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Commons Chamber

Volume 2: debated on Wednesday 24 March 1909

House of Commons

Wednesday, March 24, 1909

Private Business

Littlehampton Gas Bill.

Considered and ordered for third reading.

Baker Street and Waterloo Railway.

Read a second time and committed.

Committee on Standing Orders

Ordered that so much of Standing Order 91 as fixes five as the quorum of the Committee on Standing Orders be read and suspended.

That for the remainder of the Session three be the quorum.—[ Mr. Ellis. ]

Glamorgan Water Board Bill

Ordered that it be an Instruction to the Committee on the Bill that they have power to inquire whether the promoters have made adequate provision by the Bill for the supply of water at reasonable rates to the agricultural community within the area of supply, and to any person or persons from whom any existing or natural supply is, or may be, withdrawn owing to the works or undertakings authorised by the Bill, and that they further have power to insert in the Bill such Clause or Clauses, as they think necessary, to impose upon the promoters the obligation to provide such supply.— [ Mr. Pretyman. ]

Oldham Corporation Bill

Ordered that it be an Instruction to the Committee on the Bill that they have power to inquire whether the promoters have made adequate provision by the Bill for the supply of water at reasonable rates to the agricultural community within the area of supply, and to any person or persons from whom any existing or natural supply is, or may be, withdrawn owing to the works or undertakings authorised by the Bill, and that they further have power to insert in the Bill such Clause or Clauses, as they think necessary, to impose upon the promoters the obligation to provide such supply.—[ Mr. Pretyman. ]

Aldershot Gas and Water Bill

Ordered that it be an Instruction to the Committee on the Bill that they have power to inquire whether the promoters have made adequate provision by the Bill for the supply of water at reasonable rates to the agricultural community within the area of supply, and to any person or persons from whom any existing or natural supply is, or may be, withdrawn owing to the works or undertakings authorised by the Bill, and that they further have power to insert in the Bill such Clause or Clauses, as they think necessary, to impose upon the promoters the obligation to provide such supply.—[ Mr. Pretyman. ]

Oral Answers to Questions

South African Union (Heraldic Bearings)

asked the Under-Secretary for the Colonies if he knows of any proposal for heraldic bearings for the South African Union; and, if so, will he give Members an opportunity of becoming acquainted with such proposal?

The answer to the first part of the hon. Gentleman's question is in the negative.

Rhodesia Asiatic Ordinance

asked whether the draft Asiatic Ordinance enacted by the Legislature of Rhodesia last June has been disallowed; whether that Ordinance was substantially the same as the Registration law of the Transvaal which the British-Indians of that Colony seek to have repealed as being degrading to them; and whether, under the circumstances, the Secretary of State will renew his good offices with the Government of the Transvaal in order to put an end to the sense of injustice under which His Majesty's British-Indian subjects are suffering?

The Secretary of State has instructed the High Commissioner not to assent to the Asiatics Ordinance of Southern Rhodesia. The principle under- lying this legislation was the same as that in the existing Transvaal legislation. The latter was not disallowed because the position of the Transvaal was for historical reasons exceptional. The Ordinance passed under Crown Colony Government were not allowed, but in the exceptional circumstances of the Transvaal His Majesty's Government felt that they could not disallow legislation passed unanimously by both Houses in a self-governing Colony. The circumstances of Southern Rhodesia are of course very different. Further correspondence about the Transvaal Indians will shortly be laid, and I cannot usefully make any further statement at present.

Colonial Governments and the Navy

asked the Under-Secretary for the Colonies whether any offers have been received from Colonial Governments to assist further in strengthening the Imperial Navy; and, if so, whether he can give particulars of such offers?

The Prime Minister will make a statement on this subject in reply to other questions which appear on the Paper.

British Subjects in Persia

asked the Secretary of State for Foreign Affairs, whether he has any information as to the assault and robbery of a British traveller near Sivend, while on a journey between Isahan and Shiraz; and whether he will make such representations as will ensure that the Persian authorities take steps to secure that British subjects shall not be molested in future?

The Agent of Messrs. Ziegler and Company, a British subject, was robbed and stripped three or four days ago by certain tribesmen near Sivend on the Shiraz-Isahan road, which the Acting British Consul reports to be dangerous. His Majesty's Minister at Teheran has pressed the Persian Government to issue urgent instructions to the governor of the district where the outrage took place to punish the offenders and endeavour to recover the stolen property.

Will this be the subject of indemnity? Will an indemnity be pressed for?

I think that the first stage will be the recovery of the property.

Telephone System (Ireland)

asked whether the Post Office trunk telephone system has yet reached a point of development enabling him to connect Dublin, Galway, and Sligo with Mullingar and other intermediate towns without any local guarantee?

Guarantee terms have already been arranged for the extension of the trunk telephone system from Ennis-killen to Sligo. An offer has also been made to extend the system from Dublin to Mullingar, Athlone, and Galway under guarantee, but the terms have not been accepted. The probable support in the shape of exchange subscribers is not sufficient to justify this extension without a guarantee. Such a guarantee could, no doubt, be obtained more easily if the intermediate towns would join in the arrangement.

Adamstown Sub-Post Office

asked the Postmaster-General whether he was aware that until nearly the end of last year the Adamstown sub-post office was open on Sundays for a few minutes after last Mass for the delivery of letters, etc.; whether this has been changed to a most inconvenient time, namely, from 9.20 to 10 a.m., when the people have gone home after first Mass and have not arrived to attend last Mass; and would he see that the convenience of the public was consulted by having the office kept open for, say, 15 minutes after last Mass?

I am inquiring into the matter, and will communicate the result to my hon. Friend.

Carlow Post Office

asked what is the present rent of the post office in the town of Carlow, and how many years are there of the lease unexpired; how much money has been spent on the upkeep of the premises during the last nineteen years; is the accommodation sufficient, allowing for proper house-room for the postmaster; what further amount of money does the inspector recommend to be spent on the premises; and whether, before spending more money on these premises, he will consider the advisability of building a new and up-to-date post office in Carlow?

The head Post Office at Carlow is held on a lease for 30 or 50 years from 25th March, 1889, at a rent of £45 a year. Apart from ordinary maintenance charges, a sum of £1,524 has been expended in improving, enlarging, and equipping the building since the commencement of the lease. There seems to be little doubt that the building can, without much additional cost, be so improved as to meet the requirements of the service for some time to come; and I do not think the large outlay which would be necessary to provide an entirely new building could be justified.

Daily Official Reports (Free Postage by Members)

asked the Postmaster-General whether copies of the daily Reports of the Proceedings of this House are returnable post free after revision by Members; and, if not, whether he can make arrangements to secure this for the future?

I have had this matter under consideration, and I am glad to say that I have been able to arrange for copies of the daily Reports of the Proceedings, returned after revision by Members, to be transmitted free of postage, provided that they are addressed to "The Superintendent of the Official Reporting Staff, House of Commons."

Mail Service (Zanzibar and Uganda)

asked the Postmaster-General if he will receive a small deputation at an early date with reference to the mail service between Aden and Zanzibar, East Africa, and Uganda?

I am always glad to see hon. Members. But I should be glad if my hon. Friend would let me have beforehand information on the points which he and the others wish to bring before me with reference to the East African Mail Service.

Agricultural Returns (Ireland)

asked the Vice-President of the Department of Agriculture (Ireland) whether he is aware that competent farmers of long experience have been quite unable in recent years to obtain for their live stock or agricultural produce the prices represented in the Official Returns as current; that in the Return for the year 1907–8 the greatest discrepancy occurs in the department of sheep, fat and store, and wool, no prices ap- proaching those in the Returns being obtainable; and, seeing that misleading returns of prices are more dangerous in Ireland at present, while the ownership of land is in course of transfer, than in any other country, whether he will give this matter his attention, find more trustworthy sources of information to check those hitherto relied upon, and endeavour to bring the Returns for the current year nearer to the actual prices of fair and market?

The data as to the prices of cattle and sheep as given in the Returns referred to are based on actual transactions at a large number of fairs throughout Ireland in the case of store stock, and at well-known markets in Dublin and Belfast in the case of fat cattle and sheep. The prices of wool are also obtained from reliable sources at important centres for the sale of wool, as Dublin, Limerick, and Galway. The question of obtaining a larger number of reports as to prices of live stock and agricultural produce at various representative markets and fairs is under consideration.

Is he aware that fictitious prices are very often arrived at by the markets opening at a large price and then a backwardation is given afterwards in order to represent in the papers what the prices are?

Legal Advisers of Irish Government

asked whether the legal advisers of the Irish Government and its departments, other than the Attorney-General and the Solicitor-General, hold their positions permanently, irrespective of change of Government; if so, whether this is in virtue of any right of tenure, and on what principle is it allowed; by whom, and by what method, are they chosen; are they paid by fees or by salaries, and according to what scale; are those of them still in the service who were responsible for the regulations which the Estates Commissioners, on 17th January, 1906, declared to be invalid; and, if so, why is this system continued?

The legal advisers of the Irish Government and its departments, other than the Attorney and Solicitor-General are appointed by the Government and hold office, under tenure created by Statute or established practice, irrespective of a change of Government. Their salaries are included in the Civil Service Estimates, to which I would refer the hon. Member. The regulations of 4th July, 1905, to which he refers, were settled by the law officers of the day.

Shipbuilding (Comparative Cost)

asked what is the cost per 1,000 tons of building and completing ready for commission a first-class battleship in Great Britain, Germany, France, and the United States of America respectively.

I should be glad if my hon. Friend would postpone his question.

Shipbuilding Slipways

asked what is the total number of slipways in private shipbuilding yards on the Clyde which are capable of being used for the building of war ships of the "Dreadnought" class?

Warships (Comparative Fighting Values)

asked what is the official estimate of the fighting value of the war ships of the "Prince Edward" type as compared with ships of the "Dreadnought" type?

It is not possible to give a proportionate comparison between the fighting values of ships of different classes. In the opinion of the Board, the "Dreadnought" class are greatly superior to the "King Edward VII." class in simplicity and power of armament, and in speed.

How can the House of Commons make up its mind as to the necessities of the Navy if the Board are not prepared to answer a question of this character?

I have given the answer of the Board that in their opinion the "Dreadnought" is greatly superior in the two qualities named, but it is impossible to give a proportionate comparison— that is, it is impossible to say one ship is half as good or two-thirds as good as another. We can only estimate that it is superior, or very much superior, or very greatly superior.

How many new ships will come into commission, and how many old ships will be scrapped?

I do not know what period of time the noble lord proposes to cover by the question.

H.M.S. "Vanguard."

asked why the battleship "Vanguard," which was included in the Estimates for 1907–8, was not laid down till the financial year 1908–9?

I have nothing to add to the reply I gave to a similar question on 11th May last.

Will the right hon. Gentleman tell me what the reply was? I was not here.

On 11th May the hon. Gentleman will see there was a full reply given to this very question.

I shall have to ask for notice of that question. I am not sure of the name of the ship. I do not think so.

H.M.S. "Temeraire."

asked when the battleship "Temeraire" was laid down; on what date it was then anticipated that she would be placed in commission; and on what date it is now anticipated that she will be commissioned?

H.M.S. "Temeraire" was laid down on 1st January, 1907, and it was then anticipated that she would be placed in commission in January, 1909; it is now anticipated that she will be commissioned in May next.

May we take it that this ship will take thirteen months to build after she is laid down?

If the hon. Gentleman will calculate from January to May he will find it is sixteen months

Was she not laid down before the strikes at Portsmouth? Is she not a Portsmouth ship?

If a ship is built at Portsmouth the machinery is not made at Portsmouth, but has to be made elsewhere.

H.M.S. "Lord Nelson."

asked when the battleship "Lord Nelson" was laid down; on what date was it then anticipated that she would be placed in commission, and on what date was she actually commissioned?

The "Lord Nelson" was laid down on 18th May, 1905, and it was anticipated at that date she would be completed and ready for commissioning in November, 1907, that being the contract date. She was commissioned as flagship of the rear-admiral commanding the Nore Division of the Home Fleet on 5th January, 1909.

Pembroke Dockyard

asked the First Lord of the Admiralty if, at the present juncture of naval affairs, he can see his way to retain the men at Pembroke Dockyard who were entered for temporary employment during the winter months?

It is not proposed to discharge the whole of the men entered at Pembroke for temporary employment during the winter months.

Will preference be given to men who have been employed in case of vacancies arising hereafter?

I could not undertake to give an absolute preference to men who have been employed without regard to character and ability.

asked the First Lord of the Admiralty if he will give instructions for an estimate to be obtained of the cost of preparing two out of the three shipbuilding slips at Pembroke Dockyard (viz. No. 1, No. 2, and No. 5 slips), so that two of these slips may, at the earliest possible date, be available for building the largest class of "Dreadnought"?

Apart from building slips, the resources of Pembroke Dockyard are not at present sufficient to build a ship of the "Dreadnought" type in the time required. It is not therefore proposed to obtain the estimate mentioned.

Is it not the case that at Pembroke Dockyard you can build vessels of the "Dreadnought" type without incurring any expense for piling owing to the nature of the bed?

I should like notice of the question, but that does not conclude the matter. The question is whether Pem- broke could build a "Dreadnought" in the time required. The Admiralty are of opinion that it could not.

Is it simply a question of employing rather more men at Pembroke to enable it to build "Dreadnoughts" in the same time as any other yard in the kingdom?

No, the other resources of Pembroke are not at present adequate for such purposes.

Is there any reason why Pembroke should be considered before other places?

Foreign Ships in British Dockyards

asked the First Lord of the Admiralty whether he can state the number of first-class battleships now being built in Great Britain for Foreign Powers; and whether he will consider the advisability of purchasing some, and, if so, how many, of these to strengthen the British Navy?

For Brazil two battleships are under construction, and one is on order and to be laid down shortly. The answer to the last part of the question is in the negative.

Does it not appeal to an economical Government to acquire one or two of these ships?

Would not the right hon. Gentleman, at all events, consider the advisability of getting a refusal from the Foreign Governments should they be ready to sell?

No; if we required more ships it would be better for us to build them ourselves, but we do not require any more ships at this moment. So far as the future is concerned we shall have ample time to build them.

Does not the right hon. Gentleman recognise that supposing the ships were bought by other Powers it would entirely upset the calculations of the Government, and, therefore, it would be advisable to have the refusal of them?

No. Our present superiority in strength—I am dealing with the year 1909–10—is so great that no alarm would be created in the mind of the Board of Admiralty.

Naval Construction (Germany)

asked what is the estimated expenditure and the amount actually spent by Germany on naval construction in each of the last four financial years?

The estimated expenditure on naval construction, including armaments, by Germany in each of the last four financial years is as follows:—

Is there not information that the Vote for shipbuilding and armaments in Germany will amount, for 1909–10, to ten millions and three-quarters, as against our ten millions?

Yes, the hon. Gentleman is quite right. The statement as to the German Estimates for 1909–10 is £10,730,000.

Does not the German Government spend more than their Estimates without saying anything about it?

That is a question which had better be addressed to the German Government.

I think it is not desirable to discuss the practice of other Governments.

Destroyers (England, Prance and Germany)

asked approximately what destroyers will be in the possession of Great Britain, France, and Germany, respectively, in March, 1912, capable of efficient work in the North Sea as regards coaling and sea-keeping capacity?

It is not possible to answer the question in the form in which it is asked, nor could a precise definition be given of the hon. Member's expression, "efficient work in the North Sea."

Of ships launched in or since 1903, or provided in recent programmes, Great Britain has a total of 81 destroyers of from 540 to 990 tons, with the "Swift" of 1,800 tons, and two just purchased from Messrs. Palmer, making 84 altogether. Germany has 72 of from 400 to 660 tons; France has 60 of from 298 to 703 tons.

Of older destroyers Great Britain has 65 30-knotters launched between 1895 and 1901, of from 310 to 470 tons, and the "Velox." Germany has 24, launched between 1897 and 1902, of 394 tons. France has 16, launched between 1899 and 1902, of from 295 to 306 tons.

I have not referred to the forty 27-knot British destroyers of earlier date.

Destroyers Purchased

asked the names of the two destroyers bought by the Government to replace the "Gala" and "Tiger"; and whether they equal them in speed, armament, radius of action, and sea-going qualities?

The names are "Alba-core" and "Bonetta." The speed of these destroyers is less than that of the "Tiger" and greater than that of the "Gala." The armament is different, but may be said to be equal in power. The radius of action is less. We have not had sufficient sea-going experience of them as yet to provide a reply to the last part of the question.

Are these the two destroyers mentioned in last year's Estimates as costing £240,000?

No; they were not mentioned in the Estimates at all. They were not included in the Estimates.

Is the new "Tiger" possessed to the full of all the destroying qualities of the abandoned boat or "beast"?

May I ask what the armament and speed of these destroyers will be?

We have not got these destroyers yet. The difference between the speeds is very small.

Do you say that the new boat is inferior in some respects to the old one in speed or in armaments?

Congested Districts (Scotland) Board

asked the extent of land in each of the Highland crofting counties now in the hands of the Congested Districts (Scotland) Board, and the number of tenants under the Board in each of these counties?

There are 48,500 acres of land, all in the county of Inverness, now in the hands of the Congested Districts Board. At the present time the number of tenants, including joint tenants, is about 500.

Sporting Lands (Valuation)

asked, in view of the fact that the low assessments placed on mansions and lands used for sport in Scotland inflicts an additional burden on the ordinary ratepayer, will the Secretary for Scotland consider the expediency of taking such steps as may be necessary to ensure a more equitable valuation of such properties?

Under the Sporting Lands Bating (Scotland) Act, 1886, the method of assessing sporting lands was assimilated to that in use for other lands and heritages, and under the Agricultural Rates (Scotland) Act, 1896, sporting lands were expressly excluded from benefiting by the grant made towards rates on agricultural land. The Valuation Acts make ample provision for appeals from the assessors' decisions, and the Secretary for Scotland has no reason to believe that a case has arisen for further legislative interference.

Migration from Lewis

asked the Lord Advocate, having regard to the fact that the landward committee of Stornoway Parish Council has furnished the Congested Districts Board with a list of cottars in the island of Lewis willing to migrate to the mainland, will he state the number of cottars comprised in the list and the nature of the steps taken by the Board for the purpose of formulating a scheme of migration?

The qualifications of the names on the list are now under examination, and until these are thoroughly sifted it would be misleading and premature to make any further statement.

Pleas of Insanity (Scotland)

asked the Lord Advocate whether his attention has been called to the number of serious cases in Scotland in which pleas of insanity are being accepted by his Department; and whether, in view of the fact that such pleas depend entirely on expert evidence, he will take steps to ensure that the poor man suffers no disadvantage in this respect over the man who can afford to pay for such evidence?

The answer to the first part of my hon. Friend's question is in the negative. Where a plea of insanity is tendered, I am not aware that a poor man suffers any disadvantage as compared with a man who can afford to pay for expert evidence.

Stoppage of Railway Pensions

asked the President of the Board of Trade whether he is aware that the board of directors of the Great Southern and Western Railway Company of Ireland had recently ceased paying pensions which they have hitherto been paying to certain aged men formerly in their employment at the Inchicore (Dublin) works; if so, what is the cause of the stoppage; and whether the Board of Trade possess any power under the existing law to compel a railway company to fulfil its obligations in respect of the payment of pensions?

I invited the observations of the company on this subject, and am sending the hon. Member a copy of their reply.

I would like first to send the hon. Member a copy of. If he would wish the reply to be made public he might put down another question.

I would ask the right hon. Gentleman whether the railway company have tried to evade their obligations to their employés, and for that purpose have taken advantage of the Old Age Pensions Act?

If the hon. Member would wait until he gets the reply he can then if he wishes put down a further question.

British Granite Quarries

asked whether, and, if so, to what extent the payments for the use of granite quarries in Scotland are in the form of royalties on the output; and what are the approximate scales of the royalties?

There are no official Returns on this subject, but the Secretary of State has asked the Inspectors of Mines if they could furnish any information. The inspector for the West Scotland district reports that, so far as he is aware, the granite quarries in his district are worked on the royalty system, but that it is customary to provide for a minimum annual payment. The royalties vary considerably in amount: the inspector mentions three quarries where the royalties are respectively 1s., 1s., and 3d. pe ton orr fdressed stone, and l½d., 3d., and l½d. per ton for crushed granite or rubble, and the minimum annual payments £350, £300, and £140. The inspector for the East Scotland district reports that, so far as he knows, the granite quarries in his district are worked under leases at a fixed annual rent, varying from £25 to £400.

Can the right hon. Gentleman say in the case of quarries, the use of which is paid for by royalties, what is the output?

I cannot say what the output is. I have given the information which I possess.

asked what has been the annual output of granite from the granite quarries of England, Scotland, and Ireland, respectively, with the totals for each of the last ten years?

The Secretary of State can give the figures for Scotland for the years 1898–1907 inclusive, but those for England and Ireland are not tabulated separately, and could not now be obtained without a search so prolonged that it would cause serious interference with the work of the Mining Statistics Branch. The Secretary of State is having the Scottish figures circulated with the Votes.

Boy Labour (Germany)

asked the nature of the restrictions placed upon the employment of boy labour, so far as age is concerned, by the new German Industrial Amendment Act?

The Secretary of State understands that the new Act puts no fresh restrictions on the employment of boy labour so far as age is concerned.

Working Women (British and German)

asked the Secretary of State for the Home Department if he will state particulars of the new German Industrial Amendment Act, passed into law in December last, so far as it relates to the restriction of the labour of working women before and after confinement; and if he can give any assurance that, in the interests of the physical well-being of the nation, the Government has any intention of raising the British law on this point to the German standard?

The provision referred to is to the effect that women are not to be employed in the establishments to which the Act applies for periods before and after confinement amounting altogether to eight weeks, nor for at least six weeks after confinement; and proof has to be given that the period of six weeks has elapsed. As regards the latter part of the question, the Secretary of State arranged, with the co-operation of the local authorities of a number of districts (including some of the most important industrial districts of the country), for a comprehensive inquiry to be undertaken by their medical officers of health into the effects of industrial employment in the case of married women. As soon as the inquiry is completed, the results will be carefully collated and considered; but the Secretary of State cannot, of course, at the present stage forecast what decision is likely to be arrived at on the subject. It has to be remembered that the German women receive allowances from their sickness insurance funds during their enforced absence from work.

May I ask whether the Potteries will be included as one of the important industries?

Yes, I believe one of the districts is the Potteries, but I am not quite sure.

Does the hon. Gentleman not think that the evidence already in possession of the Government, and that came before the Physical Deterioration Committee, sufficient to give them grounds for action?

Before considering the introduction of legislation the Government thought it desirable to have some exact statistical information as to the comparative effect of industrial work at home, in factories, and absence of industrial work, on the comparative rates of mortality of infants of mothers belonging to those several categories.

Proceedings against Mr. H. Bottomley, M.P

asked the Secretary to the Treasury, in view of the failure of the proceedings against the hon. Member for South Hackney, what had been the cost incurred by the public caused by the abortive prosecution instituted by the Treasury; and whether the latter propose to reimburse the hon. Member for the expense he had been put to in defending himself against charges which were of such a character that the case was dismissed by the magistrates without a single witness for the defence having been called?

In answer to the first part of the question I am informed that the costs will come to about £2,500. In reply to the second part, inasmuch as this prosecution was instituted in good faith within the meaning of Section 6, Sub-section 3, of the Cost in Criminal Cases Act, 1908, I see no reason to depart from the principles laid down in that section.

Will the hon. Gentleman tell us on whose advice this prosecution was undertaken, and what are Mr. Avory's fees?

The prosecution was undertaken, as I understand all such prosecutions are undertaken, on the responsibility of the Attorney-General.

Irish Bank Notes

asked the Secretary to the Treasury if it has been brought to his notice that bank notes issued in Ireland for different amounts are similar in size and very similar in face appearance; is he aware that difficulties are constantly arising owing to this fact; are notes issued by Scottish banking companies for different amounts different in size; and will he, in view of the facts stated, consider the whole question, and, if necessary, introduce legislation to deal with the present condition of note issue in Irish banking companies?

The precise form and appearance of bank notes has never, so far as I am aware, been prescribed by legislation in any part of the United Kingdom, and it appears to me that it is a matter which can be arranged much more conveniently by the banks of issue themselves, who are more familiar than the Government can be with the tastes and requirements of their customers. I understand from the Bank of Ireland that their notes for different amounts are similar in size and somewhat similar in face appearance, but that the respective values are so distinctly stated on each, both in the body and at either corner, that, so far as they are aware, no difficulty has ever arisen. I have no doubt, however, that both they and the other Irish banks of issue will be willing to give careful consideration to any suggestions calculated to make their notes more popular with the public generally.

Junior Lords and Franked Letters

asked the Patronage Secretary to the Treasury whether he will state the nature of the regulations he has framed, if any, to ensure that the frank is not improperly used by Junior Lords of the Treasury when writing to congratulate their Constituents on the fact of their being about to benefit by the efforts made during many years past to secure them old age pensions?

The framing of rules, regulating the franking of letters by Ministers, is outside the scope of my Department, and is a matter over which I have no authority.

Is the right hon. Gentleman aware that the Postmaster-General on Monday referred me to him on the subject, and can he refer me to anyone else?

The Financial Secretary to the Treasury draws up regulations for this branch of Government work. I have no authority whatever in the matter.

