House of Commons
Monday, May 9, 1921
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
Portsmouth Water Bill,
Lords Amendments considered, and agreed to.
Ionian Bank Bill [ Lords ],
Oxford Motor Services Bill [ Lords ],
Read the Third time, and passed, without Amendment.
Bristol Water Bill [ Lords ],
East Surrey Water Bill,
Sutton District Waterworks Bill,
Westgate and Birchington Water Bill,
As amended, considered; to be read the Third time.
London County Council (Money) Bill,
To be read a Second time To-morrow.
Preston Corporation Bill [ Lords ],
Read a Second time, and committed.
Ministry of Health Provisional Orders (No. 2) Bill,
Ministry of Health Provisional Orders (No. 3) Bill,
Read the Third time, and passed.
MINISTRY OF HEALTH PROVISIONAL ORDERS (No. 6) BILL,
"to confirm certain Provisional Orders of the Minister of Health relating to Braintree (Rural), Broadstairs and St. Peter's, Caerphilly, Ripon, Sheffield, Southend-on-Sea, Whitley and Monk-seaton, and Shrewsbury and Atcham Joint Hospital District, and the County of Huntingdon," presented by Sir ALFRED MOND; read the First time; and referred to the Examiners of Petitions for Private Bills, and to be printed. [Bill 97.]
Oral Answers to Questions
Questions
Products Corporation, Limited
1 & 2.
asked the President of the Board of Trade (1) what actual cash payment has been made in respect of the 50,000 £1 shares, constituting the nominal capital of the Products Corporation, Limited; what is the annual turnover of this firm and of the businesses which it has acquired; if he can state from what sources this company, with its small capital, derives the financial backing necessary to the successful carrying on of the business transactions in which it is involved;
(2) whether the business of the Products Corporation, Limited, has been established at the instigation of the German financier, Herr Stinnes, to continue the sale in this country of German chemicals and other products, formerly carried on by firms which have been voluntarily dissolved because of their known German connections; and whether, having regard to the importance of making this country independent of Germany in regard to the supply of chemicals and other key products of which this corporation acts as agent for the Stinnes industrial group, he will institute an inquiry into the manner in which the firm came into being and the steps which it may be desirable to take to prevent German financiers obtaining a control of British markets in this secret manner?
As I informed my hon. and gallant Friend, the Board of Trade is making a full inquiry into this case, but I am not yet in a position to make a statement on the subject.
When does the hon. Gentleman think he will be able to give a reply to these questions?
As soon as the information is complete, but it would be very unfortunate to take any decision until the fullest possible inquiry has been made.
If I put down a question for the week after the Whitsuntide Recess, will the hon. Gentleman be able to give a reply?
I cannot tell. You may be very speedy in your attempts to get information, but the information may not be forthcoming with the same speed as it is sought.
Have inquiries so far shown that if German chemical and surgical instruments be prohibited, we shall be as a nation chemically and surgically inefficient?
I do not think that that arises out of the question. It is a matter more conveniently discussed in Debate.
Milk
asked the President of the Board of Trade whether he is aware that the price of milk in the metropolitan area has been fixed at 8d. per quart for the summer months; and whether, in view of the vital necessity of cheap milk to the working population, he will immediately appoint a Committee to inquire into and report on the cost of production and distribution with the view to determining what is a fair price to the consumer?
I understand that the price of 8d. is that recommended by the National Federation of Dairymen's Associations. The retail price of milk depends not only on the cost of production and distribution of such milk as is consumed directly, but also upon the loss which has to be incurred by the conversion of large quantities of milk at this season into butter and cheese, the prices of which are governed by those of imported supplies. The Report on Milk prepared by a Sub-Committee appointed by the Standing Committee on Trusts (Cmd. 1102) indicated that combinations of distributors had not dealt unfairly with either producer or consumer down to the autumn of last year, and I see no reason to think that circumstances are different at the present time. To reimpose control of milk prices would involve the re-engagement of a considerable and costly staff, and it is not clear that the consumer would ultimately benefit.
Am I to understand that in the view of the hon. Gentleman no reduction in the figure of 8d. is possible, and is it not a fact that milk is at present sold in certain areas at a cost of 6d. per quart. How can he explain the difference?
I should require notice of that question.
asked the President of the Board of Trade whether, in view of the fact that Sub-Committees of the Profiteering Department of the Board of Trade investigated the operations of the soap combine and the sewing-cotton combine with a view to ascertaining whether undue profits were being made, he will issue similar instructions to the Profiteering Department to investigate the operations of the milk combine in the Metropolis before the Profiteering Act expires on 19th May and not leave it to an individual member of the public, who has neither the time nor the money, to proceed against a whole industry before a local profiteering committee?
As I have just stated in reply to my hon. and gallant Friend, the Member for Battersea, South, the questions of combines in the milk trade has already been investigated by a Sub-Committee of the Central Committee, and I am sending my hon. Friend a copy of their report.
Trade and Commerce
Commercial Travellers (Sweden)
asked the President of the Board of Trade what is the amount charged per month by the Swedish Government to a British commercial traveller in Sweden, and what form of registration is involved; and whether there is any charge made to Swedish commercial travellers in this country or any necessity for registration on their part?
A British commercial traveller visiting Sweden must obtain a licence, costing 100 kroner. This licence is available for 30 days from the date of issue, and an additional 50 kroner is charged for every 15 days by which this period is exceeded. No charge is made to Swedish commercial travellers visiting the United Kingdom unless they solicit or take orders for goods for the sale of which a licence is required from domiciled traders, e.g., wines, spirits, &c. Commercial travellers visiting the United Kingdom from Sweden are not required to register as such.
While agreeing that it is more blessed to give than to receive, is it not a fact that in all these cases we are rather apt to give too much and receive too little?
That is a matter of opinion, but my hon. Friend will remember that it has been dealt with a great many times already this Session. The difficulty we are in is, that we could not put on in any special case a charge which would be a breach of the most favoured nation Clause.
If that is a most favoured nation treaty, how are we favoured?
Does any commercial treaty with Sweden contain a most favoured nation Clause which would prevent us from dealing—
Notice should be given of that question.
Imported Goods (Profits)
asked the President of the Board of Trade if the profit made by retailers of goods manufactured in Germany, Belgium, Czecho-Slovakia, and other countries is far higher than the profit made by them on the sale of similar goods made in this country; and if this inducement to press the sale of these foreign goods to the disadvantage of the home-made goods is resulting in great losses to the British labour market and the increase of unemployment?
There are no official sources of information as to the profits made by retailers in the sale of goods of any particular origin, but I have received representations in the sense of the allegations contained in my hon. Friend's question, and I think there is little doubt that such allegations are well founded.
Who is getting the profit? Is it the retailer or an intermediary?
That would depend on the circumstances of each ease. In some cases it is the retailer, and in others the middleman.
Petrol
asked the President of the Board of Trade whether he is aware that the prices of crude oil and fuel oil have fallen by 50 per cent. since May, 1920, whereas the price of petrol has arisen by 10 per cent. since that date; and whether, having regard to the fact that the cost of producing petrol is necessarily dependent in a large measure upon the costs of producing crude oil and fuel oil, respectively, he will institute an inquiry into the present prices of petrol?
The price of petrol has been closely investigated by a Sub-Committee under the Profiteering Acts, who reported in February and November of last year. I do not think any further inquiry would add to our knowledge of the general situation.
Can the hon. Gentleman say whether the facts are correctly stated in the question?
Is it not the fact that the rise in the price of petrol has kept pace with the rise in the value of Government shares in the Anglo-Persian Oil Company?
I think the figures given in the question are approximately correct.
Government Staffs
Closed Ministries (Transfers)
asked the President of the Board of Trade what is the salary in each instance of the 16 transferred servants from the Ministry of Food and the four transferred from the Ministry of Munitions to the Board of Trade who do not give their full time to their duties; what are their hours of work; and when will their services be dispensed with and their duties performed by members of the transferred staffs who work full time?
Of the 16 part-time officials transferred from the Ministry of Food to the Board of Trade, two have retired, three receive no salary, and two are Provincial Enforcement Officers at £300 a year. The remaining nine are expert technical advisers and receive remuneration for services actually rendered. The rate of remuneration for a full day's attendance is on the average three guineas. The liquidation of accounts involves constant reference to officials conversant with the administrative details, but would not justify the expense of their full-time employment. Their services will be dispensed with whenever they cease to be remunerative to the State. Questions relating to officers transferred from the Ministry of Munitions should be addressed to the Treasury.
