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Commons Chamber

Volume 132: debated on Wednesday 28 July 1920

House of Commons

Wednesday, July 28, 1920

Private Business

Gas and Water Provisional Orders Bill.

Ministry of Health Provisional Orders (No. 6) Bill.

Lords Amendments considered, and agreed to.

Aberdeen Corporation Order Confirmation Bill,

"to confirm a Provisional Order under The Private Legislation Procedure (Scotland) Act, 1899, relating to Aberdeen Corporation," presented by Mr. MUNRO; and ordered (under Section 7 of the Act) to be considered To-morrow.

East India (Income and Expenditure)

Address for Return of the Net Income and Expenditure of British India, under certain specified heads, for the three years from 1916–17 to 1918–19 (in continuation of Parliamentary Paper, No. Ill, of Session 1919).—[ Mr. Montagu. ]

Oral Answers to Questions

Mesopotamia

Occupation (Charges)

asked the Secretary of State for India whether any charges on account of the occupation of Mesopotamia are debited to Indian revenue?

Oil

asked the Prime Minister whether the recently-published Anglo-French agreement for the division of the oil of Mesopotamia will be in any way affected when an Arab State is set up in that country in accordance with the declared policy of His Majesty's Government?

Were the notables in Mesopotamia consulted when that agreement was drawn up?

The question referred to a Government to be set up. That Government has not yet been set up.

It also refers to the agreement. Were the notables in Mesopotamia consulted with regard to the disposal of their own oil?

Has this agreement been made without any reference to our policy in Mesopotamia?

Why cannot the hon. Gentleman answer my question, in view of the fact that he is paid to give the House information?

India

Disturbances (Convictions)

asked the Secretary of State for India whether he can state how many persons were convicted of murder or found guilty of waging war in India last year; what were the sentences passed upon them; and how many have since been amnestied or pardoned?

asked the Secretary of State for India what was the total number of persons convicted of waging war and other crimes during last year's rebellion; how many were pardoned; and in how many cases were the sentences remitted or reduced?

I will answer these two questions together. As I am anxious that the information given shall be accurate and up-to-date, I telegraphed an inquiry to the Government of India on receiving notice of question No. 2 last week. I have since added a further inquiry to cover the "other crimes" referred to by the hon. Member for Eastbourne. As soon as I receive the Government of India's reply I will supply the figures asked for.

Strikes (Military and Police Services)

asked the Secretary of State for India in how many cases this year the services of the military and police have been lent to proprietary companies in India in order to break strikes; in how many cases firing has occurred; and what was the total number of casualties resulting from police or military intervention in industrial disputes?

As I stated yesterday, in reply to the hon. Member for the Forest of Dean, fifty members of the Labour Corps were recently lent to the Madras Electric Supply Corporation to carry on work, in order to prevent hospitals and other public buildings being left without lights or electric fans. I have not heard of any other case of the kind, but the police and troops have had to intervene to preserve order on other occasions. I have received reports of three cases in which firing took place, with a total of 42 casualties, including between 9 and 11 deaths.

Is the right hon. Gentleman aware that these electrical workers in Madras were starved into submission after 53 days, and that while the troops were doing their work for them the employers refused to meet the men or discuss any terms whatever?

I am not aware of that, but I would rather resort to any measures than leave the hospitals and other public buildings without necessaries.

Why cannot the right hon. Gentleman coerce the employers of labour as well as black-legging the workers themselves?

Amritsar Disturbances

asked the Secretary of State for India if he will publish the communications by cable that passed between himself and the Government of India, and a statement of the changes that were consequently made in the drafts of the despatch from the Government of India, and his reply thereto, on the Report of Lord Hunter's Committee?

I have already said, in answer to a question on the 14th July, that I do not propose to publish this correspondence.

asked the Secretary of State for India whether the telegram sent by the Government of the Punjab to the Government of India on the 14th April, 1919, reporting that about 200 had been killed at Amritsar was transmitted to the Secretary of State; and whether he will state on what date the existence of this telegram and of the series of daily communications sent by the Government of the Punjab throughout the period" of the rebellion was made known to Parliament and the public?

The hon. and gallant Member will recollect that public communiqués on the disturbances in India were issued almost daily for over a fortnight from the 14th April, 1919. These were based on telegrams from the Government of India, which, as regards events in the Punjab, were, as was obvious, based on telegrams from the Punjab Government. The particular telegram of the 14th April from the Punjab Government to the Government of India was not transmitted textually to the India Office, but a summary of it was telegraphed.

I will read out the telegrams from India on this incident in the order in which I received them. The first to be received was dated 17th April, and received in London the same day. One paragraph in it ran:

Late at night on the 17th there arrived from the Government of India a long telegram, dated the 15th. containing reports from various places and including the following sentences:

When did the right hon. Gentleman first realise that the 200 casualties meant 200 killed?

The detailed facts with the full casualties were given by me in answer to the hon. and gallant Gentleman himself on the 28th May.

asked the Secretary of State for India whether he is aware that Kundaulal, of Gujerat, aged 10, whose photograph is published in the Report of the Congress Commission on the Amritsar riots, with the legend subscribed that he was sentenced to transportation for life for waging war against the King, was never so sentenced; and, if so, will he make that statement to the House, which, like the British public, may believe that such allegations may contain some substratum of truth?

Khalifat Agitation

asked the Secretary of State for India whether he has information to the effect that His Highness the Nizam has forbidden the promotion of any Khalifat agitation in Hyderabad and that the Hon. Ramanuja Achariyar, a prominent extremist leader in Madras, has publicly dissociated himself from the agitation, which is promoted from outside the Mahommedan community by a Hindu agitator, Mr. Gandhi, and has demanded that the people should give the Government, in the interests of law and order, all possible support?

The answer to the first part of the question is in the affirmative. As regards the second part, I have seen in the newspapers a report to the effect stated, but I have no official information.

Can the right hon. Gentleman say whether, owing to the recent reports in reference to Mr. Gandhi, any effective action is to be taken against this incendiary gentleman?

The Seditious Meetings Act has been proclaimed in various places to deal with the situation. I have not heard yet of any further action; but I am taking steps to ensure that I shall receive reports from the Government of India as to the action taken, and I will inform the hon. Gentleman.

Is not His Highness the Nizam, who has disapproved of this agitation in India, the most exalted Mahommedan in Indi?

I think the position of His Exalted Highness the Nizam is well known to the House.

Auxiliary Force Bill

asked the Secretary of State for India whether, considering that military training is compulsory in Australia on all male citizens between the ages of 12 and 26, he will now withdraw his prohibition of the Auxiliary Force Bill brought in by the Government of India?

The Bill to which my hon. and gallant Friend refers was a Bill to secure a defence force on a compulsory basis. That, I submit, is a different thing from a provision for compulsory military training. I have now authorised the Government of India to introduce in the Indian Legislative Council a' Bill for the formation of an auxiliary force on a voluntary basis.

May I ask whether the right hon. Gentleman will not introduce this Bill on a compulsory basis? If Australia can introduce a Bill on a compulsory basis, is there any reason why India should not?

I prefer to wait and see whether we cannot get a defence force on a voluntary basis first.

Is not the answer that Australia governs itself, and that India does not?

Martial Law (Manual)

asked the Secretary of State for India whether the Government of India is preparing a draft manual of martial law; and, if so, whether steps will be taken to ensure that the instructions contained in the manual do not conflict with the common law principle which, as stated in the manual of military law, declares that an unlawful assembly may be dispersed by force if necessary even though it has committed no act of violence.

asked the Secretary of State for India whether his attention has been drawn to the manual prepared for the guidance of officers administering martial law in South Africa and printed in Command Paper, 1,423, of 1903; and whether he will bring it to the notice of the Government of India to assist them in compiling a manual of martial law?

The answer to the first part is in the affirmative. As to the second, the action indicated was taken some time back.

Indian Representation (African Colonies)

asked the Secretary of State for India whether he has made, or will make, representations to the Colonial Office with regard to the importance of giving, not communal, but general representation, to certain Indians in the colonies of Kenia and Tanganyika both in municipal councils and colonial legislatures, in view of the extension of the franchise to Indians in India?

Royal Navy

Battle of Jutland

asked the First. Lord of the Admiralty whether he can now state when the official account of the Battle of Jutland will be published?

I am obliged to my noble and gallant Friend for postponing this question, and I regret that I am not yet in a position to add anything to the answer which I gave to a similar question on the 23rd June.

asked the First Lord of the Admiralty whether his Department is still engaged on a History of the Battle of Jutland; and, if so, will he state the probable date of its completion, the number engaged on its compilation, and the total of their salaries?

The compilation of the record of the Battle of Jutland has been entrusted to Captain John E. T. Harper, M.V.O., now Director of Navigation. He now receives no remuneration for this work, which is undertaken in addition to the ordinary duties of his office. No other official is employed for this duty.

Ships (Sale)

asked the First Lord of the Admiralty whether he will publish a list of the names of all ships of the Royal Navy which have been sold since the Armistice, and all ships which it is proposed to sell; if he will indicate which ships have been broken up subsequent to the sale; and will he indicate what has been done with all the ex-German ships awarded to Great Britain under the Peace Treaty?

I will circulate in the OFFICIAL REPORT a list of the ships which have already been sold. Surplus ships will be disposed of to the best advantage, having regard to market conditions and other factors. I cannot say how many will be sold. It is impracticable to ascertain the subsequent history of ships which have been disposed of. As regards the ex-German ships, these will be broken up under the supervision of an Inter-Allied Commission. The agreement between the Allies is that they should be rendered incapable of further service within a period of 18 months and completely broken up within five years from the date they are handed over.

The following is the List of ships sold :—

Battleships

Africa, Albemarle, Albion, Canada, Canopus, Duncan, Exmouth, Hannibal, Illustrious, Jupiter, London, Prince-of-Wales, Redoubtable, Swift-sure, Venerable.

Cruisers

Amphitrite, Argonaut, Cornwall, Duke of Edinburgh, Endymion, Kent, King Alfred, Lancaster, Leviathan, Minotaur.

Light Cruisers

Active, Adventure, Attentive, Blonde, Bonaventure, Challenger, Champion (old), Doris, Fox, Foresight, Isis, Juno, Mercury, Patrol, Pelorus, Proserpine, Pyramus, Skirmisher.

Monitors

M. 16, M. 18, M. 20, M. 24, M. 26, M. 32, M. 17, M. 19.

Flotilla Leaders

Botha, Broke, Faulknor.

Destroyers

Afridi, Albacore, Albatross, Amazon, Angler, Arab, Arun, Bat, Bonetta, Boyne, Brazen, Bullfinch, Chelmer, Cherwell, Colne, Conflict, Cossack, Crane, Crusader, Cygnet, Cynthia, Dee, Desperate, Doon, Dove, Electra, Ettrick, Exe, Fawn, Fervent, Flying Fish, Garry, Greyhound, Hope, Kangeroo Kennet, Leopard, Liffey, Locust, Mallard, Mermaid, Mohawk, Moy, Ness, Nith, Osprey, Ostrich, Ouse, Panther, Peterel, Porcupine, Quail, Racehorse, Radiant, Ranger, Rother, Saracen, Star, Stour, Sunfish, Surly, Swale, Sylvia, Test, Teviot, Thrasher, Ure, Vigilant, Viking, Violet, Virago, Vulture, Waveney, Wear, Welland, Whiting, Wizard, Zephyr, Zubian.

Torpedo Boats

59 vessels.

Submarines

A. 4, A. 6, A. 12, A. 10, B. 3 and C. 7, B. 4, B. 6 (Patrol Boat S. 6), B. 9 (Patrol Boat S. 9), B. 11 (Patrol Boat S. 11), B. 7 (Patrol Boat S. 7), C. 5, C. 6, C. 17, C. 12, C. 13, C. 19, C. 22, C. 36, C. 37, C. 38, E. 13, G. 1, G. 2, G. 11, G. 12, H. 41, L. 32 (hull only), L. 70 (hull only), 63 German Sub marines.

Sloops

Asphodel, Buttercup, Gladiolus, Jonquil, Hydrangea, Iris, Marigold, Minoru, Pansy, Peony, Pentstemon, Syringa, Zinnia.

Minesweepers and Patrol Vessels (Paddle)

Mona's Isle, Prince Edward (ex Prince of Wales), Queen Victoria, Red Gauntlet, Shirley, Vittoria.

Twin Screw Minesweepers

Fairfield.

Tunnel Minesweepers

Cotillion, Coverley, Hornpipe, Mazurka, Minuet, Morris Dance, Quadrille, Step Dance.

Patrol Boat

P. 57.

Patrol Gunboats

Kildonan, Kilbeggan, Kilberry, Kilbride, Kilburn, Kilchettan, Kilchreest, Kilclare, Kilclief, Kilclogher, Kilchyan, Kilchrennan, Kilcock, Kilbirnier Kildare, Kildary, Kildalkey, Kildangan, Kildorough, Kildorrey, Kildavin, Kildysart, Kildimo, Killiney, Kilfenora, Kilfullert, Kilham, Kilkeel, Kilmacolm, Kilmacrennan, Kilmaine, Kilgarwan, Killour, Kilgobnet, Killowen, Killena, Killybegs, Killygordon, Kildress, Kildwick, Kilfinny, Kilfree, Kilmanahan, Kilmarnock, Kilmarten, Kilmead, Kilmelford, Kilmersdon, Kilmington, Kilmore, Kilmuckridge, Kilmallock.

Shallow Draught Gunboats

Nightingale, Snipe.

Whalers

Arctic Whale, Balæna, Beluga, Bowhead, Pilotwhale, Charon, Echo, Prattler, Salamander, Styx, Ramma, Bullwhale, Cowwhale, Fin whale, Humpback, Rightwhale, Rorqual, Zedwhale.

Sloops (Old Type)

Algerine, Pembroke.

Gunboats (1st Class)

Antelope, Bramble, Britonmart, Halcyon, Harrier, Hebe, Pike, Skipjack, Gossamer, Spanker, Speedwell, Leda.

Gunboats (3rd Class)

Blazer, Drudge (late Dryad), Kite, Slaney.

Aircraft Carriers

Canning, City of Oxford, Manxman, Vindex.

Repair Ships

Reliance, Scotstoun.

Surveying Vessel

Sealark.

Coast Guard Cruisers

Argon, Watchful.

Trawlers (Mersey Type)

Alexander McBeth, Benjamin Hawkins, Daniel McPherson, Daniel Munro, Dogarra Lerosa, Edward Druce, Edward McGuire, Henry March, James Adams, James Hayes, James Hulbert, James Long, James Mansell, James McDonald, James McLaughlin, Jeremiah Lewis, John Cottrell, John Ebbs, John Highland, John Mann, Jonathan Clarke, Jonathan Collins, Langdon McKennan, Lewis McKenzie, Michael McDonald, Nicholas Couteur, Peter Hoffman, Peter Magee, Robert Finlay, Saint Germain, Samuel Martin, Simeon Moon, Thomas Cruize, Thomas Maloney, Thomas Matthews, William Forbes, Patrick Mitchell.

Trawlers (Castle Type)

Alexander Scott, Andrew Apsley, Charles Boyes, Charles Donelly, Daniel Clowden, Daniel Henley, David Dillon, David Ogilvie, Denis Casey, Dominick Addison, Dominick Dubine, Edward Cattelly, Edward Gallagher, Egilias Akerman, Festing Grindall, Francis Conlin, George Aggell, George Aiken, George Cochran, George Cousins, George Greaves, George Harris, Giovanni Guinti, Griffith Griffith, Henry Cory, Isaac Heath, James Burgess, James Gill, James Christopher, James Cosgrove, James Hunniford, James Lay, James Sibbald, John Aikenhead, John Ashley, John Baptish, John Burlingham, John Casewell, John Catling, John Church, John Collins, John Gauntlott, John Gillman, John Gregory, John Gullipster, John Kidd, John Pollard, Joseph Barratt, Joseph Button, Joseph Hodgkins, Joshua Arabin, Matthew Cassady, Morgan Jones, Patrick Cullen, Peter Carey, Peter Killen, Philip Godby, Phineas Beard, Richard Crofts, Richard Gundy, Richard Roberts, Robert Betson, Robert Bowen, Samuel Green, Thomas Adney, Thomas Altoft, Thomas Bartlett, Thomas Booth, Thomas Croften, Thomas Connolly, Thomas Green, Thomas Hankins, Thomas Laundry, Thomas Leeds, Thomas Robins, Timothy Crawley, William Beatty, William Bell, William Brady, William Caldwell, William Carberry, William Carrick, William Chaseman, William Cobourne, William Darnold, William Drake, William Fleming, William Griffiths, William Hannam, William Knight, William" Lambkin, William Leek, William Mannell.

Trawlers (Stath Type)

Aaron Hubert, Arthur Herwin, Brazil Brasby, Charles Blight, Charles Carrell, Daniel Dizmont, Daniel Hillier, David Buchan, David Conn, George Borthwick, George Castle, George Clines, George French, George Hodges, George Lane, Henry Butcher, Henry Colby, Henry Harding, Isaac Dobson, Isaac Harris, James Bashford, James Brodigan, James Feagan, James Fennell (Wreck), James Garrick, James Hines, John Bradford, John Buller, John Cope, John Corwarder, John Britton, John Fairman, John Fisser, John Gray, John Edsworth, John Kennedy, John Kentall, John Langshaw, John Heath, Jonathan Bazino, Jonathan Greig, Joseph Burgin, John Moss, Lawrence Hughson, Matthew Hartley, Michael Brion, Joshua Budgett, Peter Barrington, Richard Bowden, Richard Heaver, Patrick Borrow, Samuel Barkas, Samuel Hampton, Steven Kenny, Robert Farecloth, Thomas Bird, Thomas Cowell, Thomas Currell, Thomas Billincole, Thomas Foley, Timothy Brannan, William Barlow, Thomas Dennison, William Beaumont, William Bentley, William Bond, William Barnett, William Butler, William Chalmers, William Fall, William Browning, William Harvey.

Trawlers (Miscellaneous)

Achernar, Adele (late Kingfisher), Algenib, Algol, Altair II, Bombardier, Bugler, Cabalsin, Arcturus II, Caersin, Cambrisin, Campsin, Cachosin, Carbineer II (late Fusilier), Censin, Glassin, Chirsin, Churchsin, Clarasin, Cooksin, Clearsin, Clonsin, Coalaxe, Cromsin, Coomasin, Corinsin, Corvi, Drummer (late Dragoon), Crucis, Cudwosin, Cygni, Filey, Firmaxe, Greataxe, Gunner, Josephine I (late Sparrow), Kilda (late Janus), Nunthorpe Hall (late Seamew), Silveraxe, Sureaxe, Searover (late Seaflower).

Canadian Trawlers

T.R. 45, T.R. 50

Drifters (Steel)

Blare, Blue Haze, Bow Wave, Breaker, Catspaw (wreck), Eliphanta, Fume, Galaxy, Gale, Gloss, Northern Lights, Pampero, Phosphorus, Thunderclap, Typhoon, Waterfall, Watersmeet, Wavelet.

Drifters (Wood)

Doldrum, Hurricane, Mistral, Reverberation, Scud, Setweather, Spate, Surge, Tiderip, Vapour.

Miscellaneous

Monaliadh.

Canadian Drifters

CD. 30, C.D. 35, C.D. 45, C.D. 46, C.D. 47, C.D. 50, C.D. 59, C.D. 89, C.D. 90, C.D. 92.

Motor Launches (M.L. Type)

433 Vessels.

Coastal Motor Boats

2 Vessels.

Oilers

Aspenleaf (late Tyrolia), Bayleaf (late Covic), Blackstone, Cranella (late Montcalm), Ferrol, Innisjura, Innisulva, Maple Leaf (late Mount Royal), Oakol, Palmol, Sprucol, Toakol, Vine Lead (late Patrician).

Tank Vessel

Drudge (late Ready).

Particular Service Vessels

Arvonian, Bouncer, Firebrand, Fire-queen, Huayna, Island Queen, M. J. Hedley, Sphinx, Seahorse, Magnate, Traveller.

Tugs

Racia, Alligator, Friday (H.S. 74), J. O. Gravol, St. Dominic, West Ling, West Well, A.S. 142, Poet Langland, Handy, St. Heliers, Blazer, George, M. Moran (H.S. 42), Seadog, West Mill, A.S. 74, A.S. 158, Zarro, Julia D. Moran, Acor (H.S. 69), Craig (A.S. 306) Grinder, Polly, Stoic, West Port, A.S. 48, 14 Sumana Tugs (T. 20, 22, 23, 24, 36, 68, 69, 71, 73, 75, 76, 77, 80, 83), Crusoe (H.S. 70), Lord Beresford (H.S. 71), Aid, Edith (ex I.W.T.), Hotspur (late Wrestler), St. Columb, Vigilant, West Meon, T.T. 6, Esk.

Salvage Vessels

Bilbrough, Corycia, Molita, Ringdove, Wrangler.

Boom Defence and Barrage Vessels

Cordova, Magda.

Yachts

Aerolite, Claymore II, Coralino, Drama, Iris, Ivy, Madrigal, Mairi, Mora, Narana, Olivia, Otter, Priscilla, Ranger.

Harbour Service Vessels, Hulks, Stationary School Ships, Etc

Arctic, City of Oporto, Clio (Training Ship), Columbine (late Sloop), Cruiser, Falcon, Ready, Rigger, Spook, C. 470 (late Shah), Wallaroo, C. 116 (Coal Hulk).

Motor Lighters

38 Vessels.

Dredger

Bruxelles.

Barges and Lighters

119 Vessels.

Steam Boats

4 Vessels.

Motor Boats

16 Vessels.

Yard Craft (Miscellaneous)

5 Vessels.

Floating Dock

Ellesmere Port.

Miscellaneous Vessels

Annandale, Acquarius, Aro, Brighton, Deveney, Dhow (Schooner), Elpinikir Glengoil, Glenmore, Gothland, Hubbock, Impey (ex Imogene aux Schooner), Old Colony, Pebble, ss. Princess Mary II., Princess May, Sobo, Sokoto, Teneriffe, No. 966, Krini.

Cadets

asked the First Lord of the Admiralty if he is now in a position to say whether, in considering the withdrawal of cadets under training at Osborne and Dartmouth, he will give special consideration to the sons of officers who have rendered long and distinguished service in the Royal Navy?

The Board of Admiralty feel that there are two classes of naval cadets whose cases are deserving of special treatment, firstly, King's cadets, who under the conditions of their entry must be the sons of naval, military, or air force officers who have lost their lives on active service; and, secondly, cadets who are the sons of naval or marine officers who have served afloat during the War. It has therefore been decided that these two classes of cadets are not to be subject to compulsory withdrawal at the end of their Dartmouth course under the special reduction scheme, but they will be allowed to pass out, irrespective of their place in the passing-out examination, and will then have exactly the same opportunity of staying on in the Navy as they would have had under normal conditions. The number of cadets affected is small, and will make no appreciable difference in the numbers retained. In cases where a cadet has already been withdrawn, the parent or guardian is being given an opportunity of reconsidering his decision.

Welfare Committee (Admiralty Decisions)

asked the First Lord of the Admiralty whether it will be possible to grant a Return showing the submissions of the first Welfare Committee, together with the Admiralty decision thereon; has this information yet been promulgated to the Fleet, and, if not, by what date will it be published; has the second Welfare Committee yet commenced its sittings, and is it probable that they will wish to make fresh submissions with regard to some of the points already raised; and, if so, will they be allowed to do so?

As stated in reply to a question on 10th March last, the requests received through the Welfare Committee and the decisions thereon will not be published as a Parliamentary Paper, but they will be issued as a Fleet Order and will "be available in the ordinary course for the Press. The Fleet Order will be issued next week. The second Welfare Committee has not yet met, but the preliminary Inter-port Conference has met at Devonport, and has been provided with an advance copy of the requests and decisions. It has also been arranged for representatives of the Conference to attend at the Admiralty to-morrow to receive further information as to the deci- sions where necessary. The Conference will be allowed to make fresh submissions with regard to points already raised if they wish to do so. As statements have appeared in the Press to the effect that practically none of the request put forward have been granted, I may perhaps be allowed to add that 307 separate requests, great and small, were put forward, and that of these 94 have been granted in whole or in part, 93 are still under consideration and final decisions will be given later, and 120 have not been granted; but these numbers include 36 class requests not recommended by the advisory ratings attached to the Committee.

Are we correct in understanding from that statement that the statements that have appeared in the Press that only two requests have been granted are absolutely without foundation?

Certainly. It is in order to enable the facts to be known that I thought it right to give the figures which I have quoted.

Mines

asked the First Lord of the Admiralty whether a large number of H2 and L mines are being retained and stored at Grangemouth and elsewhere, although the sinkers of these mines, with out which they are useless, have been sold; and what is the object of the Government in thus retaining these mines, which might otherwise be converted to useful purposes?

The appropriate reserve of mines to be retained has been very carefully considered. No mines are being retained for which there are not suitable sinkers.

Officers (Married Allowance)

asked the Secretary to the Admiralty if he can make any statement as to the married allowance to naval officers; if he is aware that the naval officer is the only officer or man of the three Services who does not receive this allowance; and if he can give the reason?

I am aware that such allowances are granted to officers of the Army and the Royal Air Force, and also to men of the three Fighting Forces. The advisability of granting such an allowance to naval officers was considered by the Officers' Pay Committee last year, and not recommended, it being deemed' preferable to make adequate provision for them in the matter of pay.

Russia

Crimea (British Ships)

asked the First Lord of the Admiralty whether any of His Majesty's ships of war, colliers, or store-ships, or hired vessels serving His Majesty's ships, are at any of the ports or harbours of the Crimea; if so, what purpose are they serving; whether any of His Majesty's ships are in other ports in South Russia; what purpose they are serving; and when they will be withdrawn?

There are at present ships of His Majesty's Navy in the Crimea for the protection of British interests. There are none of His Majesty's ships in other South Russian ports, and the last two parts of the question do not, therefore, arise.

Are there any British subjects there to protect, and is the right hon. Gentleman aware that the Lord Privy Seal yesterday said that we were not taking any responsibility for events in that part of the world, or for General Wrangel?

I did not say there were British subjects. I said there were British interests. With regard to the latter part of the hon. and gallant Gentleman's question, I do not think that arises here at all.

Does not the right hon. Gentleman see that the presence of these ships gives a moral backing to General Wrangel, for whom the gist of the Government have disclaimed responsibility?

I do not think that in answer to a question I am prepared to discuss what "moral backing to General Wrangel" means. We have told General Wrangel that we are not giving him any assistance in the campaign he is conducting, and the action of the British Admiralty is in strict conformity with our pledges in this matter.

Warship (Kiel Canal)

asked the First Lord of the Admiralty whether a Russian warship attempted to enter the Kiel Canal recently on its way to join General Wrangel; what happened to this vessel; who is in charge of her; whether there are any warships in being in the Black Sea manned by partisans of General Wrangel; and whether we are supplying them with coal, stores, or munitions?

I have no information concerning the movements of the warship in question beyond what has appeared in the newspapers. The ship, which is in charge of anti-Bolshevik Russian officers, is believed to be at Cherbourg. With regard to the last two parts of the question, General Wrangel has control of certain Russian men-of-war at Sevastopol, but no coal, stores, or munitions are being supplied to them by us.

How is it that with the right hon. Gentleman's much larger naval intelligence staff than before the War he is unable to give the name and whereabouts of a foreign man-of-war?

I think the answer to that is, that even with the naval intelligence staff that we have, which is as good as it possibly can be, I do not know that it is part of our duty to give this information to the hon. and gallant Gentleman. And, if he will forgive me for saying so, he appears to regard the Board of Admiralty as solely created to keep him informed on every conceivable subject.

Cannot the right hon. Gentleman tell us straight that he does not wish to give the information and—[HON. MEMBERS: "Order," and "Sit down."]

British Naval Prisoners (Baku)

asked the First Lord of the Admiralty whether he is now in a position to give any in- formation with regard to the following naval ratings at Devonport taken prisoners at Baku:—R. C. Aspell, leading seaman; J. W. Banks, blacksmith, fourth class; J. A. Greenway, signalman; W. H. Grundy, engine-room artificer, third class; M. Hine, leading telegraphist; F. C. Prout, second sick-berth steward; A. Roche, armourer; and W. T. Ware, leading seaman?

These ratings are included among the naval prisoners at Baku. I fear I can add nothing to the statement made yesterday by my right hon. Friend the Leader of the House.

New Republics

asked the Prime Minister whether he will give, apart from the Communist Government at present established at Moscow, the various Republics into which the former Russian Empire is now divided; and how many of these Republics are recognised by the Allied Governments and have had their ethnographical boundaries determined?

In reply to the first part of the hon. and gallant Member's question, the following independent Republics have been formed out of the former Russian Empire: — de jure recognition. The remainder have received de facto recognition, with the exception of the Ukraine, Crimean, Verkhnie Udinsk, and Vladivostok Governments. As regards the third part of the question, the ethnographical boundaries of Poland have been provisionally determined by the Supreme Council, but the details of the frontiers of the other countries still form the subject of negotiations between their Governments.

If we have recognised the Azerbaijan Government de facto, why did we not apply to that Government for the release of our prisoners?

General Wrangel

49 and 52.

asked the Prime Minister (1) whether he is aware of the determination of the majority in this country, apart from our Allies, that the Government shall only enter into negotiations with the Communist Government of Moscow on the understanding that no State or portion of the former Russian empire shall be forced under a Communist form of government, and that General Baron Wrangel or his nominees shall attend any such conference on equal terms and the safety of himself and his people meanwhile held secure;

(2) whether the unconditional surrender of General Wrangel with a promise of personal safety has been put forward as one of the demands of the Communist Government of Moscow before entering into any negotiations with our Government; and has the Government been able to reply that it does not propose to allow the bourgeoisie of the Crimea or any part of Russia to be placed at the mercy of its Communist opponents as a precedent to a commencement of negotiations by this country?

I cannot at present add anything to what has already been said on this subject.

During the whole of the negotiations with the Soviet Government that has been our policy without exception, and my hon. Friend may draw his own conclusions from that.

Turkey

Greek Operations (British Naval Assistance)

asked the number of British warships assisting the Greeks in their operations in Thrace; and whether they are under British or Greek control?

Three battleships, four destroyers, and a seaplane carrier, were present and assisted at the Greek landing in Thrace on the morning of the 20th July. They are directly under the command of the British admiral.

Questions

Mercantile Marine (Wireless Telegraphic System)

asked the First Lord of the Admiralty whether the whole of the wireless telegraphic system of the mercantile marine is in the hands of the Marconi Company as to its operators and instruments?

My right hon. Friend has asked me to answer this question. The bulk of the wireless system of the mercantile marine is in the hands of the Marconi Company, but not the whole, whether as to operators or instruments.

Transport

Railway Fares (Increase)

Government Decision

Statement by Mr. Bonar Law

asked the Prime Minister if the Government has come to a decision on the Report of the Advisory Committee on Railway Fares what that decision is; and will the House be given the opportunity of discussing the matter before the Report is put into effect?

asked the Prime Minister what is the decision of the Government on the Report of the Advisory Committee respecting the increase of railway fares; can he state from what date such increases will come into force; and will he state if ordinary return tickets issued before the date that any increase becomes effective will be allowed to be used without any surcharge?

asked the Lord Privy Seal whether, in view of the proposals made for increasing railway fares, the Government will consider the possibility of immediately re-establishing tourist and week-end tickets at existing fares, in order to avoid personal hardship to the large number of people who are compelled to take their holidays in August and September because schools and other official holidays fall after July?

The Government have given their very earnest consideration to the Report of the Rates Advisory Committee—which Committee I would remind the House was specially set up by Act of Parliament as a representative body, with an independent judicial Chairman, and with three out of five of its members representative of trade, agriculture and labour, for the purpose of giving advice to the Government and for "safeguarding any interests affected" by directions which the Government may give as to the rates, fares and charges; also to consider the fairness and adequacy of the methods proposed to be adopted.

This Committee has held public inquiry and has made its recommendations. The Government, in accordance with the Statute, notified the Committee on the 8th July that the railways were working at an estimated deficit at the rate of £54,500,000 a year. This deficit could not have been estimated earlier as it was largely due to the conclusion of the National Wages Board set up to consider the claims of the men, which reported on the 3rd June, and other large increases—due to the price of coal, and increases of allowances under the sliding scale as the cost of living rose—which materialised between the 1st April and the 1st July as well as the continued increase in the cost of other materials and in local rates.

There was no possibility of estimating in advance the amount of the increased costs under those heads, and therefore it was impossible to have adopted the only course open to us and make a reference to the Rates Advisory Committee under the terms of the Act at an earlier date.

In reply to questions in this House on the 3rd, 7th, 14th, 21st and 28th of June, the Minister of Transport and I gave the clearest possible intimation that the increased costs under these heads would have to be placed upon the railway fares, rates and charges at the earliest possible moment, the only alternative being a State subsidy at the expense of the general taxation.

The railways, like every other industry in this country and in all other countries, have had to meet large increases in the cost of labour and materials. The pay bill of the railway companies in Great Britain has risen from £47,000,000 to £161,000,000, well over three times their pre-War figure. Coal and all other engineering works are costing about three times their pre-War figure; steel rails and pig iron, four times, while the cost of living and every other index one can apply has risen out of all proportion to the proposed increase in rates.

It was in the face of these increases that the Cabinet had to consider whether there was any good and sufficient reason for declining to act on the advice given to them by the Committee, which has recommended that ordinary tickets should be increased by one-sixth above the present rates, equal to 75 per cent. above their pre-War figure; that a new scale, much less than half the ordinary fares should be applied for the carriage of travellers to their work in the early morning who return after 5 o'clock in the evening; that season tickets should be put on the level of 50 per cent. above their pre-War figure and that traders' tickets, which they consider unduly low, should be granted at 20 per cent. less than the ordinary season ticket.

These recommendations the Government has decided to adopt, with effect from and including the 6th August, as recommended by the Committee, with the following reservation as regards workmen's tickets— which the Committee point out is a misnomer, as the special arrangement has applied to all third class travellers by those trains irrespective of occupation—"These so-called workmen's fares are at present on their pre-War level, and. the Government accept in principle the view of the Committee that these fares must be adequately raised.