Are there any regulations at all as to franking letters among Junior Lords of the Treasury?

Is it not a fact that in this department it is the practice to frank from this House private invitations to receptions?

Separate Training Colleges

asked the President of the Board of Education whether it is proposed to increase the grants for the provision of separate training colleges for teachers; and whether the effect of this measure on the university colleges in Wales had been duly considered by the Government?

The answer is in the negative.

Public Elementary Schools (Revision of Regulations)

asked the President of the Board of Education whether, before issuing the circular to the local education authorities relating to the revision of the regulations affecting the status of public elementary schools and the sizes of classes, it was calculated how many extra teachers would be required in rural districts, and whether it would entail any extra burden on the rates, and, if so, to what extent; and will any steps be taken to relieve this extra burden by a grant from the Treasury?

The circular does not affect the status of public elementary schools, and the limitation of classes to a maximum of 60 on the registers will not specially affect rural districts. Additional teachers will only be required in those schools where the standard of staffing and the qualifications of the teachers hitherto employed have, as a general rule, been low. I am not in a position to state the number of additional teachers who will be required, but in areas where the local education authority have adopted a high standard of staffing no extra burden will be imposed on the rates. In the interests of educational efficiency I cannot admit that exceptional treatment should be given to areas where the standard has been unduly low.

As regards the last paragraph, I must refer the hon. Member to my right hon. Friend the Chancellor of the Exchequer.

May not these new regulations involve considerable structural alterations, and therefore, add increased cost to the ratepayers?

I believe in schools where a good class of teacher is employed the present structures will be proved to be quite ample. If the hon. Member has any special case in his mind I will be glad to have notice of a question on it.

Is the right horn Gentleman aware that a great many Education committees concerned that have received this circular are convinced that it will cause them a considerable increase in expenditure; and that one of the county councils has already worked out the figures roughly and come to the conclusion that it will mean £2,000. In view of that fact, will the right hon. Gentleman answer the last part of the question and say whether any steps will be taken to relieve the extra strain by a grant from the Treasury?

Spencer Charity, Coventry

asked the hon. Member for the Barnstaple Division, as representing the Charity Commissioners, whether he is aware that an old lady 83 years of age, and who is a recipient of the Spencer Charity, Coventry, has been informed by the Trustees that she must not apply for the Government pension; whether he is aware that this lady is a cripple, and has to pay 3s. per week rent out of the 6s. allowed her; and whether, in the circumstances, he can take such action that will allow her to apply for the national pension without forfeiting that already being paid her?

The Commissioners are not aware of the particular case, except from the information supplied by the hon. Member. A general notice was issued by the Trustees in October last that no almswoman who may obtain the benefit of the Old Age Pensions Act will be allowed to receive the charity. The Trustees have a discretion, if an almswoman becomes possessed of other sufficient means of support to determine her pension. The Commissioners have already expressed the view that to forbid the almswomen to apply for an old age pension would be likely to cause considerable disappointment. They suggested, therefore, that the Trustees should apply for a scheme to enable them to pay stipends of less than 6s. a week, the prescribed minimum of pensions, to those who had old age pensions, to enable a larger number to receive the charity. Meanwhile the Commissioners are of opinion that the Trustees ought to withdraw the notice, and let the alms-women apply for old age pensions.

Can the hon. Gentleman tell me whether the old veterans of the Patriotic Fund have also been treated in the same way?

Small Holdings and Allotments Acts (Inspectors)

asked the hon. Member for South Somerset, as representing the President of the Board of Agriculture, whether the inspectors appointed under the Small Holdings and Allotments Acts were selected from men holding inspectorships at the Board who were previously appointed to such posts in connection with the administration of the Diseases of Animals Acts; and whether, in the event of any new inspectors being appointed, the Board will, in order to facilitate the progress of the Small Holdings and Allotments Act, appoint trained men from outside (as was done in the case of the Commissioners), instead of men holding inspectorships at the Board of a similar character to that mentioned above?

Four of the inspectors appointed under the Small Holdings and Allotments Acts had previously served as inspectors under the Diseases of Animals Acts. All of them have had practical training in, and experience of, estate management; and, in view of their knowledge and experience in dealing with local authorities, they were more fitted for the work than men of similar standing without any official training. The applications and suitability of men outside the Department have received, and will continue to receive full consideration when fresh appointments have to be made.

Budget Statement

asked Mr. Chancellor of the Exchequer if he can now inform the House on what date he proposes to introduce the Budget?

I do not propose to introduce the Budget until after Easter.

New Zealand's Offer of Battleships

asked the Prime Minister if he has received an offer from the New Zealand Government to provide one or, if necessary, two "Dreadnoughts" for national defence; and, if so, has he accepted the offer. Further, whether he will give the House an oppor- tunity of expressing its appreciation of the magnificent offer?

also asked the Prime Minister if he has received any offer from the Government of New Zealand to provide one or two battleships for the defence of the Empire; and, if so, what answer he has given to such offer?

, answering both questions together, said: The following telegrams have passed between the Governor of New Zealand and my Noble Friend, the Secretary of State for the Colonies. Perhaps I had better read them to the House:—

"The Governor of New Zealand to the Secretary of State for the Colonies. (Received Colonial Office. 22nd March, 1909.)

"With feelings of pride and satisfaction I transmit to your Lordship following message. (Begins.) Government of New Zealand offer to bear cost of immediate building and arming by the British Government of one first-class battleship of the latest type. If subsequent events show it to be necessary will also bear cost of second warship of the same type. Ward, Prime Minister. Plunket.'"

"The Secretary of State for the Colonies to the Governor of New Zealand. (Sent 22nd March. 1909.)

"'Please hasten to assure your Prime Minister that his message has been received by me with the highest appreciation of the generous and spontaneous offer made on behalf of New Zealand. It will be at once laid before His Majesty's Government. Crewe.'"

"Telegram to the Governor of New Zealand from the Secretary of State for the Colonies, 24th March, 1909.

"'In further reply to your telegrams March 22nd, I desire you to express to Sir J. Ward and to your Government in the warmest terms the feelings and appreciation and gratitude with which His Majesty's Government have received the offer so generously and patriotically made.

"'So far as the coming financial year is concerned, the provision and powers for which sanction is being asked in the Naval Estimates now before Parliament, afford ample security. In view of the uncertainty that exists as to the character and extent of the demands that may be made on the national resources in the following years the offer of the New Zealand Government to bear, within that period, the cost of providing one first-class battleship of the latest type, and a second of the same type should subsequent events show it to be necessary, is most gratefully accepted by His Majesty's Government.

"'Your Government will doubtless understand that it is impossible to enter into details by telegraph, but you will receive at an early date full communications by despatch, as His Majesty's Government desire to consult with the New Zealand Government as to the time when it may become appropriate to give effect to their public-spirited proposal.'"

International Naval Conference (Capture of Foodstuffs)

asked the Prime Minister whether, under the recommendations of the International Naval Conference, any power would be reserved to this country to capture foodstuffs consigned to a contractor in a neutral foreign country adjoining an enemy's country, which foodstuffs might be resold to the enemy?

The UNDER-SECRETARY for FOREIGN AFFAIRS
(Mr. McKinnon Wood) (for the Prime Minister)

The answer is in the negative.

asked whether the British Government has protested in the past when foreign countries have declared foodstuffs to be contraband of war?

His Majesty's Government have had occasion to protest against the treatment of foodstuffs as absolute contraband, but they have never questioned the right of belligerents to treat as conditional contraband foodstuffs destined for the armed forces of the enemy.

asked whether the Government has now signified its approval to the recommendation of the International Naval Conference, which recently sat in London, that foodstuffs may in time of war without notice be treated by an enemy as contraband of war under the name of conditional contraband; and will he say if such foodstuffs would be liable to capture, even in neutral bottoms, if consigned either to the Government or to any contractor established in the country who supplies articles of this kind to the inhabitants of the country?

The answer to the first part of the question is in the affirmative, but I must point out that this has always been our own rule and practice as well as that of other nations. In answer to the second part, such foodstuffs would only be liable to capture if destined for the enemy's forces. They will be assumed to have that destination if consigned to the Government or to a Government contractor.

May I ask whether there will be any opportunity on the part of the House of Commons to consider these regulations before they are ratified?

Zeppelin Airships

asked the Prime Minister, as President of the Imperial Defence Committee, representing both the War Office and the Admiralty, whether his attention has been drawn to the fact that the German Government airship Zeppelin I. succeeded, on the 19th instant, in making a flight of nearly four hours, at an average altitude of 650 feet, and covered a distance of over 150 miles, carrying a crew of 26 officers, non-commissioned officers, and men, with their accompanying arms, stores, and ammunition; whether he is aware that, according to official statements, the German Admiralty and War Office are now building, and will have in 1910, 24 such airships; and can he assure the House that this programme of German aerial fleet construction is engaging the attention of our naval and military authorities?

As I informed my hon. Friend, the Member for the Reigate Division of Surrey, on 3rd March, the whole question of aerial navigation has for some time past occupied the attention of the Defence Committee and of the Government, and provision has been made, both in the Navy and the Army Estimates, which will ensure that the problems connected with the use of airships in maritime, as well as in land warfare, will be fully investigated by both the Departments concerned. We have no official information that corroborates or otherwise the question offered in the question.

Select Committee on Income Tax (Expert Evidence)

asked the Chancellor of the Exchequer if he is aware that the official and expert evidence given before the Select Committee on Income Tax showed that the labours of the Committee were seriously impeded by the inadequacy of the official statistics published; whether he is aware that the Return as to Income Tax moved for by the hon. Member for North Paddington amounts to an application for part of the evidence which the Committee needed; and whether he can see his way to grant the Return?

I cannot agree with my hon. Friend's suggestion that the labours of the Select Committee on Income Tax were seriously impeded by the inadequacy of the published official statistics. As regards the last part of the question, I can only repeat the in formation which has already been given to my hon. Friend, namely, that I do not feel justified in granting a Return, the preparation of which would entail an enormous amount of additional labour to officials who are already very hard worked and whose energies would thereby be diverted from their proper occupation of collecting revenue.

May I ask the right hon. Gentleman whether he will grant, in the succeeding sheet, this particular Return, which could be very easily prepared?

I cannot put any additional burden upon the officials at the present moment, but I will consider the matter later.

Imperial Expenditure and Revenue Accounts

asked the Chancellor of the Exchequer if he is aware that one of the most important Official Returns necessary to the deliberations of this House, viz., the Imperial Expenditure and Revenue Accounts, are not presented to Parliament as a Parliamentary Paper, and, consequently, are not issued to Members, although they are circulated by the Treasury to the newspapers; and whether he will in future alter this practice, so that Members are not made dependent upon newspapers for a small-type and often imperfect summary of the national accounts?

My hon. Friend presumably refers to the usual quarterly statement of the Income and Charge of the Consolidated Fund, which is published by the Treasury on the last day of each quarter. Copies of this statement, as well as being furnished to the Press, are sent to the Vote Office, and can be obtained by hon. Members who desire to have them. I understand, however, that the demand is very small. The suggestion made in the question has frequently been considered, but its adoption would result in the Returns reaching the hands of Members much later than they can be obtained at present, and after the information has appeared in the newspapers.

Will the hon. Gentleman be good enough to see that a notice of the fact is inserted in the Pink Paper circulated among Members?

As a matter of fact the demand is so small that only one has been asked for.

Is the smallness of the demand due to the fact that no one knows about it?

As a matter of fact, if the same course were pursued with regard to Blue Books would not then their circulation also be greatly restricted?

Old Age Pensions (Parish Relief)

asked the Chancellor of the Exchequer if he is aware that the Scotch Local Government Board have decided that where a husband receives parish relief, although the whole sum is used for his maintenance, that this implies relief to his wife, and that the Board have refused in certain cases old age pensions on this ground to women whose names have never been on the poor roll and who have received no poor relief; whether he is aware that the English Local Government Board in similar cases refer the matter to the local guardians, and on their certificate that the relief is entirely used for the maintenance of the husband old age pensions have been granted to the wife; and will he see that the practice in the two countries is made uniform, so that the Scotch people may not be in a worse position than similar cases in England?

Is it not the fact that the pensioners referred to in the question are suffering from an injustice?

I know; but this matter has been the subject of appeal from the Treasury to the Scottish Local Government Board, and I could not answer a question of that sort. It is a question for the Lord-Advocate to answer and not for me.

Consols and Government Securities (Foreign Holders)

asked the Chancellor of the Exchequer if the books of the Bank of England show the amounts of Consols and other Government securities held by foreigners and persons resident abroad; and, if so, will he ascertain the amount of such investments held abroad from the books?

The books of the Bank of England do not show the amounts of Consols and other Government securities held by foreigners and persons resident abroad.

Is it not the fact that the names and addresses are always required by the Bank of England before registering?

Old Age Pensions Act (Ireland)

asked the Chancellor of the Exchequer if he has received any report from his officials who are investigating the alleged irregularities under the Old Age Pensions Act, 1908, in Ireland; and will he state the result of same?

Interim reports are being received from the Inland Revenue inspectors who are engaged on the investigation. The results of the inquiries go to show that in some cases persons have obtained pensions who were not qualified in respect of age, but the number cannot yet be stated.

Is there any justification for the statement that 50,000 of these pensioners have been cut off?

Chapman Estate, County Westmeath

asked the Chief Secretary to the Lord Lieutenant of Ireland if he will state what the practice of the Estates Commissioners is when a complaint of duress is made and an enforcement of the purchase agreement resulting from that duress would work immediate ruin; and whether, in the case of the widow, Maria Early, of the Chapman estate, Corolana, Lismacaffry, Westmeath, all proceedings against her by the Land Commission and by the landlord will be suspended pending the investigation of her case?

The Estates Commissioners inquire into any allegations of duress when an estate is being inspected. It is open at any time to a tenant, who alleges that a purchase agreement was signed under duress, to institute proceedings on notice to the vendor to have it dismissed. The reply to the concluding portion of the question is in the negative.

Land Values (Ireland)

asked the Chief Secretary since no test of merit is applied in the annual revision of the staff of land valuers and inspectors employed by the State in Ireland, and no consequence reaches those from whose work loss results to individuals and to the public, whether, having regard to the dependence of price upon rent and the liability of the ratepayers for unpaid annuities, he will inform the House on what principle the annual revision of the staff is carried out?

Upon the re-appointment of these officers all possible pains are taken to secure that the gentlemen to be appointed are properly qualified by knowledge and experience.

Untenanted Land (Ireland)

asked the Chief Secretary whether his attention has been called to the complaints of labourers that in the distribution of untenanted land they are denied a share, although the land itself, if bought at a proper price and given to an industrious man, is sufficient security to the State, and that the fact of a labourer having saved some money is evidence entitling him to special consideration; and whether he will give any assurance that those preparing schemes for the distribution of land will in future give more favourable consideration to the claims of labourers?

In the distribution of untenanted land acquired by the Estates Commissioners under the Act of 1903 the applications of labourers are duly considered with those of other persons eligible for advances under Section 2 of the Act.

Knockanghy Townland, County Cavan

asked the Chief Secretary if he will say whether James Sheil, the evicted tenant on the Smith estate, in the townland of Knockanghy, county Cavan, has yet been reinstated; will he say how his case now stands; and will he let the hon. Member for West Cavan have a list of names and descriptions of the evicted tenants to be reinstated or supplied with new farms in the county of Cavan?

James Sheil has not been reinstated in his former holding, but his name has been noted by the Estates Commissioners for consideration in the allotment of lands in process of being acquired under the Evicted Tenants Act. For reasons which I have already given to the House, it is not desirable to furnish the list asked for by the hon. Member.

Is the right hon. Gentleman aware that only 48 tenants have yet been reinstated, and that a considerable number of evicted tenants in Cavan do not know whether they are going to be reinstated or not?

The Estates Commissioners are very confident that it would be most undesirable, owing to the pressure put upon them, to give any list of this kind.

Thomastown Estate, County Meath

asked the Chief Secretary if the Thomastown estate, county Meath, has been acquired compulsorily under the Evicted Tenants Act by the Estates Commissioners; if this estate has been allotted; and, if so, how many evicted tenants were provided with farms on it; how many others were provided for; and, if it is not all allotted, will he give directions to the inspectors in charge that Mrs. Margaret Holdens' and Mrs. Anne M'Cabes' claims, two evicted tenants who were evicted out of farms in this district in the county Meath, be considered?

The Estates Commissioners inform me that proceedings for the acquisition of the lands referred to are pending under the Evicted Tenants Act, 1907. The cases of the two evicted tenants named in the question will be considered in the distribution of these untenanted lands if acquired.

Carmichael Estate, County Cavan

asked the Chief Secretary if he is aware that the present holder of the evicted farm on the Carmichael estate, Aughterera, Mountnugent, county Cavan, had, on 9th May, 1907, signed an agreement surrendering the farm to the Estates Commissioners for the purpose of having the former bolder, Miss Anne Beglan, the evicted tenant, reinstated; is he aware that the Estates Commissioners have since taken no action in the matter; could he say what is the cause of the delay; and will he give directions that no further, or at least unnecessary, delay shall take place on the part of the Estates Commissioners to have this woman reinstated, who has been compelled to live for over 22 years in a ditch on the side of the road?

This estate is not pending for sale before the Estates Commissioners, who have no knowledge of the agreement referred to in the question. Anne Beglan's name has been noted for consideration in the allotment of untenanted land, for the purchase of which negotiations are in progress.

Mountjoy Prison Warders

asked the Chief Secretary whether he is aware that the staff of over 50 warders at Mountjoy Prison, Dublin, are deprived this year of votes; can he state by what means this was brought about, and who is responsible; can he say whether clerks in the Irish prison service who are promoted from the rank of warder are allowed £5 annually in lieu of uniform, and derive the full benefit of the same towards pension, while warders on retirement are only allowed a little over half of that amount; whether steps will be taken which will secure warders equal consideration on retirement; whether the value of the warder's uniform is now under consideration; and whether he will see that no change will be made detrimental to the warders?

The matter referred to in the first part of the question is entirely outside the control of the prison authorities, who have no means of knowing whether the facts are as stated. As regards the second part of the question, the General Prisons Board inform me that clerks in the prisons service receive an annual allowance of £5 5s. in lieu of uniform, which counts towards pension. Warders are supplied with uniform, and are allowed in calculating their pensions, the average annual value of the materials for the last three years of their service. The valuation of uniform for pension purposes is now £5 5s. Id. in the case of chief warders and £3 10s. in the case of ordinary warders. The question of the valuation of the warders' uniform is not under consideration. No change detrimental to the warders will be made in the existing system.

New Cavalry Depots

asked the Secretary of State for War whether he is in a position to name the centres for the new cavalry depots?

Yeomanry (Scale of Pay)

asked the Secretary of State for War whether he can state how many of the Yeomanry now serving are completing periods of enlistment on the old scale of pay and how many are subject to the new rates which came into force last year?

The total number of non-commissioned officers and men serving on 25th February amounted to 23,698. Of these not more than 15,000 were completing enlistments on the old scale of pay. It is not possible to make a more exact calculation, as no detailed figures are available at the War Office.

Notices of Motion

This day fortnight, to call attention to the limitations of the Old Age Pensions Act, and to move a Resolution.

Presentation of Bills

The following Bills were presented and read a first time:—

Mr. DUNDAS WHITE—Hypothec Abolition (Scotland).—Bill to abolish the Landlord's Hypothec for rent in Scotland. (To be read a second time 26th April.)

Mr. CATHCABT WASON—Local Government (Scotland).—Bill to amend the Local Government (Scotland) Act, 1894. (To be read a second time 31st March.)

Mr. GEORGE GEEENWOOD—Cruelty to Animals (No. 2).—Bill to amend the Cruelty to Animals Act, 1876. (To be read a second time 2nd April.)

Mr. JAMES HASLAM—Engines and Boilers (Persons in Charge).—Bill to grant certificates to Persons in charge of steam and motor engines, boilers, and steam and motor cranes. (To be read a second time 2nd April.)

Mr. WILKIE—Hours of Labour (Bakehouses).—Bill to restrict the hours in Bakehouses to eight hours per day and not more than forty-eight hours per week, and to regulate the same. (To be read a second time 31st March.)

Trade Boards Bill

, in rising to ask for leave to introduce a Bill to establish Trade Boards in certain 'trades said: I cannot attempt to enter into any argument upon the subject of the Trade Boards Bill, nor shall I attempt to deal with the many cogent and various statements which may admittedly be directed against legislation of this character. I shall reserve for a later period the comments which I am prepared to offer on the different points that are to be raised, but I will only offer one word of acknowledgment in passing to those who have for many years laboured on this subject, and to those private Members of the House to whose exertions is due the present position of this question. I will confine myself exclusively in the short few minutes I shall trench on the attention of the House to the actual provisions of the Bill. The central principle of the Trade Boards Bill is the establishment of Trade Boards in certain trades where the evils known as sweating prevail, and of fixing by those particular Boards of a minimum standard of wages, and the enforcement by those Trade Boards of that minimum when fixed.

The Trade Boards set up under this Bill will exercise other functions besides their particular statutory functions of fixing a minimum rate of wages. They will be a centre of information, and I hope they will become the foci of organisation. As centres of information they may as time goes on be charged with some other aspects of the administration of the work of the trades, with the question of the training of the workers, and also they will be able to afford information upon the subject of unemployment. They will generally be not merely boards for the purpose of fixing the minimum rate of wages, for that is their primary purpose, but boards designed to nourish, as far as possible, the interests of the workers, the health, and the state of the industry of each particular trade in which they operate. The trades which will be scheduled under the Bill, and to which the Bill will at once apply, are these: The tailoring trade—but let me say that after very careful examination we have arrived at a correct definition of those portions of the tailoring trade to which the Act should apply, that is the ready-made and wholesale bespoke, the trade of cardboard box making, machine-made lace and finishing trade, and the ready-made blouse-making trade. Those are the trades that are scheduled under the Bill for a beginning; but power is taken in the Bill to extend the provisions of the Bill to other trades by an Order which acquires validity when it has lain on the table of the House unchallenged for 30 days. So much for the scope of the Bill.

There are two methods by which Trade Boards may be called into being. You may make local Trade Boards in the different districts. Then you may federate all those Trade Boards and form a Central Council; or, on the other hand, you can have a Trade Board which would give the duties and power to local Trade Boards or local committees, which are set up in the particular districts by the trade. Having to choose between the principle of devolution and federation of local bodies into a central body, we have chosen devolution from the Central Body. It is of very great importance that the balance should be held evenly between one district and another in some of those trades. Therefore, I felt any assistance of this character must be gripped and coordinated strictly from the centre in each trade.

The Trade Board, having been formed in any trade, establishes a District Trade Committee. The District Trade Committee will consist of local representatives of the employers and of the workmen, and a proportionate number of the Central Trade Board. The Trade Board itself will also be composed of the representatives of the employers and of the workers, and the Trade Board in any trade will have three expert paid official members, salaried official members, and, I trust, where women are largely employed at least one of those members shall always be a woman. Those official members are the link we are relying on to couple together and strengthen the local organisations, and to procure with a general view to that harmony of action which is essential that the provisions of this Bill are really to be useful and effective. The official members of the Central Trade Boards will also be members of the District Trades Committee, and the official member of the District Trade Committee will occupy the chair whenever that committee meets.

Great latitude is taken by the Board of Trade in regard to the processes by which those Trade Boards are called into existence. We give power by any method, by election, and where the materials for election do not exist, and those who have studied this question know that in many cases they do not exist, we take the power to proceed by nomination, and partly by election, and partly by nomination, as circumstances may direct. Under that great flexibility of procedure, which will vary with the complexity of each particular case, we hope those men, according to the persons whose fortunes and interests are embarked in the interests and changes effected, that the guidance of expert impartial and devoted officials will be an essential feature, a necessary feature, of any useful machinery which can be devised.

The Bill applies, indeed is indispensable, not only to home-workers, but to factory workers, and that is obviously necessary. To screw up by those special and artificial means the position of the home worker, while leaving the factory untouched, would be to improve the home worker out of existence altogether by a process which in practice would be very harsh. The Bill allows the different treatment to be applied simultaneously to the home workers and factory workers in any district. A minimum time rate will be the basis, the general basis, and to that minimum time rate all piece rates will be referred. It will be open to the Trade Boards to fix the general minimum piece rates in regard to articles more or less standard in their character and regularly produced. It will be open to an employer to go to the Trade Board and ask for a special minimum in regard to any special class of work he has on hand. It will be open for the Trade Board to fix different piece rates and in some cases different time rates for the whole of the factory workers in any particular district. All those rates will be co-ordinated as between district and district by the general division of the Trade Board.

Now, I have dealt with the scope and I have dealt with the machinery, and I propose to deal with the procedure. The District Trade Committee—that is, the local body in session, with its official members— recognise minimum time piece rates. The Trade Board of the whole trade consider those in all their bearings from a central point of view, and, after an interval to hear objections, amends, approves, and finally prescribes. Thereupon the minimum, when prescribed by the Trade Board, will become obligatory on Government and municipal contractors, and in all cases the wages specified are recoverable as a civil debt in the absence of a written contract to the contrary. The rates will be posted in a manner similar to the notices under the Factory Acts, and a White List, accessible to the public, will be formed of manufacturers voluntarily agreeing to be bound under penalties to observe the minimum rate. No one who does not appear on that list will be eligible for any Government contract.

