CHAPTER XVIII ECONOMY

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When I consider life, ’tis all a cheat;
Yet, fool’d with hope, men favour the deceit;
Trust on and think to-morrow will repay.
To-morrow’s falser than the former day;
Lies worse; and while it says we shall be blessed
With some new joys, cuts off what we possest.
Strange cozenage! none would live past years again;
Yet all hope pleasure in what yet remain;
And from the dregs of life think to receive
What the first sprightly running could not give.
Dryden, Aurung-Zebe.

THE position of a Minister who has withdrawn from a Cabinet is always difficult and peculiar. If for the sake of some principle which he considers vital he is prepared openly to attempt to wreck the Government and inflict upon the party a defeat at the polls, and if the issue is one which must soon be decided, the course, however painful, is plain. He has only to drive steadfastly on through the storm, like Lord Salisbury in 1867 or Lord Hartington in 1886, careless of consequences so long as he does his duty, disdainful of the anger of friends, if he holds them mistaken, and looking for vindication to the calm, just judgments of the after-time. But if the question on which he has separated from his colleagues is not paramount or urgent, and if, while differing strongly from the Government, he is yet determined not to injure the party from which that Government is drawn, his position becomes impossible. The more powerful he has been, the more powerless he becomes; the higher his office, the greater his fall.

From his place in Parliament he is bound, in common-sense and consistency, to uphold and justify his immediate contention. It may be economy; it may be Free Trade. Whenever that subject is raised he must be in his place, alike for his own defence and for the sake of his cause, to show that there was good reason for his action and that the public interest was at stake. If he feels strongly, he will speak strongly. Convictions harden and grow, and differences magnify and ossify as the controversy progresses. His party and his former colleagues are embarrassed by his proceedings, however legitimate or honest they may admit them to be. The more effective his advocacy, and weighty his charges, the more they are resented. The Opposition are naturally pleased. They take from the ex-Minister’s statements whatever they may consider useful to themselves and they employ his phrases and arguments to belabour in the House and in the country the party and the Government they are seeking to overthrow. Thus assailed, the Ministerial press and the party machine—with all its scribes, agents, orators and small fry—retaliate after their kind. In a hundred newspapers, from a hundred platforms, hitherto voluble in his praise, the ex-Minister becomes the object of depreciation and censure, expressed in varying degrees of vulgar and untruthful imputation. And all the while, since he will not declare general war upon his party, he is prevented from defeating calumny by vigorous action or answering malice by attack.

When Lord Randolph Churchill pressed his charges of extravagance and inefficiency against the public departments, the party which happened to be responsible at the time were themselves offended. When the ex-Chancellor of the Exchequer urged the need of economy and spoke his mind, in all courteous moderation, upon the financial policy of his successor, the Government Whips whispered that it was only his jealousy and spite. If, on the other hand, he had remained silent, the judgment of the nation on the great question for which he had sacrificed so much would have gone by default. To do nothing was to abandon his cause; to move was to quarrel with his party.

These embarrassments are only aggravated when the resigning Minister has been exercising in the Cabinet a general authority over the whole field of policy. As Leader of the House of Commons Lord Randolph had become acquainted with almost every question which was likely at that time to come before Parliament. On many of these he had formed strong views of his own. He knew exactly how he had intended to handle them when they became subjects of debate. When therefore he heard them mishandled, or a course adopted at variance with Cabinet decisions he had previously obtained, it was natural that he should wish to criticise or demur. Such conditions pointed inevitably, if the tension were prolonged, to a total rupture between the most patient ex-Minister and the most generous Government; and Lord Randolph was not the most patient of men, nor the Government the most generous of Governments.

Looking back on the circumstances and events of those years in the light of after-knowledge, there may be some who will find it easy to say what Lord Randolph should have done after his resignation. He should have stated the whole grounds of his difference with the Tory Cabinet, minimising nothing, keeping nothing back. In two or three speeches in Parliament and in the country he should broadly have outlined his general political conception of the course the Conservative party should follow, and then, unless he was prepared to wage relentless war upon the Government for the purpose of compelling them to adopt that course, he should forthwith have withdrawn himself entirely from public life. Leaving his party in the place of power to which he had raised them, with all the glamour of three years of cumulative and unexampled success still untarnished, he might well have been content to stand for a season apart from the floundering progress of the Administration, leaving to others to muddle away the majority he had made. And he could have counted, not without reason, upon the continued affection of the Conservative working classes. The party press would have been silent or even conciliatory. The relentless irritation of the machine would have been prevented. As the years passed by and the discredit of the Government increased, the Tory Democracy would have turned again to the lost leader by whom the victories of the past had been won.