In view, however, of the great divergence in the basis of the present fares and of the fact that the adoption of a uniform basis for the future may cause undue hardship in particular cases, further detailed consideration is necessary. The recommendations of the Committee will involve examination of individual fares, and it is not practicable to introduce the new cheap early train fares during the month of August, but it is the decision of the Government that increased fares for this traffic will be brought into operation as from the 1st September, and further notification will be made in due course.

The recommendations in regard to Ireland have also been considered, and the increased charges will come into force on the same dates as in Great Britain. The increases recommended in ordinary, season and traders' tickets are higher than is the case in Great Britain and as explained in the Report, this is due to the fact that the deficiency in Ireland is relatively larger than in Great Britain."

To summarise, the increases proposed are extraordinarily moderate compared to the increase in every other relevant cost. The reference to the Advisory Committee could not have been made earlier, because the principal items in expenditure were only known in June. The most clear intimation was given, immediately these items were known, that fares and charges would have to go up, and no delay took place in referring the matter to the Statutory Body appointed for the purpose. To have applied the increase of fares after the holiday months would have entailed a very much larger increase—as it would have shortened the period over which the deficit could have been made good, and would therefore have placed a very much heavier burden upon the passengers for the rest of the year.

The only alternative, therefore, to putting up fares and charges immediately is for the taxpayer to assume the burden, and that was an alternative which the Government felt obliged to reject.

Owing to the unsatisfactory nature of the reply, I beg to give notice that I shall ask leave to move the Adjournment of the House, in order to call attention to this as a matter of definite and urgent public importance.

I should like to ask whether the £54,000,000 deficit mentioned by the right hon. Gentleman is the deficit for this year, or whether it takes into account the differences now existing between the Ministry and the railway companies on the question of deferred maintenance, and how much out of the £54,000,000 in this year that includes; also, whether the three-times increase in the Wage Bill is explained by the fact that there are to-day 100,000 more employés than there were in 1914?

As regards the first part of the inquiry, it has nothing whatever to do with the question. The question of what we will get back from the railways comes into account as to the amount payable in fulfilment of the old agreement, and has nothing to do with this deficit. It is the case, as the right hon. Gentleman has pointed out, that the large increase in the Wage Bill is not entirely due to higher wages, but in part to the larger number of employés, brought about, undoubtedly, by shorter hours.

May I ask for a reply to the latter part of the question of the hon. Member for South Islington (Mr. Higham), which the right hon. Gentleman has left entirely unanswered? When will the House have an opportunity of discussing this matter? I press that because of the argumentative nature of the reply.

I do not think it was an argumentative reply. It was, at all events, what I believe to be a statement of the facts. I can give no promise, so far as the Government is concerned, of affording an opportunity for discussion.

Why does not the right hon. Gentleman give 15 days' notice to the holiday-makers and the ordinary passengers, seeing that he has given it to traders?

I gave much more than 15 days' notice, for I stated on the 3rd June that increased rates would be put into force as soon as we had decided on the amount.

Is it not the fact that under this new arrangement every other class of passenger traffic is to pay the new rates imposed on 6th August and workmen's tickets only are to have another month to run?

It is not merely the workmen. I made it quite plain in the notice issued there was no favour to that class. It is due to the fact that an examination is required which is not practicable at present.

Will the right hon. Gentleman reply to the latter part of my question, i.e. , if ordinary return tickets issued before the date that any increase becomes effective will be allowed to be used without any surcharge?

I have answered that many times. They will be available during the ordinary period to which they apply.

At the end of Questions—

I understand that by arrangement it is agreeable to take my Motion for the Adjournment of the House on the question of railway fares to-morrow.

Railway Workers (Privileged Tickets)

asked the Minister of Labour if his attention has been called to an official statement to the effect that the travelling privileges granted to railway employés have always been taken into account when railwaymen's wages were being fixed; whether the record of the negotiations that have taken place from time to time with regard to railway workers' wages bears out this statement; whether in any of such negotiations the companies' representatives submitted any estimate of the value of such privileges; and, if so, will he give particulars of such valuation?

I have been asked to answer this question. The travelling privileges enjoyed, by railway employés have been borne in mind in discussing railwaymen's wages, but it is not possible to give any definite figures as to the monetary value of such privileges as cheap tickets, free passes, etc., owing to the variety of circumstances which arise. Travelling privileges have been granted to railwaymen for many years, and, as pointed out in replies given by me on the subject on the 21st July, they are maintained by Section 7 of the Ministry of Transport Act, 1919.

Are these privileges taken into consideration in fixing the rates of wages?

I am informed that they have always been taken into consideration, but that the railway companies have declined to regard them as conditions of service. My information is that they have frequently been discussed when wages and conditions of service were under consideration.

If they have always been taken into consideration in fixing the rates of wages, can the hon. Gentleman tell me what value has been placed upon these privileges; if not how is it possible to take them into consideration?

The fact that they are in existence has always been considered, but it has never been found possible to place an actual value on them.

May I ask whether it is true that these privileges have been submitted to the various arbitrators with the result that no railwayman enjoys the same district rates as a fellow employé doing the same work in private industry, and that the difference in these rates is the estimate and the value of the privileges?

I am not able to answer that question quite specifically; but it is the fact that these questions are not lost sight of in railway labour when questions of the sort are being discussed.

In view of the deep interest that is taken in questions of labour at the present time, may I ask my hon. Friend, if I put a question later, whether he will consult all the officials and give a statement as to the value placed upon these privileges?

I have already consulted every available source of information— that, I have no doubt, the hon. Gentleman will take from me. I have seen an estimate—a very vague one—by one railway company, which they were not prepared to vouch for as in any sense accurate, which put the value of this privilege at Is. 6d. per week. But it is impossible to ascertain exactly what is the value.

If that be an approximate estimate, is the hon. Gentleman aware that the difference in the railway district rate and the ordinary district rate for the same class of employés doing precisely the same work is at least a minimum of 4s. each?

No, I am not aware of that. I should like to have notice of questions of that sort.

Questions

Stoneham Board of Guardians

asked the Minister of Health if he is aware that the South Stoneham Board of Guardians is now paying to its employés the same salaries and wages as in July, 1914, except for increases of 2s. 6d. a week in certain cases, and that the board has repeatedly refused either to grant any war bonuses to its employés or to refer this difference to arbitration; and whether he is prepared to take any action in the matter?

I am aware that this board of guardians is refusing to grant the war bonuses requested by its employés, or to refer the question to arbitration. I have urged the guardians, in default of agreement, to submit the case to arbitration, and I much regret that I have no power to take any further action.

Will the right hon. Gentleman ask this House to give him powers to deal with recalcitrant boards of guardians?

As a rule hon. Members complain of the autocratic power of Government Departments.

Dentists Act, 1878 (Departmental Committee)

asked the Minister of Health when it is proposed to introduce legislation for the purpose of carrying out the recommendations of the Departmental Committee on the Dentists Act, 1878?

Is the right hon. Gentleman aware that the introduction of legislation on this subject was promised before the Whitsuntide Recess, and can he say definitely if it will be introduced before the Recess?

Housing

Normanton Urban District Council

asked the Minister of Health whether his atten- tion has been drawn to the application of the Normanton urban district council to borrow the sum of £550 for the purchase of land for housing purposes; whether he is aware that the council first made application for this loan on the 9th September, 1919; that the Ministry have sanctioned the borrowing of money for the erection of 126 houses on this site; and whether, in view of the fact that the vendor of this land threatens to rescind the contract for purchase, he will have immediate inquiries made into this matter?

The land in question comprises about 5 acres, which it is proposed to acquire as an extension to a site of approximately 17 acres, on which the 126 houses referred to are to be built. The application for sanction to a loan was made before the site had been submitted to my Department for approval for housing purposes; full information has only recently been furnished to the Ministry, and I am advised that the risk of subsidence of this particular area is serious, and that without a right of support the site is not worth the price asked for it.

Acton Scheme

asked the Minister of Health whether he can give any particulars of the arbitrators' award in connection with the Acton urban district council's housing scheme; and whether the price claimed by the owner was reduced by £25,000 by the arbitrators?

asked the Minister of Health whether he can give any particulars of the arbitrators' award in connection with the Acton urban district council's housing scheme; and whether the price claimed by the owner was reduced by £25,000 by the arbitrators?

asked the Minister of Health whether the award of the arbitrators has been given respecting the price of the land for the housing schemes of the Acton urban district council; and, if so, whether he will say if the land lord's price was reduced by £25,000 by the arbitrators.

The site in question consists of approximately 59 acres of land formerly used as a golf club. The claim made by the owners amounted to £58,854, and the district council contended that the value of the land was £33,000. The arbitrator awarded £33,000 and ordered the claimant to pay the costs of the acquiring authority.

Does the right hon. Gentleman suggest that the saving of £25,000 is due to the existence of the Land Valuation Department?

Certainly to the land valuation officers attached to the Ministry of Health.

Yes, it is due to the expert gentleman using the Acts which have been passed.

Questions

Old Age Pensions

asked the Minister of Health if Old Age Pensions are paid pending the appeal for a higher sum by the applicant?

An Old Age Pension is paid to an existing pensioner at the current rate pending the decision on his appeal for a higher sum; but a pension cannot be paid on a new claim until the right to a pension has been finally decided.

Syria

Southern Boundary

asked the Prime Minister what is considered to be the southern boundary of the area under the French mandate in those parts of Syria which lie to the east of the River Jordan?

Emir Feisal and Mustapha Kemal

asked the Prime Minister whether he has any information to the effect that an offensive and defensive alliance has been concluded between the Emir Feisal and Mustapha Kemal, or whether there are any signs of definite military co-operation between the two?

Damascus

asked the Prime Minister whether he can give any information regarding the progress of events in Syria, and particularly in the city of Damascus?

The narrative of events at Damascus is somewhat obscure, but the salient features appear to be as follows. The French ultimatum which was due to expire on the 20th was accepted by the Emir Feisal although his reply owing to some accident did not reach the French Commander until the advance of the latter had already begun. Upon its receipt the French informed the Emir Feisal that, unless attacked they would not occupy Damascus and an armistice was then concluded. Unfortunately at this stage an attack was delivered by the Arabs upon the French at Tel Kallah; a battle ensued in which Feisal's War Minister was killed and the Arabs sustained a severe defeat; and on 25th July the French occupied Damascus without further opposition.

The situation in the town is reported to be quiet, but we have no definite information as to whether the Emir Feisal is there or not.

Is the British liaison officer formerly with the Arab Government in Damascus still there, and are we in direct communication with him?

Questions

Palestine

asked the Prime Minister how far and in what places the administrative authority of the Government of Palestine extends to the east of the River Jordan?

The administrative authority of the Government of Palestine does not extend to the east of the River Jordan.

Will the eastern boundary of Palestine in future be the River Jordan?

Peace Treaties

British Property (Germany)

asked the Lord Privy Seal if the German Government has complied with Clause 13 of the Annex to Article 297 of the Peace Treaty as to the delivery of accounts, vouchers, and other information within German territory which may concern the nationals of the Allies who are parties to the Treaty; and, if not, will he state what action the Government have taken to enforce the carrying out of this provision?

At the request of the German Government, it is proposed to permit delivery of the detailed accounts to be made at the time when the property to which they relate is returned to its British owners. This course, which has also been adopted by France, has appeared desirable in the interest of the British owner and of the due fulfilment of the obligations of the German Government under paragraph 8 of the Annex referred to.

Does the hon. Gentleman recognise the fact that many British subjects who had houses in Germany have asked the German Government for this information, and that the German Government have so far declined to give it; and will he take steps through the proper channels to see that British sub- jects asking for information as laid down in the Peace Treaty shall certainly receive it?

We began to communicate with the German Government on the 1st March. The agreement we hope to arrive at is the same one as between them and the French.

Questions

Merchandise Marks

asked the Lord Privy Seal whether, having regard to the importance to British trade of the points contained in the Report of the Merchandise Marks Committee, he can state whether the Government intends to deal with the recommendations of the Committee during the present Session of Parliament?

I have been asked to answer this question. I hope it may be possible soon after the Recess to introduce a Bill, based on the recommendations of the Committee.

Poor Law Officers, Hailsham

asked the Minister of Health if he is aware of the unrest existing among the Poor Law officers of the Hailsham (Sussex) union; and if he will take steps to see that the question of their war bonuses is referred to arbitration.

I am aware that these Guardians have declined a request of their staff for the grant of war bonus, and I have pressed them to refer the issue to arbitration. I am afraid I can take no further action.

Ireland

Jurors (Fines)

asked the Chief Secretary for Ireland whether, at the Galway assizes, held on 19th July, jurymen were held up by men with revolvers on roads approaching the Court and sent home; whether only 13 out of 200 special jurors and 21 out of 250 common jurors answered their names, and cases down for trial could not be taken; whether all absent jurymen were fined; and whether, in view of the failure of the Government to afford protection to these jurymen, these fines will now be remitted?

The figures quoted are correct, but it is not true that jurymen were held up in the town or vicinity of the Court. It is alleged that they were held up in the road from Athenry to Galway. As regards the remission of fines inflicted, I would refer my hon. and gallant Friend to my reply to the question of the hon. and gallant Member for the Fylde Division of Lancaster (Colonel Ashley) on the 14th instant in a similar, case.

Is the right hon. Gentleman aware that those jurors who were fined have received notice from the competent military authority of the Irish Republic commanding them not to pay their fines, and threatening those who disobey? Is there any assurance that the Government-will be able to protect these unfortunate men if they do pay their fines?

Of course, the Government will do its best to protect men and to save them from being blackmailed by anybody.

Questions

West African Field Force

asked the Under-Secretary of State for the Colonies if he will state why the period of service of an officer or non-commissioned officer in the West African Field Force is disallowed for civil pension from colonial funds; and whether these officers were assured on their joining up that they would lose neither seniority nor pension, or in any other way lose in consequence of their doing so?

An Army officer or noncommissioned officer who is seconded temporarily for service in the West African Frontier Force, and who is after wards appointed to a civil pensionable post in West Africa, is not entitled to reckon his West African Frontier Force service as pensionable service in comput- ing the amount of his civil pension, as such service is purely military and not civil. But a pensionable civil official in a West African Colony who, during the War, was seconded from his civil post and attached to the West African Frontier Force, can reckon his service with the force as pensionable service in computing the amount of his civil pension.

Ex-German Colonies (Africa)

asked the Under-Secretary of State for the Colonies whether he will issue as a Blue Book reports on our administration of those portions of ex-German East Africa, Togoland, and Cameroons in which we have been in possession since our military occupation, giving an account of the revenue, expenditure, administration, public health, commerce, settlement, land policy, etc., in each area to date?

As regards ex-German East Africa, an annual report on the lines of those published for Colonies will be issued in due course. In the case of Togoland and the Cameroons the final settlement of the boundary between the British and French zones has been too recent to admit of any reports being prepared which could be usefully issued as a Blue Book. Instructions are being sent to the local authorities that, when the new administrative arrangements have been in force a few months, they should furnish suitable reports for presentation to Parliament.

Will the hon. and gallant Gentleman inform me when we are likely to have the first report on Tanganyika Territory, and whether it will cover the whole period since the Armistice?

I hope it will be ready in a few months. I fancy that during the earlier period the administration was of so skeleton a character that there cannot be very much to report.

Will the hon. and gallant Gentleman see that the land policy which is being followed in these territories is set out in these Reports?

asked the Under-Secretary for the Colonies whether any grants of land or extensions of grants of land have been made to European settlers in ex-German East Africa since the Armistice; if so, on what terms and whether freehold or only leasehold grants; what proportion of ex-German East Africa had been alienated to non-native settlers before the Armistice; whether all titles to land held by German settlers have been expropriated; and whether any of the land so expropriated has been regranted or sold to new settlers?

It has not been found possible to make any grants of land in the Tanganyika Territory hitherto. Existing claims to land in the Territory must be ascertained and either rejected or admitted before it is possible to give a sound title to new applicants, and, since a large proportion of the German records have disappeared, and the Land Department of the Territory is still in process of formation, it is probable that some time must elapse before any grants can be made. The plantations belonging to ex-enemy subjects are in the hands of the Custodian of Enemy Property and will be sold by him. Due notice of such sales will be given in this country.

Will the hon. and gallant Gentleman give an assurance that the Colonial Office will not endeavour to introduce into these territories any super-scientific standard?

Will he also see that any new grants of land that are made are leasehold and not freehold, as in Kenia Colony?

Particular circumstances govern these cases, and I should not like to give an off-hand answer.

Is it not a fact that no new grants of land can be given until the terms of the mandate have been decided?

Kenia Colony (Franchise)

asked the Under-Secretary of State for the Colonies whether any and, if so, what action has been taken with regard to the conferring of the franchise on certain Indians and Africans in connection with either local or central government in Kenia Colony; and whether he will consider the appointment of a committee of this House to report on the possibility of granting responsible and representative government in municipal or general matters to the colony?

The matter referred to in the first part of the question is still under consideration. The answer to the latter part of the question is in the negative.

Have any representations been received from the India Office on this subject?

The India Office and the Colonial Office have been in consultation on the subject.

Are no steps being taken at the present time to set up a committee to inquire into the franchise possibilities in East Africa?

No, Sir. The consultation in question was on the question of Indians, and not on the question of setting up a committee.

Ceylon (Constitutional Reforms)

asked the Under-Secretary of State for the Colonies whether he can yet lay Papers respecting the grant of Constitutional Reforms to Ceylon analogous to the reforms in India; and, if not, when he expects to be able to do so?

The Secretary of State has decided, after full consideration, to recommend to His Majesty that certain changes should be made in the Constitution of Ceylon, which will give a large measure of popular control over the Administration. To summarise the proposals involves a somewhat long reply which, with the hon. and gallant Mem- ber's consent, I propose to circulate in the OFFICIAL REPORT.

The following is the information referred to :

Under the existing Constitution the Legislative Council of Ceylon contains only four elected members; the remainder being either official members or members nominated by the Government to represent separate communities. Further, the official vote is in a permanent majority on all questions. It is proposed to alter the constitution of the Legislative Council in two directions. In the first place, there will be a considerable extension of the principle of popular election in the selection of members. In the second place, the unofficial members will be given a substantial majority over the official vote.

It is proposed that the reformed Council shall consist of 37 members exclusive of the Governor, who will preside. There will be 14 official members and 23 unofficial members. Of the unofficial members, in the first place, 16, and as soon as suitable arrangements can be made, 19 will be elected by various constituencies. Eleven members will be elected on a territorial basis. The franchise and qualifications for candidates will follow the proposals of the Ceylon National Congress. Two members will be elected to represent the European community and one the Burgher community, as at present. One member will be elected by the Chamber of Commerce and one by the Low Country Products Association. As soon as arrangements can be made, the demarcation of constituencies and the preparation of registers for the Kandyan and Indian communities will be undertaken, but in the first instance two members will be nominated to represent the Kandyan and one to represent the Indian community. At at present, one member will be nominated to represent the Mohammedan community. It has been thought impossible, owing to the wide distribution of the Mohammedans throughout the Island, to introduce any system of election for this community, but the Secretary of State will be prepared to consider any practical proposals to this end that may be laid before him in the future. In addition, the Governor will be given power to appoint not exceeding three unofficial members to represent such interests as in this opinion are not adequately provided for otherwise. It will be definitely laid down by the Secretary of State that nominated unofficial members shall not in any event be required to vote according to the directions of the Governor.

It will thus be seen that the unofficial members will be in a majority of 9 over the official members. The Governor will have both an original and a casting vote if he should choose to exercise it. In order to prevent the occurrence of a deadlock in any essential matter, it will be provided that the Governor may declare that the passing of any measure is of paramount importance to the public interest and that in such a case the measure, may be carried by the votes of the official members. In every such case the Governor will be required to report his action to the Secretary of State and to explain his reasons. The Governor will also have power to stop the proceedings of the Council in relation to any measure which he certifies to affect the safety or transquillity of Ceylon. It is contemplated that these reserve powers will be used rarely, if at all, but experience has shown the necessity of a reserve power of this nature to prevent the administration being brought to a standstill, and somewhat similar provisions are contained in the Government of India Act.

As regards the Executive Council, the existing Royal Instructions provide for the appointment of any persons by the Governor in pursuance of instructions from His Majesty through the Secretary of State, and the Secretary of State proposes when the reformed Council is constituted to advise His Majesty to instruct the Governor to appoint three unofficial members of the Executive Council.

Did not the hon. and gallant Gentleman promise that this House should have an opportunity of discussing these proposals before they were enacted? Do I understand that he now withdraws that?

The proposals are now in the form of proposals and have not yet been enacted. No doubt there will be an opportunity for discussion in the immediate future on the Consolidated Fund Bill or on other occasions.

Did not the hon. and gallant Gentleman promise us a chance of voting on these matters t Discussion on the Consolidated Fund Bill, as I need hardly remind him, does not afford any opportunity of expressing our views in the Lobby. Are we not going, on the question of granting such reforms to Ceylon, to have an opportunity of voting?

May I ask whether a. discussion in this House of a matter like this does not really resolve itself into a long duologue between the hon. and gallant Member and the Undersecretary?

As far as I am concerned the duologue will not be prolonged, but I do not think the undertaking I gave ever extended beyond an opportunity for discussion before the matter was irrevocably settled. It has not been the habit, when colonial constitutions have been changed, to submit them in the form of legislation.

Is it not a fact that a proposed Order in Council making profound changes of this nature in the constitution of a most important colony is usually submitted to the House in order that the House may have some opportunity of expressing a direct opinion upon the question?

I think not in the case of an Order in Council. I have circulated a summary of the nature of these proposals.

Is the hon. and gallant Gentleman aware of the feeling in Ceylon on these proposals?

I do not know what the feeling of Ceylon would be on proposals which they have not yet seen.

British Army

General Dyer (Public Presentation)

asked the Secretary of State for War whether his attention has been called to the public subscription at present being raised on behalf of General Dyer; and, if so, whether it is permissible for an officer of the Army to accept a pecuniary solatium as an evidence of sympathy with the position of an officer who has suffered from disciplinary action taken by the Army Council?

My attention has been called to this matter. Paragraph 443A, King's Regulations, forbids the acceptance of such a presentation, but, as General Dyer has now sent in his application to retire, I do not propose to take any action.

Deceased Soldiers (Unclaimed Balances)

asked the Secretary of State for War whether, in regard to deceased soldiers' unclaimed balances, he will, in addition to publishing the facts in the "London Gazette" and the Army List, make provision for the list of moneys due to next-of-kin to be printed and exhibited in post offices, such list showing not only the names of the regiments of the soldiers, but also their regimental numbers, and by this means enable those who never see the official publications to become aware of the moneys to which they have a claim?

The question of giving further publicity to the lists of deceased soldiers' unclaimed balances is under consideration, and I will inform the hon. Member of the result at an early date.

Pay (Petition of Right)

asked the Secretary of State for War whether his attention has been called to the judgment in the case of Leaman v. The King, which declares that on enlistment in the Army a private soldier does not enter into a contract with the Crown which he can enforce in a court of law by petition of right; and whether, in view of the injustice entailed by the present condition of the law, he will consult his legal advisers with a view to such amendment as will give a soldier the right to enforce by proceedings in a court of law payment of sums to which he claims to be entitled in respect of his service as a soldier?

I am much obliged to the hon. Member for putting this question to me. I am advised that the pay of officers and soldiers alike is preserved to them by the terms of the Army Act and the Royal Warrant. By Section 136 of the Army Act it is provided that the pay of a soldier shall be paid without any deduction other than the deductions authorised by this or any other Act or by any Royal Warrant for the time being. By Section 138 the deductions that can be made are carefully restricted. By Section 37 of the Army Act it is an offence unlawfully to detain or unlawfully to refuse to pay when due the pay of any officer or soldier when received. I refer the hon. Member also to Sections 43 and 140, Sub-section 3, which refer to questions where any wrong or doubt arises. The payment for services rendered as a soldier to His Majesty has for generations been made under these provisions without difficulty arising. The case referred to only decided that proceedings to recover pay in a court of law are not open to a soldier or officer. No injustice is done to the soldier, but a more speedy system of adjusting his rights is in practice, and I see no reason, in the interests of the soldier himself, to make the alteration proposed.

Was it not decided in this decision that while an officer had a petition of right an ordinary soldier had not?

I shall not attempt to answer without full notice any question on which obviously I must have the advice of legal authority.

Questions

County Agricultural Committees

asked the Parliamentary Secretary to the Ministry of Agriculture whether all expenses incurred by the County Agricultural Committees under the Corn Production Act, 1917, and the Agriculture Bill now under discussion will be defrayed out of moneys provided by Parliament?

The expenses that will be incurred by County Agricultural Committees acting on behalf of the Minister under Part 4 of the Corn Production Act, 1917, will be defrayed out of moneys provided by Parliament, and the same applies to the Agriculture Bill as at present framed. My hon. Friend will understand, however, that I cannot give a, more definite answer with regard to a Bill that is still under discussion.

Rats (Destruction)

asked the Parliamentary Secretary to the Ministry of Agriculture whether he is aware that rats are now consuming, not only the actual sum of the bread subsidy, which amounts to £45,000,000, but at the present price of grain nearly twice that amount; and whether he can state what action his Department is taking to rid the country of these rodents?

I am aware that the depredations of rats are responsible for the loss of very considerable quantities of food, including grain. Any estimate of the damage must necessarily be problematical and I cannot vouch for the figure mentioned by the hon. Member. Since my Department assumed responsibility for supervising the measures for the destruction of rats, every effort has been made to instruct local authorities as to their duties under the Rats and Mice (Destruction) Act, and by personal instruction by their officers, and the issue of pamphlets and notices to the Press, to call attention to the waste of food and damage to property caused by rats. As a result, there has been a considerable reduction in the number of rats in certain parts of the country where effective measures have been taken, and it is to be hoped that such counties which have not as yet taken steps to organise schemes of rat destruction will shortly do so, in view of the undoubted benefit and saving to the community of such action.

Crown Slate Quarries, Merioneth

asked the Parliamentary Secretary to the Ministry of Agriculture whether the royalty charged by the Office of Woods on Crown slate quarries in the county of Merioneth is greatly in excess of the royalty charged by private owners of neighbouring slate quarries, or approximately at the rate of 8s. as compared with 2s. 3d. per ton; whether he is aware that this heavy charge is arresting development; and whether he will take immediate steps, in the public interest, to reduce the royalty and thus place the quarries upon a competitive basis?

The rates of royalty charged by the Various private quarry owners in Merionethshire, and their incidence per ton, are not known to the Commissioner of Woods. In one of the only two Crown quarries in Merionethshire which were worked during the financial year to 31st March, 1920, the royalty worked out at 3s. per ton of the output, and in the other at 4s. 3d. The royalties and other conditions of letting are, in every case, carefully considered by the Commissioner of Woods, after consulting the usual expert Crown advisers, and are reported to the Treasury for sanction, when they have been accepted by the proposed lessees. No pledge can be given to reduce the royalty —irrespective of the circumstances—so as to equal the lowest rate per ton charged on neighbouring quarries, but applications for any concessions which may be necessary in order to assist the development of Crown quarries always receive the most careful consideration.

Boulogne Conference

May I ask the Leader of the House when the Prime Minister will be able to make a statement on the subject of the recent Conference at Boulogne?

It was agreed at Boulogne that an answer should be sent to the Soviet Government's last message, and its terms were arranged. It was decided not to send it or make it public until the approval of the Italian Government had been received. A reply has not yet come from the Italian Government, but I hope it will be received by tomorrow and then it will be possible to make a statement.

In the meantime, can the right hon. Gentleman prevent inflammatory articles in the Press by the Minister of War (Mr. Churchill)?

Business of the House

It may be for the general convenience to ask the right hon. Gentleman what business will be taken on Friday?

The first Order will be the Second Reading of the Shops (Early Closing) (No. 2) Bill, followed by the Maintenance Orders (Facilities for Enforcement) Bill, the Second Reading of the Census Bill, the Overseas Trade (Credits and Insurance) Bill, Report, and the Dangerous Drugs Bill, Report—a large number, but for once I hope there will not be much controversy about them.

Motion made, and Question put, "That the Proceedings on the Post Office and Telegraph Bill be exempted at this day's Sitting from the provisions of the Standing Order (Sittings of the House)." —[ Mr. Bonar Law. ]

The House divided: Ayes, 216; Noes, 44.

Division No. 259.]

AYES.

[3.50 p.m.

Addison, Rt. Hon. Dr. C.

FitzRoy, Captain Hon. E. A.

Magnus, Sir Philip

Agg-Gardner, Sir James Tynte

Forestier-Walker, L.

Mallalieu, F. W.

Atkey, A. R.

Fraser, Major Sir Keith

Malone, Major P. B. (Tottenham, S.)

Bagley, Captain E. Ashton

Freece, Sir Walter de

Marriott, John Arthur Ransome

Baird, Sir John Lawrence

Fremantle, Lieut.-Colonel Francis E.

Matthews, David

Baldwin, Rt. Hon. Stanley

Gardiner, James

Middlebrook, Sir William

Balfour, George (Hampstead)

Gardner, Ernest

Mitchell, William Lane

Barker, Major Robert H.

Geddes, Rt. Hon. Sir E. (Camb'dge)

Moore-Brabazon, Lieut.-Col. J. T. C.

Barnett, Major R. W.

Gibbs, Colonel George Abraham

Morison, Rt. Hon. Thomas Brash

Barnston, Major Harry

Gilbert, James Daniel

Morris, Richard

Barrand, A. R.

Gilmour, Lieut.-Colonel John

Morrison-Bell, Major A. C.

Barrie, Charles Coupar

Goff, Sir R. Park

Murray, Major William (Dumfries)

Beckett, Hon. Gervase

Green, Joseph F. (Leicester, W.)

Nail, Major Joseph

Bell, Lieut.-Col. W. C. H. (Devizes)

Greene, Lt.-Col. Sir W. (Hack'y, N.)

Neal, Arthur

Bellairs, Commander Carlyon W.

Greenwood, William (Stockport)

Newman, Colonel J. R. P. (Flnchley)

Betterton, Henry B.

Greig, Colonel James William

Newman, Sir R. H. S. D. L. (Exeter)

Bigland, Alfred

Gretton, Colonel John

O'Neill, Major Hon. Robert W. H.

Bird, Sir A. (Wolverhampton, West)

Guinness, Lieut. -Col. Hon. W. E.

Ormsby-Gore, Captain Hon. W.

Blair, Reginald

Gwynne, Rupert S.

Palmer, Major Godfrey Mark

Boscawen, Rt. Hon. Sir A. Griffith-

Hacking, Captain Douglas H.

Palmer, Brigadier-General G. L.

Bowyer, Captain G. E. W.

Hall, Lieut.-Col. Sir F. (Dulwich)

Parry, Lieut.-Colonel Thomas Henry

Breese, Major Charles E.

Hanna, George Boyle

Pearce, Sir William

Bridgeman, William Cilve

Harmsworth, C. B. (Bedford, Luton)

Pease, Rt. Hon. Herbert Pike

Briggs, Harold

Harris, Sir Henry Percy

Peel, Col. Hn. S. (Uxbridge, Mddx.)

Britton, G. B.

Henderson, Major V. L. (Tradeston)

Pennefather, De Fonblanque

Bruton, Sir James

Henry, Denis S. (Londonderry, S.)

Percy, Charles

Buchanan, Lieut. -Colonel A. L. H.

Herbert, Hon. A. (Somerset, Yeovil)

Pickering, Lieut.-Colonel Emil W.

Burn, Col. C. R. (Devon, Torquay)

Herbert, Dennis (Hertford, Watford)

Pownall, Lieut.-Colonel Assheton

Burn, T. H. (Belfast, St. Anne's)

Higham, Charles Frederick

Purchase, H. G.

Butcher, Sir John George

Hope, James F. (Sheffield, Central)

Rae, H. Norman

Carr, W. Theodore

Hope, J. D. (Berwick & Haddington)

Raeburn, Sir William H.

Carson, Rt. Hon. Sir Edward H.

Hopkins, John W. W.

Raper, A. Baldwin

Casey, T. W.

Hopkinson, A. (Lancaster, Mossley)

Ratcliffe, Henry Butler

Cecil, Rt. Hon. Lord H. (Ox. Univ.)

Hunter, General Sir A. (Lancaster)

Rees, Sir J. D. (Nottingham, East)

Cecil, Rt. Hon. Lord R. (Hlichin)

Hunter-Weston, Lieut.-Gen. Sir A. G.

Remer, J. R.

Chadwick, Sir Robert

Hurst, Lieut.-Colonel Gerald B.

Remnant, Sir James

Chamberlain, Rt. Hn. J. A. (Birm., W.)

Jackson, Lieut.-Colonel Hon. F. S.

Rendall, Atheistan

Churchill, Rt. Hon. Winston S.

Jameson, J. Gordon

Richardson, Alexander (Gravesend)

Clay, Lieut.-Colonel H. H. Spender

Jellett, William Morgan

Roberts, Sir S. (Sheffield, Ecclesall)

Clough, Robert

Jephcott, A. R.

Robinson, S. (Brecon and Radnor)

Cockerill, Brigadier-General G. K.

Jesson, C.

Robinson, Sir T. (Lanes., Stretford)

Cohen, Major J. Brunel

Jodrell, Neville Paul

Rodger, A. K.

Collins, Sir G. P. (Greenock)

Johnstone, Joseph

Roundell, Colonel R. F.

Coote, Colin Reith (Isle of Ely)

Jones, Sir Edgar R. (Merthyr Tydvil)

Sanders, Colonel Sir Robert A.

Cowan, D. M. (Scottish Universities)

Jones, Henry Haydn (Merioneth)

Scott, A. M. (Glasgow, Bridgeton)

Cowan, Sir H. (Aberdeen and Klnc.)

Jones, J. T. (Carmarthen, Llanelly)

Seddon, J. A.

Craig, Captain C. C. (Antrim, South)

Kellaway, Rt. Hon. Fredk. George

Sprot, Colonel Sir Alexander

Craig, Colonel Sir J. (Down, Mid)

Kidd, James

Stanley, Major Hon. G. (Preston)

Craik, Rt. Hon. Sir Henry

King, Commander Henry Douglas

Stanton, Charles B.

Croft, Brigadier-General Henry Page

Kinloch-Cooke, Sir Clement

Stephenson, Colonel H. K.

Curzon, Commander Viscount

Lane-Fox, G. R.