By such methods it is hoped by the Board of Trade, and some who have studied the question, that in the first instance a healthy trade opinion will be from the beginning, and that beginning an organisation will be formed which, with a certain backing of solid support within the trade committees, will act on the state of minimum wage which we are anxious to enforce. At any time not less than six months after the minimum rates have been prescribed, the Board of Trade may, on the application of the Trade Board, make .an order, making those rates obligatory by law on all persons. It may then use, to enforce the rates, the powers which we are going to ask Parliament to confer upon us by the Act. I say at the outset that the enforcement will be effective in proportion as there is a strong element of support among the workers and among the employers in the trade committees. But it is also necessary, and I could not be responsible for the Act without that necessity being made, that full powers of enforcement, not only by investigation and complaint, but also by inspection, should rest in the hands of the authorities who administer the Act. The use of such powers must depend upon the circumstances of each particular varying trade and on each particular varying district, but that those powers should be made in the Act is in our judgment essential.

I therefore take powers which authorise entry to factories, to workshops and places where work is being carried on at all reasonable and suitable times. The powers which the Act confers provide for investigation of the complaints by a thoroughly efficient system of inspection by officers who will devote their whole time to the work, and who will be appointed with the sanction of the Board of Trade to work under Trade Boards in each particular trade and under the local committees in each particular district. Arrangements are made in the Bill to utilise the services of the factory inspectors of the Home Office, who are also engaged in covering ground not far removed from that which we are now entering. In order that we may not have to come to Parliament again for the fullest power to give effect to these proposals by clauses in the Bill we ask the House to enable the powers which the Board of Trade have under this Act to be transferred if necessary to the Home Office for administration by the Home Office. That gets over any difficulty of a subsequent demand upon Parliament from further powers and places in the hands of the authorities many channels through which to enforce the Act, and of choosing from a variety of measures that which will attain the most favourable result. I have now unfolded the main outlines of the Bill. The principles on which we are proceeding are to endeavour to foster organisation in trades in which, by reason of the prevalence of exceptionally evil conditions, no organisa- tion has yet taken root, and in which, in consequence, no parity of bargaining power can be said to exist; to use these organisations, when formed, as instruments to determine minimum standards below which the wages paid ought not to be allowed to fall; to rally to the side of these minimum standards all the healthy elements in the trade; and, finally, if and when this has been achieved, to protect the good employers—and there are always good employers in the worst of trades— who are anxious to pay a proper rate of wages from being under-cut, and to protect them by compulsory powers which are no doubt far-reaching in their character, which I also think will be found to be properly safeguarded in their use. I hope the House will now accord me permission to introduce the Bill. The difficulties which confront those who attempt to deal with these questions are no doubt great; but there is a very large measure of sympathy and interest in such efforts, not by any means confined to one side or one quarter of the House, and I am confident that Parliament will not grudge the time and labour which the consideration of these questions and the attempt to legislate upon them will most certainly require.

The question is that leave be given to bring in the Bill. Does any Member rise to oppose?

Yes, Sir; certainly. The right hon. Gentleman has given utterance to some elaborate sentences to explain the principles which actuated His Majesty's Government in introducing this Bill. The right hon. Gentleman might have saved the time of the House, and made his position more clear if he had said that the principles which actuated His Majesty's Government were to be found in a complete surrender to the Socialist party. The right hon. Gentleman told us that the object of his Bill—and I call the attention of the hon. Member for Preston to this—is to screw up by artificial methods the position of the worker. And he also said something about power to protect the worker, and about fixing the minimum wages, and finished up by saying: "So much for the scope of the Bill." I think the scope is very large, because, as I understand, there is not a single trade in the country which may not be brought within the provisions of the Bill. It seems that one effect of this Bill will be to provide employment for certain people at the ex- pense of the State at a time when the finances of the State are as bad as they can possibly be; another will be to put a final nail in the coffin of the trade of this country. [Laughter.] Hon. Members laugh. Do they suppose that people here in England will be able to cope with all the provisions which the right hon. Gentleman has indicated? Are they aware that employers abroad are not hampered by any of these restrictions which it is sought to impose upon employers in this country? The result will be that the few remaining trades in this country—[Laughter.] I do not consider this a laughing matter. I think the position of this country is extremely grave, not only in regard to its trade, but in regard also to many other matters. I cannot admit that it is a laughing matter to interfere with the trade of the country. It may be right, or it may be wrong, but it is a serious question, and one which will have to be dealt with with gravity, even in this House of Commons.

Motion made, and Question proposed: "That leave be given to bring in a Bill to establish Trade Boards"—[ Mr. Churchill ] —put and agreed to.

Bill presented accordingly and read the first time. To be read a second time tomorrow.

SUPPLY (11th MARCH)

Civil Services and Revenue Departments Estimates, 1909–10. (Vote on Account.)

REPORT.

Resolution reported: "That a sum, not exceeding £26,232,000, be granted to His Majesty, on account, for or towards defraying the charges for Civil Services and Revenue Departments for the year ending on 31st March, 1910."

Resolution read a second time.

Motion made and Question proposed: "That the House doth agree with the Committee in the said Resolution."

Irish Postal Service

I rise to move a reduction, with the special object of calling the attention of the House to a matter of very grave importance to the whole of the postal service in Ireland. It will be remembered that a short time ago I brought up the question of the suppression of the Irish Postal Association in this House. Unfortunately, I was unable to get a satis- factory answer, and I have to take this opportunity of bringing it forward again. At the outset I wish to dissociate myself from anything in the nature of an attack upon the Postmaster-General. I have the highest respect for him; I have met him on many occasions, and I have received nothing but courtesy and consideration whenever I have brought any question before him. But I am afraid that, in dealing with this subject, I shall have to deal with people in Ireland who are known as permanent officials, and I cannot get away from the feeling that the Postmaster-General has allowed himself to be made the tool of these officials. I cannot come to any other conclusion. Whenever a question is put to him and it has to go back to Ireland, I get one of those stereotyped answers which are placed in his hands. The permanent official in Ireland is well known. We have had many Postmaster-Generals and Chief Secretaries and Presidents of the Agricultural Board; but none of these Gentlemen have been able to develop backbone enough to put on one side the power of these officials. What I have to complain of is that in dealing with the matters under consideration we cannot get the sympathetic action of the Postmaster-General. I believe that if the Postmaster-General had had his own way the last thing he would have done would have been to suppress the organisation I have referred to. Why should the Postmaster-General be placed in this position? What has occurred has been simply because of the want of harmony between the permanent officials and the rank and file in the Post Office in Ireland. I maintain that it is the duty of the head of any Department in Ireland, while maintaining the integrity of the officials placed over the employés, to see that there is that spirit of harmony without which it would be impossible to carry on efficiently the work of the Department. What has been the action taken by the Postmaster-General? When I speak of the Irish Postal Association I am not speaking for Dublin alone, but for all Ireland, and the unfortunate position is this, that the charge I have to make here to-night is not so much concerned with Dublin or other parts of Ireland—the gravamen of the charge has arisen in Belfast, in Cork, and in Carrick-on-Shannon. What has occurred in these places has occurred all over Ireland; there is the same want of sympathy between the higher officials and the rank and file in the Post Office service all over Ireland. The action the Postmaster-General has taken means the suppression of this organisation—Postal Association— in Ireland, which is the mouthpiece of the postal employés. Does the Postmaster-General think for one moment that by suppressing this organisation he is going to subdue the discontent that exists? There is no cohesion and no friendliness existing in the department. Does the Postmaster-General, recollecting recent events in France, think that by suppressing an organisation which is the mouthpiece of the workers he is going to create loyalty and confidence among the employés. He will do nothing of the kind. It would be much better for him to meet the men. If the men are wrong, then let him deal with them; but if the men have a case, I say he should deal with it, and tell those concerned that they must work together in harmony as loyal and faithful servants of the State. Can he hope for a moment that any success will attend his attempt to break up the organisation of these men? He must know that in Ireland he is dealing with a body of men who will not lie quietly under action of this kind. These men will circumvent him every time, and he will simply be the means of strengthening their organisation. Irishmen have had too much coercion in the past. They have fattened under it; they have been able to give blow for blow, and the process, so far from injuring their organisations, makes them all the better by stirring up the stagnant blood. The Postmaster-General has suppressed this organisation; what will be his next move? Will it be to dismiss the officials—for what? For protesting against what they believe to be legitimate grievances. The Statute of Edward III. was referred to the other night. Why does he not charge these men under that statute with being disloyal members of the community, and with not carrying out the behests of their superior officers? As good a case could be made out against them as has been made out in many instances dealt with under that obsolete statute. Would the Postmaster-General dare to attempt in England, Scotland, or Wales what he has done in Ireland? He would never think of doing so. I am backed up in that view by the comments in the journals representing the postal officials in England. The "Gazette" and the "Post" have both criticised and condemned the action of the right hon. Gentleman. The "Gazette," after an article of a very unfriendly character to the Irish postal employés, simply because they have an association of their own—they are not amalgamated with the English association, and possibly there is friction between them; but whether they are right or wrong I do not wish to discuss at this moment—says:— No doubt the right hon. Gentleman will say that every man has a right to come before him and have his case dealt with. But if that is so, why does he not allow a representative from the association to appear before him? If any man had the temerity to stand out from his class and brave the authority of the men above him, I am afraid that his position in the postal service would not be of very long duration. The letter goes on:— right hon. Gentleman complains. The article continues:—

I have dealt with Belfast, I will now deal with Cork. Objection in this case is taken to a charge of hustling brought against the supervisor or head of the department. The following is an extract from the article:—

The "Guardian" of December.

"This is a genius that perhaps is not peculiar to Cork He no doubt flourishes in other offices. We, however maintain that the species reaches its highest development with us. We have some pretty specimens at present, all evolved within the last few years under the fostering care of our dearly beloved 'Aberfeldy'—mere puppets who dance when the boss whistles."

I do not know what "Aberfeldy" means.

And I have not taken the trouble to ask the men. The article continues:— that could be done to him in human reason would be to drive him out of the place and stop such tyranny. The article proceeds:—

This brings me to a letter from the secretary, in answer to the Postmaster-General in reference to this unfortunate transaction. In that letter there is one sentence which I will read, and all I can say is that if it is true, it is a matter which the Postmaster-General ought to explain. When the right hon. Gentleman goes round post offices all over England he holds conferences with the men representing their organisations. Why he departed from that practice when he was last in Dublin I cannot understand. The Postmaster-General, like a captain in the Army, ought to keep himself in touch with the men. If he had had an interview with these men when in Dublin, I believe he would have been able to bring to a satisfactory settlement the unfortunate matters which I am now bringing before the House, and I believe that all the trouble that exists would have been obviated. The Postmaster-General must know the excitable character of the Celt. If he goes over to Ireland in his offical capacity and declines to do there that which he has done in England and Scotland, I can only say that that itself is enough to breed discontent and to cause that want of sympathy and support which ought to exist between the Postmaster-General and those in the postal service.

I have here a copy of a letter written by Mr. Normoyle, the secretary of the men's organisation, in which he endeavours to prove that all this trouble was brought about by that want of sympathy and cohesion which ought to exist in all departments of the public service. Let the men have a social function, you will never find one of the higher officials among them. The case is different in England, where the head officials patronise the men's sports and functions. That is the only way to get proper service out of the men. If you treat the men in any other manner they will only be in the position of slaves, and it would be surprising if they did not resent it. In his letter Mr. Normoyle said:— It is evident, I think, from what I have read, that there is a condition of affairs in Ireland which cannot be satisfactory to the Postmaster-General. I am sure he will admit that anything that can possibly be done to put the position of the workers in the postal service in a state which will enable them to do their duty efficiently and with satisfaction to themselves and their employers should be done.

I therefore ask the Postmaster-General, in view of the statements I have made, does he not think that the case has been made out for an impartial inquiry into the whole matter, and into the circumstances which have brought about the suppression of this organization? I have said, "Suppress it you cannot." You may suppress it in its official position, but those men will meet and carry on a propaganda as though nothing had been done. The state of affairs is one which I do not wish to see going on. If the men have grievances, they have a right to make them known and to bring them before the Postmaster-General. If the complaints get to the right hon. Gentleman, I am satisfied that they will receive careful and sympathetic consideration. I wish to bring to the notice of the Postmaster-General a typical case. Some time ago I had occasion to bring to his notice the case of a young man of the name of Flannagan. It was the case of a young fellow who was a few minutes late in coming to work one morning. He told the overseer that he had slept on, and that officer in a moment charged him with being drunk. The young man bad an unblemished character, and he immediately went to the medical officer and asked for a certificate that he was not under the influence of drink. On that being refused, he went to the assistant medical officer, and he declined to intervene. But the lad, feeling that he was labouring under a terrible charge that might be the means of blighting his character for life, went to the most eminent teetotal doctor in Dublin, Dr. McDowel Cosgrave, who certified that he was not suffering from the influence of drink. I brought that case before the Postmaster-General. I know the right hon. Gentleman did not get the letter with reference to that matter for some time, because when speaking to him of another case, I said, "What about Flannagan's case, as to which I sent a letter a fortnight ago?" He replied, "I have not received it." When his attention was called to it, the permanent officials said that the man had been drunk, and the result was that a black mark was placed against him for that offence. The young fellow was not satisfied. He was laid under a false charge. He asked me to represent his case to the Postmaster-General and the Postmaster-General said that he had made an investigation into the charge. Again I made representations to the Postmaster-General and he took off the charge of being drunk against the boy. The boy was either drunk or he was not drunk. If not drunk, a strong injustice had been done to him. On this subject I think that I have taken up the time of the House long enough.

There is another question which I ask the House to deal with. These men are not to issue any memorials from this association. They are not allowed to belong to the association, although it is a counterpart to that which their fellows in England and Scotland belong. The permanent officials are not to answer any of the letters. In view of all these things I think that a drastic and terrible punishment has been meted out to this association. Strict investigation should be made, and if wrong has been done it should be set right. Then comes the question of the employment of soldiers in the engineering departments. I asked the other day the Postmaster-General why these soldiers were sent over, and the answer I received was that these men were sent over for the purpose of learning. I understand that they were so incompetent in England that business men would not employ them, but they were sent to Ireland at the expense of the business men in Ireland. The Postmaster-General would be surprised if I showed him some of the letters of business men which I have received. We in Ireland object to these men being foisted upon us. This, at the present moment, is a question which has aroused all Ireland, and I am sorry that there is not at the present moment a Member from the north of Ireland in his place. If you have this sort of thing in Dublin, you will soon have it in Belfast, and all over the country. Then, again, men are to be sent from Ireland to England to fill up the places of the soldiers. Our population is low enough already, and we object to the taking over of these young men and sending them to England. This policy will increase the drainage that has long gone on in Ireland. It has created a strong feeling both north and south amongst Nationalists and Unionists, Catholics and Protestants, and there will be trouble in the near future over it.

I want to ask the Postmaster-General what he is going to do with reference to the telephone department. The men are being dismissed by the telephone company, and I tell the right hon. Gentleman that a meeting is to be held in Dublin next Sunday to call attention to this very subject. The inactivity of the right hon. Gentleman in seeing that the telephone company does not maintain the efficiency of its plant until 1911, when the telephone system will be taken over is a matter of serious complaint. I appeal to the Postmaster-General to grant an enquiry into the suppression of this association, so as to mitigate the ill-feeling that exists between the workers and the higher officials of the Postmaster-General's Department. If the extracts which I have read are correct, they show a state of affairs in Ireland which is not creditable to the Department over which he presides, and I appeal to him to do something to alleviate the discontent and the turmoil which at present exist on that subject in my country.

The Postmaster-General is a Radical and Liberal in England, and I should like to ask, if he defends the doctrines of Liberalism, how he can defend the action of the permanent officials in this particular case? There was a great railway strike in England because the workers' organisation was not recognised by the employers. Surely, what was granted here in England ought to be recognised in Ireland by a State Department. We have had an explanation by the President of the Board of Trade of a Bill which practically deals with the settlement of trade disputes. I listened to his speech with a great deal of attention. If the President of the Board of Trade's attitude is a proper one with regard to trades in England, I do not know why it cannot be applied to Ireland. Why does not the Postmaster-General, if that doctrine is sound in England, apply it to Ireland in his own Department? I understand that the Postmaster General has refused to receive a deputation from men not necessarily on strike on the ground—

I think the right hon. Gentleman ought to have approved of a conference on this matter. I do not intend to take up the time of the House any longer, but I wish to point out that there is an entirely different rule with regard to Ireland from that which is followed in England. There is friction and there is annoyance, and almost a kind of revolt. Under similar circumstances this boycott would not have been adopted with regard to the English service. As an Irish Member intimately connected with public matters I say it is most lamentable that this thing should have occurred. We know what has occurred in France in connection with the postal service and the telegraphic service there, and we know how it has militated against the general good of the community. I do hold it is the duty of the Minister to do everything he can to see that the Department over which he presides may be carried out for the benefit of the public generally and the rank and file office staff. It is perfectly plain and everyone engaged in business, whether of a public or of a private nature, must know that unless you have a contented staff you can not have good results. It is the manifest duty of the Minister at the head of a Department like this, when friction of this kind arises, to take the necessary precautions to have the cause of it removed. My view is that the Postmaster-General has done nothing, and my opinion is—if I am supposed to have any opinion at all, because there are subjects nowadays upon which Members of Parliament are not supposed to have opinions or knowledge, because the permanent officials are supposed to monopolise it all—my opinion is that the permanent officials have intervened between the Postmaster-General and Post Office employes in this matter. Now with regard to the telephones, I have had a large number of letters and communications upon that matter, and I understand that the view of the post authorities is that in the year 1911 they will see that this work is carried out in an efficient manner. I venture to suggest you are not preparing for the efficiency of the service if you allow a large amount of the skilled workers to be dismissed in the meantime. If the work is to be carried en efficiently in 1911 you will have to see that it is carried on in a state of efficiency until the Government take it over in that year. I venture to make the suggestion that conditions not calculated to improve either the popularity or the efficiency of that service have in the meantime been allowed to exist. A large number of the employes, who have hitherto given satisfaction, are being dispensed with from motives of economy by gentlemen who practically own the service at the present moment and who are thereby attempting to save money at the expense of the service. I hope the right hon. Gentleman will take that matter into consideration. There is one other point to which I would drect the attention of the right hon. Gentleman. I have put it before successive Postmasters from time to time. It is this. I have always thought the Irish postal service would be better managed if manned by an Irish staff.

Not always. Not in all particulars, because Postmaster-Generals have the habit of importing higher officials, and that, in my opinion and experience, is a mistake. We do not want any importations we are quite capable of doing our own business if we are only allowed. I would like to urge also that the Savings Bank business of the Irish Post Office should be done altogether in Ireland. Transferring a portion of it to England only leads to confusion and delay. The books when they are to be audited should be audited in Ireland in place of being sent over to England. I think even the Conservative Members will admit we are living in an age of decentralisation particularly in regard to departmental work. That is shown by the fact that the military service is being worked out in different centres of England to-day. There ought to be no difficulty in keeping this particular branch of post office in Ireland.

In making these few observations I wish the right hon .Gentleman to understand I am making no personal attack upon him. Probably it is rather the unfortunate position, if I may say so, which he occupies that makes it necessary tor us Irish Members to take up this position. I have personal experience of the right hon. Gentleman, and I have always found that he has shown the utmost courtesy in regard to these matters, and to all complaints that have been made to him. I cannot understand why the permanent officials who are always sheltered behind their chief should take up this kind of attitude. I see the Chief Secretary for Dublin on the Government Bench. [An Hon. MEMBER: "The Chief Secretary for Ireland."] Yes, of course. But Dublin is Ireland. I know the right hon. Gentleman is supposed to represent so many departments that it is impossible for one man to fill all the duties he is to carry out. The permanent officials do it all in his name, and he is made responsible. I desire to associate myself entirely with what is said by my hon. Friend the Member for College Green, namely, that we should be satisfied by an impartial inquiry- If the right hon. Gentleman will simply hear this association we will be quite satisfied with results. We know the right hon. Gentleman is impartial, is kind-hearted, and has great experience. But we have no belief in the permanent officials. We want him to take this matter in his own hands. With regard to the question of local postmasters, there has been a good deal of peculiar engineering in cases of that kind. We have very often cases of "importation," and also cases of "exportation." I think we ought to utilise as far as possible our own forces in our own country. There is no doubt where postmasters are imported into localities from this side of the water it gives rise to an enormous amount of dissatisfaction. I hope the right hon. Gentleman will be able to satisfy our legitimate curiosity upon these points, and I trust he will accede to the proposal made by my hon. Friend to grant an open, fair, impartial inquiry into this whole matter, and that he will remove the ban and the boycott of the Irish postal association, because I think he has exceeded his powers in banning a legitimate organisation of that kind, and preventing it carrying out its operations for the benefit of its members. I do hope this debate may have good results. I have every faith in the right hon. Gentleman and in his impartialities, and I am rather entitled to believe he is not acquainted with the full facts of this case, and that if he was the matter would never have assumed the proportions it has assumed at the present moment.

Amendment proposed, to leave out "£26,232,000," and insert "£26,231,900,"— [ Mr. Nannetti ]—instead thereof.

Question proposed, "That '£26,232,000' stand part of the said Resolution."

I think it will be for the convenience of the House that I should follow both my hon. Friends who have spoken in regard to these particular matters. First of all with regard to the question which I consider of great importance, namely, the National Telephone Company, and the licence for 1911. I have given very careful consideration to the matter, and I have been in communication with the National Telephone Company. I agree with what fell from my hon. Friend the Member for St. Patrick's Division of Dublin, who seconded this reduction, that it is of the utmost importance that we should not allow the company to carry on to 1911, and then find that two things had happened, namely, that the construction work should have got into arrear, and that matters such as switch-boards, wires, and so on should be got out of condition, and that the construction staff should have got dispersed. So far as I am concerned I have given the matter the greatest consideration, and have made various proposals to the National Telephone Company. I regret so far—I am not casting any blame—I have not been able to come to terms, but I hope—I am still in negotiation— we may possibly come to such substantial agreement as to carry on the construction work with two objects in view—viz., looking forward to 1911, and, secondly, still keeping the men engaged on the work. Now with regard to the other matters raised. I am afraid I shall have to go into some details. In passing I may say I am indebted to my hon. Friends for the courteous way they referred to myself. But I want to say at once that I take upon myself the full responsibility for all action taken in regard to this association, and I dissent altogether from the theory which seems to impugn the permanent officials, or which seems to suggest that in this matter the so-called permanent officials have been the dominating factor and that the Postmaster-General disagrees. On the contrary, I desire to take the fullest possible responsibility for any action which has been taken. I regret equally with my two hon. Friends that this incident should have occurred, and I agree equally with them in desiring to bring it to an end at the earliest possible moment, but I am afraid I cannot adopt the suggestion made by them. My hon. Friend who seconded said that those who are representing this association entered into communication with me in regard to the matter as soon as this incident occurred, and that I refused to communicate with them. That is not so. On the contrary, when it was brought up in the House by question and answer I said it was open to the association to reconsider the matter, and if they desired to approach me, and meet me, and deal with the matter on the lines I had laid down, I should be very glad to hear anything that they had to say and discuss the matter further. I cannot agree altogether that the position they took up was the position they have taken up at the present moment with regard to this incident.

I will come to that. I do not know if the hon. Baronet was present when the hon. Member for the College Green Division of Dublin spoke. The hon. Member fully explained it. I am going into some detail, and the hon. Member for the City of London will see how the matter stands. Really what I am arraigned for this afternoon is for what is called suppresing an association of Post Office servants in Ireland, and for declining to allow them to ventilate legitimate grievances which they wished to bring forward, and, as one of the hon. Members expressed it, driving those grievances underground. Let me say as regards that imputation that really it is not true. Every postal servant, whether he is a member of an association or not, has the fullest possible right to approach the Postmaster-General in regard to any matter in which he is interested. As a matter of fact, I can assure hon. Members that in regard to this particular class of postal servants there is at present in existence another association if it was necessary for them to make a representation. As to the allegation that grievances would remain unremedied that is not so either. I am as fully open to receive representations from any individual, or groups of individuals, as I have often publicly declared, as I am from any association. Therefore, there is no question of driving these grievances underground, because, whenever they are put before me, I am quite ready to listen to them.

In a letter you have sent to them you have warned certain officials in Ireland to hold no communication with them, and not to deal with any question that may arise. May I take it that they are to deal direct with you?

The point is that as an association for the time being until they have shown a desire to alter their policy and action as an association I am not prepared to receive a representation from them, but I will receive representations from the other association, and if any individual or groups of individuals desire to make representations I shall always be ready to receive any complaints. This particular association was fully recognised by myself as soon as ever I came into office with other associations. With regard to the matter I fully associate myself with what the Seconder of the Reduction said that I have a strong view—I have often expressed it, and I have acted upon it—that it is of advantage to have associations in the Post Office who will be able to voice the opinions and desires of the large number of those employed, because by this system, in my experience, you get a great amount of responsibility and a better representation from the large association than from the small one. But, after all, this privilege of full recognition does carry with it, or ought to carry with it, a corresponding sense of responsibility and of restraint, and the associations that have been recognised have, I venture to say, carried out the authority conferred upon them with discretion and care, and with a desire for the efficiency and discipline of the service; but in regard to this particular association I am concerned to find that for some time past their actions in that respect does not seem to have been on all fours with those of the other association.