Lord Randolph Churchill chose otherwise. He did not lay deep or long plans. His nature prompted him to speak as he felt, and to deal with the incident of the hour as it occurred. He was solemnly in earnest about economy and departmental mismanagement. He wanted to curb expenditure; and, while at that business, he was not at all concerned with his ‘prestige’ or his ‘career.’ Deeply injurious to himself and to his influence with the Conservative party as his course ultimately proved, it was at any rate perfectly simple and straightforward. He returned to England at the end of March, and plunged at once into the vortex of politics. In three speeches which he delivered during the month of April to public audiences at Paddington (where he defended particularly his resignation), at Birmingham, and at Nottingham, he made clear what his attitude towards Lord Salisbury’s Government would be. He was entirely independent of that Government. He had resigned from it on important grounds of difference. He desired a liberal and progressive policy in domestic affairs, and he was determined to wage war on extravagance and expenditure. But in the main lines of their policy he was a supporter of the Government; and to the cause of the Union, as to the large and permanent interests of the Conservative party, he remained perfectly loyal. From these intentions he never in any degree varied or departed in the years that followed. ‘You are quite right,’ he wrote to FitzGibbon (November 5, 1887), ‘in supposing that mere returning to office has never been in my mind. I fight for a policy and not for place; and when I go back to office (if ever) I shall have secured my policy.’ A Tory Democratic policy could only be furthered from within the Conservative party, and to that party he faithfully adhered. Besides Mr. Jennings, Lord Randolph had two good friends among the younger men in the House of Commons—his brother-in-law, Lord Curzon, and Mr. Ernest Beckett, the member for Whitby. These gentlemen stood by him, worked with him, and rendered him many political services in the years that followed his resignation, for which they were not extravagantly beloved in the high places of their party.

With these three exceptions the late Leader of the House of Commons was entirely alone. To do him justice he made no effort to increase his following and discouraged several who would have willingly worked with him. Profoundly as he disagreed with much that the Government did, and disliked the temper that inspired it, fiercely as he resented the Lobby slanders and the steady detraction of the party press, never in the five years that followed—the last five years, as they were fated to be, of his physical strength—did he contemplate alliance of any sort with the Liberal party or seek to cause cave, clique or faction in the Conservative ranks.

The introduction of the Budget on April 21 afforded Lord Randolph his first opportunity of opening his ‘economy’ campaign. Mr. Goschen’s ingenious Budget differed widely from the ambitious proposals of his predecessor. The reductions in the Estimates for which Lord Randolph had fought were, indeed, maintained—and even increased. The result was a surplus of 776,000l. This Mr. Goschen now increased by an addition to the stamp duties, yielding 100,000l., and by a reduction of the Sinking Fund and Debt Charge from 28 millions to 26 millions. The total sum, amounting in the balance to a surplus of 2,779,000l., was to be expended in taking a penny off the income-tax, at a cost of 1,560,000l.; in reducing the duties on tobacco by 600,000l.; and by granting 330,000l. in aid of the local rates, leaving a final estimated surplus of 289,000l.

The Budget was, on the whole, applauded. The Conservative party, whose consciences were a little uneasy on financial questions, were delighted. The very questionable resort to the Sinking Fund—not for any special emergency nor general scheme of fiscal revision, but simply for the purpose of courting popularity by inconsiderable reductions of taxation—was sustained by Mr. Goschen’s financial record. ‘Great,’ exclaimed Lord Randolph Churchill, ‘is the worldly worth of a reputation!’ In complete good-humour, albeit with a sharp edge, he rallied the Chancellor of the Exchequer—‘the canonised saint of the financial purists’—on his lapse from the austere principles he had formerly professed; and both on the night of the Budget’s introduction and four days later when he spoke next after Mr. Gladstone, he addressed to the Government and to the Conservative party earnest counsels of retrenchment and departmental reform. He added:—

It is not necessary to touch the Sinking Fund. The Chancellor of the Exchequer has ample resources at his disposal. If he leaves the Sinking Fund alone, and remits a penny of the income-tax, he will still have a balance of 400,000l. If he does not reduce the income-tax, and prefers to take off the tobacco duty, he will have a balance of 800,000l. If he touches neither of these, and relieves the rates, he will have a balance of 300,000l. He can do any of these things if he will only leave the Sinking Fund alone; and he is touching it for a purpose so paltry and frivolous that I fail to understand why it entered his mind. I pray the Chancellor of the Exchequer to believe that I only make these remarks because of my intense and earnest desire that the present Government—whose career, I hope, is going to be a long one—may enter upon the paths of financial stability.

On this Mr. Gladstone enters in his diary: ‘R. Churchill excellent.’

The Parliamentary Committee on Army and Navy Estimates, for which Lord Randolph had asked at the beginning of the year, had been promised by the Government in reply to a question, put during his absence, by Lord Curzon. But weeks and even months were allowed to slip by without the necessary motion being made. When at length it was put on the paper it was immediately blocked; and thus it would have probably remained. But one day, when the first business happened to be the vote for the decoration of Westminster Abbey, Lord Randolph asked abruptly if the Government really meant to say that they considered the decoration of Westminster Abbey more important than a Parliamentary inquiry into the naval and military expenditure. After this the motion was put down at a reasonable hour, and it passed by general consent. On May 14 Mr. Smith wrote:—

10 Downing Street, Whitehall: May 14, 1887.

My dear R. C.,—Before we proceed to nominate the Committee on Army and Navy Estimates I should be glad to know if you would take a leading place upon it.