Civil Service Organisations
asked the Prime Minister whether men serving in the Navy, Army, Police, or Civil Service get a war bonus; whether those serving in the Navy, Army, and the Police are allowed to join a confederation such as the Civil Service Confederation; whether they are allowed to join any organisation which expresses such views as those in the manifesto of the 12th April; and, if not, what are the reasons for such a discrimination?
The answer to the first part of the question is that the pay of the Navy, Army and Air Force is fixed on a post-War basis which does not provide for a cost of living bonus as a separate item, whereas the pay of the Police and the Civil Service consists partly of rates or scales of wages and salary and partly of a cost of living bonus. With regard to the latter part of the question it is certainly permissible for civil servants to form themselves into associations of a kind that would not be allowed in the case of the Navy, Army, Air Force and Police forces. Within the limits of question and answer I could not usefully enter into a discussion of the principles governing the regulation of these differently constituted branches of the public service, but it must be obvious to my Noble Friend that the same considerations do not apply, and indeed could not reasonably be made to apply, to all these services alike.
Questions
Oil Fuel
asked the President of the Board of Trade, in view of the proved efficiency of oil as a substitute for coal for motive power, what steps he is taking to secure an increasing quantity; and whether he will take steps to reduce the cost and also to stimulate the activities of the oil wells of this country?
This question is already receiving the careful consideration of the Government. There are ample supplies of fuel oil available, and its price is at present comparatively low. An important feature of the question is the need for adaptation of plant to burn oil, and I understand that this is at present under consideration by many power users. The oil wells of this country are, unfortunately, not yet a material factor in the provision of fuel supplies.
Coal Industry Dispute
Local Supplies
asked the President of the Board of Trade whether, notwithstanding the Emergency Regulations, citizens and townsmen's associations will be given fair opportunity of obtaining by lawful and peaceable methods the necessary supply of coal for their localities which, by active or passive methods of resistance, other sections of the community are seeking to deprive them of?
I am afraid I do not quite understand what is in my hon. Friend's mind. The whole object of the Emergency Regulations relating to the distribution of coal is to give all citizens a fair opportunity of obtaining coal for their urgent needs so far as the quantity available permits.
Suppose that hundreds of tons of coal are hung up in a river, how can the associations get hold of it?
By swimming for it.
Miners' Free Coal
asked the President of the Board of Trade what was the approximate value of the privilege with respect to obtaining coal free, or at reduced prices compared with the general public, enjoyed by persons engaged in the mining industry during 1920?
The value during 1920 to persons engaged in the mining industry of the privilege of the supply of free coal or coal at a reduced price is estimated at approximately £7,000,000.
Can the hon. Gentleman say what is it worth to the miners separately? Take the number of miners who have this allowance: how much is it worth to them per week?
I could not give an answer without notice, and I do not think that it would be very valuable because there are so many different cases.
Is it not a fact that the miners receive considerable advantage out of this free coal added to their wages, and that they also receive in many cases free houses?
I thought that that was dealt with by my answer.
Is the right hon. Gentleman aware that in those districts where, presumably, free coal is given, the basic rate in several instances is lower than that of other districts, and that there is an enormous number of districts where there is no free coal or coal at a reduced price granted to the miners?
I am not aware of that, but I do not dispute it.
Will the right hon. Gentleman make inquiries, and find out?
If the hon. and gallant Gentleman will put down a specific question, I will do so, but I cannot answer a general question like that.
Merchant Service (Distress)
asked the President of the Board of Trade whether his attention has been called to the distress which is now prevalent among merchant service sailors and their families and dependants at British ports in consequence of the coal stoppage; whether he will take into consideration the privations which are being endured by these men through no fault of their own, and who, having regard to the services which they rendered to the country during the War, have a powerful claim upon the nation; and what measures he proposes to take for the relief of these men and their families?
I am aware that there is a serious amount of unemployment in the mercantile marine, and there is no doubt that it has been increased by the Coal stoppage; but my hon. Friend will realise that anything in the nature of a special relief measure for one particular industry, at a time when all are suffering, would be out of the question.
Is the hon. Gentleman aware that there are large numbers of other classes of workmen affected in exactly the same way?
I have just said so.
Sittings of the House
asked the Prime Minister whether, in order to secure economy of fuel, the House can meet at 12 o'clock daily during the continuance of the coal strike; and whether, with the same object, an earlier closing hour can be fixed for all places of entertainment, relaxation, and refreshment, which depend upon the consumption of coal for their lighting?
asked the Prime Minister whether the Government will recommend that the House of Commons should meet on and after Tuesday next at 12 noon each day, and adjourn at 8.30 p.m. until the coal dispute is settled?
For reasons which have often been stated in the House by myself and others, I do not think that an earlier meeting of the House is necessary. With regard to the second part of my Noble Friend's question, I can add nothing to the answer which was given him on Thursday last.
Is the right hon. Gentleman aware that on Wednesday of last week, among the Emergency Regulations passed, one was passed which would empower the Government to take over the mines of the country? That being so, would not the taking over of the mines and the working of them obviate any difficulties?
Flooded Mines
asked the Secretary for Mines whether any addition has been made to coal mines which have been flooded since the last Report; and, if so, how many men were previously employed in such mines?
The number of mines now wholly flooded is 46. The number of persons employed in these mines was 14,656. The reason why the latter figure has fallen, while the former has risen, as compared with the figures which I gave on the 25th April, is that since that date some of the larger pits which were then flooded have been un-watered to the shaft bottom, while several smaller pits have become flooded.
Will the right hon. Gentleman issue a tabulated statement giving the names of the flooded mines and the districts in which they are situated? Is he aware that several large mines, which were in the list and are kept in, are now being inspected daily?
I have just said that there has been a change since the first figures were issued. I think I could give the figures for which the hon. and gallant Gentleman asks.
— ( a ) Earnings in June, 1914.) Earnings in June, 1914. ( b ) Estimated earnings in May, 1921, under Government's proposal.) Estimated earnings in May, 1921, under Government's proposal. ( c ) Earnings of June, 1914, with addition of 150 per cent.) Earnings of June, 1914, with addition of 150 per cent. South Wales: s. d. s. d. s. d. (1) Piece-work … … 9 4 20 0 23 4 (2) Day-wage … … 6 11٭ 14 2٭ 16 2 Scotland: (1) Piece-work … … 8 3 19 6 20 7½ (2) Day-wage … … 7 0٭ 14 0٭ 18 10 Yorkshire: (1) Piece-work … … 9 7½ 20 0 24 1 (2) Day-wage … … 7 6 14 6٭ 19 3 ٭ This is the lowest rate for this class of worker.
Emergency Regulations
asked the Prime Minister whether he is aware of the wide powers given to the Government in the Emergency Regulations passed by this House on 4th May; that if and when the property mentioned in ( a ), ( b ), ( c ), ( d ), and ( e ) of Regulation 13 is taken over by the Government it will be possible to make arrangements with the Miners' Federation and enable the Government to
Wages
asked the Secretary for Mines whether, under the proposals put before the Miners' Federation by the Government, he will say how, if 130 per cent. for the increase in the cost of living and 20 per cent. in order to provide the coal getter with a fuller life was added to his pre-War wage, such coal-getter's wage would compare with that which he could earn if he resumed work at the present time in Scotland, Yorkshire, and South Wales?
As the reply involves a number of figures, I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.
The following table shows the average earnings per shift of coal-getters (1) on piece-work, (2) on day-wage, in South Wales, Scotland, and Yorkshire, respectively, ( a ) at June, 1914, ( b ) as estimated for May, 1921, under the proposals submitted by the Government, assuming in each case a reduction of 3s. per shift as compared with March, and ( c ) with the addition of 150 per cent. to earnings of June, 1914:—
pay the miners the wages demanded, thereby putting an end to the present lock-out; and whether he is prepared to advise the Government to put Regulation 13 into operation at once?
I am aware of the wide powers given to the Government by the Regulation in question, but I am afraid they are not quite so wide as my hon. Friend suggests.
In order to give the Government a chance of making up its mind, I shall put down this question again three weeks from to-day.
Settlement Proposals
asked the Lord Privy Seal whether, seeing that the coal industry is a complicated one and that this House and the country are unavoidably ignorant of many facts necessary in order to form an instructed opinion, he will appoint a Select Committee of this House, composed of unofficial Members who have no connection with the coal trade, who would report on the conditions prevailing in the industry and what changes, if any, are desirable in order to secure permanent peace therein?
No, Sir, I cannot agree that the course proposed by my hon. and gallant Friend would bring about the end which he desires.