Stevens, Marshall

Dalziel, Rt. Hon. Sir J. H. (Kirk'dy)

Law, Alfred J. (Rochdale)

Stewart, Gershom

Davies, Alfred Thomas (Lincoln)

Law, Rt. Hon. A. B. (Glasgow, C.)

Strauss, Edward Anthony

Davies, Thomas (Cirencester)

Lewis, Rt. Hon. J. H. (Univ., Wales)

Sturrock, J. Leng

Davison, Sir W. H. (Kensington, S.)

Lister, Sir R. Ashton

Surtees, Brigadier-General H. C.

Dawes, James Arthur

Lloyd, George Butler

Sutherland, Sir William

Dean, Lieut.-Commander P. T.

Locker- Lampson, G. (Wood Green)

Sykes, Colonel Sir A. J. (Knutsford)

Denison-Pender, John C.

Long, Rt. Hon. Waiter

Talbot, G. A. (Hemel Hempstead)

Doyle, N. Grattan

Loseby, Captain C. E.

Taylor, J.

Edwards, Major J. (Aberavon)

Lowe, Sir Francis William

Thomas, Sir Robert J. (Wrexham)

Eyres-Monsell, Commander B. M.

Lyle-Samuel, Alexander

Thomas-Stanford, Charles

Falle, Major Sir Bertram G.

M'Donald, Dr. Bouverie F. P.

Thomson, Sir W. Mitchell-(Maryhill)

Farquharson, Major A. C.

Macdonald, Rt. Hon. John Murray

Townley, Maximilian G.

Fell, Sir Arthur

M'Guffin, Samuel

Turton, E. R.

Fildes, Henry

Macpherson, Rt. Hon. James I.

Wallace, J.

Walton, J. (York, W. R., Don Valley)

Willey, Lieut.-Colonel F. V.

Yeo, Sir Alfred William

Ward-Jackson, Major C. L.

Williams, Lt.-Col. Sir R. (Banbury)

Young, Lieut.-Com. E. H. (Norwich)

Ward, Col. L. (Kingston-upon-Hull)

Williams, Col. Sir R. (Dorset, W.)

Young, Sir Frederick W. (Swindon)

Waring, Major Walter

Wills, Lieut.-Colonel Sir Gilbert

Young, W. (Perth & Kinross, Perth)

Warner, Sir T Courtenay T.

Wilson, Daniel M. (Down, West)

Warren, Lieut.-Col. Sir Alfred H.

Wilson, Colonel Leslie O. (Reading)

TELLERS FOR THE AYES. ——

Wason, John Cathcart

Wood, Hon. Edward F. L. (Ripon)

Lord E. Talbot and Mr. Parker.

Watson, Captain John Bertrand

Yate, Colonel Charles Edward

NOES.

Asquith, Bt. Hon. Herbert Henry

Graham D. M. (Lanark, Hamilton)

Palmer, Charles Frederick (Wrekin)

Benn, Captain Wedgwood (Leith)

Grundy, T. W.

Parkinson, John Allen (Wigan)

Bottomley, Horatio W.

Hall, F. (York, W. R., Normanton)

Richardson, R. (Houghton-le-Spring)

Bramsdon, Sir Thomas

Hirst, G. H.

Robertson, John

Briant, Frank

Hogge, James Myles

Royce, William Stapleton

Cairns, John

Holmes, J. Stanley

Sexton, James

Cape, Thomas

Irving, Dan

Spoor, B. G.

Clynes, Rt. Hon. J. R.

Kenworthy, Lieut.-Commander J. M.

Thomas, Rt. Hon. James H. (Derby)

Crooks, Rt. Hon. William

Kenyon, Barnet

Thomas, Brig. -Gen. Sir O. (Anglesey)

Davies, Evan (Ebbw Vale)

Lawson, John J.

Thomson, T. (Middlesbrough, West)

Davison, J. E. (Smethwick)

Maclean, Neil (Glasgow, Govan)

Wedgwood, Colonel J. C.

Devlin, Joseph

Malone, C. L. (Leyton, E.)

Wood, Major M. M. (Aberdeen, C.)

Edwards, John H. (Glam., Neath)

Morgan, Major D. Watts

Entwistle, Major C. F.

Murray, Dr. D. (Inverness & Ross)

TELLERS FOR THE NOES. ——

Galbraith, Samuel

Newbould, Alfred Ernest

Mr. G. Thorne and Mr. Tyson Wilson.

Glanville, Harold James

O'Connor, Thomas P.

Personal Explanation

I had intended, by way of personal explanation, to ask the Prime Minister a question affecting myself personally, but he is not here.

New Member Sworn

EVAN DAVIES, Esquire, for the County of Merioneth (Ebbw Vale Division).

Bills Reported

Cardiff Corporation Bill [ Lords ],

Exmouth Urban District Council Bill [ Lords ],

Reported, with Amendments, from the Local Legislation Committee; Reports to lie upon the Table, and to be printed.

Message from the Lords

That they have agreed to,

Norwich Corporation Bill,

Mid Glamorgan Water Bill,

Brighton and Hove Gas Bill, with Amendments.

Amendments to—

Dover Harbour Bill [ Lords ], without Amendment.

Selection (Standing Committees)

Standing Committee B

Sir SAMUEL ROBERTS reported from the committee of selection; That they had discharged the following Member from Standing Committee B (added in respect of the Pensions Increase Bill): Mr. Macpherson; and had appointed in substitution: Major Hamilton.

Standing Committee A

Sir SAMUEL ROBERTS further reported from the Committee; That they had discharged the following Member from Standing Committee A: Mr. Gregory.

Standing Committee D

Sir SAMUEL ROBERTS further reported from the Committee; That they had discharged the following Member from Standing Committee D: Sir Charles Sykes.

Reports to lie upon the Table.

Orders of the Day

Finance Bill

Order for Third Reading read.

Motion made, and Question proposed, "That the Bill be now read the Third time."—[ Mr. Chamberlain. ]

4.0 P.M.

I beg to move, to leave out from the word "That" to the end of the Question, and to add instead thereof the words some £230,000,000 available at the end of the financial year for the reduction of debt. I am one of those who never attach the remotest importance to the predictions of Chancellors of the Exchequer The manner in which year after year they come forward without any sense of shame and point out either that the expenditure has been so many millions more than we were told would be the case, or that the receipts have been so many millions less, would not be tolerated in any business, assembly. I believe yesterday the right hon. Gentleman the Member for the City of London (Sir F. Banbury) described the present Chancellor of the Exchequer as the greatest of our present-day Ministers. It is becoming a truism that we are living in an age of mediocrity, and if the Chancellor of the Exchequer, whatever his relative merits compared with his associates and colleagues may be, can give us no better evidence of his financial prescience than has characterised his present tenure of office, I say that there is no reason why we should attach undue importance to his predictions.

If you take last year's Budget there was a mistake of some £200,000,000 on one side and some £150,000,000 on the other. Even if you go back to last October when the Chancellor of the Exchequer revised his Budget and told us where the mistakes had arisen and how everything was then going to work out, he was £171,000,000 out in his revenue and £23,000,000 out in his expenditure. It may easily be so with the estimated' income from those taxes, such as the Excess Profits Duty, the Wine Duties, and, so on, for they are based upon no trustworthy foundation. It is a commonplace in commercial circles to-day that the predictions and anticipations of the Chancellor of the Exchequer will be blown to the winds. The feeling is so strong, and it is well that the House should understand it, that men of commercial honour, with an ordinary sense of their patriotic duty, are making no secret of their intention of slacking down their works as soon as they reach their pre war standard of profits as a protest against the increase in the Excess Profits Duty. I agree that it is not patriotism, but it is human nature, and it justifies one of the terms in my Motion, because, if language means anything, we were led to believe when the Budget statement of last year was made that this Excess Profits Duty, whatever its merits, was going. When the Chancellor of the Exchequer himself gets up and says that it is a pernicious tax, unjust in its incidence, detrimental to commerce, and inimical to development, and then the following year comes forward and, without in any way qualifying his condemnation of the tax, instead of discarding it, as he led us to think he would do, increases it to 50 per cent., I say that we are reaching a stage when Ministerial declarations cease to have any value.

It is the same with regard to the Land Duties imposed by the great Budget of 1909. I remember sitting in the corner opposite and hearing the present Prime Minister introduce the Budget containing those duties. I remember how, after two or three hours' elucidation, physical exhaustion overcame him, and he was obliged to take a short rest before he could continue. I remember how in one of those wonderful perorations for which he is famous he said that if those duties were allowed to come into operation poverty would soon be as scarce in this country as the wolves which once infested its shores. Again and again he invoked the aid of the Deity and declared that nothing would force him to forgo those great sources of revenue. It was very refreshing the other day to see a distinguished Gentleman get up and reiterate the faith which fired the House in those days, but it is a cynical commentary upon the little importance that is attached to Ministerial declarations that we now have brought forward a Budget which first of all perpetuates something which the Chancellor of the Exchequer has condemned in language stronger than any Member of the House has used: and which, secondly, abandons that which was going to make a paradise on earth of this old country. I say that those two illustrations alone are sufficient to justify one term of my Resolution. I wish to emphasise the fact that there is to-day no atom of ground whatever for anticipating that this year's Budget will produce a single penny available for the reduction of debt.

We have to take this Budget in connection with three statements. There is the financial statement containing the various figures which were announced in the course of the Budget speech, there is the statement of the assets and debts of Britain, and there is the statement telling us what things are going to be like in the normal year. Taking those three cases together, it is perfectly obvious that the assets put down in one of them and taken into consideration in framing this Budget are largely fictitious, and that the income also is largely fictitious. One of the assets of the British Empire, taken quite seriously on the credit side of our balance sheet, is some £550,000,000 owing to us by Russia. I wonder what you would get in the City if you tried to realise on that debt? There is some £8,000,000 which we have advanced to relieve the starving women and children in Austria and Hungary. That is put down as an asset. How on earth does the Chancellor of the Exchequer ever anticipate getting any of that back? There is £45,000,000 put down for the Armies of Occupation. I seem to remember that six months or more ago the cost of the Armies of Occupation exceeded that sum very considerably, and the Secretary of State for War had his accounts upset because of his delusion that Germany was going to pay. Still it is put in the balance sheet as a national asset. The Chancellor of the Exchequer in his private capacity would not give sixpence for that asset. Germany is no more going to pay for the cost of the Army of Occupation than she is going to fulfil her obligations under the Indemnity Clauses of the Treaty. I could take item after item in the balance sheet and show how fictitious are the figures.

Put shortly, the position of the country is that we have a dead-weight debt in round figures of some £8,000,000,000. Taking all the assets that we possess, according to the Chancellor's balance-sheet and at his value—assuming that Soviet Russia is going to hand over that £550,000,000 of bullion, and that the people of Austria and Hungary are going to pay us back that which we have spent on them—they do not reach £3,000,000,000; but even the Chancellor of the Exchequer contemplates a possible disappointment in some of his assets. Taking them, however, at their par value, there is a deficit of well over £5,000,000,000. That is the problem which confronts the nation today, and it cannot be too clearly stated. We have a debt of £8,000,000,000 and we have assets which, put at their highest, amount to £3,000,000,000. We are £5,000,000,000 on the wrong side. That has come about because we embarked on a great war for the salvation of the world, for the future of democracy, and for the maintenance of the British Empire.

Something was said about the rights of small nations, but that was a long time ago, and we do not talk about that now. The Chancellor of the Exchequer has got into his head the idea that it is financial sagacity and purity to set to work to pay off that £5,000,000,000. In one form and another this War has cost us nearer £10,000,000,000 than £8,000,000,000. Would it not be fair to say that we will pay half of it, and posterity, for whose benefit the War was fought as much as for our benefit, should pay the other half? I say that it would be sound finance, absolutely invulnerable from the logical point of view, to say that that £5,000,000,000 must be carried forward as an item well chargeable against posterity, we bearing the other £5,000,000,000. Let us drop all this nonsensical talk about debt reduction when it is absolutely out of the question for us to accomplish it for many a year to come. Take the White Paper of the Chancellor of the Exchequer showing how things will stand in a normal year. There are some humorous features in it. The Chancellor of the Exchequer says in the White Paper about the normal year that he does not take into account anything from Excess Profits Duty. That is some comfort Evidently he has pledged himself to this at least, that in normal years we shall not have anything more to do with this mischievous duty. He also tells us that in normal years he does not propose to take credit for anything on account of the cost of armies of occupation. Who expects to have armies of occupation in normal years?

That is how these White Papers are prepared. One can go through item after item and show that the figures are fantastic. My point is, that the Chancellor of the Exchequer, with all the great hold he has obtained over the House, will not take his courage in both hands and say, "I am something more than the mere paymaster of the nation." He will not rid himself of the old-fashioned notion of joint responsibility. He thinks it his duty to sit at Cabinet Councils and to allow each Minister to say how much money he wants—they say it nominally, but it comes really from the heads of the Departments. If the Chancellor would say, "I am the financial Minister of the nation. I have looked into things and I can find so much money, and so much only for the service of the year, and your have to cut down your expenditure to that figure," we should very soon have a different state of things. I put that suggestion to the Chancellor on the Second Reading of the Finance. Bill and he repudiated it. He said it was not for him to interfere with the demands of his colleagues. I also commented on a document issued by the Financial Secretary to the Treasury, a document prepared with a most estimable object, but which said, in effect, "Be sure to ask for all you want." There was not a word in it demanding that before money was asked for a very careful examination should be made of requirements, and that the demand should be made as small as possible. This Budget is remarkable for two things. First of all, there are fantastic estimates of revenue and of expenditure; and, secondly, there is an absolute absence of any indication of an intention on the part of the Government to cut down public expenditure. Take the items in these White Papers. There is cost of administration, Revenue Department, £11,000,000, I think. I am not a very rich man, but I will undertake to do the whole job for £10,000,000 and save £1,000,000 for the Chancellor of the Exchequer. There is £17,000,000, I believe, for law and justice. Seventeen millions pounds will buy a lot of law and justice; I am glad to say that mine costs me nothing. Legal Departments and other items are £4,000,000 to £5,000,000. That is a thing that could be revised. There is hardly anything in all these columns of figures that a small committee of business men could not cut down.

I must express my regret that, in seeking new money for these increased expenses, the Chancellor of the Exchequer has done little more than draw on old resources in drink, tobacco, and Income Tax. There is a breaking point. So far, at any rate, as fixed incomes are concerned, the Income Tax extortions from the middle classes have reached a point which cannot be passed. So far as wines and spirits are concerned, the Chancellor is doing more to promote Bolshevism in this country by interfering with the social habits of the people than he could do by any other method. He is aggravating France with the ridiculous Champagne Duty. That duty has been reduced to some extent, for champagne drinkers had already revolted against the tax. The Chancellor will have a rude awakening about it before long. He will simply make France angry, not for the first time, and he will get no increased revenue. As to new sources of revenue, the Bill is silent. There is one source that I pressed on the Chancellor of the Exchequer, but it is not in the Bill. That is a tax on advertisements. I put it forward once or twice, and I was amazed to find how restricted were the sources of information the Chancellor had available. He was good enough to say he would consider the proposal. He looked about, and sent me a note in which he said that he found that the Advertisement Tax in France brought in only about £250,000 a year. The Chancellor does not know that the Advertisement Tax in France is confined only to hoardings, and that that is a system of advertising which prevails in France to nothing like the extent that it prevails in England. If it produces £250,000 in France, it would produce millions here. There are in this country many millions of money spent in general advertising, and not one person in a thousand with large advertising contracts to place would object to paying a few pence in the £ in the way of a tax. Such a tax, I estimate, would bring in a revenue of £10,000,000 to £12,000,000 a year on the basis of the present advertising expenditure in this country, without inflicting the slightest harm on any human being.

Before the next Budget comes round, the House should take a larger share than it has ever done before in settling the financial affairs of the nation. Every Member of this House should have a legal right to walk through any public Department at any hour of the day and to make observations and notes as to the number of the staff engaged, as to their activities, and as to what was going on. We all know the story of the Civil Servant who turned to a friend and said, "What lazy people British working men are; I have watched that man for half an hour, and he has not done a stroke of work." I heard the case recently of a country school which wanted a new writing desk. Application was made to the Education Department. Many forms were forwarded, with all the letters of the alphabet upon them to be quoted by way of reference. Weeks and months passed, specifications were called for, the measurements of the school, and everything else. After four months of this nonsensical correspondence, the information arrived that the provision of the desk was authorised at a cost not to exceed £7 15s. The answer went back from the school that in the meantime, by local subscription, the local carpenter had made the desk for 35s. That is a specimen.

Such details of expenditure are not relevant to the question of the Finance Bill. The particulars which the hon. Member has just given would be relevant to the discussion, upon the Education Vote, which gives the House an opportunity for criticising the money spent on education; but criticisms of administration and public expenditure in detail are not relevant to the question of how the money is to be raised. I do not object to general references. As I have said before, they are always relevant on every occasion. On this occasion the hon. Member must restrict himself to general observations of such a kind.

I entirely agree with the ruling. I hope the Chancellor of the Exchequer will turn his attention, to the Education Department with a view of seeing that they do not waste too much time and paper in useless correspondence of the kind I have indicated. Is it not a remarkable thing that without any expression of regret on the part of the Chancellor of the Exchequer we have the spectacle of all our public stocks going down and down and down. He issues War Loans and Victory Bonds. He goes down to the City, and on his responsibility as Chancellor of the Exchequer says, "Never will there be such a chance again in the lifetime of this generation for securing such investments at such a price." I did my best to place a lot of them when they were issued, and only a week ago received a letter calling me a thief and a swindler because my correspondent had acted on my advice and said that through me he had lost £120. I could do nothing but express my regret and enclose him a stamped envelope addressed to the Chancellor of the Exchequer, as the letter was meant for my right hon. Friend and not for me. I do not know whether the Chancellor has received it. Something must be done. National credit is the essence of national security. I repeat the suggestion I made on Second Reading, and that is that there should be some kind of fund available for keeping national stocks at a decent price on the market. Whatever it costs the State it would be money well spent. We cannot have public stocks dropping and dropping. The Chancellor should also see if he cannot find some other sources of revenue. I have been to France recently, and have seen three loans raised on the premium bond system, and they were subscribed 80 times over. I would say to the Chancellor, "Do try to get away from increased taxation on tobacco, whisky, and beer, and from increasing the Income Tax. They have had their day as sources of fiscal revenue, and you cannot get more out of them. Look for new sources of revenue. Throw aside early Victorian traditions as to financial purity. Realise that we are living in different times altogether." I well remember, before the War, the right hon. Member for Paisley (Mr. Asquith) saying that a uniform Is. Income Tax was an anomaly and an anachronism. We used to think that the total wealth of the nation was about one-tenth of what we know it to be now. There are innumerable sources of untaxed wealth. Let us have a little ingenuity in fiscal methods. Above all things let the Chancellor of the Exchequer assert himself in every public Department and say, "You cannot and shall not have more than I can afford to give you." Let a business committee of Members of this House be appointed to visit those Departments and to see that they are doing their work. In these ways we can save the nation from the heavy debt which hangs over it, we can cut away an enormous amount of taxation, we can ease the position, and we can get back again to those times when England was a country worth living in.

I beg to second the Amendment.

I speak as an ordinary Member knowing something of the feelings of the people outside. If it is not quite in order to discuss economy I am sure, Sir, you will allow me to discuss what I call the extravagant policy as represented by this Bill. The Estimates of income are dangerously illusory, and I think that the estimates of expenditure are equally illusory. Within the last few days we find that the Chancellor of the Exchequer has made a mistake, and so he needs more money, and we have a new Supplementary Estimate for no less a sum than £2,404,000. When the public read that sort of thing in the newspapers they do feel that we have a Government which has no sense of economy, and which is determined to spend money without due regard to the capacity of the nation to find it. This Bill represents a policy which I may call, without using strong words, one of wild adventure on the one hand and extravagant bureaucracy on the other. In this very Estimate there is included no less a sum than £2,167,000, unclassified miscellaneous War services. That is the sort of thing that is going on to-day. On the one hand we have a Chancellor who with the best will in the world has not the courage to stand up against this extravagance. When we put the matter to him in earlier debates he rather took this line. "My duty is to carry out the policy of the Government." Some of us have the idea that the history of Chancellors of the Exchequer in the past showed that some of them took the view that it was their duty to be the watchdogs of the national purse. His idea seems to be, "mine is not to reason why, mine is to do or politically die." Whatever we bring forward he tells us, "I stand or fall by these proposals," and only the other day we had the Leader of the House coming down and shaking the big fist at his heavy battalions. I do not speak wth any special knowledge of finance, such as some hon. Members have. My knowledge is the ordinary common knowledge of the man in the street. We see taxation going up, and we see expenditure piling up, and we see no attempt on the part of the Chancellor of the Exchequer to be that watchdog of the public purse which we believe is his duty, and a duty which in the past great Chancellors of the Exchequer have performed, even to the extent of resigning their positions rather than be parties to the extravagancies demanded of them by the Government in power. I say a courageous Minister would resign, and that would do more to bring this Government to a sense of responsibility, and would do more to convince the country that there is at least one man prepared to give up office rather than carry on these extravagancies, which are represented in this Finance Bill, and which are pressing upon the people with a weight that is almost impossible for them to bear.

The Amendment, I apprehend, raises the questions which are involved in it, and the whole of the questions involved in the Bill. We have arrived at the Third Reading and, speaking generally, the scheme of taxation which the Government put forward has been maintained, and there is no great difference. My right hon. Friend the Chancellor has, if he will allow me to say so, conducted the Bill with great skill and great determination. The result has been that he has the satisfaction of seeing the scheme brought to its final Parliamentary stage in this House. I wish to disclaim any desire to make any personal attack on my right hon. Friend. It is the last thing I would desire to do. As I ventured to assure him on a former occasion, I have a profound respect for him, and I have no intention of making any personal attack. At the same time, the enormous weight of taxation which we are asked to sanction by this Bill fills me with the gravest misgiving. It is familiar to hon. Members that by this taxation we are going to raise £1,400,000,000, and, while there may be some hope that that is not to be a permanent charge, yet a normal state of affairs is put at £1,000,000,000. I cannot help feeling that this taxation is really larger than this country can afford to bear. If I understand the matter rightly, taxes can only be paid out of the surplus between national income and national expenditure. That is the only fund out of which taxes can come. I know it is commonly thought by some people, both inside this House and out of it, that there is an unlimited fund on which you can draw, and that if you can devise a new tax you may open out what is called a new source of revenue. In my view there is no new source of revenue. There is only one source and that is the excess of income over expenditure in the whole country. Whether you draw it by one channel or another may make an immense difference to the individuals concerned, but it does not make any difference at all to the resources of the country as a whole. Therefore from that point of view it is of secondary account what form the taxation takes, though I do not say it is not a matter of great importance to individuals and may have a great effect. But in the ultimate result you are limited in that way.

This surplus of income over expenditure is, as I understand, the fund on which national development really depends. It is quite obvious that the country industrially and commercially cannot stand still. It must either go backward or forward. If it is to go forward it must be by fresh developments, and those can only be made out of the excess of income over expenditure. If that is so, other things being equal, every increase in your taxation is a drain on your national development, and it means that ultimately you will have less to draw from proportionately in the future, and you will diminish the natural increase of your resources, and you will sooner or later find yourself in difficulties. That is all quite familiar to hon. Members who give thought to this subject. It has been expressed in very many ways by distinguished financiers. There was the old phrase of Mr. Gladstone, that the great object of a Chancellor of the Exchequer should be to leave the money to fructify in the pockets of the taxpayer. That is the same idea. If you take the money in taxes you take it from national development, except so far as it may be saved from national extravagance.

It may be, but I am not quite sure that you have not reached all you can hope to achieve by saving produced by individual economy. It is the old story. If you do overtax the country you kill the goose that lays the golden egg. It is quite evident that not only is it true that if you take a certain amount of this surplus you diminish the surplus, but if you take more and more you will ultimately kill the development of the country, and will indeed ultimately go backward instead of forward. In order to illustrate the argument I am advancing let me give a few figures. I am told by those who have investigated the matter that before the War it might be fairly held that the national income was about £2,400,000,000 and the national expenditure about £2,000,000,000. There was thus a surplus of £400,000,000, out of which the development of the country proceeded and investment and all that kind of thing. Allowing for the change in the value of money, and assuming that things remained exactly as they were, there would be instead of that £400,000,000, about two and a half times that amount, or £1,000,000,000 as the surplus. If I am right the amount of the Budget in that year was about £200,000,000. Again making allowance for the change in the value of money, it would be about £500,000,000 now. Instead, therefore of raising £500,000,000, you are raising one way or another, £1,400,000,000, an excess of £900,000,000 over what we received before, and if it be true that the surplus is about £1,000,000,000, you are taking about nine tenths of the whole of that surplus. But it will probably be much worse. That is assuming everything remained as it was, but it is common ground that production is not proceeding as rapidly as it was before the War and you must make an allowance for that. Some people say it must be as high as 20 per cent. Then you have sold a number of your foreign investments, and that also is a loss of national income for which an allowance must be made, while in addition to that there is now coming on a very large amount of renewal and other capital expenditure, which also has to be allowed for, so that, as far as the income side of the accounts is concerned, it must be worse than it was before the War.

My right hon. Friend the Chancellor of the Exchequer reminded me in an interruption just now that that is not the whole story, because you have a resource in savings; that is to say, that, if the national expenditure is reduced by savings, that increases the amount of the funds from which you can draw taxes, and I daresay he knows better than I do about that. I daresay considerable saving has taken place since pre-War times, but I would remind him that, as far as I know, there is no sign of saving in the working classes. Everyone tells me that the working classes are spending more than before the War. I do not know whether that is so. There is some saving, no doubt, in the richer classes, but I think that is a limited amount, and I rather doubt whether it has not proceeded as far as it can be hoped that it will proceed. If these figures are right, or anything like right, it is quite plain that on the taxation as it stands at present we have got dangerously near the limit of taxation, which is proper. It may be said that if that were so certain signs would appear, that there would be a check in the national development, of industries, and so on. My right hon. Friend is in a better position to judge of that than I am, but I can only tell what I hear on all sides and what I read in the papers, and that is that such a check has occurred. Another thing might happen. If you were really drawing too much in taxation, you would find that a considerable body of taxpayers —not individuals here and there, but a considerable body—were finding it very difficult to pay their taxes, and were raising money in order to do so, not merely paying taxes out of their surplus income, but being forced, in order to pay their taxes, to raise money from their bankers or elsewhere. I am not a banker, and I can only tell what I am told by those who are in a position to form a judgment; but, from inquiries I have made, I am assured that it is so, that a very large amount of borrowing is going on at the present time in order to pay taxes. If that is so, it would seem quite clear that we have got dangerously near the limit of taxation.

I am very anxious not to be thought to be an alarmist. I am not one of those who think this country is rapidly decaying or approaching financial ruin. I do not think anything of the kind. On the contrary, I believe, except for this burden of taxation, that all the other conditions are exceedingly favourable. I have heard a good deal said about the failure of certain classes: of the population to work, but broadly and' generally speaking I do not think that is true. There is an immense demand for our production, not in the markets of Europe, but in other markets of the world, and there is no reason in the world why, if our affairs are being conducted with proper regard to the financial situation in which we find ourselves, we should not be advancing rapidly towards complete reconstruction after the War. I believe the situation, except for this matter, is fundamentally and essentially a good one, and it is, therefore, all the more deplorable that, owing to what I must very respectfully call the unwise policy of the Government in this respect, that restoration should be checked. I recognise what Mr. Speaker has been good enough to say as to the limits of what we can discuss. At the same time, I should not be doing my duty if I did not indicate generally what seems to me to be the cause which has brought about, and is bringing about, this vast taxation, and, as I think, this serious over-taxation. It is not due to petty waste. I cannot help thinking, with all respect to my hon. Friend who moved this Amendment (Mr. Bottomley), that there is a danger of directing public attention too much to the question of Departmental waste. He made an attack on the waste with regard to the Civil Service. I hope he will allow me to say that I do not really agree with that. I do not think it is true that, speaking generally, the Civil Service is wasteful, and even if it were true that there is waste here and there—it is very bad, it ought to be checked instantly, and it is disastrous from the point of view of its psychological effect on the population, for if they see money being wasted by the Government they will not economise themselves, and they get into extravagant habits which we really cannot afford at the present time—but in itself, if you cut down all the waste, you would not save a very appreciable amount of money year by year.

It is not waste. If you want to economise, broadly, you must economise by policy. I should not be in order in going into details, but, broadly speaking, there are two great departments of policy, foreign and domestic, and I cannot help thinking they are both at fault. I do not want to make an attack on my right hon. Friend. He is responsible, of course, as a Member of the Government for all the policy of the Government, but he is not responsible specially and particularly for the policy that the Government is carrying on, except as Chancellor of the Exchequer. In my judgment, however, the whole foreign policy and the whole domestic policy of the Government have been carried on with the impression, as it were, that we have unlimited funds at our disposal, and not with the view that almost the governing consideration at this moment is the financial situation. I cannot go into detail, of course, but, in my view, their foreign policy must be directed by an adherence to the underlying principles of the League of Nations. When I look at what has been done in North-East Persia, in Mesopotamia, where vast sums of money are being spent, when I see that we have only just avoided, if we have avoided, a Polish war, and the vast expenditure which that would have involved, when I see that we probably have only been saved from that by the most improbable of all accidents, namely, the moderation of the Bolshevik Government, then I must say it seems to me that we have not considered sufficiently the financial situation in directing our foreign policy. It is the same thing, of course, on the domestic side. In my view, we started after the Armistice with a totally wrong point of view. We were going to make a land fit for heroes to live in, we were going to have every kind of development, we started with this, that, and the other development, the most well-known—I was going to say the most notorious—of them being the Ministry of Transport, and all with a view that now the War was over the El Dorado had arrived and we could afford to spend almost anwthing we liked.

That is fundamentally wrong. If we are really in earnest when we talk of economy, which, as Mr. Speaker has said, is always in order, if we really mean that we are going to be economical, we must recognise that you cannot really economise, whether you are a country or a private individual, unless you are prepared to do without something or another. In other words, you have got to realise, and realise fully, the truth of the old maxim that you have got to cut your coat according to your cloth. I am not going into detail, but I was delighted to find my hon. Friend who moved the Amendment adhering to the view which I ventured to express last autumn, that the only way of economising was by what is popularly called rationing the Government expenditure. I expressed that view last autumn, and I still hold to it. My own view is that the Cabinet of the day ought to meet, and the Chancellor of the Exchequer ought to advise the Members what is the limit of expenditure which the country can reasonably stand-That figure, whatever it may be, should-be accepted by the Cabinet, and they should then say to the Departments: "Now it is for you to do the best you can with this amount. You, the War 'Office, will have so much; you, the Admiralty, so much; you, the Education Department, so much; and so on," realising that the question is not whether at particular expenditure is in itself desir- able, but whether we can afford it. That is the real consideration. We cannot afford everything, and you must make your choice and choose those things which are most essential for the country, doing those things and leaving the other things undone. The old theory, which was referred to by the hon. Member who seconded the Amendment (Mr. Palmer), was that the Treasury was to be a watchdog, but I venture to think that that theory is no longer adequate to the present situation. The old plan was that the Treasury was there to watch narrowly the expenditure of each Department and to insist on this or that economy. Personally, I do not believe it was a very good system, because it produced a profound antagonism between the spending Departments and the Treasury. The one idea of the spending Departments was how to get round the Treasury, and the one idea of the Treasury was how to fetter to the utmost the spending Departments. It was not a good plan.

5.0 P.M.

The real object should be to induce in every Department of the Government a desire for economy. Economy imposed on them by the Treasury is a very poor thing, because you cannot be sure you will succeed in really enforcing it. I do not know whether I should be in order in giving one instance of what I mean, but a friend of mine tells me he was sent to an important diplomatic position, and he had some difficulty in obtaining the necessary expenses. He found, when he got out, that relatively a very large sum was allowed for refitting, but it so happened that a previous occupant of the post had entirely refitted the Ambassador's house, so that practically no liability fell upon him. But he received from the Treasury, as a matter of course, this relatively large sum, the greater part of which he, being an honest man, returned. But that is the kind of thing that happens. The Treasury will pass an expenditure which has become habitual and familiar, and will strike out a much more necessary expenditure, merely because it is exceptional. That whole system did not work, in my humble judgment, very well before the War.

My Noble Friend has been in the Foreign Office. Why did not the Foreign Office check that expenditure? I agree with my Noble Friend that the primary duty lies with the Department concerned. The obligation upon the Treasury relieves the Department of none.

My view is that it is no part of the duty of the Under-Secretary of State for Foreign Affairs to look into the accounts of the Foreign Office. They never came before me at all when I was Under-Secretary, and I think if my right hon. Friend asks the present Under-Secretary, he will find that it is still so.

My Noble Friend is a keen economist. Did it never occur to him, when he was Under-Secretary at the Foreign Office, to inquire how the money was spent for which he and the Secretary of State were responsible?

No, Sir. I will tell my right hon. Friend quite frankly why. The duties of the office were enormous and overwhelming. I had the greatest difficulty, being a man of moderate strength, in keeping up with the ordinary duties, which I did to the best of my ability. But the amount of papers I had to read was prodigious. If, in addition, I had been called upon to examine the whole of the details of expenditure, such as the amount spent on clerks, paper and ink, the thing would have been perfectly fantastic, and nobody knows that better than my right hon. Friend. Of course, that must be done by the officials and no one can check it. What you have got to do is to get a different spirit into the whole of the officials. I do not make any attack on them. I have the highest respect for the officials, and always have had; but you have got to get them to realise that one of their duties is to examine all expenditure, just as it is one of their duties, which they discharge with admirable devotion, to carry on the departmental work. It seems to me that if you said to each Department, "Here is so much for you. You will not get more, whatever happens. That is the limit, and you have to make the best of it." Then it will become the duty, and to the interest, of everyone engaged in that Department to make that sum of money go as far as it can, and then the whole spirit of administration—not of the Foreign Office, which spends relatively a very small sum compared with the spending Departments—will become different, and the very object my right hon. Friend desires to achieve, namely, the spirit of economy infused into the whole Departments, would at length be gained. The real truth is—and this is a fact which, I believe, anyone in dealing with his private affairs will recognise—that the only way of economy is to say that for such and such a Department the expenditure shall not exceed a certain sum, and then see that the executive officers do the best they can with the amount so allowed.