I cannot, of course, nominate the Chairman; but, so far as I am concerned, I should be very glad indeed if you would take the Chair, and I should say so to my friends, as I have complete confidence that your influence would be exercised with absolute impartiality and for the good of the public service.

Believe me
Yours very sincerely,
W. H. Smith.

Lord Randolph replied at once in the affirmative; but the delay in nominating the members continued, and his patience broke again:—

2 Connaught Place, W.: May 24, 1887.

My dear Smith,—I must ask you to excuse me from having the honour of dining with you to-night. The dinner is, of course, an official one, and the names of the guests will be in the papers, and it will be assumed by the public that those who dine with the Leader of the House are thoroughly satisfied with the policy and conduct of the Government.

As far as I am concerned such an assumption would be entirely unfounded. I have watched a great deal in the action of the Government which I deplore more than I can say; but I cannot pass over without notice your neglect to nominate the Army and Navy Estimates Committee last night, or rather this morning, and your postponing of that most important matter till after Whitsuntide. The delay in appointing that Committee is scandalous and inexcusable. It might long ago have commenced its work had the Government been in earnest about the matter; but last night you gave me a positive promise that you would nominate it without further delay, and, relying on that, I spent the evening till 12.30 in examination of the Estimates with two other gentlemen, and, being then very tired, did not return to the House. I dare say you are all right in thinking that you can afford to indulge in this kind of treatment of one of your supporters, but you cannot expect me to show publicly pleasure or satisfaction. Hodie tibi, cras mihi.

Yours very truly,
Randolph S. Churchill.

Smith replied softly:—

3 Grosvenor Place, London, S.W.: May 24, 1887.

My Dear R. C.,—I am very sorry you do not dine with me this evening, and still more for the cause.

At half-past five this morning I moved that the Committee be nominated, but I was met by cries from the other side of the House that it was opposed, and by murmurs from our own benches, and I felt it was impossible to proceed further at that hour with a jaded and heated house.

I am sure you would have done as I did if you had been in my place.

Yours very sincerely,
W. H. Smith.

But the Committee was appointed without further delay.

Meanwhile Lord Randolph had been industriously preparing his general indictment of War Office and Admiralty maladministration. To the intricate and detailed information which he had acquired at the Treasury, he added a mass of material accumulated with the greatest care and trouble by Mr. Jennings and amplified and checked by various expert authorities, with whom he was in communication. Basing himself on this and on the papers presented to Parliament he formulated his charges at Wolverhampton on June 3. He seems to have believed sincerely that it would be possible for him to effect a large reduction in the cost of government. He recalled to his mind the fact that the Government of 1860 was determined on a retrenchment policy, and the Army and Navy Estimates were in five years reduced from 27½ millions to 22½ millions; and that whereas in 1868 the estimates were 25 millions, by 1871 they had been reduced to 21 millions. Such examples may prove the possibility of retrenchment, but they were the achievements of a giant Minister working year by year from inside the Cabinet, and using the whole leverage of the great department over which he presided; and we have since learned from Mr. Morley’s pages that even in Liberal Cabinets elected on the famous watchwords of ‘Peace, Retrenchment and Reform’ Mr. Gladstone had to fight for his economies at the constant peril of his official life.

It is instructive to study the course of an agitation for naval and military economy directed by anyone outside the circle of the Government of the day and without the aid of the machinery of State. It may begin in all undivided earnestness in a simple demand for a reduction of expenditure. The Government and its official advisers will reply that they, too, are the zealous advocates of such a policy, if only they can be shown how to effect it; and they invite suggestions of a specific character. That is the first stage. Thus challenged, the economist leaves for the moment the enunciation of great principles of finance and national policy and descends to grapple with masses of technical details. He discovers a quantity of muddles and jobs, and arrays imposing instances of waste and inefficiency. His statements are, of course, contradicted, and his charges are wrangled over seriatim. Expert is set against expert, and assertion against assertion. The reformer is accused—not, generally, without some justice—of exaggeration; and he is in part and in detail inevitably betrayed into inaccuracy. But in the issue enough is proved to awaken public anxiety and even indignation. Certain main facts of discreditable and disquieting character are clearly established. Many weaknesses, neglects, incompetencies are revealed. There are guns without ammunition. There are fortresses without provisions. There are regiments without reserves. There are ships imperfectly constructed. There are weapons which are obsolete or bad. But in the process of the controversy the movement has been insensibly and irresistibly deflected from its original object. It began in a cry for economy; it has become a cry for efficiency. That is the second stage. The Government and their official advisers at the proper moment now shift their ground with an adroitness born of past experience. They admit the damaging facts which can no longer be denied. The politicians explain that they arise from the neglect or incapacity of their predecessors. They recognise the public demand for more perfect instruments of war. They declare that they will not flinch from their plain duty (whatever others may have done); they will repair the deficiencies which clearly exist; they will correct the abuses which have been exposed; and in due course they will send in the bill to the Chancellor of the Exchequer. So that the third stage of an unofficial agitation in favour of a reduction of expenditure and a more modest establishment becomes an agitation in favour of an increase of expenditure and a more lavish establishment.

