House of Commons
Monday, August 13, 1917
Private Business
Armstrong, Whitworth, and Company (Railways) Bill,
Cheshire Lines Committee Bill,
Levinstein (Railways) Bill,
Lords Amendments considered, and agreed to.
Richmond (Surrey) Electricity Supply Bill [ Lords ],
Read the third time, and passed, without amendment.
Royal Victoria Infirmary, Newcastle-upon-Tyne, Bill [ Lords ],
Read a second time, and committed.
Ordered, That Standing Orders 211 and 236 be suspended, and that the Committee on the Bill have leave to sit and proceed To-morrow—[ The Deputy-Chairman. ]
Deaths from Starvation or Accelerated by Privation (England and Wales)
Return presented relative thereto [ordered, 27th February; Mr. Hayes Fisher ]; to lie upon the Table, and to be printed. [No. 132.]
Imperial Revenue (Collection and Expenditure — Great Britain and Ireland)
Return presented relative thereto [ordered, 28th June; Mr. Lough ];to lie upon the Table, and to be printed. [No. 133.]
Revenue and Expenditure (England, Scotland and Ireland)
Return presented relative thereto [ordered, 4th July; Mr. Lough ];to lie upon the Table, and to be printed. [No. 134].
Oral Answers to Questions
War
Labour Disputes (Ireland)
asked the President of the Board of Trade if the result of the arbitration between the Amalgamated Society of Engineers and the Dublin Port and Docks Board is yet known;and if he will state the decision of the arbitrators in the Kynochs and Arklow and Dundalk Railway workers disputes?
I have been asked to reply to this question. The arbitration awards in the cases of the Amalgamated Society of Engineers and the Dublin Port and. Docks Board and the Dundalk Railway workers were issued to the parties on the 8th and 2nd August respectively. In the case of Messrs. Kynochs, Arklow, the award will be issued as soon as a question as to the particular classes of workers to be included has been made clear.
Restricted Exports (Horse Hides)
asked the President of the Board of Trade whether on 18th January last a Glasgow firm applied to the War Trade Department for a licence to export horse-hides to America and that the application was refused; whether in reference to the above, on 17th February the hon. Member for the Bridgeton Division of Glasgow wrote to the Department asking whether there had been a change of policy and on what grounds the application had been refused; whether, having received no reply, the hon. Member wrote again to the Department on 16th March and 10th April and finally, on 14th April, was informed that owing to War Office requirements no horse-hides could be exported; whether, in view of the fact that since January licences to export horse-hides have been issued to various firms, such as F. A. G. Medd, London, Messrs. Hermann Brothers, London, and Bernard de Jong, London, he will state the reason for this differential treatment; and whether he will institute an inquiry into the manner in which these licences have been granted or refused?
I have been asked to answer this question on behalf of the War Trade Department. I am informed by the War Trade Department that the facts stated by the hon. Member in the first two paragraphs of his question are correct. The omission to reply to the letters received 'from him before the 10th April was due in part to the loss of two experienced officers who left the Department for military service and an expression of regret was tendered to the hon. Member by a letter dated the 12th April, and was accepted. It was explained in the same letter that owing to the requirements of the War Office it was not possible to grant licences for the export of any horse hides and that the firm on whose behalf he had written was so informed in February. Upon the third paragraph I should explain that as I stated in replies to previous questions, the issue of licences for the export of horse hides is made upon the recommendation of the War Office to which the applications are referred. I understand that great importance is attached to the retention of English horse hides and that a discrimination has been made between these hides and Cape and Egyptian horse hides which have been treated as being rather in a different category. There has, therefore, been some differential treatment in the issue of some licences to the firms named in the question, and the refusal to recommend the issue of a licence upon the application of the Glasgow firm which applied to the best class of hides. The question is one of extreme difficulties for several reasons and the Order of the Army Council notified on the 10th July under which all horse and mule hides were taken over, represents a policy which could only be defined after very carefully considering the resources of the tanners and their capacity for dealing with these classes of hides. The subject has been most carefully considered and it is not thought necessary to institute any inquiry at the present time.
Is the hon. Gentleman aware that the account which is given in the answer of the letter which was sent to me is not in accordance with the facts; that there was no mention made in that letter of two experienced officials being withdrawn, but that I was told that the officials who were responsible for the delay had been severely censured; further, is he aware that this Department is dealing with trade amounting to many million pounds sterling, and that the doubt which has arisen as to its impartiality in this matter has caused great disturbance—[HON. MEMBERS: "Speech!"]—in the commercial classes who are affected, and will he grant an inquiry into the matter?
That is in the nature of an argument.
I was not aware of the group of facts as stated by the hon. Gentleman. Perhaps I should explain that the War Trade Department is not under the control of the Board of Trade. The position is rather an anomalous one for me. I have been requested to answer questions in this House for the War Trade Department. The representations the hon. Member has just made to me shall be made the subject of inquiry. I am very anxious that I shall not be expected to make replies in the House which cannot be substantiated.
Can the hon. Gentleman state which Department is specifically responsible?
I am really in some doubt myself. The Department that seems to be more closely attached is the Blockade Department of the Foreign Office, but I will inquire as to which Department the responsibility is attached.
Is the Government in doubt as to whether it has control over this Department?
No, Sir; there is no doubt about the Government having control. The only question is which Department should accept responsibility.
Railway Fares (Ireland)
asked the President of the Board of Trade whether railway fares have been increased in Ireland; and, if so, have they been increased to the same extent as in Great Britain?
The issue of excursion and other classes of cheap tickets has been discontinued in Ireland, but the increase of 50 per cent. in ordinary railway fares is not operative there.
Why are Irishmen allowed to get off helping to pay for the preservation of the Empire as well as to get off fighting for it?
The 50 per cent. increase of fares was never intended for revenue purposes. It was purely a restrictive device, and it was not felt to be necessary in the case of Ireland.
Woolwich (Train Service)
asked the President of the Board of Trade whether his attention has been called to the complaints made by munition workers and others as to the overcrowding and want of passenger accommodation in third-class carriages on the South-Eastern and Chatham Railway Company's trains from London stations to the Woolwich district; is he aware that on these trains there are many empty first-class carriages not allowed to be used; and will he instruct the Railway Committee to specially inquire into this matter at once and also provide further third-class carriages?
No recent complaints about the Woolwich train service have been made to me, but, in view of the special difficulties under which the working of traffic in that district is necessarily conducted in present circumstances, I am afraid that overcrowding cannot be altogether avoided. I am, however, sending the railway company a copy of the hon. Gentleman's question.
National Union of General Workers
asked the Parliamentary Secretary to the Board of Trade if fourteen members belonging to the National Union of General Workers employed at the Tower Collieries, Hirwain, South Wales, received fourteen days' notice to leave their employment because they refused to leave the union, of which they had been members for many years; and if he will take action in the matter?
I have been asked to reply to this question. No intimation of the dispute referred to has been received at the Ministry of Labour, but inquiries are being made into the matter.
Timber Measurers (Women)
asked the Parliamentary Secretary to the Board of Trade whether the Timber Supply Committee propose training women as timber measurers; whether there are experienced men available who are over military age; and, if so, whether these men will be given the opportunity to fill the positions and save the expense of training women while this labour can be obtained?
In view of the scarcity of timber workers, a limited number of women are being trained experimentally as timber measurers and clerks and as cutters of pit-wood and tops, both of which are comparatively light occupations. Men with timber-working experience are required for work of a more arduous nature for which women are unfitted, and applications from men timber measurers-are being absorbed as vacancies occur.
Are these men being given all the opportunities that can be given them of filling these positions or have they been excluded from applying?
I understand that there is a real demand for their labour and that they are given opportunities.
National Service Department
asked the President of the Board of Agriculture whether he is aware that the National Service Department asked the Royal borough of Salford for volunteers to work on the land, and that 600 or 700 men volunteered; whether the farmers in the district refused to employ them, and what steps the Department now proposes to take?
The Board are not aware of the position referred to in the first two parts of the question, but are making inquiries.
asked the Parliamentary Secretary to the Ministry of National Service if he will give a Return of full-time and part-time officers employed in connection with the Department in Wales whose salaries are £200 and upwards?
Eight officers, whose salaries are £200 per annum or over, are employed by the National Service Department in Wales. They include one agricultural Commissioner at £500, three agricultural Sub-commissioners at £250, and four sub-area substitution officers at £260 per annum.
Is the hon. Gentleman prepared to give the names and the salaries as signed to each?
I have given the salaries, but I am afraid I must ask for notice as to the names.
asked the Parliamentary Secretary to the Ministry of National Service if he will state how many National Service Volunteers have been enrolled in Wales; for how many of these has employment been found; and how many persons have been released for the Army for whom substitutes have been found by the Department in Wales?
The number of volunteers enrolled in Wales is 20,231. No separate register of placings in Wales has been kept, and considerable labour would be involved in obtaining the information desired by my hon. and gallant Friend. In any event the National Service Department has not the required information regarding placings prior to 1st May, up to which date the placing of National Service Volunteers was exclusively entrusted to the Employment Exchanges. If my gallant Friend particularly requires the fuller information asked for, I will endeavour to procure further details.
asked how many substitution officers and assistant officers are employed by the National Service Department; what is their remuneration; and how many substitutes have been found for men released for the Army during the month of July?
The number of substitution officers and assistant substitution officers employed by the National Service Department is 240. Of these 148 are paid by the Department salaries of £268 per annum and one of £105 per annum. Of the remainder, eighty-one are loaned to the Department and paid by the War Office, and ten are voluntary (unpaid) officers. During the month of July 1,528 substitutes were found by the Department for men released for military service.
What are these officers doing now?
As my hon. Friend knows, the Department is being reconstituted.
asked the Parliamentary Secretary to the Ministry of National Service if he will state the expenditure of the Department from the commencement to 1st August, and the number of men and women for whom work has been directly found by the Department?
The expenditure of the National Service Department from the commencement of the Department to 1st August was £192,709 6s. 1d. Of this, approximately £87,000 was spent on the publicity campaign under the original scheme of National Service. The number of volunteers placed in employment since the commencement of the Department is 19,951. In addition, the services of 9,817 part-time workers have been utilised, and the Department has carried out the distribution of 68,595 soldiers and civilians whose services have been lent for agricultural work. The number of women who have been placed in various forms of employment is 14,256, making a total of 112,609 men and women whose services have been utilised by the Department.
Food Supplies
Poultry Stubbles (Foxes)
asked the President of the Board of Agriculture whether in many parts of the country, poultry keepers are unable to make use of the stubbles for poultry owing to the presence of foxes; whether the food supply of the country is thereby reduced and the shed grain largely wasted; and, if so, will he say what action he proposes to take?
The Board have repeatedly been in communication with the Association of Masters of Fox Hounds, through whose efforts the numbers of foxes have been kept under in districts in which they tended to become excessive. No representations have been received from poultry keepers in the sense indicated in the question, but if the hon. Member knows of any neighbourhood in which the number of foxes will make it unsafe to turn poultry on to the stubbles the Board will be very glad to take action.
Motor Tractors (Trials)
asked the President of the Board of Agriculture whether his attention has been called to the result of the ploughing trials of motor tractors at Burgess Hill, Suffolk, on 28th July, 1917; and whether, having regard to the superiority in power and efficiency and cheapness in working of the Whiting-Bull tractor as demonstrated by the tests, the Food Production Department will reconsider their views on the subject and will now purchase Whiting-Bull tractors and give equal facilities for their introduction and use to those which have been given for the Ford tractors?
My right hon. Friend has seen the reports of this test in the Press, but has no official knowledge of the results referred to in the question. No notification was made to the Board that the trial was to take place and the circumstances, as since ascertained, were not such as would justify the Board in attaching any importance to the alleged results. In reply to the second part of the question, the Food Production Department, after the most careful consideration, is unable to alter its views as to the un-suitability of the Whiting-Bull tractor to the needs of the Department, and does not propose to purchase any machines of this make.
Was this trial arranged so that all the competitors had fair notice, or has the hon. Gentleman any information as to whether it was conducted in the form of a proper trial to which any importance can be attached?
No; we have information that it was not a proper trial at all.
Has not my hon. Friend information that in the case of one tractor no notice was given of the trial which was to take place?
That is so.
Is it not the case that the trial, which took place in secret, was a bogus affair—that only one got notice, and the others had no notice at all?
I think something of the kind happened.
asked the Minister of Munitions whether his attention has been called to a comparative test of three makes of motor tractor arranged on his own farm by the Director of the Agricultural Machinery Department; whether he is aware that the test was undertaken without the knowledge of the representatives of two of the three tractors, but within the knowledge of the third; whether one of the unrepresented tractors was required to haul horse-ploughs, whereas the represented tractor was fitted with a special machine-plough and specially prepared for the test; why these preferences were allowed by the Director of the Agricultural Machinery Department, and the result given an official complexion by publication in association with his name; and whether he is aware that such tests under such conditions are misleading, and calculated to injure the reputation of his Department for authoritative and impartial judgments upon a matter of public importance?
The incident referred to was not an official trial, but a private demonstration held at the request of a particular firm. It was not, in fact, carried out under conditions which render it possible to compare the tractors engaged, and any conclusions from it on the merits of the tractors would be misleading. No official decision or action was contemplated or taken in connection with it, and nothing was published on the subject officially or even with the consent of the Controller of the Department. I may add that the Department does not decide as to the suitability or otherwise of tractors. Such decisions are taken by the Board of Agriculture. The Department merely endeavours to provide tractors of the nature ordered by the Board of Agriculture.
Will the hon. Gentleman take steps to control his own director of agricultural machinery who provided this opportunity at his own farm and allowed the public to think that it was an official trial, with the result that the owner of the rival tractor has taken advantage of it to advertise the tractor all over the country?
The hon. Member is not right in his statement of facts. I understand the director did not allow the public to think as the hon. Member suggests. He allowed three tractors to run on his farm. There is, of course, no objection to that so long as it is not represented as an official test. It was not so represented.
Can the hon. Gentleman tell us whether the director has explained how he came to arrange this misleading test, how it is that publicity has been given to results which under the circumstances he must have known would have no value; and whether it is intended to retain this gentleman in his post as Director of Agricultural Machinery?
With regard to the publicity given to the matter, the Director had no hand in it, and, as I said in my answer, the publication was not done officially or even with his knowledge.
Can the hon. Gentleman say why it is that the head of this branch of the Ministry of Munitions, who is responsible for supplying these tractors to the order of the Government, was permitted to organise what is now admitted to be a bogus trial for the purpose of pushing one make of machine and to discredit the sale of others? Does not this action show him to be quite unfit to retain his post, and is this the same Mr. S. F. Edge whose business morality was scathingly condemned by Mr. Justice Scrutton—
The hon. Member must give notice of that question.