Railways (Oil Fuel)
asked the Minister of Transport whether he has considered the question of recommending the use of fuel oil for railway locomotives; if so, will he state his decision; and what steps he has taken in the matter?
asked the Minister of Transport whether he is aware that locomotives can be run efficiently on oil fuel; that in many countries oil is the sole fuel used in their railway systems; that abundant supplies of oil are available at British ports; and whether he will consider the advisability of using oil fuel for the railways to meet the crisis that has arisen owing to the curtailment of our coal supplies?
asked the Minister of Transport whether, in view of the shortage of coal, any of the railway companies are in a position to use oil fuel, which can be obtained for the use of locomotives; whether his Department has drawn the attention of the companies to this fuel; and whether he can bring any pressure to bear on them if this fuel can be used, so as to relieve the public from the present reduced passenger service?
The railway companies are fully aware of the possibility of utilising oil fuel for locomotives, and, with the object of saving coal, certain companies have already fitted engines with the necessary apparatus for the purpose of substituting oil for coal during the present emergency. I am in close touch with the railway companies in this matter.
Railwaymen
asked the Minister of Transport what is the effect on railway men owing to the present reduced services caused by the shortage of coal; are all or any of them put on short time or reduced wages, or have the railway companies, under their labour agreements, to pay a full week's wages to all men in railway service irrespective of the hours they work on the present short services, or are the companies enabled to save on their usual weekly labour costs; and can he say approximately what the weekly savings are to the companies?
Arrangements have now been introduced, with the agreement of the Railway Unions, under which the work will be shared out among the men, and the guarantee of a full week's wages was suspended as from Monday last. The men will, however, be guaranteed for the present a minimum of three days' work per week, and work to this extent exists. I am afraid that I cannot give an estimate of the savings that may be effected by this arrangement.
Electrical Power
asked the Minister of Transport whether, in view of the lessons of the coal stoppage and the danger of depending for the national industries on one type of fuel, he proposes to stimulate the development of electrical power to enable this alternative to be more generally utilised?
I am fully alive to the point raised, and am taking all possible steps to stimulate the development of electrical power.
Pit Ponies, Fife
asked the Prime Minister if his attention has been drawn to the case of two pit ponies left underground at the Leven colliery, Fifeshire; whether the local inspector's report confirms the statement that one of the ponies was injured whilst they were being taken into the mine workings on bogies; and if any steps can be taken to stop the prac- tice of taking ponies into mine workings on bogies, which makes their movement in an emergency difficult or impossible?
I have been asked to reply. I have had a further inquiry made by one of the local inspectors of mines, and find from his report that a member of the party who took one of the ponies in now states that the pony was kept on the bogie for on hour and a half while a fall was cleared. The register shows that the pony was lame for the next five days with a swollen leg, and it is impossible to resist the inference that the lameness resulted from his having been kept so long on the bogie. The report on which my answer of the 12th April was based did not bring out this fact, and I regret that I was not then aware of it. I will consult my advisers as to the feasibility of prohibiting the practice of taking horses into workings where they can only be got in or out on bogies. I agree with the hon. Member in deprecating the practice.
Unemployment
asked the Minister of Labour the figures of unemployment on 30th April; and how many men and women have been entirely thrown out of work owing to the coal strike, and how many were put on short time as a result of the strike?
The number of men, women, boys, and girls on the live registers of Employment Exchanges at 29th April was 1,854,000, while, in addition, there were about 1,077,000 persons on short-time working. The corresponding figures at 1st April, when the coal trade dispute commenced, were 1,506,000 and 884,000, respectively. It is not possible to state how much of this increase is due to the coal dispute, but the numbers of unemployed have increased more rapidly since the beginning of this dispute than in any recent corresponding period, and there can be no doubt that by far the greater part of the increase is due to the stoppage in the coal trade. I should add, that the above figures do not include the mineworkers, numbering over 1,000,000, who were employed in coal mines affected by the stoppage.
Is the hon. Gentleman aware that this week-end a number of employers have stated that they are going to shut down their factories and workshops for at least 14 days or more, and will those employés who have paid insurance be entitled to unemployed benefit?
As far as they, are insured under the Act, and as far as the works concerned come under the Act, I assume they will be entitled to their benefit?
Government Action
May I ask the Prime Minister or the Leader of the House whether the Government are taking, or contemplate baking, any further steps towards a settlement of the coal dispute?
I shall answer this question, together with a question by my hon. Friend the Member for Newcastle, North (Mr. Doyle), of which I have also received Private Notice. The Government are taking every care to ensure that no possible means likely to bring about a settlement is neglected. It would be inadvisable for me to say more.
On a point of Order. Arising out of the question that has just been answered by the right hon. Gentleman, may I ask if he will reply to the private notice question I sent to him to-day?
My hon. Friend asked a question concerning the proposals of Lord Weir. [HON. MEMBERS: "Let him read it!"]
What I desired to know was whether the attention of the Prime Minister has been called to the proposals of Lord Weir for the settlement of the coal dispute published in this morning's press; whether he is prepared to accept these proposals as a basis of agreement between the parties concerned and to recommend them to the coal owners and miners in order to terminate this disastrous struggle, which is rapidly becoming a strangle-hold on the industrial life of the nation?
I think it would be very inadvisable for me to express any opinion upon the many sug- gestions which have been put forward in connection with the dispute. I am always very glad to consider any suggestion, but to pick one out and express an opinion on it is, I think, inadvisable.
Peace Treaties
German Reparation
asked the President of the Board of Trade whether, in view of the German Reparation (Recovery) Act, Order 6, issued by his Department, deciding that goods imported from the Saar basin, which is in French occupation, are to be considered, for the purpose of the above Act, as being goods of French origin, he is prepared to issue similar orders that goods from the Cologne area, occupied by the British, and the Coblenz area, occupied by the Americans, are to be considered as of English and American origin?
No, Sir. I would point out that the Saar Basin is not in French occupation in the same sense as that in which the other areas mentioned in the questions are in Allied occupation. The possession and exploitation of the coal mines is ceded by the Treaty of Peace to France, but the government of the territory is administered by the League of Nations in the capacity of trustee. It was for these reasons that it was thought inexpedient that the products of the basin should be treated in the same way as the products of German territory, whether occupied or not.
asked the Prime Minister whether he can state the French plans for the occupation of the Ruhr if the ultimatum is rejected by Germany?
asked the Prime Minister whether the German Reparation (Recovery) Act will be suspended in the event of the German Government accepting the latest proposal of the Allies for the payment of reparations?
I can add nothing to the very full statement which I made on Thursday last.
Cannot the right hon. Gentleman answer "Yes" or "No" to the question whether the Reparation (Recovery) Act will be kept in force in case of the present arrangement being satisfactorily concluded with Germany?
I think I will see, first of all, how it works.
Is the right hon. Gentleman aware of the great inconvenience caused to British traders by the present state of uncertainty?
Could not the Prime Minister say that the German Reparation (Recovery) Act will be suspended or withdrawn if the 25 or 26 per cent. on German exports is continued, as he suggested in his speech with regard to reparations? Are the two to be exercised simultaneously?
No, I made that quite clear. I can give no answer, at any rate, until I know that the Germans have accepted the terms.
Is the right hon. Gentleman aware that he made no statement with regard to the Reparations (Recovery) Act at all, and cannot he state the Government's policy?
I think I stated that it was at the option of the Governments concerned.
On the contrary, will the right hon. Gentleman give an assurance that that Act will not be suspended, but will be kept in force?
( by Private Notice ) asked the Chancellor of the Exchequer whether, in view of the terms of the German Reparation (Recovery) Act, 1921, if a British importer finds it necessary to pay the full purchase price to the German exporter in respect of any goods, a similar amount should be paid to the Customs Authorities and not only an amount equal to 50 per cent. of the invoice price of the goods?
The answer is in the affirmative. The levy is fixed at a percentage of the value of the goods. That value is defined by Section 3 (1) as including the sum pay- able to the Commissioners, and Section 3 (2) provides that the invoice shall be accepted as primâ facie evidence of the value, if it includes the sum payable to the Commissioners. The value on which the prescribed percentage is payable to the Customs is, therefore, the sum of the amount payable to the German exporter and the amount payable to the Customs, and while that percentage remains fixed at 50 per cent., it follows that if the whole invoice price is paid to the Germans an equal amount is payable to the Customs, being 50 per cent. of the value of the goods as defined by the Act.
Will the Parliamentary Secretary to the Treasury explain how it is possible for Commissioners of Customs to demand 100 per cent. of the value when the German Separation Recovery, 1921, limit the duty to 50 per cent.?