All this happened exactly in the case of Lord Randolph Churchill. In his earlier speeches since his resignation he had confined himself to the need of retrenchment, and this had been the ground on which he had fought in the Cabinet. But at Wolverhampton he sought to show that, in spite of the great and increasing expenditure, the services were in a wholly unsatisfactory and even dangerous condition. And in this he was beyond all question brilliantly successful. In a fierce speech of an hour and forty minutes he unfolded a comprehensive catalogue of follies. His audience, consisting of about 4,000 persons—mainly Conservative working men—at first doubtful and apathetic, were gradually raised, as the newspaper reports testify, to a state of indignation. With a display of feeling unusual even at a partisan meeting, and still more remarkable when the currents of ordinary partisanship were running against the speaker, they interrupted him repeatedly with cries of anger, and he ended amid a perfect tumult of assent.

It is not necessary to this account to examine the details of his charges. Each generation has its own jobs and scandals to confront. The administrative follies of 1887 have passed away. Some survived, to be dwarfed by more astonishing successors; others were corrected, but not extirpated. All have produced a prosperous progeny, nourished in richer pastures, and attaining proportions of which their ancestors could hardly have dreamed. The main outlines of the indictment must, however, be placed on record. The condition of the British Army and Navy in the year 1887 was, in sober truth, a serious public danger. Mr. Gladstone’s Government of 1880 had had, during their tenure of office, to deal with all kinds of military and Colonial enterprises for the effective execution of which a Liberal Administration is not naturally fitted. They detested their work heartily; they executed it very badly. In truth the Cabinet, distracted by the violence of Egyptian and Irish affairs and the gravity of the Eastern situation, torn by the increasing demands of Radicalism, and harassed by a relentless Opposition, was incapable of giving to naval and military matters adequate consideration. There had followed upon all this the two years of political revolution with which this story has been largely concerned. It was natural, it was inevitable, that in the interval which had elapsed since the great Army Reform Parliament of 1868 much waste and inefficiency should have crept into the military system; and in the same period, from considerations altogether outside the course of British politics, an enormous extension and complexity had affected the responsibilities and functions of the Navy.

Lord Randolph alleged in respect of the Army that not a single fortress was properly armed; that no reserve of heavy guns existed; that the artillery, both horse and field, was obsolete; that the rifle of the infantry was defective; that the swords and bayonets broke and bent under the required tests; and that, notwithstanding these deficiencies, the cost of the land service had increased in twelve years by over four millions a year. He charged the Admiralty with such waste as exporting Australian tinned meat to Australia, rum and sugar to Jamaica, flour to Hong Kong, and rice to India; with making improvident contracts for ships, engines, and materials of various kinds; with disarming the Spithead and Portsmouth forts in order to arm warships. He asserted that the whole of the 43-ton guns designed by the Ordnance Department, on which 200,000l. had been spent, were worthless and liable to burst even with reduced charges; that the Ordnance officials had been told beforehand by the principal experts of Messrs. Armstrong that this type of gun was imperfect; that they persisted in making them; that one of the guns had already burst; that the others had been condemned; but that they were nevertheless to be employed on her Majesty’s ships. The most serious count, however, dealt with various classes of ships which had in important particulars failed to realise the expectations of the designers and were in consequence unfit for active service.

He instanced especially the Ajax and the Agamemnon, the battleships of the Admiral class and the Australia class of cruisers. Of the armoured cruiser ImpÉrieuse he declared that she drew four feet more water than was expected, with the result that the armour which should have been above water was now below water, and in consequence the ship was actually unprotected. ‘The result of all this is that in the last twelve or thirteen years eighteen ships have been either completed or designed by the Admiralty to fulfil certain purposes, and on the strength of the Admiralty statements Parliament has faithfully voted ... about ten millions, and it is now discovered and officially acknowledged that in respect of the purposes for which these ships were designed, the whole of the money has been absolutely misapplied, utterly wasted and thrown away.’ The foundation for this somewhat sweeping statement was supplied by the explanatory memorandum to the Navy Estimates, 1887. ‘In one important particular,’ so this document affirmed, ‘there is a discrepancy between ... the original design and its result which, in the case of the ImpÉrieuse and her sister ship the Warspite, attracted some attention, and which is likely to recur in the case of the belted cruisers, seven in number, the Warspite and the armoured vessels of the Admiral class.... If the whole of the 900 tons [of coal] ... be placed on board [the ImpÉrieuse] the top of the belt will, on the ship’s first going to sea, be six inches below the water.’