Has the hon. Gentleman's attention been drawn to the advertisement now in the papers stating that the representatives of the Ministry of Munitions and the Irish Board of Agriculture and a long list of officials were present at this trial, and by implication stating that this was the best tractor on the market?
My attention has been called to the advertisement which was unauthorised and is misleading.
Will the hon. Gentleman take steps to see that equal publicity is given to the true account of this misleading affair?
I think my hon. Friend and other hon. Members have taken the steps necessary to give publicity to the matter.
Questions
Greece (War Declaration)
asked the Secretary of State for Foreign Affairs whether he can make a statement about the position in Greece, and especially whether Greece is at war with Germany, Austria, Bulgaria, and Turkey?
Greece is at war with the Powers mentioned in the question.
Communications With Foreign Governments
asked the Secretary of State for Foreign Affairs whether, in view of the fact that, as reported in the Command Paper 7860, of 1915, pages 538, et seq., telegrams vitally affecting the issue of war or peace were exchanged between the King and the Kaiser and the Czar, and that in the King's telegrams he speaks as if he assumed direction of affairs, the practice will become reestablished or re-affirmed whereby the Secretary of State for Foreign Affairs communicates directly with the Governments of foreign countries?
Since no change of practice has taken place, it is plain that there is no former practice to re-establish.
Stockholm Conference
War Cabinet Decision
asked the Secretary of State for Foreign Affairs whether he is aware that the Irish Trade Union Congress has decided to send delegates to the Stockholm International Conference; whether such delegates have applied for passports to go to Stockholm; and, if so, whether he intends to grant passports for this purpose?
No passports have been applied for, nor, if application were made, would they be granted.
Does that mean that the Government has decided that no passports shall in any case be granted to delegates to the Stockholm Conference?
It does not mean that. Whether that be a true statement or not it means exactly what I have said.
Why are the Irish trade unionists differently treated from British trade unionists?
I did not say they were treated differently.
Is it not a difference when you out-and-out give the Irish a refusal and do not say whether you are going to give a refusal to the British delegates or not?
The hon. Member forgets that he put the question down and the question is confined to the Irishmen. I followed the rules of Order and answered the question on the Paper.
asked the Prime Minister whether he will intimate to Parliament that no British subject shall under any circumstances be permitted to meet delegates of any Allied or enemy country to discuss our sovereignty in India, Ireland, Malta, Egypt, and elsewhere, and our spheres of influence in Persia and in other countries; and what obstacle exists to adopting the attitude in this behalf publicly announced by M. Ribot to be that of the French Republic?
asked the Prime Minister whether the War Cabinet has considered their attitude to the Stockholm International Conference; whether the policy to be pursued has been discussed with, or agreed to by the Allies; and what action it is proposed to take?
asked the Prime Minister whether, in view of his recent declaration that we cannot allow sectional organisations to direct the War nor to dictate peace, the Government will refuse to permit anyone from this country to attend the proposed sectional Conference at Stockholm?
The Law Officers have advised the Government that it is not legal for any persons resident in His Majesty's Dominions to engage in a conference with enemy subjects without the Licence of the Crown duly given. The Government have decided that permission to attend the Conference will not be granted, and the same decision has been taken by the Governments of the United States, of France and of Italy, with whom His Majesty's Government have been in communication on the subject.
Will the right hon. Gentleman state the Statute or Regulation under the Defence of the Realm Act or other legal enactment on which the Law Officers of the Crown have based their opinion?
I am about as competent as the hon. Member himself to criticise the law or the Law Officers, but I understand that it is done under the common law of the land.
asked the Prime Minister whether, in view of his recent declaration that the Government would consider whether it is desirable that a member of the Government should retain a dual position, he can now inform the House of the decision of the Government on the subject?
I did not expect that my Noble Friend would put this question on the Paper in view of what has taken place since.
( later ): I beg to ask the Leader of the House—who I presume for the moment is the Prime Minister—a question of which I have given him private notice. Before doing so, I should like to explain that when I gave notice of it the resignation of the right hon. Gentleman the Member for Barnard Castle (Mr. A. Henderson) from the War Cabinet had not been announced, nor had the letter to him from the Prime Minister been published, and as that letter of the Prime Minister to the right hon. Gentleman to some extent answers my question, I thought it right to explain before putting the question, which is, "To ask the Leader of the House whether the participation by the right hon. Gentleman the Member for Barnard Castle in the Conference of the Labour party on Friday last and the advice which he then gave to the delegates assembled had previously received the sanction and approval of his colleagues of the War Cabinet; whether the speech he delivered on that occasion was made by him as a member of the War Cabinet or as Secretary to the Labour party; and whether the very full and explicit statement of the terms of peace which the Labour party would be willing to accept, and which it has announced will be laid before the Stockholm Conference, has been submitted to and approved by the War Cabinet; and whether they are prepared to allow the functions of the Government and Parliament as representing the whole of this nation in this vitally important matter to be usurped by any unauthorised body which, however important, can only claim to represent a section of the British people?
Any part of my hon. Friend's question which was not answered by the letter of the Prime Minister was answered by me to-day in reply to a question when I stated that the Government would not give sanction for the attendance of British subjects at any Conference with the enemy.
I understand my right hon. Friend has some statement to make about business?
It will best meet the convenience of the House, I think, if the first four Orders on the Paper are postponed. This will enable the Adjournment of the House to be moved from this bench, and my right hon. Friend the Member for Barnard Castle (Mr. Henderson) will, I understand, make his statement on the Motion for Adjournment.
Royal Messages to Allied Nations
asked the Secretary of State for Foreign Affairs why, in the list of Allied nations to whom the King addressed messages of friendship and of encouragement on the occasion of entering upon the fourth year of war, Russia was omitted; whether it is still possible to rectify the situation caused by this omission; and, if so, what steps it is proposed to take?
A message from His Majesty the King to the Russian Prime Minister and the Russian people, which has been communicated to M. Kerensky by His Majesty's Ambassador at Petrograd, appeared in the Press of the 8th instant.
Was the communication made at the same time that the communication was made to the other Powers?
That I am not quite sure about.
Conquered Territory
asked the Secretary of State for Foreign Affairs whether he can give an assurance that this country will not be committed without the consent of Parliament to liability to support any present Ally in future years by armed force in the retention of territory that may be secured through conquest in the crrrnet War?
It would be an obvious waste of time to attempt to discuss questions of this nature at the present moment.
Munitions
Territorial Officers (Ministry)
asked the Minister of Munitions whether a Memorandum of the Military Establishment Branch of the Ministry of Munitions, dated 16th May, 1917, states in effect that officers of the Territorial Force attached to the Ministry are not eligible for promotion whereas officers of the Regular or New Army are eligible; and what is the reason for the distinction?
The Memorandum in question was based upon Instructions issued by the Army Council and communicated to the Ministry for the information of any officers of the Territorial Force who happened to be serving under the Ministry. So far as concerns promotions, it deals only with Territorial officers, and no inference can be drawn from it with regard to other officers.
Clay Cross Iron Company
asked the Minister of Munitions if he is aware that the Clay Cross Iron Company, which is a controlled firm, are refusing to pay overtime rates in accordance with trade union rules and conditions; and will he take action in the matter?
Inquiries are being made, and I will inform my hon. Friend of the result as soon as possible.
Messrs Andrew and Company, Limited
asked the Minister of Munitions if he is aware that Messrs. Andrew and Company, Limited, Toledo Steel Works, Sheffield, have up to the present time refused to pay the recent 3s. award granted to engineering and iron foundry firms; if he is aware that the firm in question have stated that they do not intend paying unless instructed by the Government; and will he take action in the matter?
I understand that the firm in question are not a firm of engineers, nor have they a foundry; they are not therefore directly affected by the award of 14th July. They have, however, asked for, and received, the Minister's sanction for applying the award to their men, so far as they are not men whose wages are regulated by the sliding scale.
Sheffield Gas Company
asked the Minister of Munitions if he is aware that the Sheffield Gas Company, which is partially a controlled firm, are only paying the women workers 25s. 6d. per week for fifty-three hours; whether he intends insisting upon the company in question paying the woman workers in accordance with the circulars already sent out in the recent award that has been given to women for an extra 2s. 6d. per week on the present rates of pay; and will he take any action in the matter?
No gas company in Sheffield is controlled. If the question refers to the Sheffield United Gas Light Company, this is a certified undertaking. Orders applying to certified undertakings the Regulations as to women's wages which are in force in controlled establishments are now in preparation. They will include the Order prescribing the advance of 2s. 6d. per week, and will operate from 1st September.
Allotment Holders (Coventry)
asked the Minister of Munitions whether his attention has been called to the fact that 130 war-time allotment holders at Deakin's Farm, Coventry Road, Birmingham, have recently received seven days' notice to quit at the instigation of the Ministry of Munitions; is he aware that this action will cause the crops which these allotments would have produced, and the labour involved, to be wasted, and that it will have the effect of lessening the food supplies of the locality which these men were encouraged to assist; is he also aware that the action of his Department was entirely unnecessary, as there is an equally suitable plot of land available for its purposes which might be acquired without any detriment to the food supply; and if will say what action he proposes to take in the matter?
The facts, generally, are as stated in the first part of the question. The loss of the crops is much regretted. The land in question was selected after careful consideration, and no other vacant land was equally suitable. The new works in question are urgently required to meet a highly important demand, and any alteration of site would not only cause delay, but necessitate modification of the scheme, which would cause loss of efficiency.
Has the alternative site been inspected and considered?
Yes, Sir.
Land Taken Over (Compensation)
asked the Minister of Munitions what area of land was taken over or arranged to be taken over by the Ministry of Munitions for the purpose of munition works and how much of this land is it now intended to retain; has compensation been paid to any of the tenants and owners dispossessed; and what is the total sum spent or contracted to be spent on the area now decided to be relinquished, including all contracts for the erection and pulling down of buildings, roads, water supply, and drainage, and the amount agreed for compensation for broken contracts and owners' and tenants' claims?
I understand that the hon. Member refers to the scheme for the construction of an explosives factory in the West of England which has been abandoned. The area of land taken over under the Defence of the Realm Regulations, which is being relinquished, is 1,656 acres. It is not at present proposed to retain permanently any of the land taken over, and reinstatement is being proceeded with as speedily as possible. Arrangements are now being made for the return of the displaced tenants to their holdings, and the question of compensation is being dealt with. Compensation has already been paid to certain tenants. The total sum spent or contracted to be spent is estimated at about three million pounds. The payments already made, or about to be made, in respect to work done and material supplied amount approximately to £1,150,000, against which there will be some recovery for material and plant.
I understand most of this money is wasted. Can my hon. Friend state what the total loss of money would be?
No, I cannot state that until the account is made up.
Questions
Central Control Board (Liquor Traffic)
asked why it has not been possible to publish yet the accounts of the Central Control Board (Liquor Traffic) relating to the Carlisle area; when the Board first started operations in that area; and when it is intended to publish the account?
The Board began taking over houses at Longtown in January, 1916. The taking over of the houses in the city of Carlisle itself was spread over the period from July to November, 1916, and consequently no accounts which could be published at present could indicate the annual income of the undertaking. In these circumstances, I see no reasonable possibility of compiling anything in the nature of a statement of account at present, but the Control Board are desirous of publishing such a statement as soon as practicable.
asked whether the Central Control Board (Liquor Traffic) are prepared to publish accounts showing the profits earned in the case of each of the licensed houses owned by them, and showing the specific purposes to which such profits have been applied, including grants of moneys to local institutions, etc., in each local control district?
I would refer the hon. Member to the answer which I gave him on the 8th instant, and to the answer given to the hon. Member for the Rush cliffe Division on the 3rd May.
Why is it not intended to give the usual full information as to how these public moneys are being applied, and why the accounts are being published in such a summarised form that no one can form a true impression of how the money is applied?
As to the form in which the accounts are published, I am assured by the Board of Control that all the information has been given which is usual in connection with similar undertakings.
Is there any objection to informing the House what profits are made in the individual houses owned by the Board, and how these profits are applied?
The view taken by the Control Board is that it is not usual to give returns in regard to individual houses, but only in regard to the undertaking as a whole.
Are not we as shareholders in this business entitled to full information?
I am most anxious that information should be given, but the information should be full.
Alcohol Manufacture (House Chestnuts)
asked the Minister of Munitions whether it is proposed to utilise horse chestnuts for the purpose of manufacturing alcohol for munitions purposes; and whether arrangements will be made for the gathering of chestnuts by school children and other voluntary workers during the autumn for that purpose?
It is proposed to use horse chestnuts for certain purposes, and arrangements are being made for collecting them.
Controlled Firms
asked the Parliamentary Secretary to the Ministry of Munitions if he is aware that the Stavely Iron Works Company and the Clay Cross Iron Works Company, which are controlled firms, have not up to the present time decided to pay the recent award of 3s. granted to engineering and foundry works; if he is aware that several Chesterfield engineering works are awaiting the Ministry of Munitions' sanction to pay the award; and will he take action in the matter?
Neither the Stavely Iron Works Company nor the Clay Cross Iron Works Company are firms to which the award referred to applies. The Stavely Iron Works Company, however, received the sanction of the Minister on the 4th August to pay in accordance with the terms of the award and the Clay Cross Iron Works Company paid the advance on the 10th August for the first week in August. With regard to the latter part of the question, I am not aware of any engineering establishment in Sheffield which is awaiting the sanction of the Minister to pay in accordance with the award. The terms of the award have been communicated to all the firms concerned, and sanction to pay has been given to all who have applied for it. If my hon. Friend has information as to any firm which is still awaiting sanction and will let me know, I will have inquiries made.
Civilian Prisoners in Germany
asked the Secretary of State for Foreign Affairs whether, in view of the fact that the recent Hague Conference concerning prisoners of war will only release 400 civilian prisoners from the Ruhleben Camp to Holland, the Government will approach other neutral countries with a view to early measures being adopted for the transfer to those countries of the British civilian prisoners still remaining in Germany, many of whom have been interned there for nearly three years?
His Majesty's Government are in full sympathy with the objects which my Noble Friend has in view, but he will appreciate the fact that by the recent Hague agreement we have assumed considerable obligations. Until the repatriation, or transfer to a neutral country, of prisoners of war under the present provisions of the agreement is advancing satisfactorily, it is thought undesirable to increase our present undertakings. In this connection I would mention that, although The Hague agreement has been ratified by both Governments, the German Government have not yet assented to the shipping arrangements for carrying it into effect, and have not yet replied to our suggestion, made so far back as 11th July, that the port of Hull should be used for this purpose.