They have, like other associations, a service organ called "The Guardian," and' I have no complaint whatever to make against the service organs as a whole. I think they exercise a free vent for the expression of opinions and grievances and criticisms so long as criticism is within proper limits. So far as this particular case is concerned, it appeared to me that, looking at it all round, that that privilege had unfortunately fallen into some abuse, and I suggested that the attention of the associations should" be drawn to the matter. I had no difficulty in this matter with regard to one association. In regard to one association, there was one matter to which I drew their attention, and of which they gave a full explanation, and in regard to another question also the same thing occurred. But in regard to the Irish Postal Clerks' Association, that action did not seem to meet with their approval. May I say this— and I think my hon. Friends will be good" enough, after what they have said, to confirm me in this—that it has been my endeavour since I have been Postmaster-General to carry out a policy of conciliation and also to endeavour to improve the relations between the various classes of the service, and it is because I have that so much in view that I very deeply regret the action which I have felt compelled to take with regard to this matter, and I hope that after reconsideration by the association and so forth the matter may be finally settled, and that the end may be better than the beginning.

But I wish to point out to the House, and something turns upon it, that in this matter I have not acted as my hon. Friends seemed to think hurriedly and, as it were, suddenly banned the association without good reason and without having given them a fair opportunity of considering and reconsidering their action. I have dealt with great patience in regard to this matter, and, unfortunately—I say unfortunately to my deep regret—it has been without avail. One of the hon. Members said that one of the grievances mentioned in this letter was that when I was in Dublin in the first year of office, in September, 1906, I think it was, he says I declined to see the representatives of this association, whereas in England and elsewhere I had on every occasion endeavoured and desired to meet the officials. I am glad to think that wherever I have been I have done so, and I can assure the hon. Member that I have no recollection of having refused to see the members of this association. It is a long time ago, but this I may say, that if they did ask me to see them, the reason why I did not do so—I should have been very glad to see them— must have been my short time there. It certainly was not, moreover, on the advice of any official, or anybody else, that I declined to see them. I am sorry to say the matter has passed out of my recollection, but I can assure the hon. Member that I did not decline to see them in the sense he indicated. It might be due to some misunderstanding, but it is more likely it was due to the shortness of time. May I remind hon. Members that, only a month or two later, I met Members of all the associations, including this particular association. They came to see me at the Post Office to talk over details as to the recognition of the associations, and this particular association was there represented. Therefore, I think my hon. Friend will see that I did not desire to boycott this association as far as I was Concerned. As to what appears from time to time in this particular organ, I have ventured to remonstrate with them in, I will not say a fatherly way but in a friendly way, at all events in regard to some of the matters which have appeared, and I can assure hon. Members that they took it in very good part, and said they would look into the matter and see what could be done.

A little later—two months later—there were some further articles to which I think objection was taken, and I thereupon communicated with the Secretary of the Post Office in Ireland, and asked him to invite the members representing the association to meet and talk the matter over with him. I should like to read his private report, not written to me but to the Secretary of the Post Office in London, in regard to this interview. This letter from Mr. Egerton is dated 25th January, 1907, and is as follows:—

An attack was made on the overseer at Cork, and this is how the article ends:— I had no means, even if I desired, and I did not desire, to destroy the association. I should be very glad if friendly relations were again resumed, but I did not think, as Postmaster-General, as I believed the action of the association was leading to the detriment of the service in various ways, it was right to continue facilities and advantages and recognition to the association which were given, because, in my opinion, associations properly conducted are to the advantage of the service. It is not a question of destroying or smashing the association, but of withdrawing these advantages and facilities under the particular circumstances of the case.

I desire to appeal to the House in regard to this matter. I have no personal feeling in reference to it, but I think, as head of this Department, I must maintain as far as I can the discipline of the office, and I must protect those who are carrying it out. At the same time, I am always open to any representation in regard to the conduct of any supervising officer. If it is thought by the rank and file that a particular officer is exceeding his duty and is conducting his duties in a way which is to the detriment of the Department, I am always open to consider the case. Such representations as I have had I have always looked into carefully myself, and I should desire always, while protecting the supervising officers from what I consider unjust and personal attacks, also to protect the rank and file from any injustice from the supervising officers.

You have read the paragraph complained of in reference to Belfast and Cork, but have not touched Carrick-on-Shannon. When these articles were appearing did the Department take any steps to ascertain whether there was any justification for the articles before coming to the conclusion that they did?

I did not refer to Carrick-on-Shannon because I thought the hon. Member read the material parts about it. In regard to these three cases, before taking action I had careful enquiries made into the particular allegations, especially in the Carrick-on-Shannon case, and I convinced myself that in none of these three cases were these criticisms and condemnations deserved, but I went into them very carefully because I did not think it fair to deal with this matter in the drastic way I did before seeing how far they were justified. I would ask the House to be good enough in such a matter as this to give me their support. I really do not think it is possible for the head of a Department to carry out his duties unless he receives in such matters as this the support of the House of Commons. I am asking for this. That is as a matter of internal administration. It is a matter which must really be settled between the Postmaster-General and the members of the staff concerned. I am open to receive any further communications from this Association if they really are prepared to alter the policy which they have carried on.

I have not a single word of complaint against my hon. Friend for raising this matter or for the tone in which he raised it, but I make an appeal to him and the hon. Gentleman who seconded the Amendment and to the House generally to leave the matter in my hands. My record in the last three years in regard to this matter is, I hope, sufficient to make the House feel that, though I may be taking drastic action, I have some justification for it. But so far as I can, now and in the future, I desire to carry out a policy of conciliation, and to bring together the various grades and ranks of the service.

With regard to the question of engineers in the South of Ireland, though it is in a sense a Post Office question, it is really a War Office question. My hon. Friend said we were dumping down in the South of Ireland a lot of very inefficient engineers. That is not so. These Royal Engineers are probably as efficient a body of men, from the point of view of the efficiency of the telegraph and telephone service, as could be found anywhere. They have been working for years past throughout the South of England, and I do not think anyone who knows anything about their work could speak too highly about them. We are not dumping down inefficient people, but are sending our very best. The reason for the alteration is in the first place that in time of war it would be a very serious thing to denude that part of the country south of the Thames of engineers working the telegraph and telephone system, erecting poles and so on, as they would be immediately called away from their civil work. Secondly, I understand that the new amount of telegraph and telephone work being put up in the south of Ireland is much more the class of work which requires experience of that kind, and that work is practically complete south of the Thames. I hope my hon. Friend feels that we are doing our best to diminish any difficulty which may arise, and to find places for such men as must necessarily be displaced by an alteration of this sort, and that as far as their pecuniary position is concerned these clerks and others will not suffer. I hope that may be satisfactory. I will certainly do my best in the direction my hon. Friend desires in regard to this matter.

I can only give the answer I have given many times personally and by question. I am seeing what can be done. My hon. Friend desires that the whole of the Irish Savings Bank business should be done in Ireland, but I am afraid that would really be no advantage to Ireland, but a great disadvantage, because in a matter of that sort, unless you make it universal throughout the whole country, it is a real disadvantage to the depositors, apart from the question of general administration. I have never been able to see my way to meet my hon. Friend fully in the matter. There is one branch in which I am making enquiries, and I should be glad to meet him upon that, but there are material difficulties in the way of his suggestion, though I quite understand that he wants Irish Savings Banks for Irishmen.

I wish to draw attention to the fact that there is in Ireland a certain number of postmen who are not entitled to pensions because when they joined the service the present regulations were not in force. The case of these men is very hard, because now when they are leaving the service, owing to old age or various causes, they have nothing to fall back upon. I would be very glad if the Postmaster-General would give the case of these men his attention with the object of seeing if something cannot be done for them. There is a benevolent fund, and I am much indebted to whoever administers it, because on more than one occasion I have been able to obtain assistance from that fund for the purpose of relieving postmen. Possibly, if there were no other way of meeting the difficulty, it might be met by increasing this fund with the object of giving pensions or some small allowance to such postmen as under existing regulations are not entitled to pensions. Probably it will be found that there are not very many men in this position, but I am personally aware of some cases of great hardship of men who have served the Post Office faithfully for many years, without any complaint being made as to their conduct, and who now in their old age have lost their positions. Some of these men have, to my knowledge, nothing to live on except the charity of their neighbours. I would ask the Postmaster-General to consider whether something might not be done to meet such cases either by increasing the fund referred to or by revising the regulations for pensions.

I would like to draw attention to the position of telephone employés, as to which there is considerable unrest. A large number of these employés have been in communication with me from Manchester on the subject, and I want to appeal to the Postmaster-General not to allow the arrangement between the Post Office and the National Telephone Company to militate against the position of these men. There is a considerable number of men on the construction staff of the National Telephone Company who have been for a considerable number of years past in the service of the company, and were looking forward to being in that service for many years to come, doing the work that is necessary to be done. Now I understand that the Telephone Company, because they are to be bought out in two years time are reducing the amount of constructional work, and although the Post Office are prepared to take over those men who may be in the service of the company in the year 1911 it is very probable that a considerable number of men will be discharged between now and 1911; in fact such discharges have already begun. The Postmaster-General was good enough to say he hoped to arrive at some arrangement between the Post Office and the National Telephone Company to enable two things to take place, the work of construction to proceed properly, and the men to remain in the service. I do not want to force any agreement between the Post Office and the Telephone Company, but I would appeal to the right hon. Gentleman, if he is not able within the next few weeks or month to come to some arrangement with the company, to take into consideration the position of the men to whom I have referred, and to make some provision for them such as placing them on a list for employment in the Post Office according as vacancies arise, or otherwise to make some arrangement that they will not be thrown out of employment at this period of their lives; and I hope that some effort will be made by the Post Office to take them over, and bridge the gap between to-day and 1911. I am sure that the Postmaster-General will take the matter into consideration, and do what he can to meet the case of these men.

In order to understand the extent of the questions that have been raised I would like to know whether the association of employés that has been referred to is a purely Irish body, and also if it embraces the whole of Ireland?

I wish to refer to a matter as to which the right hon. Gentleman has already been communicated with—the inconvenience caused by the existing post office arrangements for dealing with letters addressed in Irish. Letters addressed in Irish which come into the Killarney office are sent on to Dublin to have the addresses translated, although some of the staff in Killarney are able to do the work of translation. The same state of things obtains in other offices throughout the country. It would be a great convenience if arrangements could be made to avoid the delay caused in this matter by the existing arrangements. The right hon. Gentleman, more than any other Minister we ever had, has been very kind in making arrangements to meet with public convenience, and I hope that he will Bee his way to make this concession to national sentiment. His doing so would be much appreciated. No difficulty would be caused if the translation took place in the local post office. There is scarcely a post office in the country now where letters could not be translated and delay thus saved.

Another matter to which I wish to refer is the appointment of sub-postmasters. I know the difficulty of the right hon. Gentleman in reference to this, but the practice in Ireland has been too often to appoint men with pensions over the heads of other applicants from the locality who were quite capable of performing the duties. One of the results must be to swell the ranks of the unemployed in Ireland. When one of these little appointments has to be given it should be given to some deserving applicant from the locality. I know the right hon. Gentleman will consider both the matters to which I have referred, and I trust that he will be able to arrive at a favourable decision.

I understand that the Postmaster-General has given such satisfaction in dealing with most of the points put forward in the Motion of my hon. Friend that he is prepared to withdraw it; but there is one little point to which I would like to refer, and that is the position of those rural postmen who have the responsibility of carrying the mails by horse and car from one town to another or one village to another in rural districts. I speak in this matter not only for the west of Ireland, but also for rural districts all over Ireland. These men have very responsible duties to discharge. Possibly a man may have a contract for carrying the mails in the way described. He may employ a responsible carter who has the whole of the mails in his charge. The status of the man who occupies the position of car driver for the conveyance of the mails should be recognised by the Post Office, and his salary should be fixed by the Post Office. He should have a regular salary from the Post Office, and it should be on such a scale as to ensure that the work will be done properly by a responsible person. I think that the object of my hon. Friend in his Motion was to have recognition given to the Association of Postal Servants. I think all that has been satisfied now. Personally I may say that in the rural districts we have no cause for complaint. Since the right hon. Gentleman became Postmaster-General he has endeavoured to carry out the duties of his position with satisfaction to all.

In reference to the request of the hon. Member for Sligo on the subject of wages for drivers, if he will give me any particular case in which he considers that the wages paid to car drivers of a district are below what is fair I will certainly try to meet him if I can; because it has been stated that there is a large number of places in which the wages of the car drivers under contractors are not what they ought to be, according to what the Board of Trade tell me should be the proper rate; and therefore if I am given any particular case I shall be glad to inquire into it. I entirely sympathise with the case of the postmen referred to by the hon. Member for Wexford who have no pension. The material difficulty in dealing with it is that I have no financial control over the fund to which he refers, and which does excellent work. I have a small fund at my disposal for certain hard cases, but I do not know how far that fund might be increased; but the matter would require to be looked into. It is a very difficult case, and I am glad that my attention has been called to it. In reference to the remarks of the hon. Member for Kerry, who states that letters addressed in Irish are sent up to Dublin to be deciphered and re-addressed, my general view about letters addressed in Irish is this: I think that the other letters ought to have precedence, but, at the same time, where a local official can decipher Irish I think he ought to do it instead of sending the letter up to Dublin. Of course, there is a very large number of small offices where they have no officers who have a knowledge of Irish, and in such cases they must send the letters to Dublin, but I think it ought not to be considered that there is any delay in this. If the clerk has to readdress, obviously it is his business to deal first with the letters which he has not to readdress. I will inquire into the Killarney case, but my general proposition would be that where a clerk in the local office understands Irish, he should readdress the letters there instead of sending them on to Dublin.

Russia and Persia

moved to reduce the Vote by £100, in order to raise an urgent Question of foreign affairs. He said: When I mentioned this matter on the debate on the Address, I did not have the fortune to have a reply from the Foreign Secretary, which many of my hon. Friends and myself are anxiously awaiting. Nobody will deny the gravity of the situation in Persia. But few amongst us realise how closely it affects direct British interests. Persia is our next-door neighbour in India; and our frontier—that is to say, the frontier of Baluchistan, which we administer— marches with the frontier of Persia for a distance of no less than 400 miles. If Persia were to fall into the hands of a great military Power like Russia, then we should have to defend that frontier against that Power. It is not a frontier upon which there exists any natural obstacle, in the shape, for instance, of a great range of mountains. The two Powers would meet across level plains. But that is not all. If Persia were in the possession of Russia, then Russia would entirely envelop the Afghanistan position, and we should be virtually responsible for the defence of a frontier of no less than from 1,200 to 1,500 miles. It is quite obvious—it must be obvious to every hon. Member—that with the handful of men that we keep in India—a number of men which is about equal to that which the Turks keep in Macedonia—it would be quite impossible to defend a frontier of this length. There fore, we should be face to face with this alternative: either we should be obliged to adopt conscription in this country and become a great military Power, or we should have to write off our Indian Empire. That being the magnitude of the situation which we have to face, none of us can afford to be indifferent as to what is now going on in Persia. I should like to say this, further, that if we show indifference towards what is passing in that country, then we are preparing for ourselves a rude awakening—an awakening which, I venture to say, will be not less sudden and, I may add, not less unforeseen, than that which has been brought about by the recent naval scare in this country. I am not going into a long historical disquisition upon Persia; but let me briefly say—and this is important—that for a considerable period of of her history Persia has been in the hands of a Turkish dynasty. It cannot be said that she has greatly prospered under this dynasty. The Persian people are one of the most gifted peoples in the world. Yes, they have given the world some of its; greatest treasure both in literature and art. For a long period of years every natural impulse has been stifled, and their have been reduced to the miserable condition in which they now find themselves, and which they bear in the esteem—not very high—of the world at large. It was the fixed policy of the Shah Nasr-ed-Din, who had a very long reign in Persia, to throw every obstacle in the way of talent rising to the head of affairs in his country. He encouraged nepotism, he encouraged the sale of public offices, and if any man tried to govern honestly he immediately found that that was not the way to royal favour. That produced a profound and far-reaching effect upon the national character. He was succeeded by his son, Muzaffer-ed-Din, who made very costly voyages to Europe; and in Paris, London, and at other places purchased expensive toys in the shape of automobiles, gramophones, and so forth. He spent vast sums of money in Europe, and involved his country in loans, which were largely financed by Russia. Towards the close of the reign of this Shah the Persian people rose in revolt. No less than 15,00a of them took refuge in the park which surrounds the British Legation in Teheran. They demanded that Persia in future should be governed in a Constitutional manner. In August, 1906, this Shah promulgated a Constitution; and a committee of popular leaders was called together in order to draft the electoral law. They drafted this law after careful consultations, And in September of the same year the Shah ratified the electoral law. In October, the Assembly, or Mejlis, met and at once set to work upon the preparation of a Fundamental Law governing the relations between the Persian people .and their Sovereign. They were at work upon that law for a considerable time, and considered all the aspects of the question very carefully. On the last day of December the Shah ratified this Fundamental Law, and the present Shah, Muhammed Ali, signed it in conjunction with his father. I just narrate these facts in order to show that this Constitution, for which the Persian people have taken up arms, is not a thing got out in a hurry by the monarch or the people. It has been drafted with extreme care, deliberated upon by the National Assembly at length, and it forms a solid code of Constitutional law governing the destinies of the Persian people. Shortly after the ratification of this Constitution and Fundamental Law by the Shah he died, and was succeeded by the present Shah.

It was very noticeable that when the present Shah succeeded to the throne, he issued no invitation to Members of Parliament to attend his coronation. That is the key note of his later actions, and was very much remarked about at the time. He succeeded at the commencement of January, 1907, and in August—a date useful to remember—the Anglo-Russian Agreement was signed. Persia took great alarm at the conditions, as they thought that they probably foreshadowed the partition of Persia. They were reassured in a very important despatch by the right hon. Gentleman the Foreign Secretary. They were told that the Anglo-Russian Convention must not be construed in the sense of the partition of Persia at all. The despatch went on to say that the desire of the signatories of the Convention was to come to an agreement which "would prevent future difficulties, by the guarantee that neither Power should aim at acquiring influence in these parts of Persia which are adjacent to the frontier of the other." But "not only do they not wish to have at hand any excuse for intervention, but their object was not to allow one another to intervene on the pretext of safeguarding their interests. The two Powers hope that in the future Persia will be for ever delivered from the fear of foreign intervention."

That was the statement of intention on the part of our Government. The Persians were told that the Anglo-Russian Convention ought to be considered as an instrument designed to promote non-intervention of the two Powers in Persia. Then, in June, 1908, came the coup d'état in Persia. The House will be familiar with the circumstances. The Assembly, or Mejlis, was bombarded by a body of Persian Cossack troops, commanded by Russian officers. It was these Russian officers, on the active list of the Russian Army, who gave all the directions for the bombardment of the Parliament House. It has been stated, and it has not been denied, that previous to this bombardment the Russian Minister at Teheran went down to the Minister for Foreign Affairs, and said that the Mejlis had gone too far, and that, if it attempted anything further, the Russian Government would stand by the side of the Shah. The Persian people were confronted with this difficulty—either they had to face Russian intervention, or they had to give in. They thought it would be better to submit to anything rather than give any pretext for Russian intervention. They recognised that the intervention of Russia would be the death blow to their national independence, and they chose the alternative of giving in. Many of the Parliamentary deputies narrowly escaped with their lives; some of them were taken in chains to the Shah's palace; many of them fled to Europe; others are scattered in all parts of the world. They formed there revolutionary committees which have done so much for the development of the Constitutional movement in Persia. With the whole of Persia in revolt, the one point is, the cardinal point, that the Constitution must be restored. To enable the House to judge of the extent to which this popular movement has gone, I will quote from a hostile source, namely, from the correspondent at Teheran of the "Novoye Vremya," whose despatch was dated 28th January, and appeared in that journal on 16th February. He wrote:— largely carried on by Caucasians. We have several journals—the "Manchester Guardian," the "Daily News," the "Daily Chronicle," and other newspapers— which have sent out a correspondent to Tabriz. I have the honour to be acquainted with that correspondent, Mr. Moore, who, it will be agreed, is thoroughly reliable. On Friday, the 19th, only last week, he wrote as follows:—

It is astonishing to those who know the country to note how this idea of a constitution has made progress. It is all very well to talk in the abstract of "humanity and justice," but we find that these people have not only adopted such watchwords, but have also put them in practice. Of course, warfare among a people like the Persians must be cruel, but what happened the other day? Here is a tribute to the Nationalists:— régime the people would probably develop their own resources. Another opposing force derives from those who have fears for India; that this movement might spread to India, and, in the case of the Russians, that it might spread to the Caucasus. Lastly there is "The Times" newspaper. I think there has scarcely ever been a popular movement in any country which has not been opposed by "The Times" newspaper.

Only when it succeeded. Take the great movement for the regeneration of Italy, the movement started by Garibaldi, and what did "The Times" write in 1849—

It is open to the hon. Member to discuss the Vote for the Foreign Office, but the hon. Member should keep a closer grip of the question.

I only wished to develop the close analogy that exists between the great public movements in other countries and that which is proceeding in Persia. What are the actual needs of the present situation? What we want obviously is that the Persian people should regain that Constitution which they framed with so much care, and in defence of which they have taken up arms. We do not want and they do not want and do not ask that some form of Constitution should be elaborated. They have enjoyed their Constitution for nearly two years. It was granted by the late Shah. The present Shah has repeated his adherence to it.

I ask the right hon. Baronet the Secretary of State for Foreign Affairs why should not Great Britain and Russia ask the Shah, and counsel him to restore this Constitution? As to the attitude of the two Governments, I have not been able to find out that they have gone to the Shah and have asked him to restore the Constitution. I have been told, within a few weeks ago, by high personages, that the two Governments have never gone to the Shah and unequivocally asked him to restore the Constitution. They may have advised him to restore a constitution. That means elaborating a new constitution. The right hon. Gentleman gave me a specific answer the other day. I asked him "whether any joint representations have been made by His Majesty's Government and that of Russia to the Shah of Persia to the effect that His Majesty should redeem his pledge to restore the Constitution and thus bring the present disorders to an end."

The answer was this:— coup d'état on the 23rd June, 1908, the Shah printed and distributed broadcast over the whole country the terms of a proclamation that he would convene the Parliament in two months. Nothing was said in that proclamation about some new form of Parliament or new electoral law. That is his pledge, and what I desire is that the two Governments should go to the Shah now and say, in unequivocal language, "You have pledged yourself to restore the Constitution—restore it." The House may ask: But supposing he refuses? My answer is a very simple one. Only yesterday, 23rd March, we were informed by the correspondent of the "Manchester Guardian" in Tabriz, that if Russia

Does the "Manchester Guardian" intend to withdraw the Russian officers?

The Russian Government, not the "Manchester Guardian." I understood the hon. Baronet to suggest that there was no means of bringing the Shah to book if he refused to restore the Constitution. You have got a Convention with Russia, which Convention has been officially described as an instrument for securing non-intervention. But it is intervention if one of the two Powers send officers on their active list to take one side against the other. All we ask is that those Russian officers shall be withdrawn.

Those officers have been there for the last twenty years. They were there when you were there.

However that may be the Russian officers have taken part against the Nationalists on behalf of the Royalists. It was they who trained the guns on the Parliament House and dispersed the Persian Assembly. The Russian Government, acting under pressure in their own Parliament, instructed those Russian officers to remove themselves from the Russian active list, in order that they shall now be better able to help the Royalist party against the Constitutionalists. I venture to request that, as we entered into this Convention, we should say to Russia plainly, "If you wish Persia to be independent and develop her prosperity, then you must have the constitution. If you want the Constitution, then withdraw the officers' assistance from the Shah." Let me say I do not want to be understood as impugning the good faith of the Russian Foreign Office. I believe that the Russian Foreign Minister, M. Isvolsky, is sincerely anxious to co-operate with this country to produce a better state of Government in Persia. But it is evident that the Minister for Foreign Affairs in Russia does not control the policy of the Russian Government. There are influences behind him.

This makes it a really great question, and we ought to consider whether it is possible to have an entente or alliance or close understanding with a Government like that of Russia—a Government in which the Minister for Foreign Affairs does not exercise full control over Foreign policy. I say it is a very grave matter for us to consider, because quite recently the City of London advanced no less a sum than £6,000,000 to the Russian Government. That was the direct outcome of this entente with Russia. This is really an issue affecting ourselves and affecting the interests of our Indian Empire, and it is also an issue upon which depends the fate of one of the most interesting and intellectual of peoples—a people that is struggling to enter the comity of nations free from an internal or external yoke.

In supporting the views which have been put forward, may I point out that the Minister for Foreign Affairs has intimated week after week that the Shah of Persia would restore the constitution which had been destroyed in that country. In spite of those repeated—I will not say assurances—hopes held out by the Minister for Foreign Affairs, I think everyone will agree, including the right hon. Gentleman himself, that affairs are going rapidly from bad to worse in Persia. The condition of anarchy and civil war which prevails in that country will make it exceedingly difficult for foreign countries to abstain from interference.