The Wolverhampton speech made a considerable stir. In spite of the pressure of Irish affairs and the general instability of the political situation, it was for some days the principal topic of public discussion. The powerful interests assailed, retorted at once, and the newspapers were filled with censure and contradiction. Even those which, like the Times, were forced to acknowledge Lord Randolph Churchill ‘right in his main contention,’ rebuked him ponderously for extravagance of statement and violence of language. His strictures on naval construction brought Sir Nathaniel Barnaby, the late chief constructor to the Admiralty—to whom Lord Randolph had personally alluded—into voluminous protest in the columns of the Times, and an acrimonious correspondence ensued. Sir Nathaniel denied that he had been ‘dismissed’ from his post and pointed in disproof to his having been made a Knight Commander of the Bath. Lord Randolph replied acidly ‘that K.C.B.’s and official testimonials were the usual manner in which the country requited long service when the intentions had been honest, no matter how deplorably defective might have been the capacity’; and expressed himself willing to substitute the phrase ‘allowed to retire’ for the word ‘dismissed.’ On the main question Sir Nathaniel appealed to Lord George Hamilton; and Lord Randolph brought up Sir Edward Reed, a rival constructor of great repute, who confirmed and even aggravated most of his statements. Both parties fell back upon official records, memoranda and Blue Books; and a battle royal developed, around the outskirts of which naval authorities of every rank and description cruised, seeking to intervene, on the one side or the other, with masses of highly technical information couched in highly controversial terms.

Lord Randolph’s contention that the Ajax and the Agamemnon were failures was not seriously disputed, Sir Nathaniel Barnaby himself admitting (Times, June 7) that he was ‘thankful they were the only approximately circular and shallow sea-going ships we built.’ The fiercest strife raged around the cruiser ImpÉrieuse. Sir Nathaniel Barnaby met the assertion that the money spent upon her was ‘absolutely misapplied, utterly wasted and thrown away,’ by quoting a later Admiralty memorandum which declared her to be, ‘if not actually the most powerful, one of the most powerful ironclad cruisers afloat of her tonnage.’ But Sir Edward Reed was able to show that this was not extravagant eulogy, for that there was only one other ‘ironclad cruiser of her tonnage’ in existence. He also showed that, to lighten her, she had already been deprived of her masts and consequently of her intended sailing powers; and that even so, to bring her to her intended draught, it was necessary to take out the whole of her coal. When the smoke had at length a little lifted, it was generally held that, although Lord Randolph Churchill’s charges were sustained on almost every substantial point, he had injured his case by over-stating it. Full marks were also awarded to the ‘distinguished ex-public servant cruelly assailed in his professional character.’

Lord Randolph Churchill was duly elected Chairman of the Army and Navy Committee. Mr. Jennings, who was also a member, laboured indefatigably to collect, sift and arrange material. The Committee met without delay, and collected much valuable and startling evidence. They discovered, for instance, that one branch of the War Office cost 5,000l. a year in supervising an expenditure of 250l. a year. ‘Would it have been possible,’ the Accountant-General was asked, ‘for any private member to have ascertained from the Estimates laid before Parliament from 1870 to the present year that the total increase of net ordinary Army expenditure amounted to almost nine millions of money?—A. ‘It would have been extremely difficult.’ Q. ’ ...or that since 1875 there had been an increase of about five millions?’—A. ‘I do not think it would.’ ‘Up to now,’ Lord Randolph suggested, ‘Parliament has never had the smallest idea of what was the total cost of the services?’—‘Taking the whole of the services,’ replied Mr. Knox, ‘it has not.’ It would be easy to multiply these specimens of the evidence collected by the Select Committee. Day by day, as it was published, it was commented on by the press, and public and Parliamentary scrutiny was increasingly directed towards the Estimates of the two services.

Here is a note which it is pleasant to transcribe:—

One odd effect of your Committee: [wrote Jennings July 27]. Bradlaugh came to me this afternoon—said he had been reading the evidence—was immensely struck with it—thought you had done enormous service already. I told him a little more about it. He said: ‘He has done so much good that I really think I must close up my account against him.’ ‘Well, surely,’ I said, ‘there is no use in keeping it open any longer. It only looks like vindictiveness.’ ‘Yes,’ he said, ‘I think I will close the ledger.’

It will be convenient to follow Lord Randolph’s economy campaign to its conclusion. As it gradually became directed to efficiency rather than simple economy it enlisted an increasing measure of professional support. By May 1888, public opinion had become so vigilant that, following upon some outspoken and not very temperate statements by Lord Wolseley, then Adjutant-General, the Government determined—momentous resolve!—to appoint a Royal Commission with Lord Hartington at its head. Mr. Smith invited Lord Randolph Churchill to join it:—

10 Downing Street, Whitehall: May 18, 1888.

My dear R. C.,—You will render great service to the administrative reform of the two great departments if you will join the Royal Commission over which Lord Hartington will preside.