Prisoners of War
asked the hon. Member for Sheffield (Central Division) whether the Government will now endeavour to arrange a conference with Turkey similar to that recently held at The Hague with Germany at which an agreement can be concluded for the better treatment and the exchange of prisoners of war?
This question is engaging the anxious attention of His Majesty's Government. There are, unfortunately, greater difficulties involved than existed in the case of Germany.
Can we assume that the Government view the suggestion sympathetically and that they will do their utmost to carry it out?
I think I may say confidently that they are doing their best to carry it out.
asked whether any steps are being taken, or can be taken, to effect an agreement with Austria-Hungary on the subject of prisoners of war?
If the Austro-Hungarian Government make proposals on this subject, I have no doubt that His Majesty's Government will take them into consideration. I may remind my hon. and gallant Friend that the number of Austro-Hungarian prisoners in British hands is many times greater than that of British prisoners in Austria-Hungary.
asked the hon. Member for Sheffield (Central Division) what steps have been taken to see that officers of the Royal Naval Reserve and Royal Naval Volunteer Reserve are included in the arrangements made for the exchange of officer prisoners who have been two years or more in captivity; and whether he will take special steps to see that claims to inclusion of these officers will not be overlooked?
I would refer the hon. Member to chapter 3, paragraph 11, of The Hague Agreement, which provides for the internment in a neutral country of officers who have been in captivity for not less than eighteen months, subject to accommodation being found for them. The Agreement mentions no particular class of officer, and it obviously includes those of the naval and military forces of the Crown, and the Admiralty are including the names of the officers of these Services in their list. There is no reason to think that this construction of the Agreement will not be accepted by the German Government.
asked the hon. Member for Sheffield (Central Division) whether any Report has been received of an inspection of the Schwarmstedt Prisoners of War Camp in Germany by the Netherlands Government; and, if so, whether he will communicate it to the House?
An official of the Netherlands Legation has visited Schwarmstedt Camp, and his Report has been received. The conditions at the camp are bad in many respects. Liberal promises of improvement have, however, been made by the German authorities, and we have requested the Netherlands Minister to have the camp reinspected shortly. For reasons which I have explained to my hon. Friend, it is thought better to treat these official Reports as confidential.
Can I or any other hon. Member see confidentially the Report referred to?
I must consult my Noble Friend.
Trade Relations (British Empire and Belgium)
asked the Minister of Reconstruction whether the terms of reference for the Committee appointed to promote trade between Belgium and the British Empire are intended to include preferential tariff arrangements with regard to trade between the British Empire and Belgium, and include the consideration of the encouragement of Belgian shipping by coaling advantages, port facilities, and other means within the British Empire; whether he can say why no representative of the Colonial Office is included among the members of the Committee; and what steps are being taken to ascertain the views on the subject of the representatives of the Dominions governments?
The terms are very wide, and the topics referred to by my hon. Friend are certainly not excluded. The Committee is purely advisory and departmental. It has power to add to its numbers and, if it should appear to be advisable to do so, representatives of the Dominions and the Colonial Office will be added to it.
Industrial Unrest
asked the President of the Local Government Board if his attention has been called to the Report of the Commissioners of Industrial Unrest on the North-East Coast which points out that the earnings of miners, owing to the absence of transport facilities, are such as fall short of a living wage, and recommend that such should be assisted by Grants; and, if so, will immediate steps be taken to give effect to such recommendation?
I have seen the Report referred to. As the Commissioners point out, the remunerative employment of the workers on some form of national work would seem to be the most appropriate remedy. Grants have, however, been made for the assistance of miners in the North-East Coast district in cases of distress.
Are the grants to be made so long as the distress continues?
Each case has to be considered, but the same policy will continue to be pursued. We hope that before long it may be possible to employ these men in some remunerative employment.
Military Service
Aldershot Local Tribunal
asked the President of the Local Government Board whether he has received any communication from the Aldershot local tribunal regarding the action of the chief engineer at the central power station, Aldershot, in securing protection from military service for a young contractor and his single employé previously engaged on contract work at the camp; whether he is aware that these two men were added to the staff at the power station after the tribunal had considered their cases and had either rejected their appeals or intimated that there would be no further renewal of their exemption; whether he is also aware that, with the addition of these two men to the staff of the power station, two competent electricians already on the staff, both married men, had their protection from military service withdrawn; and whether he will make inquiries into the matter?
I have been asked by my right hon. Friend to answer this question. A complaint regarding the cases referred to was submitted to the War Office some time since by the Aldershot Tribunal, and inquiries were made. I am informed that the men who were added to the staff at the Aldershot Central Power Station were employed on quite different work requiring a different kind of skill from the men who were released for military service. The former are employed upon new work, consisting of the installation of lighting and power services in buildings newly erected. The latter were em- ployed on the maintenance of existing installations requiring a less high degree of skill and less physical strength. The release of the latter was not in consequence of the employment of the former, which, as stated, was not for work of the same nature.
Editors and Leader Writers
asked the President of the Local Government Board whether he can state how many editors and leader writers have been granted exemption from military service without their individual claims being dealt with by tribunals?
I would refer the hon. Member to the answer given to him on the 9th instant and to a written answer given to my hon. Friend the Member for Pembroke on the 10th; instant.
I would like to get some reply, because the last time the hon. Gentleman stated that he was unable to give me a reply, and I presumed that as the War Office could not give me a reply I should address the question to the Local Government Board.
The War Office can give no exemptions. Each case is decided by the tribunals.
Then why can I not put my question to the President of the Local Government Board?
May I point out that my hon. Friend has put his question in reference to cases which have not been dealt with by the tribunals. If they are not dealt with by the tribunals they do not come under the Local Government Board.
Then will the hon. Gentleman inquire how many editors and leader writers have secured exemption? There might be enough to win the War.
I am sure that none have been exempted by the War Office.
In the early days of the Military Service Act was there not an arrangement made between Lord Derby and the Newspaper Proprietors' Association for exemptions?
I was not aware of it.
How many of these gentlemen have been granted leave to carry on their business, like Dr. Seton Watson?
The hon. Member must give notice of that.
Secret Instructions (Sir a. Keogh)
asked the Prime Minister whether he has observed in the Report of the Select Committee on the Military Service (Review of Exceptions) Act that, in spite of the Army Council Instruction issued by him when he was Secretary of State for War, secret instructions were issued by officials under his control which destroyed the value of his own instructions; and whether he intends to take any disciplinary action?
My Noble Friend the Secretary of State for War declines to accept the description given of this incident in the terms of my hon. Friend's question, and is not prepared to regard it as calling for any disciplinary action.
As a matter of fact, the letter referred to was issued by Sir Alfred Keogh under proper superior authority. It was intended to deal with what, all those responsible agreed, was a real danger. Whether as the result of the issue of the Army Council Instruction of the 7th September or not, wholesale rejections, especially in certain parts of the country, were taking place of men who were useful for Army service though admittedly not up to the standard required in combatant units. It was, therefore, necessary to point out to the officials responsible for such rejections that Army service comprises a great variety of occupations answering roughly to those to be found in civil life and that men capable of performing such service in the Army must not be rejected. This was regarded as a perfectly legitimate corrective to administer to those by whom the mistake was being made, and it was quite properly addressed to them direct by their immediate official superior. The recipients of the letter had already had the Council Instruction, and obviously the two were to be read together. The letter was marked "confidential," and not "secret," and if my hon. Friend will read the rules in paragraphs 1857–1864 of the King's Regulations dealing with the military distinction between these terms he will realise that no official would have marked as "confidential" a letter intended by him to secure, what I gather my hon. Friend alleges to be, the sinister purpose of securing by a subterfuge a modification of the declared policy of superior authority.
Does the hon. Gentleman notice that this question does not rest with his Noble Friend the Secretary of State for War, but with the Prime Minister? The question I want answered is why the present Prime Minister when he was Secretary of State for War issued to the public an Army Council Instruction and subsequently allowed that Instruction to be gone behind by officials of the War Office, and whether he proposes to take any disciplinary action? I do not know whether the Leader of the House can reply to my question, which is addressed to him obviously as representing the Prime Minister, and has nothing to do with my Noble Friend?
The answer which has been given does reply to the question. It is purely a question of War Office administration, and should be answered by the War Office.
How can we attribute rejections to an Army Council Instruction of 7th September before that Instruction could have reached the officials affected?
Are we to understand that when documents are issued from the War Office confidentially that it does not mean that these documents are intended only for the use of certain individuals and are not intended to be used for the public, and, if so, what is the position when you find that, in a confidential document of that kind, the subject-matter is a public matter?
I have already pointed out in my answer that these documents have got to be read together. The first is an Army Council Instruction of 7th September. The other is a confidential document issued by superior authority acting under proper instructions.
Why cannot the documents be issued in the same way if they are to be read together? Is it not the case that the public document was issued in consequence of a pledge given in this House, and that the other was issued to evade that pledge?
That is not the fact I think that I have covered the whole ground completely in my answer.
Conscientious Objectors
asked the Secretary of State for the Home Department whether Isaac Hall, a negro born in Jamaica, is serving a sentence of imprisonment as a conscientious objector; and whether he will inquire into the legality of his arrest?
This man appeared before the Central Tribunal and was offered employment under the Committee on the Employment of Conscientious Objectors, but refused to accept it. He, therefore, remained in prison until the expiration of his sentence in March last; he was returned to his unit and was again convicted by court-martial, and is now in Pentonville Prison. As regards the second part of the question, I would refer my hon. Friend to the War Office.
asked the Home Secretary whether Charles Allen, a conscientious objector serving a sentence in Wormwood Scrubs, has applied to undertake work under the Home Office Committee; whether his application has been refused; and, if so, for what reason?
This man has been before the Central Tribunal, who reported that he could not be said to have any real conscientious objection to military service. The Committee on the Employment of Conscientious Objectors are, therefore, unable to offer him employment.
Shipping Constbuction
asked the Prime Minister whether he is aware that Mr. Edward Hurley, chairman of the United States Shipping Board, is about to make a tour of the United States shipping yards with the object of speeding up the work of new construction; and whether Mr. Hurley has made several representations to the head of the British Mission as to the difficulty in addressing the workers unless he is furnished with full information as to the destruction and replacement of shipping?
The British representatives in Washington have been placed in complete possession of the facts of the situation.
Nationalist Members (Visit to America)
asked the Prime Minister whether the hon. Members for the Scotland Division and North Galway have, with his knowledge and approval, gone to America to collect party funds; whether he consulted with either of these hon. Members, either personally or otherwise, before they undertook this mission; and whether it will be open to politicians of parties other than the Irish Nationalists to proceed to foreign countries on similar political missions?
I have no information except what I have seen in the Press.
The hon. Gentleman has not answered the last part of the question. If these gentlemen are allowed to go on political missions to other countries why cannot we?
Personally I do not think that I should offer any objection.
Deceased Civil Servants
Allowance to Representatives
asked the Prime Minister if he is aware of the treatment of Government employés who join the Army; if he is aware that, according to the Civil Service Superannuation Act, the representatives of men with five years' service who die are entitled to receive a year's salary computed at the rate which he was drawing at the time of his demise; if he will see that, in cases where young Civil servants who joined have been killed in action before they had completed five years' service, their representatives be paid the year's salary; if he will make inquiries into the case of Private John A. Doyle, No. 26,612, 10th Royal Dublin Fusiliers, who was an assistant clerk, abstractor class, in the Board of Trade, London, and joined the Army voluntarily and was killed in action in October last; and if he is aware that his widowed mother spent all she had on this boy's education and is now refused pension, gratuity, or compensation from the War Pensions Committee and is also refused the benefits of the Civil Service Superannuation Act which she would have received had her son died at home instead of fighting for King and country?
The period of service required to qualify for a death gratuity under Section 2 (1) of the Superannuation Act, 1909, is five years, and I cannot undertake to introduce legislation to amend this provision. I may add that, where the statutory conditions is fulfilled the death gratuity is paid under the Civil Superannuation Acts, in addition to any sum which may be payable from Army funds.
Questions
Naval and Military Operations
asked the Prime Minister whether any Minister outside the War Cabinet has the right to put forward any suggestions to the War Cabinet in regard to naval or military operations?
There can be no hard and fast rule in such a matter, but any Minister would of course be entitled to put his views before the Head of the Government, and it would be for him to decide whether they should be considered by the Cabinet.
Is the right hon. Gentleman aware that the Minister of Munitions has lately put forward a suggestion as to naval or military operations?
I do not think that is a sort of question that ought to be put, but perhaps it will be more convenient if I state that no such suggestion has been made.
Alsace-Lorraine
asked the Prime Minister whether the agreement entered into between the French Government and the Government of the ex-Czar of Russia by which Germany was to be deprived of territory on the left of the Rhine as well as Alsace-Lorraine had for one of its objects the destruction of German industries by depriving them of their supplies of coal and iron in accordance with the policy supported by the Paris Conference; and can he give any assurance that the War will not be prolonged for such aims, the achievement of which would only benefit the promoters of capitalistic enterprises?
As regards the first part of the question, I would refer the hon. Gentleman to the reply returned to the hon. Member for Northampton on the 1st instant, from which he will see that I have no information on the subject. The second part does not, therefore, arise.
Has the right hon. Gentleman not had his attention called to the statements made by the French Prime Minister in regard to these matters? It is curious that the Foriengn Office should have no information on a matter which is of public interest.
The hon. Member is making observations.
Proclamation to Dominions
asked the Prime Minister whether he can state the grounds on which General Smuts was chosen to address a Proclamation to the Dominions on the occasion of entering upon the fourth year of the War; whether General Smuts on that occasion represented the Government of this country; and, if so, whether he will represent the Government on all important occasions when it is desired to communicate with the Dominions jointly?
I am informed that the message referred to was a purely personal one. The last two parts of the question do not, therefore, arise.
Was it not sent by General Smuts as representative of the Government?
No, Sir; I have no doubt that it accurately represented the views of the Government, but it was sent by General Smuts as representing General Smuts.
May I ask who paid for the telegram, in order to establish who sent it?
I cannot say.
Is it not the case that General Smuts is a member of the War Cabinet, and is it desirable that individual members of the War Cabinet should be playing off their own bats so often?
The suggestion of the hon. Member is that no member of the War Cabinet is either to write a letter or make a statement.
asked the Prime Minister whether, in regard to his Proclamation to the Dominions, General Smuts consulted the Cabinet as to replacing the term Empire by that of Imperial Commonwealth; if so, whether the term Imperial Commonwealth will be used instead of Empire in all public documents; and if the matter be not definitely decided, whether the word Imperial will be omitted as having no better warrant than that of Empire?