The question asked and answered by me had reference to the interpretation of the Act; that interpretation is as I have given it.
Is not this an Act for retaining 50 per cent. of the value? If the value is £100, by what process do you claim £100 from the importer?
The hon. Gentleman is asking a question on policy, and I must ask for notice of it.
Treaty of Versailles (Amendments)
asked the Prime Minister whether he will issue a White Paper indicating the Amendments to Annex II to Part VIII of the Treaty of Versailles which will be rendered necessary by the new terms presented to Germany?
The important parts of the text were published in Friday's newspapers, and I should have thought that it was unnecessary to go to the expense of printing and circulating them as a White Paper. But this shall, of course, be done if the hon. Member presses his request.
May I ask why, in a matter of this kind, we should be referred to the public Press? Would it not be better to have a White Paper placed before the House?
I agree, if there be a real desire to have it, but to print all the documents would involve a vast addition to printing expenses.
Questions
Major Blackwell
asked the Prime Minister whether his attention has been called to a statement made in the King's Bench Division of the High Court of Justice, on 29th April, that a certain Major Blackwell had been employed on semi-official publicity work during the year 1920 at a salary of £2,000 a year; whether he is aware that, in reply to a question by Mr. Justice Shearman, counsel for the said Major Blackwell stated that he could not say whether or not this salary was paid out of public moneys, as that might be giving away a secret; whether, in view of these statements, he will say whether Major Blackwell received any payments from public moneys during the year 1920; if so, what amounts and in return for what services; if Major Blackwell is still being employed in an official or semi-official capacity at the public expense; and, if so, on what Vote his salary or emoluments will be charged?
My attention had not previously been called to the statement referred to. I am not aware of any pay to Major Blackwell from public funds, either at the present time or in 1920.
Greece and Turkey
asked the Prime Minister whether the Greek Government has invited the intervention or mediation of the Allies in the present and new hostilities between the Greeks and Turks; whether arrangements are being made for the abdication of King Constantine of Greece; and whether any steps are now being taken by His Majesty's Government to bring about peace between the Greek and Turkish Governments?
The answer to the first and last parts of the question is in the negative, and, so far as His Majesty's Government are aware, the answer to the second part of the question is in the negative also.
May I ask the Prime Minister whether the Græco-Turkish situation is being very closely watched and whether he will seize any favourable opportunity of mediation with the view of settling that part of the world?
Certainly.
League of Nations
Mandated Territories (Taxation)
asked the Prime Minister whether it will be competent to a mandatory Power to tax the inhabitants of the mandated territory for administrative purposes or whether such Power must in such case obtain the permission of the League of Nations?
The answer to the first part of the question is in the affirmative.
Without the League of Nations?
Tanganyika
asked the Prime Minister whether the amendments by the mandates sub-committee of the executive committee of the League of Nations Union to the draft mandate for Tanganyika, as published in the Press, have any, and, if so, what, official or other authoritative or responsible origin?
The Government is in no way responsible for the Press statement referred to by the hon. Member.
If this body has no official backing, is the Under-Secretary of State in Order in canvassing for it on the Floor of the House and offering to pay the subscriptions of new members?
That is a question which should be addressed to Mr. Speaker.
Russia
Industries
asked the Prime Minister whether the Government has official information to the effect that the Soviet Government of Russia has arrived at the conclusion, after a lengthy experiment, that industries must either be denationalised or destroyed?
His Majesty's Government have received no official information to this effect.
Trade Agreement
asked the Prime Minister whether now that we have concluded a trade agreement with Soviet Russia, he can state the exact territories to which the operation of this agreement applies?
I have been asked to reply. The trade agreement applies to the areas under the control of the Russian Socialist Federal Soviet Republic. I am not in a position to define with precision the exact boundaries.
Does that include Siberia as well as European Russia?
It is exactly that kind of question, as to the extent to which Siberia is at present under the control of the Soviet Government, which makes it impossible to decide what are the boundaries.
Questions
Central Control Board (Liquor Traffic)
asked the Prime Minister whether the new regulations of the Central Control Board (Liquor Traffic) will embody a relaxation of present regulations to the extent of permitting persons obtaining meals in hotels and restaurants to be supplied with excise-able liquor with those meals, if required, without restriction of hours up to the time fixed for closing of public-houses in the localities in which they are situated, and also of removing all restrictions in respect of the sale and supply of excise-able liquor to persons permanently residing in hotels and clubs?
I have been asked to reply to this question. I cannot say whether the Board will think it right to adopt these suggestions, but I have no doubt that they will pass them under careful review in the course of the consideration which, I understand, they are prepared to give to the whole subject.
asked the Prime Minister whether, in view of the suggested conference which the Government propose to convene for the purpose of endeavouring to secure agreement on the subject of licensing legislation, he can give an assurance that there will be no further relaxation of the regulations of the Central Control Board (Liquor Traffic), especially in the matter of the hours during which it is permissible to sell liquor, pending the sittings of the conference?
No, Sir. I do not think it would be desirable to give an assurance which might in any way prejudice the powers or the policy of the Board.
Is not the question of the hours of opening licensed premises one of the most important questions which could be considered?
Is the right hon. Gentleman aware of the strong feeling amongst working people against the continuation of these restrictions?
Secretary for Wales Bill
asked the Prime Minister whether, seeing that it is the unanimous desire of the Welsh Members of this House that a Secretary for Wales should be appointed in order that Wales should have the same advantages and privileges as Scotland enjoys in the matter of separate administration, the Government will give facilities during this Session for the passage of the Secretary for Wales Bill now before the House?
In view of the great pressure on the time of the House, and the desirability of avoiding an Autumn Session, the Government cannot promise facilities for private measures.
Are we to understand that Wales is to get less consideration than Scotland? Is no time to be devoted to the Principality in this House?
I do not think Wales has anything of which to complain. It would be quite impossible to give time this Session for the consideration of Bills of this sort.
Will the right hon. Gentleman consider the advisability of having an Autumn Session? Is he aware that Welsh Members of all parties are strongly in favour of this measure and, having regard to that, will he consider an Autumn Session?
The hon. Member is repeating the question which is on the Paper.
Railway Bill
asked the Prime Minister whether, in view of the fact that the 500,000 stockholders of the railways are anxious to have the opportunity of considering and, if necessary, discussing at public meetings the terms of the forthcoming Railway Bill, he will defer taking the Second Reading of the Bill until after the Whitsuntide Recess?
The answer is in the affirmative, but it is intended to introduce the Bill this week.
Bastardy Bill
asked the Prime Minister whether he is aware of the great volume of support that exists in the country for the Bastardy Bill; whether he realises that the Bill is identical in its Clauses with the Bill which left the Standing Committee last Session; and whether, in view of its simplicity and of the urgent needs of its reforms, he will facilitate the passage of the Bill into law?
It is premature, until we see what time is available at the end of the Session, to make any fresh promises as to the allocation of the time of the House.
Members of Parliament
Income Tax and Railway Fares
asked the Prime Minister whether the Government have considered the Report of the Select Committee on Members' Expenses; and, if so, can he state their decision thereon?
Yes, Sir. The Government have carefully considered the Committee's Report, and will propose to the House that the whole of the existing allowance of £400 should be paid free of Income Tax; and that there should be granted to all Members first-class railway travelling between London and their constituencies and homes. These changes will take effect as from 1st April, 1921. It is not proposed to adopt the other recommendation in the Select Committee's Report relating to free postage.
Will the right hon. Gentleman say if that will be done before we rise for the Whitsuntide Recess, so that the railway passes will be available then?
Yes. We are endeavouring to arrange that, but, if not, Members will be recouped for any money which they have had to spend.
Will steamboat fares be allowed to Members who represent island constituencies?
Yes, Sir; it is intended to provide for travelling between the House of Commons and all constituencies.
Does it apply to an unlimited number of journeys, or only one per month?
An unlimited number.
May I ask the right hon. Gentleman to explain the exact meaning of making this retrospective as to 1st April? Are we to recover what we have spent since that date?
What I had in mind was the case of Members who had to renew season tickets. This was raised when the subject was last before the House, and I was asked if the Government—for reasons which were within the knowledge of the House—was unable to come to a decision earlier, that the position of those Members whose tickets were expiring should not be prejudiced. I do not mean to say that every Member who has taken a single individual ticket is to be recouped, but that they shall be recouped for season tickets.
Will there be an opportunity for the House to debate this question? In view of the fact that there is a grave industrial situation in this country, may we not have an opportunity of deciding whether this proposal should be suspended or not?
Is it proposed to issue season tickets between London and the constituencies to Members, or must they apply on each separate occasion?