Mr. Gladstone has asked Mr. Campbell-Bannerman to represent the Opposition; I am to go on, on behalf of the Government; and you would represent those who believe that efficiency and economy may result from a change of system. General Brackenbury will join as a soldier, and Sir F. Richards, who has just returned from sea, as the sailor. Two civilians with extensive knowledge of large business transactions are to be added, and Sir Richard Temple will also be asked as a capable and successful Indian Administrator. These are the people with whom you would be associated in the effort to improve our system, and I hope most sincerely that you will not refuse your help.

Believe me
Yours very truly,
W. H. Smith.

I enclose a copy of the reference.

‘To inquire into the civil and professional administration of the Naval and Military Departments and the relation of those Departments to each other and to the Treasury; and to report what changes in their existing system would tend to the efficiency and the economy of the Public Service.’

Lord Randolph, however, knowing a good deal of the ways of such bodies, declined. He was persuaded by Lord Hartington, who wrote:—

HÔtel du Rhin, 4 Place VendÔme: May 26, 1888.

My dear Churchill,—Smith has sent me your letter declining to serve on the Army and Navy Commission. I hope very much that if you have not absolutely made up your mind you may be induced to reconsider your decision, as we are both very anxious to have your assistance.

I think that your Committee has taken some very valuable evidence which shows the inefficiency and defects of the present system. But I should doubt whether you will effect much more by the examination of minor officials or by investigating the details of the separate votes; and I should think it might be possible for you to leave the inquiry to be finished by some one else. My own opinion is that we shall never get either efficiency or economy until we can find some way of giving the professional men more power and at the same time more responsibility; but how this can be done in combination with our Parliamentary system is a very difficult problem which requires bold and original treatment.

If we cannot suggest a more efficient and intelligent system of superior administration, I think that we shall do very little good by exposing details of maladministration in minor matters; and as the subject-matter of our inquiry is to be the real centre of the whole question of administrative reform, I cannot help thinking that you would find our inquiry more interesting and important than any which you can take up or continue on other branches of the same question.

I remain
Yours sincerely,
Hartington.

The Commission appointed on June 17, 1888, did not report till March, 1890. Lord Randolph’s separate memorandum, which will be found in the Appendix, is well known. Its sweeping proposals were not adopted by the majority of the Commissioners; but it has been so often quoted, and bears so closely upon modern controversies, that the reader who is interested in these subjects should not neglect to study it. The indirect results of his agitation were, perhaps, more fruitful. Lord George Hamilton, with whom he so often engaged in sharp argument when Navy Estimates recurred, bears a generous tribute to the unseen influence which severe public criticism exerts upon the workings of a great department. It would seem that Lord Randolph Churchill’s belief that considerable economies were possible on the establishments of 1886 was not without foundation.

Lord George Hamilton writes, October 4, 1904:—

During my tenure of office at the Admiralty great changes were made, and in the foremost rank of these reforms was the reorganisation and renovation of the Royal dockyards. These establishments had been allowed to grow and develop without a sufficient regard to the revolution in shipbuilding which the substitution of iron and steel for wood had caused. Laxity in supervision, connivance at practices neither economical nor efficient, dawdling over work, obsolete machinery and ill-adjusted establishments, associated with Estimates framed for political exigence rather than naval needs, all combined to bring these great national building yards into disrepute. The personnel was first-rate both in ability and integrity and the material used as good as money could obtain. All that was required was a thorough readjustment of the establishments to the work they were called upon to do, by the reduction of the redundant and superfluous workmen, by the dismissal of the incompetent, and an increase to the numbers working in steel and iron. Changes such as these, if associated with the introduction of the methods and checks in force in the best private yards, were quite sufficient to put our dockyards in the first rank of building establishments. But whoever undertook the task would be subject to much obloquy, both local and Parliamentary. The stern suppression of long-standing malpractices, the dismissal of a large number of unnecessary and indifferent workmen, if enforced on a large scale, required a strong current of public opinion behind it for its consummation. This assistance I obtained from Lord Randolph Churchill’s crusade on economy. He and I differed on many questions of naval administration, but we were at one as to the necessity of dockyard reform. Many economists who, though agreeing in the abstract with Lord Randolph’s views, hesitated to cut down the effective fighting forces of the Army and Navy, were delighted to co-operate with him in so non-contentious an improvement. The Labour party was not then as well organised or represented in Parliament as they have since become, and their opposition to dockyard dismissals was less strenuous than it would be now.