The answer is in the negative.
Will the Dominions be consulted as to whether they consider themselves as living under an Imperial regime?
I have already told the hon. Member more than once that the term "Empire" has been used for several hundred years without exception being taken to it.
Are we not living in new times, and has not the time arrived to abolish these fetishes?
Switzerland (Secret Conference)
asked the Prime Minister if the Government have any official knowledge to the effect that a secret conference has recently taken place in Switzerland at which French, British, and German financiers were present, the purpose of which was to aim at an immediate peace such as would arrest the growth of International Socialism and the rising tide of revolution throughout Europe, and that this object was to be attained by a direct arrangement between the belligerents in which national claims would be entirely subordinated to considerations of world finance?
I have no knowledge of any such conference.
Is not the right hon. Gentleman aware that the statement was made in a semi-official paper called the "New Europe," and that it states on unimpeachable authority that the conference mentioned did take place?
I do not know on what information this semi-official or official organ made the statement on the matter. Certainly we have had no information of the kind.
Shipping (Nationalisation)
asked the Prime Minister (1) whether he has at any time during the past twelve months given any pledge or promise or expressed himself in favour of the nationalisation of shipping either during or after the War; and whether he is aware of any other Cabinet Minister or Ministers having done so; if so, will he give his or their names; (2) whether the Government have appointed any committee or similar body to consider the question of the nationalisation of British shipping either now or after the War; if so, whether the committee have arrived at any decision; and will he state what that decision is?
The answer to both questions is in the negative.
Land for Returned Soldiers and Sailors
asked the Prime Minister whether, in view of the fact that the Dominions have already made generous provisions for supplying land and capital for their returning sailors and soldiers, he can now say why the Government have not made similar provisions for our own sailors and soldiers who wish to become owners and cultivators of land in this country; and whether he will at once consult with the Dominion Governments as to an Imperial scheme for settling our sailors and soldiers on the land in this country and in the Empire after the War?
I would refer my hon. and gallant Friend to the Report of the Empire Settlement Committee (Cd. 8672), which has just been published, and will be communicated to the Dominion Governments. This Report is receiving the consideration of His Majesty's Government.
If the Dominions can provide land, why cannot the Government provide land in this country for returning soldiers and sailors? If you can find land in Ireland, why not in England and Scotland?
I have already stated in the reply to the question that the subject is being carefully considered by the Government.
Paris Economic Conference
asked the Prime Minister whether he is aware that, or account of the shelving for so long of the Paris Resolutions, and of the failure of the Government to follow the lead of France and Italy by denouncing existing treaties of commerce, our manufacturers are prevented from increasing and developing their businesses from fear of having their products swamped by surplus goods from abroad; and whether he can give the House any approximate date when the Government will be able to announce whether or not our industries and working people are to be protected from unfair competition from abroad?
I am not aware that there is any foundation for the suggestion contained in the first part of my hon. and gallant Friend's question. As regards the last part of the question, the subject is under the consideration of the Committee on Commercial and Industrial Policy, and, pending the Report of the Committee, I am not prepared to make any statement on the subject.
Can the right hon. Gentleman assure us that British traders will be protected from unfair competition? I have received a number of letters from manufacturers and traders who want the point settled, so that they may get on with their business.
This subject has often been debated. I can add nothing to the answer I have given, which shows that the matter is now being considered.
Does the Government really seriously mean business and to carry out the Resolutions of the Paris Economic Conference?
Wexford Meat Supply Company
asked the Vice-President of the Department of Agriculture (Ireland) whether he has received a communication from the Wexford Meat Supply Company with reference to the negotiation going on between the Department of Agriculture and the Irish cattle dealers to supply the Government with 100,000 Irish cattle after August; whether he is aware that the Wexford Meat Supply Company is in a position to deal with 400 cattle per week and that it is the desire of the company that consideration be given to their business in connection with the proposed scheme; whether the Government will either employ the company to deal with a portion of their requirements or make some arrangement whereby the company can have the ordinary number of cattle for slaughter which would enable them to carry on their business; if he is aware that this dead-meat trade has been built up by Wexford farmers at great expense, sacrifice, and inconvenience; and if he can give any assurance that it will not be injured by the proposed Government scheme?
The Department of Agriculture have received the communication referred to. They have no reason to doubt the statement that the Wexford Meat Supply Company is in a position to deal with 400 cattle per week, but they are not concerned in the matter beyond advising the Committee in charge of the scheme as regards the purchase of the proportion of cattle to be procured in Ireland. I am informed that the scheme will not interfere with the ordinary purchase and slaughter of cattle as at present carried out by the Wexford Meat Supply Company, or any other concern dealing with dead meat in Ireland. The cattle will be purchased for the Army, and will be in addition to the normal number slaughtered for the civilian population.
Indian Civil Service
asked the President of the Board of Education why the history of India has been omitted from the recently published lists of subjects knowledge of which is required in the Civil Service examination; and whether such examination is, as heretofore, to be that for admission to the Indian as well as to the Home Civil Service?
My hon. Friend would appear to be referring to the Report of the Committee appointed by the Treasury to consider the Scheme of Examination for Clerkships, Class I., of the Home Civil Service (Cd. 8657). The Report was only made recently and has not yet been fully considered. As regards the latter part of the question, I would refer my hon. Friend to paragraph 34 of the Report, from which he will see that the Committee contemplated the necessity of adjustments if their scheme were adopted for the purpose of the examination for the Indian Civil Service.
Representation of the People Bill
asked the Secretary of State for the Home Department whether the full scheme of redistribution will be issued by the Boundary Commissioners in the form of a Report; and, if so, when the Report will be issued?
The answer to the first part of the question is in the affirmative. It is hoped that the Report of the Commissioners will be issued in time for the opening of Parliament after the Recess.
Transport Facilities (Pit Work)
asked the Coal Controller if his attention has been called to a paragraph in the Report of the Commissioners on Industrial Unrest on the North-East Coast calling attention to the fact that inadequate control of transport facilities is bearing hardly in cases of individual pits, with the result that their earnings are so materially reduced that they cannot earn a living wage, also urging that something must be done to meet this hardship; and, if so, what remedies are proposed?
( on behalf of Coal Controller ): The Controller of Coal Mines has for some time been devoting attention to measures of relief in cases in which steps which have been taken with a view to securing economy in transport have prejudicially affected individual collieries. The root of the problem is lack of shipment trade due to shortage of tonnage, and the Departments concerned are looking into the possibility of allocating more of this trade to the districts to which the Report refers. Remedies on the lines suggested by the Commissioners had already been adopted to some extent, and the question of further similar action is receiving consideration.
Naval and Militaey Pensions and Grants
asked the Pensions Minister whether, in view of the fact that an officer who is granted a wound pension, but retained on full pay on the active list, does not have his full pay curtailed on account of being in receipt of the wound pension, he will consider the possibility of treating the disabled officer in a similar manner by canceling the provision in the new Warrant, contained in Sub-section 4 of Clause 1, which takes from the disabled officer in receipt of a wound pension the additional allowance to his retired pay granted to him in column 9 of the first Schedule of the new Warrant?
The new Warrant does not take from an officer in receipt of a wounds pension any right which he already has. The provision referred to by the hon. and gallant Member is continued from former Regulations, and seeing that both retired pay and wounds pensions are to a great extent intended for the same purpose, I do not consider that it would be justifiable to give to a Regular officer in receipt of a wounds pension the extra advantage to be derived from the application of the ninth column of the Schedule. This was introduced with a view to more generous treatment of the Regular officer disabled by disease. Even with this provision, wounded officers as a whole receive more than officers disabled by sickness, even though the degree of their disablement may be the same.
African Colonies (Statistics)
asked the Secretary of State for the Colonies if he will state the value of the exports from Nigeria, the Gold Coast, and British East Africa, respectively, for each of the five years up to and including 1913, and distinguishing the values of exports, where they occur, of cocoa, cotton, palm kernels, and palm oil from those of other articles?
I am sure my hon. Friend will realise that it would tax too greatly the patience of the House to recite the tables of figures for which I am asked, but they will be found in the statistical abstract relating to the Colonies for 1916 presented to Parliament as Cd. 8239 to which I would refer my hon. Friend.
Prohibited Meeting, Glasgow
( by Private Notice )asked the Secretary for Scotland if a private conference arranged by the Workers' and Soldiers' Council to be held in Glasgow on Saturday, 11th August, was proclaimed by the Government; and, if so, for what reason?
The Lord Provost and magistrates of Glasgow represented to me that the holding of the meeting referred to gave reason for apprehension of grave disorder, and that undue demands would thus be made upon a police force depleted by the War. In these circumstances it appeared to me that a situation contemplated by 9 A of the Defence of the Realm Regulations had arisen. Accordingly, after due consultation with my colleagues, I considered it my duty to grant authority to the Lord Provost and the Chief Constable of Glasgow to prohibit the holding of the meeting. A prohibition order was, I understand, issued by them accordingly.
Is the right hon. Gentleman aware that in spite of that prohibition 10,000 people assembled outside the Hall where the Conference was proposed to be held and that there was not the slightest opposition and that the resolution submitted to the meeting was passed unanimously by them?
My information as to the number of persons attending the meeting is very different from that of the hon. Member. I am informed that the prohibition of the main meeting was, of course, well known in Glasgow, and apart from that the meeting outside might not have been so peaceable as it was.
Enemy Air Raids
I beg to ask the Leader of the House whether he can give the House any further information regarding yesterday's raid, and how many of the enemy's machines, if any, were brought down?
I have no notice of the question, but I understand one Gotha machine was brought down over the sea and a German seaplane was also brought down.
New Member Sworn
Sir William Watson Cheyne, Baronet, K.C.M.G., LL.D., F.R.C.S., F.R.S., for the Universities of Edinburgh and Saint Andrews.
Orders of the Day
War Cabinet
Resignation of Mr. Henderson
Motion made, and Question proposed, "That this House do now adjourn."—[ Lord E. Talbot. ]
4.0 P.M.
In rising to make a personal statement, I must ask the indulgence of the House for an opportunity to speak at much greater length than, I think, is usual under such circumstances. This is due to the fact that my relations with the War Cabinet and my actions at the Labour Party Conference on Friday have been made the subject of what I can only describe as an unprecedented and dangerous Press campaign. I venture to say it would be difficult, if not almost impossible, to find a precedent in all the Ministerial resignations for the conduct pursued by the present Prime Minister and his colleagues in regard to my case during the present week-end. May I say in passing that the Press campaign to which I call attention was organised with such perfection that the first intimation I received that my resignation had been accepted came not from the Prime Minister, but from the columns of the "Pall Mall Gazette"; and I should emphasise the fact that never during the whole of the time since I sent my resignation to the Prime Minister had I left the office of the War Cabinet. Having made that preliminary statement, may I say a word or two in regard to the actual resignation? After the decision of the Labour Conference on Friday I had an interview with the Prime Minister. I am not going to explain, or go into detail with regard to that interview, except to say this: that the Prime Minister made it clear that my retention of the position of Secretary of the Labour party was no longer compatible with my remaining a member of the War Cabinet. When it came to a choice under such circumstances, there was only one course that I could choose. As the House knows, I resigned, and in resigning I informed the Prime Minister that recent experiences had impressed me with the embarrasing complications arising from the duality of office. That was a fair and frank statement based upon recent experience. As it will be remembered, this question of duality of office was very fully discussed in the recent Debate. I think the difficulties of the position were fully recognised, as were also its advantages and disadvantages. Therefore, I have only one more observation to make in regard to the form that my resignation took. If any impartial observer will look into the wording of the resignation I think he will find it was so worded that it could have been accepted without any injury to the national interests; and I only wish that its nature, its character, and its spirit had been emulated by the right hon. Gentleman the Prime Minister. May I now deal with the circumstances of the resignation? As everybody knows, it has arisen out of the question of the Stockholm Conference. If the complete story of Stockholm is to be told I am doubtful—and I want the House to appreciate the point—if the telling of that complete story would at this moment assist the national interests. I shall, therefore, be content to join the interesting list of ex-Ministers who are awaiting an opportunity to state the full facts of their case when they can do so without prejudice to the interests of the nation. But the attacks in the Press—and they have been plentiful—the suggestions of bad faith, or—shall I say—of conduct much more reprehensible, compel me to deal with certain recent events, whatever be the consequences. It appears to me that it would be to the advantage of the House and all concerned if I made a plain, unvarnished statement to the House and kept it as far as possible in chronological order. On July 24th I reached London, having completed the mission on which I had been sent on behalf of the Government. On 25th July a meeting of the Labour Party Executive was held, at which I was present in my capacity as secretary. The question of the proposed Stockholm Conference came up for consideration, and, as the result of my experiences in Russia, I felt compelled to give advice to the Executive. I advised them first of all to put the whole question before a special National Labour Conference. I went further. I recommended that the invitation to Stockholm be accepted under conditions that I had previously laid down. It was also decided at that meeting that the invitation of the French Socialists that a delegation should be sent to Paris should be accepted. The composition of the delegation and other circumstances connected with it were the subject of a Debate in this House on August 1st. As the House knows also, not only had we a long Debate on the question, but numerous questions have been submitted to the Prime Minister, and, I believe, generally answered on his behalf by the Leader of the House.
On my return from Russia, the question of the Stockholm Conference and of my proposed visit to France—I hope the House will take notice of the point—were the subject of consideration at a special meeting of the War Cabinet twenty-four hours before I left for Paris. The Prime Minister was unavoidably absent, being then in Paris. Immediately the decision of the Labour Party Executive was taken I wired to the Prime Minister informing him of the position, and yet I am compelled to make this comment, that the Prime Minister and colleagues who have issued the document to the Press that is now known to the world, charging me with withholding information from the Conference, stand convicted before this House in having intimated to it that the whole of the arrangements for my going to Paris were done without their knowledge.
rose —
Sit down!
I should like to ask my right hon. Friend what he means by saying he sent a wire to me to Paris stating what the position was? Me does not mean to suggest he wired to me to Paris to tell me what decision was taken by the Labour party? The only wire I had was a telegram stating he was going to Paris with four Russian delegates, Wardle and Macdonald. I received that, I think, on Thursday. Nothing about business—not a word.
The statement that I made is in strict harmony with the position. I intimated to the House that, after the decision had been taken in regard to the visit to Paris, I intimated that to the Prime Minister, and that it was the subject of a special meeting of the Cabinet. No one can challenge either of those statements.