That, to my mind, is the only way you can hope to have a real economy and relieve the country from the tremendous burden of taxation. We must realise that we are up against an entirely different situation from that which prevailed before the War. I have often attended Debates in this House before the War in which we deplored the expenditure and taxation, but we all knew —and it was the fact—that there was still a great margin before you approached anything like the taxable limit of this country. It is not so now. You have either reached it or you have got very near it. You have got to have a new system in administration if you want to have a real economy in the future. My right hon. Friend the Chancellor of the Exchequer, when any observations of this kind are made, says, "Point out some particular extravagance in our administration. Select the item which you think is more than we ought to spend." That really is not a fair request to make to any private Member. No one can do that. Moreover, if my argument is right at all, it is not extravagance in this or that item. It is a broad question. Then my right hon. Friend's other favourite reply is that it is not the Government's extravagance, but it is the House of Commons, and that the House of Commons is always pressing the Government to make further expenditure.

My hon. Friend the Member for East Nottingham (Sir J. D. Rees), who can always be relied upon to support the Government, even when they are wrong, says it is the House of Commons. In a sense that is quite true, but I submit that it is the Government's business to guide the House of Commons in this matter. A case for expenditure is put before the Government by an hon. Member. I think it is his duty to submit it to the authority. It is not his duty, I agree, to press it unduly, but it is his duty to submit it. The claim in itself may be quite good, but it is for the Government, taking a broad view of the situation, to say whether it is one of the things that come within the rationed amount of expenditure. If it does not, they ought to refuse it, and be prepared to go to a Division—I am sure my right hon. Friend is always prepared to do it— and let the majority of the House vote against it, if they are really interested in this matter. There is no one who has been in this House for some weeks or months who will say that this House gives an insufficient support to the present Government. The Government can obtain their support from this House— that has always been my experience—if they really desire it, and if the House will not support them, and they are beaten, then, they must do what other Ministries in past times have done, and that is resign. It is no part of the maxims of the Constitution of this country that the Government must never resign, and what I venture to submit is that, if we really want to be in earnest about economy, if we really do believe that taxation has reached a dangerous point, if we really do think it ought to be reduced, then the Government in the first place, and this House in the second, must be prepared for real economy, and that can only be attained, not by cheese-paring, not by diminution even of waste, but by broad lines of policy which they must see are carried out both in foreign and domestic affairs. Without that I am quite satisfied that there is no remedy for the present situation and that we shall go on deploring expenditure and taxation without doing anything effective to curb either the one or the other.

I do not propose to say more than a very few sentences at this stage of the Bill. It has been usual, and it is in accordance, not only with practice, but with obvious rules of Parliamentary convenience, for the discussion on a Revenue Bill to be directed rather to its own provisions with regard to taxation and so forth, than to the general fiscal and financial policy of the country. We have heard nothing so far in the course of this Debate in the way of comment or criticism upon the actual provisions of the Bill, and I will only say that, while I regret some of the provisions, both by way of actual proposals and by way of omission, which the Chancellor of the Exchequer has made, yet, viewing his revenue scheme as a whole, I certainly should not DS prepared to give a vote against the Third Reading of this Bill. I take the view, apart from expressing—and I must not to be taken to express—anything in the nature of an unqualified approval of all the proposals, that the country cannot complain, and the House of Commons cannot complain—neither the one nor the other has any title to complain—that taxation, severe, stringent, drastic in some of its features, taxation which could not be commended under normal conditions as being based upon sound principles, which otherwise is injurious to the development of the trade and finance of the country—the House of Commons, I say, has no title to complain of taxation of that kind, so long as it makes itself responsible, actively or passively, for the expenditure which that taxation is needed to meet. When you have incurred obligations with your eyes open —and if your eyes are not open, it is your own fault; they ought to be open— or with eyes deliberately closed, it is no good when the bill comes in, and obligations have to be met, complaining that the Chancellor of the Exchequer has to impose an unwelcome charge in the shape of taxation on the industry of the country. Therefore, though, as I say, far from giving approval to all the revenue proposals of the Bill, I could hardly, in the existing economic and financial position of the country, oppose any taxation, however severe in its character, and however wide in its scope, provided it is needed—and obviously it is needed—to meet and redeem obligations deliberately incurred. I say that, and I think the House of Commons ought to realise it. My right hon. Friend the Member for the City of London (Sir F. Banbury) the other day, in a somewhat heroic mood, which fits him very well—and, if I may say so, he sets an example to all younger Parliamentarians both in vigilance and in the intrepid courage with which, whether he is in a very small minority or not, he maintains his view —my right hon. Friend said the other day that the only thing for the House of Commons to do was to refuse taxation.

I do not agree with him. I said then, and I repeat to-day, it is for the House of Commons to prevent, so far as it can prevent, the necessity of taxation, or, at any rate, the increase of taxation, such as the renewal of the Excess Profits Duty, by a proper control of expenditure. Although I agree it is only indirectly relevant to the question you have put from the Chair, I hope the House will allow me to say a word or two upon the important points which have been raised, first of all in—if I may say so—the eloquent and persuasive speech made by the hon. Gentleman who moved the Amendment, and emphasised by my Noble Friend who has just sat down. I think it is quite true that expenditure lies at the root of the whole matter, and the real problem, a problem never more urgent and never more difficult than at the present moment, is how the scale of expenditure can be effectively curtailed. It is no good to attack the Chancellor of the Exchequer, though if I held him slack in the performance of his duties I should not hesitate to say so, notwithstanding my life-long friendship with him. The best test of friendship is perhaps not to be candid, but when you see an old friend backsliding from his high and habitual standard of public duty, it is just as well to give him a word of advice lest the facillis descensus Averni should be too rapid.

What I want, as an old Chancellor of the Exchequer, and one who has had a great deal to do with the finance" of this country in pre-War days, is to point out the relevant functions of the Treasury, speaking and acting through the Chancellor of the Exchequer, of the Government as a whole, and of the House of Commons. The Treasury, to use a familiar phrase, is the "constitutional watch-dog," but that does not absolve the individual Departments from their primary duty, before they submit expenditure, of examining it, winnowing it, criticising it, and, not passing it unless urgent considerations make it necessary to do so. The Treasury in pre-War days always subjected even the best approved schemes of the Departments to the most vigilant, and, as I believe, the most effective scrutiny. Perhaps the House will forgive me if I give one illustration. The War Office had been removed from Pall Mall to Whitehall, and the proposal came across Whitehall one day to the Treasury to sanction the expenditure of a very small sum—I think it was £500, not more—for the construction of a subway under Whitehall from the War Office to the Treasury, the object being that, in the event of an invasion, the archives at the War Office might be safely transferred to a place where they would be more secure. This proposal went through the Treasury mill, and was carefully examined before it came to me. Sir George Murray was then Permanent Secretary. The proposal ultimately came to me with this minute, "This proposal ought not to be allowed. The last objective of any intelligent invader of this country would be the War Office." I give that only to show the vigilance—the microscopic and meticulous vigilance—with which, in those days, the Treasury discharged its functions as the watch-dog of public expenditure, and that is the proper way in which the Treasury ought now to discharge its duties, as it always did before the War.

Naturally there has been a certain temporary and provisional relaxation in that habit of vigilance, and I am sure no one would agree with me more than the Chancellor of the Exchequer that, now that war conditions are over, we ought to revert to this prewar method of scrutiny. However small they may be, none of these schemes, even if approved by the Department concerned, should pass the Treasury unless the Treasury is satisfied that the public services cannot be efficiently carried on without them. It is in that sphere—a very large sphere which covers practically the whole of what may be called Departmental extravagance and waste—that the Treasury and the Chancellor of the Exchequer can give really effective supervision. I entirely agree with what the Noble Lord (Lord R. Cecil) said just now, that, although there is a certain amount of inevitable waste and expense in our Departmental administration, that does not go to the root of things. What is of far more importance in dealing with the scale of expenditure with which we are now confronted is the action, not of the Chancellor of the Exchequer, but of the Government as a whole. As my Noble Friend says, it has been an acknowledged maxim of all the great Leaders of this House in the past that policy more than maladministration is the source of waste and extravagance. The Chancellor of the Exchequer is only a single member of the Government. He ought to exercise, and I believe he does exercise, great authority in the Cabinet. He occupies one of the highest and most responsible posts in the State. Like everybody else who is a member of the Cabinet, he has to bear only a part of its corporate responsibility, and it is unfair to visit on him a special share of the responsibility of the Cabinet of which he is, after all, only a co-partner.

That brings me to the function of the House of Commons, and it is of supreme and paramount importance that the House of Commons, as the power on which the Government depends for its authority and for its existence, should scrutinise in these days, with even greater vigilance and suspicion than ever before, new departures in policy which make for greater expenditure. It would be quite out of order if I were to attempt to go in detail into these matters, and I will only take one by way of illustration from the experience of the present year. I take the case of Mesopotamia. A very large sum was allowed in the Estimates presented by the War Office for that part —and it was the major part—of tie cost of our presence and activities in Mesopotamia which the War Office was responsible for. The Estimate was based on the assumption that at the end of the first six months of the financial year the forces in Mesopotamia would foe reduced by one half. I remember myself pointing out at the time how fallacious that prophecy and forecast was likely to be. How do we stand to-day? Not only is the force not going to be reduced by one half, but a large additional force is to be brought from India, and the sum, which at the time, I think, I estimate at something like £30,000,000 as the total cost of our commitments in that part of the world during the present financial year, is, it is quite certain, going to be enormously exceeded. That is a question of policy pure and simple. It is no good blaming the Chancellor of the Exchequer for that. It is the act of the Government as a whole, and if the House of Commons choose, in spite of the protests and the arguments that some of us have put forward, to regard that as a necessary part of our Imperial expenditure for the year, then they must be prepared to pay for it. That is only one illustration, but one might easily take half a dozen more. What I want to make quite clear to the House is the dividing line between the normal and the proper activities of the Treasury as a supervisor of Departmental expenditure, and the far larger and immeasurably more serious responsibility which lies upon the Government as a whole, and upon the House of Commons, which supports the Government and keeps it alive, for new departures of policy and for expansions of policy which entail a largely additional expenditure.

I only want to say one thing more and that is with regard to our Debt. A substantial part of the revenue which it is proposed to raise by this Bill is needed first of all for the services of the National Debt and to make some provision for its redemption. I remember well that the Chancellor of the Exchequer told us when he introduced the Budget that he hoped to be able, out of the funds provided by Ms taxation, old and new, to reduce the Floating Debt by something like £70,000,000. I expressed at the time great apprehension as to whether that would be found possible. We have had Supplementary Estimates already presented which amount to over £20,000,000. I do not know if that was allowed for.

I allowed for £20,000,000, but I did not allow for all the Supplementary Estimates. Part of what is included in the Supplementary Estimates was not foreseen by me and was not included in my original Estimate.

I am very much obliged to my right hon. Friend for his statement. We have now only passed the first three months of this financial year, and we shall be extremely fortunate, certainly fortunate beyond anything we can anticipate from our experience of these three months, if we get through the remaining nine months of the financial year without a very substantial addition in that way. I am sure the House and toy right hon. Friend see with regret, disappointment, and possibly with apprehension, the gradual shrinking, almost to the vanishing point, of the fund of £70,000,000 set aside as a preliminary step towards the liquidation of our Floating Debt. I do not want to enter into anything like a disquisition as to the relative share which the reduction of debt and other phases of national expenditure ought to bear to one another. But there is no doubt whatever in the mind of anybody who knows the the existing financial and industrial situation that a reduction, rapid and upon the largest possible scale, of the Floating Debt is the first condition of a real revival of healthy trade and industry. How can you get this? If you are going by Supplementary Estimates to reduce, and possibly even to annihilate, the original provision made, it is quite clear that the prospect is of the blackest. It all comes back to the same point, that you cannot bring back—there is no question about it—the financial, industrial, and economic situation of this country to a healthy point of new departure, you cannot start it from that point with any real prospect of a substantial and growing advance, unless you are prepared courageously and unflinchingly to face the necessity in every possible direction of adjusting your policy and making it consistent with a lower scale of expenditure, and greater saving. When I say greater saving, I mean not merely saving of waste—that is important—not merely saving of waste, but saving, or rather avoiding the causes which lead to extravagance: in other words, getting back to what is really a sane and rational Imperial policy.

I have listened as, I am sure, has every Member present with great interest to my right hon. Friend (Mr. Asquith). I think I may say also with an almost complete measure of agreement with the principles that he has laid down—not indeed in their application but in the principles themselves. My difficulty in handling this matter is, as my right hon. Friend observed in his opening sentence, that it used to be customary upon the Finance Bill to discuss what was in the Finance Bill, or what was really the Finance Bill. But, as the Noble Lord (Lord R. Cecil) observed, that is an anachronism, a thing from which we have passed away: the discussion on the Finance Bill now is, as nearly as the Chair will allow us on everything which would be in order, on the salary of every Minister. That makes the position very easy for the critic, and very difficult for the Government. The charges are general, but a defence which is general is unconvincing. A defence to be convincing must be particular. But particulars are not admitted. My Noble Friend, for instance, puts down an Amendment which he has not been allowed to move, but he makes the speech which he would have made if he had been allowed to move that Amendment, omitting little details which he would then have filled in, and substituting for attempted proof general observations which, if I meet by a general denial, will not bring conviction to the mind of anyone; if I descend to particulars I am transgressing the rules of order laid down from the Chair.

I myself should be very glad, and the Government would be very glad, to again have a discussion on expenditure such as we had before, a discussion in which these general charges of extravagance, or lack of economy, or unwisdom on the part of the Government would be brought to the test of reasoned debate, judged in our assembly, and decided upon. My Noble Friend, I think, has not much regard for the opinion of the majority here, and therefore I will not say have this matter judged by this assembly, not by the Commons in Parliament assembled, but if it were possible to have the matter debated before an assembly with some knowledge of the facts, I would take any assembly almost, though not quite as I would take the House of Commons, to judge this issue! But it does make it, as I say, a little difficult for me to know how to handle this matter. I cannot compete with the hon. Gentleman who moved the Amendment. He appears before the House as a moralist and a prophet. I do not claim to be either. He is shocked "at the prospect of Chancellors without any sense of shame, Prime Ministers and Chancellors of the Exchequer without any regard for their word, and with an inaccuracy of statement which would not be tolerated in any business assembly." And the hon. Member who seconded the Amendment deplores the cowardice of Ministers who will not solve all his difficulties by the easy fact of resignation, and leaving his colleagues. I am not going to compete with the hon. Member as a prophet. I do not accept him as a judge, or his statement as being fair or impartial criticism as to the honour of Ministers. His prescription is a simple one. "Why pay off our debt? Leave to posterity those obligations which we have incurred; posterity will derive the benefit of our sacrifices; let them pay a part of the debt."

It would take all the taxation in my Budget during his lifetime and mine—I will not put it that way—but it will require such an effort to pay half within a reasonable time that neither——

The hon. Gentleman first of all said I should fix these assets as if they were at their face value. Then he proceeded to say that the major portion of them were worthless. Now he counts them in as part of the contribution made by the present generation in payment of the debt. I really hardly need pursue the matter further. "Let us," he says, "stop this nonsensical talk about our debt reduction, and let the Chancellor of the Exchequer rid himself of the old-fashioned notion of joint Cabinet responsibility." Well, I prefer the older, and I think on the whole, the sounder copybook maxim that you should be loyal to your colleagues and do your best to pay your debts. There is anxiety, there is something more than anxiety in the country. There is a growing irritation at the expenditure for which the Government makes itself responsible. Though I will not make myself responsible for estimates of national income or taxable capacity, because I think they are based on too many hypothetical and disputable calculations, and on these matters there is not agreement amongst those who know. We have reached or about reached the limit of our taxable capacity. If I thought we were going on and adding to the taxation at the rate at which we added to it last year and this year, then, indeed, I should not be anxious to occupy my present position: I do not think I should be very long here. I agree that we are approaching, if we have not reached, the limit of taxation which the country can bear. I agree that there is imposed upon the Government the duty of seeking to promote economy throughout the public services, to prevent waste wherever it occurs, to stop waste; more than that, I agree there is imposed on us an obligation not merely to prevent waste, but to refuse to spend money on things which are in themselves desirable because the total of these things is much more than we can afford. [An HON. MEMBER: "Ambitious schemes."] These are generalities, principles if you like, which are the common property of us all.

One service my Noble Friend renders. I think also my right hon. Friend opposite. He inferentially confirmed, if not in terms, what was said he certainly would not disagree when my Noble Friend said there is a great deal of talk about waste. I do not doubt there was great waste during the War. You could not avoid it. Have not I been hearing for weeks about the waste in businesses in the country? There is waste in every business in the country with proprietors taking a direct interest in it—so I am told by those same business gentlemen. Then hon. Members are surprised that there is any waste in Government Departments. No doubt there was waste. No doubt if it is difficult to get back to the strict ideals of economy which prevailed before the War. That has always been the experience after a war. What my Noble Friend stated is probably true. Stop all wars. That is valuable more for its moral than for its pecuniary results. The amount of saving you effect in that way is not large, and when you want large savings you come at once to questions of policy. My right hon. Friend says that the Treasury should be a vigilant watchdog as of old, and that it should scrutinise with care, and even meticulous care, the expenditure of all Departments. That is where he quarrels with my Noble Friend who objects to meticulous examination by the Treasury of expenditure of sums like £500 by the War Office. He wants us to say to the War Office, "Here is so much money; you cannot have more, and you must cut your coat according to your cloth. Then if they want a passage under Whitehall to convey their archives to the Treasury in case of danger he would allow them to do that, but if you had to garrison them, and a relief force was required, he would say, "I rationed you at the beginning of the year, and if you have not money enough to relieve your garrison, then the garrison must surrender to the enemy." You cannot do it.

You may say, as he asks the House to say, "We will not execute our mandate in Mesopotamia; we will decline responsibility, and we will throw that country back into the hands of those who are strong enough to take it." That is a policy, if you like. It is a policy which was discussed here. I cannot rediscuss it now, because the answer involves a Debate, which cannot be taken on the Finance Bill. What I want the House to realise—and, if I could reach them, I should like the country also to realise— is where the expenditure goes, and what are the limits within which economy is possible. Put very broadly, my right hon. Friend and I are in agreement upon this, that you can make small economies here and there by prevention of waste, but you cannot produce any large effect without giving up something, and probably none of us are agreed upon what we should give up. The Cabinet is a united body, with responsibility, and it is agreed as to what it will pay for and what it will not; but among the critics of the Cabinet there is no such agreement. Each offers to sacrifice which he does not care for, which is often dear to the hearts of somebody else, and each asks for further expenditure on those particular services of which they approve. I submit myself, Mr. Deputy Speaker, to your ruling. I do not wish by anything I say to extend the limits of Debate laid down from the Chair. If I trespass beyond the limits which you think proper, I hope you will indicate it to me at once.

I want the House to realise a little what has been done, and within what limits-reductions are possible. Instructors of the public outside this House, and even some inside the House, talk as if we had had no reductions in expenditure. What are the facts? The War expenditure was steadily rising during the whole period of the War, and by the time of the Armistice it had hardly reached its maximum. For instance, on armaments you could not suddenly reverse the whole process. It took time. The world was very disturbed, and even now peace has not been secured. Peace in Central Europe was not secured on the day the Armistice was signed. It was not certain up to the very last moment that the Treaty of Peace would have been signed at all.

I must trouble the House with one or two figures. The gross expenditure including appropriations in aid in 1918–19, the last of the War years, was £3,146,000,000. Last year we brought it down to £2,160,000,000. This year it is £1,282,000,000, exclusive of money devoted to the reduction of debt. That is a decrease' of £1,000,000,000 in 1920, and a further decrease of £824,000,000 between last year and this year. Is it quite fair to talk as if there had been no effort to reduce expenditure, and as if we were still pouring out money just as we did in the midst of the War? This has been done in spite of the fact that War charges and War pensions have increased. The interest on the debt in 1918–19 was £269,000,000, and now it is £345,000,000. The War pensions in 1918–19 amounted to £50,000,000, and to-day they are £123,000,000. It is in spite of these increases that the large reduction of £824,000,000, as compared with last year, has been made, and further reductions will follow next year.

The Government have decided, as the House well knows, to get rid of subsidies at the earliest moment. If the House will support us, the Post Office will be placed on a paying basis. If the House will support us, the railways will be treated in the same way. The coastal -traffic subsidies have gone and the canal subsidies are going. The coal subsidy has ceased, although advances have to be made in the current year which are repayable to the Exchequer. The price of bread was increased to avoid an increase which would otherwise have been unavoidable in the bread subsidy, and the price of sugar was increased to prevent a subsidy on that article being necessary. Then we come to the Civil Service Estimates. It is the figure for the Civil Service Estimates which is habitually spoken of as being gross Government extravagance. The Civil Service Estimates are mentioned as if it was money spent on civil servants.

I think that here I must give the warning to which the right hon. Gentleman has referred. The whole of the discussion seems to be developing into a supply Debate, and I think it would be wise not to widen it in that way.

The House will at once see my difficulty. There are general charges of extravagance, and no general denial carries conviction to any man's mind, and under the Rules of Procedure I cannot go into details on this occasion. Hon. Members have chosen to raise subjects to which I cannot make a detailed Government defence, and I must confine myself to general principles. I will say in the broadest possible terms that the detailed control of expenditure is going on now and I think has indeed never been more efficiently conducted. I have been Chancellor of the Exchequer a good many years ago as well as now; I have also been Financial Secretary to the Treasury, and I have no hesitation in saying that I do not think Treasury control was ever better exercised before, as far as it is exercisable by Treasury officials, than it is at the present time. I do not know why it is that the War Office always seems to be the habitual butt of the correspondents of the Treasury, but I am informed by the Financial Secretary that even during the War the same kind of examination as that of which my right hon. Friend spoke was extended to their affairs, and when they represented to the Treasury that they could not maintain the efficiency of the officers there without extra rations, my lords replied that they were unable to admit that inefficiency in the War Office staff has resulted from the fact that they were only permitted to enjoy civilian rations. We do exercise that kind of supervision. We exercise it especially in regard to new expenditure. We cannot keep under review all through the year every item of old and recurrent expenditure. We test this expenditure and question it whenever we have any particular occasion. My Noble Friend himself has served in the Foreign Office, and he attacks my Department for the extravagance of the Foreign Office in which he served. I repeat that the primary duty to prevent extravagance and waste lies in the officers of the departments concerned.

My whole purpose was not to attack the Department of my right hon. Friend or any other Department. My contention was that the system was a bad one, and that it was inefficient and ineffective before the War.

6.0 P.M.

I entirely decline to admit the argument of my Noble Friend that unless an office is allowed to spend what money it pleases it is entitled to spend what money it can get, regardless of the public interest or of economy. If I thought the head of any permanent office held that view, I would ask my colleagues and the Minister responsible to dismiss him. It is their business to secure economy, and unless they do there can be no really effective reduction. I believe it is in the course of being done. The real difference between the expenditure of to-day and the lesser expenditure which we hope to reach very soon depends in the first case upon the disappearance of War charges and in the second place on questions of policy. This is not the time to deal with questions of policy. If you want to make large reductions you can make them by abandoning what I think are the natural responsibilities incumbent upon us as a great nation which has played a part second to none in the great struggle which has just ended. You can give up all care for Palestine and other places in the East, and by shirking your responsibilities everywhere you may hope in that obscurity you will be left alone and will be able to realise economy. I believe that to be an ignoble policy. I believe it to be a foolish policy. I do not believe you would purchase security or economy by such a policy. That you should try as soon as possible to reduce your military and naval expenditure, and particularly your military expenditure, I agree. We have tried to do it. We have got as near to rashness in regard to the Army, Navy, and Air Forces as it is possible to do in a world in which we are not the masters. You can do that, and we are trying to do it. When you come to civil expenditure you can refrain from asking for new services, and you can view jealously every new demand for money. You can abolish the bread subsidy and you can get detailed economy and reductions by decreases here and there.

If you want to make a sensible impression you must do it in the sphere of military and naval expenditure or in connection with such things as the bread subsidy, and you will have to accompany it with the most rigorous refusal of new demands. I know and realise the responsibility which falls on the Government. I think my colleagues and myself are trying to discharge that responsibility, but I confess I get a little impatient of this abstract desire for economy on the part of the House of Commons coupled with the continuous and constant pressure, hour after hour and day after day, in correspondence, in questions, in Bills, and in Motions, for increased expenditure in almost every field. If you go outside the House of Commons, which of our critics is consistent and which of our mentors in the Press is an economist throughout? They are economists when denouncing the Government, but in a leading article side by side with that in which they denounce the Government for extravagance they preach a policy which would involve the spending of tens or hundreds of millions. We will do our share to secure economy according to the best of our ability. I hope the House and the country will support us, but if they are to exercise reasoned judgment, if they are to give us real help, it will not be by general denunciations of particular extravagances, but by particular economy and a general resolve to pursue it.

I have to offer only one comment on the closing words of the speech to which we have just listened. So far as this country is involved in any charges because of its foreign policy, and so far as that foreign policy is ambitious, imperialistic and aggressive, the United Kingdom part of the Empire is paying very heavily for the responsibilities which it has undertaken. I want to say there is a large section of the people of this country who do not share those ambitions, who do not accept those responsibilities, who do not approve of that policy, and who object to paying their part of the bill. This House, I believe, prides itself on containing a very large number of hon. and right hon. Gentlemen who, in their constituencies, are described as business men. The hon. Member for Hackney (Mr. Bottomley), who moved the Amendment, put forward what I thought was a most unbusinesslike suggestion, and the most impossible proposal ever recommended to any Minister. If the Chancellor of the Exchequer had to be a Minister of the kind described by the hon. Member for Hackney, he would be turned into a supreme dictator and a financial autocrat, and he would have undisputed personal authority over every other Department of the State. I cannot support a view of that kind. No business man would find it possible to carry it out in practice, if an attempt were made to do it. The proposal is that the Chancellor of the Exchequer should be empowered to say what the limit of expenditure shall be in every other Department, and he should be able to tell another Department that he will find so much money and no more. Imagine what the result would be if the Chancellor of the Exchequer told the Pensions Minister precisely what was the limit of the money with which he would provide him. You may apply that principle to all the spending Departments, but in practice it will react only on the workers.

I doubt whether any Minister at the head of any one Department would himself say that he is capable of forming an opinion as to whether or not his Department is extravagantly or efficiently worked. They are so huge, they employ so many persons, and they are so constantly extending their ramifications because of the changes in our system of Government, that it is physically impossible for a Minister to make himself acquainted with the different details of the huge undertaking for which he is responsible. As one who for a very short time shared certain responsibilities of that nature, I can assure my colleagues that although I am separated from them on many things I have every sympathy for those who are left to discharge these very onerous and exceedingly difficult duties. I think the least a Minister might do, now the condition of war has passed, which made it impossible for any Minister ordinarily to pursue such a policy, would be in these peace days, make it his business as the head of his Department, to require of his chief officials a searching examination into the manner of working of the Department and into the weight and volume of the work or service performed by each individual employed. I do not suggest that a State Department should be deprived of a margin of service to meet emergencies as they arise. I do not suggest that every person employed should be worked extremely hard. We ought, however, to be assured that we are not going to the other extreme, and permitting extravagance and waste which the country cannot afford. Some economies may, therefore, be found in a complete inquiry and examination into the internal workings of these great State Departments. I do not suggest that anything should be done in any way to scare those employed.

I think Members of this House might themselves be made more efficient for the purposes of criticism and of discharging their responsibilities as Members of Parliament if they could get to know more of the inner workings of these great State institutions. It is true, as the Chancellor of the Exchequer said, that we cry for economies at one moment and make demands which involve increased expenditure at another. Why not have a greater number of Committees drawn from that numerous band of business men in this House, and let them make it their business to inquire thoroughly into the business side of these great Departments? Surely they could, without spending much of their time personally, bring their business minds to bear on such a branch of Parliamentary work and thereby render good service to the State. They would be able, by getting lists of staffs and of the duties that are being discharged by the persons employed, together with information as to the actual work that has to be performed—thsy would be able, by applying their great business experience to these things, to form an opinion on the efficiency of the Department, and thereby enable the Minister perhaps to make reforms which would effect considerable economy without in the least reducing the efficiency of the various Departments.

My right hon. Friend the Member for Paisley (Mr. Asquith) made observations on the general character of this Finance Bill with which I must express strong dissent. The right hon. Gentleman said that no class in the country, or in this House, had any cause to complain of the general provisions of the Finance Bill. I want to allege that there is still in this country a very considerable section of people so poor as to need even the support of the subsidies referred to by the right hon. Gentleman—I refer particularly to the bread subsidy—so poor that they are unable to pay taxation direct, low as the level may be; so poor as to be below what is termed the level of subsistence in respect of their earning power. Many of them, technically, are not of the working classes. They wear coats and collars; they are not of the manual labouring classes, but a very large number of them are of that class which is des- cribed as the lower middle class, and they feel extremely the oppression of the burdens of taxation which now rest upon them. That is, of course, even more true of the still poorer class below that particular level. There are a large number of ex-soldiers who risked their lives in the War, and there are also a considerable number of poor pensioners the value of whose pensions has greatly diminished with the increased cost of living. There is a considerable section, which I need not separately name, but which makes up a very large part of the total population, who will feel still further the burdens of the Finance Bill of which the House is to approve this afternoon.

As the Chancellor of the Exchequer hinted at the possible discontinuance of the bread subsidy, I should like to make an observation on that. Why have we such an article of food subsidised at all, at a time when every economy in regard to the State purse is required? Obviously it is that the House is afraid still further to increase the price of bread to poor people. It is recognised that they are too poor, that their earnings are too small, to enable them to pay the market price for the loaf, and we still pay, as a State, something in the region of £1,000,000 a week for the purpose of subsidising bread. The point I want to make is that the State should discover some Other way of relieving the section which is in need of relief, and should withdraw the subsidy from the considerable section which is not in need of it at all. We are all being fed partly, so far as our bread is concerned, at the public expense. The price of the loaf is the same to the rich as to the poor. It ought not to be beyond the resources of the Government to provide assistance where assistance admittedly is necessary, and at the same time to save, as I think, some £1,000,000 a week by not relieving those sections of the community who are well able to pay whatever market price must exist in relation to our bread. From this side of the House the central objection levelled against the Finance Bill is that, as an after-War Finance Bill, it does not recognise what we conceive to be the necessary measures which in these days should be pursued to raise the revenue of the country. It raises money by taxation to a degree never previously attempted, and, if we cannot congratu- late the Chancellor upon anything else, I think we may congratulate him upon the ingenuity and courage he has shown in facing a task which, years ago, would have been declined by any statesman who valued his reputation.

Although, however, in his own way he has shown great courage and ingenuity, I wish that the Chancellor of the Exchequer had faced the great question of a levy on capital from a different angle and with a more sympathetic mind. We approach this matter, not from any standpoint of class interest, nor with any view of hostility to a class which happens to possess capital. I can assure those who do not already know it that we have only the nation's interest in our mind in our advocacy of this line of financial policy. We are convinced that a future Chancellor of the Exchequer, if not the right hon. Gentleman himself, will be driven to this device. It is a device to which Chancellors of the Exchequer must yet resort in order to repay our debt and to reduce the enormous interest to provide which taxes have to be imposed. It is a device which, I am satisfied, will eventually bring greater relief to the well-to-do classes even than to the masses of poor people. I think there are many business men and well-to-do folks in our country who are blind to their own interest in refusing to support this plan of raising money by extraordinary means to meet an extraordinary financial situation. It is clear that the country has the capital; the reserves of wealth are there. The only difference between raising revenue by taxation and by a levy on capital is a difference in period, a difference in point of time; for those who have wealth under their control and capital as their prize will, in the course of a few years, by these very processes of taxation have to pay more than they would be called upon to pay in a short period if a levy on capital were imposed. There is only one place from which you can get the money needed by the State, and that is from where it is. You can extract no more from the masses of the poor people, and the Chancellor of the Exchequer has himself admitted this afternoon that he fears that the limit of taxation has been reached. We have no guarantee that the limit of expenditure has been reached; we have no guarantee that there are to be such changes in our policy that great economies will be effected. The small economies, the petty savings, which sometimes are made so much of matter little in face of such a balance sheet as a Chancellor of the Exchequer has to present to the country in these days.

If I am to advocate a capital levy on some other ground, I put it upon the highest moral ground that can, I think, be cited. We are faced with all these difficulties because of the events of the Great War. To win the War life had to be taken. Money was not taken; money was only lent. There were men who could not give life; there are men who can give money. Life having been taken to save the State physically when it was in danger physically, money now should be requisitioned to save it financially now that it is faced with these financial dangers. That is not an immoral doctrine; it is a doctrine which we believe would secure the State, and would only impose a form of equality as between the man who could only give life and the man who has money for which the State reasonably could call. A short time ago the Chancellor of the Exchequer turned a favourable eye to one section of this subject—the War Fortunes section. But he turned from that again, and we are given to understand now that there is no intention to requisition or to tax specially that class of reserve wealth?—much of it, I think, ill-gotten—covered by the name "War Fortunes." I do not think the Chancellor of the Exchequer has yet submitted to the country any adequate set of reasons for what might be termed his change of attitude. I do not know that at one time he had actually made up his mind, but I am sorry that finally he did make it up in the direction of not calling to the aid of the State these enormous sums which men had no right to make, but which, I agree, many of them could not help making because of the ordinary conditions under which trade and business had to be carried on during the War. By both these lines of financial policy, measures of relief far greater than may be expected from taxation must be given to the country if we are to secure a more settled state of mind than now exists, or is likely to exist in the immediate future. The Government have been driven this Session to press through a Bill dealing with unemployment, to insure men against starvation through being out of work; and it is felt that this winter a very serious unemployment problem will present itself. That problem will present itself very largely because of questions of finance, and it would be worth while-even incurring the displeasure of a considerable section of people who still have these enormous reserves of wealth to save the country from the dangers which lie behind an extension and growth of the rather serious discontent which still prevails. I am afraid that during the winter there will be cause for regretting that a much larger sacrifice has not been called for on the part of the well-to-do-and the richer classes of the country than this Bill embodies. Had the War gone on, it is clear that we should have had to take this step. But, the War being over, we are left with such embarrassing financial problems that a Chancellor of the Exchequer would be fully justified in asking those who have these reserves of capital and wealth to think of their obligations in terms of the War period, and to remember the great physical sacrifices of life and limb that were made-by the masses of poor people.