Will this cover bus fares, as far as London Members are concerned, or will it go as far as taxi-cab fares?
No, Sir. There is a public call upon Members in the discharge of their duties bearing very unequally, according to the distances of their constituencies and their homes from the House of Commons. We think, and I believe the House thinks, after an inquiry into the matter, that it was in the public interest this should be met. Such a proposal as that of my hon. Friend would only make the House ridiculous.
As regards the question of my hon. and gallant Friend below the gangway (Lieut.-Colonel Croft), there will be an opportunity for discussing this matter on the Supplementary Estimate which will be required to meet the expenses. [HON. MEMBERS: "What date?"] I cannot name a date. As regards the other questions put to me, it is not proposed to issue season tickets, but I cannot at this moment give any details. I have been anxious to afford the House every information on the Government proposals generally, but I am not in a position to state details. It would not appear to me that the Government should provide season tickets for every Member.
Questions
Lotteries
asked the Prime Minister whether his attention has been called to the fact that a large money Derby sweepstake is now being organised upon the London Stock Exchange; and whether the Government proposes to take steps to prohibit illegal lotteries of this character being permitted?
My right hon. Friend has asked me to reply to this question. A quasi-private lottery, participation in which is strictly confined to members of the London Stock Exchange, and honestly conducted, as undoubtedly this would be, is not such a sweepstake as calls for interference by the Government.
Is the right hon. Gentleman aware that in the recent proceedings under the Lotteries Act against a Member of this House the Attorney-General distinctly stated that all such sweepstakes as these were illegal lotteries, and would the right hon. Gentleman consult the Attorney-General, and keep an eye on the Stock Exchange and the Carlton and Reform Clubs to stop these illegal lotteries?
Will the organisers of the Victory Bonds also be proceeded against? [HON. MEMBERS: "French premium bonds!"]
I do not know that the particular lottery referred to in the question is of the same sort.
Do I understand that the right hon. Gentleman regards a sweepstake on the Derby promoted by the Stock Exchange as legal?
Of course it is. Everything they do is legal.
I have nothing to add to my answer.
Consult the Attorney-General.
Ireland
Military Operations
asked the Prime Minister whether any Cabinet decision has been made to the effect that official reprisals for outrages will be taken against selected persons known to have rebel sympathies, although proof of their implication has not been proved, as announced in a military proclamation at Listowel on the 28th April?
I am informed by the Commander-in-Chief that the military governor of the martial law area ordered the destruction of four houses at Listowel as a punishment for the murder of Sir Arthur Vicars, because the owners had aided and abetted the rebels in their campaign of murder although there was no definite proof that these particular owners were the actual perpetrators. This action was taken by the military governor on the discretion vested in him under martial law.
Would the Prime Minister kindly answer the question, whether the announcement made at Listowel, that in future premises would be destroyed, whether proof of implication is forthcoming or not, was made with the authority of the Cabinet?
I have already answered the hon. Member that the action in question was taken by the commander-in-chief and the military governor and, so far as I know, both of them have the support of the Cabinet and the Irish Government.
Has the announcement, that in future burnings would take place whether there is proof or not, been made with the authority of the Cabinet?
I have answered that in the case of Listowel four houses were actually burned, but I have no information as regards any Proclamation.
asked the Chief Secretary if he is aware that considerable offence has been given to the parishioners of St. Mary's Catholic church, Rathmines, by the fact that the precincts of the church have been made a loitering place by soldiers and that while, in response to representations made to the military authority, a marked improvement has taken place, it is still possible to remove any cause for complaint; that, upon the night of Good Friday last, Mr. Philip Francis Little, residing at 30, Rathmines Road, Rathmines, county Dublin, was followed from his house to the sitting-room of the parish priest, and was there covered with revolvers by five of his pursuers, who ordered him to accompany them; and that, leaving the room of the parish priest and accompanied by Father Mulderry, Mr. Little went out to the street and the parties concerned separated without further incident, but that Mr. Little found upon his return to his house that two plate-glass windows and his hall door had been smashed and that his watch, valued at £8, was missing; can he say with what object Mr. Little was raided; and whether he will be compensated for the resulting damage to and loss of property?
I have asked the commander-in-chief to furnish me with a report with reference to these allegations. Perhaps the hon. Member will kindly repeat the question on Thursday.
Castleconnel Inquiry
asked the Chief Secretary whether his attention has been called to the statement that the public are excluded from the Castleconnel inquiry; and whether the Reports of the Debate on the incident in the House of Lords have been excluded by the military censor from the local Press?
The Press and relations of those interested were admitted, which gave ample publicity. The Reports of the Debate on this incident in another place were also published in the Press in Cork.
Was the statement that the public crowded the court substantiated by the facts?
Ambush, County Donegal
asked the Chief Secretary with reference to the alleged ambush near Mountcharles, County Donegal, on the 22nd ultimo, whether he is aware that the people in the district strongly deny that any ambush took place; whether Crown Forces subsequently dragged from their homes a young lady named Waugh and a lad named Albert Griffen and maltreated them; whether Miss Waugh has since been in hospital; whether a policeman named Chapman has been identified as assaulting Griffen when in custody; whether, when burning and looting in Mountcharles, the police fired upon the house of Miss M'Manus and shot dead Police-constable Hughes and Miss Horley who were inside the house at the time; and whether a public and sworn inquiry will be held?
A military court of inquiry found that a party of Crown Forces consisting of one military officer and nine other ranks with four constables from Donegal, were ambushed on the afternoon of the 22nd February last at a point on the road between Donegal and Mountcharles, about half a mile from Mountcharles, and that one constable named Satchwell was killed. I am not aware that this occurrence has been denied by any person in the locality. The report of the proceedings of the inquiry contains no evidence with regard to the alleged subsequent ill-treatment of Miss Waugh and Albert Griffen, and I have therefore called for a special report with regard to these matters. The court of inquiry commented strongly on the refusal of the civilian residents of the district to assist them in their investigation into the charges made against the Crown Forces in connection with the disturbances which followed the ambush, and on the evidence before them were unable to give any definite finding in regard to the manner in which Miss Horley and Constable Hughes met their deaths. Separate courts of inquiry in lieu of inquest which were faced with the same difficulties in obtaining evidence, found that Miss Horley was murdered by some persons unknown, and that the circumstances of Constable Hughes' death were a matter of uncertainty.
Assaults (Alleged)
asked the Chief Secretary whether he has received the reports of the inquiries made into the treatment at the hands of the Crown Forces of the following persons elected to represent the Irish people, namely, Councillor W. Allen, of Tipperary, who was visited at his business premises on 23rd October by Auxiliary Police, who flogged him and his son; County Councillor P. Forde, Loughrea, County Galway, who was taken from his bed and beaten by constabulary on 1st November; Councillor J. Brennan, who was taken from his bed in Kilkerrin, County Galway, and beaten by constabularly on 5th November and sent home naked; County Councillor J. Harte, of Leitrim, who was taken from his bed by constabulary and beaten on 5th November; Councillor W. O'Grady, of Rathdrum, County Wicklow, who was taken from his bed and beaten by constabulary on 18th December; and Councillor W. Loughrey, Killala, County Mayo, who was taken from his bed at 2 a.m. on 28th January and flogged by constabulary, who beat him about the head and shoulders with Indian clubs belonging to his children; and, if so, whether he is prepared to make any statement with regard to them?
I have called for a special report with regard to each of these cases, from which it appears that these persons did suffer ill-treatment on the dates stated in the question; but it has not been found possible to establish by whom they were maltreated. If proof is forthcoming that the police were responsible, severe disciplinary action will be taken.
Arrests
asked the Chief Secretary whether T. J. Redmond and Patrick O'Reilly, of Mullingar, both members of the Irish Transport and General Workers' Union, were arrested by members of the Crown forces on 6th March, 1921; whether Redmond, after being kept in custody for five week, was unconditionally released on 28th April, without being brought to trial or any charge being preferred against him; whether O'Reilly was charged with being in possession of a rifle bullet, which on investigation was proved to be a bullet-shaped lead pencil; whether the witnesses for the prosecution were unable to produce the lead pencil at the trial, but produced in its place a new rifle bullet which they swore was similar to the one found in O'Reilly's possession; whether O'Reilly, after being acquitted on 13th April, was immediately rearrested in the military barracks, Mullingar; and why he has since been kept in detention without any charge having been preferred against him?