I really think I must put the facts before the House. My right hon. Friend the Prime Minister was absent. His colleagues here had no knowledge whatever from my right hon. Friend of his intention to go to Paris with the Members mentioned. We discovered it first in this telegram which was circulated to us. On receiving it, in the absence of the Prime Minister, I summoned the Cabinet to deal with it. We clearly expressed to our right hon. Friend our disapproval of the course he had intimated to us it had been decided upon and he must go. In these circumstances, as I said to the House at the time, I was not able to interfere further than that.
I have not a word to say with regard to the explanation given by the Leader of the House. I accept every word of it. That does not clear him. It does not clear the Cabinet from the—I am not going to say guilt; I am not going to make such a charge—from the fact that they intimated to this House, in reply to a question, that all the arrangements were made without the knowledge of the Cabinet.
I am sure the House will understand. I am very sorry to interfere with the speech of my right hon. Friend, but, on the contrary, in one of the supplementary questions put to me it was said, Did the right hon. Gentleman conceal from us he was going? I at once replied that we did know he was going, but we only knew it after all the arrangements had been made.
I leave this matter with the House. The one point that cannot be challenged is this: This House did not know, notwithstanding all the questions that have been submitted, that there ever was a special meeting of the War Cabinet between the Labour party coming to this decision and my leaving for Paris. I want to refer to this special meeting a little further. I must refer to it because it was the first opportunity I had of stating the decision of the executive of the Labour party the previous day. It was the first opportunity since my return from Russia to put my own position with regard to the Stockholm Conference. I also went the length of intimating that it was upon my responsibility—upon my advice—that the executive had taken its decision to make a recommendation to the Conference that the invitation to go to Stockholm should be accepted. I think I ought to say that there was a very sharp division of opinion. I know that I am treading on delicate ground, but, in view of the fact that the Leader of the House has intimated what took place at that particular Cabinet, I cannot see that I can do other than follow him. [An HON. MEMBER: "Out with it!"] There was a very sharp division of opinion, I admit, and, as the result of that sharp division, having given advice to my executive, although the whole of my colleagues present were against me, I offered to end the difficulty by expressing my willingness at once to tender my resignation. I think the Leader of the House will agree with me.
Quite.
I had to bring that point out because it has something to do with the question raised, to which I shall have to refer later, in the Prime Minister's letter. On my return from Paris on 1st August, I immediately saw the Prime Minister. I gave him a very full and, I hope, very faithful statement as to my own personal position. I gave him the reasons why I had reached the conclusions that it was in the interest of the Allied cause and of our own country, so far as our relationships with Russia were concerned, that we should be represented at the Stockholm Conference, if we could make it of a consultative and not of a mandatory character. At the close of our conversation—and that was the day upon which the Debate on the Paris visit took place—the Prime Minister invited me to attend a special Cabinet at four o'clock. I complied with his request, but, to my surprise, when I turned up at the Cabinet, I was informed by the Secretary of the Prime Minister that he wanted me to wait in the Secretary's room for some time. I waited for a full hour, and, at the end of the hour—I leave the House to form its conclusion of the treatment—the Minister of Pensions was sent out to make a statement to me. I intimated to my right hon. Friend the Minister of Pensions that I did not do business in that way. I put what I thought was a very pertinent point: "I am either a member of the Cabinet or I am not. If I am a member of the Cabinet, and I have anything to say to my colleagues, I will say it to them when they are all present." He returned and told my colleagues what I had said, and I was at once invited in, the Prime Minister making the statement—I will be perfectly fair and frank—that I had been kept waiting out of regard for my personal feelings. I put in my protest, as I thought I was perfectly entitled to do, for I will venture to say it will be difficult to find another precedent, so long as a Cabinet Minister has not tendered his resignation to the Prime Minister, that when that Cabinet Minister's conduct was being investigated he should be kept in another room. [An HON MEMBER: "We are getting on!"] Having made my protest, we discussed the question of my visit to Paris, having regard to the Debate that was going to follow the same evening. After the Debate—and this is a very important point because Stockholm did loom very large in that Debate—there were some very strong opinions expressed, especially on the opposite side of the House, against the whole business of Stockholm, and I very naturally expected, having regard to the Debate, that a very early opportunity would have been presented for going into the merits or demerits of the whole question of the proposed Stockholm Conference in the Cabinet. But to my surprise the week ended and the subject was not raised. On the following Tuesday, the Tuesday of last week preceding the Labour conference, I asked the Prime Minister when we were going to consider the question of the Stockholm Conference, and he replied that he hoped at the next Cabinet, but I had better see him first. So that on Tuesday, the 7th of August, I did see the Prime Minister by himself by appointment at Downing Street, and we talked over matters at some length. I ventured to make two suggestions at that interview. On that day the Attorney-General's legal opinion with regard to the Conference had been circulated to Members of the Cabinet, and I said to the Prime Minister, if the Government is going to act upon this legal opinion, I would suggest that an immediate announcement of that fact be made to-morrow. I attached very great importance to it because, if I had to remain a member of the Government, if there was going to be a legal side of the case, if it became the policy of the Government publicly announced through this House, I would have had to have gone to my labour committee and my conference and pointed out to them, as I undoubtedly would have done, that this legal position would compel me to consider my personal position, and choose between either giving up the secretary-ship of the Labour party or giving up my membership of the War Cabinet.
I made a second suggestion. I suggested that the Cabinet ought to allow the Labour party conference to decide, and apart altogether from the legal aspect of the case, if they decided in favour of sending a delegate to Stockholm, we should consent to their going; but in order that the Government might officially disssociate itself from the conference, I suggested that no member of the Government should form part of the delegation, even including myself. The suggestion with regard to the announcement of the legal aspect of the case was the subject of discussion between my labour colleagues in the Government the same evening. I found for one reason or another they were unanimously opposed to any statement with regard to the legal aspect of the case being made before the Conference. I want to say quite frankly that as they were unanimous I at once weighed the position that I had taken up earlier in the evening with the Prime Minister on that aspect of the case, and I telephoned immediately after they had intimated their unanimous decision intimating to him that on the legal aspect of the case we were unanimous that no announcement should be made before the conference, but that the conference should be left absolutely free from Government influence to come to a decision. This aspect of the case came before the Cabinet the following morning. I again put in the decision that I had reported to the Prime Minister over the telephone the evening before. The legal aspect was again discussed, and notwithstanding the intimation that I had made on behalf of my labour colleagues, a decision was taken that an announcement would be made on the question that was then on the Order Paper in the name of the hon. Baronet who represents Blackburn (Sir H. Norman) that in reply to that question then on the Order Paper the Government should state the legal aspect of the case, with a further intimation that the matter did not alone concern the British Government, and that a full statement would be made to the House to-day.
That was the last Cabinet decision on this question that I know anything about, because I think I am right in saying I have not attended a Cabinet since. I believe I am right in saying that, although owing to pressure of work, I have not been able to follow the answers to questions, I believe I am right in saying that that decision, as come to that morning, was not reported to the House, and unless it has been reported to the House to-day, a decision that was reached that day whilst I was there that it should be announced, that decision was not carried out. The reason why it was not carried out has never in any syllable been reported to me by the Prime Minister or any of his colleagues. I have done my best, Mr. Speaker, to deal with this aspect of the case in chronological order, and I want to make one very emphatic statement. I want to say that during the whole of the time I have referred to in my speech I never hinted to any of my colleagues, either collectively or individually, that I was going to do otherwise than continue the course to which I had committed myself, as I stated in this House on 1st August. Moreover, during the whole of this time no request was made that I should state the position for the Government at the Labour party conference, and what is more, having regard to all that had gone on, having regard to the advice that I myself had given, having regard to the fact that that advice had been placed on the agenda paper of the Conference that had been sent out when the invitations were published, if such a request had been made definitely, as I think it ought to have been very definitely and very clearly, then there would have been no alternative for me but to have definitely tendered the Government my resignation.
This brings me to the very strange proceeding on the part of the Prime Minister of issuing to the Press a letter that appeared in the late editions of Saturday night, certainly the Press of yesterday and to-day. In that letter the question is very definitely put why it was, knowing as I did the views of my colleagues, I did not resign. I want to face that issue and that challenge, and deal with it as faithfully as it is at all possible. My first reply to the challenge is, I did not do so having regard to the fact that at the special meeting of the Cabinet before going to France, as the Leader of the House has just admitted, I recognised the differences between us, and offered to tender my resignation. Moreover, owing to the unsatisfactory answers that were being given, and had been given ever since I went to Paris with regard to that visit—answers, let me say, that placed me in a false position, because it was being gossiped in the Lobby that Henderson sneaked away to Paris without his colleagues being made aware of the fact that he was going—having regard to these answers, I said to my colleagues in the most emphatic language, "If on this question you want my resignation, you will have to ask for it." It would have been a very fine thing for these questions to have been asked in the early days and answered in the way they were answered.
As the business of that Cabinet has been referred to, I want to say not only was my visit to Paris mentioned, but I want to go further. The fact that the four Russian delegates were going was mentioned, and I ventured to say to my colleagues—and, mark you, I would not have given the history of this Cabinet, I would have mentioned the fact that it was held and nothing more if the Leader of the House had not risen and made the statement he did—that the Russian delegates were going, and I said they were the guests of the Labour party, and it appeared to me that the Government might do well in looking after them to the extent of seeing that they had facilities to get to Boulogne. I was authorised to make the arrangements. I made the arrangements, but, unfortunately, a question was asked about the expenses to Russia, and, in order to make the answers fit, I was invited, through the instrumentality of the Minister of Pensions, conveying a message from the Chancellor of the Exchequer—and these are the people that talk about loyalty to colleagues—that I might see to it that the whole of the money that had been expended should be returned, and the money was returned, and, though I was authorised to look after the Russian delegates, and did look after them up to this moment, their expenses have come out of my own pocket.
I want to go further. I want to deal with this question of resignation. The letter of the Prime Minister would suggest to the public that they did not know that I had ever committed myself on this question of a Stockholm Conference, and that I ought to have resigned. Let us see what would have been the effect of my resigning upon the great Labour Conference that had to be held two or three days afterwards. It would have shown that there were strong differences, or, in other words, that the Cabinet were opposed to the business. Does not the Prime Minister, of all men, realise that for me to have gone to the Conference as a resigned Minister on the question of Stockholm would only have had one effect? I think my Labour colleagues who are in the Government, and who were so anxious that the Conference should not in any way be influenced by the action of the Government, would be the first to admit that, large as the vote was, it would have been larger if they had felt that I had had to resign. I know what would have been said then. It would not have been admitted that it was a vote on the merits of the question. Oh, no! It would have been said that it was a vote on Henderson's resignation. I will leave the House to judge, having regard to all that I have said, of the course that I have adopted, having once offered my resignation, having told the Government that if they wanted it on Stockholm they would have to ask for it, having made that position unmistakably clear, and having told them that I had advised the executive. I leave the House and the public to judge whether there was anything in the nature of the conduct attributed to me in the letter sent, I think, with undue haste and with a lack of consideration, as it was on Saturday morning.
With regard to the fact that I spoke at the conference as I did. This is a very important question, and the Prime Minister makes the most of it in his letter. He rather gives the impression that I undertook to speak as a member of the Government. I venture to say, if Members will keep in mind the history that I have tried to recite, they will see that it was impossible for me to have done so. If I had done so, I should have had to resign the secretary-ship. There is not a shadow of doubt about that. Anybody who knows the history of the Labour movement, knows that it would have been impossible for me to have done anything of the kind. I did not do so. The executive met on Thursday, the day before the conference, and the executive was challenged with regard to the vote at its previous meeting. The matter was reconsidered and a fresh vote was taken, and I think I am right in saying that by a vote of nine to five it was decided to continue to give the advice that had been placed upon the notice paper calling the conference. The executive then invited me, as its secretary, to state their case at the conference the following day. Is it not fair that I should ask the House to keep in mind that I was speaking only as secretary of the Labour party? And I will venture to claim that those who heard my speech and those who have read it cannot find in it any trace of a claim that I was doing other than presenting what I thought to be a fair and impartial case on behalf of the recommendations which my executive had made. I had that case to prepare, and, in preparing it, I could not keep from my mind the telegrams—and this is a very important point which I am leading up to—coming to me day by day in the ordinary course of Government business. Let me say, as to those telegrams, that one presented the case one way and another the other. I pre-pared my case finally on Thursday night and on Friday morning, and I want to claim before this House that I made an honest attempt—and I hope that I shall be able to show that I did so—to put before the conference an accurate summary of the position, even as it affected the Russian Government. May I trouble the House by quoting from the notes that I practically read, because I was so anxious to present the case with all accuracy to the delegates attending the conference: no right to quote telegrams without the consent of His Majesty through a Secretary of State. Therefore, I did not say anything that I was quoting Government telegrams, but I did say this, and I honestly think that I lifted the strongest thing from the telegrams: sponsibility for this rested solely on the countries engaged in the War. If I had quoted the telegram which I am charged with withholding, how could I have escaped from quoting other telegrams? I could not have quoted the telegram without getting the consent of His Majesty through a Secretary of State. I should have had to invite permission to quote another telegram. I was going to quote that telegram to-day, but, very properly I think, I was informed by the Secretary of State that I could not do so, and I was given a formula which I have accepted. I am not complaining. I am going to read the formula.
Hear, hear!
Just let me read.
"The Russian Government of that date—"
That is 2nd August—
"were certainly of opinion that if the Conference was held, Russian Socialists must be allowed to attend, and that if Russisn Socialists attended it they would like the Socialists of Allied countries to attend it also, so that the Russian Socialists should not be isolated and the field thus left clear for the Germans."
I said all that in my speech.
"Good observers earnestly hoped that British Socialists would attend the Conference, as they were of option that the refusal to allow British Socialists to attend would expose us to attack and misconception in Russian Socialist circles."
Is that the telegram from Russia?
No, I am going to keep loyal with the permission that I was given. If the hon. Member or any other Member desires to point out any further information, it must come from the Government, and not from myself. Having dealt with this question, it brings me to what I cannot otherwise describe than the most unfortunate position arising out of the Prime Minister's communication to me on Friday. The Press, as is usual on these occasions, have been all—not all, but nearly all—largely on one side. There is no better Press Bureau in this country than the one controlled by the Prime Minister.
He runs the Press, if he does not run the War.