I have only one other observation to offer. It is a matter for regret that the Chancellor of the Exchequer seems to forget the enormous services rendered to this country by the great co-operative organisations in the course which he has taken of beginning the taxation of the cooperative bodies. This beginning we must resist, though, I suppose, it will be taken by some future Chancellor of the Exchequer as only the start which will justify him in imposing further taxation upon the co-operative bodies. In the earlier days of the War, these bodies exhibited a great degree of public spirit, and were publicly complimented by the Ministers of the day upon the services which they were rendering to the country by helping to keep down prices, and by acting, indeed, although they were co-operators, in keen competition with the private agencies and great traders who had only a private or a personal trade interest to pursue in respect of their business. I think the Chancellor of the Exchequer ought to have been mindful of the public services rendered by those bodies, which are not trading bodies in the ordinary sense of the term, and that he should not have begun this most unjust system of taxation now to be imposed upon co-operative societies. I said that that would be my last observation, but 1 cannot sit down without stating that another provision of the Finance Bill has taken from the country a future means of raising revenue of which the country is and will be in sore need. I refer to the Land Values Duties. Though I do not want to speak too severely of the Prime Minister, I cannot recall a greater instance of political betrayal than on this question of exacting revenue from land. The enormous embarrassments imposed by landowners, by those who own large tracts of urban land, should arouse even business men to the follies and the injustices of the existing system of private land ownership. The House has lost an opportunity of exacting money from people who render no service whatever, a very considerable number of those who merely own the yards of land upon which men have to live and work. They render absolutely no service of any kind from year to year beyond raising these enormous sums from the activities and labours and services of business people, of manual workers, and of all manner of people who must use the land in order to live. I am not applying that, of course, as a sweeping general statement of fact. Undoubtedly there are cases where existing conditions of private land ownership in the case of urban land impose very great disabilities upon those who have to conduct trade and business and earn their living by ordinary industrial effort. Our objection, then, to the Bill in the main is that it proceeds upon wrong lines in raising revenue, and that it has neglected great opportunities for restoring the state of balance to our financial conditions. Being so unbalanced as they are by war circumstances, we regard it as the duty of a Chancellor in these days to neglect no opportunity of speedily bringing our financial conditions back to pre-War conditions.

I will not enter upon the ground which has been already occupied by the formidable forces of the right hon. Gentlemen who have spoken so far in the Debate—the grounds of expenditure, economy and the measure of taxation. The Noble Lord (Lord R. Cecil), in dealing with this latter question of the measure of taxation, in a manner which carried me with him in agreement step by step, referred to the manner of taxa- tion as a matter, in comparison with the other, of secondary importance. To admit that it is so would, I think, be dangerous. To overtax is no doubt the greatest of all dangers in a country's Budget; but it deals an injury which is obvious and the penalty of which must be swift in immediate bankruptcy. To tax in a wrong manner, on the other hand, may deal an injury which is hidden, and the operation of which is delayed and does not appear for many years, but because it is hidden and delayed it is none the less dangerous, and it is a function than which none other can be more important for this House to perform on the Third Reading of the Finance Bill to regard with the greatest particularity the general tendencies of our scheme of taxation in order to see that there is no slight step, even the very slightest, aside from the canons of sound taxation, because it is a peculiar danger that a step, however small, in methods of taxation taken aside is very difficult to retrieve. Is there any such tendency in the general provisions of this Bill as it leaves our hands? I believe there is.

There always seem to be three general ways in which you can view questions of taxation. There is, first of all, the point of view of the tax collector. That is a perfectly simple and definite point of view. He desires to get as much money as he can in as cheap a way and as easy a manner as he can, and that consideration must always be taken into account; but nevertheless it does not in itself provide an adequate and equitable basis for taxation as a whole. Then, in the second place, there is always coming in, as one sees everywhere, the point of view of the social reformer, who views taxation, not as something to get revenue, but as something to effect some other purpose-which he desires, and principally, too he views it as a means of putting something in the way of some form of expenditure which he considers undesirable. That is a tendency which is always discoverable in the taxes on liquor and on luxuries. Or, in the second place, he looks upon taxation as something to counteract the supposed or real inequalities of our economic system, and he does so in general by distinguishing between the sources of income and taxing that source of income which, in his theory at any rate, is the result, not of the efforts of the individual, but the effort of the whole community. That is a tendency in taxation which is discoverable in many ways, for instance, in all those methods of taxation which propose taxes upon unearned income. That tendency, which is so consistently present if not wholly fallacious, leads to very dangerous results. It is a bad thing and not a good thing. A tax is meant to get money and for no secondary purpose. If any other purpose is desired to be achieved, should it not always be achieved by direct legislation intended for that purpose only, and not through the indirect method of a tax? To do it by tax is not good for the Revenue, and is not often a good way of effecting the social reform. Thirdly, to come to what I believe there is no substantial disagreement about— indeed, it is a matter of common-sense, and surely the sound point of view from which to regard taxation—there is the point of view of the taxpayer himself. I think if you look at his point of view, and what is the sound principle of taxation, you will find it is that there should be equality as between taxpayers. In fact, this is that old rule to which lip service is so often paid and which is so often departed from in practice, the rule of equality of sacrifice as between the taxpayers. That I call the taxpayer's consideration. It is what he demands, and I think he demands, moreover, if you get to the bottom of his mind, that you shall tax him so as to obtain equality of sacrifice upon the existing basis of his income as it is at present, regardless of efforts to change it in the direction of readjustments. All three considerations should always be present. You cannot get rid of any one—the tax collector, the social reformer, and the taxpayer. But the more you get rid of the first two and the more you obtain purity of motive in taxation by simply regarding the question of getting the money you want in the manner which will impose equal sacrifice upon the existing income of the taxpayer, the more you are doing the real business of tax getting from the point of view of the Revenue.

May I just glance back at the pre-War state? How far would that accord with this, which, I suggest, is the sound way of looking at the bedrock of taxation? It was based upon Income Tax. The Income Tax is the ideal in order to apply the system of equal sacrifice. It is graduatable in any manner you please. It is imposed only on existing incomes in their present form. It pays no regard to social reform. This being an imperfect world, as an instrument for equal sacrifice the Income Tax, unfortunately, breaks down because it cannot be without undue expense imposed upon the smallest incomes. In our pre-War system we supplemented it then by Customs and Excise in order to exact some contribution and put some burden on the smaller incomes. In general, that was in conformity with the theory. Of course there are many imperfections. In the view of some of us the graduation was by no means adequate to obtain the principle of equality of sacrifice. The Customs and Excise were certainly a very rough-and-ready instrument from the point of view of that principle. Unfortunately, the burden of them was not in proportion to income. It increased as the income diminished. There was undue regard, no doubt, to the point of view of the social reformer, in such matters as the Death Duties, regarding the source of it, but in general our pre-War system was in rough conformity with the common-sense idea of equal sacrifice.

If I may glance at what, if any, change in that general basis is being either effected or confirmed by the present Bill. There are some proposals of the present Bill which are, no doubt, in conformity with the old system, and not at variance with the general idea of equal sacrifice upon the existing basis of income as between all taxpayers. We go back to the old system, with the additions to Income Tax, such as they are, and the additions to Customs and Excise, such as they are. I would also argue that we go back to the old system, and effect what is, on the whole, a step in the right direction, by the abolition of the Land Values taxes and duties. Apart from their principle, which has certainly my support, and the support of many others, I think it is to be admitted that they have taught us a lesson, and the lesson we have learnt again is the importance from the practical point of view of getting clear of efforts for social reform when you are imposing taxes. It is precisely that which in this case has lost both benefits. Because they were confounded together we have not succeeded in achieving what we desired to achieve as regards the reform of our land system, and neither have we succeeded in getting in revenue. It seems to me an almost scintillatingly brilliant instance of how important it is to keep purity of motive in taxation. Let us confess that we have learnt a most important and valuable lesson from it. I can now welcome the withdrawal of those taxes, because it leaves the way clear for the question of land reform to be dealt with in a more practical manner, and that is by direct legislation, and not through indirect methods of taxation. So far, then, it appears to me as if there is no tendency of danger in the general proposals for taxation as they are made in the present Finance Bill.

A step further, and I believe we begin to see where dangerous tendencies are in course of development. That step brings us to the Excess Profits Duty. What are its characteristics in the light of what I have been attempting to set forth? It is a tax upon income of one particular sort in distinction from all other income. It is a tax upon incomes derived from the use of capital. In so far as it discriminates between sources of income in that way, and does not regard the whole income of the taxpayers on the existing basis, it proceeds in total disregard of the principle of equality of sacrifice as between various classes of taxpayers. As between taxpayers in the class which enjoy income derived from the use of capital, and as between the taxpayers of the class which actually pay the taxes, it also disregards any reasonable application of the principle of equality of sacrifice, because it cannot be graduated in the scientific manner in which Income Tax can be graduated. But on the Excess Profits Duty I do not lay so much stress. We are told, and we believe, that it is a temporary tax which in the course of time will disappear.

When we come to the new tax, which is a characteristic feature of this year's Finance Bill, the characteristic dangerous tendencies of the times in taxation finds a remarkable exemplification. I refer to the Corporation Profits Tax. That tax has all the characteristics disregarding the principles of equality of sacrifice to which I have referred in connection with the Excess Profits Duty. It distinguishes between the sources of income It does not take income on the existing basis. It makes an even wider and more rough and ready discrimination and preference, because it is only applied to a smaller and more artificially constituted category—the category of incomes owned by corporations. It is to this tendency that I would refer as one which requires the most careful examination. It has this further tendency, that I believe this tax, which is really coming into existence as a small beginning, but which is only too likely to grow, is made not from the point of view of the convenience of the taxpayer or from the point of view of any social reform on which it is going to operate, but is simply brought into existence for the convenience of the tax collector. It is an example, and so far the most conspicuous example we have had, of the habit contracted during the War—necessarily contracted no doubt, but now equally necessary to be abandoned—of the tax collector dipping his hand into the biggest pool he could find to get money as easily as he could, quite regardless of equity or of consequences. It is in the direction of the concentration of taxes until they become mere levies on the State, and away from the effort that must be made in order that the tax may be accepted by the community to ensure an equitable distribution of taxation upon existing income between all taxpayers. It is that tendency which needs most careful scrutiny and criticism by the House, and an early abandonment by the Treasury as soon as the necessities and the emergencies of war taxation make it possible. If you get into the way of going simply where the money is in a big pool, for convenience sake, regardless of the effort which you ought to make, and which every right-taxing State does make, to nicely adjust the incidence of taxation upon the total income of the taxpayers, you are inflicting a great injustice upon those sources of income upon whom the burden falls.

There is a worse evil than that. You are inflicting also a drain upon the use of capital which, if it becomes a bigger drain than it is at present, may gradually become such as to cause very vital injury to the existing industrial state of the country. Whether the capital system as at present organised is a good system, capable of improvement or not, is another question, which it is impossible to argue out on this occasion. It needs to be changed in the opinion of many of us. It needs many rectifications, but if they are to be made, let us learn a lesson from the Land Values Duties, and do it by direct legislation if it is required, and not do it by this indirect method of taxation, because—and this I believe is the final reason against attempting to effect social reform by these indirect methods—if you place these increasing burdens upon the use of capital simply by taxation, and if they grow until you really wind up the existing capital system, which is by no means an impossibility, you have nothing then ready to put in its place. If, on the other hand, you effect the great change by legislation, you erect another industrial economic structure to take the place of that system. You cannot do it by direct legislation unless, as reasonable men, you devise something to put in its place. If, therefore, my argument is true, that the method now adopted shows a dangerous tendency to get big money regardless of the distribution of the burden, it ought to be possible to suggest an alternative, and I can do it in two words. The ideal tax in accord with the true canons of taxation is the Income Tax, which is capable of being brought into as close relation as is humanly possible with the principles of general equity in taxation. You tap no sources of revenue, as the Noble Lord (Lord R. Cecil) so truly said, by inventing new and fancy objects of taxation. If you assess the whole of the real income to Income Tax, you tax the man and not the thing. Simplify that tax as circumstances necessitate in order that it may bear further and heavy burdens; simplify it, and graduate it up to the degree which is necessary to obtain equality of sacrifice; extend its basis so that some of the burden is felt by all classes in the community, and then you will have laid before you the true and sensible path of taxation, and you can turn aside from such dangerous experiments, perhaps necessary experiments, as are proposed in the present Finance Bill.

I will not follow the lines of argument which my hon. and gallant Friend (Commander Hilton-Young) has so ably put before the House, further than to say that I entirely agree with practically every word he said in his most interesting speech. I regret that the right hon. Member for Miles Platting (Mr. Clynes) has left the House, because in his peroration he regretted that the Land Values Duties had been abandoned as a method of exacting revenue from the land. I will only comment on that to this extent, that if the right hon. Gentleman on behalf of the Labour party really suggests that it is wise to continue a policy in these days which costs us perhaps £5 for every £l we collect, I shall be converted to the idea that Labour is not fit to govern. The right hon. Member for Paisley (Mr. Asquith) fastened on Mesopotamia as one of those very great expenditures which is causing this enormous taxation. There again, I should like to suggest that the right hon. Gentleman and those who sit with him, and who have been most virtuous in calling attention to the expenditure in Mesopotamia, and to the naval and military expenditure, do not explain what they would do if they walked out of these countries or abandoned the safety of the populations under our care. So far as I am aware they have taken no steps to bring any idea forward with regard to domestic legislation, and they have given very little assistance to the Chancellor of the Exchequer when claims for expenditure have been pressed by various Members in connection with their own particular fads.

The Chancellor of the Exchequer has had a very stormy time in the passage of this Finance Bill. Everybody will agree that it was a very courageous effort at the start, and there is no doubt that everyone admires the Chancellor of the Exchequer for the way he has stood up to public opinion. After examining his proposals from every point of view as a business man, I have come to the conclusion that we are compelled to doubt the wisdom of his application of his taxation. I am not going into arguments for and against the Excess Profits Duty and the Corporations Profits Tax, which are the two outstanding features of the Finance Bill and which show real increases and new burdens. That we have had recourse to these vicious taxes is deplorable. The only way to restore the credit of the country and cut down our debt is to bend our minds in the direction of the expansion of industry in this country—the revenue producing industry of this country. It is sometimes forgotten by Members of the Labour party that all revenue comes from productive industry, perhaps not at the moment, but ultimately. Even in the case of those who are vicious enough to have had a wealthy grandfather, or a wealthy great-grandfather who left money to them, it will be found that that money came from productive industry in this country. Therefore, if we are going to build up our strength and to renew our credit, we want to deal very gently with industry in this country, so as to give it the thing it wants above everything else, namely, confidence, which will stimulate expansion. The criticism that every business man would make of the Budget this year is that confidence has been impaired, and the consequence is that the expansion of business is not likely to come as quickly as we desire.

7.0 P.M.

The sledge-hammer method of increasing the Excess Profits Duty has had a serious effect on industry. The Chancellor of the Exchequer tries to justify this heavy taxation upon industry on the ground that we must take the first step towards decreasing the Floating Debt. Nobody will deny that by decreasing the Floating Debt we increase our stability, but I deny that the position is improved by drying up the sources of revenue. In fact, it will take much longer to pay off your Floating Debt if there is no big expansion of industry. To pay off the Floating Debt successfully we must do everything in our power in this House to encourage the expansion of industry. The Chancellor of the Exchequer admits that the Excess Profits Duty is a vicious method which he would not have adopted unless he was driven into a corner. His speeches in the past are sufficient evidence of that. He knew so well the evil effects of the Excess Profits Duty that he even explored the doubtful socialistic avenues of a levy on wealth. Uneasiness in this country, financial and industrial, commenced from the day that he began even to discuss for one moment the question of a levy on wealth. It shook the confidence of the people, and the result immediately was that Excess Profits Duty and other proposals came under a very much more rigorous examination from financial and industrial circles. I hope it is the last word we shall hear of this proposal, for there is no doubt that nothing could do more to prevent expansion, than any talk of a capital levy. The right hon. Member for Platting (Mr. Clynes) told us to-day that life was taken on the one hand and money was not taken on the other. It is only fair to remind those who support the right hon. Gentleman that many of those who gave of their best and lost their sons and relatives were also those who contributed most heavily, from the money point of view, to the War. This question of life ought not to be talked of as the question of one class. Surely it was admitted long ago that the sacrifice was shared equally and nobly by all classes. Let us also be fair to the taxpayers. There is no country in the world which is contributing anything like what the taxpayers of this country are contributing. There is no country where men of moderate means and men of great wealth are giving so ungrudgingly in order to maintain the country, to restore its credit, and to advance social reform. The Chancellor of the Exchequer has explored the avenues of Socialism. Last year he took exception to the suggestion that he had fallen under the spell of Limehouse. He went further than Limehouse when he suggested a levy on any kind of wealth. Why has he not explored other paths more thoroughly? Why has he not explored the path of the forced loan in order to repay the Floating Debt?

We shall never be happy until we have got rid of the Floating Debt. I believe that the fairest method of achieving that end would be the adoption of a forced loan. The simplest and most attractive form that the loan could take would probably be to pay a very small interest, even 2 per cent., free of all taxation and free of Death Duty, so that immediately the Chancellor would be able to repay the Floating Debt and the interest remaining would be very much lower, and by taking the Death Duties now, for that is what it would amount to, he would be spreading the burden over a greater number of years. I would not suggest that a loan be taken on small incomes, but on incomes of £5,000 a year or more. I know the Chancellor stated not long ago that he could not see the difference in principle between a forced loan and a levy on capital. The whole difference is that the one is borrowing and the other is stealing. To get rid of our Floating Debt heroic measures are demanded, and a forced loan is a heroic measure. The other alternative to Excess Profits Duty would be a graduated profits duty. I believe that business men would sooner have this than Excess Profits Duty. I am sure the Chancellor of the Exchequer has had it in his mind repeatedly. At present, by his taxation the Chancellor is paralysing new industry, paralysing the very people who desire to extend their business, and he is not, therefore, taxing equitably forms of wealth according to ability to pay. The great argument against a graduated profits duty is valuation. I would say, trust the people to give a true return of what their business is yielding. If you have real reason to doubt that it is not a true valuation, take powers to examine books.

The main reason why we are considering in this Finance Bill, this colossal taxation, is the increase in expenditure. The Chancellor of the Exchequer says, in effect, "Look at the enormous drop in expenditure." I think the Chancellor of the Exchequer would be greatly, to blame if our War expenditure had not shown an enormous drop. I am not satisfied that our expenditure, apart from War expenditure, has not gone up enormously in the last few years. A point of vital importance is that last year the Chancellor told us we were on the verge of bankruptcy. Ever since then there have been introduced new measures which involve new expenditure. It is true, as has been said, that it is not all waste. Waste is a small part of it. It is due to what one can describe only as wild expenditure of public money. Such expenditure started during the War when there were undoubtedly wasteful methods. I think that the Prime Minister in setting up the Ministry of Munitions did not guard sufficiently against expansion of extravagance. It would not be in order to go into details of expenditure in the Departments, but I must ask the Chancellor whether he is really satisfied with the expenditure for the current year on the bread subsidy, the railway agreements, housing, munitions, mines, and education, which account for a total of £158,000,000. That is where we are going to ruin. It is true that you cannot ration the Army in Mesopotamia, but it is possible to ration the Departments I have mentioned. When the Chancellor of the Exchequer rebukes an hon. Member because he happened to mention the word "education," I would ask him, does he honestly believe that we ought to have increased the cost of education by £33,000,000 after we were told last year that we were on the verge of bankruptcy? The wise man will educate his children well and send them to a university if he can afford it. So it is with the State, but when the State is told that it is on the verge of bankruptcy and such an enormous increase in expenditure is proposed, the right hon. Gentleman ought to say, "We cannot afford to go so far." The nation's capital is being dissipated in this monstrous manner. We know it is necessary to increase teachers' salaries, but this is not the time to build palaces for education purposes, or to be sending motor-cars scores of miles for the conveyance of children from one school to another, or for indulging in any wild extravagances which have not been discussed in this House for two years.

I have mentioned the bread subsidy. The Chancellor feels that it would be the very gravest thing to say that he would get rid of it. I do not suppose you could get rid of the whole of it, but it is time we started to announce that it will be reduced by, say, £5,000,000 every three months, or something of that kind. Last night the right hon. Gentleman seemed to take far too little interest in the suggestion of the hon. Member for Birkenhead (Mr. Bigland). I believe that a scheme has been taken to the Chancellor of the Exchequer for developing a vast tract of country of proved fertility in the Dominion of Canada. This country will not be called upon to provide any capital, but it is asked to guarantee the money to be raised by two States. By this scheme it is anticipated that in three to five years' time it would be possible to put vast quantities of cheap corn on the market. Would the right hon. Gentleman not be wise to look at this question from the point of view of the bread subsidy? That subsidy is going largely into the pockets of the foreigner. If we are to spend vast sums of money, surely it would be a wise insurance to develop some millions of acres of the finest wheat country in the world. We are failing our children if we do not develop the waste places of the Empire. The whole of the Far East is tending in the direction of wheat consumption. The United States, which used to export vast supplies, is now an importing nation. There are yet within the Empire great territories untouched, to which men would be only too ready to go, if the Chancellor of the Exchequer would exercise a little imagination regarding a scheme which will cost this country no money apart from the guaranteeing of credit. It would be a wise policy and would make unnecessary the vicious system of the bread subsidy.

The Chancellor told us to-night that he is getting tired of Members not demanding that expenditure shall not go forward. The responsibility is a joint responsibility, and we ought to be reminded more frequently when pressing for reforms of what the cost will be. I believe that from start to finish of the Unemployment Insurance Bill not a Member asked what it would cost. When I asked the question, I was told it would cost £4,000,000 in a good year when there is not much unemployment. Why should the State be responsible for inefficiency in industry? The industries should be forced to maintain their own unemployed. It was suggested in many newspapers and by certain vociferous people in the City that when the Budget was found to be unpopular the Chancellor should have resigned. I do not agree; but I think he ought to have threatened to resign once a week, when his colleagues kept bringing in these Bills and subsidies. I asked the right hon. Gentleman a few weeks ago whether he would not demand that the Ministry of Munitions Disposals Board and the land valuation staff should be wound up forthwith, and he replied that he would do nothing so foolish; but is it not time for these great spending Departments, which are utterly useless, to be scrapped? It is only by retrenchment that you can cut down expenditure, and unless we cut the expenditure of these great War Departments we are not going to turn the corner. If we are prepared to support the right hon. Gentleman, will he not take his courage in both hands and make a stand against the demands of all these Departments?

How often have I heard in this House the cry of "Economy, economy, but not, oh! not in my constituency!" Even before the War were reductions in the Army urged upon the Government, "but not in my Arsenal," or in the Navy, "but not in the Dreadnought in my shipyard," and now the Noble Lord the Member for Hitchin (Lord E. Cecil) fits new words to an old song and says, "Economy, economy, but not, oh! not in my Department!" It is true the Noble Lord saw waste, and noted it, and deplored it, but did he stop it? Oh no! He says he had not sufficient leisure or strength, but it is not in that way, when economies are noted, spotted, spied, and discovered, and then left to continue, that reductions in expenditure are effected.

I do not know whether my hon. Friend thinks he is making any reference to what I said. I disown it.

My Noble Friend is more ready with criticism than tolerant of it when applied to himself. He twitted me with being a supporter of the Government even when they were wrong, a charge which nobody can bring against himself, even when they are right. My Noble Friend's speech recalled to me an incident long ago when Bismarck, in his masterful way, was taking some line in Europe, and Lord John Russell, who was Prime Minister of this country, was represented looking up at the great Bismarck and saying, "Go on, Bismarck! I would do it myself if I had not such a bad cold." That, I confess, was the effect upon me of the Noble Lord's speech. I cannot understand how mere generalities can really be of any use in the actual reduction of expenditure. The right hon. Gentleman who spoke opposite (Mr. Clynes) wanted the business men in the country to form themselves into a kind of voluntary guild to investigate the administration of the various Government Departments. I wonder if he has ever heard that time is money to business men, and whether the business men who were to come forward for this voluntary act of inspection were to be paid, and, if so, by whom. He spoke of the burden of taxation on the people, which Heaven knows he well might. May one point out to the right hon. Gentleman that taxation is a burden, no matter for what purpose it is imposed, and that nothing in the world imposes so much recurrent, continuous taxation as that policy of social reform of which he himself is such an ardent advocate? He wanted the subsidies divided, so that the bread subsidy should go to those who most needed it, and he actually plotted out a gigantic system of outdoor relief which he would impose upon this unfortunate country, apparently, in perpetuity. He regretted that which everybody, I think, must applaud, and that is the abolition of the Land Taxes, which is one of the glories of the Budget, I think, and I cannot say how I respect and admire a man in the position of the Prime Minister who can come forward and say, "What I advocated proved a mistake: it was a drag on the country, and I myself voluntarily, willingly, and gladly abolish it." The right hon. Gentleman indulged in that cheap, mean, false antithesis of the money of the rich and the life of the poor, as if the rich had not given their blood as freely as the poor in the War, and he talked about their not having given their money. Where does he think the £8,000,000,000 came from that were spent on the War? He said the rich were charging too much for virgin land, but where did he find the virgin land? He must go many, many Miles from Platting to find that. His speech filled me with a sense of despair lest, holding these views, he should really ever be placed in the position occupied by the Chancellor of the Exchequer.

May I be sentenced by a Committee of the whole House to a long term of imprisonment in the crowded limbo which is occupied by long and tedious speakers if I go over any ground that has been covered before, but I want to astonish the Chancellor of the Exchequer, and I confess that I got up to astonish him. I wanted to thank him. He said that nobody thanked him for the concessions he made, and he said so when he was doing something for the widower, in whose virtue the hon. and learned Member for York (Sir J. Butcher) had such a robust faith, and whom he considered so immune from original sin that under no possible circumstances could he enter into any matrimonial relations that were other than of the most irreproachable character. On that occasion the Chancellor expressed a very natural regret that when he did do anything to satisfy the House he got no thanks. Therefore, let me thank him heartily and very sincerely for what he has done for the Double Income Tax payer within the Empire. He has solved the difficulty and has done justice in a case which cried aloud for justice, and he has done it at a time when he is pressed beyond measure for money and at a cost of no less than £4,000,000. As I thanked him for that, I want to ask him to do something for me. I did not put down on Report the Amendments which I put down in Committee because, as the right hon. Gentleman told me he would not accept them, I thought it would be a waste of time. I put before the Chancellor the case under the Corporation Tax of the exceedingly stringent Clause 50, late 45, and I want to take the case of a private company whose members, who necessarily have a controlling interest in their own business, keep banking accounts with their own firms, being bonâ fide private banking accounts. I want to ask him to arrange that in all such cases they shall be allowed interest on such accounts in the calculation of profits; I also ask him to allow more than £1,000 under the Corporation Tax as salary of the managing director. I think a much larger sum should be allowed, but at least, if he insists on keeping £1,000, he should allow an appeal to Somerset House, where no one is likely to go unless they really feel they have suffered under an extreme grievance. I would ask the right hon. Gentleman to provide for these matters in his next Budget, and also for satisfying the genuine grievance of those, who have paid Excess Profits Tax, for ten months during which the Excess Profits Duty was not in force, which he can do, when the tax comes to an end. I have given him papers in all three cases.

I would like to refer to the speech of the hon. Member who moved the Amendment (Mr. Bottomley), and I think he is right in urging that posterity should bear as far as possible a burden which presses so hardly upon us in this generation. We have always been hearing, "What has posterity done for us?" Now let us redress that grievance by giving posterity an opportunity of doing something for us. Let us not be in too great a hurry to wipe out this burden. Let us in our own day enjoy bread and butter for ourselves, and, if possible, even a little jam. The hon. Gentleman did not make a concrete suggestion. He spoke generally of abolishing certain Departments. There is one thing which could be done; I find in going about the country people who cry out about extravagance and point to the Munitions Department and say, "What do we want with that Department when the War is over?" If you alter the title to Liquidation of Munitions Department, and that is all I sup- pose it really is, you would get very much nearer to the facts, and you would present them in a far more palatable form to the public. This is not mere common camouflage, and I suggest that there is real truth in it. If you say that on a certain day a Department shall come to an end, no matter what considerations are advanced to the contrary, that Department does come to an end, and the nucleus which remains is concerned with its liquidation, and a great many people have very unwillingly to relinquish the positions which they held. I am not speaking of something I do not know. I had charge of a very large Department during the War, and I managed to close it on a certain day, although I had given to me the most unanswerable reasons why it should not be closed.

Though general attacks upon the Budget and upon the Government seem to be quite in order, I was sorry to see that when the Chancellor was proceeding to dissect the Civil Service Estimates he was found to be out of order. Since he was out of order, I am afraid I would be also. There again I urge upon the Chancellor that he should alter the title of that particular account, and not allow it to be supposed, as it is all over the country, that Civil Service applies only to the salaries of the Civil Servants. The £17,000,000 out of £558,000,000 is most unscrupulously represented all over the country as being spent in salaries on Civil Servants. These may seem rather elementary kind of proposals to make to a statesman, but I can assure him that the neglect of an elementary precaution like that leads to more unjust and uninformed criticism that he can easily imagine. In addition to the two points I have mentioned, I would ask the Chancellor in his final account of the Excess Profits Duty to make an allowance for the ten months prior to the War for which many firms had to pay. These three points I openly and freely confess chiefly affect large firms in a large way of business. For the life of me I cannot make out what is the objection to large firms. They are doing more business and are of more benefit to the country than small firms. I have never been able to understand the superiority of the small nation and the small firm, the principal advocate of which in this House is the hon. Member for Canterbury (Mr. R.

McNeill), who does not illustrate his theme in his own person. I deplore the reception of any actual reduction in expenditure when it is suggested by the Chancellor. If the Government propose to take any step to reduce the subsidies there is an immediate outcry. When the Budget is debated up pops an hon. Gentleman opposite to introduce the hardy vote catching annual, the abolition of the tea duty. With all my heart I agree with the Chancellor that every hour and every day, and particularly when the House sits on Friday, when the spendthrift private member runs riot, there are suggestions of more and more expenditure. He is urged to introduce more social reform which costs ever-recurring expenditure. We have subsidies and refugee camps for Armenia and kingdoms for Arabs, and every kind of expense pressed on the Government, and directly the Bill is presented there is the same sort of objection taken as in private life to a bill when you had what you wanted and do not want to pay for it. I ask the Chancellor to believe, though I have not followed the time-honoured practice of putting down Amendments or speaking on them three times, they are none the less worthy of his attention, and I hope he will give that attention to the three matters I have mentioned today before, next year, he brings in his Budget.

The Noble Lord the Member for Hitchin (Lord R. Cecil) referred in his speech to the skill and determination with which the Chancellor has carried this Finance Bill through the House. As one who has possibly given him as much trouble as any Member in the House with regard to the Amendments I put down, I should like to join with the Noble Lord in what he said. I realise that during the past two months the task of the Chancellor has been an exceedingly arduous one, and I take this opportunity to acknowledge the courtesy and good temper with which he has carried through every stage. Let me also pay a tribute to the Financial Secretary to the Treasury (Mr. Baldwin), who has not only been prepared to take the place of his Chief from time to time, but has also been ready to give him a glowing testimonial, if ever his popularity seemed to be waning with the House. During the few months the Bill has been before the House we have seen objection raised to various taxes, and in some cases from what may be called purely party views, and in other cases from groups of people. The principal one, from the party point of view, has been that with regard to the Land Values Duties. It was a regret to many of us on this side of the House to witness the repeal of those duties, and it was still more surprising that the right of repayment of duties already paid has been given by this Bill. I am sure everybody regards the repeal of those duties as a victory for the Conservative side of the Coalition. They have obtained it as part of their share of the plunder of the Government Coalition. We regard this to a certain extent as a satisfactory thing because it does make one great difference between the policy of those on this side of the House and those on the other side. This question of Land Duties will have to be fought all over again, and those of us who venture to make speeches from platforms will have the satisfaction of using the pungent arguments already used by the Prime Minister and the Secretary of State for War in past days. On this side, and this is another matter of party difference, we cannot agree to the continuation, nor shall we agree in the future, of the protective and preferential duties which have been continued in the present Bill. We feel, too, that the Tea and Sugar Duties, which are imposed at the highest rate ever known, could, for reasons already given and with great wisdom, be now reduced or altogether repealed. The only relief with regard to Customs and Excise granted through all the stages of this Bill has been upon champagne. In the Committee stage the Chancellor held out the hope that he would also give way on cigars, but he found that so much objection was taken to the giving way on champagne that he adhered to his original proposal as to cigars.

That ends what I may call the party differences between us and the Chancellor of the Exchequer. We have had other sections of the House, without distinction of party, objecting first to the Excess Profits Duty, and then to the Corporation Profits Tax. I am not going to discuss those questions further as I have already had the opportunity of doing so, except to say that I think it is very unfortunate that the Chancellor was so determined with regard to the taxation of co-operative societies. The Corporation Profits Tax as revenue will not be much from them. There is an easy way of evasion or of so arranging affairs that the Chancellor will obtain very little revenue, and the matter is one which has stirred some hundreds of thousands of people whom it was quite unnecessary to arouse at the present time.

One of those who looks down on our proceedings from the Press Gallery and expresses his views daily about our Debates said a few days ago that the House when it was discussing a Finance Bill was like a number of persons who had shared and enjoyed an expensive dinner and who were wrangling as to who should pay for it. That is a little inaccurate, as the private Members of the House have no opportunity of choosing the dinner. It is the Government who chooses the dinner, and the private Members of the House surely have the right to express the opinion that the dinner was too expensive, and that a dinner equally nourishing, sustaining and palatable could be obtained for much less money. It has been agreed this afternoon that it is the policy of the Government that is the cause of the expenditure of the nation, and while, to a certain extent, the House of Commons votes that expenditure, in many instances the policy has been already acted on and it is impossible for the House to deal with it. We are up against the fact, as several speakers have pointed out, that we are in grave danger of being over taxed as a nation, and I refer both to indirect as well as to direct taxes. The Chancellor relies mainly on direct taxes for his revenue, that is Income Tax, Excess Profits Duty and Corporation Tax.