And really I think it is time for the Foreign Minister to reconsider the whole position he has taken up with regard to affairs in that unfortunate country. We have been told that the Governments of Russia and England are in absolute accord—this is one of the things I am most anxious to impress on the House—in the advice which they have given to the Shah and attitude and policy they adopt towards that monarch. We are absolutely in the dark, and kept persistently in the dark, as to the nature of that advice and policy. We have been told over and over again by the Secretary of State for Foreign Affairs that the two Governments have repeatedly recommended the Shah to restore the constitution to the people. But the detailed Memorandum communi- cated by the Russian Government to this Government in December or January has not been published, and we do not in the least know, therefore, what is the nature of the Memorandum and what is the policy which has been recommended by the Russian Government and by this Government, as we are told that the two Governments are in exact accord with a view to enforcing on the Shah not the restoration of a constitution which is absolutely no use to those unfortunate people, but the restoration of the constitution which was destroyed by the Russian officers.

That is a point of primary importance, because, as long as this Government and the Russian Government confine themselves to giving platonic advice to restore, advice leaving him to see some Russian advisers to know the character of the Constitution, then, I say, such advice is a mere mockery to the persons aggrieved, because, in order to appreciate the situation we must recall what took place in June last. In the month of June last there was a Government in Persia. That Government, whatever criticisms may be levelled against it, was maintaining order. We must remember that up to the month of June, until the destruction of their Parliament, there was no complaint of danger to the property or lives of any foreigner in Persia, a fact which ought always to be put to their credit. But in the month of June, within a fortnight or three weeks of the meeting at Reval, the Russian officers attacked the Persian Parliament. And this, further, should never be forgotten, that the Persian Parliament was perfectly well able to defend itself. But, just at the crisis, when they were getting ready, and were quite prepared to defend themselves, they were informed by the Russian Minister that if they went too far, Russia would intervene in favour of the Shah. What was the result? These unfortunate men—many of them Nationalists in Persia—were seized upon; some were sawn in two, others had their heads cut off or were otherwise put to death. I say that for the Foreign Minister, in face of these attacks, which have occurred quite recently, to come down here and tell us that he has recommended the Shah to give a new constitution according to his own sweet will is a perfect mockery. We have over and over again asked the Secretary for Foreign Affairs whether these Russian officers were in the service of the Shah or of the Czar? We were told that they were under the orders of the Shah. But what turned out to be the case? The Russian Minister himself, months after that statement had been repeatedly made by the Secretary of State for Foreign Affairs, having been recalled by M. Isvolsky to give explanations, stated in an interview in one of the leading journals in St. Petersburg that these Russian officers were, and had been all along, under the orders of the military governor of the Caucasus, and that he had great cause to complain that they did not take his orders or advice. Therefore all these statements, made in perfect good faith—and sometimes amid considerable heat—that these Russian officials were acting under the orders of the Shah have been contradicted. We are entitled to say that it was the Russian Government that overthrew the Persian Parliament. There is no use in denying that, because it has been admitted in St. Petersburg. Very well; what is the fact? Russia let loose anarchy in Persia, and I am perfectly convinced that, in spite of all that has been said by the Foreign Minister, that if Russian influence were withdrawn the Nationalist party within three weeks would be in complete possession of the Parliament in Persia, and peace and order would be restored. If it be true that Russia is responsible first for the destruction of the Parliament—the only power which was able to keep order—and next for maintaining a state of civil war, then, I ask, can anything be more cruel than that this state of things should continue? These unfortunate people are passing through a period of civil war and anarchy, which every week and month is making the situation more hopeless for them and more embarrassing to all those neighbouring nations who have interests around. What has been the latest development? The latest development is that a Russian warship last week came down the Caspian conveying 50 Cossacks and three quick-firing guns, and when a question was put to the Foreign Minister he admitted that the British Consulate had made no demand for assistance, and the officers of this country had no information to lead them to suppose that lives and property were endangered. Even in "The Times" newspaper, which has marked and singled itself out as the most formidable and dangerous enemy of the national movement, there has not been, from beginning to end, a single assertion that in these districts—including three fourths of the entire area of Persia—there has been any attack made on property or life. The danger which I know is hanging over the Nationalists of Persia at this moment is most cruel and monstrous. The danger is that the Russians may make the excesses of the Royalists an excuse for invading the country and putting down the national movement. In all these times of extraordinary provocation and difficulty no charge of disorder or cruelty or robbery has been levelled against the Nationalists of Persia. "The Times" newspaper had, some time ago, a correspondent at Teheran, and he sent to this country a most interesting series of letters—the most interesting I have ever read. This gentleman suddenly received a telegram in the month of September to say that he was recalled. He was recalled because he had been sending letters friendly to the Nationalist party, and "The Times" has now sent out a man to write down the Nationalist party, showing the extraordinary wires that are being pulled against these unfortunate people. I do not profess to know or to have expert knowledge of the Persian people; but, as far as I can understand in this matter, they have had to struggle against the basest and most abominable conspiracy that was ever invented. When men tell us it is folly to sympathise with these unfortunate Persians, I say it lies in nobody's mouth to say that, or to say that you cannot apply Western ideas and Western institutions to Eastern people. Who would have said three years ago that the Turkish people would be able to overthrow their then régime , and to establish by a bloodless revolution one of the most remarkable and glorious Governments such as now exists? Why, I met a man the other day who told me it was absolutely like going to America when he went out to Constantinople; he found it one of the freest cities in Europe, whereas when he went out four or five years ago it was in a state of tyranny. If that is so in Turkey, why should it not be so in Persia? We are told now that leaders of the Mohammedan race think there is nothing inconsistent with human liberty. The head of the Church in Persia has taken the side of the constitution and of liberty, and he has excommunicated the Shah. He has taken the side of the Nationalists, and is one of their strongest supporters. It is not reasonable to sneer at these people. It is only reasonable that we in this country should sympathise with their efforts. The Government of the late Shah was one of the most detestable Governments ever known. All we ask is that these people should be let alone to work out their own fate. It is the interference of the Russian Government, the presence of Russian officers, and the dread of Russian troops coming in that has kept the country in a state of civil war and encouraged the Shah, much to the danger of his life, to go on defying his people. My belief is that if he had been told authoritatively six months ago that he had to settle with his own people, and that he would get no countenance or support from Russia or this Government, the whole matter would have been settled long ago.

When the Anglo-Russian Agreement came before the House for consideration I had some criticisms to offer in regard to what I feared was a sacrifice of British commercial interests in Persia, and various other dangers to the British position in India which might arise in consequence of certain concessions made to Russia in regard to Persia; but the development of events since then has profoundly convinced me that on the broader grounds of international peace and in the interests of the independence and integrity of Persia, it was a wise act on the part of the Secretary of State to conclude that Agreement. Having regard to the co-operation of England, Russia, and France in the Near East, in the present Balkan difficulty, I consider that even to secure the measure of cooperation which we now have for the preservation of the peace of Europe, it was wise to conclude that Convention. But I approach this subject with a somewhat different view of the policy of my right hon. Friend. We have lately had an example of how his influence and that of the Government was given to the Young Turks movement in Turkey, and how the Young Turks were manifestly benefited by having on their side the influence of the British Government in securing for Turkey the measure of Constitutional Government which they now enjoy. That being so, I can have no ground whatever for thinking my right hon. Friend is less in earnest or less sincere in his desire to secure in co-operation with Russia representative Government in Persia, and to preserve the independence and integrity of that country. My own conviction is that had there not been in existence the Anglo-Russian Convention a great part of Persia would to-day have been in the military occupation of Russia. I quite agree, however, with the hon. Member for Ripon that matters are not progressing as satisfactorily or as rapidly as we should desire in the direction of the setting up of a form of representative Government in Persia. But I am convinced that the matter is in wise hands when it is under the control of my right hon. Friend. We have in him a Foreign Minister who, perhaps above all his predecessors, is acknowledged to be a Foreign Minister not merely for a political party, but one enjoying the confidence of the whole nation. We know with what consummate ability, tact, and judgment he has conducted the arduous and responsible duties of his office during the last three years, and personally I feel absolute confidence in leaving the question of Persia in his hands. I should like to have seen the Russian officers withdrawn from Teheran, but I know that the head Russian officer was there seven years ago when I visited Teheran occupying precisely the same position that he occupies to-day. I am sure that we shall have from my right hon. Friend a statement reassuring us to this extent—that it is the intention of His Majesty's Government to secure representative Government for the Persian people, and, in co-operation with Russia, to preserve the independence and integrity of the country. I take the deepest interest in the future of the Persian people. I believe that the present co-operation and the absence of Russian troops in force from the Persian dominions indicate that the Anglo-Russian Convention has had the effect of preserving the integrity of Persia to a degree which would not have obtained if no such Convention had existed.

I hope that the right hon. Gentleman will be able to reassure us also with regard to the question of railways in China. I trust that he will be able to tell us that His Majesty's Government are taking some steps to secure, in connection with the Hankau-Canton Railway, the protection of British interests, inasmuch as Hongkong city advanced a million of money towards that railway on condition that British capital should receive the first option of building it. I hope he will be able to assure the House that negotiations are in progress to secure for the British this pre-emption for the building of that railway in co-operation with the French, and possibly with some participation of the Germans, on such terms and conditions as will safeguard the British investor. Further, I should like to make some reference to the negotiations that may be going on between this country and our allies the Japanese in regard to the construction of the Hsin-min-tun Railway by the Chinese themselves in the north.

In conclusion, may I say that not only in the matters to which I have referred have we proof that His Majesty's Government in the Department of Foreign Affairs are doing all they can to promote peace in the world and amity and concord between us and foreign nations, but there is the astonishing total of no less than 18 agreements entered into with foreign nations by the present Foreign Secretary with the object of removing causes of friction. Taking a broad view of our national responsibilities and the responsibilities attaching to a world-wide empire, and especially bearing in mind what has happened in Europe during the last fortnight to cause us to consider questions of national defence, I am driven more and more to the conclusion that we could not for one moment contemplate extending those responsibilities. Perhaps in some directions they are already too great. But it certainly does behave us, especially in the Department of Foreign Affairs, to do all we can to secure the entente cordiale not with France and Russia alone, but with all the nations of the earth, and to avoid giving occasion of offence in any part of the Empire, the responsibility to defend which is so enormously great.

I desire at once to acknowledge the courtesy of the Secretary of State in permitting me, before he replies, to bring before the notice of the House what I consider to be a grave infraction of well-known constitutional usage in matters of foreign policy. It is true, as the hon. Member opposite has just said, that within the last few months no fewer than 18 agreements and treaties have been entered into by the Foreign Secretary, but everyone of those treaties was ratified and settled before the House of Commons knew about it. It is one of the great anomalies of the Constitution that, theoretically at least, not one syllable of the most trivial Act of Parliament can pass without the assent of both Houses of Parliament; whereas matters of highest international moment, involving questions of peace and war, are taken from the purview of the House; because once the thing is done, criticism is rather of an academic character. I shall not go into the alleged reasons for this. I simply state the substantive fact that this House of Commons entrusts to a Com- mittee the whole management of our foreign affairs, and must be left in the dark until these matters are settled. The one thing that should satisfy us that the management of these matters is in the best and safest hands is that they are absolutely under the control of the Secretary of State for Foreign Affairs as our agent. If they are taken out of his control, directly or indirectly, if he delegates his power to permanent officials in the Foreign Office, and if, above all—and of this I speak with great deference and respect —His Majesty the King is placed by the advice of his Ministers in the false position of going abroad with three permanent officials to enter into negotiations with a foreign Power at Reval, and if, I will not say conclusions, but at least honourable understandings are come to in regard to matters relating to foreign affairs, which are delegated by this House to the Foreign Secretary, and if the Foreign Secretary, directly or indirectly, gives to him, or to other delegates, the duty of negotiating, we may be placed in international complications, and the Foreign Minister likewise may be placed in complications and in circumstances he cannot control. What I would maintain is that henceforth the unbroken constitutional usage should be maintained, and that the sole and only medium of communication on matters of State with foreign Powers should be the Minister who is absolutely responsible to this House, and who can be immediately called to book in regard to his action. It would be in his own advantage as well as ours. No one can do anything by an agent as well as by himself. The Foreign Minister cannot act through Sir Charles Hardinge, who is a permanent official, and who was the Ambassador selected again and again for these missions, as he would act himself in these negotiations. The Foreign Minister would feel himself bound in regard to arrangements made by the permanent official to justify to us a line of policy which he may not have adopted at all. There is another serious difficulty in these negotiations. We must recollect a case which occurred a considerable time ago. It was a case of considerable interest for some of us who pay attention to the working of our Constitution. The fact that the monarchy of this country is a limited monarchy, and bound by Constitutional restraints, may not be perfectly well known to foreign Ministers, who probably think that when our King is dealing with them he is dealing with them just as the Emperor of Austria or the Emperor of Russia would do. I say, without fear of contradiction, that before the present reign no King of England has ever gone on a tour or a visit of a formal character to the heads of foreign States, whether officially or otherwise, without being accompanied by a Minister, who was at his elbow when any official business was transacted for us. No King has ever done without the Secretary of State for Foreign Affairs, who is responsible to us for every foreign communication. That rule was first abrogated—well, I do not say abrogated—but on the advice of Lord Lansdowne that practice has not been followed. Whether the results be good or evil is a matter which does not affect us. The results may be all for good. I have reverence for the high motives of the King in his desire to do good. But it is not a matter of results we are discussing, it is a matter of principle. Our Constitution works splendidly so long as there is a monarch who is not very much inclined to take an active personal part in public affairs, but when that occurs, when there is absolute and responsible advice given to Ministers by the monarch, there is a very grave danger to the Constitution. I think on all occasions since the present Government came into power the King has gone without the Foreign Minister on formal missions. That was protested against very frequently, but the matter, if I may say so, really came to a climax at Reval last June. The Reval tour was not a tour such as one great prince pays to another. It was a tour with every circumstance of State attached to it, except that His Majesty had not the presence of a Minister. It was a tour in which there was attached to the King Sir Charles Hardinge, Permanent Under-Secretary for Foreign Affairs; Sir John Fisher, the official head of the Fleet; and Sir John French, a head of the Army. The King went with these three gentlemen who have expert knowledge, and there were negotiations, but what they were we do not know, the Foreign Secretary or a Member of the Cabinet not being present. That is an unparalleled thing. I would ask the House to remember that we have no control over the making of treaties. They are outside our purview before they are ratified, and therefore it becomes all the more essential that direct responsibility should be affixed to the Foreign Secretary, and that he should not be under the temptation to which very many would be inclined to yield, and which some would find irresistible, of saying, "Let us go on with it." On these grounds I say it is an objectionable and wrong thing. Parliament as now constituted exists under the Act of Settlement—the very same statute by which the King rules. He is a statutory King. By the Third Article of the Act of Settlement it is provided that the King should never leave the realm without the sanction of Parliament. That Article has been abrogated, but the fact that it was enacted showed the strength of the feeling of the people in regard to that matter. Until the reign of Queen Victoria, when the Sovereign did leave the country, what was the position? It was that a Council of Regency was appointed to take charge of the affairs of the country in his absence. That occurs in the Lord-Lieutenant's court now. The Lord-Lieutenant never leaves Ireland without Lords Justices being appointed. The King now leaves this country without Lords Justices being appointed, and he leaves the country without a Minister in attendance. A former Minister of the Crown had a struggle with George IV. in regard to this matter, and he never allowed the King to have consultations with foreign Ministers or Sovereigns except in his presence. The rule was so strict that when foreign Monarchs sent personal letters to the King sometimes these letters were returned, and if they were not returned, they were given to the Foreign Secretary. Does that occur now? We know very well that a sensation was produced last February by a letter which the German Emperor directed to Lord Tweedmouth. We also know very well of the sensation created recently by the amazing interview in which the German Emperor referred to the letter he sent Queen Victoria. It is impossible not to infer that letters may have been sent back to the German Emperor affecting our position by irresponsible persons. The responsibility in these matters is the Foreign Minister's, and his alone, and there should not be indirect influences at work. There is another matter—small compared with that to which I have referred—to which I wish to call attention. The King—no doubt on the advice of his Ministers—is at present abroad without the Foreign Minister or any Minister to act as the direct official medium of communication between him and foreign princes. It is a very grave thing. It gives rise to suspicion in regard to a matter of which this House has always been very jealous, namely, the passing of letters between monarchs themselves directing policy. It gives the idea that the Foreign Secretary is more the servant of the King than the servant of this House.

If he is the servant of the King more than of this House I must say that everything I have said is entirely wrong. The Foreign Secretary acts in a twofold capacity as all Ministers do. He is the servant on the one hand of the Sovereign, and he is the servant on the other hand of the people themselves. I do not object to the Noble Lord making the interruption. It is perhaps justifiable from his point of view. I recently read a lecture which was delivered by Lord Esher, in which he referred to the personal authority of Queen Victoria. There was one passage in that lecture which was fitted to create some reasonable astonishment. I do not quote Lord Esher's words, but what he said in effect was that the kingdom was the Queen's kingdom, that the Ministers were her Ministers, that the laws were her laws, and that the two Houses of Parliament made the laws with her assistance. That is not the Constitution of to-day, and I wish to call attention to what I consider a grave infraction of Constitutional usage, namely, that the Sovereign to-day has, or is under the suspicion of having, the power of negotiation outside the sphere of his Minister who is responsible to this House for the foreign policy of the country.

I appreciate fully the importance of the Constitutional question which the hon. Gentleman who has just sat down has raised, but, before I reply to him, perhaps he will allow me to deal with the various points which have arisen in the course of the debate. First of all, let me say that one of the hon. Members who has addressed the House has brought the House back to the just and fair appreciation of the Anglo-Russian Convention, because the events in Persia which have taken place since that Convention have somewhat obscured what was its comparatively simple origin and design. There has grown up an idea that the Anglo-Russian Convention had some deep political design, or was intended to have some peculiar effect upon the internal politics of Persia. There was no such intention or design. The situation before that Convention was one of anxiety with regard to the Indian frontier. There was the anxiety that our own position on the Indian frontier might be weakened by some other foreign Power—by lending money or securing concessions by poltiical influence in those parts of Persia which were particularly adjacent to our Indian frontier. That had always been a subject of discussion, and, sometimes, of apprehension in this country. How could you prevent that happening? It might have been done in two ways— either by strengthening the frontier at the points of danger and maintaining an increased force at considerable expense whenever you found the political influence of any foreign Power pushing into those parts of Persia, or you might have prevented it by announcing and, if necessary, carrying out your announcement—your intention of preventing it by force, which would, of course, mean going to war if need be. The better way of meeting the situation, we considered, was by mutual agreement with the only Power that was in a position of being likely to acquire influence—that no attempt should be made in those parts of Persia in which we were interested, we giving a similar undertaking with regard to those parts in which Russia was interested. The Convention was no doubt accompanied by the expression of the intention to respect the independence and integrity of Persia, and the desire and intention to avoid interference with the internal affairs of Persia. It did not entail any obligations upon us with regard to Persia which we had not before.

It was a self-denying instrument. Events in Persia, which have had nothing to do with the Convention, since then have raised in an acute form the danger of intervention in the internal affairs of Persia by foreign Powers, more especially by Russia and ourselves. There is nothing in the Convention which makes it responsible upon the British Minister to explain, account for, or defend the action of the Russian Government, which was taken on its own initiative and responsibility, and to which we are in no way party. It might be that in the events of the summer, called the coup d'état, the Russian officer in command of the Persian Cossacks, who had been lent for the purpose of disciplining the Cossacks—who provided a bodyguard for the Shah, and in case of need to preserve order in Teheran—exceeded the limits of those purposes. If he did so I am convinced it would not be by the authority or approval of the Russian Government.

Since that coup d'état there has been no question, according to all reports, that the Russian officers who remained in the service of the Shah have kept themselves within the limits in which years ago they were lent to the service of the Shah, and have not taken part in anything that could be called political encounters in Persia. I understood that the hon. Member for Mayo said that the action of the Russian officers in interfering with constitutional struggles in Persia was the sole cause of the anarchy there, and that he had an absolute conviction on the point. I notice it is very much easier to have an absolute conviction about the state of affairs in a foreign country when one is outside the Foreign Office than when one is inside of it. I wish we could arrive at absolute convictions. I cannot be sure, because you hear the version of only one party. According to our reports there was a considerable state of disorder in Teheran, and things have become worse since the coup d'état, mainly in the northern part of Persia. It has taken place close to the borders of the Russian frontier. Russian trade has been brought to a standstill, and Russian trade routes have been stopped more than once, and a Russian Consul has reported apprehension with regard to life and property of Russians; and according to our reports there have been a considerable number of cases where revolutionists hostile to the Russian Government have taken part in the political troubles of that part of Persia. In addition to that, Russia has lent money to Persia, secured partly on Customs dues in the northern part of Persia. At one time for five months those dues had not been collected at all. Before you criticise the action of the Russian Government I ask you to put a parallel case before the House with regard to ourselves. Put a disturbed region near the Indian frontier. Put it that the British Consuls there were telegraphing from time to time apprehension of danger to British lives. Put it that there was a number of revolutionists hostile to the British Government on the frontier operating there. Put it that we had lent money and that the security was not being raised. Would there not have been put the strongest possible pressure in this House on the Government to take action? The Russian Government sent 50 men to Resht and sent them with instructions to protect the Russian Consulate, but not to interfere with the political struggles that were going on in Persia. The other day I had a telegram from one of our Consuls at one of the southern ports to say that he had apprehensions of disturbances which might result in danger to the ports. I instructed a British warship to be within reach and give protection, but not to land or take any action unless there was actual danger. That, after all, is a parallel action. Without the Anglo-Russian Convention, had the old suspicion continued to exist between the two Governments, the old belief that we were working to take advantage of each other and. to undermine each other's influence in. Persia, it is, I think, absolutely certain that the old suspicion would continue to exist between the two Governments and that the amount of intervention would have been much greater. The House has a right to demand that we should not commit ourselves to far-reaching engagements which might entail great liabilities on this country. That we have not done with regard to Persia; but when I am receiving, as I do from time to time, suggestions that we should announce that we should take action to prevent interference, I will point out that any announcement of that kind would be to undertake engagements which might entail far-reaching consequences. I have undertaken no engagements of that kind. The House has a right to demand that the position is not being changed to our disadvantage, and that, too, we have safeguards. Where the provisions of the Convention have been strictly adhered to, neither England nor Russia during the present disturbances has been doing anything to undermine the influence of the other or to render the position of one country worse than it was before the disturbances began. The House has a further right, I think, to know that we have not been a party to anything the House would disapprove. The hon. Member for East Mayo described the Government of the Shah as being tyrannical. Well, it is one of the worst Governments at the present moment that any country could have; and if we had been lending money or giving support to uphold a Government of that kind the House would rightly be resentful of what we were doing. But, on the contrary, we have expressly stated that we will not lend money until there is an assembly that will be able to sanction the loan. Now, as to the giving advice, I have always been doubtful as to giving advice. The hon. Member for Ripon said what we want is that Persia should regain her Constitution. I will put it broader than that, and say what we want is that order and decent Government should prevail in Persia, in order that British trade may be undisturbed, and in order that the danger of intervention, which must exist if the country falls into complete anarchy, shall be removed. Whether that order and decent Government is best promoted by one constitution or another, or by what particular means, may vary from time to time. My own belief is that, at any rate at one time, if the Shah had announced his intention of assembling the Mejliz again it would have produced, for the time being, comparative cessation of the disturbances in Persia. But I must make it clear that when we give advice we are not going to undertake responsibility for the particular kind of government Persia is going to have. We say that we will not lend money to Persia until the Government is one that inspires confidence, and until there is an assembly that sanctions our loan and that assumes responsibility. We can deplore the state of things in the country and advise the Shah in general terms to do something which in our opinion will put an end to it, but we cannot dictate a Constitution to Persia, or we cannot promise to impose a Constitution upon Persia; and the advise we give must be limited to impressing upon the Shah that it is his responsibility to find some way to pacify his country, and until that is found he cannot expect assistance or countenance from us.

I will pass to the hon. member for South Donegal. I speak with some diffidence on the subject he raised, because I think he is an authority on the Constitution. So I will not attempt to bandy words with him about the theory of the Constitution. I can only base myself upon the practice of the Constitution as I know it. The House knows very well when reading history that there have been occasions where the Foreign Minister has been reproached with not keeping his Sovereign informed of the work of the Foreign Office. I consider it the duty of the Foreign Minister to avoid that; but it is a well understood Constitutional practice that the work of the Foreign Office should be transacted by the Sovereign through the Foreign Minister, and through the Foreign Minister entirely. Let me say that there has been no Sovereign who has adhered more closely, rigidly, and consistently to that Constitutional practice than the present King. I know that to be true of the Foreign Office. I believe it to be true of every other Department. The King's visits abroad have, I think, been exceedingly valuable to the foreign policy of this country. They have been valuable especially for this: that the King, in his own person, has a special gift, which I think will never be exceeded, of conveying to the people of the country to which he goes—both to the Government and to the people—in his own person the impression of the good disposition and the goodwill of the people of this country. It is a great national asset that our Sovereign should, by his presence in foreign capitals, contribute so to smooth relations between ourselves and neighbouring countries, and to produce such impressions that there is on our part towards them real goodwill, just as he leaves them on his part of the certainty that there is goodwill towards their ruler and Government.