Before I resigned I had an overdose; since I have resigned I have had a super-dose; and though I have appealed, as I was bound to do, to the Press and to the public to suspend judgment until I had had an opportunity of stating my case in the only place where such cases ought to be stated—and that is in this House—I have been a subject of a shameful attack, and I say when you take up your newspaper and read at the headlines of charges of breaches of faith, of withholding crucial facts and the comments that have been made upon these things in these articles, I say I have strong ground for complaint. I think that this House ought to have been the judge and the jury, and if the House says that these statements were true after they haves been properly made and properly examined and properly replied to, I would have been quite prepared to accept the verdict of the House. Now, it is difficult as you read the papers, to follow exactly what took place. The suggestion has been thrown out that I received a telegram on Friday, the day of the conference, from Kerensky. I want to make it clear exactly what did take place. I understand that a telegram from Kerensky did come. I never received it; I was told at seven o'clock on Friday night, while I was waiting in the Secretary's room at No. 10, Downing Street, that a telegram had been received since the conference closed, through the French Embassy, saying that Kerensky dissociated himself from the conference. I did not receive that telegram. I have not received that telegram yet, and the only knowledge I have of that telegram is the statement made by Professor Manteaux whilst I was waiting in the Secretary's room. He is on the staff of the French Embassy and acts as interpreter. Now, what actually took place regarding the communication from the Prime Minister was this. I am sorry with regard to the misunderstanding arising out of that communication. What took place was this: On Friday, just as the Conference was adjourning at midday—adjourning, dispersing, going away, going where they liked in order to discuss what had taken place in the morning in their separate sections—just as I was leaving the platform an envelope was handed to me which I saw at once was from the Secretary of the Prime Minister. I opened it and I found the telegram, the exact copy of which I had had before me, and to which I have already referred, when I was preparing my speech on the Thursday night and on the Friday morning. I had a little time during the adjournment. We adjourned, I think, at twelve, and had to reassemble at two. I had my lunch to get and one or two things to attend to, but I did try to write to the Prime Minister and return him his document, and in my hurry—I am quite prepared to admit that in my hurry I did perhaps not fully explain the position. But I did say that I had informed the conference that there had been a modification in the position taken up by the new Government as compared with the old Russian Government. I am not going to take that matter further. Whatever be the verdict of the House upon this statement, I am prepared to claim, and claim most emphatically—claim now and claim at any time hereafter—that the last intention I had—and I hope that hon. Members in all parts of the House will accept it—that the last intention I had was the intention of withholding any information that I was legally entitled to use from the conference. I ought, in fairness to myself, to say that some of the delegates claimed that after I had concluded my speech they could not but think that, whilst I had advised in one direction, my speech was an overwhelming case against going to Stockholm. So it is very difficult to understand why, if I made such a speech, that those who heard it thought the speech was against the conclusion I myself said I had reached, and it is somewhat surprising that the charge should have been preferred that I had withheld information against the interests of the Russian Government. I have trespassed at considerable length upon the patience of the House, and I said at the beginning of my speech, as I said in my statement which I issued to the public on Saturday, that in anything I had to say at this juncture I would have to have regard to the national interest. I have tried faithfully to deal only with any question that might affect the national interest, because of the serious aspersions made upon my own honour in the Press and in the letter sent to the Press by the Prime Minister. I understand now that as the Government have moved the Adjournment of the House the whole question may be fully considered. I wish with all my heart that such a Debate could have been impossible. I have not told the full story of this Stockholm business. I do not intend to tell the full story of this Stockholm business.
Why not?
Because I believe honestly, in the interests of the nation in this great crisis, it is highly inadvisable that that story should be told at this moment. To adopt any other course, to follow the course of a general Debate at this moment, I want to warn the House, means opening up questions regarding this Stockholm Conference that have been hanging over for several months, and in view of the evidence of unrest in the country, in view of the difficulty that I believe the Government will have to face before this Stockholm Conference question is finally disposd of—
Hear, hear!
I think it is highly inadvisable, in the public interest, that this question should be opened up any more than is necessary for those who have been forced to clear themselves of the charges made. My last word is as I have said in the letter to the Prime Minister. The House knows my desire to see this War carried to a successful conclusion. I have endeavoured—though I claim it for myself—I have endeavoured ever since the War began, at great risk occasionally, at great risk in the ranks of my own movement, to do only that which I thought would lead to victory for the Allied cause and for a lasting and honourable, and, I hope, a people's peace. It is because of that that I deeply deplore the necessity for saying some of the things I have been compelled to say to-day, and I wish to repeat that the moderate position I have taken up in the brief letter I sent to the Prime Minister could have been reciprocated, for that course, in my judgment, would have been in the best interests of the nation, and I have been compelled to make this statement in self-defence against gratuitous attacks upon my honour. I am now content to leave the matter with the House and the public.
Whatever anyone in the House may think about the major part of my right hon. Friend's speech I am sure they will respond to the last appeal he made for unity in the securing of victory for this country, but with regard to about three-fourths of his speech I think I should consult the interests and the wishes of the House by not making any comments upon them because they are not in the least relevant to the great issues that have arisen. I do not wish to use the word "triviality," but they are not issues which are large enough to merit the attention of the House—for instance, as to whether my right hon. Friend had been kept waiting for an hour. I can assure him that we were anxious to treat him with every possible courtesy. After hearing my right hon. Friend's speech I am not sure it is necessary for me to say anything more than repeat the statements which have already been made in the public Press
5.0 P.M.
They have been challenged categorically by him in respect to one matter. My right hon. Friend says that he never gave any indication to any of his colleagues of any change in his mind, or opinion, or intentions with regard to Stockholm. All I can say upon that is that I have seen every member of the Cabinet who was present on the day of that discussion. I have asked each of them what impression was left on his mind, and the impression of each is identical with that left on my mind. It was that my right hon. Friend had made up his mind, for reasons which were indicated to us, that he would use the whole of his influence to turn down the Stockholm Conference at the Friday meeting. There is not a member whom I have consulted—and there are two or three of them present here to-day—whose memory is not identical with my own. My right hon. Friend had about an hour's conversation with me on Tuesday, and that is the impression he left on my mind. The two reasons which induced him to change his mind were, first of all, the opinion of the Attorney-General that it would be illegal for British subjects during wartime to meet the enemy, and the second was the change that had taken place in Russia itself, which had influenced not merely his own mind, but the minds of some of the French delegates with whom he as well as myself came into contact during their visit here. That was the impression left on the mind of every member of the Cabinet who heard what my right hon. Friend said on Tuesday.
Will the right hon. Gentleman quote the Cabinet minute on the subject?
I have not got the Cabinet minute here, but I could quote some of the words my right hon. Friend used, and which were recorded. I have refreshed my memory by referring to the actual discussion that took place in the Cabinet, and no man reading that discussion could come to any other conclu- sion than the conclusion to which we all individually and collectively came—that my right hon. Friend had made up his mind on Friday to turn down the Stockholm Conference.
Did I say so? Is there a record in the Cabinet minutes?
Did he say so?
Certainly.
I want to ask the right hon. Gentleman if I made the statement that I was going to do other on Friday than what I had done at the executive, and if there is a record of that statement in the Cabinet minute?
We have got a record of the Cabinet minute. A discussion took place, and undoubtedly that was the effect of the words used by my right hon. Friend on Tuesday, and on Wednesday morning, and of the words which he used to me on Tuesday. May I just point this out to my right hon. Friend? What is the meaning of his letter—
May I ask the right hon. Gentleman a question? I have referred to the conversation on Tuesday. May I ask the right hon. Gentleman, in view of what he is now stating, whether I did make to him the suggestion that it would be best, if the Labour Conference decided to go to Stockholm, that we should allow the delegates to go, but that no member of the Government should be included in the delegation?
I have no-recollection of that. I know my right hon. Friend suggested in the course of various discussions I had with him that he should not go, but that delegates should go. I said that so far as I was concerned I should not assent either to his going or to any delegate going representing the people of this country.
I have admitted in my speech that was the position of the Government, but I want to ask the Prime Minister when the conversation took place that he referred to, because he tells the public we had several. I say we had one, the one he is now referring to, and he says I had mentioned these words to him more than once. Will he tell the House when we had the other conversations?
I cannot now, but I can tell my right hon. Friend that the most important conversation was the one we had on Tuesday. What I want to put to the House—
But will the right hon. Gentleman—
The Prime Minister is in possession of the House.
It is not a very pleasant matter to have differences of opinion of this kind with colleagues. All I can say is this—and I want the House and the country to realise it—that the impression left on the minds of eight persons, some of them members of the Cabinet, and some who are not members of the Cabinet but who were present, who have each of them been seen individually by me—the impression left on their minds no doubt that the statement of my right hon. Friend was that on Friday he meant to turn down the Stockholm Conference. After all, eight men would not have had that impression unless there was justification for their coming to that conclusion. The same impression was left on the minds of the right hon. Gentleman's Labour colleagues in the Ministry, who had seen him separately. May I call my right hon. Friend's attention to the actual terms of his letter—the letter he wrote to me after he had made this speech.
"I think I ought to inform you that after the most careful consideration I came to the conclusion that I could take no other course than to stand by the advice I had given the day after my return from Russia."
If we were all under the impression that he had always been of that mind, that that was the course he intended to take right through, what was the point of his writing that to me? As a matter of fact, my right hon. Friend refers to the Press. There were statements in two newspapers on Friday morning that my right hon. Friend intended taking this course, the course which he did take.
On a point of Order, may I say that this statement had to be made to the Press because of a statement that went round the previous day's issues of the Press that I had changed my mind.
Here are statements that appear in the Press. My right hon. Friend says he thought it was necessary to communicate to the Press, in order to correct a false impression. It was with surprise that I read them. I did not believe them, neither did my colleagues believe them, because we had been given the other impression. What I want to know is this. Here were statements given on Thursday to the Press. [An HON. MEMBER: "Who gave them?"] My right hon. Friend says he thought it necessary to do so in his own defence. Why were they not given to the Cabinet? Why was not I told? Why were not my colleagues told? It would have made a very considerable difference. What difference would it have mad? It would have made this difference: That, in the first place, my right hon. Friend could not have gone to that conference to declare, not only as Secretary to the Labour party, but as a member of the body responsible for the direction of the War, his opinion that we ought in the interests of Russia to send delegates to Stockholm. My right hon. Friend says that, if the Labour conference on Friday had known that the War Cabinet took a different view, the vote would have been overwhelming. What does that mean? Is it really conceivable—I do not believe it—that the responsible Labour leaders of the kingdom, knowing that those who are responsible for the conduct of the War thought it was a dangerous expedient under present conditions in Russia to send delegates to Stockholm, knowing that those who are responsible for the direction of the War in France, in Italy, and in the United States took that opinion—is it conceivable that, having heard that, they would flout it by a bigger majority? I say it is really an insult to intelligent people to ask them to believe that. Now I come to the second point, with regard to this telegram. My right hon. Friend has quoted a telegram which was received some time in August. That was before the change in the Russian Ministry.
On a point of Order. The telegram to which I referred is that of 2nd August. The House knows when the change in the Russian Ministry took place.
Since then. The change took place after that date. It is difficult to dwell upon this, and this is one of the evils which has been inflicted by the action which has been taken. There has been a change in policy. Without quoting any secret information, it is obvious to everyone who reads the newspapers about what is taking place in Russia that there has been a most drastic change in the whole policy of the Government in Russia. There has been an end put to the fraternisation which has destroyed the morale of the Russian Army. There have been most drastic changes, introduced with a view to restoring the fighting efficiency of the Army, to make it a better fighting machine, and to restore discipline. Naturally, under these conditions there would be a different feeling with regard to holding a fraternising Conference with the enemy. What was the meaning of that telegram which came on Thursday? No one can read the telegram without seeing the change that had taken place. Under the old conditions the Russian Government was supposed to be not merely in favour of the Conference, but to be promoting it. What did this telegram mean? It meant that as far as they were concerned they as a Government had nothing whatever to do with the Conference, but they felt that they could not possibly prevent delegates from attending it. Let anyone read that telegram and see what a difference there is between the attitude of the Russian Government as to Stockholm—
From whom is the telegram?
From the Russian Government. Then there are the concluding words of the covering letter.
Who wrote that?
I am not going to say. It is enough to say that it came from the Russian Embassy. Let the House remember what the words were which I quoted in my letter—that he hastened to send this to the Government, because there was an attempt being made to create the impression in this country that the Russian Government was anxious to get this Conference. Does anybody imagine that if that document had been read to the conference on Friday it would not have made a great difference? Let the House remember what was said on Friday. The hon. Member for Leicester (Mr. Ramsay Macdonald),
"after welcoming Mr. Henderson into another fellowship, said my hon. Friend the Member for South-West Ham asked: Did Kerensky invite the Powers?
"Mr. Macdonald: Yes, he did. Mr. Kerensky's view is that the Conference at Stockholm is absolutely necessary if his hands are to be strengthened.
"Mr. Will Thorne: I wish Kerensky were here to repudiate that.
"Mr. Macdonald: Nothing would have delighted me more than to have him here alongside me."
Those are the statements that influenced the conference on Friday—the belief not that the Russian Government found it impossible to prevent delegates going there, but the belief that the great leader of the Russian democracy was anxious that there should be a conference in order to strengthen his hands. Could anyone have believed that after reading that telegram? That is the point of the telegram. My right hon. Friend says he did not get it in time. All I can say is that it was sent in time, and if it did not reach his hands before he was due to leave the platform I do not know how to explain it. But that is not enough. My right hon. Friend had this telegram himself on Thursday night. He, in his letter to me, said he had already read it.
I told the House so.
So it was not necessary that he should have had it from me. Besides, he read my communication before the vote was taken. I think it would have been right to the delegates, who were coming to a very important decision on the representation that the Russian Government were anxious to have this conference, for him to get up and say, "A communication was received last night from the Russian Government to say that it was a party concern, and they would have nothing to do with it." Why was not that done I think I have dealt with the two facts which I put in my letter. The first is that my right hon. Friend had given us the impression that he was going to take a different line on Friday. That is the impression of the eight men who were present at the Cabinet discussion. It is the impression of his Labour colleagues, and it is borne out by that statement in his letter, written after he delivered his speech. I come to the second point, that my right hon. Friend had my communication from the Russian Government which made it clear that, at any rate, they were not promoting the conference and that the only view they took was that if there were a conference they could not prevent delegates from going there. Although my right hon. Friend had it in his possession on Thursday he never gave that impression to the conference. He did not read it, although he had a personal request from me to do so, and he had my personal request in his possession before the vote was taken. That was a telegram which would have made a substantial difference in the views of, I say, the vast majority of those who were present at that meeting.
Take another vote, and see!