I was thus enabled, after two years of continuous labour and trouble, to organise the dockyards from top to bottom, to put down establishments that were not required, to dismiss the loiterers, and to establish, modelled on the practice of the best private yards, a completely new system of supervision, check, and control. The effect was electrical. The dockyards at once became the cheapest and most economical builders of warships in the world. The largest ironclad ever designed, up to 1889, was built, completed and commissioned ready for sea in two years and eight months from the date of the laying down of its keel. No large ironclad had been previously completed within five years. Up to 1886 the average cost of the big ships building in these yards was 40 per cent. above their original estimate; since then the estimates have rarely been exceeded. In the first year of the new system there was an instantaneous saving of 400,000l. The continuous and satisfactory progress of our vast and annually increasing building programme is mainly due to those changes, and Lord Randolph could, I think, fairly claim that, though his name was not publicly associated with the great national gain thus achieved, it was the public opinion which he aroused, which largely contributed to the consummation of dockyard reform.

Lord Randolph Churchill addressed five meetings in the autumn and winter of 1887—two at Whitby and Stockport respectively for his two friends, Mr. Beckett and Mr. Jennings; and three in the North. The Whitby meeting in September afforded an opportunity for a display of the hostility with which he was regarded by the dominant section of the Conservative party, for several prominent local worthies publicly refused to attend—a proceeding which even the Times was compelled to censure. The 7,000 persons who gathered upon the sands and around the slopes of a kind of natural amphitheatre under the west cliff gave him a very different welcome, and listened with delighted attention during that beautiful afternoon to a spirited and ingenious defence of the miserable session through which the Government had shuffled. In Yorkshire and Lancashire, as in the earlier meetings of the year, and later in the North, his popularity with the Conservative masses was still undimmed. He was greeted everywhere by immense crowds. The largest halls were much too small. Paddington was loyal and contented. His Birmingham supporters asked no better than to fight for him at once. At Nottingham, long before his arrival, the streets were thronged; and all the way from the station to the Albert Hall he passed through continuous lines of cheering people.[64] Similar scenes took place at Wolverhampton, and the Conservative Association of that borough passed a formal resolution supporting his policy of economy. In the North he made a regular progress. He visited three important centres in a single week and made a ‘trilogy of speeches’—no light task for a speaker whose every word is reported and examined. He spoke on the afternoon of October 20 at Sunderland, at great length, in reply to a previous speech of Mr. Gladstone, covering the whole field of domestic policy and defining the immediate limits of the Tory Democratic programme. These proved sufficiently comprehensive to include Free Education, Local Option in the sale of drink, a compulsory Employer’s Liability Act, the abolition of the power of entailing land upon unborn lives, ‘One man, one vote,’ and Parliamentary registration at the cost of local bodies. At Newcastle, two days later, he spoke in defence of the Union, justified the Government policy in Ireland, and vehemently attacked Mr. Gladstone for the countenance which he showed towards lawlessness and disorder.

On the Monday he spoke at Stockton, and here he turned aside to deal with another subject which had been thrust much upon him of late. Mr. Jennings, like Lord Dunraven, was, as the reader is aware, a Fair Trader, and throughout the year—from the very beginning of their association—he had laboured tactfully, but persistently, to win Lord Randolph to his views. He knew that although the cry of ‘Less waste and no jobbery’ might appeal to many, ‘Economy’ was not in itself a popular cause to submit to a Democratic electorate, and was, moreover, foreign to the instincts and traditions of Toryism. ‘Fair Trade,’ on the contrary, touched a very tender spot in a Conservative breast; and, quite apart from this consideration, Mr. Jennings was an enthusiast. He had examined the question both from an American and a British point of view. He possessed a large and well-stored arsenal of fact and argument. On such subjects as ‘One-sided Free Trade,’ ‘Our Ruined Industries,’ ‘The Dumping of Sweated Goods,’ ‘The Commercial Union of the Empire’ or ‘Our Dwindling Exports’ he could write, as his frequent letters show, with force and feeling. Scarcely since St. Anthony had there been such a temptation on the one hand or such austerity on the other.

‘The main reason,’ Lord Randolph had said at Sunderland, ‘why I do not join myself with the Protectionists is that I believe that low prices in the necessaries of life and political stability in a democratic Constitution are practically inseparable, and that high prices in the necessaries of life and political instability in a democratic Constitution are also practically inseparable.’ And this having drawn upon him the wrath of Mr. Chaplin, he proceeded at Stockport to make his case good. He used no economic arguments. He pointed to the supremacy of the Conservative party as a proof of political stability under low food-prices. He pointed to the conversion of Sir Robert Peel as a proof of political instability, under high food-prices. To make wheat-farming profitable a duty was required which would raise the price of corn from 28s. a quarter to something between 40s. and 45s. a quarter. Would anyone propose a sufficient tax on imported corn to make it worth while for the rural voter to pay the higher prices which Fair Trade would secure for the manufactures of the urban voter? How did the Fair Traders propose to deal with India? How did they propose to deal with Ireland? Could they prove that France, Austria and Germany were more prosperous than Great Britain? ‘It is no use saying to me, "Go to America or New South Wales." I will not go to America, and I will not go to New South Wales. There is not the smallest analogy between those countries and England. America is a self-contained country and almost everything she requires for her people she can produce in abundance. We cannot. We have more people than we can feed; and not only for food, but for our manufactures, we depend upon raw material imported from abroad. Therefore I decline to go to America or New South Wales; but I would go to European countries—to France, Austria and Germany—and I want to know whether the Fair Traders can prove that the people of those countries are more prosperous than ours.’