Thomas Redmond was arrested on the 26th March, and not on the 6th as stated in the question. A number of papers were found in his possession showing, among other things, that he had been appointed a Sinn Fein Magistrate, and that he was a local organiser of the Belfast boycott. After inquiry, his activities and influence were not considered to be of such importance as to make a prosecution necessary, and he was accordingly released as stated on 28th April. I regret that my inquiries into the case of O'Reilly are not yet completed.
Is it the practice and custom to keep a number of men in prison without any trial for a number of weeks?
As soon as inquiries can be made with reference to the evidence against them, they are either brought to trial or released.
Are we then to understand, in a case like this, it has taken the authorities something like four weeks to make the investigation?
Yes, it takes a very considerable time in certain districts to make investigations of that kind.
Is any compensation paid to the victims of illegal arrest?
No, Sir; as a rule the arrest is not illegal.
Has any charge ever been brought against O'Reilly, and on what ground is he still being detained?
I am still making inquiries in the case of O'Reilly. My answer applied to Redmond.
Execution (Patrick Casey)
asked the Chief Secretary whether Patrick Casey, who was executed in Mitchelstown, county Cork, within 25 hours of his arrest, was tried by court martial or by a military court; whether under court martial procedure a prisoner is given adequate time to prepare his defence and, in case of sentence of death, the proceedings of the trial must be submitted to and approved by the Judge Advocate-General in London before the sentence is carried out; whether the same procedure obtains in the case of military courts; and, if not, why a different procedure is adopted?
Patrick Casey, who was caught in the act of attempting to shoot an officer and was in arms joined with others in rebellion against His Majesty, was tried by a military court in the martial law area, sentenced, and convicted. The sentence was confirmed by the Military Governor. The procedure governing courts martial has no application to the cases of military courts in a martial law area and never had, and this has frequently been established in court. A Proclamation to this effect was issued by the Commander-in-Chief so far back as 12th December, 1920.
Will the right hon. Gentleman say why the same procedure as that in courts martial is not followed in military courts, and what reason there is for not adopting it now?
Because, as I have mentioned, the one is a military court in the martial law area, and the other a court martial under the Restoration of Order (Ireland) Act. It has been found after many years' experience that a summary sentence of the description mentioned has a great effect.
If the sentence on the prisoner happens to be incorrectly arrived at, what safeguard has the prisoner?
Such a thing is done only in a very serious case. [HON. MEMBERS: "Oh!"] In this case the man was caught redhanded. He shot at the officer and missed him, and was seized on the spot.
Will the right hon. Gentleman give us an assurance that in future the same procedure that is adopted in courts martial will be adopted in the military courts' inquiries? [HON. MEMBERS: "No."]
Would the right hon. Gentleman convey to the Prime Minister the desirability of carrying the analogy of the American Civil War with the treatment of these prisoners of war?
No, Sir. In the case of a court martial, as I have already mentioned to the House, there is a special provision; the case of the military courts in the martial area are quite different.
Were prisoners of war shot during the American Civil War?
How long was this man given to prepare his defence?
He was shot within 25 hours of arrest. He was attended by a clergyman who spent hours with him before his execution.
I beg to give notice, Mr. Speaker, that I shall ask leave to move the adjournment of the House on this matter.
Is the right hon. Gentleman aware that in an interview published, apparently with his full authority, in an American journal, Sir Nevil Macready laid stress upon the fact that everyone condemned to death by a military tribunal in Ireland had days, if not weeks, to prepare his soul for the end?
I have already answered that. I said that the Commander-in-Chief was referring to cases of trial by court martial under the Restoration of Order (Ireland) Act, and not to the military courts in the martial law area.
Questions
Passports and Visas
asked the Undersecretary of State for Foreign Affairs whether His Majesty's Government would agree to make inquiries of France whether the Government of the latter country would be prepared to abolish visas on passports of each other's nationals were Great Britain to reciprocate?
A proposal of this nature from the French Government is now under consideration.
Cilicia
asked the Under-Secretary of State for Foreign Affairs whether His Majesty's Government have yet received any information, and, if so, what, as to the terms arranged between France and the Kemalists with regard to the French withdrawal from Cilicia; whether he can say how the proposed gendarmerie will be constituted and commanded; and what measure of responsibility will be retained by France for the Christian population of Cilicia?
We have some information from the Press and other sources as to the terms of the agreement said to have been concluded between the French and the Turkish Delegation in London; although we have not heard that it has been confirmed by the Turkish Assembly at Angora. Subject to this reservation, it appears to have been in contemplation to withdraw the French troops within a month of the cessation of hostilities, to utilise the existing gendarmerie under French officers as the nucleus of the new gendarmerie, and to demand guarantees for the protection of minorities.
Does the hon. Gentleman mean to say the Government have no official information from the French Government on this important matter?
I have said that it is stated in the Press and other sources.
asked the Under-Secretary of State for Foreign Affairs whether he has received any information as to the intention of the Christian population of Cilicia to leave the country in the event of the French evacuating it; whether the Christian inhabitants of Aintab have left that town in consequence of the French evacuating it; and whether the Christian inhabitants of Cilicia and some of the non-Turkish Mohammedan inhabitants have protested against the French evacuation?
A telegram from Larnaca addressed to the Foreign Office on 11th April by certain representatives of the Christian population of Cilicia urged the Allied Governments to evacuate all the local Christian population, if the withdrawal of the French troops could not be delayed. This telegram was communicated to the French Government. The Foreign Office have no information regarding the evacuation of Aintab by the Christian inhabitants. The answer to the last part of the question is in the affirmative, so far as the Christian inhabitants are concerned. It is uncertain whether any signatories of the protests received were non-Turkish Mohammedans.
Are we to interpret these two answers as meaning that after the promises made, the Christians, namely, the Armenians, in Cilicia and other parts occupied by Armenians, but specially Cilicia, are to be refused evacuation, and to be exposed once more to the renewal of butchery of them by the Turkish authorities?
I hope my hon. Friend and the House will not assume that.
Does my hon. Friend accept the underlying suggestion that-this country should persuade the French to stay in Cilicia to look after the hon. Gentleman's friends?
Is it not a fact that this country handed over Cilicia to the French on distinct promises on the part of the French Government that they would protect this population?
Local Authorities (Salaries)
asked the Minister of Health whether the circular letter issued by him in February last upon the subject of economy in the administration of local authorities, was intended to suggest a reduction of the salaries and wages paid to the employés of local authorities?
There is nothing in the circular to suggest that economy is to be sought by reductions in the reasonable emoluments of officers of a local authority. The arrangements for the payment of war bonus and for the periodical revision of rates of war bonus made by the Government for the Civil Service have been communicated to local authorities for their information, and if and when a reduction takes place under the machinery provided, I will see that local authorities are duly informed.
Is the right hon. Gentleman aware that some local authorities have used the letter as an excuse for the reduction of such salaries and wages?
I believe there have been cases of that kind.
Housing (Portsmouth)
asked the Minister of Health if he is aware that the instructions issued by his Department for the erection of 100 houses on a garden city site on Portsdown Hill, four miles from the centre of the borough of Portsmouth, are in opposition to a resolution of the Portsmouth Town Council in December last, and that the architect's estimate for roads and drainage on the site in question adds to the cost of the land about £1,500 per acre and thereby renders it impossible to build houses at a rent within the reach of the working classes by whom they are required; and will he explain the reason for withholding per- mission for the construction of 1,000 houses within the old part of the borough on land already laid out in roads and drained, and for which plans have been submitted to the council by local builders?
Before the right hon. Gentleman answers this question, does he not think the Portsmouth Town Council are probably the best judges of what they require?
I would not like to offer an ex parte decision on that matter. I am aware of the resolution to which my hon. and gallant Friend refers, but I would point out that, by a later resolution passed on the 15th of February last, the local authority decided to proceed with the present scheme. No estimates as to the cost of roads and drainage have yet been submitted to my Department. As regards the last part of the question, my hon. and gallant Friend appears to be under a misapprehension, as in addition to the houses on the Portsdown Hill site my Department have approved the erection of 405 houses on other sites by local builders.
Is the right hon. Gentleman aware that a message was sent to the Portsmouth Town Council that until these 100 houses have been built on Portsdown Hill no further consent would be given for building houses within the borough?
I have pointed out that there must be some misapprehension in my hon. and gallant Friend's mind, because 405 houses are being built in other parts of the borough.
Indian Army (Officers' Allowances)
asked the Secretary of State for India whether he can now state when the British married officers of the Indian Army are to be given the same allowances as are given to married officers of the British Service quartered in India?
The allowance given to married subalterns of the British Service in India, which I suppose is what my hon. and gallant Friend has in mind, is confined to officers commissioned from the ranks while serving therein on ordinary engagements. The question of the extension of this concession to officers of the Indian Army does not arise, as there is no corresponding class.