In Committee stage I ventured to suggest that we should look at the question from this point of view. All businesses in the country, individuals, firms and companies are making a certain amount of profits, and all those profits combined are estimated to amount to £1,100,000,000 per year. At the present time the Chancellor is taking from that pool just about half in direct taxation. He is taking £300,000,000 in Excess Profits Duty, £35,000,000 in Corporation Profits Tax, and £230,000,000 in Income Tax, and what we have to ask ourselves, assuming for the moment that it is necessary to tax profits to that extent, is whether the Chancellor of the Exchequer is taking it from the pool in the wisest possible way, having regard to the business of the country? Accepting as correct the estimate that we are making £1,100,000,000 profits in all the businesses, I want to ask the House to examine where we are making those profits. We make them in two ways—in our home trade, and by selling abroad. We are a small island, and the prosperity of this country in the future, as in the past, depends on our foreign trade. At the present time we have about £1,300,000,000 of exports, and I think we may say, having regard to prices, that on that amount we are making £325,000,000 profit. Those profits are made by people who are directly exporting goods. But every man who exports has, in his turn, bought raw materials from other firms in this country who themselves make profits on those materials. Take the man who sells a ship abroad. He has bought the timber, and the steel, and all sorts of other things from other firms in the country who, in their turn, have made profits, so that the actual profit on that ship is not, so far as the country is concerned, merely the profit which the shipbuilder gets. It is the shipbuilder's profit, plus the profits made on the materials supplied to him by other firms, so that the exports yield to the exporters, about £325,000,000 profit, and the subsidiary persons, to whom I have referred, have probably made £100,000,000 more. Then there are the re-exports of foreign and colonial merchandise, which we bring into this country and sell abroad. They amount to about £270,000,000 a year, and, taking the profit on them at 10 per cent., that gives another £27,000,000. Then there are shipping and banking services which Great Britain is rendering to foreign countries. I think we may say those amount to £100,000,000 a year. Adding up all these, we are probably making on our foreign trade at the present time about £550,000,000—that is, half the profits which the trades, businesses and professions of this country are making—out of goods we sell abroad.

Surely it ought to be our object to sell as much abroad as we possibly can, and as little in this country as we possibly can, because, obviously, any sale in this country on which a profit is made is not increasing the wealth of the nation, but any goods we sell abroad, and on which we get a profit, is directly increasing our wealth. How are we to increase our foreign trade so that the pool of profits, at present estimated at £1,100,000,000, may be increased; and to what extent is it being prevented by present taxation? The less we use at home at the present time the more we shall have to sell abroad. There is a great demand abroad for goods, and we can sell everything we can make. The less the people of this nation use their purchasing power, the more goods we can sell abroad, and the wealthier shall we become as a nation. But the most important thing is increased production. The more goods we can produce, the more we shall have to sell abroad. There are two sets of people who want encouraging for increased production. The first is the employers, the men who own the businesses; and the second is the workers, whose support it is equally necessary to get if we are to have increased production. The way in which taxes have been imposed in this Budget, to my mind, are not giving any incentive; in fact, they are doing the opposite with regard to both those sets of people. The employer—the man who owns a business, or the director of a company—has been discouraged, owing to the way in which the Excess Profits Duty has been imposed upon him when he thought it was to go. We all know it has been a great discouragement. The worker, on the other hand, has had no encouragement offered him at all, in the sense of making him feel that he is any better off now than he was before the War. His tea duty is the same, his sugar duty is the same, and last week the President of the Board of Trade, when he was addressing the miners, could not find anything better to-say to them than that, while their wages had gone up 154 per cent., the cost of living had only gone up 152 per cent. When that is the best thing the President of the Board of Trade can say to a body of men like that, it is not much encouragement, and when he tried to assist his case by telling the miners that they were better off than the engineers, one can quite-understand the general workers throughout the country saying to themselves, "You want us to produce more, and do better than we did before the War, yet here we are, with the cost of living out-chasing the rise in our wages all the time."

I do believe it would be better for the Chancellor of the Exchequer, keeping in mind for the moment the desirability of increased production, increased sales abroad, and increased profits from trade abroad, to sacrifice these indirect taxes on tea and sugar—£60,000,000—and take his chance upon the increased pool of profits on which he would levy Excess Profits Duty, Corporations Tax, and Income Tax, because if he repealed altogether the Tea and Sugar Duties, it would have such a psychological effect throughout the whole nation that every factory in the country would get increased production. Although it is too late now to do anything in this Budget, I do hope the Chancellor of the Exchequer, before he comes to frame his Budget next year, will consider whether the manner in which he is taxing profits by means of a 60 per cent. Excess Profits Duty is the best way to take the £565,000,000 which he feels necessary for his purpose. I think he will find, on consideration, that he can get the same amount in a much better way, without taking away that incentive to business which is needed. I think he will also find that, if he will repeal altogether the Tea and Sugar Duties, it will have such a psychological effect on the workers that they will do better work, and in that way the whole trade and industry of the country will benefit.

I want to ask the Chancellor of the Exchequer for some explanation arising out of the tax on tobacco. We were told at the time the tax on tobacco was raised from 6s. 5d. to 8s. 2d., in 1918 that the proposition was that it would make a total increased charge of 2s. 8d., of which the State would take 1s. 9d., leaving a margin of 11d. to allow for compensation for loss of trade. But in the Budget speech that the Chancellor of the Exchequer made this year he told the House that there had been an increased consumption of tobacco amounting to 36,000,000 lb. That means, of course, that a nice little nest-egg, namely, £1,650,000, has gone to those tobacconists. If one turns to the balance sheet of a typical company like the British-American Tobacco Company, we find that in 1917 this company made £2,333,361 profit, and in 1919 £4,912,733 profit, paying a dividend of 30 per cent., free of Income Tax. If the hon. Member below the gangway was correct, as he tried to make us believe, as to the honesty of employers of labour, and the honesty of merchants generally, surely on looking over their profit and loss account, and seeing what had accrued as the result of the mistaken estimate of the Chancellor of the Exchequer, voluntarily, as conscience money, they would at least have returned that amount of money which is due to the nation, because it was budgeted for in allowing for a decrease in the consumption of tobacco. It is a clear gain of £1,650,000, and I submit that, in these days, when every Member, whether on the Government side or the Labour side, is complaining of the Chancellor putting his hand in every pocket, it is time some provision was made to try to get back from the tobacco companies that sum of money which we regard as direct exploitation. The hon. Member the Grand Mufti for Nottingham wanted the burden passed on to posterity. I want to suggest that it takes a gentleman who is past the prime of life to propose, with some degree of equanimity, that it should go on to posterity. It is a nice sort of proposition—£350,000,000 a year paid in interest on money lent. If you assume a fifty-week working year, it means one-tenth of the total product of the year's output, and it further means that the workpeople of the next generation would have to work five weeks every year in order to pay interest on the money lent. I think with the example of other countries facing us, whether hon. Members opposite like it or not, the Chancellor of the Exchequer will be compelled eventually to face the proposition, which is regarded as mere Socialism and Bolshevism at the moment, but which, I am afraid, in the next six or eight months will become such a national necessity that a capital levy will be considered as a practical proposition, as so many of the terms of the philosophic socialist have become practical politics during the last five years.

May I appeal to the House to come to a decision? There is a very important private Bill coming on at 8.15, and we do not want the Division held over.

8.0 P.M.

I have no intention of talking the matter out. I only wish to make one small protest to the Chancellor of the Exchequer, and that is against an item of the Budget, to which I object very much, namely, the tax on musical instruments and toys. I hold a letter in which a merchant appealed against the tax on accordions. I will read out the very short reply that he received from the Treasury:

Members in undertaking colossal expenditure abroad and elsewhere which could easily have been avoided, and events have now shown that not only could that expenditure have been avoided, but that it has done no discoverable good whatever, and I think it ill becomes those Members to complain and to squeal about this taxation when they brought a great measure of it upon themselves.

Question, "That the words proposed to be left out stand part of the Question," put, and agreed to.

Bill read the Third time, and passed.

Post Office and Telegraph Bill

Order for Second Reading read.

Motion made, and Question proposed, "That the Bill be now read a Second, time."—( Lord Edmund Talbot. )

I do not think this Bill can be allowed to go through without some explanation, and before the Government makes its explanation I would like to make a protest against the proposed increases of ordinary postage. I wish to point out that this is going to hit a very deserving class of trader. There is a trade which has been brought to a very high state of perfection on the other side of the Atlantic and is making a very useful beginning in this country. It is an economic form of trading, and it is a trade that can be conducted with, comparatively, a small capital. It is giving employment to a number of ex-service officers and men, and it is worth encouragement, and unless some concessions are made, which I hope will be possible on the Committee stage, the new increased postage rates are going to hit this trade very hard indeed. I am referring particularly to mail order businesses. Hon. Members will be aware that these are businesses conducted with small staffs through advertisements in the papers. There is a very important and a very-deserving trade which would have the support, I am sure, of the President of the Board of Trade, and of the Minister of Food if he were here, and that is the mail order business in yeast. In the North of England, and especially in-Yorkshire, which is my county, the practice of home-baking has been continued. A very important trade is done in sending yeast through the post. The prices charged are very low indeed. The present prices are—for two ounces of yeast 4¾d., for three ounces 4½d., and so on, including postage at the present rates. If you are going to clap on this extra postage, as has been done, such a business as that is going to be very hard hit. The mention of these sums will show the House that I am right in saying that you cannot put an extra 2d. on to an article costing 2¾d., which is sent out every day or every other day —in most households they bake twice a week, and some three times a week—without hitting the business very hard, and what is going to happen is, that you are not only going to kill this very important business of sending yeast by post, but you are going to discourage home baking, and I am sure every economist in this House—and I am glad to see a representative of the Ministry of Food on the Treasury Bench—will agree that home baking is a very desirable thing to encourage. Home-made bread is healthier and is less wasted than the bread bought from the bakers. I have a very strongly worded resolution from the Chamber of Trade of the important city I have the honour to represent, pointing out that the increased charges are going to affect business very much indeed. It is pointed out that this increase particularly affects Hull, because Hull, being near the Continent, does a considerable business by parcel post. A considerable export trade is done through the post with continental countries. It was continued even during the War, and it is now reviving again, and a very considerable blow will be struck against this form of trade by the proposed increases of postage, and unless I get some promise of consideration from the Postmaster-General for purely business trans-factions done through the post, I shall be compelled to vote against the Bill. I do not wish to decrease the revenue, but I believe this will be a case of destroying a source of revenue. You may make a little more by extra stamps, but you are going to lose trade, and in the long run the country and the Exchequer are not going to benefit. I will read two or three lines from this very carefully thought-out Resolution that I have received from the Hull District Chamber of Trade. It says:

I repeat, this cheap means of communication has been of great assistance in building up the civilisation—such as it is—which we enjoy in this country. Consider the long fight made in the past by the late Sir Henniker Heaton and others for the penny postage. It went on for thirty or forty years, but eventually was won. Now we are asked to surrender the fruits of that long fight. The House will do well to ponder it. The same thing applies, but with even greater weight, I think, to the increased telegraphic charges. It is all very well in theory to say that the Post Office ought to pay its way. That theory can be carried too far. Cheap telegrams undoubtedly benefit business, and I am not sure whether it would not be for the general benefit to look at it from the broadest aspect, and, if necessary, continue the subsidy, and not raise the price of telegrams. I must say the main objection to dropping the cheap postage is partly sentimental, though a special case may be made in respect to the mail order business. But the objection to increased charges for telegrams is purely a business objection. After all, the greater proportion of telegrams sent are in connection with business, and it is a tremendous boon to the country to have a cheap telegraphic system. I am not at all sure that it would not pay the Government to keep on, more or less, with a subsidy, if necessary, in order not to put up the price of telegrams further. People write letters for sentiment,

It being a quarter-past Eight of the clock, and there being Private Business set down by direction of the Chairman of Ways and Means under Standing Order No. 8, further Proceeding was postponed without Question put.

Private Business

Edinburgh Boundaries Extension and Tramways (Re-Committed) Bill

[Lords]. (By Order.)

Order for Consideration, as amended, read.

Motion made, and Question proposed, "That the Bill, as amended, be now considered."

I beg to move, to leave out from the word "That" to the end of the Question, and to add instead thereof the words ing that, the House sent the Bill back, because it felt that it was not within the power or duty of the House to compel anybody to a forced amalgamation. It has been done on one or two occasions: up till about twenty years ago it was practically never done. The wishes of the local people were always treated with the greatest possible respect by this House of Commons. There were one or two cases within the last twenty years, but the principle for which I am contending was reaffirmed by this very Committee, presided over by one of the most experienced of those who preside over these Committees. The principle was reaffirmed that, unless there were some exceptional and public reasons, some great menace to the welfare of these particular communities, some overriding and overwhelming reasons—unless there was substantial consent on the part of both boroughs, there should be no forced union. Nothing has happened since the House affirmed that, or since it was remitted to the Committee, except that the Committee have taken upon themselves to tell the House of Commons that they knew better what was best than the House of Commons.

The question of general principle is not a thing upon which details need to be given. The facts are patent to us all. Before the House of Lords Committee sat, Leith took a plebiscite in which it said by an overwhelming majority that they preferred to remain with their municipal freedom. A second plebiscite was taken which was even stronger and more emphatic than the first. These are facts which this House can deal with just as well as any Committee, and that question being sent back to the Committee, it was the duty of that Committee to get some new facts and data, and present not an ipse dixit, ex cathedra, and a statement of its opinion, but to give to us in their report the precise reasons of overwhelming public importance which they had considered, and which had been brought before them, and which lead them to bring up the Bill again to the House of Commons. Then we should have been able to judge whether the reasons they had given were of that nature. Nothing of the kind has been done. It is therefore a question whether this Committee or the House is to have the final say.

If we are not to have the right to do that, why is the Bill here? This measure has come before us in order that we may exercise our judgment, and it is no disrespect to say that upon the fundamental question of principle this House differs from the Committee. Upon detailed questions I know Leith and Edinburgh, and although Edinburgh has surrounded Leith by taking up a considerable part of the vacant ground which is not yet built upon, Leith itself has always been a corporate entity. Leith contains Victoria Park, and a good many open spaces. It is very densely populated, more so than most Scottish burghs. I cannot see what amalgamation with Edinburgh will do in diminishing the density of the population, and none of these things can be effected by municipal absorption. Leith is an active little burgh, and the best type of municipal burgh with its local town council right in the middle of it, and it is possible for the 18 men who form the town council to conduct the business of the burgh and attend to their own businesses. There has been no plebiscite in Edinburgh on this subject, and the only letter I have received has been from an Edinburgh gentleman who congratulated me from Edinburgh on the fact that we had succeeded for the time being in defeating this proposal.

The Leith town council meets in the middle of the burgh, and the business men on the council are able to attend to their business, and also attend the town council meetings and conduct its municipal affairs, and nothing is better for the conduct of public life in a burgh than that you should get, not the whole time man who has retired from business and whose mind has ceased to be as active as it was, but the men who are able to afford some brief period of their time to the management of the affairs of the burgh, and a few hours of the time of a good business man per week is worth the whole time of a man who has ceased to be engaged in the active affairs of life. If you amalgamate Leith with Edinburgh its representation will be cut down, and the Leith councillors would have to go a long distance to the Edinburgh town council meetings where, instead of being in control, they would become a mere fraction of a large assembly.

In the last memorandum that was sent out Edinburgh claimed in support of this amalgamation that the Leith rates were higher by 6d. than the rates of Edinburgh, and that the Leith ratepayers would save something by joining up with Edinburgh. The Leith ratepayers know that, and in spite of it they desire to remain a separate burgh. Sentimental feeling and local patriotism is the thing that keeps the whole community going, and if you once sneer at a thing and say "all your objections are purely sentimental and we are practical" I say that if you abolish sentiment you abolish local patriotism, and you abolish the driving power that makes for efficiency. I submit that this House will be doing the gravest injustice if it adopts this amalgamation when the feeling of Leith is so strongly against it. Most hon. Members will have received a copy of a letter written by Lord Rosebery in which he said that he could not understand what Edinburgh hoped to gain by this amalgamation. His Lordship writes:

That may be so, but the Leith people live in Leith. Lord Rosebery says he does not know whether the Edinburgh people want it or not. We know that their representatives have sought it for many years. The last attempt they made was in 1896, when the fullest investigation was entered upon. On that occasion Edinburgh had the audacity to make charges to this Government against me for which there was no foundation. They have not repeated them on the present occasion, but, as the result of their putting them forward on the previous occasion, the Committee then sitting threw out the Bill on their own evidence. These two municipalities have treated each other with the greatest kindness and consideration. Edinburgh has admitted, through her leading officials, that Leith is a well-governed municipality and that its work is well done. They admit that they have no fault to find with Leith, and Leith has adopted exactly the same attitude towards Edinburgh. Therefore, it may be agreed there is no municipal advantage to be derived from amalgamation. It is suggested there are certain trusts, water and gas trusts, that would be better if amalgamated under one authority, namely, the Edinburgh City Council. I join issue with that suggestion. Gas and water are highly technical questions which are far better dealt with by an ad hoc Commission. Take the case of a great city like Glasgow. There you have the Clyde Trust—a separate body from the City Council. I venture to assert it is very doubtful if the Clyde would have been the river it is if it had been left to the Town Council to develop—to a body so busy with all the other affairs of the city. Therefore, I suggest there is no real substance in that argument.

The work of these bodies has to be done. You do not diminish the work by gathering them together under one roof. You have practically the same number of clerks, the same heads of Departments, and the same amount of work to be done. You do not diminish the cost. I remember reading in a newspaper at the time this Bill went through Committee that one immediate result was a considerable rise in the emoluments of a large number of officials because of the increased work which would be thrown on them. [An HON. MEMBER: "No, no!"] Well, it was reported in the Press. The increases may have been suspended when it was seen how things were going, but that evidently was the intention, and, therefore, I suggest there is no economy whatever likely to result from this amalgamation. I read the speeches of the leaders for both sides in the last Debate, and I do not find any indication of any substantial economy that may result. Look at the history of the two places. Edinburgh is a dignified city, totally different fundamentally from Leith. It has its scholastic institutions, it has no resemblance to Leith at all. Leith is a busy hive of industry, everybody is rushing through the streets intent on business. Edinburgh is totally different. How can the two be satisfactorily joined together. The whole history, the whole characteristics of the citizens of the two places are entirely different. Usually, when amalgamations are carried out, it is because a city or town overflows into the country. But Leith does not overflow into Edinburgh; it is a distinct entity. It has a definite municipal history, which has resisted many years these attempts at amalgamation. I am afraid that the Committee which dealt with this question lost itself in the big mass of detail which was prepared in support of Edinburgh's case—in the photographs taken from an aeroplane, and in the illustrated maps, and in all the other details of the scheme. They forgot the main fundamental principle which should be observed if this House is to maintain its rule the principle of the right of self-determination as to local government, one of the most sacred and cherished rights which this House has always been the first to defend.

I rise to second the Amendment, in order that the House of Commons may for a few minutes be free from the Scottish accent and hear an English voice. It may be regarded as presumptuous for an ordinary English Member to dare to interfere with this matter, but Scottish Members have never been backward in intervening in English affairs. [An HON. MEMBER: "With a beneficent influence"!] Yes, it may be to hold the scales equally between the contending parties, and in this case we want to hold the scales justly between the most respected hon. Member for East Edinburgh (Mr. Hogge), and the hon. Member who has put up such a great fight for the burgh of Leith. Lord Rosebery has said that he is in an embarrassing position. I cannot imagine a more embarrassing position than that of the hon. Member for East Edinburgh, who is standing up for the big battalions against a little burgh.

May I suggest that this is not a contest between two hon. Members. It is more than that.

Yes, some of us look at this from the point of view that a great principle is involved, although there is also the personal equation entering into this discussion. I remember the admirable speech of the hon. Member for East Edinburgh, which was so utterly out of touch with his idea on self-determination and Home Rule, and I do suggest that, if there is one hon. Member in this House who must feel himself in an embarrassing position it is the hon. Member for East Edinburgh. I think we have been very badly treated by the Committee to whom we recommitted this Bill, and I hope that the hon. Member for Cleveland (Sir Park Goff) will consider it incumbent upon him to justify in this House the rather cavalier attitude of himself and his Committee on this matter. We sent this Bill back to the Committee, as the House knows, with this instruction:

"That, subject to special considerations of public advantage, no Provisional Order for further extension should be brought before Parliament for confirmation which has not previously received the substantial report of the ratepayers in the areas proposed to be incorporated."

Surely we need not go any further in this matter; we can leave it there. I challenge the hon. Member for Cleveland to say that the Instruction we sent to his Committee does not represent our objection to this amalgamation; in other words, to say that Leith has given the substantial support of its ratepayers in the areas proposed to be incorporated. That seems to me to be the crux of the whole matter. If it could be shown on public grounds that Edinburgh should absorb Leith, and that Leith is willing to be absorbed—or, as an hon. Member put it the other night, that Leith was wooed by Edinburgh and readily succumbed to Edinburgh's blandishments —we should have nothing more to say. This instruction to the Committee, however, most specifically states that, unless it can be shown, by a plebiscite or by some other method of public approval, that the area intended to be incorporated has signified its desire to be incorporated, then it is, primâ facie, a case which should be turned down. I appeal to the House to-night to say that no case has been shown for the absorption of Leith. We heard the speech of my hon. Friend the Member for East Edinburgh (Mr. Hogge), but, in spite of all its eloquence and persuasiveness, we definitely came to the conclusion that no proper case had been made out, and we sent this Bill back to the Committee with the Instruction which, I contend, the hon. Member for Cleveland has not carefully carried out. I am sure he will not send back the Bill to this House without giving some reasons for the action which he and his Committee have taken. We also heard the Chairman of Committees, who took up, not a persuasive attitude, but the judicial attitude of the Chairman of Committees, and put before us, in terms which we readily accepted, the position which he regarded as the right position in this matter; but, in spite of all the influence which he has a right to expect that he can bring to bear on this House, we thought that this was a case in which we ought to send the Bill back to the Committee. Nothing that has happened since—all the lobbying that has been going on, all the solemn and eloquent appeals from the Lord Provost of Edinburgh, and even the active efforts of my somewhat energetic Friend who stands for Leith in this matter—nothing has changed my opinion that we have a right to say that, unless the smaller burgh desires to be absorbed, Edinburgh, for the sake of sheer aggrandisement, has no right to take little Leith into its enormous maw. From all that I hear, I understand that Edinburgh is a little jealous of Glasgow. Glasgow has taken in certain areas, and it is a large and prosperous and flourishing place. But Edinburgh, with all its historic associations, could quite well be content to remain as it is. If it could be shown that Leith would be advantaged by being absorbed by Edinburgh, and that its municipal and corporate life would be brought into greater fulfilment, I think a good case would be made out for Edinburgh, and I think that the hon. Member for East Edinburgh (Mr. Hogge) did attempt to show that Edinburgh had a just claim to play the Hun with little Leith. Nevertheless we came to the conclusion that Edinburgh had not made out its case, and, in spite of the somewhat cavalier conduct of the Committee, nothing has happened since to alter that opinion. I hope the House will join with my hon. Friend and those of us who think with him in supporting this Amendment.

I intervene at once because the House of Commons, in its decision to-night, must pay respect to the facts of this case, and it is somewhat significant that the case for Leith has been put, so far, firstly, by one of the Members for Glasgow, whose own corporation has repeatedly absorbed smaller communities, and, secondly, by one of the very junior Members of this House, whose constituency is a county constituency, and who, from the speech which he has just delivered, quite evi- dently knows nothing at all about Scottish conditions. On the last occasion this House gave a vote—and I want to say this quite frankly, although incidentally—in favour of returning the Bill to the Committee with an Instruction which had been passed with regard to the Birkenhead case, I do not believe for a single moment that, had the House on that occasion read the Birkenhead Judgment they would have considered that there was any analogy at all between the two cases. The difference between the Birkenhead case and the Edinburgh case, in the first place, is this: The Members of the House of Lords Committee who heard both cases came to the decision, on the one hand, that Birkenhead had not even proved the preamble of their Bill; whereas, in the case of Edinburgh, not only the House of Lords Committee, but also the House of Commons Committee, considered that Edinburgh had proved the preamble of its Bill. The second argument which weighed with some hon. Members was that there ought to be a plebiscite in the areas concerned before such Bills were promoted; and those who support the case of Leith have made a great deal of that argument by changing the word "areas" into "area." Obviously anyone who has any geographical knowledge of the situation in Edinburgh and Leith must know that the areas concerned are the areas of both Edinburgh and Leith. Anyone who knows anything at all about Edinburgh also knows that the people of Edinburgh desire this and have desired it. My hon. Friend the Member for Springburn (Mr. Macquisten) shakes his head. He may shake his head as long as he likes, but he cannot shake off what has happened during the last twenty-five or thirty years.

They did not have a plebiscite, but they have had municipal elections every year during that time. Although the advent to Scotland of my hon. and gallant Friend the Member for Leith was quite recent, I have an enormous respect for him, and the only quarrel I have with my hon. friend below the Gangway (Mr. Palmer) in describing him is as to the use of the adverb "somewhat" in regard to his energy. He is not "somewhat" energetic. I hope the hon. Member will correct that in the OFFICIAL REPORT to-morrow. We have had municipal elections, and my hon. Friend, who is a great Municipal Reformer in London, and whose distinguished father before him was an equally distinguished Municipal Reformer in London, knows that on any question of any importance in regard to which the electors of any municipality are interested, they would raise those questions at the municipal election. They have not been raised, and there is no protest at all from any Edinburgh citizen with regard to the amalgamation between Edinburgh and Leith with the solitary exception of the one and only one which the hon. Member (Mr. Macquisten) received since he made his speech. That is the case against the Birkenhead Resolution.

The other case, which the House of Commons has to regard with some sense of the seriousness of the situation, is the system that we have in settling these matters. You cannot discuss the merits of the Edinburgh and Leith case on the floor of this House. There is no time to do that, and this House in its wisdom has sent cases of this kind to Committees upstairs. This Bill has been before a House of Lords Committee and a House of Commons Committee. They have taken evidence for seventeen days, and those who have served on these Committees—and I have—know that we sit for five hours a day frequently, taking evidence, sifting evidence, and hearing counsel, and we come to a decision which we pass on to the House. If the House is likely to turn down the decision of a House of Lords Committee and a House of Commons Committee, acting as our deputy, it is going to be extremely difficult to find Members of the House of Commons who will devote themselves to that kind of work. There are two classes of men in the House of Commons. There are men like my hon. and gallant Friend (Captain Benn) and myself who probably prefer the rostrum of the House. We are happier in the exchanges of political debate across this floor. There are other Members of great municipal and business experience, who are not interested in that kind of work, but who devote to the State in Committee upstairs the great experience which they have gained in the sifting of such evidence as is brought before a Committee of this kind. I see the Chairman of Ways and Means opposite, and also my right hon. Friend (Sir D. Maclean), both of whom have had a long and varied experience in this very kind of thing, and I believe that out of their accumulated experience they say exactly what I am saying now. I do not say the House of Commons should never reverse a decision. There may be some very particular reasons why it should. We must reserve that right in our hands. But the men who serve upstairs are picked with great deliberation because of their special abilities. They hear that evidence in deputy for us, and if they bring to this House of Commons a case so clearly proved as this case is, the House of Commons is doing a very serious thing for its own future and for the conduct of the affairs of this House, if it overturns that decision. The five Members who sat in this Committee included at least two who were prejudiced in favour of Leith. After all, all of us are always prejudiced in favour of the smalled borough. I believe that is true of the House of Commons generally, that as a body, it will look more favourably on the case of the smaller borough than on the case of the larger borough, and that was so true of one Member of this Committee that I do not think I am betraying any secret when I say it was a question of objecting to him as a Member of the Committee. A fortnight ago, he said, "I went on that Committee absolutely prejudiced in favour of Leith, but the evidence has convinced me that Leith has no case, and Edinburgh has proved hers." That was the decision of the House of Lords. The House of Lords advised Leith to make peace with its enemies, and so did the House of Commons.

I do not know whether the House desires me, as one of the Edinburgh Members, to put the pros and cons of the case again. I think I put them quite fairly and quite reasonably the last time I spoke. If hon. Members will do those of us who are in favour of the Edinburgh case the honour to look at the map, I do not think they will require any argument in favour of our case. It is not that we want to destroy Leith. Those of us who have lived in it shoulder to shoulder with the people of Leith for all these years are looking forward to a more virile community, because of the associations of Leith with Edinburgh. The hon. Member (Mr. Macquisten) talked about the scholastic attitude of Edinburgh. It is quite true that Edinburgh is full of good schools—excellent secondary schools—and the children who attend them are Leith children.

Not all of them. Surely the hon. Member (Mr. Macquisten) will accept the argument of his hon. and gallant Friend that obviously a large number in proportion of Leith children attend those schools.

They do not pay. The real argument is bigger than the personal facts which are exciting hon. Members. There were only six Scottish Members who voted against Edinburgh on the last occasion. If this Vote had been left to the representatives of Scotland, the Bill would have been carried.

Not at all. All those who did not vote would have voted for Leith.

9.0 P.M.

My hon. and gallant Friend sent a large number of wires on the last occasion, and the mere fact that those Scottish Members did not come and vote is evidence or the fact that their interest in that side of the case was not great. I am not now talking as a Member for Edinburgh, because while I have been in this House, however much I have differed from my Scottish colleagues, none of them will say I have not been a Scotsman first. Speaking therefore as a Scotsman I say deliberately that the whole industrial future and development of the East of Scotland depends to a large extent upon this amalgamation.

My hon. Friend represents a constituency in the north of Scotland by a small majority of about 74 votes. That constituency is very remote from the Firth of Forth.

That is not true. I have never left Edinburgh. I still reside there. I was born and bred in it, educated in it and I now represent——

It is necessary that hon. Members should avoid getting into reminiscences. I hope it will not be necessary to have the Debate of a fortnight ago over again.

I have no desire, like other people, to publish my own autobiography. Therefore, I refrain from pursuing the temptation offered to me by my hon. Friend. I say that if the House rejects this Bill they stop a great industrial development. From the hint you have given you desire that, if possible, we should shorten the Debate. I will do so at once. I see opposite to me the Secretary for Scotland. He is a Member of the Government. He is also a native of Edinburgh.

He was not born in Edinburgh, but he lives there. But for the ruling of the Chair, I should like to deal with that point. At any rate, my right hon. Friend resides in Edinburgh, and as Secretary for Scotland he is conversant with the whole facts of the case. The House would like to know what the Secretary of Scotland has to say about this amalgamation, and I deliberately invite him as a Scotsman and as an Edinburgh man to give the House the benefit of his views, and his advice.

If this controversy only concerned Leith and Edinburgh I do not think I should have been so imprudent as to take part in the Debate; but in the speeches we have heard this evening and those delivered a fortnight ago, issues have been raised and principles have been appealed to which are bound to have a very much more far-reaching effect than upon Leith and Edinburgh, or even upon Scotland. They affect the whole future of municipal extensions throughout the country. The position on this Bill seems to turn largely upon an observation made by the Chairman of the Joint Committee in the Birkenhead Extension case. I will not in sist that the Birkenhead case was one of a provisional order and that this is not a provisional order, because it is argued that the dictum of the Chairman laid down the general principle to be observed by this House whether the matter in question was a provisional order or a private Bill. What is the general principle involved? As stated by the hon. Member for Wrekin (Mr. Palmer), it appears to be that in no case shall the extension of a municipal boundary be prosecuted unless the substantial support of the ratepayers in the area to be incorporated is first obtained. That may seem at first sight a reasonable proposition, and I have no doubt it is one which will appeal to hon. Members who are influenced by catchwords and to whom the word self determination is always decisive if it conducts to any conclusion at which they desire to arrive on other grounds.

That is not the proposition of the Kin-tore Committee. They did not lay down that self-determination was to be observed in each case. They expressly limited the operation of the self-determination principle by making it a matter of important considerations of public advantage. If that be accepted, all that the dictum comes to is that the consent of the ratepayers in the area to be incorporated is one of the factors which must be taken into account when you are considering whether or not a Bill of this kind should go forward. It is only fair to say that that dictum goes a little further. It says that the greater the opposition to a proposal of this kind the stronger must be the case of the promoters if they are to have their way. Each case must be judged on its merits. Therefore, what this House has to decide is not whether this Bill traverses the principle of self-determination, but whether the case made out by the promoters of the Bill is sufficiently good to justify them in pressing on with it in spite of the fact that it does not obtain the assent of the ratepayers of Leith. That is precisely the question which has been submitted to Committees of the House of Lords and the House of Commons. They have gone into the case at great length and at enormous expense. They have heard all the detailed evidence; they have made exhaustive examination into the circumstances of the case, and they have unanimously come to the conclusion that the promoters of the Bill have made out their case. If the House, having to judge the same case on its merits and not having the evidence before them of the detailed investigation made by these Committees, is going to upset their decision and to reject this Bill, then the House is tasking a very great responsibility upon itself and is cutting at the very roots of procedure on Private Bills.

With regard to the objections of Leith to incorporation. Anyone who is familiar with municipal administration knows how difficult it is to interest ratepayers in the work that is carried on by the councils. It is quite true that the ratepayers are easily aroused to indignation by a proposed rise in the rates, and very often by some personal question, such as the salary of one of the officials, but it is equally true that on the whole they do not concern themselves very much about details of municipal administration. It is characteristic of our municipalities, especially those which are densely populated, that they have a very strong sense of local patriotism, a very laudable quality, and one which has been responsible for some of the best local work that has been done. That quality is very easily exploited. People are easily roused to a sense of resentment if it is represented to them that an attempt is being made to lower their prestige, lower their status, or lower their authority, and particularly is that the case if the matter in question is a dispute with some neighbouring borough, because then there is at once brought up those little jealousies which are always very near the surface. How has this matter been put to the people of Leith? Did those to whom the ratepayers of Leith are very properly accustomed to look with respect go down to Leith and say: "Here is a business proposition for amalgamation with Edinburgh, which already surrounds you, and with which you are closely bound up, which is bound to lead to increased efficiency and economy in administration, which will give you room to expand, and which will make you part of a great and influential community"? Is that the way the thing was put to them? Or was it put to them: "Here is another attempt on the part of greedy Edinburgh to come and snatch away from you your liberties, to reduce you once again to that state of vassalage from which you once suffered and from which you happily escaped, which is trying to absorb you into its own greedy," and I think an hon. Gentleman said, "enormous maw, and which wants to dominate you for its own selfish purpose"? Is not that the way in which the matter was put to the ratepayers of Leith? If so, could anybody expect that they would give any other answer? It is obvious in these cases that the whole thing turns upon the way in which it is put to the ratepayers. When you are weighing up the value of such a plebiscite as that of which much is now being made, you must remember that the ratepayers have heard only one side.