But the benefit of these visits is not enhanced by making them the special occasion for official diplomatic work. If it was thought that whenever the King went abroad there was some special agreement negotiating, that some special Minister was going with him, in order to get particular diplomatic advantage, or to arrange some particular diplomatic treaty with foreign countries, the plain, wholesome, benign effect of these visits would not be increased, but would be impaired. But I can assure the hon. Member for South Donegal that were it to be the case that on the occasion of the King's visits abroad some agreement was initiated which was not discussed or known at home and brought back here in a half-complete condition, so that Ministers were reluctant to complete it afterwards, anything of that kind would naturally be regarded as a great breach of Constitutional practice.

Let me take the Reval visit as an instance of how that does not happen. The Anglo-Russian convention was not negotiated at Reval at all. It was negotiated entirely by the Foreign Office, and was completed before the Reval visit. The Reval visit had nothing to do with it. At Reval, no doubt, there was some political discussion between Sir Charles Hardinge, who went there with instructions from the Foreign Office. That political discussion related, if I remember aright, to two questions. One was certain points, not of principle but of detail in connection with Macedonian reform, and the other cult to catch the meaning of these figures as one says them. It is more easy to grasp them when reading them down on paper, of detail, and relating to those details about concessions of a commercial character, to which I referred in the earlier part of my speech. It is part of the irony that sometimes arises that after the Reval visit there came this coup d'é tat in Persia. It was not foreseen, and the conditions to which it gave rise were never contemplated during the Reval visit, and the problem we have had to deal with since in Persian affairs, more important than these details, was never contemplated or discussed at all. With regard to the part Sir Charles Hardinge takes when he goes abroad with the King, his duties are precisely on the same footing as those which our Ambassadors have in foreign capitals, and he reports in precisely the same way to the Foreign Office; and if Sir Charles Hardinge is not to have interviews when he goes abroad with the King, unless I am present, it would follow that no Ambassador is to converse with a foreign Minister unless I am there. Sir Charles Hardinge goes to Berlin; let us suppose he has there a political conversation, which he reports to the Foreign Office; or let us suppose he stays at home and I went to Berlin. During my absence Sir Charles Hardinge would have at least six political conversations at the Foreign Office, every one nearly as important as the one that took place at Berlin. What does the House suppose happens when I am here attending a sitting of the Committee? Sir Charles Hardinge, or somebody at the Foreign Office, in precisely the same way as our Ambassadors see people, have interviews and report to me, and in no other way could the work of the Foreign Office be carried on. So I want to point out to the hon. Member for South Donegal that, though it may appear that on certain occasions there has been some change in the work of the Foreign Office, no change has really taken place at all and that the work of the Foreign Office, whether the King is at home or abroad, is transacted under the same conditions of responsibility by the Foreign Minister, and the King observes the same practice of transacting foreign affairs through his Foreign Minister as on other occasions. I know it is difficult to satisfy the hon. Member, but his complaint was that before the visit to Berlin no Cabinet Minister went abroad. Lord, Crewe went with the King to Berlin as a Cabinet Minister. I had hoped that would have satisfied, but it only provoked a further crop of questions. Well, the very letter of the Constitution in theory was observed by Lord Crewe going to Berlin. The responsibility of the Foreign Secretary was not interfered with, and was fully maintained, and if nothing will content the hon. Member for South Donegal but the Foreign Secretary going abroad with the King, I would suggest to him that Prince Bismarck once made some not very complimentary comment upon what he called reisepolitik, by which I understand him to mean that you transact important business by travelling about. I think the Foreign Secretary maintains his responsibility best by remaining at the centre of things at home, and if he thinks that I have made a new departure by not going abroad on these visits, according to the information given to me, not since 1868 has any Foreign Secretary been abroad with the Sovereign. I think, then, it is rather hard to accuse me of having made a new departure. I quite agree if there was any reason to suppose that the Constitutional practice of business being transacted by the Sovereign through a Minister of the Crown was departed from the House ought to be exceedingly jealous of any such departure. But I regard myself as being responsible to the House and to Parliament, and I can assure the House under the present Government, as under our predecessors, that practice has been preserved.

I do not intend to follow the right hon. Gentleman in the last part of his observations, but I do not think that we, at all events, entertain any suspicion that any important constitutional change has taken place in the conduct of foreign affairs; certainly we have no idea that the visits which His Majesty the King hag paid, which we all regard as having a beneficial effect in foreign countries, have any connection with the subject of the suppression of the constitution at Teheran. I rise rather for the purpose of expressing our general concurrence with the policy, as explained by the right hon. Gentleman, he has recently pursued in Persia. The hon. Gentleman who raised this question, the hon. Member for Ripon, advocated a policy of active intervention, and recommended that both Great Britain and Russia should join in advising the Shah to reintroduce the original constitution.

I do not know what meaning the hon. Member has for active intervention, but what he did was to suggest that Great Britain and Russia should press the Shah to restore the original constitution. I call that active intervention. The hon. Member for Mayo suggested what he described as a policy of non-intervention, which being interpreted, apparently was that the Russian Government should withdraw from Persia the Russian officers, which, according to his own admission, is the only force by which the Shah can maintain his authority at all. I frankly confess that, if we were dealing with a tabula rasa, the ideal solution would be that neither Great Britain nor Russia should concern themselves with the internal affairs of Persia at all, but that, unfortunately, is not possible, because, as the right hon. Gentleman has reminded us, both those Powers have substantial commercial interests in the country. Both have pledged themselves to maintain and respect its territorial integrity. I agree with him that the disturbances which have recently taken place in the north-western portion of Persia affect Russian interests even more than they do our own, and we are pledged whenever either of the two Powers considers that their interests are prejudiced in Persia to communicate with one another with regard to the steps to be taken to protect them, under the provisions of the Anglo-Russian Agreement, under which I think we made somewhat disproportionate sacrifices, but which I am very glad to hear from the right hon. Gentleman has led, at all events, to a more friendly understanding and co-operation between ourselves and the Russian Government in regard to the recent events in Persia.

Therefore it is not really possible, however much we may desire it, to abstain altogether from all interest in the internal affairs of that country. I understand that the policy of His Majesty's Government under these circumstances is that they should not recommend the Shah to fulfil the pledge which he gave to his own people, and which is a matter between him and them, and no concern of ours, but merely that he should give some security for the restoration of a more stable condition of affairs. The hon. Member for Mayo and various other Members who have spoken in this debate consider that the introduction of some kind of Parliamentary system into Persia is the best way of affording that security. The hon. Member for Mayo asked why, if a Parliament was appropriate to Turkey, it should not be equally appropriate to Persia. The Turkish experiment has not lasted very long, and I do not think the genius of the Persian people is altogether quite like the genius of the Turkish people. Personally, I very much doubt whether a Parliamentary system of that kind is suitable for the present position of affairs in Persia. Popular institutions, except after long experience and training, I think, are very apt to result in the weakening of the central executive. In countries like Persia, where a strong Executive is more necessary, perhaps, than anywhere else, and where you have corruption so widespread as it is in Persia, a popular system does not afford any guarantee for the introduction of a purifying element into the administration and finance. Personally, I cannot help thinking that the most hopeful prospect of reform in Persia is the widespread employment of Europeans in connection with the administration of the various departments, and I cannot help thinking that that policy stands much more chance of acceptance if we do not press upon the rulers of Persia at the present moment a policy which must obviously be distasteful to them, and which they can hardly concede without injuring their own prestige in the eyes of the people, and of which, in consequence of the risk, we cannot share the responsibility.

Like the Noble Lord, I cannot understand what the purpose of my hon. Friend the Member for Ripon's speech was, if it was not to press upon the Foreign Secretary a more active interference for the purpose of changing a constitution which has existed since the days of Darius, and for reverting to a constitution which was adopted the day before yesterday. If that is not my hon. Friend's meaning, I confess I do not understand it. That is the impression I gathered. He was not satisfied with the very moderate steps taken by the Foreign Secretary under the Convention which have had such beneficial results, but he desired that pressure should be put upon the Shah to adopt a particular form of constitution. I quite understand the great interest which my hon. Friend has in Persia, what a benefactor he has been to that country, and how sincere is his admiration for that polished and gifted people and their beautiful literature, which it was my pleasure and duty for many years to study, but one cannot altogether agree with the steps which he wishes to be taken. I think he, unconsciously, rather exaggerated the gravity of the situation in Persia, and I think he knows it him-' self, because, with more courage than I have, he interrupted the Foreign Secretary to point out that the stream of trade had not been so materially affected by the present disturbed state of Persia, and that in point of fact exports and imports were proceeding in their somewhat normal arithmetical progression. Then I think my hon. Friend was too hard upon the Kajar rulers of Persia. I do not think he could say too much about the late Shah, whose spendthrift character led practically almost to the loss of the independence of his country. But the father of the late Shah, with whom many of us are familiar in this country, was exceedingly popular, and the Persians loved him and did not regard him as a tyrant. The freedom you allow to other people is to be free in their own way, but you cannot say to a people that they cannot be happy because they have an absolute monarchy, especially when no other monarchy is possible in the East. The demands of the Nationalists, my hon. Friend admits, are not m a large measure due to the present Shah. He has not been guilty of excess in the way of spending money; he has not oppresed his people, and he is fighting for his life. A constitutional monarch would probably mean the end of the monarchy, and while we must sympathise with Nationalists in Persia, let us not withhold some sympathy for a king who is situated in circumstances of great difficulty. For my part I can see no advantage in debating in this House the internal affairs of Persia, except one, and I do not underrate it, that we had a most interesting speech from my hon. Friend the Member for Ripon, and we have had a pronouncement by the Foreign Secretary. The latter, although his ex cathedral attitude would be that he was glad that any question was raised, still, I think, would have been satisfied to leave the internal affairs of Persia alone beyond what action he has taken, and that, I think, is the best course for this House to take.

My hon. Friend has referred to "The Times" and the Turkish movement, and I think he was exceedingly unjust, and so was the hon. Member for Mayo, to "The Times." If I understand enough English to follow what "The Times" has done in connection with the Turkish movement, it has been of that movement a strong and consistent supporter throughout, but though the Turks and the Persians are both Mahommedans, and both live in the East, there is no resemblance between them, and there is no reason to believe that what may happen in Turkey would probably happen in Persia. The hon. Member for Mayo, when he made that suggestion, fell into the trap which yawned before him, and ignored the difference between Sunni and Shiah. There are no two people on the face of this earth who hate each other more than the Persians and the Turks. So far from its being proper for this House to judge that because Turkey apparently will do well under this constitution, therefore Persia also would do well, everything we know of these two races points to an exactly opposite conclusion. The hon. Member for Mayo also said the constitution of Persia was destroyed by the Russian officers. I altogether deny it. These officers, who were there when I was in Persia and have been there ever since, are simply lent to the Persian Government, like we lend our Hobart Pashas and other officers to Turkey, and I submit that their action has been misinterpreted, and that they have been in fact the keepers in Persia, in time of trouble, of law and order in concert with the Government.

I wish to express, not only on my behalf, but, I believe, on behalf of some other Members of the House who are interested in Persia, our disappointment with the speech of the Foreign Secretary. He made one or two very interesting admissions. He admitted, for instance, that things in Persia had become considerably worse since the coup d'état last summer, and that the Government of the Shah was the worst in the world. After these admissions I am afraid he told us very little indeed about the policy he has been pursuing, and still less about the policy he intended to pursue. Several Members, and I among them, regret very much that he does not feel and express some more sympathy with the Persian Constitutional movement, and that he does not follow his own admirable record in reference to the Turkish movement. It is perfectly true that there are important differences between these two movements, but, at the same time, anybody who knows Persian history and anyone who had had an opportunity of meeting some of the leaders of the Persian Constitutional movement cannot dismiss them as being mere barbaric savages, absolutely unfit for what the Turks are now enjoying.

I did not intend to reflect on the Constitution; I had to deal with the question of what action we were going to take.

I only say that many people in the House and out of it undoubtedly regret that after the sympathy and support given by the Foreign Secretary to the Turkish Reformers, which has been of enormous assistance to them, he has not been able to speak a little more sympathetically of the men in Persia, who are struggling against a despotism quite as intolerable as that in Turkey. The right hon. Gentleman's references to Colonel Liakhoff were couched in diplomatic language. He said Colonel Liakhoff on the occasion of the coup d'état might perhaps have exceeded his powers. When the Foreign Secretary says that humbler mortals may very well say he did exceed his powers. Anyone who knows what took place last summer knows perfectly well that he was not only the agent of the Shah, but that he took a very strong partisan position. When the Foreign Secretary says that since the coup d'état his conduct has been unexceptionable that is only another way of saying that since the mischief has been done his conduct has not been of a character to require any further blame.

rose in his place, and claimed to move "That the Question be now put."

Question, "That the Question be now put," put and agreed to.

Question, "That '£26,232,000' stand part of the said Resolution," put and agreed to.

Resolution agreed to.

Income Tax

, in moving "That in the opinion of this House, it is desirable equitably to graduate the income tax," said: The fortune of the ballot, in the unfortunate illness of the hon. Member for Clare, has given me the opportunity of addressing the House upon a subject on which I have always felt the very deepest interest. I hope the House will not think I have abused the opportunity which the ballot afforded me by raising a question of this sort, especially in such a year as this.

I repudiate entirely, in connection with my motion, any conception that taxation ought to be used to equalise income. So far as inequalities of income arise from any faults which might exist in our industrial and social structure, I conceive that the proper way to remove those inequalities is to attack them at their source, and not to attempt to equalise them after they have occurred. I therefore put aside that question. I would also urge upon the House that although the means of gaining revenue in the coming financial year are of exceeding importance, although it may be truly said that we stand in more senses than one at the parting of the ways in financial matters, the question of the graduation of the income tax is not necessarily concerned with the raising of additional revenue. Whether the Government of this country is carried on cheaply or dearly, whether the sum required to be raised by the income tax be small or large, whether it be £2,000,000, or £5,000,000 or £100,000,000, the Government of the country ought to have regard to the principle that taxation should be levied according to the ability to pay. I am not enunciating that doctrine for the first time. It is very much older than I am, and it goes back, of course, as far as Adam Smith who, in his first maxim of taxation, laid down that the contribution of a citizen towards the expenses of the State should be in proportion to his circumstances. The further development of that doctrine led to another principle being established, which is a far more important principle, and which is really the principle of the graduated income tax. It is obvious that if we merely have regard to the income of an individual and take from him, as Adam Smith put it, a sum in proportion to his income, we take a great deal from the poor man, and very little from the rich man. That is to say, if a man has £1 a week, if we take from him 10 per cent, of his income, we reduce a very poor income to one upon which it is hardly possible to sustain the life of a family in this country at the present time, whereas if we take 10 per cent, from the man with £2,000 a year we still leave him in possession of a comfortable, indeed a handsome, income. In other words, taxation has to have regard not merely to the proportion of income which is taken, but to what part of a man's income is left after the taxation is accomplished, and to what means of subsistence he has left.

That is really the doctrine of equal sacrifice. It seems to be a doctrine which is so self-evident that I need not argue it further in this House. I pass now to the important question of how we stand in this country with regard to the distribution of wealth. A few years ago I published a book on the distribution of wealth in this country, which is still largely true, and largely true for this reason: that I deliberately understated my case in writing the book. I did so in order that it might not be said that I had exaggerated a case which seemed to me was so extraordinary and so striking that I should diminish the value of the case presented if I was guilty of exaggeration. Every fact which has accumulated since then has shown that so far from exaggerating the inequality of wealth which obtains in this country, I understated it. One of the most important series of facts to which I directed attention were the statistics which accumulated in Somerset House owing to the imposition of a graduated scale of death duties by Sir William Harcourt in 1894. In talking about taxation, it is really impossible to discuss the subject without boring the House with some figures. The facts revealed by the death duties are very remarkable and very striking. Of about 700,000 persons who die in this country every year, only about 80,000 leave sufficient property to make them the subject of inquisition by Somerset House. Of those 80,000, the remarkable fact emerges from the statistics that nearly the whole of the property is left by about 27,000 persons; and, more remarkable still, about two thirds by about 4,000 persons. To sum up the facts in a few words, I may say: Of 700,000 persons who die in the country leaving between them about £300,000,000, about £200,000,000 of the £300,000,000 is left by about 4,000 persons who die in each year.

That is a fact which is very easily remembered, and, curiously enough, that is a fact which is constant. So great is the accumulated wealth in this country that the statistics on this point have become a constant factor. Speaking of this country, I may say that with more than the regularity of the seasons 4,000 people die in this country every year leaving between them £200,000,000 out of £300.000,000. That is the most remarkable British statistic that I know. The fact does not rest on my assertion but on official statistics, and for a very obvious reason those official statistics understate the facts. Tenaciously as men are attached to their property, the death duties have had the effect, certainly of late years, of causing rich persons to divide at least part of their property before they die—which is the most remarkable virtue ever attributed to taxa- tion. The result is, increasingly, from year to year that considerable parts of the estates which are left at death do not come under review at Somerset House. Every hon. Member must have been struck by the remarkably small sums left by many men who were known to be remarkably rich. The explanation is to be found in the fact that they divide part of their property some time before their death in order that their executors may escape payment of the death duties. Therefore these figures quoted are an understatement of the case with regard to the distribution of wealth.

The facts as to the savings of the poor are very melancholy. In London, and, I suppose, in every other great city in the country, there are miles and miles of mean streets, the inhabitants of which are not the possessors of wealth. Their sole possessions are a few squalid sticks of furniture. Their savings consist merely of a few shillings, put by not for the economic purposes of saving, that is to add to the value of their labour, but a few shillings laboriously put by, as a squirrel puts by nuts against the winter, in order to provide against the rainy day. That cannot be too clearly understood. It is not merely that the whole of the capital of this country is owned by a mere handful of the population, it is that small as is the remnant of capital that is owned by the poor that part is not employed for their direct benefit, but is simply put by for them, invested in Consols and so on, in order that if they fall sick or if the head of the family dies some provision may be made to keep them going for a short time. That is the plain, naked, terrible truth with regard to the division of the capital of the United Kingdom. The facts which I have stated are official. May I be allowed to add to them an estimate which is not official, which is my own, for which I am entirely responsible, but which I think I may again claim does not exaggerate the facts in order to make the poor appear more poor than they are.

I take a conservative estimate of the wealth of the whole of the United Kingdom as £11,500,000,000. That may be taken as a very conservative estimate of the total wealth of the country. Of that 5,000,000 persons own £10,900,000,000. The remaining 39,000,000 people own only £600,000,000. I am afraid it is rather difficult to catch the meaning of these figures as one says them. It is more easy to grasp-them when reading them down on paper. But they mean this, that one-ninth of the population own 95 per cent, of the whole capital stock of the United Kingdom. In other words, that practically the whole of this country, regarded as a business undertaking or as a going concern, is in the hands of a small number of people who own it. The rest of the people are dependent for their employment—that is, their lives—on employment which is offered or denied them by the few persons who own the capital. When that fact is once understood one is not surprised when one hears of unemployment; one is only surprised that unemployment is so small as it is.

If we had no direct knowledge of the facts with regard to the distribution of income in this country it would necessarily follow, from what 1 have already said, that the distribution of income must be as unequal as the distribution of capital. But then we are not merely dependent on the extraordinary series of facts derived from the income tax statistics. I will not trouble the House by going much into detail, but I will give my conclusions briefly under this head. They are these. If we take the income of the country as £1,800,000,000—I do not think anybody will quarrel with that figure—and the income tax line, which is just over £3 a week—£160 a year—and divide in into two equal parts, then above the £1,800,000,000 line there are about 5,000,000 persons who take a half of the income, and there are 39,000,000 who take the other half. That is a most extraordinary feature of the distribution. It is not so extraordinary as the further fact I think I can establish—that of the 5,000,000 persons who take £900,000,000, about 1,250,000—250,000 are heads of families—take £600,000,000 of the £900,000,000. If one did not know one's own country, if one were not an observer of life, and one were merely told these facts, and then, so to speak, projected into this world, unable to see, I ask the House whether one would not imagine, from the facts I have stated, the most terrible inequalities of opportunity, of standard of life; the most terrible divisions between the rich and the poor. He would imagine for himself some very deplorable conditions of the country. But, unfortunately, it is not left to our imagination. We have but to go outside this House of Commons and see every day under the statue of Disraeli one or two squalid figures squatted on the public seats. Go along the Embankment or the byeways of Victoria-street, and there you find the same horrible pictures of squalid life. The facts which are covered by the figures which I have stated are incapable of exaggeration. There is no humour in these facts, even for a jocular Chancellor of the Exchequer, but there is a great deal of humour to be got out of the methods which we employ in taxing the various orders of society which are comprehended. The income tax indeed at the present time is in many cases in regard to its method a very bad practical joke. My right hon. Friend the Chancellor of the Exchequer has been reproached in making what I consider a very mild joke on the subject of taxation. It has occurred to me that he might be reproached, or, at all events, his predecessors, with not having made a joke, but a series of very bad practical jokes. The income tax is very old, but I am afraid its age fails to confer respectability. It dates back to 1692. The chief schedules of the present income tax were formed in what is commonly known as the land tax of William and Mary. A great many speakers and writers in the country indeed believe it to be a land tax, but it is nothing of the kind. It is an income tax. If anybody will compare the schedule of the present income tax with the land tax of William and Mary he will find a very remarkable resemblance. Section 2 of that Act gave the King 4s. in the pound on personal estate for the purpose of carrying on the war with France. Coming down to the eighteenth century we find that the tax on personal estate had largely fallen into desuetude owing to the difficulties of collection. The so-called land tax was simply an income tax, of which the land tax was quite a minor part. The real reason why the land tax came to be the chief source for that tax was, of course, the fact that in those days it was very difficult to assess personal property, and the only thing they could effectively assess at all was to place the old land tax, that is the inaugurated the land tax in 1798 all he did was to place the old land tax, that is the old income tax, on a better assessment. While the first part of the tax became a land tax, it was really a substitution of the old land tax. The present income tax is one and the same as the so-called land tax of 1692.

The hon. Gentleman should make it clear that the land tax that was imposed still remains upon the land, as well as the income tax.

That is perfectly right. The reason why the old land tax was settled in that way was not for the purpose of relieving the land from taxation at all, but simply because of the new land tax included in the income tax. The next point I would like to make is that all taxes are income taxes. I do urge upon the House that any Chancellor of the Exchequer who imposes taxes other than income taxes confesses by imposing them that he desires to conceal the amount of taxation which he desires to raise. Resorting to other taxes is really resorting to concealment. Now, the unfortunate thing about our present income tax is that it is supposed to be a direct tax, which is collected by an indirect method. May I remind the House that we have already a graduated income tax? We do it in a very clumsy way. We first of all establish a normal rate, a tax of, say, 9d. or a Is., and we then allow the poorer income-tax payers to deduct a proportion of their income before they pay the tax. The result is that scarcely any income-tax payer is able to say precisely at what rate he is taxed. Take an earned income of £200. A man pays 1¾d. on it. A man with £400 pays 5½d. With £600 you pay 7¼d., that is the rate at present. If these incomes are unearned a man with £200 pays 2½d.; with £400, 7¼d. On £600 it will be 9½d. But that is not the only practical joke which has been brought about. There are practical jokes higher up the scale, where an extraordinary thing occurs at the point where differentiation ceases. The £2,000 a year man, if he earns his income, pays £75. If he has £200 a year more, then he pays £110 income tax, so that he pays £35 income tax on only £200. I do not think I am exaggerating when I call that a practical joke. [An Hon. MEMBER: "On whom."] On the public. Graduation obviously rests on a knowledge of income. What is done now? Any man with an income of £2,000 a year, by making a personal declaration that it is earned income, gets the advantage of the 9d. rate. Or he need not make any declaration at all, but if he does not he pays the Is. rate. If he declares, he pays £75; if he does not declare he pays £110. That means a fine of £35 for not declaring. This we call "no compulsion." Take the case of a clerk with £400 a year. If he declares he pays £9 tax. If he does not declare he pays £15, so that he is fined £6 for not declaring. There is no compulsion. What is the result of this system which is called "no compulsion." The result is as might have been expected, that the fine is so heavy that there is virtually compulsion, and nine out of eleven income tax payers now declare their incomes.