Transport
Roads (Classification)
asked the Minister of Transport whether his Department has reached any decision regarding the classification of roads in Fifeshire?
The provisional classification of roads in Fifeshire has been settled and is being communicated to the County Council. As I have already explained on previous occasions, the classification is a provisional one for this year, and any representations received from highway authorities will receive full consideration in the revision of the provisional scheme.
Shell-Fish (Railway Rates)
asked the Minister of Agriculture if he can now give the result of his communications to the Ministry of Transport relating to the high rates for the carriage of shell-fish from Lincolnshire and Norfolk to the London and other markets?
I have been requested to answer this question. I have already asked the railway companies for a full report upon the whole matter and will communicate further with the hon. Member as soon as I am in a position to do so.
Questions
Ex-Service Men (Building Trade)
asked the Minister of Labour whether he is aware of the issue of a circular by the National Federation of Building Trade Operatives forbidding its branches to help in the training of ex-service men, and directing them to prevent ex-service men from enjoying the instructional facilities promised to them by the Government; what action has he taken in the matter; and whether the Government will itself train these ex-service men and dispense with the federation once for all?
Yes, Sir. I have seen with regret references in the Press to the circular. As my right hon. Friend the Minister of Labour said last Thursday, we are going on, all the same. The employers are carrying out their patriotic undertaking to help these men and are signing on men from amongst those who have made application to join the scheme. The Government has already announced its intention to take whatever steps are necessary to make the scheme a success, and will employ and train ex-service men on Government building work in the same way as other employers.
Has the hon. Gentleman seen a copy of the circular?
I believe that the circular printed in the Press was an accurate reprint, and I have seen that.
Unemployment
Grants Standard
asked the Minister of Labour whether he is aware of the dissatisfaction prevailing regarding the attitude taken up by the Ministry of Labour in connection with applications for grants from the unemployment committee unless the number of unemployed persons reaches the standard fixed by the Department as the basis of its recommendation to the committee; and whether he will take the necessary steps to abolish such standard and issue certificates in respect of any area where unemployment exists with a view to a proportionate grant being made to any local authority whose schemes for the relief of unemployment are approved by the Government Department?
I would, refer my hon. Friend to the answer given to the hon. Member for Wigan (Mr. Parkinson) on 12th April, a copy of which I am sending him.
Cotton Operatives
asked the Minister of Labour whether his attention has been called to the fact that the Cotton Control Reconstruction Board has now exhausted all its available funds for the relief of out-of-work cotton operatives; whether these men hitherto receiving such help automatically come on the list of those to whom the unemployment donation is awarded; and how much, in that case, the initial aggregate weekly outlay is expected to be?
I understand that the Cotton Control Reconstruction Board ceased paying grants to out-of-work cotton operatives at the end of last week. These grants were additional to the unemployment benefit (if any) to which the recipients were entitled. The cessation of the grants, therefore, will not cause any increase in the amount of unemployment benefit otherwise payable.
Is the hon. Gentleman aware that the cotton operatives are under notice now to accept a reduction of 31 per cent. in their wages?
That is not relevant to this question.
Insurance Benefit, Ebbw Vale
asked the Minister of Labour why unemployment insurance benefit has not been paid to men who were in the employ of the Ebbw Vale Steel, Iron, and Coal Company, and were discharged by the company owing to depression in trade prior to the general coal stoppage; and, as this is entailing considerable suffering on the families of these men, will he take steps to ensure that they shall be paid without further delay?
Inquiries are being made in the matter, and I will communicate the result to my hon. Friend.
Questions
Superannuation (Private Schemes)
asked the Minister of Labour whether he has any information showing the number of schemes of superannuation for employés run by private enterprises in Great Britain; if so, how many members of such schemes are there; and what is the average amount of such superannuation?
The Ministry of Labour has collected no statistical information as to superannuation schemes, but certain figures covering a number of local governing authorities and private firms were given in a statement submitted to the Royal Commission on Income Tax on 18th June, 1919, by the Conference of Superannuation Funds. I would accordingly refer my hon. Friend to the second instalment of the Minutes of Evidence of the Royal Commission (Command Paper 288–2 of 1919).
School Teachers, Superannuation
asked the President of the Board of Education whether he is aware that an Order was issued by the Board on the 6th January, 1920, extending the School Teachers (Superannuation) Act, 1918, with certain modifications, to the Isle of Man, and that on the 9th December, 1919, a similar Order was issued extending the Act to Jersey; whether negotiations are proceeding with the authorities in Guernsey with the object of a similar extension to that island; and whether the Government intends to effect an early extension of the provisions of this Act to Ireland?
I understand from my right hon. Friend the President of the Board of Education that Orders have been made under Section 20 of the School Teachers (Superannuation) Act, 1918, extending the provisions of the Act with certain modifications to the Isle of Man, Jersey and Guernsey. The Act does not provide for similar extension by Order to Ireland, and expressly enacts that it shall not extend to Ireland. With regard to the last part of the question, I would refer the hon. Member to the reply given to a question on this subject by the hon. Member for the Scotland Division of Liverpool (Mr. O'Connor) on the 7th instant.
Distress for Rent
asked the Solicitor-General whether, in view of the fact that consideration was being given in June last year to the suggestion that the limit of £5 worth of wearing apparel, bedding, and tools and implements of a man's trade privileged for seizure in execution or for distress for rent was much too small under modern conditions, legislation will be introduced at an early date to remedy this?
The limit named as fixed by the County Courts Act, 1846, was re-enacted by the County Courts Act, 1888, and by the Law of Distress Amendment Act, 1888. I am not aware that legislation upon the matter is proposed.
Fire Telephone, Andover
asked the Postmaster-General if he is aware of the notice which has been served on the Andover Corporation to increase the rental of a private telephone line leased to this body for their fire brigade call system; that the original cost of this installation in 1902 was about £50; that the total payments since made to the Post Office by way of rental have amounted to £529; and that the Post Office is put to no expense whatever in the upkeep of the service, which is a strictly private line and not connected with the trunk or other Post Office lines; and will he assent to making a reduction in the present rental instead of increasing it?
The Tariff rates for fire-call systems, as for other private telegraph and telephone systems, are based on the average costs of providing, maintaining and removing such installations. They are of general application, and exception cannot be made in individual cases, nor would it be practicable to base the rental on the actual cost of construction in individual cases. It is not correct to suppose that the Post Office is not put to expense in the upkeep of the service, as it undertakes the maintenance and renewal of the system.
Troops, Near East (Remission of Money)
asked the Secretary of State for War if he is aware of the resentment among troops in Baghdad and the Near East at the loss sustained by them in sending money home; whether it is due to rates of exchange or commission charges; and will he take steps to remedy this grievance?
I should be glad if my hon. Friend would explain a little more clearly what the grievance is. The pay of British troops in Mesopotamia is reckoned in sterling and they can remit home in sterling through the official channel, without any payment of commission.
Night Baking
asked the Secretary of State for the Home Department if it is intended to reintroduce this Session the Bill for the regulation of night baking?
I am unable to say at present whether it will be possible to find time for this Bill this Session.
Upper Silesia
( by Private Notice ) asked the Under-Secretary of State for Foreign Affairs whether he can give the House any further information as to the position in Upper Silesia; when the decision of the Supreme Council will be announced to Germany; and what steps in the meantime are being taken to enforce the Treaty?
The position in Upper Silesia is still somewhat obscure, but, so far as can be ascertained, the insurgents, led by M. Korfanty, have overrun the whole of the plébiscite area up to the River Oder. Efforts are being made to resume the working of the mines. The Allied Governments are in communication on the matter, and are considering proposals for the settlement of the difficulty. Meanwhile the Commission is using every endeavour to re-establish order with the forces at its disposal, and has taken steps to increase the police by local recruiting. The Polish Government have been requested to co-operate by the closing of the Polish frontier and the prohibition of all assistance to or encouragement of the insurgents on the part of its nationals.
Can the hon. Gentleman say whether the decision of the Supreme Council will be given before the Ultimatum to Germany expires and is made effective?
I must have notice of that question.
Have the Government made it perfectly clear to the Polish Government that no fait accompli will be recognised or in any way be allowed to influence our decision?
I have already told my hon. and gallant Friend that no such communication has been made.
Why not?
Is it not a fact that the answer to the German Government must be to some extent influenced by the state of affairs in Silesia and the decision of the Supreme Council—necessarily so?