And a side particularly calculated to appeal to those proper sentiments of local patriotism which are always so conspicuous. It so happens that I have had some personal experience of a somewhat similar case. In 1911 the City of Birmingham thought that the time had come when it was necessary that they should extend their boundaries, and in order to make a complete scheme they had to take in a number of small local authorities and, in particular, the borough of Aston Manor. That was an ancient borough with its mayor and corporation, its town clerk, and its officials, and it had behind it an entirely creditable record of efficiency in local administration. There was very great opposition on the part of Aston to coming into the City of Birmingham, and they had a great deal that was very true and just to say for themselves—the preservation of their old traditions and the preservation of that local patriotism to which the hon. Member for Springburn (Mr. Macquisten) has alluded. They also asked what on earth they had to gain by coming into Birmingham. Indeed, there was practically everything to be said on their side except one thing, and that was the geographical position of Aston Manor. That argument was absolutely overwhelming. If Aston had been left out of the scheme, Aston would have been an enclave, an island, absolutely surrounded by Birmingham and dependent upon the goodwill of Birmingham for the proper working of all her public services. In the result Aston did come into the scheme and Aston is now a part of Birmingham. All the old bitter feeling has been forgotten and there are very few people in Aston to-day who do not realise that they really had no other course open to them than to come into the Birmingham scheme.

The case of Leith is almost entirely parallel. If Leith be not entirely enclosed by Edinburgh, it is enclosed on three sides. You can only get into or get out of Leith by air, by walking into the sea, or by going through Edinburgh. The life of Leith and that of Edinburgh are bound up together. The public services, the provision of gas, water, and electricity, drainage—all these matters must be carried on in common with Edinburgh, and, in fact, are so carried on to-day. It must be obvious to anybody who has any experience of local administration that the carrying on of those services by one authority must be more economical and more efficient than if carried on by two authorities with their separate officials and staffs. That is a consideration which will be obvious to anybody. There is just one other consideration which perhaps may not be quite so familiar to hon. Members. We are only slowly coming to realise in this country that if we are to escape from the scandalous conditions under which so many poor people live in our great centres of population we have to plan for the future, and not allow these places to go on growing haphazardly. At present the powers of town-planning are confined to unbuilt-on areas, but before long those powers have got to be extended to built-on areas. When you come to town planning, you must take in sufficient area to be able to put your displaced population upon sites suitable for human dwelling-houses, and you must make arrangements to link up those sites by proper transport facilities with the places where the people have to work. Just imagine what is going to happen in the future if Edinburgh makes a plan of that kind and leaves out Leith. The whole of the surrounding country is going to be parcelled out by Edinburgh for the needs of Edinburgh without any account of Leith whatever. When Leith comes to look round to see how it can make a plan the whole ground has been occupied by Edinburgh, and Leith is doomed to decay, because it has no room for expansion. That is an absolutely decisive factor in this matter? I do not look upon this as a proposition for the swallowing up of a small borough by a large borough, but as an eminently practical proposition for the amalgamation of two progressive boroughs. If anybody asks me which of the two has the most to gain by this amalgamation I have no hesitation in saying that Leith stands to gain the most, because if Leith misses this opportunity, Leith is doing that which is practically tantamount to committing suicide in the future.

A good deal has been said about the Kintore Committee, and, as a member of that Committee, perhaps I might clear away one or two statements which are not quite accurate. First of all, my hon. Friend the Member for East Edinburgh (Mr. Hogge) referred to it as a House of Lords Committee. It was not a House of Lords Committee, but a joint Committee of both Houses. He also made some play of the fact that we brought into our Report the word "areas." If he had been on the Birkenhead Committee it would have been quite easy for him to understand why the word in the plural was used. In the Birkenhead case there were several urban districts, in no way associated with one another, which it was desired by Birkenhead to incorporate. I am sure that is the reason why the plural was used. In the Committee the main consideration in our mind was self-determination—the question whether the local authority which it was proposed to incorporate should have the power of self-determination. The hon. Member for the Lady-wood Division (Mr. N. Chamberlain) seemed to impress upon the House that that was only a minor consideration. It was not so. The Committee felt that in some cases—for instance, in the case of a small urban district or parish council on the outskirts of a large city or burgh—it would be foolish to say that self-determination should apply. In the case of Edinburgh and Leith, a main issue which influenced us in our decision was the expense of these numerous inquiries.

In the Birmingham case we had seven King's Counsel employed, and they occupied fourteen days in inquiring into the merits of the case, which meant an enormous charge on the local authorities. One of the members of that Committee, Lord Clwyd, thought we should make some strong representation and put something in our decision which would have the effect of an instruction to future Committees to save this expense as far as possible. I was entirely in agreement with him. I do not think that any of us thought that so soon this House would be discussing the result of our decision. I think we have been of some use in calling attention to the vast expense which these various inquiries cause. I am told that in this case something like £60,000 has already been spent. That is a scandal crying out for some kind of remedy. We should have some kind of uniform instruction to the various Committees which decide these cases. Reference has been made to the Birmingham case and the incorporation of Aston Manor. I can remember a similar case—the case of Bootle and Liverpool. The hon. Member for St. Helens (Mr. Sexton) will remember it, too. The House of Commons came to an absolutely contrary decision, and declined to allow Liverpool to take over the borough of Bootle. The two boroughs remained separated, as they are to-day. I can remember that case particularly well, because the works with which I was associated at the time happened to be half in Liverpool and half in Bootle, and when the decision was given they drew a white line across Derby Road, which is the boundary between the city and borough, and anyone who walked across that line from Liverpool to Bootle got cheered, while anyone who crossed from Bootle to Liverpool was hissed. It showed the feeling that existed at the time. These cases should be left for self-determination by the local people. I feel strongly that if Leith is making a mistake it is its own concern. If Leith is willing to pay 2s. to 3s. in the £ more in rates, and to undergo other disadvantages, that is its picnic. Leith people must lie in the beds they make for themselves. It is not the business of Leith people to go to Edinburgh and convince Edinburgh that Leith is right. It is the business of the Edinburgh Corporation to go to the Leith Corporation and convince the latter that they are getting a good bargain. In this matter, and for the reason stated, I must support Leith.

Our Committee on this Bill consisted of the hon. Member for South Ayrshire (Mr. J. Brown), the hon. Member for Dumbarton District (Mr. J. Taylor), and the hon. Member for the East Toxteth Division of Liverpool (Captain Rankin). The hon. Member for Dumbarton District very frankly told the House that he went into the Committee thoroughly prejudiced in favour of Leith.

I did not say that I was prejudiced. The words I used were that, if I had any bias at all, it was in favour of the smaller borough.

Of course, I accept that statement. The hon. Member was not alone in his sympathy with Leith. There were others of us imbued with the same old conservative principles. It was obvious, the last time we discussed this matter, that hon. Members who spoke had not had the opportunity of reading or of hearing the evidence of this case. The statement of Lord Kintore's Committee was an expression of opinion, and it was this: question of the plebiscites. They received our most anxious and serious consideration, and we concentrated our whole attention on the weight of this particular evidence. This was not an elector's poll, but it was an elector's postcard plebiscite. If matters of this kind are to be decided by an elector's postcard plebiscite poll then our labours are in vain and there is no more use for our Committees to sit upstairs. I can assure the House that not one of your Committees ever once belittled sentiment. There was very naturally a great deal of sentiment in this case, and everyone must sympathise with the position of Leith. We listened particularly and with very great care to every sentimental objection which was put before us on the question of Amalgamation of an old Borough. I think most of us in this House would instinctively say "No" at first. Minorities must always be respected, and in my humble judgment the minority on the Bill here were those people who had taken the trouble to go home and thoroughly investigate and think out the case for themselves, and they were probably men who had some real stake or interest in the burgh of Leith. A vote is not conclusive, and the learned gentleman who represented Leith said about this vote: witnesses, and we heard all persons they wished to call. We waited for the evidence of Leith to find out if they could in any way upset or weaken the strength of the Edinburgh evidence or contradict it, but in no material point were they able to do so.

I am going to pick out from the vast mass of evidence, which I have read through twice since we gave our decision, what in my humble judgment, though I have not had the opportunity of discussing it with all my colleagues, were the main features which led us to the conclusion to which we came. First and for-most, Leith is a very congested area. It is the smallest area in the United Kingdom, and its density of population is the highest in the United Kingdom. It is overflowing, and overflowing steadily into Edinburgh, and is bound to do so because Edinburgh is the only place into which it can overflow, except the Firth of Forth. This is a Bill which seeks to carry into effect the principles laid down by the Maclean Committee on local government, such as the organisation of local government to prevent the multiplication of separate authorities and to secure the unification of services. It was that multiplication and that overlapping which impressed the Committee. Within the area there are at present thirteen separate administrative bodies, and if this Bill passes into law they will be reduced to three. There are now ten separate rating authorities, and if the Bill passes they will be reduced to two. There are thirty-three separate rating areas, and if the Bill passes they will be reduced to one. That is our second point, and, as we thought, a very strong one. The third point is this. In the joint trust which at present exists for gas, water, and sewerage Edinburgh provides by far the greater part of the expenditure, the proportions being, Edinburgh 85 per cent., Leith 15 per cent. The present local rates in Leith are 6d. in the £ higher than in Edinburgh, being in Leith 8s. 7d. in the £ and in Edinburgh 8s. 1d. There is a precedent quite recently in Scotland for this amalgamation. There have been amalgamations in the case of Aberdeen, Dundee, and Glasgow. In the latter case the Committee sat for twenty-five days, and it was nearly on all fours with this Bill, because you could not tell, going from one area to another, what district you were in. In this case if you got into a taxicab in Princes Street and drove to Leith you would not have the slightest notion where you crossed the boundary, as you have streets in both authorities, and there is an instance, I believe, of a school half of which is in one authority and half in another. Therefore we thought this was a case for amalgamation. It is my duty to read to the House our report on this Bill which is: a Committee, but although we are taking on ourselves the functions of a judge, we do not get £5,000 a year. I must tell the House perfectly frankly that this was the first time that I had the honour to be Chairman of a Private Bill Committee, and we naturally took the very greatest care in considering our duty to the House and to the parties concerned. Luckily, I have had a good deal of experience, if I may say so at the risk of being thought egotistical, as I have been sitting on these Committees continuously ever since before Easter, and I am now sitting on them again till the end of the Session. I have been Chairman a good many times since the Edinburgh Bill, and I have had the opportunity of practising at the Parliamentary Bar for fifteen or twenty years. I only say that to show that we had some slight experience of what we were doing. We had this Bill recommitted to us, and we were asked to hear counsel and no evidence. We heard counsel on both sides at great length, and we took a long time to give our final, careful consideration on the re-committal of the Bill, and I do say that we honestly and faithfully, according to our lights, did our very best to act strictly in accordance with the instructions sent to us. The leader of the Parliamentary Bar, who appeared for Edinburgh, told us that this was the very strongest case of this kind in the whole of his long legal career, and he would not say that as a fact if it were not so. Under these circumstances I have tried to put as briefly as I can, although I fear very inadequately, why we came to our decision, considering that it was in the very best interests of the citizens of Leith themselves, for the common good, essentially as a matter of public policy, and in the interests of economic and efficient municipal administration.

I can assure the hon. Member who has just spoken that we mean no harm to him in putting down this Amendment, and I should like to repeat an acknowledgment which I made on the previous occasion of the deep sense of gratitude that we feel to him and to the hon. Members of the House who served with him for the courteous, impartial, and painstaking way in which they performed their duties. I am far too old a Member of this House not to respect the procedure set up for considering Private Bills, and I certainly should make no Motion in this House which was subversive of the system to which we all attach so much importance. After all, there is a Report stage and there is a Third Reading of a Bill, and if Parliament in its wisdom has decided that there shall be these proceedings, it is perfectly obvious that they are intended for some purpose, and it seems to me that we are making precisely the use of these stages which it was intended should be made in putting down this Amendment. It is not an unusual thing for the decisions of preliminary inquiries, whether by Private Bill Committees or by officials of the Local Government Board, to be revised by this House. It is quite a usual thing. The very Birkenhead case, of which we have heard so much to-night, was examined locally for eighteen days by an Inspector of the Local Government Board, and then was discarded by the House. Of course, there are examples of Report and Third Reading stages of Bills being fatal to the further progress of the measure.

I would remark in passing to the hon. Member who is Chairman of the Committee, that we are not attempting to deal with the details on which he gave us so much information. The House is not capable of deciding whether it is a penny rate this way or the other way, or any questions of that kind. What we say is that the House of Commons is the proper place in which to decide a big question of public principle, and not only so, but the House is perfectly entitled, without any disrespect to any Committee or system of Committees, to lay down in this House and to make effective by vote a great question of public principle. The particular questions that we have to discuss to-night are, what is the principle that was laid down by the House when the Bill was recommitted, and has the instruction of the House been carried out by the Committee. The House did not say there was any similitude between the Birkenhead and Edinburgh cases, but that a principle, an obiter dictum, if you like, by the Kintore Committee on the Birkenhead case should be applied to the Leith case. The principle was that you must have some overwhelming consideration of public advantage if you were to over-ride the almost unanimous wish of the people in the district. I really do not understand how the hon. Gentleman should be able to tell us what Scottish Members think.

I have information from the Scottish Members in the opposite sense. I think the best way is to wait for the Division to be taken, and then we shall be able to decide what the opinion of Scottish Members is. The House said that you must show some overwhelming public advantage before you can override the opinion of the district. This came before the House. What did the hon. Gentleman who is Chairman of the Committee say? He said, "Thank you very much for giving this instruction, but this is precisely the point we have considered." The House heard the hon. Gentleman's speech and then said, "We want you to reconsider the thing, because the considerations you have in mind are not the considerations we have in mind." That is the whole point. We had a speech from an hon. Member, who made it perfectly plain that what the House desired to do was to establish more rigidly the right of self-determination for these small constituencies. Then what occurred? I make bold to say that the Committee misinterpreted the instructions of the House. Some of the supporters of the Bill dealt with the proceedings in the House in a way which was certainly disrespectful. The "Scotsman," which is the leading paper supporting this Bill, spoke of the "useless inquiry" forced upon the Committee, and said it had been carried through "so that the reputation of Parliament should suffer as little as possible." It went on to say that the argument addressed by the learned counsel to the Committee "testified to the gross irregularity of the situation." That is the sort of opinion expressed by the leading supporter in the Press of this Bill of the proceedings of Parliament.

I submit that, although we do gladly pay deference to our private Bill procedure, the House of Commons itself is entitled to some sort of respect. If the House of Commons passes an Instruction to a Committee, that Instruction should be obeyed, and it was perfectly obvious that, with that Instruction, the Committee should have taken into account, if it existed, or produced evidence of an overwhelming public need of the change proposed. The Chairman, when he gave his decision, told us that he thought the decision of the Kintore Committee was intended as an intimation to officials of Government Departments. That, I say, is an unnecessarily superflous—almost a gratuitous—remark. The House said, "Here is the consideration applied to Leith. If you can show us a new consideration, we will decide whether the Bill is to go on or not"; instead of which all that the Committee did was to say, "We have got your Instruction. There is really nothing in it, and we return the Bill in its original form." That is not what the House of Commons intended when it re-committed the Bill. Just a word on substance, namely, the practice of this House. The fact of the matter is that the opinion of Parliament has varied as years have changed in matters of these extensions. Twenty-five years ago, I believe, it was unusual to promote extensions against the wishes of the inhabitants. There was a Bootle case. I would like to read the decision of the Chairman in that case, because the Bootle case was really very much in pari materia. He said: proper course. We are not saying that no extensions are required or should be made, but we do say, in the public interest, when you find a homogeneous community of people, with a love of their own town, who are ready to make great sacrifices and to give services, you are not entitled to say, for reasons of contiguity, symmetry, or the dream of some bureaucrat, that these places should be merged together, but you should say that, unless there is an urgent need, or some menace to the public good, they are entitled to look to this House for the protection of their independence.

10.0 P.M.

I had a few words to say on the previous occasion, and I trust the House will pardon me for speaking for a few moments on the present occasion. In the first place, let me say that, in my view, altogether too much has been made of what is called the decision of the Kintore Committee in this connection. What was that Committee? It was a Joint Committee set up to consider a Birkenhead Extension Bill. They were not asked to consider the general question. They had no evidence on the general question much less on the Edinburgh-Leith Bill. Therefore, what was their competency for pronouncing a judgment, as compared with these two ad hoc Committees, which sat, one for eight days, and the other for seven days, having heard the evidence from both sides and learned counsel on both sides as advocates? You cannot compare the competency of these two Committees, and therefore the House, in my judgment, would be acting very wrong if Members based their votes on the declaration of the Kintore Committee, on a subject which was never before them. I do not myself, at the same time, dispute in the least what the Kintore Committee said. I think, so far as it went, it was perfectly right. It is my own view. It is the advice that I give to a Committee or a Chairman who comes to me on these matters. Unless the case is proved to you by the promoters, and after you have heard the evidence on both sides, you ought not to depart from the status quo and declare the preamble proved, but in this case, both in the House of Lords and in the House of Commons, the promoters made out their case to the satisfaction of the Committee. Each of those Committees started from the ground that the presumption was in favour of the opposition of Leith, and therefore, as Members of the House, recognising the service which is done for us by those who take part in this Private Bill work, can we with a light heart throw over the decision to which they came, after hearing the whole of the evidence and argument, and say that we know better than they? I am not in saying this challenging the right of the hon. and gallant Member for Leith to raise this question for the third time on the Floor of the House. I hope I stand up for the rights of the House of Commons just as it is my duty to stand up for the Committees of the House, but I do make this appeal to all hon. Members who are going to vote in the Division not to give their vote on a false assumption. The Kintore dictum had nothing to do with this case. They had not heard the case. A decision in favour of this Bill to-night will be in no way overriding the dictum issuing from the Kintore Committee. No one can help admiring the strategic energies of the hon. and gallant Member for Leith, in fact, the Chancellor of the Exchequer must be grateful to him for the way in which he has added to the public revenue by the telegrams, which were so widespread that they did not exclude you, Mr. Speaker, and myself from the summons addressed to us to come and vote, as I take it, not so much on the merits of this case, but on some general principle. I am afraid that he has enlisted some other bodies on the ground that it would facilitate annexations in the future. I certainly should assure hon. Members that he need have no fear on those grounds. In very fact, I think the reverse is the truth—that a verdict in favour of the decisions of the Committees in this case will tend the other way. It will put it on record in the House that it is only in cases where an overriding case has been made out that the House will proceed to grant an extension of this kind.

I do not think there is anything more I need say than that, unless it be just another word to emphasise the importance of upholding our Committee system in the House. It has been my duty now for close upon 10 years to supervise that work. I do not think there is any other public service in the country, and certainly not in any other country in the world, which is done with such devotion and such care as our Private Bill work in this House. I know well how even when, in my view, the case ought to be heard in Scotland I have constantly petitions from both sides in Scotland saying "Let us come to the House of Commons instead of being heard in Edinburgh." It is extraordinary that in spite of the Private Bill Legislature Act—I think that is the name, which was to send Commissions down to Scotland to hear those cases—in spite of that Act, passed many years ago, I constantly have petitions from both sides, promoters and opponents, saying, "Let us come to the House of Commons." This was one of the cases which I thought ought to come to the House of Commons. Therefore it was changed from a Provisional Order to a Private Bill, giving an Order in the Lords and in the Commons for a double hearing. That was given with the greatest patience. In both cases the Committees were unanimous after hearing the evidence tendered.

In this case there has been the additional procedure resulting from the motion to recommit the Bill. The hon. and gallant Gentleman the Member for Leith has submitted to the House that the Committee did not do its duty on the Instruction sent to it. On the other hand, I claim that it did its full duty on the Instruction sent to it. The hon. and gallant Gentleman claimed that this dictum of the Kintore Committee was a new circumstance which had arisen since the Bill was sent first to the Committee. In that light the House agreed to send the Bill back to Committee to see if that involved any new circumstances which would lead them, to revise their previous decision. They considered the Instruction of the House and the dictum of the Kintore Committee, and they came to the conclusion that their decision was within that dictum. For that reason they have found the Preamble of the Bill proved, and that there were special considerations of public advantage. Those were the considerations on which they have passed the Bill. I think there is really nothing more to be said. I do not in the least object to the hon. Member or people who have some very special knowledge of this particular case registering their vote against the Bill in the Lobby, but I ask all other hon. Members to take out of their minds that there is some general question involved in this decision, and I ask them, unless they have a case of that kind, to support the action of their own Committee and a course that I believe will be to the advantage of Private Bill procedure in the House of Commons.

I followed the right hon. Gentleman opposite—[HON. MEMBERS: "Divide!"]—on the last occasion, and I only rise to say that those of us who are going to support my hon. and gallant Friend in the Lobby do not do so with any view of finding fault, either with this Committee or with any other of the Private Bill Committees. Having been a Chairman of a Private Bill Committee for many years, the last thing I would wish to do, or I think anyone else, would be to find fault with that admirable system, or the care with which the Committees discharge their duties. I do not agree with my right hon. Friend as to the issue before the House. The House, after taking into consideration all the facts of the case and by a majority deciding that it was not desirable that Leith should be absorbed by Edinburgh, referred the Bill back to Committee. [HON. MEMBERS: "No, no!"] I think that is not an unfair way of putting it—that by a majority of this House——

The hon. and gallant Gentleman will permit me to say that is quite a misrepresentation. I offered the hon. and gallant Gentleman (Captain Benn) the opportunity on that occasion of taking a direct issue and he declined it. He preferred to take the issue of recommittal in the light of the Kintore Committee.

I really must protest against what the Chairman of Ways and Means says. I did not move the rejection of the Third Reading of the Bill because there are some things in this Bill to which we do not object. We did not want to wreck the whole Bill. What I tried to get the House to do was to agree to the principle of self-determination for Leith, and that is why we come back here.

I must point out that the hon. Member's Amendment to-night does destroy the whole Bill.

I will not pursue the issue which has been raised between my right hon. Friend and my hon. and gallant Friend. If the Committee had new facts before them they would have been bound to take them into account, but that course was not taken. The House is now faced with a perfectly plain and concrete issue as to whether the bigger should absorb the lesser. I wish to emphasise that those who vote with my hon. and gallant Friend do it simply on the broad issue, and with the fullest appreciation of the splendid work done by all our Committees, and not least by that presided over by my hon. Friend opposite, the Member for Cleveland (Sir P. Goff).

Before a Division is taken I wish to state the attitude of the Government in regard to this Bill. In the view of the Government the House is entitled to a free and unfettered vote on this question, and accordingly the Government whips will not be put on. In regard to precedents, so far as I can discover, the Government Whips have not been put on when any Bill of this character has been discussed under similar circumstances. In view of certain statements which have been made I think it right to say that the Scottish Office, has throughout the whole progress of this Bill maintained an attitude of strict neutrality, and has not intervened directly or indirectly in the controversy between Edinburgh and Leith. While that has been so up till now, I feel entitled, indeed I feel bound, to express my own personal view in a sentence or two regarding the situation in which we find ourselves.

That situation has become perfectly plain as the Debate has gone on. The House on the last occasion accepted unequivocally, as I read the Debate, what has been called the Kintore principle. I venture to add that that principle is no new discovery. It is really an expounding of the obvious, because no one has ever maintained, so far as I know, that if a locality is unequivocally opposed to amalgamation, such amalgamation should nevertheless proceed unless there are special public considerations which outweigh the effect of the plebiscite. Consequently the Kintore decision is a merely kindergarten view of the duties of committees of this kind, and is really a reassertion of a principle which has characterised our Private Bill procedure for many years. The House accepted that principle on the last occasion. What is also clear is that the Committee carried out the instruction which the House directed it to carry out. I take the Committee's Report and I find that they say that they find that the public advantages to be derived from the passing of this Bill into law are such that, notwithstanding the absence of a substantial support of the ratepayers in Leith, the Bill should be allowed to pass. While accepting the view that the House accepted the principle of the Kintore decision, I submit to the House that the Committee has reported to us that they have applied that principle, and having done so they reached the same conclusion as they did formerly.

In these circumstances, what is the situaation? It seems to me that those who oppose the Third Reading of this Bill must affirm one of two propositions. They must either say that the Committee has failed correctly to interpret the evidence and has reached a wrong conclusion with regard to these public considerations of over-riding importance, and that they should pay more attention to the plebiscite in Leith than the public considerations to which the Report refers. If the House takes that view, it is entitled to do so, but before it does, let me point out that the view is one which should be founded on evidence. The Committee—a patient and competent Committee, as I think the House will agree—gave very full consideration to this matter. They heard, and what is perhaps more important, they saw the witnesses. They heard evidence for days, and, after hearing it, they came to a unanimous conclusion upon it. I venture to put it to the House that, unless a Member of the House with a full sense of responsibility, having read and pondered over the evidence, has reached the firm conviction that a different conclusion should have been arrived at by the Committee upon that evidence, he is not entitled to disturb that decision. I do not know how many hon. Members have read the evidence which convinced the Committee that there were public considerations which outweighed the very strong views held by Leith against amalgamation. While the House is entitled to judge upon that matter, Members of the House, unless they put themselves in an equally advantageous position to the Committee by reading, considering and weighing the evidence, must support the conclusion at which the Committee arrived. That is one possible view. The other alternative view which may lead to the rejection of the Third Reading is this, that the House may be of opinion that amalgamation should not proceed except with the consent of that part of the area which it is proposed to amalgamate. All I can say about that proposition, which seems to meet with assent in certain quarters of the House, is that it is an entirely new doctrine. I had the advantage, or otherwise, of practising before the Parliamentary Bar in Scotland for many years, and I cannot remember a single case of a district which was sought to be amalgamated that did not oppose it tooth and nail. I may also add that in many of these cases the districts which opposed amalgamation, ten years after amalgamation, rejoiced that they had been defeated, and other districts which opposed amalgamation successfully lived to regret the success of their opposition. "Self-determination" is a very attractive phrase, and if the view be that no district should be amalgamated unless it consents, I venture to put another point or two to the House. In the first place, it is a new doctrine which has never so far been applied in the history of Private Bill legislation; and in the second place, if it were intended by this House to apply that doctrine it would have been fair to have given such instructions to the Committee on the Second Reading instead of allowing the Second Reading to proceed, thereby incurring great expense, and then to apply the doctrine retrospectively. It may be a right or a wrong doctrine, but surely it is a fair thing to confine its application to the future and not to make it retrospective in the case of a dispute which has proceeded according to principles hitherto accepted. There have been good and weighty speeches made in this Debate—some humorous and some serious, but I venture to put it to the House that the issues raised are really of the first importance. Municipal enterprise is at stake; the Committee system of the House of Commons is at stake; and, therefore, I am sure that the issue to-night will not be decided with prejudice or passion, or with regard to any personal consideration, but that the Souse will feel that, while it may have been perfectly right—and I do not dispute it—to re-commit this Bill for further consideration, it would be a much graver, more important, and more menacing step to deny a Third Reading to a measure of this importance.

It is not often that I intervene—[HON. MEMBEES: "Divide!"]—but perhaps the House will allow me two or three minutes. I should not have intervened to-night had I not been a Member of the Committee which considered this Bill, and upon which, as it seems to me, very severe strictures were passed by both the Mover and the Seconder of the Amendment. A great many considerations weighed with me in my decision. Like other Members of the Committee, I was biassed in favour of the small burgh; but, as the evidence was unfolded, and every time I looked at the map, I was convinced that nothing short of amalgamation would do justice to the case. I may be permitted to use another argument which has not been used tonight. I was entitled to try to discover what was the feeling of Labour in the districts concerned, and I did discover that, wherever on the Town Council of Leith Labour was articulate, Labour was in favour of amalgamation. I also discovered—[HON. MEMBEES: "Divide!"]—I am very sorry, but I was trying to give the reasons for the attitude I took up. I will not stand in the way of a Division. I recognise that a great many speeches have been made, and that everything has been said that really can be said. I only wanted to say that, wherever Labour was articulate, even in Leith, that articulation was given in favour of the amalgamation. Therefore, I hope that hon. and right hon. Members will give attention to the evidence that was placed before the Committee, and that they will try to focus their minds on the situation, and to remember that the people of Leith and Edinburgh are one people in their hopes and aspirations, and that it will be a good thing both for Edinburgh and for Leith if this amalgamation takes place.

Question put, "That the words proposed to be left out stand part of the Question."

The House divided: Ayes, 161; Noes, 88.

Division No. 260.]

AYES.

[10.25 p.m.

Adamson, Rt. Hon. William

Hanna, George Boyle

Raeburn, Sir William H.

Baird, Sir John Lawrence

Hanson, Sir Charles Augustin

Rankin, Captain James S.

Balfour, George (Hampstead)

Henderson, Major V. L. (Tradeston)

Raw, Lieutenant-Colonel N.

Barrie, Charles Coupar

Herbert, Dennis (Hertford, Watford)

Richardson, Alexander (Gravesend)

Bigland, Alfred

Hewart, Rt. Hon. Sir Gordon

Roberts, Sir S. (Sheffield, Ecclesall)

Bird, Sir A. (Wolverhampton, West)

Higham, Charles Frederick

Royce, William Stapleton

Bowerman, Rt. Hon. Charles W.

Hood, Joseph

Samuel, A. M. (Surrey, Farnham)

Brace, Rt. Hon. William

Hope, James F. (Sheffield, Central)

Sanders, Colonel Sir Robert A.

Britton, G. B.

Hunter, General Sir A. (Lancaster)

Scott, A. M. (Glasgow, Bridgeton)

Brown, Captain D. C.

Hunter-Weston, Lieut.-Gen. Sir A. G.

Seager, Sir William

Brown, James (Ayr and Bute)

Illingworth, Rt. Hon. A. H.

Seddon, J. A.

Bruton, Sir James

Jameson, J. Gordon

Sexton, James

Buchanan, Lieut.-Colonel A. L. H.

Jephcott, A. R.

Simm, M. T.

Buckley, Lieut.-Colonel A.

Jesson, C.

Sitch, Charles H.

Burn, Col. C. R. (Devon, Torquay)

Johnstone, Joseph

Smith, Harold (Warrington)

Butcher, Sir John George

Jones, G. W. H. (Stoke Newington)

Smith, W. R. (Wellingborough)

Cairns, John

Jones, J. t. (Carmarthen, Llanelly)

Sprot, Colonel Sir Alexander

Carr, W. Theodore

Kellaway, Rt. Hon. Fredk. George

Stanley, Major Hon. G. (Preston)

Carter, W. (Nottingham, Mansfield)

Kerr-Smiley, Major Peter Kerr

Stanton, Charles B.

Casey, T. W.

Kidd, James

Steel, Major S. Strang

Chadwick, Sir Robert

Knights, Capt. H. N. (C'berwell, N.)

Stephenson, Colonel H. K.

Chamberlain, N. (Birm., Ladywood)

Law, Rt. Hon. A. B. (Glasgow, C.)

Strauss, Edward Anthony

Child, Brigadier-General Sir Hill

Loseby, Captain C. E.

Sturrock, J. Leng

Clay, Lieut.-Colonel H. H. Spender

Lowe, Sir Francis William

Swan, J. E.

Clynes, Rt. Hon. J. R.

Lyle-Samuel, Alexander

Sykes, Sir Charles (Huddersfield)

Cornwall, Sir Edwin A.

Macdonald, Rt. Hon. John Murray

Talbot, Rt. Hon. Lord E. (Chich'st'r)

Cowan, D. M. (Scottish Universities)

Mackinder, Sir H. J. (Camlachie)

Taylor, J.

Davies, A (Lancaster, Clitheroe)

Maclean, Rt. Hn. Sir D. (Midlothian)

Thomson, T. (Middlesbrough, West)

Davies, Alfred Thomas (Lincoln)

Macpherson, Rt. Hon. James I.

Thomson, Sir W. Mitchell- (Maryhill)

Davison, J. E. (Smethwick)

Matthews, David

Thorne, G. R. (Wolverhampton, E.)

Dawes, James Arthur

Mitchell, William Lane

Thorpe, Captain John Henry

Dean, Lieut.-Commander P. T.

Moreing, Captain Algernon H.

Tillett, Benjamin

Elliot, Capt. Walter E. (Lanark)

Morison, Rt. Hon. Thomas Brash

Tryon, Major George Clement

Eyres-Monsell, Commander B. M.

Morrison, Hugh

Wallace, J.

Farquharson, Major A. C.

Mount, William Arthur

Walsh, Stephen (Lancaster, Ince)

Fell, Sir Arthur

Munro, Rt. Hon. Robert

Walton, J. (York, W. R., Don Valley)

Ford, Patrick Johnston

Murchison, C. K.

Ward, Col. J. (Stoke-upon-Trent)

Forestier-Walker, L.

Murray, C. D. (Edinburgh)

Waring, Major Walter

Foxcroft, Captain Charles Talbot

Murray, Major William (Dumfries)

Warren, Lieut.-Col. Sir Alfred H.

Fraser, Major Sir Keith

Myers, Thomas

Watson, Captain John Bertrand

Fremantle, Lieut.-Colonel Francis E.

Nail, Major Joseph

White, Lieut.-Col. G. D. (Southport)

Galbraith, Samuel

Neal, Arthur

Whitley, Rt. Hon. John Henry

Geddes, Rt. Hon. Sir E. (Camb'dge)

Newbould, Alfred Ernest

Wigan, Brig. -Gen. John Tyson

Gibbs, Colonel George Abraham

Newman, Sir R. H. S. D. L. (Exeter)

Wills, Lieut.-Colonel Sir Gilbert

Gilmour, Lieut. -Colonel John

Norman, Major Rt. Hon. Sir Henry

Wilson, Daniel M. (Down, West)

Gould, James C.