With regard to the general position, I have only one thing to say. Whatever may have been my right hon. Friend's views about the conference when those who were promoting it were practically in complete command, he himself admitted that there was a change within the last few days when efforts were being made to restore the discipline of the Army. Nothing could be more fatal to those conditions than to hold conferences with the enemy at the very moment when the first step in the restoration of discipline is to prevent fraternisation with the enemy on the Russian front. That is the conclusion to which four Allied Governments have come. I had rather not say anything for the moment about the opinion of the Russian Government itself; it has got its difficulties. The United States of America have decided that they cannot allow delegates to go there. That is a great democracy, a great Republic. The French Republic, they have come to the same conclusion. Italy has come to the same conclusion. The British Government have come to the same conclusion. The four Allied countries have come definitely to the conclusion that if peace terms are to be discussed, they must be discussed by the representatives of a whole nation and not merely a section. I am the last man to disparage the power of Labour. I am the last man to say anything derogatory to their influence and to their weight and their power in the community, but they are not the whole community. When peace comes to be made, it must be made by the nation as a whole. In Russia there is a Socialist Government; at any rate, it is a Government the majority of whose members are Socialists. It is a Socialist Government that has got the whole of the facts, and when you come to get peace terms to discuss you must not merely have the authority of representatives of the nation, but you must have those representatives in full possession of all the facts which enable you to come to a decision upon the subject. To have a sectional discussion of peace, whatever may be said about that being necessary in order to preserve unity with Russia, when it becomes clear that the Russian Government have no responsibility for the Stockholm Conference, I say we should not be doing our duty to the Alliance, but we should be doing our duty least of all to Russia in her difficulties if we were to countenance such a project.
I do not propose to enter, even for a moment, into the unfortunate controversies as to matters of fact which have been raised by the speech of my right hon. Friend the Member for Barnard Castle (Mr. Henderson) and by the reply of the Prime Minister. Those are not matters with which I think any of us, at this moment, need deeply concern ourselves. Whatever misunderstanding there has been on the subject, and it is obvious there has been a misunderstanding—whether there is anything more than a misunderstanding I for myself, and, I believe, every Member of the House will be loth to believe—I would only make one remark in regard to what I would call the personal situation. It is that what has happened discloses—here I may be assuming a certain responsibility of my own, shared by my successor—the inconvenience, indeed the impossibility of Ministers fulfilling dual capacities. Than my right hon. Friend no one has rendered—and I bear the testimony in a full sense and with full knowledge and a strong sense of appreciation—no one has rendered more service than he has done during the War, both in the Cabinet and in his relation to Labour. But there come situations—they are bound to come sooner or later—in which a man cannot divide himself, as it were, into two watertight compartments, and, with the utmost loyalty to both interests which he is bound to represent, to speak at one moment as a member of the Cabinet and at another moment as the entirely detached and independent spokesman for Labour. It is an impossible position. In saying it is impossible, one is not implying any reflection of any sort or kind on the strenuous efforts and honest purpose with which my right hon. Friend has endeavoured to fulfil it. So far with regard to the personal matter.
I should like to make one more observation of a much more general and, if I may say so, of a much more important character. My right hon. Friend the Prime Minister concluded his speech with a statement which I believe will be universally echoed, not only in this House and not only in this country, but through all the Allied Governments and peoples, that is, that peace—the peace which we all desire, and the only peace which will satisfy and recompense the purposes and sacrifices which we have made—is a peace which is approved by the peoples of all the countries concerned. I should be very sorry if, as a result of this discussion—which I trust the House in a patriotic spirit will abridge as far as possible, or, at any rate, keep within the narrowest practicable compass—I should be very sorry, and here I believe I speak our universal opinion, that the impression should go forth to the world that those in the Labour movement who are in favour of going to the Stockholm Conference, as far as at any rate the great majority, I might almost say the whole of them are concerned, were prepared to go there in order to pave the way or to lay the foundations of a precarious and a dishonouring peace. I have read, as I believe everyone in the House has read, the manifesto, as it is called, or the declaration of policy at any rate, which was approved by the Labour party, and which, as I understand, if the Stockholm Conference was to be held was to be the mot d'ordre.
It is not approved yet.
That is all I say. I am not going to commit myself or anybody else to an approval of all the statements in that declaration, but it is the declaration of men who are determined to persevere in this War to the end, till the great objects of the War have been achieved. Therefore, whatever differences of opinion there may be about this or that particular geographical or ethnological detail, there is no doubt whatsoever that the Labour party in this country, from top to bottom, with, I believe, the exception of a very insignificant minority, are as determined to-day as they have shown themselves since the first moment when war was declared not to allow these gigantic sacrifices which we and our Allies have made in common to be thrown away, and not to sheathe our sword till we see our way to the complete attainment of a satisfying and an enduring peace. I hope that is the impression this Debate may leave upon the Allies, and that they will not imagine for a moment, because there have been these regrettable differences of opinion and failures of understanding in regard to a particular matter, namely, the Stockholm Conference, that we as a people, we as a House of Commons, or His Majesty's Government as a Government, are any the less determined at this moment than we always have been to sacrifice anything rather than consent to a dishonourable peace.
Motion, "That the House do now adjourn," by leave, withdrawn.
War Loan Bill
Considered in Committee.
[Mr. MACLEAN in the Chair.]
CLAUSE 1.—(Issue of New War Loan.)
(1) Any money required for the raising of any supply granted to His Majesty for the service of the year ending the thirty-first day of March nineteen hundred and eighteen, and, in addition, of a sum not exceeding two hundred and fifty million pounds, or for the raising of any sum required for canceling securities or Treasury bills under the powers of this Act, may be raised in such manner as the Treasury think fit, and for that purpose they may create and issue any securities by means of which any public loan has been raised or may be raised, or such other securities bearing such rate of interest and subject to such conditions as to repayment, redemption, or otherwise, as they think fit.
(2) For the purpose of making the statutory provisions applicable to former war loans applicable to the War loan under this Act, Sub-sections (2) and (3) of Section 1 of the War Loan Act, 1914, and Sub-sections (2) and (3) of Section fourteen of the Finance Act, 1914 (Session 2), shall apply to any sums or loan raised or any securities issued under this Act as they apply to sums or loans raised or stock issued under the War Loan Act, 1914; and Sub-sections (3), (4), and (5) of Section, one of the War Loan Act, 1915, shall apply with respect to the issue of securities under this Act and to securities issued under this Act as they apply with respect to the issue of securities under that Act and to securities issued under that Act, and in those Sub-sections as to applied any reference to war stock, war bonds, or securities issued under the War Loan Act, 1914, shall be deemed to include a reference to securities issued under the War Loan Act, 1915, Section fifty-eight of the Finance Act, 1916, and the War Loan Act, 1916.
(3) There shall be paid to the Banks of England and Ireland respectively out of the Consolidated Fund or the growing produce thereof, for the management in every financial year of any securities issued under this Act, such sums as may be agreed upon between the Treasury and those banks respectively.
(4) Any expenses incurred in connection with the redemption of any securities issued under this Act shall be charged on and paid out of the Consolidated Fund or the growing produce thereof.
(5) The power to raise sums under this Act or under any other Act authorsiing the raising of any sums for the purpose of the present War, whether passed before or after this Act, shall extend, and in the case of any past Act shall be deemed always to have extended, so as to authorise the raising of those sums either within or without the United Kingdom and either in British or in any other currency.
I beg to move, in Sub-section (1), after the word "fit" ["as the Treasury think fit"], to insert the words "but not by any issue of premium or lottery bonds or stock."
I desired to take part in the discussion upon the Second Reading on Friday afternoon. A number of points were raised, which prolonged the discussion consider: ably beyond the time expected, consequently several points which I and others wanted to raise we gave way upon in order that the next item of business could be proceeded with. One point I wished particularly to raise was by way of inquiry to the Chancellor of the Exchequer whether he had any proposals to make with reference to raising money by what are called Premium Bonds, or Lottery Bonds. There has been a good deal of discussion lately in the public Press and elsewhere about this proposal. I am not prejudiced upon it. I am not one of those who think it would be either a good or a very bad thing, but I am of the opinion that it ought not to be done without such a new step as this involves in our financial policy being considered in this House.
I am perfectly willing to agree to the principle the hon. Member has expressed, but these words are unnecessary, because we have not the power to raise money in that way without legislation, and I can give him the assurance that we shall not raise money in this way without special permission from the House in the way of legislation.
That is entirely satisfactory. I do not often get a satisfactory assurance so promptly and so clearly, and I congratulate the right hon. Gentleman. Under the circumstances, may I withdraw the Amendment?
Amendment, by leave, withdrawn.
I beg to move, at the end of the Clause, to add the words, "Provided that no public issue of a Loan or securities shall take place without making further provision for the service of such Loan or public sale of securities by an addition to the present basis of taxation."
I hope the right hon. Gentleman will give me an equally satisfactory answer. On the Second Reading, with some others, I expressed disappointment that in coming before the House for such wide powers for borrowing—
I do not quite know where the hon. Member proposes to insert his proviso. It does not say on the Paper, but in any event it looks to me as if he proposes a charge upon the subject. I do not quite understand what it means, but if it means anything which is associated, as he says, with an addition to the present basis of taxation, it is out of order, and I do not think he is entitled to proceed.
The place where I propose that it should come in is at the end of Clause 1.
On the point of Order. I do not see how it is possible to have these words, or anything like them, because they mean imposing a new charge on the subject. They could not be put into the Bill for that reason if for no other.
The Chancellor of the Exchequer indicates that if this proposal is put into the Bill it presupposes, if anything is done under it, a charge on the subject. I have now had further time for considering it, and I am quite clear that is the result. I must again draw the hon. Member's attention to the fact that I have said, that being the case, he cannot proceed with his Amendment.
I trust my explanation in regard to where it is going to come in—
It does not make any difference where it comes in.
My object in putting it there was to get from the right hon. Gentleman some undertaking that no public issue would take place without coming to this House for further powers. As you say it is not in order to add that to the Bill, which I take to be your ruling, because it will impose an additional charge, I beg leave to withdraw the Amendment, and I will speak on the Question, "That the Clause stand part of the Bill."
Motion made, and Question proposed, "That the Clause stand part of the Bill."
To increase our National Debt by a vast addition is unsound finance and is calculated to depreciate and injuriously affect our credit, and I think it ought not to be proceeded with without such an undertaking as I have mentioned. In support of that contention I should like to quote a principle laid down by Mr. Gladstone, because this raises the very important question of tax versus Loan as a means of raising your war revenue. Mr. Gladstone very definitely stated, when the same question arose at the time of the Crimean War—
"The system of raising funds (that is, borrowing) necessary for wars practises wholesale systematic and continual deception upon the people. The people do not really know what they are doing. The consequences are adjourned into a far future. The general question of loans versus taxes for war purposes is one of the utmost interest, but one that I have never seen worked out in print. But assuming as data the established principles of our financial system and by no means denying the necessity of loans, I have not the least doubt that it is for the interest of Labour."
I regret that the Labour Benches are rather depleted, but it cannot be wondered at after the very exciting hour we have just had.
Look at the other side the House!
I do not make any complaint against them, though this is an exceedingly important Bill, because, after all, this is a practical question that we are now faced with in the midst of a great war, and whilst we are of course interested in a personal question we have to carry on, and even the speeches made by the two right hon. Gentlemen laid upon us the supreme importance of concentrating and presenting a united front in the great task to which we have put our hands. Mr. Gladstone continued: them properly to place that Loan on much more advantageous terms, it would be in the interests of sound finance. We know, for instance, that should peace come the Excess Profits Duty Tax will disappear, and that would still further increase the proportion of taxed revenue. In confirmation of this, I would quote from a telegram from the United States to show what they are doing in regard to this question of taxes versus loans. The telegram, which is given in the "Times" newspaper from Reuter, says: them directly, and I would commend to them the figures I have just quoted. I am sorry to trouble the Committee with these figures, and I do not want to trespass too much on the patience of the Chancellor of the Exchequer, who has had a long and strenuous Session, and who with unfailing courtesy is prepared to listen when a case is put forward before him with facts.
I believe the proportion of our tax revenue towards the cost of this War is well under 24 per cent—that is to say, for every £100 we spend upon the War we are only drawing £24 in the way of taxation. The balance is raised by Loans. That is a very small proportion, and if you compare it with previous wars you will see how small a proportion it is. I agree, of course, that this is a colossal War, and that it cannot be compared in any sense with any previous war, but, at the same time, arithmetic and principles remain the same where you are dealing with a gigantic war or a small war, and facts are the same. In the Boer War we raised 33⅓ per cent. from taxation; in the Crimean War 50 per cent., under the ægis of Mr. Gladstone. That war from the finance point of view was the soundest in our history, for we raised half the expense of it from taxation. In the Napoleonic Wars, which more nearly approximate to this War, we raised something like 40 per cent. of the cost from taxation. I think the Committee will see that the proportion is a diminishing one. Our indebtedness has grown to such an enormous extent that, as was stated by the present Chancellor of the Exchequer and by the right hon. Gentleman (Mr. McKenna), it is almost impossible to estimate our daily expenditure on account of the increased cost of commodities. That accentuates and aggravates the position. The fact that the proportion of our tax revenue is a diminishing one, and is likely to still further diminish, is a very serious matter. We may perhaps by October be spending at the rate of £10,000,000 a day. I wish to impress upon the Committee the supreme gravity of pursuing a policy which does not keep up our proportionate share of taxation revenue. The advantages of keeping up our proper proportion of tax revenue can scarcely be overestimated. I do not suggest how the Chancellor of the Exchequer is to make his taxation proposals. The hon. Member for Hereford (Mr. Hewins) has different ideas of raising revenue by taxation than the hon. Member for Hanley (Mr. Outhwaite), whose name is on the Paper in | support of my Amendment. It would not be in order for me to go into details of the way in which more taxed revenue could be raised. I would only suggest that a more extended development of the Income Tax might be a sound method of raising the proportion. I hope I shall get the support of many hon. Members. We cannot all agree as to the methods of raising taxation, but we can agree upon the general principle, and I ask hon. Members to support me in my claim that we should have a statement from the Chancellor of the Exchequer before we separate giving some qualified promise that when we meet again in October, or before a public Loan is made to the world, some provision will be made for meeting the cost of the War by increasing the proportion of tax revenue.
