the ashes, tin cans, and other things that people threw away were dumped by the scavengers. So Freddie was sure it could not be a very nice place.

"I live out near the dumps, with my grandmother," went on Tommy Todd.

"We've a grandmother too," said Flossie. "We go to see her at Christmas. We've two grandmas. One is my mother's mother, and the other is my father's mother. That's my papa and my mother back there," and Flossie pointed to where Mr. and Mrs. Bobbsey were talking to the fresh air lady.

"Doesn't your father live with you and your grandmother?" asked Freddie.

"I—I haven't any father," said Tommy, and once more the tears came into his eyes. "He was lost at sea. He was a captain on a ship, and it was wrecked."

"Oh, please tell us about it!" begged Freddie. "I just love stories about the ocean; don't you, Flossie?"

"Yes, I do."

"I'm going to be a sea captain when I grow up," said Freddie. "Tell us about your father, Tommy."

So while the train rushed on Tommy Todd told his sad little story.

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kless and foolhardy experiment. I see the miner emerging from the pit after eight hours' work with the assertion on his lips that he, at any rate, has paid his daily debt to his fellow men. Is the House of Commons now going to say to him, "You have no right to be here. You have only worked eight hours. Your appearance on the surface of the earth after eight hours' work is, to quote the hon. Member, 'a reckless and foolhardy experiment'"? I do not wonder at the miners' demand. I cannot find it in my heart to feel the slightest surprise, or indignation, or mental disturbance at it. My capacity for wonder is entirely absorbed, not by the miners' demand, but by the gentleman in the silk hat and white waistcoat who has the composure and the complacency to deny that demand and dispute it with him.

The hon. Member for Dulwich[11]—himself a convinced protectionist, with a tariff with 1,200 articles in its schedules in his coat-tail pocket—has given us a delightful lecture on the importance of cheapness of production. Think of the poor consumer! Think of the importance to our industries of cheapness of production! We on this side are great admirers of cheapness of production. We have reminded the hon. gentleman of it often; but why should cheapness of production always be achieved at the expense of the human factor? The hon. gentleman spoke with anxiety of the possibility of a rise in miners' wages as a consequence of this Bill. Has he considered the relation of miners' wages to the selling prices of coal? At the pit's mouth the underground-workers' wages are only 60 per cent. of the selling price of coal. Free on board on the Tyne, the proportion is only 38 per cent. As coal is sold here in the south of England the proportion of wages is less than one-fifth of the whole price. Is it not clear that there are other factors at least which require consideration before you decide to deal with the human factor, which first attracts the attention of the hon. gentleman?

What about mining royalties? In all this talk about the importance of cheap coal to our industries and to the poor consumer we have had no mention of mining royalties. No. We never mention that. Yet, will the House believe it, it is estimated that mining royalties impose a toll of 6 per cent., calculated on the price of coal at the pit's mouth, or considerably more than half the total diminished production which could result from this humane Act of labour legislation.

But we are asked: "Why stop here? Why don't your arguments apply elsewhere?" and we are told of people whose conditions of life are worse than some of those of coal-miners. Why stop here? Who ever said we would stop here? I welcome and support this measure, not only for its own sake, but much more because it is, I believe, simply the precursor of the general movement which is in progress all over the world, and in other industries besides this, towards reconciling the conditions of labour with the well-ascertained laws of science and health. If we are told that because we support this measure we shall be inflicting an injury or injustice on other classes of the population, I say there is a great solidarity among all classes of manual labourers. I believe that when they consider this matter they will see that all legitimate interests are in harmony, that no one class can obtain permanent advantage by undue strain on another, and that in the end their turn will come for shorter hours, and will come the sooner because they have aided others to obtain that which they desire themselves.

When the House is asked to contemplate gloomy pictures of what will follow on this Bill, let them recur to the example of Parliaments gone by. When the Ten Hours Bill was introduced in 1847, a Bill which affected the hours of adult males inferentially, the same lugubrious prophecies were indulged in from both sides of the House. Distinguished economists came forward to prove that the whole profit of the textile industry was reaped after the eleventh hour. Famous statesmen on both sides spoke strongly against the measure. The Parliament, in 1847, was in the same sort of position as we are to-day in this respect, but how differently circumstanced in other respects. That Parliament did not enjoy the wide and accurate statistical information in every branch of labour which enables us to-day to move forward with discretion and prudence. They were not able to look to the general evidences of commercial security and expansion on which modern politicians can rely. They could not show, as we can show, overwhelming examples of owlish prophets dazzlingly disproved; they could not point, as we can point, to scores of cases where not only increased efficiency, but a positive increase in output has followed the reduction of the hours of labour. The principle was new, the future was vague. But the Parliament of those days did not quail. They trusted to broad, generous instincts of common sense; they drew a good, bold line; and we to-day enjoy in a more gentle, more humane, more skilful, more sober, and more civilised population the blessings which have followed their acts. Now it is our turn. Let us vote for the Second Reading of this Bill, and in so doing establish a claim upon the respect of Parliaments to come, such as we ourselves owe to Parliaments of the past.[12]

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FOOTNOTES:

[10] Mr. J.F. Mason.