O'Grady, Captain James

Wilson, Rt. Hon. J. W. (Stourbrdgo)

Graham, R. (Nelson and Colne)

Parker, James

Wilson, Colonel Leslie O. (Reading)

Graham, W. (Edinburgh, Central)

Parkinson, John Allen (Wigan)

Wood, Sir J. (Stalybridge & Hyde)

Gray, Major Ernest (Accrington)

Pease, Rt. Hon. Herbert Pike

Wood, Major M. M. (Aberdeen, C.)

Green, Joseph F. (Leicester, W.)

Pennefather, De Fonblanque

Young, Robert (Lancaster, Newton)

Gregory, Holman

Pickering, Lieut.-Colonel Emil W.

Younger, Sir George

Greig, Colonel James William

Pinkham, Lieut.-Colonel Charles

Griffiths, T. (Monmouth, Pontypool)

Pollock, Sir Ernest M.

TELLERS FOR THE AYES. ——

Guest, J. (York, W. R., Hemsworth)

Pownall, Lieut.-Colonel Assheton

Mr. Hogge and Sir Park Goff.

Hacking, Captain Douglas H.

Prescott, Major W. H.

NOES.

Agg-Gardner, Sir James Tynte

Greenwood, William (Stockport)

Malone, Major P. B. (Tottenham, S.)

Atkey, A. R.

Gretton, Colonel John

Middlebrook, Sir William

Austin, Sir Herbert

Gritten, W. G. Howard

Morgan, Major D. Watts

Banbury, Rt. Hon. Sir Frederick G.

Grundy, T. W.

Murray, Dr. D. (Inverness & Ross)

Barrand, A. R.

Hall, F. (York, W. R., Normanton)

Nield, Sir Herbert

Bell, Lieut.-Col. W. C. H. (Devizes)

Henry, Denis S. (Londonderry, S.)

O'Connor, Thomas P.

Benn, Captain Wedqwood (Leith)

Hirst, G. H.

Oman, Sir Charles William C.

Bottomley, Horatio W.

Holmes, J. Stanley

Palmer, Charles Frederick (Wrekin)

Bromfield, William

Hopkins, John W. W.

Perkins, Walter Frank

Burgoyne, Lieut.-Colonel A. H.

Hopkinson, A. (Lancaster, Mossley)

Rae, H. Norman

Cecil, Rt. Hon. Evelyn (Birm., Aston)

Jones, Sir Edgar R. (Merthyr Tydvil)

Raper, A. Baldwin

Cecil, Rt. Hon. Lord H. (Ox. Univ.)

Jones, Henry Haydn (Merioneth)

Ratcliffe, Henry Butler

Clough, Robert

Kenworthy, Lieut.-Commander J. M.

Rees, Sir J. D. (Nottingham, East)

Coates, Major Sir Edward F.

Kenyon, Barnet

Reid, D. D.

Coats, Sir Stuart

King, Commander Henry Douglas

Remer, J. R.

Cowan, Sir H. (Aberdeen and Kinc.)

Lane-Fox, G. R.

Richardson, R. (Houghton-le-Spring)

Dalziel, Sir D. (Lambeth, Brixton)

Law, Alfred J. (Rochdale)

Robertson, John

Davies, Thomas (Cirencester)

Lawson, John J.

Robinson, Sir T. (Lanes., Stretford)

Devlin, Joseph

Lister, Sir R. Ashton

Royden, Sir Thomas

Edge, Captain William

Lort-Williams, J.

Rutherford, Sir W. W. (Edge Hill)

Edwards, C (Monmouth, Bedwellty)

Lunn, William

Seely, Major-General Rt. Hon. John

Edwards, Major J. (Aberavon)

M'Donald, Dr. Bouverie F. P.

Shaw, William T. (Forfar)

Faile, Major Sir Bertram G.

Maclean, Nell (Glasgow, Govan)

Short, Alfred (Wednesbury)

Fisher, Rt. Hon. Herbert A. L.

McNeill, Ronald (Kent, Canterbury)

Smith, Sir Allan M. (Croydon, South)

Forrest, Walter

Macquisten, F. A.

Spencer, George A.

Gilbert, James Daniel

Mallalieu, F. W.

Stevens, Marshall

Stewart, Gershom

Wild, Sir Ernest Edward

Young, Lieut.-Com. E. H. (Norwich)

Terrell, Captain R. (Oxford, Henley)

Williams, Aneurin (Durham, Consett)

Ward, Col. L. (Kingston-upon-Hull)

Wintringham, T.

TELLERS FOR THE NOES. ——

Weston, Colonel John W.

Worsfold, Dr. T. Cato

Mr. Betterton and Major Barnett.

Wheler, Lieut.-Colonel C. H.

Question "That the Bill, as amended, be now considered," put, and agreed to.

Bill, as amended, considered accordingly.

NEW CLAUSE.—(Election of Leith Dock Commissioners.)

Notwithstanding anything in this Act contained, and from and after the passing of this Act,—

(1) The power to elect three Commissioners for the harbour and docks of Leith conferred upon the Corporation of Leith by Section six (Commissioners incorporated) of The Leith Harbour and Docks Act, 1875 (in this Section referred to as "the Act of 1875"), shall cease to be operative, and shall not be transferred or attached to the corporation, and there shall be elected in the manner provided in this Section and in the Leith Harbour and Docks Acts, 1875 to 1919 (in this Section referred to as "the Dock Acts"), by shipowners qualified as therein provided three of the said Commissioners instead of two as therein provided, and there shall be elected in like manner by ratepayers at the harbour and docks qualified as provided in the Dock Acts six of the said Commissioners instead of four as therein provided, and the said Section six, and also Section fourteen (Election of Commissioners by shipowners and ratepayers), of the Act of 1875 shall be read and construed as if the word "three" were substituted therein for the word "two," and as if the word "six" were substituted therein for the word "four."

(2) Each of the three of the said Commissioners elected by the Corporation of Leith and holding office as such Commissioners at the passing of this Act shall continue in office until the expiry of the period for which he shall have been elected, and the vacancies arising through the expiry of such periods shall be filled up as follows, videlicet :—

( a ) The vacancy so arising at the third Tuesday in November, one thousand nine hundred and twenty, shall be filled up by the election by shipowners qualified as aforesaid of one Commissioner from among the "electors" defined in the said Section fourteen of the Act of 1875 resident as in the Dock Acts provided, and the Commissioner so to be elected shall continue in office until the third Tuesday in November, one thousand nine hundred and twenty-two;

( b ) The vacancies so arising at the third Tuesday in November, one thousand nine hundred and twenty-one, and the third Tuesday in November, one thousand nine hundred and twenty-two, shall be filled up by the election by ratepayers qualified as aforesaid of one Commissioner in each of the said months of November from among

(3) The Commissioners who shall fall to be elected as provided in Section fifteen (rotation of elected Commissioners) of the Act of 1875 in November, one thousand nine hundred and twenty, and in November, one thousand nine hundred and twenty-one, by shipowners qualified as aforesaid, shall continue in office until the third Tuesday in November, one thousand nine hundred and twenty-three, and the third Tuesday in November, one thousand nine hundred and twenty-four, respectively, and the two Commissioners who shall fall to be elected as provided by the said Section fifteen in November, one thousand nine hundred and twenty, by ratepayers qualified as aforesaid shall continue in office until the third Tuesday in November, one thousand nine hundred and twenty-three, and the two Commissioners who shall fall so to be elected in November, one thousand nine hundred and twenty-one, by such ratepayers shall continue in office until the third Tuesday in November, one thousand nine hundred and twenty-four;

(4) At every annual election by the electors the said respective bodies of electors shall elect Commissioners to supply the place of the Commissioners whose term of office shall expire in the month appointed for such future annual elections as aforesaid;

(5) The provisions of the Dock Acts relative to elections by the said respective bodies of electors shall be read and construed in accordance with this Section;

(6) In the event of circumstances arising in connection with any election of Commissioners which may render it necessary or expedient to fix, postpone, alter, or vary any date or any procedure prescribed in this Section, or any other matters arising there under, the sheriff (excluding his substitutes) may, on a summary application by the Dock Commission, forthwith fix any such date or sanction any such postponement, alteration, or variation, or dispense with any procedure in any other matter as may, in his judgment, be best fitted to meet the circumstances of the case, and the whole procedure following on such application and any order made by the sheriff shall be valid and unchallengeable;

(7) Section ninety-three of the Act of 1913 shall be read as if the following proviso were added at the end of the said Section:—

Provided that at least two of such Commissioners shall either be chosen from among the councillors representing the Leith district of the city or be persons resident or carrying on business in the Leith district of the city.—[ Mr. F. C. Thomson. ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

This Clause was in the Bill when it left the House of Lords. It is a Clause which was the result of an agreement between the Edinburgh Corporation, the Leith Dock Commissioners, and the petitioning merchants, shipowners, and traders. The Clause is not opposed in any quarter, and I ask the House to restore it to the Bill. At the present time the Edinburgh Corporation elects three representatives to the Leith Docks Commission, and the Leith Corporation also elect three. In this agreed Clause it is proposed that the power which was possessed by the Leith Corporation to elect three commissioners should cease to be operative, but should not be transferred to the extended city, but that the shipowners qualifying under the Leith Dock Commission Act to vote should return three representatives instead of two and that the ratepayers qualified under the Leith Dock Commission Act to vote should return six instead of four. Leaving the numbers of the Leith Dock Commissioners 15 as before. I do not desire to labour the point unduly, because this is an agreed Clause. Clause 51, which I propose should be struck out, was inserted by the Committee upstairs with the most laudable desire to meet Leith sentiment, but as the Chairman of Committees pointed out, the last time that this matter was before the House he had no particular desire for one Clause as against the other. His wish was merely to meet the wishes of the community, and the Clause which I now propose to re-insert is one which meets the wishes of all who are concerned in the matter.

I beg to second the Motion. The proposal which my hon. Friend has made is sound in principle, and it has the approval, I understand, of all parties. I hope that the House will accept it.

Question put, and agreed to.

Clause read a Second time, and added to the Bill.

CLAUSE 51.—(Election of Leith Dock Commissioners.)

From and after the passing of this Act the power to elect three Commissioners for the Harbour and Docks of Leith conferred upon the Leith Town Council by Section 6 (Commissioners incorporated) of the Leith Harbour and Docks Act, 1875, shall be transferred to the Corporation. Provided that, notwithstanding anything in this Act contained, three of the said Commissioners to be elected by the Corporation after the passing of this Act, shall be nominated by the Councillors representing the Leith District of the City from among the Councillors representing the Leith District of the City or persons resident or carrying on business in the Leith District of the City. Provided further, that each of the three of the said Commissioners elected by the Leith Town Council and holding office as such Commissioners at the passing of this Act, shall continue in office until the expiry of the period for which he shall have been elected.

I beg to move, to leave out the Clause.

Question, "That the Clause stand part of the Bill," put, and negatived.

Ordered, "That Standing Orders 223 and 243 be suspended, and that the Bill be now read the Third time."—[ The Chairman of Ways and Means. ]

Bill accordingly read the Third time, and passed, with Amendments.

Post Office and Telegraph Bill

Postponed Proceeding resumed on Question "That the Bill be now read a Second time."

Question again proposed.

I would ask the House to turn from the tribal warfare in which we have just been engaged to a matter of great Imperial importance, namely, the Post Office and Telegraph Bill now before the House. I made two observations on this Bill before we began the consideration of the Private Bill, and I have very little to add, but I want to make a protest against the increased price of telegrams. Whereas many letters are written for sentimental reasons or reasons not connected with business, the great majority of telegrams are sent purely for commercial reasons. Therefore, the increase in the price of telegrams will directly hit the trade of the country and the revenue which will be gained will be lost in other directions. I do not know that any statistics have ever been prepared, but I should think that 99 per cent. of the telegrams are sent by business people. After all, we do not send love telegrams.

Of whom, I am sure, my hon. Friend has had a close, intimate, and fortunate experience. After all, the great commercial businesses of the country far outweigh the interests of bookmakers, most of whose business is done in the back alleys of our great towns. I should have liked to have seen a Select Committee or a Committee of this House set up to inquire into the whole of the Post Office finances with a view to seeing whether it is possible to avoid this increase. Is it a fact that a private telegraph wire can be put into any place of business for £10 a week? The wire would have operators attached, working in shifts, and probably six would be employed on the one wire. I am sure that £10 a week will not nearly cover the expense, which must include the cost of installation and the wages of the men employed. I do not see why ordinary small people who send telegrams should be penalised to benefit the great interests that can afford private wires.

I want to plead for the picture post card. It may be said that picture postcards ought to pay extra postage like letters, but whereas the letter postage has gone up from a penny to twopence, an increase of 100 per cent., the picture postcard postage has gone up 200 per cent. That seems to be rather penalising the picture postcard. Before the War the picture postcard industry was very largely in the hands of Germany. Since the War it has been much developed in this country. I am not a Protectionist, but I think we ought to hesitate long before we put a special tax on a British industry of this sort, for that is what it will come to. I am informed that picture postcards of any artistic merit cannot be produced to-day under a cost of three-halfpence each. If you add to that postage at three-halfpence, it means that the sending of a postcard will cost threepence. Owing to low exchanges, it will be possible in Germany to produce a picture postcard at a much lower rate. The German product will then again flood this country, and a trade which we have built up very largely with disabled men, which employs 70,000 people, is likely to be hit very hard. The picture postcard has an educational value. It is useful for members of large families to keep in touch with each other and in many other ways. Proposals have been made that postcards with printed matter should be sent at a reduced rate. The members of the trade have suggested that the picture postcard, if it bore only a few words, which is all there is room for, should be passed at the same rate as the printed matter postcard. The French Government has decided to make this concession. A French Ministerial Commission has announced this policy to the International Postal Congress, which is to be held at Madrid on 1st October, They propose that the ordinary postage should be 25 centimes, and for the ordinary correspondence postcard 15 centimes. The proposal in this Bill as to postcards would be a retrograde step, and I hope that the special claims of this industry will be taken into account.

I can assure my hon. and gallant Friend who has just spoken that we have listened most carefully to his remarks, some of which will be replied to by my right hon. Friend the Assistant Postmaster-General. The object of this Bill is to put in force the recommendations made in the Budget in order to make the Post Office balance. It has been decided that the various Departments must be self-supporting, so far as possible, and that no more subsidies should be paid. Unless these increases in this Bill are passed it means that the Post Office must be subsidised out of the Exchequer. The Chancellor of the Exchequer recommended that matters should be so arranged that the Post Office would pay its own way. The increased cost of the working of the Post Office is a matter which applies not only to the Post Office but to every commercial undertaking in the country. The increase in wages to be paid this year over the wages paid in the year 1913–14 amounts to £30,500,000. The increased cost of material is £2,800,000, and the increased cost of the carrying of the mails is £2,000,000. Those are things which no one can help happening and are beyond our control. The total expenditure, as compared with the year 1913–14 when it was £25,000,000, is £61,000,000, and of that £48,000,000 is paid in wages; and that shows that the dominating factor in the finance of the Post Office is the question of wages. I do not object to that. The men have had the increase. That has been arranged, and I think it is adequate and just, and ought to be satisfactory to everybody concerned. I have no doubt that the Postmaster-General gets blamed for everything which happens in connection with the Post Office and that he will be blamed for this, but still, there is a bright side. In three years, starting with the year 1916–17, the profits of the Post Office were 1916–17, £6,190,000? 1917–18, £6,647,000, and in 1918–19, £7,447,000. That is a total of over £20,000,000 for these three years when I was Postmaster-General, but, as I say, through circumstances over which I have had no control, that has been swept away, and we have had to make provision to meet the heavy losses.

The Act of 1908 says the inland rate on postcards shall not exceed ½d. and book packets shall not exceed ½d. for 2 ounces. In 1918 these charges were raised. The effect of Clause 1 of this Bill is to repeal these charges and to allow new rates to be fixed later on by warrant. That will prevent another Bill being necessitated later on. The Postal Congress, which will be held in Madrid at the beginning of October, will settle the rates to be paid for the international post for these things, and if their decisions make material alterations in these rates it will have a considerable bearing on the increases proposed to be made, but, in any case, the charges on the postcards and the printed packets will not be altered until after the Postal Congress in Madrid has reported. We propose to take powers to raise the charge immediately, that is, as soon as the Bill becomes law, for telegrams from 9d. to 1s. for 12 words and to charge 1d. a word over 12 words. There is another innovation, and that is to charge 6d. extra for telegrams sent off on Sunday, and on Christmas Day and Good Friday. For some reason or other—I do not know why—the telegrams sent on Sundays have increased by 45 per cent. over what they were in 1914, whereas the total increase in the telegrams sent on week days is only 5 per cent., and not only that, but these Sunday telegrams cost very much more, as for Sunday duty the telegraphists are paid time and a half; further, the workers in the Post Office want more leisure, and the Sunday attendance is not very popular, and it is to be hoped that by adding a charge of 6d. extra for these telegrams on Sundays it will decrease them.

Newspapers have always been carried at a loss, and now it is getting serious, so it is proposed to increase the charge from ½d. for 6 ozs. to 1d. and an extra ½d. for every additional 6 ozs. or fraction of 6 ozs., with a weight limit to be fixed by the Postmaster-General. Under an old Act the limit has been fixed, and it will continue to be the limit, at 2 lbs. I do not think that newspapers, which have been having such a prosperous time of late, have any claim that their industry, or whatever it may be called, should be subsidised by the taxpayer. With regard to this, the Retrenchment Committee in 1915 said in their report that they had given attention to services which must be regarded as unremunerative, and in which the existing rates amounted to a subvention from the taxpayers to particular individuals or industries, and they said that if these services were to be made remunerative, the rates should be raised to at least such a point as would make them as nearly as possible self-supporting. On account of this increase, power is given to people who have entered into a contract for delivery by post, to cancel that contract, provided they give notice within 14 days after the increased rates are put into force.

Clause 3, which deals with parcels conveyed by railway, has two objects. One is to increase the remuneration by 60 per cent., and get over the difficulty created by the Act of 1918, which excluded railway companies from having any share in the increased rate of parcel postage during the War and six months after. I think when other people are paid, the railway people should receive an increased remuneration from the Post Office; otherwise the railways would be subsidising the Post Office for their service. Another important item is with regard to the keeping of accounts, which have been most complicated. What it is proposed to do is to take a count over a certain period to be agreed upon with the companies and the number of parcels then ascertained will be taken as a basis for settling the total number for the year and they will be paid on this basis.

11.0 P.M.

Under an old Act of 1795, "privileged persons" there referred to, meaning soldiers and sailors, had a right to receive letters at a penny postage, and on the direction there had to be stated the rank of the man and the name of the vessel or the regiment and the signature of the commanding officer. This has been a dead letter for at least half a century, and when this was put in force the pay of these men was only 8d. a day and the postage varied from 2s. 4d. to 6s. per letter, so that if a man wished to write home he had to pay more than a week's pay in postage. Now that the pay is 2s. 9d. a day and the postage only 2d., I do not think they will suffer any hardship. It is proposed to abolish this obsolete privilege, and the postage rates for service men on active service will be settled by the First Lord of the Admiralty, the Secretary of State for War, and the Postmaster-General, with the Chancellor of the Exchequer called in to assist. The charges which are proposed in this Bill will bring in: Telegrams about £1,000,000, newspapers about £200,000, postcards—when the charge is placed on them—£1,200,000, printed papers £1,500,000, or a total of about £4,000,000 in round figures. I hope that the House will pass the Second Reading without too long discussion, so that we may be able to get the various charges put in force as soon as possible and not reduce the revenue in consequence.

The introduction of this Bill into the House amounts to setting back the clock. I am very sorry to see it, but if a reason can be proved, of course we cannot help it; but it is a great pity that the Post Office authorities should come to this House and say that we must go back on legislation which has produced such big social and economic development in this country. Of course it would be out of Order to discuss the abolition of the penny post, but I think there has been a great want of respect to a great institution which has produced a social revolutioin and a great want of respect to a great reformer, Sir Rowland Hill, that the passing of the penny postage should have taken place without even a crocodile tear on its tomb. I think there might have been some means found by which this administrative act on the part of the Post Office should be discussed in this House before such a big retrograde step should have been taken; but as I know it is out of Order to discuss it any further I shall simply refer to it in passing, and I will just express my great regret that the penny postage which figured so largely in the social reforms of the nineteenth century should have passed away in this fashion. I regret that the Post Office authorities should come to this House and make the confession that their ingenuity is not sufficient to provide in some way to meet the increased cost of the postal service without increasing the postal rates. I am only going to refer particularly to one of the increases proposed in this Bill and that is the increase upon newspapers. I have a very strong objection to this tax on general terms. It is a tax upon education, upon intelligence, in this country, and never in the history of the country with the franchise extended was the reading of sane newspapers so desirable where the people can gather information as to the world movements as at the present time, and this is the time of all times which the Government chooses to inflict the tax upon those who, especially in rural districts, read newspapers. In the rural districts and in the country generally we are not so independent of newspapers as certain Members of the Government. A distinguished Member of the Government I remember saying once upon a time that he did not read the newspapers. Ordinary people cannot live on these heights, but I look on this, the doubling of the newspaper postage, as a tax which will only fall on the rural communities. It is unfair in its incidence, as the people of the towns and cities, of London, will not feel it and do not care a rap about it. It does not matter how much the increase is, it will fall practically almost entirely upon the rural communities. At a time when the Government professes to be wishing to get people on to the land, and to keep them there, and to make rural life more attractive, it is a great pity that they should make an attack on the amenities of rural life in this way. In large areas of the country, where there are no shops, people will have to do without newspapers unless they get them through the post, and this doubling of the newspaper rate will make all the difference between a newspaper and none in thousands of places. I am not at all sure of the big figures of the revenue he expects to derive. Has he allowed for a probable decrease of newspapers through the post owing to the increased postage? Very large decreases will, I think, result. Those who get several newspapers will reduce them, and those who get one a day, or one a week, may get it, or may get none. When this Bill goes to Committee I trust we shall have the support of every Member of a rural district to prevent the Postmaster-General carrying through this tax which is really a tax upon the comfort, the education, and the enjoyment of life in the rural parts. That is the point I want to make. I want to protest against the Postmaster-General regarding the Post Office as a commercial undertaking merely. I would point out that in the old days Mr. Gladstone, who was fond of making both ends meet, said that he never looked upon the Post Office as a merely commercial undertaking, and that even if run at a loss, it was desirable that the commercial aspect should not be so much taken into account as that it should be looked upon as a great public service. In Committee I hope the right hon. Gentleman will reconsider the unfair incidence of this tax upon newspapers, which will bear hardly and unfairly on the rural residents, who require every encouragement, and not discouragement, at the hands of the Government.

I wish to refer to the subject of picture postcards. It is much to be regretted that the Postmaster-General has brought forward proposals which mean the bringing up of the postage on picture postcards to 1½d. as against ½d. in pre-War days. The right hon. Gentleman cannot have considered this point from the standpoint of the possible injury which is going to be done to an industry which has greatly developed in recent years. The Exchequer may gain by the increased rate or the effect may be to reduce the volume of the service which the Post Office renders in the transmission of these postcards. In other ways the gain which will accrue will be largely counteracted by the loss to an industry which has grown in recent years, and this change may be the means, not only of throwing a large number of men out of employment, but also of causing the dislocation of this particular trade. It is also a retrograde step to increase the charges on newspapers, because of the effect in rural areas. At this time we ought to disseminate more information rather than less, and if we restrict the opportunities of the people making themselves acquainted with what is going on in the life of the nation we are going to seriously disturb the progress that can only come from having a well-informed electorate in the country.

With regard to the proposed alteration in the rate for telegrams, one naturally hesitates to oppose it when it means getting rid of a loss upon one of our public services. Unless we run these services in the interests of the people, we are bound to view them from a business standpoint, and we must hesitate before we sanction anything which means a subsidy. Although I recognise the loss in this respect as being fairly substantial, I am concerned as to whether the best means have been taken to meet this particular difficulty. The Postmaster-General has told us that he raised the rates on newspapers because he feels that the wealthy newspaper owners can well afford these increased charges. It is somewhat strange that the right hon. Gentleman should raise the rates on newspapers, which is going to have a detrimental effect so far as the reading public is concerned, while in regard to the cost of telegrams, the newspapers are to be left where they are. I am informed that, viewed from the standpoint of the normal rates charged for telegrams, newspapers are very heavily subsidised by the State in the special rates offered to them in the transmission of telegrams. One can hardly understand why that should be, when the Postmaster-General is so anxious to get rid of subsidies in so far as the pubic service is concerned, because he is continuing a system which means that the State is subsidising the wealthy newspapers by giving them these special rates and terms. I think I am correct in stating that the special Committees which considered this matter recommended very substantial increases beyond the present rates paid by newspapers for the transmission of Press telegrams. I am informed the Retrenchment Committee advised a charge of 2s. 6d. per 100 words after 6 p.m., and 2s. 6d. for 75 words before that hour, the rates now payable being 1s. for 80 words after 6 p.m. and 1s. for 60 words before 6 p.m. The Postmaster-General shakes his head. That is, however, the information I have as to the current rates and the suggested rates for the future. I should like to ask whether it is impossible to meet this particular difficulty from our standpoint. A question has been raised as to urgent telegrams and priority given under certain conditions. On the postal side there is a special charge for the delivery of urgent letters; there is an express postal rate, and I would like to know why this deficit on the telegraph service cannot be met by a readjustment of rates on the line of special charges as are imposed on the postal side. Again, there is a question whether or not a zone area might not be established, with varying rates for towns, as far as telegrams are concerned. It is being continually urged that we have a right to see that the affairs of the nation are run on business lines. If that is to be the basis, one would naturally think that the consideration of this question could be approached from a standpoint rather different to that of a general raising of rates as is proposed here. I believe I am correct in stating that in this matter suggestions have been made for a readjustment of rates. One is entitled, I think, to information upon questions appertaining to the newspapers of the country and as to how far the special rates conceded to them are in the nature of a subsidy. If they are to be charged extra postal rates on newspapers because they are well able to afford it, what argument can there be against some further adjustment of the telegraph rates now obtaining, as far as the Press are concerned?

I would not have spoken in this Debate had it not been for a remark of the Postmaster-General, and for the speech to which we have just listened. The last speaker was in favour of keeping the postal rates for newspapers at a reasonable amount, but at the same time he objected to what he called a subsidy for Press telegrams. He wants the postal rates kept down in order that the newspapers may disseminate the intelligence which reaches this country from all quarters, but at the same time he is anxious to put a new embargo on newspapers by increasing the telegraph rates. The right hon. Gentleman said something with which, I am sure, anyone who understands newspapers will entirely disagree. He talked about the enormous profits made by newspapers, and suggested that they could well afford this new postal rate. I can assure him, from some experience, that, during the War and at the present time, the vast majority of newspapers had, and have, the greatest difficulty in making both ends meet. The cost of paper and of all the services which are concerned in the production of a newspaper to-day are enormous, compared with what they were before the War. I am sure the right hon. Gentleman is misinformed if he thinks he can easily put upon the newspapers of the country a new impost, and that they can bear it without any difficulty.

In my opinion, the newspapers of this country are doing an enormous service at this time, when propaganda and real education of public opinion are so necessary. Ministers themselves are only too ready on every possible occasion to use the channel which the newspapers provide for putting forward the views of the Government, either collective or individual. I do urge that the newspapers should be treated, not in a spirit of almost hostility, but with consideration. As was said by the hon. Member for Inverness (Dr. Murray), this new impost is going to have a serious effect upon public opinion. Today we want to educate the public into a sober attitude in regard to all the great national questions which come up for consideration. Ministers at the present time are so much engaged in this House, that we get no information from them outside. In the old days, Ministers used to speak in the country, and, whether we liked their speeches or not, they had their point of view, and it was put before the people. To-day there is no such propaganda, and Ministers rely almost entirely on the newspapers for putting their case, and the great case of the nation, before the people.

And, as my hon. Friend says, in what a funny way they do it! But they do it with an ability and a rare intelligence that are never shown on the Ministerial Benches. I think the right hon. Gentleman is making a mistake in thus depriving the rural areas of a means of disseminating information and of forming public opinion such as they will never get from the Government. I think the right hon. Gentleman will be well advised, when the Bill goes into Committee, to show a little more consideration to the newspaper Press of this country. It is not a wealthy but a poor Press. As I have indicated, there are very many papers that can scarcely exist, and, if any new impost is put upon them, it will be to the detriment of the country, and, I think, of the Government itself.

I think this Debate has shown that the House recognises the absolute necessity of finding this money, and that it would not be wise that it should be provided by people who are not responsible for the expenditure. Some of the arguments that have been used with regard to newspapers rather contradict one another. For instance, the hon. Member who has just sat down thinks that the cost of newspapers should not be increased by an increase in the charge for postage, but the hon. Member for Wellingborough (Mr. W. Smith) thought that the charges made for telegraphed news were not sufficient. With reference to that, I should like to say that the reason why there has not been another increase in these rates is that the present rates only came into force on the 1st January last, and that, although the Committee which dealt with this question of expenditure reported that the rates ought to be increased rather more than they have been, still, after a number of deputations had been seen and the question had been considered in its wider aspect, it was held that the best action the Post Office could take was to place the rates on the present basis, which had been in existence since the 1st January; and at the present moment it is not considered to be a wise policy to increase those rates.

I am very glad this Debate has taken place because it may give an opportunity for some of those who are not acquainted with the financial position of the Post Office to realise one or two facts. One is that the revenue of the Post Office for the three years previous to last year was £21,000,000. There is a very considerable number of hon. Members who appear to think the Post Office is not a revenue-producing concern at all; and in regard to last year it is perfectly plain that if wages have increased for this comparatively short period by the enormous amount of £30,000,000 it is necessary for the charges to be increased. We all feel that taxes are bad and that new taxes very often seem worse than the old ones; but if we apply the same principle to the Post Office that we apply to everything else in the world we realise that it is absolutely necessary, when expenditure increases to an enormous extent both in regard to the Post Office telephone and telegraph services, that the other charges should be increased in ratio.

With regard to picture postcards I sympathise very much with those who have felt great disappointment that this increase has been made, but it is absolutely essential that picture postcards should be put on the same basis as other postcards, and under the circumstances I feel that it would be unwise to suggest that there is any possibility of any alteration in regard to this particular point. In regard to the question of payment for the carriage of newspapers the extra charge that is put on is not nearly sufficient to pay the cost of carrying the newspapers, and if my hon. Friend, who is a very able advocate for his constituents on all subjects, really thinks out these points he will come to the conclusion that it is quite unreasonable for people to have their newspapers carried at someone else's expense. That is really what it amounts to. As it appears that there is a distinct loss on every newspaper that is carried, even when we increase the rates to the extent mentioned in the Bill, it is plain that someone else is paying the cost for those who obtain the newspapers. The man who does not have his newspaper sent by post is paying towards the man who does receive it by post.

The other point that was mentioned is the question of telegrams. Of course, the question has been taken into account as to the number of telegrams that will be sent after the extra charges are inflicted on the public. It is a matter of certainty that that would be taken into account, as it has a very marked bearing on the case. In the opinion of the Department in order to make the Telegraph Department a revenue-producing Department it is necessary to increase the charges for telegrams, and it has been decided to make an extra charge for telegrams on Sunday, Christmas Day, and Good Friday.

Question put, and agreed to.

Bill accordingly read a Second time, and committed to a Standing Committee.

Ministry of Food (Continuance) [Salaries and Expenses]

Resolution reported,

"That it is expedient to authorise the payment, out of moneys provided by Parliament, of any salaries or expenses which may be payable or incurred under or by virtue of any Act of the present Session to continue temporarily the office of Food Controller, and to make further provision with respect to his powers, and for purposes in connection therewith."

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

In the Debate on this Resolution last night the Minister of Food stated that the Ministry hold stocks worth £132,000,000, and that among other things, it was necessary that the Ministry should be continued for the purpose of realising these stocks. Can the Parliamentary Secretary say whether the Ministry propose to make purchases, and to accumulate further stocks which are not necessary. We see from to-day's Press that they are dealing in various commodities. It is stated that they are making very large purchases of butter. Strong objections are raised against that course. It certainly seems that the time has come when the activities of the Ministry should be confined to dealing with the commodities in hand, and that they should not, under cover of this Resolution, make large investments of public money in trade when they have such large stocks to realise.

I do not know how far I am in order in replying to the hon.

Member. As stated in the White Paper, the sanction applies not to the present, but to a possible date in the future. I understand he asks whether the Ministry is proceeding to add to the accumulated stores, goods which there is no immediate prospect of being able to realise. The answer is emphatically in the negative. He further asks whether the Ministry is continuing to make purchases of butter. The answer is in the affirmative. On previous occasions I have asked the House and Committee not to press me to disclose what stocks the Ministry hold of any particular commodity, so long as the Ministry continues to be a buyer, and I hope my hon. Friend will not press me. Among the commodities which are in short supply in the world there is no doubt that butter falls to be included. We are doing what we can to try to maintain the butter ration at its present level. I am not going to prophesy whether we shall be able to do so or not, but so long as we are charged with the duties and responsibilities of the Ministry of Food it is our duty and our responsibility to take what steps we think most expedient to try to maintain the supplies for the people of the country and, perhaps, what is more important, to ensure equitable distribution among the various classes. Towards that end we shall have to continue to make purchases for some little time. We are making those purchases in various parts of the world. I hope my hon. Friend and the House will not ask me to go into details in regard to the stocks

I would like to make one comment upon what my hon. Friend has just said about the Government continuing to purchase butter. These purchases, with all the objections of rationing and so on that they entail, are very serious. I would remind my hon. Friend and the House that the great bulk of our butter before the War, when supplies were cheap and plentiful, came from Siberia. The so-called Danish butter was shipped from Esbjerg, and was excellent butter. A friend of mine who has travelled in the East told me that at one wayside station where he left the Pekin and Moscow express he found a Scottish gentleman doing an enormous trade in butter. This was somewhere near Lake Baikal. These food purchases of the Government cause irri- tation among traders. They do not like their work done for them by the Government. It all leads to this, that the best thing that we can do is to get access to the Siberian butter, and I hope my hon. Friend and his illustrious chief will use their influence to square our policy in that direction.

Question put, and agreed to.

The remaining Orders were read, and postponed.

It being after half-past Eleven of the Clock, Mr. SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.

Adjourned at Twenty-one Minutes before Twelve o'clock.