6.0 P.M.
If my hon. Friend wants to know the feeling of the organised workers in different parts of the country upon this question, I think he can get it in two minutes. I am firmly convinced that organised labour throughout the country are under the impression that, as far as the cost of this War is concerned, they are bearing too many burdens. They honestly believe that a great deal more money should be drawn from direct taxation. Every time that a Loan is raised those who are in the habit of attending meetings in different parts of the country are faced with this fact, that those who have got any amount of cash and who are in a position to lend to the Government are receiving certain sums back m the shape of interest, and when the War is over these wealthy people will find themselves very much better off than before the War. There is no doubt that to a very great extent the wealthy people who have got any amount of money to lend and are in a position to lend to the Government are receiving a good deal of money back in the shape of interest. Therefore, I have advocated long before the War, and even at the present time the organised workers of the country are in favour of, a great deal more being raised by direct taxation and the removal of some of the burdens imposed upon them by indirect taxation. The Financial Secretary to the Treasury was good enough to give me the other day a return which I asked for in reference to taxable income. The return showed that during the War period the income of the country had gone up by £500,000,000. This shows that a great deal more money should be raised from direct taxation. Some time ago I tried to convince the Chancellor of the Exchequer of the absolute necessity of raising the income level at which men should be called on to pay Income Tax.
That does not arise on the Motion before the Chair.
I am very sorry if in discussing this question as to the method of raising money to pay for the prosecution of the War I am out of order in saying that there is a method in which some of the taxpayers could be relieved by increasing the burden of taxation on the shoulders of those able to bear it. As you rule that I am not entitled to discuss that on the question of the War Loan I hope that later on I shall have an opportunity of bringing the matter before the House. It is to come before the next Trade Union Congress which I am perfectly certain will decide unanimously in favour of the principle because many, many more thousands could be raised by direct taxation.
I have listened to two speeches which I hardly expected to hear in connection with the Loans Bill both of which were very much to the point. The hon. Member (Mr. Mason) brought forward a view which has often been expressed and for which there is a great deal to be said, that we are not raising a sufficient amount of the necessary revenue for the conduct of the War out of taxation. The speech of my hon. Friend (Mr. Thorne) is much on the same lines. He has the idea that a great deal more should be raised by direct taxation. I wish both hon. Members to realise that a considerable amount has been done in the way of increased taxation. Before the War the total amount raised was about £160.000.000. The amount raised by taxation this year will be about £570,000,000—that is to say, we have increased the total amount by at least £400,000,000. I would point out, further, that nearly the whole of that comes from direct taxation. I quite admit that in financing the War the Government and those responsible for advising the Government have to get the largest amount out of taxation which is compatible with maintaining the financial security of the country; but I have said many times, and I am sure that my hon. Friends will not disagree, that there comes a limit at which if you keep on increasing taxation you might give up all hope of raising money by Loan. It is obvious that if you tax to such an extent as to destroy the financial position you must abandon all hope of Loans. Both my predecessor and I have tried to get as much out of taxation as we could without destroying the power of financing by Loan. We are still trying to do that. Even for this year the proportion got out of taxation is very large, and I cannot at present give any undertaking that during the present financial year we shall endeavour to raise more money in this way, but that must not be taken to mean that I bar the right of doing so if circumstances should seem to make it justifiable. All that I ask the House to do now is not to consider that I am giving a pledge one way or the other, but to realise that this Bill which I am asking for now is to enable us to borrow money to meet debts which have been incurred, and I need not point out to my hon. Friend (Mr. Mason), who understands the City position, that from the point of view of sound finance you could not do a worse thing for business than to make it impossible for the Government to raise long-term Loans, while leaving them free to raise as much money as they like by short-term Loans.
It is hardly quite right to say that that is my intention.
I did not say that was the hon. Member's intention.
I do not for a moment suggest that any such idea ever entered my head. I am glad that the right hon. Gentleman has to some extent come towards my way of thinking by saying that he did not like to bar the way, but I am disappointed that he did not go further. A long-term Loan is a public Loan, and I believe he would place his Loan on much better terms if he would give some indication that he would bring in another budget, because if this floating debt did become abnormally large he could not go on piling up the floating debt and he would have to get a long-term Loan.
Question put, and agreed to.
Clause ordered to stand part of the Bill.
Clause 2 ( Shovt Title ) ordered to stand part of the Bill.
Bill reported, without Amendment; to be read the third time to-morrow.
Workmen's Compensation (War Addition) Bill
Order for Second Reading read.
Motion made, and Question proposed, "That the Bill be now read a second time."
I must apologise to the House for bringing forward this measure at such a late period of the Session, but we have found it impossible to introduce it earlier, and therefore I ask for the co-operation of Members in passing the Bill into law before the close of the Session, and in getting the Second Reading to-night. Shortly, the purpose of the Bill is to increase by 25 per cent. the compensation to all totally incapacitated cases arising out of injury in the industries of the country. It is as nearly an agreed Bill as one can get. We have consulted many important groups of employers. We had a conference at the Home Office, at which the Mining Association of Great Britain, the Iron and Steel Federation, the Engineering and Iron Foundry organisations, the Federation of Master Cotton Spinners, and the Cotton Spinners' Association, were represented, and I have reason to think that shipowning and kindred associations are not opposed to the Bill. The increase in the cost of living has made the demand a very intelligible one. As the House knows, the maximum amount of compensation which can be given is £1 a week. What the Bill does is to give a temporary increase to 25s. instead of £l. This Bill will be very easy to administer. It is pure arithmetical work, and all that need to be done between employers and insurance companies is to arrange the increase of premium, which is a very easy thing to do. Clause 1 is the governing Clause of the Bill. Clause 2 is machinery. Clause 3 is a provision which will bring under the provisions of this Bill when it becomes an Act, any of those contracting-out schemes which are registered with the Registrar of Friendly Societies. It is an important measure, which is needed very much in many parts of the country, and is recommended by all the Industrial Commissioners who have been making inquiry into industrial unrest; and because of these things I ask the House to give the Bill a Second Reading now and to treat it as an uncontroversial measure so as to facilitate its passage this Session.
The Bill is, as the right hon. Gentleman has said, an important one. I am sorry that it has been brought forward at such short notice. I think that I am correct in saying that it was only circulated this morning, and that therefore there is a large number of Members who have no knowledge of it, and there must be a still larger number of members of the public who have no knowledge of it. The condition of the House at the present moment, when the Members representing the great Government of the day and their followers number only five, and there are not many more on this side of the House, shows that the Bill has come forward unexpectedly, and that hon. Members really do not quite know what is taking place. It also comes forward after a very important discussion on the resignation of a right hon. Member of the House who was a member of the Cabinet, and, as the House knows, on these occasions when there has been a great Debate of a personal character of this sort, the vast majority of Members go out to discuss things in the Lobby without paying attention to the business which is coming on. Of course, everyone is desirous of doing all that is possible to make the lot of those who are injured as comfortable as possible, but in this particular Bill, which I only read within the last ten minutes, there are two things in particular which do not commend themselves to me. The first is that the Bill is retrospective; and the second is in regard to the last three lines of Clause 1. As to the first point, I understand from the right hon. Gentleman that the insurance companies make no objection, because they are prepared to pay the extra money on the premium being increased. I am not surprised that there is no objection under those circumstances on the part of the insurance companies. It is apparently the fact that a certain number of large employers' associations have been consulted and have agreed to the Bill. A large number of small employers and other people concerned are also affected by this measure, and many of them are people who know nothing about these great trading associations, and nothing whatever about the Bill with which they will be suddenly confronted and a demand for increased payment made, though they had been under the impression that they had made all their arrangements in regard to compensation and now find that they have to make fresh arrangements in order to meet the provisions of this Bill. Therefore, I object very much to the first part of the Bill which makes it retrospective.
It should be remembered that in these things there must be something like finality, and arrangements cannot be altered because of a rise in prices, which, by the way, I understand the present Government are going to cut down—the loaf to 9d., and meat to be fixed at much lower prices. Surely if the price of the necessaries of life comes down, it is but logic that the war bonuses should also be decreased, seeing that they were increased because of prices having risen. This War has been going on for three years, and then suddenly, without notice, this Bill is brought forward in this manner. As to the three last lines of Clause 1, I am not sure whether I understand their meaning. If the employer, as very often happens, and as he is legally entitled to do, has made an arrangement by which, instead of giving a weekly payment, he pays a fixed sum down, and the matter is settled, is he to have that arrangement reopened, and to be made to pay an increased amount? Are these arrangements to be rendered null and void, and a further payment to be made in addition] I hope that if the Bill becomes law these three lines will be struck out. Some of these arrangements to pay big sums were made years ago. The last compensation Act was in 1906, and certainly some of these arrangements have been made since eleven years ago; yet they are now suddenly to be revised, and people who thought, not only the large associations and insurance companies, but a number of small employers and others, among them householders-that they had made final arrangements, ten or eleven years ago, covering all liability, are now to be suddenly confronted with a Bill which is brought forward, in a hurry, and makes a demand for increased payment, while the War lasts and six months after. But once you introduce the principle that agreements entered into years ago are to be subject to revision, though it was thought that the arrangements made extinguished all future liability, where is it to end? How can you have any certainty that, six months after the War, the limitation now imposed by the Bill will not be continued? I feel that if the case to which I have referred had been present to the mind of the Government they possibly would not have set up a Clause of this sort, if I am interpreting it rightly; at any rate, I do not see why there should be this hurry to press the Bill.
I am glad the Government have brought in this Bill, and I think it will be generally received as a reasonable and wise proposal brought forward, because of the rise in prices consequent upon the War. The people to whom this measure applies are in very considerable difficulty. It is found that the compensation which was given them for their injuries does not now afford them that accommodation and assistance which it was the intention of the Act to provide. What the right hon. Member for the City of London said as to the reduction of prices, in regard to which there are various proposals now before us, I do not think the prospect a very hopeful one. I think that the teaching of history and our experience during the War is that interference by the Government in fixing of prices leads to the ruin of some people and the starvation of others, and not to making people comfortable and happy. I congratulate the Government and the Home Office on taking a step which I feel sure in these cases will provide an allowance to which these people are entitled, and I only hope that other Departments of the Government will also follow the example shown to them by the Home Office, and in the cases of pensions, and other matters of that kind, that they will show a more liberal spirit than they have done in the past. I am glad that the Government have introduced this Bill.
I also wish to congratulate the Government on having brought forward this little Bill for the purpose of meeting some very hard cases. The right hon. Member for the City of London seems to assume that this Bill has been brought in without due consideration. I can assure him that the question has been under consideration for many months past, as the Home Office knows. It has been discussed by various workers' organisations for many a long month, and the agreement between the Home Office and some of the largest employers in this country is regarded as a very reasonable and fair one. The result has been the bringing in of this Bill. No doubt there is a considerable number of hard cases in different parts of the country. The man with the full pay of 20s. a week finds that the sovereign has only the purchasing power of 9s. at the present time, owing to the prices of the necessaries of life having gone up. But it is not every man that gets 20s. full pay, for some are receiving 15s. and others 12s., and in cases whereas a man with 20s. will get 5s. more, the man with 15s. will only get a fourth, and similarly with those who receive 12s. a week. I think every Member of this House on giving this Bill reasonable consideration will agree that it is a desirable measure for meeting undoubted cases of hardship. The Home Office are to be congratulated on bringing forward the Bill, and I sincerely trust that it will not meet with any obstruction.
This is a Bill which I think the House should very cordially welcome. Undoubtedly the rise in the cost of living has fallen most hardly on people with fixed incomes, because they have not been able to secure any corresponding rise in wages or of earnings of any kind. It is not surprising to learn that the Industrial Commissioners found that the case of these people was one of those which gave rise to most of the unrest and discontent among the working classes of the country. The Bill will not necessarily be retrospective. The right hon. Member for the City of London took exception to that. To make it apply only to cases of future accidents and future awards of compensation would not by any means serve the purpose in view, and I think the Bill is right in reopening lump sum settlements, already agreed to, because otherwise there would be a great inequality between two exactly similar cases, one of which has been perhaps recently settled for a lump sum and the other where weekly payments were still continued. It would surely be argued that the fact of a workman having agreed to a lump sum would cause him to forfeit any benefit under this Bill.
The only explanation of the last three lines upon page I is that if the employer commutes for a lump sum, he will not be allowed to commute this war allowance. That is the reason of these three lines.
If it does not apply to agreements made on the payment of lump sums, that may give rise to some question; but, of course, this is an agreed Bill, and I am sure that my right hon. Friend has secured us as favourable terms as he can from employers, and cannot, perhaps, modify what has been decided. I would like to ask him what will be the position under this Bill as between the insurance company and the employer? I gather that the liability will rest upon the employer who was originally liable to the compensation, and that he simply will have recourse to the insurance company for the sum. Secondly, there is the objection raised by the right hon. Member for the City of London that small employers who have had workpeople injured will find themselves liable for an increased payment that they had not contemplated. That may be a hardship upon some employers, but I do not see how that can very well be avoided. The State has increased the sum payable on account of the increased cost of living, and I think that it is right that industry should also be called upon to pay some of the increased cost of its pensions, and I am very glad to find that, unlike so many other Bills, this measure does not involve any cost to the Exchequer. I congratulate the Department on the success of the negotiations with the various interests concerned, and I hope that the House of Commons will speedily give this Bill its sanction.
I do not understand the last three lines of the Clause, and it is the only part of the Bill to which I attach serious importance. It seems to me that the Clause provides that where a settlement has been entered into an additional payment would have to be made. I understand from the Under-Secretary of State that is not so. To me it appears on the wording of the Bill that the employer will have to make an additional payment.
I am advised the real meaning is this. It will not deal with back cases which have been settled, but cases from now on, and the men or women receiving compensation will receive 25 per cent. increase. The employer may commute for a lump sum, but he will not be allowed by this Bill to commute the 25 per cent. increase. That will go on.
That is not what the Bill says.
That is not what the Bill says. May I ask the right hon. Gentleman if he will have that made clear?
I will, certainly. I am much obliged.
Question put, and agreed to.
Bill read a second time, and committed to a Committee of the Whole House for To-morrow.—[ Lord E. Talbot. ]
The remaining Orders were read, and postponed.
Whereupon Mr. SPEAKER, pursuant to the Order of the House of the 12th February, proposed the Question, "That this House do now adjourn."
Business of the House
May I ask the Parliamentary Secretary to the Treasury if he can tell us what business will be taken to-morrow, and whether there is any change in the other business during the week?
To-morrow we will take Supply as put down for to-day—that is, the Colonial Office Vote, the Army Medical Vote, and the National Service Vote, and we will go on with further stages of these Bills. There has been no change in the programme. On Wednesday, we shall take the Representation of the People Bill, and the Adjournment Motion on Thursday.
Do you expect to get as far with the Representation of the People Bill in one day as it was intended to go in two?
My right hon. Friend the Home Secretary thought two days would be sufficient to get to Clause 26. He has already had one of those two days and got as far as he expected, and I hope he will get as far as has been anticipated.
I suppose it is not intended that the House will sit on Friday?
Not if we get the Adjournment on Thursday.
Question put, and agreed to.
Adjourned accordingly at Twenty-seven minutes before Seven o'clock.