My appeal to the right hon. Gentleman is to apply this principle a little further, with no compulsion, but to so graduate the scale that if the rich man does not declare his income he will pay on the higher scale. That is exactly the same principle. The man with an income of £2,000 pays £75, and if he does not declare he pays a fine of £35. The clerk, with £400 a year, if he does not declare, pays a fine of £6. The effect of charging to the highest point of the graduated scale, say Is. 6d. or 2s., or whatever my right hon. Friend has in his mind at the present moment, will be that the rich man, unless he declares his income, will be chargeable with the highest rate. Supposing you graduate your scale up to £10,000 a year, and supposing that on the £10,000 a year you charge Is. 6d., but that the rate for £5,000 a year you make Is. 3d. If the £5,000 man does not want to declare his income, then he will pay the Is. 6d. just as the clerk with £400 a year will pay the £6, if he is too proud to declare his income. And this would be done without any compulsion, but simply by the application to the rich of the same principle that we apply to the poor. What will be the effect of the declaration? I contend that if you have declarations of income from rich and poor alike you will reveal much new income. At present, if a rich man has some investments or securities abroad on which he can easily make an arrangement to avoid paying the tax, he need not even declare that part of his income. There is no compulsion upon him to declare. I say if there were compulsion upon him to declare it would be a very serious thing for a man of substance to make a solemn declaration, as the poor man has to do, that the whole of his income is £9,000 a year, when really it is £20,000 a year, and when he might be easily found out and heavy penalties might be incurred. But I do not want to discuss that point. I myself do not believe that people are so dishonest as is sometimes alleged. This system has worked very well in Germany; but that their business men are more frank, honest, and ingenuous than ourselves I do not believe for a moment. If this system of assessment works well in Germany I do not see why it should not work well here. Another very illuminating point is ths: In his last Budget speech the Chancellor of the Exchequer pointed out that the making of declarations by persons of between £700 and £2,000 a year had brought more income to light. In the last two financial years, as a result of these declarations, there has been £35,000,000 more income come to light. Some part of this may be due to better trade, but it is in great part undoubtedly due to the fact that declarations are required from those who desire to avail themselves of the 9d. rate. If we carry that system of declaration right through the scale we might anticipate at least £50,000,000 more income, and very probably even £100,000,000. The effect on the whole body of taxpayers with such a result would be to lower the tax upon them. I urge upon my right hon. Friend that not only is it important to graduate the income tax but that there should be a knowledge of the nature of the income, with a view to graduation right through the scale. My next point is a plea for the plain graduated scale of Germany, a country which has been so often mentioned in this House during the last few days that I am almost afraid to repeat its name again. There are things besides the Navy in which we might follow the example of Germany, and the efficiency of her system of assessment is certainly illustrated in the income tax of Prussia. The present income tax in Germany is on incomes from £45 to £5,000 per year, which correspond to very much higher incomes in this country— probably £70 or £80 to £7,000 or £10,000. For example, the Burgomeister of Frankfort, who is the managing director of Frankfort, only gets £l,500 per year, and his work here would e reckoned at three or four or five thousand pounds. I mention that because the point was once made in the Income Tax Committee by someone opposed to graduation, who said that German income tax graduation stopped at £5,000. The fact is that £5,000 corresponds to a much higher figure here.

I ask for a plain, graduated scale, ranging certainly to not less than £10,000, and I urge to £25,000. Let the scale be a plain, simple one, easily understood by every taxpayer, and let the demand note have the scale upon it. By that you make your income tax, I will not say a popular system, but you would bring it home to the mind of every taxpayer that the State studied him as an individual, and had a regard for his position in society. I say it would largely help to remove that feeling against the income tax which is so prevalent amongst the middle classes in this country, and which is really propagated by the clumsiness of the tax as we know it to-day. There are two ways of carrying out graduation in practice. One of them is known under the term of degression. You charge at the source of unearned incomes the highest rate of tax, and leave it to the taxpayer to claim what he is overcharged. That system is now in force with regard to small incomes. It has the fault that it locks up a lot of money and takes away what is not due. I think the better way is to draw the line through the scale, say, at a shilling, and tax one shilling at the source, and then when the personal declaration is made to collect the balance of the tax. Or, on the other hand, if too much has been paid, to return it as now. The latter part of the plan is what obtains at present, and the former amounts to a new proposal. That has been called the super tax. I object to the term. What do you mean by a super tax? It means a tax over and above or an extra tax. I want to repudiate the suggestion that this is an extra tax, to repudiate the suggestion that it is a special tax. I urge it is nothing of the sort, and that there is nothing at all opposed to the principle with which I began, the principle of equality of sacrifice. It is not a super tax, but simply taxing a man with regard to his circumstances and to his position in the nation.

I come to the question of the yield of incomes, and here I would like to point out the really remarkable facts which obtained in the last ten years. If one did not know that those facts were officially established one would not credit them. In the financial year ending 31st March, 1899, the gross assessments from income tax were 763 millions. In the last figure— that of 1907—they had gone up to 944 millions. The figures stated by the Prime Minister in his last Budget speech, not yet published in a Blue Book, were 980 millions. My own estimate for 1909 is 1,025 millions. That is to say, in ten years the gross assessments from income tax have risen from 763 millions to 1,025 millions, or they have risen by 262 million pounds, or 34 per cent. There is a great deal of talk about the growth of expenditure, but even adding the Bill for old age pensions, the full Bill for old age pensions, the increase in that expenditure in the same ten years is only 37 per cent., or only 3 per cent, more than the increase in income tax incomes.

So that with all the extra expenditure caused by the South African War, with all our increased armaments, with the provision we made for old age pensions, taking the whole of them into account the increased expenditure has been barely more than the increase in taxed incomes, while the increase in actual expenditure is only £44,000,000, against the actual increase in taxed incomes of £262,000,000. I think that is a remarkable tribute to the financial state of this country. These are figures which cannot be equalled by, I think, any other country in the world. I began by urging that whatever the sum you wanted for income tax you ought to graduate it, but we cannot ignore the fact we do want more money? Now, £1,025,000,000 of gross income must correspond with at least £900,000,000 of net income. I do say if declarations were universal I think the net incomes would probably reach £1,000,000,000. Buteven taking £900,000,000, I make a rough division as follows:—Incomes of from £100 to £700, total £300,000,000. Taxing that at 2½ per cent., or 6d. in the pound, you get a yield of £7.500,000. The next class, £700 to £5,000, with an agregate of about £350,000,000, which would yield £17,000,000 taxed at a shilling rate. Above £5,000 there must be £250,000,000. I think Sir Henry Primrose's estimate of £121,000,000 must be wrong. And the £200,000,000 which Professor Bowley mentions is advanced not as a definite estimate. Most probably my estimate of £250,000,000 for those class of incomes is nearer the truth. The rates I have mentioned would give £10,000,000 more than the present income tax, and that could be done by a tax ranging from 1d. on incomes at £160 up to 2s.—the highest point in the scale—on incomes at £25.000 a year. I think it is pretty clear that we do live in a rich country, and that we need not have any fear whatever as to the progressive yield of the tax I submit. Graduation amounts to differentiation. If you graduate your income tax you need not trouble about differentiation at all. I am only sorry that the Prime Minister should have differentiated income before he graduated it. I am quite in favour of the differtiation of the lower order of income; in the upper order it is not worth doing at all. I want to say that because the income tax is direct we can study the individual, and in that connection there are some minor but important points which, if my right hon. Friend would introduce them into his forth-coming Budget, would make the income tax a very different instrument from what it is now. In the first place, the income tax ought to consider the size of a man's family. That is to say, a man who has got young children to educate and too young to earn their livings ought to have some consideration shown him It is shown in Prussia, why not here? In Prussia they allow abatement of 50s. for every child under a certain age. The taxpayer feels that the Government of the country is an intelligent and considerate Government. Another point to be considered is illness. If a man has been continuously ill for three or six months during the year in Prussia his case is taken into consideration and abatement is allowed. And then there is the case of those who contribute to the support of poor relatives. Then, again, why should we not have quarterly payments of the income tax? It is done in Prussia, why not here? The terrible thing for the middle-class man is having to face that tax in January. If there were half-yearly or quarterly payments it would add to the convenience of the people. There is another point which has been sometimes mentioned, that is the question whether bachelors ought not to pay a higher rate? [Cries of "No, no," and laughter.] I do not say for a moment that we should curse the lives of many poor women by finding husbands for them; but I do say that the incomplete citizen—the unmarried man—should pay a higher rate of taxation than the man who is doing his duty to the State—the man who is responsible for the education and training of the citizens of the future. [Laughter.] It is easy to be jocular about this matter; but there is another and a serious side. There is no reason in the world why the bachelor should not be able to bear a rather heavier tax than the married man. There is no question that if such points are considered we should make the income tax a different instrument to what it is now. My right hon. Friend has qualities of head and heart which I am quite sure will enable him to emerge with triumph out of the difficulties which some people think he will find in connection with the coming Budget. The finances of this country are so great that the difficulty it seems to me has been greatly exaggerated. If the next Budget had to be made in Prussia I might entertain a different opinion; but so long as our trade and commerce are on a sound basis, so long as our financial system is backed as it is by a system of Free Trade —so long I think we need not fear that in the framing of the Budget before us the Chancellor of the Exchequer and the United Kingdom will be able to secure satisfactory results.

In seconding, I congratulate my hon. Friend on the able and convincing speech which forms one more of his many contributions to the cause of democratic finance. I do not know whether I can go quite as far as he goes as to bachelors. According to his own tenets on Free Trade, if you put a tax on any commodity it sends up the value, and bachelors would, I fear, become a dearer commodity still. There is hardly enough to go round now. I cannot help feeling that at this juncture for any Radical to urge the graduation of the income tax on the Chancellor of the Exchequer is almost a work of supererogation. A Select Committee, appointed by this Government, declared in favour of graduation, and I think the Government is practically pledged to it. Differentiation —so we gathered—would necessarily be followed by graduation.

I may say in passing, by way of encouragement to those who may be appalled by the alleged difficulties of graduation, that for something like 50 years before differentation became a fait accompli, every Chancellor of the Exchequer stated that differentation was impracticable; and yet within a single year of its establishment the then Chancellor of the Exchequer stated in this House:— a priori arguments brought against the graduation of income tax. One of the commonest is that if you increase the taxation of the well-to-do classes by imposing extra income tax there would be a stronger motive for evading payment. As long as human nature is cast on its present lines evasion will be amongst us. How strong is the instinct to evade is indicated by the notori- ous fact that when collection at the source was introduced the receipts from the same sources were almost doubled at once. At the same time, if one seeks for a psychological explanation of this spirit of evasion beyond the mere mean desire to save one's own pocket by swindling one's fellow citizens, I think another motive, to some extent at any rate, may be found in the feeling of injustice that one man experiences when he realises that he is taxed unfairly as compared with another man. A man in receipt of £2,000 a year is naturally indignant that he should have to pay at the same rate as a man in receipt of £20,000 or £200,000 a year, and he justifies a false return as a means of some way redressing an inequality. Under a fair system of graduation that plea of justification would be taken away. Probably the main objection which confronts the country Member who has to meet the Tariff Reformer at every turn is the familiar chimera that if you attempt by means of a popular Budget to put greater taxation on the shoulders of the well-to-do you will drive capital from the country. The wildest pictures are conjured up in country villages and towns by missionaries of Empire, male and female, of what will happen if the confiscatory Radicals put a higher income-tax upon the well-to-do classes. Pictures are drawn of capitalists going to banks, drawing out their golden sovereigns, putting them in packing cases, and sending them abroad, instead of using the money in employing British labour. These statements have actually gone so far as to declare that something like 300,000,000 golden sovereigns have been driven from this country during the last few years by the prospect of higher taxation. I need not labour the point, as a recent debate simply shot away every support from the crazy structure of that argument. A well-known Member of this House used this argument in my hearing yesterday, that a higher income tax by graduation will cause wealthy Englishmen to invest their savings in banks abroad. No doubt that may happen; it happens at present. Some Members of this House bank abroad to some extent; they do not borrow abroad, because the bank rate in Germany a little time ago was 5 per cent., as compared with our 3 per cent. Another argument is that wealthy fathers would, under the menace of this legislation during their lifetime, divide their income amongst their children. I imagine that any scheme of that kind would be enormously popular with the rising generation.

I take it, however, that the Liberal party is quite prepared to take these risks. I do not think the Chancellor of the Exchequer will allow himself to be deterred by vague and silly threats of this kind. There is nothing novel about such arguments. Whenever there is any attempt to impose any increased taxation on the shoulders best able to bear it these threats are made. If any one doubts it, let him read the "Debates," or refer to the Tory newspapers in 1894, when the death duties were imposed. You had then precisely the same menaces—perhaps even worse than at present. We in the country districts were threatened with impending ruin; it was said that practically every country house would be closed, and that there would be fewer pheasants, fewer gamekeepers, no more gardeners, and so on. The course of events has given the lie to all those predictions. At any rate, as the hon. Member for Paddington has said, the money has got to be found. As a Radical I am not prepared to accept the position which too many even Liberal newspapers take up, that any number of "Dreadnoughts" must necessarily involve the curtailment of our social programme. If extra "Dreadnoughts" are wanted, let the superfluous wealth of the country pay for them; but do not let us hesitate at the same time to secure from that wealth the money required for the payment of old age pensions, the removal of the pauper disqualification, fairer educational opportunities for our people, and so on. When travelling abroad what makes me more ashamed of my country than almost anything else is to see countries poorer than ourselves spending more per head on the education of their children than we do. Money is badly wanted, and there are only two ways of getting it. You may either put increased taxation by means of the income tax on the well-to-do, or you must tax the poor by indirect taxation. The first method will, we hope, be embodied in the Budget, the second is the selfish and cruel scheme of Tariff Reform. We have probably all come across the plausible theory that if the income tax is graduated it ought to be from the bottom upwards. The other day one of the wealthiest men in England, who was showing me his motor garage, in which there were seven motors, said that he would riot mind a little additional income tax by way of super-tax provided the Government began at the bottom and taxed the working man's few shillings as well. I am thankful to say that the standard of living is much higher in this country than in Continental countries, and it is clearly impossible, as everyone will agree, to carry out a scheme to commence the income tax much lower than it is at the present time. I think any student of sociology must be aware that our working classes are taxed too much already. A very interesting point was brought forward a few nights ago in a very able speech by the hon. Member for Blackburn. He pointed out a fact which was new to me, namely, that the working classes, apart from their general incapacity are less able now than they were ten years ago to bear increased taxation. He showed that the sum payable in wages is less by something like £2,000,000 than it was ten years ago, and that the price of provisions has risen some 4½ per cent. At the same time, pari passu, you get the astonishing fact that the incomes of the well-to-do classes amount to £147,000,000 more. Can there be any doubt who ought to be taxed —the workers with slightly decreased income, or the wealthy class with increased power to pay? I happened to see an old copy of a Return which was published by the Board of Trade in 1904. That Return showed the average wages of an English working class family and the amount of taxation from indirect sources. The compiler of that Return says that in 1904, when there was a Conservative Government in office, the average wages of a working class family was £70 per annum. Side by side with that the average indirect taxation was £7 10s. If anything like that holds good at the present time, you get the astonishing fact that the indirect taxation which falls on the working classes is at the rate of 2s. per £l on their income. It will be seen therefore that any further attempt to put taxation on those who are least able to pay is a crime against the physical well-being of themselves and their children. I was a guardian of the poor some years ago at Oxford, and one fact imprinted itself on my mind. The guardians were scrupulously careful people, and we found that if we took into the workhouse a family of five people in case of great distress, and fed them on food which, though not luxurious, was sufficient to keep body and soul together, the father cost 4s. 4d., the mother 3s. 9d.—it took as much to keep a big girl as the mother—and it came altogether, including Is. 6d. to clothe them, but excluding fire, light and rent, to 17s. 1d. per week. In the division which I represent there are thousands of families living on 11s., 12s., and 13s. a week, and when you come to deal with the question of taxation, keeping in view these facts, you realise that the only way to get additional taxation is to put it on those who can well afford to pay. The Chancellor of the Exchequer struck the true note in the speech which he delivered at Swansea, when he said:—

I think I had better take part in the debate at once. This is the third discussion that has been raised in this House, and very properly raised, within the last three weeks upon questions that have a direct bearing upon financial problems which I am endeavouring to solve. The first of the other two Resolutions was moved by my hon. Friend the Member for Denbighshire, and the other was moved last night by the hon. Member for Leeds. I was very fortunately relieved from the necessity of taking part in these discussions, owing to circumstances over which I have no control, but I can say to-night what I desire to say. I think, therefore, the best plan would be, since I cannot escape, to be perfectly frank and candid with the House. I do not think it is desirable that the Chancellor of the Exchequer at this stage —and I think the House will support me in that—ought to make any statement upon problems of this character. There are problems which must necessarily engage the attentions of a Chancellor of the Exchequer who is in search of a considerable sum of money to meet the requirements of the country. It is an open secret that new taxation must be imposed, and many kindly suggestions have been presented to me. Endless suggestions have been made from time to time, and I am deeply indebted to those who initiate discussions of this kind. I may also say to hon. Members who have initiated discussions of this kind that I am exceedingly obliged to them for the trouble they take in going into these matters, and that I recognise the thoroughness and the ability with which they have presented their case to-night. If I do not take any part in the discussion in the sense of debating the propostion they have advanced it is certainly not out of any lack of respect for hon. Members, still less for the House of Commons. There are only two observations of a general character I should like to make with regard to all these questions. It is not enough to demonstrate the justice in your case. You have to do more than that. You have to demonstrate the possible effect of your taxation on industry. You have got to show what is the productiveness of your taxation. You have to prove that it will not react upon taxation already imposed, and of course you have to show clearly to those who have responsibilities with taxes the practicability, and that, of course, includes the question of evasion. All these things require very, very careful consideration. They are not conclusively answered even by statistics, even by those of my hon. Friend the Member for Paddington, who is a master of statistics. They are not conclusively answered by statistics because behind all these statistics you have to deal with a living person, and a very elusive person he is. I should be sorry for any Chancellor of the Exchequer who built his hopes in finance on the taxation of millionaires. I have seen that advocated in leading articles and magazines, but I would as soon rely on a protective tariff for permanent revenue as I would on the taxation of millionaires. All these things you have got to consider very carefully. The result of the deliberations of the Government will be made, I cannot say at the present moment, but some time about the end of April. They are now anxiously considering the matter, and then I hope to tell the House what the solutions are. In the meantime, I have only to thank my hon. Friends for the great care which they have taken to present their case to the House. I observe that the hon. Member for East Tyrone, in presenting his case, approves of all these taxes in the abstract of Great Britain. He thinks they are admirable taxes. Everybody approves of taxes imposed upon somebody else. So long as this taxation applies to England, Scotland, and Wales he is in favour of it. We have heard of a very able proposal on old age pensions. The part of Ireland in this business is to receive. Ireland must get not only a fair share but a great deal more of all the good things going. I can tell the hon. Member straight away that I cannot accept that theory of taxation. I thought I might as well make that clear in answer to his speech. That, I think, is all it would be safe for me to say. I speak with fear and trembling, dreading that any word or sentence I may utter may indicate a decision not arrived at yet and anticipate a speech yet to be delivered.

The speech which the right hon. Gentleman has just delivered gives some evidence that he looks upon taxation from different eyes than he did when the problem which is to be solved was in the distance. The attitude of the Chancellor of the Exchequer with regard to the possibilities of taxing millionaires is different from the views which he expressed a few months ago. I do not wish to labour the point, but it seems to me that the nearer the problem has to be faced the more seriously he regards it. I think that the House will agree that the problem to be faced is one which the whole House, the Chancellor of the Exchequer, and every one concerned should be approached from the point of view of not pressing heavily on the community. As long as you study figures and statistics only you approach taxation only from the apparent point of view. It must mislead a large portion of the population. When you are considering taxation you must regard it from the whole field of public burden, and you cannot separate one part of our taxation from another. As regards direct and indirect taxation, the labouring classes in rural districts pay no rates. [An Hon. Member: "Rent charges."] That is exactly what I say. It comes to this, that the burden of rates and taxes in an agricultural district is paid by the landlord. I am afraid my whole remarks rather tend to show that, for what my opinion is worth, I want to get this whole question free of economics and free from statisticians, and I want to look at it from the point of view of those who have to pay the tax. The figures the hon. Member gave the House were based upon figures brought before the Committee presided over by the right hon. Gentleman the Member for the Forest of Dean, before which the hon. Member gave evidence, and they were arrived at in this way. The total incomes were taken under Schedules A, B, and C, and D, and then the hon. Member takes these figures and presents them to the House and assumes that settles the question. Let us take it from the practical point of view of the owners of land. The owner of land does not pay his income tax under Schedule A as to one class. If an income tax payer is paying income tax under Schedule C or D he is paying the actual net income he receives, but the owner of land who is paying under Schedule A pays upon his gross rental, with a maximum reduction of one-eighth in respect of agricultural land and one-sixth in respect of buildings. He pays upon the gross rental. Anyone who has any acquaintance with agricultural land will agree with me that any agriculturist who does his duty will spend not one-eighth or one-sixth, but more likely seven-eighths upon the land. Who is now treated as enjoying the benefits of that expenditure? Is it the landlord who has to pay the income tax or is it the tenant or the labourer who are living on the land and are cultivating the land which has been rendered fit by the expenditure of the landlord? If income is to be withdrawn in the form of tax, from whom is it to be withdrawn? Is it from the landlord or from the farmer or the labourer? What happens now? A landlord has an income from an agricultural estate. He knows there is a shortage of houses in the rural district. He puts down £400 to build cottages, and on the whole of that £400, less one-sixth reduction, he pays income tax. He lets that house and a quarter of an acre of land at £4 a year—a good five-roomed house. Having done that he is assessed on rates at £6 10s. a year on the ground that the basis of assessment for rate of and income tax is not what the property let for but what it might be expected to let for. He lets it to the agricultural labourer for £4. Plenty of outsiders would be willing enough to pay £6 10s. Therefore he is rated for income tax not only upon the actual rent he is receiving, but on 50 per cent, more than he receives. What is the net result? He has spent £400 in building these agricultural cottages; he pays income tax upon that, afterwards he receives the rental of £4, and he is paying income tax upon £6 10s. The necessary corollary to increasing the rate of income tax is to alter the assessment upon agricultural land, otherwise you would be withdrawing from the rural districts what would do more than anything else to prevent the people remaining on the land. I only wish to give this one case. I could have given many. What I have stated is merely from the general standpoint, which shows that figures do not prove everything. I defy any hon. Member to show how he is going to put an extra tax upon any employer of labour without at the same time reducing that employer's power of paying wages. Then upon whom does that tax really fall? I do not say that that is an unanswerable argument against taxation. Taxes have got to be paid, but in your taxation it must not be left out of consideration. If you are going to put a tax upon employers of labour the incidence of it is that it leads them to reduce their wages bill and discharge people, and the burden falls not upon the people who pay the tax, but upon the people who are discharged in consequence of it. You cannot get away from it, and that enhances the difficulty which the Chancellor of 'the Exchequer experiences, and I am quite sure that the more these principles are recognised and the more fairly from that practical point of view the burden is imposed the less opposition is likely to be met with on this side of the House in the very difficult task by which he will be faced in four weeks' time. Mr. JAMES PARKER: I entirely agree with the view that taxation shall not be used to equalise income. I do not suppose that their is anybody, whether he be a Liberal or a Conservative, or a Labour Member who would put forward the idea that taxation should be used merely for the purpose of equalising income, but it is nevertheless the fact that in taxation if applied rightly by any State, the effect will be to benefit those at the lower end of the scale, so far as incomes are concerned, because it will take away from the excessive burden of taxes which they have to bear to-day. The doctrine of taxation should be, it seems to me, that each unit within the State should sacrifice for the well-being of the community according to his ability to pay. The point upon which I got up to address the House was the difficulty the poorer classes have to pay taxes at all. I am not sure that it is generally appreciated in this House how difficult it is for the poor man and a large portion of the wage-earners of this country to make any future provision for sickness or trouble or unemployment, or any kind of economic trouble. If it will not be thought egotistical on my part, I should like to give this House a little autobiography. Prior to coming to this House I never knew what it was to have more than at the outside 35s. a week, and 20s. or 22s. a week would be about the income which I enjoyed for commencing housekeeping up to the time I came to this House. So far as I am aware, I have no expensive habits, but I had never been able to save £20 prior to coming to this House, and I submit that the taxation which I had to pay, both in the shape of local rates and national taxation, was out of all proportion to what I received It is useless to say that the poor people of this country who pay their rates with their rent do not pay rates. The agricultural labourer who lives in a house assessed at £6 10s. gets it for £4 because the wages he receives are so low that he can afford to pay no more. Therefore the portion of the rent which he does not pay is a portion of the wages which he ought to receive. It is entirely beside the mark to suggest that the agricultural labourer living in such a house does not pay rates.

Let me give another illustration. Some years ago in my own town I took the trouble to get out the rents and rates of a given area of slum property about two acres in extent and with a population of close upon 500 people. None of the houses were paying more than 3s. a week in rent. I took along with that a middle-class area of about the same extent with a population of about 90, and I found that the actual rates paid on the slum area were nearly four times what was paid on the middleclass area. It is ridiculous to say that the poor people do not pay rates. I believe the amount of money raised in indirect taxation is some £63,500,000 a year. I do not suggest that the workers pay the whole of that, but they pay an astonishing amount. Speaking for myself, I have no objection to the income tax going down lower than it does at present, given that you will remove the burden of indirect taxation which the workers bear to-day and that you impose a limit wage, below which, whether you take Mr. Rowntree's figures or any others, no one shall pay taxes at all. Under those conditions I do not object to a tax graduated from top to bottom—at least we should know what we were paying. I am convinced that the electors of Croydon would not be shouting for "Dreadnoughts" if they saw what proportion of the cost they now pay. We at least know pretty well what we are paying for in the rates, but the mass of the people in the country have little or no knowledge of what they are paying for when they pay their taxes, or when they are paid.