This Stockton speech was naturally a great disappointment to Jennings. ‘I cannot deny,’ he wrote, ‘that you gave many of your followers a bitter pill to swallow. I think I could give you satisfactory grounds for admitting that your objections to "Fair Trade" will not stand much investigation; but, of course, the real difficulty is that in many of our constituencies the question is popular. We have been partly elected on the strength of it; and when you attack it, you fire a broadside into your own supporters and give the Radicals in our boroughs a stick to beat us with. It is hard for us to fight against your authority, especially when we have been drilling into the minds of the people that yours are the views they should adopt. If you ever had half an hour to spare, I wish you would allow me to put the facts before you. You would soon see, for example,....’ And then follow pages of tersely stated arguments of a kind with which most people are now only too familiar.

They produced no effect upon Lord Randolph. ‘The policy which you advocate,’ he replied (October 30), ‘of duties on foreign imports for revenue purposes, much attracted me at one time; but I came to the conclusion that, although such a policy would gain the adhesion of the manufacturing towns, it is open to such fearful attack from the Radicals among the country population that we should lose more than we should gain. I cannot see how you can persuade yourself that the country population would accept a method of raising revenue which would directly benefit the manufacturing population at their expense. The election of ‘85 made a great impression upon me. Then the defection of the rural vote completely neutralised our great successes in the English boroughs.’ And again on November 3, after the discussions at the conference of Conservative Associations: ‘Do you see how the Fair Traders have been wrangling and disputing with each other—everyone going in a different direction—confirming all that I said at Stockton about their not knowing their own minds?’ Late in November came an invitation from the ‘British Union,’ a Protectionist Association having its headquarters in Manchester—of all places—to which Lord Randolph replied as follows:—

2 Connaught Place, W.: November 26, 1887.

I beg to acknowledge the receipt of your letter of the 25th inst. I understand that your Committee are good enough to do me the honour of asking me to preside at a meeting to be held on January 24 in the Free Trade Hall, Manchester, in favour of Fair Trade.

You allude to the recent vote of the Conservative National Union bearing upon this subject, and inquire as to what effect that vote has had upon my mind. I may reply: ‘None whatever, except to confirm me in the opinions I expressed at Stockton in the course of last month.’ Both at the Fair Trade Conference recently held, as well as at the conference of the delegates of the National Union, I observed that the sentence which would best characterise those discussions was quot homines tot sententiÆ. There is not among those who desire extensive fiscal reform the slightest approach to real agreement either as to objects or to methods. I must also point out that the delegates of the National Union do not appear to have had any instructions from those whom they were supposed to represent to debate and to decide on the question of Fair Trade, neither did they in any way specially represent trade interests. Their decision in favour of Fair Trade, therefore, is not more weighty than their decision in favour of ‘Women’s Suffrage,’ which latter would certainly not be accepted by the Tory party as a whole.

Under these circumstances you will see that it is not possible for me to depart in any way from the views I have recently expressed on Fair Trade; nor could I, as you kindly invite me to do, ‘take the helm of a movement’ which up to the present remains altogether vague and undefined.

So far as I have been able to discover, this was, with one exception, his last public word on the subject.[65] His objections to Fair Trade were not based on principle. They were entirely practical. He cared little for theory. He hated what he used to call ‘chopping logic.’ He was not at all concerned to vindicate Mr. Cobden, and he mocked at ‘professors’ of all kinds. But he thought that as a financial expedient a complicated tariff would not work, and he was sure that as a party manoeuvre it would not pay. He saw no way by which the conflicting interests of the counties and the boroughs could be reconciled and he believed that without such reconciliation the movement would prove disastrous to the Conservative cause. He was, no doubt, strengthened in his views by his desire so far as possible to work in harmony with Mr. Chamberlain and so to combine and fuse together all the Democratic forces which supported the Union. Yet Fair Trade had much to offer to a Conservative statesman. To him, above all other Tory leaders, the prospect was alluring. That section of Tory Democracy which had received the gospel of Mr. Farrer Ecroyd—and it was already important—would have followed a Fair Trade champion through thick and thin. In every town he would have secured faithful and active supporters. His earlier speeches had prepared the way. His own immediate allies in Parliament, his best friends in the press, were ardent Fair Traders. Hardly a day passed, as he said at Stockton, without his receiving letters from all classes of people imploring him to come forward as a Fair Trader. He had only to raise the standard to obtain a following of his own strong enough to defy the party machine. The National Union might still afford the necessary organisation. And had he been, as it was the fashion to say, willing to advance his personal position regardless of the interests of the Conservative party, there lay ready to his hand a weapon with which he might have torn the heart out of Lord Salisbury’s Government.

                                                                                                                                                                                                                                                                                                           

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