I have taken the trouble to find out what taxation costs me in one or two items. It was more during the South African War, but it has been reduced during the life of the present Parliament. Take a wage of about 30s. a week. After all, a Member of Parliament's salary in my case does not enable me to live in a much larger way than before I came to the House. I find that the indirect taxation on tea is costing me from 11s. to 14s. a year, the sugar is costing me 13s., other foodstuffs which bear taxes are costing no less than 7s. a year, and the total is about £1 l0s. I have got one or two bad habits, such as the use of tobacco, and I daresay that costs me £1 10s. a year in taxes. If a man wants to keep a dog to protect the youngsters when he is from home, he has got to pay 7s. 6d. Altogether in indirect taxation the ordinary working man earning, say, £1 10s. a week, pays from £3 10s. to £4 a year. And remember that his £1 10s. a week is not for the 52 weeks of the year, but probably does not cover more than 46 weeks of the year, when you take into account periods of sickness and unemployment, when he is earning nothing. To come back to the point on which the Member for North Paddington started. If you are going to benefit the mass of the people of this country, you must have a system of graduated income tax, and I think a differentiation between those incomes that are earned and those which are not earned. That has been already conceded up to a certain point. It ought to be conceded right through the whole of the tax. But I endorse the statement of the Mover of the Resolution that graduation is much more important than differentiation in this matter. I see no reason why the Government should not put this into practice. I do not believe that the workman is actually free from income tax. When I go to purchase a commodity the tax is easily shifted on to me. Whether the commodity be clothes, food, or whatever it is the man in business when fixing his price adds up his various expenses, the income tax as well as rent and rates, before the profit is realised. In a way I not only pay indirect taxes, but I assist in the payment of the direct taxation. I therefore subscribe myself a supporter of the Motion brought forward by the member for North Paddington. I should have been pleased to have spoken in favour of the taxation of land values as another method—though he might not have agreed with me in that— but that is not before the House now. I see no reason why we should not have a graduated income tax as well as the taxation of land values, because I believe, though you would not get a great deal of money out of the tax, yet its economic value would be out of all proportion to the amount produced.

I dissent entirely from the view put forward by the Proposer of the Resolution. I object because every basis of taxation should be a basis which does the least injury to the State as a whole. It is all very well for Members to come to the House and say that the increase of tax on large incomes is going to-be a benefit to the State without any injury to the individual. The fact is, that every tax levied on industry and on individuals means the withdrawal of capital from the trade of the country. Let me give an illustration of what occurs in my own business. For every £100 that I would make in my business, I would pay £100 in wages. The whole capital of my business consists of colliery undertakings, and it may be taken as a general proposition that if £100,000 or £200,000 is spent, a similar sum will be spent in wages. The wages bill in my business practically amounts to the amount of capital embarked in it. Is it right to tax me over and above my income when the result will be the withdrawal of certain moneys that I would otherwise invest in business? I quite agree with all the economists from the time of Adam Smith that taxes are injurious to trade, and therefore it is for the State to decide which taxes are least injurious as a whole. I perfectly grant that taxes should fall on the people who are best able to bear them. I am quite in agreement, rightly or wrongly—hardship though there may be caused to the actual workers by the withdrawal of this money which is spent as income, and which is really capital—that the incidence of taxation must always, sooner or later, cause an injury to the workers themselves. Now, I hold the opinion very strongly that if the Government have to raise £10,000,000 by income tax or by any form of professedly income tax the first duty of the Government is to see that that tax is made of a character which it is impossible to evade. I do not dissent from the view that however large the deficiency that the proper people to pay are the income tax payers.

What is the actual condition of the body of people who have large incomes? I could give numerous cases of people who have made arrangements to avoid the possible proposals of the Chancellor of the Exchequer in a progressive income tax. It is perfectly simple. A man can go on the Stock Exchange and buy foreign investments and the coupons can be cashed in Paris, Berlin or any other similar place, and it is impossible for the State to collect on these bonds, except the tax is levied at the first source in this country. How can you, for example, tax foreign obligations to which coupons are attached, and which are payable in all the capitals of Europe? It is perfectly easy for people to open accounts at Paris, Berlin, or New York, and to have the interest on their foreign obligations paid in this country and thereby evade the tax. The hon. Member said not one word on the question of these evasions.

I remember very well what the hon. Gentleman said, but the conscience of people in regard to income tax is very different from their conscience in regard to other matters. I say that the fear of a progressive income tax is that it would make for dishonesty; it would make men declare incomes which in point of fact were not true, and so evasion would go on. It is all very well for the hon. Member to say that we should leave it to the honour of each individual to pay the tax, but the thing is ludicrous. What about the great mass of people who have money invested in foreign countries? Does the hon. Member think that when people have invested money in foreign countries they are going to make it part of their income?

was understood to say that there could easily be an international arrangement by which the income on foreign investments could be taxed.

No such arrangement has ever been made by any country of the world. The proposal has been made with regard to France, but as a matter of fact it has not yet passed the French Chamber. There is no such agreement with any country.

So far as concerns the tax I am perfectly willing to pay it, but I candidly say I am unwilling to pay anything more than I am legally bound to pay. [An HON. MEMBER: "No one wants you to pay more."] But, assume that I form a company, called the House of Commons Company, or—I will not use the name of the House of Commons—the A company. [An HON MEMBER: "The Markham."] Well, The Markham Company, Limited. I transfer my property to it, and, under the articles of association, I become managing director, with a large salary; I hold the ordinary shares, which are small in number and the deferred shares. In that form the company is registered, and the result would be that I would pay no death duties. The Chancellor of the Exchequer would not then say that I was legally entitled to escape the obligation, but he would say that it was an evasion, though a legal evasion, because no one could prevent me from transferring my property to the limited company and drawing this income in the form of salary as managing director, leaving the shares to my children, and thus escaping the death duties. However, that is done.

Hon. Members may say you are entitled to do what you like in regard to the tax provided you pay what you are legally bound to pay, but there is the question of legally and morally. A tax should be levied which is beneficial to the State, and in such a way that it does not create a huge system of fraud. For this reason I urge on the Chancellor of the Exchequer the desirability of increasing the income tax. I say to him that the proper way to increase your tax is to levy it at say 1s. or 1s. 4d., and graduate down from that amount, because by that system you could collect it at its source from the companies that pay the tax. The best way for the Chancellor of the Exchequer to levy the tax so that there will not be a gigantic system of fraud is for him to fix his maximum income tax to be paid by public companies, and for the reductions to be given from that basis downwards on smaller incomes, but to ask that the individual should make his own declaration and you rate him according to that basis is that this gigantic system of fraud and evasion arises.

Assume that the tax collected by the State at its source is 1s., and that the super-tax, for the purposes of argument, is 2s. The source collection is 1s. It is for the individual to declare, legally not morally, so far as evasion goes, what his income is. On that income, as far as I understand the super-tax, he would pay, by his declaration, from that higher amount. There would be endless inquisition into the accounts of all private individuals, showing how this tax was made up. I am sure ninety men out of a hundred would be unable to say if their accounts came to be taxed what was their annual income. I am sure I do not know what my income is, and I am sure the great majority of men do not keep books as to their private incomes the same as in business. I contend that the basis of income tax being fair and equitable, and being a tax which fall on the people who are best able to bear it, the proper way to levy as the basis of the tax is to collect it at its source, and not indirectly as is proposed by all these ridiculous proposals, as I term the proposals that are being put forward from time to time; ridiculous so far, in my opinion as a business man, that they would simply lead to evasions and would make general dishonesty in the State. The collection of tax if levied at the source is simple. All the authorities at the Treasury have been agreed on that subject, and all the authorities at the Treasury are agreed that the moment you come to the declaration on the basis of a super-tax evasion and fraud will follow. There is not a Member who has given evidence from the Treasury who does not share that view. No doubt the hon. Member (Mr. Chiozza Money) was present when evidence was given on this question.

I trust the Chancellor of the Exchequer will recognise, unless he wishes to set about a system of false declarations in this country, that the proper way is to levy the income tax at the source, and to give rebates according to the ability of the people.

I congratulate my hon. Friend the Member for North Paddington on his admirable speech, and I think I express the opinion of my colleagues on these benches when I say that he raised the level of the whole debate. I not only support the Motion, but I strongly support the substitution of a graduated income tax in Ireland for the present income tax. I do not think the Chancellor of the Exchequer will make very much out of it. Nobody in Ireland has got a large income except a few judges and the Attorney-General. But the Chancellor of the Exchequer, with the pleasing rhetoric of which he is such an admirable master, rather chaffed me on being interested in matters relating to Irish taxation. I think I can give the House some figures in regard to the prospective yield of incomes which will be rather striking. The hon. Member for Paddington in dealing with the yield of the new income tax drew the attention of the House to the extraordinary growth of the income of this country as judged by the gross assessment of the income tax. He said it had increased from £763,000,000 in 1897 to £944,000,000 last year. These are the official returns of the Commissioners of Inland Revenue for 1892–3: £712,000,000 assessment in the United Kingdom, and £38,000,000 assessment in Ireland, while last year for the United Kingdom as a whole the assessment was £943,000,000, and that for Ireland stood at precisely the same figure, £38,000,000. The national income of Ireland, or at least that portion which comes under review for income tax, has been absolutely stationary for the last sixteen years. If you take indirect taxation the results you arrive at are worse than in the case of direct taxation. Since the time of the Financial Relations Inquiry food taxes have increased by 120 per cent. I venture to think that these two facts amply justify my colleagues in the attitude which they have always felt it their duty to assume upon these questions of taxation, so far as they affect Ireland. The Chancellor of the Exchequer, when he comes to introduce his Finance Bills, will find that I am perfectly serious about the matter. The principle is precisely the same. The Motion of the hon. Member for North Paddington asks that individual citizens should contribute to the national exchequer in proportion to their resources. That is the very principle of the Act of Union, viz., that the two countries should contribute according to their resources. As far as I know, the only superiority I possess over the Chancellor of the Exchequer is that I have read the Act of Union with great care, and he, I am sure, has never opened it in his life, and never will except when he opens it, I hope, for the purpose of repealing it. But he is budgeting under the Act of Union, and he will there find in express terms the case which has been urged again and again from these benches.

With these preliminary observations I should like to say a word upon the general principles of taxation. As far as I understood the last speaker, his objections to the plan of the hon. Member for North Paddington were based upon a pessimistic view of human nature, with which I am glad to say I do not agree. The objections he took were not special to this tax; they were general objections to all taxes. All taxes may be evaded; at least, people can attempt to evade them. People smuggle brandy and cigars, and they do it with the same object as those who do not give full and accurate information for the purposes of income tax. Nobody wants to impose taxation for the fun of the thing.

I do not suggest that the hon. Gentleman did. And nobody wants to pay taxation for the fun of the thing. The difficulty is that you are confronted with the problem of raising a certain amount of money for national purposes for the upkeep of the State. If you get rid of taxes you get rid of the State; they stand or fall together. There are certain political theorists who think it would be an extremely good job to get rid of the State. If you press the individualistic views of the hon. Member who spoke last to an extreme point I think that would be their logical conclusion. As I understand the principle upon which the Motion before the House rests, the hon. Member for North Paddington proposes to do 6wo things. He has pointed out that you have at present a graduated income tax, but that it is clumsy and haphazard, and he proposes to substitute a scientific graduated income tax. The general principle upon which he works is that citizens ought to contribute to the burdens of the State in proportion to their resources. There was one point which he did not urge, but which, of course, is a commonplace in these discussions. I personally think—and it is a view held by many people who speak with much greater authority than I do— that before you start taxing people at all you ought to make a subsistence allowance. After all, government is an important thing, but life comes first. The figures which the hon. Member for North Paddington used with such masterly skill had the special recommendation that they were not mentioned in this debate for the first time. They were published by the hon. Member two or three years ago in a book which has had to bear the brunt of hostile and searching criticism from every quarter, and I think I can fairly summarise the result of that criticism by saying his figures substantially stand to-day. The picture of the relative distribution of wealth and the relative incidence of national taxation among the various classes of the population is appalling. We were always told when we raised the question of over taxation in Ireland that that country had no special case. We were told that the case of Ireland was that of the poorer classes in this country as well. I think the facts brought before the House to-night must have convinced everybody that the poorer classes in general have got a very grave and serious case against the present system of taxation, and that the proposal which has been made by the hon. Member would do something to remedy it. The Chancellor of the Exchequer very properly said that it was not sufficiently demonstrated that a new income tax of this character was just, and one also which was practicable, but I do not think that any speaker who has taken part in the debate has brought forward any argument of substance to show that it is impracticable. Every new scheme of taxation is described as impossible until it is achieved. The hon. Member for Woodstock went back and instanced the death duties, in order to get a test of the value of the arguments which are adduced when new forms of taxation are proposed. One has only to read the contemporary discussions in Germany, where they are endeavouring to form a death, or inheritance, duty, which is substantially a duty of the same character as has been in existence in this country, to find it clearly demonstrated by theorists, who I suppose expect to suffer by the change, that it is impossible to do there what has been done in this country for the last 14 or 15 years. Therefore, speaking from the special point of view of Ireland, I think a graduated income tax would bring a little more justice into the manner of raising the general body of taxation from that country. When I came into this House I was labouring under the delusion that English Members, and especially those representing the Government, were ready to examine the statistics on which the case of Ireland with respect to taxation is founded. I regret to say that that has not been my experience. The Chancellor of the Exchequer spoke in rather a light vein, and I do resent bitterly and repudiate the suggestion contained in his speech that we in Ireland are anxious to sponge on this country. We are perfectly prepared, if he and his Government will move forward and establish a Government in accordance with public opinion in Ireland, to bear all the burdens of government in that country, and to pay a larger tribute to the upkeep of the Imperial system than he will ever get under the present political arrangement. Until that arrangement is made I shall on Motions of this kind and all other Motions relating to matters of taxation raise my voice against the system which I believe to be founded on injustice and disastrous to the welfare of my country.

I wish to take this opportunity of drawing the attention of the Chancellor of the Exchequer not only to the incidence of the income tax, but also to the schedules under which some of the income-tax payers have been paying their taxes. It seems to me to be a grave scandal that in the agricultural districts the agricultural classes are called upon to pay their income tax under schedule B. It amounts to this, that owing to the recent success in agriculture there are many of the agricultural classes who are making large incomes from land, and paying practically no income tax. They pay under schedule B—that is upon one-third of their rent, so that if a man has a farm of 500 acres of land—and I know of many places in my own particular district where they are farming 500 acres, and is making a profit of £2 per acre, that is £1,000 profit they actually at the present time pay no income tax whatever, though they drive in their motor cars. Take the case of a man renting 500 acres at £l per acre, one-third of this rental is £166; he gets the usual abatement of £160, so he pays on £6 only. Take the case of a person renting 700 acres at 15s. per acre, his rent is £525; one-third of that rental is £175, so he pays on £15 only. In other words he pays 11s. 3d. income tax. I could give illustrations of farms on Crown lands—some of the finest land in the country. I could give the case of a farmer working 1,000 acres at 30s. per acre who pays in income tax only £13 2s. 6d. This state of things has become a perfect scandal in our agricultural districts. These farmers shout the loudest for patriotism, but they not pay their fair share of income tax. I am sure if the Chancellor of the Exchequer would look into this matter he would net a good many thousands a year more than he does.

The hon. Member tells us that farmers working 500 acres and making £l,000 a year pay no income tax. I should like to ask how the hon. Gentleman reconciles that statement with the idea that the landlord is a grasping, greedy person, who taxes the land for all it is worth. That has been the basis of the attacks upon the landlords during the last few days. It is the basis on which proposals for land taxation are made. I welcome the statement of the hon Gentleman because it shows how delusive all these declarations are. As a matter of fact, it seems the person to be pitied is the landlord, who has not asked enough for his land. May I point out the fact, which I think the hon. Member knows, but which may not be generally known. It is quite true anybody farming, whether as a landlord or a tenant, is assessed for income tax about one-third of the rent he pays or would pay if he were a tenant, and it may be quite true that in a prosperous year the farmer reaps the advantage, and in a bad year he has to pay, though he may lose if he elects to be assessed for his income tax under Schedule B.

If the farmer likes he can claim to be assessed under the other schedule.

Yes, he might elect to pay under another schedule. I did it myself last year, and I can give all the details. He has to show his books, a return is sent him, which he has to fill in. The hon. Member knows in many cases a farmer keeps no books. It was perfectly easy in my case, but having once elected to pay in that way the income tax authorities will not allow you next year to pay under Schedule B. That is my reading of the Act, and the Chancellor of the Exchequer is here, and if I am wrong he can contradict me. I did not have the pleasure of hearing the speech delivered by the Chancellor of the Exchequer this evening. If he will allow me to say so, most respectfully, it always gives me the greatest pleasure to listen to his speeches, and I regret it more on this occasion because I am informed he appeared in a new rôle. He is always appearing in new rôles, and he always does credit to them. This time he appeared as protector of millionaires. I congratulate the right hon. Gentleman upon having taken up that role. The right hon. Gentleman now feels the responsibility of office, and he has at last awakened to the fact that the millionaire has a position in this country which it would be very ruinous to the country to alter. Hon. Members heard the excellent speech of the hon. Member for Preston yesterday, in which he pointed out that access to capital was much more necessary in this country or in any other than access to land, and he gave an extraordinarily clear illustration of the truth of that statement. It is absolutely necessary that capital should be encouraged in this country and not discouraged, and that brings me to the Resolution before the House.

Before I deal with that matter I wish to say a few words in answer to the very interesting speech of the hon. Member for East Tyrone, who began by saying that the hon. Member for Paddington had raised the debate to a humane and scientific level. I have had some experience in business, and I have seen a great many people wth a great deal of scientific knowledge come into the City and endeavour to make fortunes by scientific methods, and I have seen other people without any scientific knowledge, but with a certain practical knowledge of the work, come there. The result has always been that the gentleman with the scientific knowledge has ended in the Bankruptcy Court, and the gentleman without that scientific knowledge but with a little common sense and practical knowledge of the world has ended probably in Park-lane. Therefore I think the tribute which the hon. Member for East Tyrone has paid to the hon. Member for North Paddington with regard to the science of the question is a little ill-judged on the present occasion. Now about the humane part of it. Taxes are a matter of business, as we were told by the hon. Member for Mansfield, who, if he will allow me to say so, made a most excellent speech—a common sense practical speech, although it might not have been representing to the House a very high ideal of human nature, and personally I do not believe that human nature, speaking as a whole, has very many high ideals. [An HON. MEMBER: "Speak for yourself."] I was endeavouring not to make this a party question, and I do not know that the Tory is any worse than the Radical. This is really a question of plain, practical, common sense business. There is no humanity in it, and if you attempt to deal with a practical business question from a humane point of view the only result is you make a mess of it. I do not know that sentence is conveyed in very beautiful language, but it is practical, and after all in this life the more practical you are the better. The hon. Gentleman has a very extraordinary idea of supporting this Motion. He said he supported it because in Ireland no one has a large income. Now what more practical idea can you have than that. He supports it because it would not affect Ireland. Where is the humanity, the practical business point of view is there. During the many years I have been in this House I have always found below the Gangway that when the question touches them it is the practical view they take. Will not they look at the thing, when they deal with questions relating to the Empire as a whole, from the same point of view from which they look at questions which deal only with Ireland? The hon. Gentleman went on to say the poorer classes have a grave case against the injustice of the present tax. Some eight or nine years ago the then Chancellor of the Exchequer informed me that direct taxation was about £1 11s. 3d. a head, and indirect taxation about £1 10s. a head, but a man who did not drink or smoke only pays 7s. 3d. I do not call that a very enormous amount. The argument has been advanced that people should pay according to their ability to bear the burden. With that I quite agree, provided it is put in a proper and sensible manner. A man with £10,000 a year pays £500 in income tax, and a man with £3,000 a year pays £150. The man with £10,000 a year pays as much more as the proportion directs that he should pay. It is a fair proportion between the two persons. The hon. Member opposite rather reverts to the idea of the Eastern potentate, who used to send his Grand Vizier to find out who was the rich man. He would probably have chosen, if he was in existence now, the hon. Member for Chester. Why does not the Chancellor of the Exchequer go to the hon. Member for Chester and demand that according to his means he should pay? That is the idea, that you should look out for a rich man, and when you find him take all you can out of him. I believe in a great country like this, with all the foundations upon which finance, business and trade rest, if that is going to be the idea you will fail.

Why is the hon. Member criticising my speech when he has not heard it?

If I have said anything which is inaccurate I will at once withdraw it.

The hon. Baronet said I said you should look out for a rich man, and when you have found him take all you can get from him. I distinctly repudiated that idea at the beginning of my speech in the clearest terms at my command.

I regret very much that my powers of speech are apparently not sufficiently good to enable me to convey my meaning to the hon. Gentleman. I never for a moment said he had said that. I said the result of putting a graduated income tax upon incomes above a certain point would have that effect. How is the hon. Gentleman going to find out these people with large incomes? He would have to tell everyone to make a return of his income, and if he was a rich man he would have to pay a larger proportion than anybody else. The hon. Member below the Gangway said, "Why not ask for those inquisitorial particulars?" I will give a very simple answer. It has never been the custom of Englishmen to submit to investigations of their private affairs in that manner.

I think that the hon. member is mistaken. Suppose he is engaged in a business which is making a profit of £500 a year, and suppose that, being a patriotic person, he has also invested £10,000 in Great Northern Railway Preference stock, for which he receives £400 a year. The tax on that £400 is deducted at the source. Nobody knows what he has got. He simply returns what he is making in his business, which is £500.

It is all very well for the hon. Baronet to imagine a case. I have to give a full return every year of what I earn.

I never said that the hon. Member has not to give a return of what he earns.

It may be in the case of the hon. Member all his income. I am sorry he has not exercised that frugality of which we hear, and invested his money for a rainy day.

A few days ago I heard of a man who never earned more than 16s. a week, and when he died he was. possessed of five houses and £300.

He brought up a large family. I really do not see why the hon. Member should laugh. The man was doing the best he could for his family.

rose in his place and claimed to move, "That the question be now put," but Mr. Speaker withheld his assent, and declined then to put the question.

Debate resumed.

What this class of taxation would do would be to prevent the hard-working man from saving his money and doing what I believe would be in the best interests of the State—that is, accumulating a nest-egg to put into the henroost, which the right hon. Gentleman one time thought of raiding. We have been told that if this tax was instituted evasions would occur. There can be no question of this. I am very much indebted to the hon. Member who made the suggestion for suggesting a method of evasion which never occurred to me before—

rose in his place, and claimed to move "That the question be now put," but the Speaker withheld his assent, and declined then to put the question.

Debate resumed.

The suggestion was that you could turn your capital into a limited company, pay yourself as manager an extremely large salary, and divide the shares among your children.

And it being Eleven of the clock the Debate stood adjourned.

WAYS AND MEANS (22nd MARCH)

REPORT.

Resolutions reported: "That, towards making good the Supply granted to His Majesty for the service of the years ending on the 31st day of March3 1908 and 1909, the sum of £195,405 4s. 10d. be granted out of the Consolidated Fund of the United Kingdom.

"That, towards making good the Supply granted to His Majesty for the service of the year ending on the 31st day of March, 1910, the sum of £48,475,000 be granted out of the Consolidated Fund of the United Kingdom."

Motion made and question, "That the House doth agree with the Committee in the said Resolutions "—put and agreed to.

Bill ordered to be brought in by the Chairman of Ways and Means, the Chancellor of the Exchequer, and Mr. Hob-house.

CONSOLIDATED FUND (No. 2) BILL

Brought in, and read the first time; to be read a second time to-morrow.

President of Board of Trade (Salary)

(IN THE COMMITTEE.)

Order read for Committee to consider the authorising of an increase in the salary of the President of the Board of Trade, to be paid out of moneys provided by Parliament. (King's recommendation signified.)

I shall certainly not offer any opposition, but I would like to ask whether this is the only office whose status is to be raised?

It is intended that the same advantage may be given to the President of the Local Government Board.

This Bill is merely introduced with a view of removing certain legal difficulties which prevent the status of the President of the Board of Trade being raised. I may perhaps inform the House that, in the event of the Committee and Report Stage being passed, there will be provision in the Bill which will prevent the present occupant of that office from receiving the -increased emoluments.

Will a statement be made on either of those occasions as to any other office—the Board of Agriculture?

May I ask the right hon. Gentleman whether we shall have a full opportunity of discussing the point to which he referred when the Bill is brought forward?

The intention, of course, of the present Resolution is to enable us to introduce the Bill. The Resolution must be passed in Committee of Ways and Means in order that permission may be obtained to bring the Bill forward. When the measure is introduced, full opportunity will be given to the House to discuss it on the second reading.

Will that full opportunity be after 11 o'clock or when the Rule is suspended, or shall we have a discussion on the Bill within the hours of the ordinary sitting? If the hon. Gentleman can give us an assurance that the opportunity will be given for discussion during the ordinary sitting we shall be content, otherwise we should object now.

There is no intention of suspending the Rule for the purpose of this Bill, and the discussion will be taken during the earlier portion of the sitting. With reference to a question of the hon. Member below the Gangway, it refers to other offices and not exclusively to the Board of Trade, and it would be out of order for me to deal with any other matter save that which relates to the Board of Trade.

Resolved, that it is expedient to authorise an increase in the salary of the President of the Board of Trade, to be paid out of moneys provided by Parliament.— [ Mr. Joseph Pease. ]

Resolution to be reported to-morrow.

The House adjourned at eight minutes after Eleven of the clock.