While I may not be able to agree with that contention of the hon. and gallant Gentleman, it is very unfortunate that this incident should have arisen just at the moment when the German Government have been making up their mind on the question of disarmament.
Could we not do a little more in influencing the Polish Government by moral support at any rate?
We are doing everything in our power to bring such pressure as we can to bear upon the Polish Government.
Could not the decision of the Supreme Council be made known before the German Government has to reply?
Communist Offices (Police Raid)
( by Private Notice ) asked the Secretary of State for the Home Department whether his attention has been drawn to the police raid upon the offices of the Communist party on Saturday last; whether he is aware that in addition to arresting the secretary of the party the police carried away almost everything they could lay their hands on, including pictures on the walls, money in the safe, and a gold watch, filling a large motor lorry and two taxi-cabs; whether the raid was made merely on the ground of the publication of the thesis of the Communist International; whether before authorising this raid he fully considered the danger involved during this critical time when successful efforts are being made to keep the peace and whether in view of the unprecedented character of this action on the part of the police he will fully explain the reasons underlying it?
I am aware of the raid in question, and of the arrest of the secretary. The police took away a large amount of material for examination, and also any articles which, had they subsequently disappeared, the police would have been accused of stealing, including money, which was counted in the presence of two clerks, and a watch. The office in question was searched, because there was reason for believing that it was a centre for the illegal publication of prints inciting to violence and sedition. Before the search was authorised, all the relevant considerations received attention, including those mentioned in the question, and the fact that incitements to violence and sedition are specially dangerous at the present time.
Are these proceedings being taken because of anything published by this party or its journal, and why was action not taken in the usual way without the offices being raided?
Action was taken in a perfectly usual way.
Will the right hon. Gentleman be good enough to place a copy of each of the pamphlets and papers pinched by the police in the Tea Room?
Will the Home Secretary consider the advisability of publishing a list of the moneys alleged to have been received by these people, so that we shall be able to separate the sheep from the goats?
I do not know to what moneys the hon. Member refers.
Will the right hon. Gentleman quote the passages which he considers incite to sedition and insurrection?
The case was brought before the police court this morning, and hon. Members will see the charge in the report.
Business of the House
Can the Leader of the House tell us what will be the business for the remainder of this week?
We propose to give Wednesday, as well as to-morrow, to the Financial Resolutions of the Key Industries Bill.
On Thursday we propose to take a Vote in Supply, and it is suggested that it should be the Ministry of Health Vote.
Does that mean that the Railway Bill will not be introduced this week?
No. My right hon. Friend said that would be presented.
Execution (Patrick Casey)
I beg to ask leave to move the Adjournment of the House for the purpose of discussing a definite matter of urgent public importance, namely, "the trial and execution in Ireland of Patrick Casey within 25 hours of his arrest, and before the proceedings at the trial had been approved by the Judge Advocate-General; and the refusal of the Government to give an assurance that in future the same procedure followed in courts-martial would be adopted for the military courts in the court-martial area in Ireland."
The hon. Member has has brought forward no new matter beyond that which was contained in his question last Thursday. I took the opportunity on Friday of looking carefully into this matter, and there is really nothing in this case which cannot be discussed in the ordinary way in Committee of Supply. In answer to the hon. and gallant Member's question, I may say that this is a case of a military court, and not a court-martial.
May I submit that this is the first occasion on which it has come to the knowledge of the House that men in Ireland are being tried without being given an opportunity of preparing their defence, and this is the first time we have been able to express an opinion on the subject, and if we are not allowed to dis- cuss it now there is a danger of more men being shot without getting any opportunity at all of presenting their case, or of being represented at the court by counsel or anybody else, and I submit that those facts bring this case within the rules necessary in these cases.
That was the point which the hon. and gallant Gentleman submitted to me last Thursday, and it was upon that very point that I looked carefully into the matter on Friday. The institution of martial law in those areas in Ireland gives authority to these military courts to take action, and if any criticism be desired as to what is done in those military courts it can take place in the ordinary way, without interrupting the ordinary course of business in the House.
May I point out to you, Mr. Speaker, on this point of Order, that when the courts-martial were first instituted in Ireland it was stated from the Front Bench that every opportunity would be given to the accused men to state their case, and that the procedure adopted in courts-martial gave all that could be desired in that direction. Since then General Macready, the Commander-in-Chief in Ireland, has stated that where a man is condemned to death, he gets weeks in which to make his peace with God, and so on, and there is no mention of that—
The hon. and gallant Member has made no reference to that in the question put down to-day. I was waiting, and I endeavoured to ascertain whether there had been any pledge given in that direction, but I have not been able to find any evidence of it.
May I submit that this is a new point for your consideration, Mr. Speaker, that for the first time the Government have refused to give this undertaking that men will be given proper time to prepare their defence. I have asked for that assurance and I have not received it. The Government have refused to give an assurance that men will be given a due opportunity of preparing their defence before being executed.
If the adjournment could be moved on every occasion when hon. Members fail to secure the assurance from the Government which they seek, I am afraid we should have the adjournment moved every day.
It is a question of life or death.
Are we to understand—[HON. MEMBERS: "Order!"]
The hon. Member will please not stand when I am standing. Does he wish to put a point of Order?
Are we to understand that the Government are the only people now allowed to commit murder?
I wish to put a point of Order. I want to understand if it is the ruling of the Chair that when the life of a British subject is involved there is no method of calling attention to it in this House except at the convenience of the Parliamentary Secretary to the Treasury, who is the only person who can put down the Vote on which such a matter could be discussed?
That is a moat offensive remark.
Might I therefore ask for your guidance as to what method there is in that case of preventing the death of a British subject in Ireland within so short a time?
The hon. Member is now arguing with the Chair, and he has no right to make such suggestions to me. I have looked into this matter, as I said I would, with the utmost desire to protect the proper privileges of the House, and, after the closest investigation, I am clearly of opinion that it is not a case to be taken under Standing Order No. 10.
On that point of Order. [ Interruption. ] Surely we are entitled to put points of Order. It is not a question of the privileges of the House. I am asking you, quite respectfully, as Speaker, to give us guidance with regard to the privileges of a British subject whom we are here to protect.
I wish to ask if your ruling with regard to martial law in Ireland means that matters occurring under martial law can only be raised on a Vote? Does that rule out any question of urgency when we believe that even matters under martial law are not being given proper consideration?
On the same point of Order. Is it not the privilege and duty of this House, as the ordinary court of inquest of the nation, when there is an extraordinary, terrible and an entirely new precedent in the administration even of martial law, sacrificing at such short notice all the chances of justification and defence that a British subject has, to get an opportunity of asserting its right and pronouncing its opinion? May I ask, further, in reference to an observation made by the learned Attorney-General for Ireland, whether it is calculated to lead to the pacification of Ireland, of which there are some grounds of hope, that such utter disregard of the rights even of a person accused of treason should be allowed to pass in silence without taking the judgment of this House?
The hon. Member and others have been trying to put to me questions on the merits of the case. The only question with which I am concerned is whether this matter properly comes under the Standing Order, and I have given my decision on that matter, after twice most carefully considering it.
New Member Sworn
EUSTACE SUTHERLAND CAMPBELL PERCY, commonly called Lord Eustace Sutherland Campbell Percy, for the Borough of Hastings.
Bills Presented
Housing (Scotland) Bill,
"to make further provision for the extension of the time for the construction of houses in Scotland for the purpose of obtaining grants under Section one of the Housing (Additional Powers) Act, 1919, and to limit the aggregate amount of such grants in respect of houses in Scotland," presented by Mr. MUNRO; supported by Mr. Morison and Mr. C. D. Murray; to be read a Second time upon Wednesday, and to be printed. [Bill 98.]
Public Defender Bill,
"to establish the office of Public Defender," presented by Mr. BOTTOMLEY; supported by Mr. Leslie Scott, Sir John Butcher, Mr. George Jones, Sir Kingsley Wood, Mr. Seddon, Mr. Clement Edwards, Mr. Houston, Major Christopher Lowther, Sir Thomas Poison, and Sir Charles Townshend; to be read a Second time upon Tuesday, 24th May, and to be printed. [Bill 99.]
Selection (Standing Committees)
Standing Committee A
Sir SAMUEL ROBERTS reported from the Committee of Selection; That they had added the following Ten Members to Standing Committee A (in respect of the Agriculture (Amendment) Bill [ Lords ]): Sir Arthur Boscawen, Mr. Cautley, Mr. Thomas Davies, Major Howard, Mr. Gardiner, Mr. Pretyman, Mr. Royce, Mr. Walter Smith, Sir Courtenay Warner, and Mr. Charles White.
Standing Committee B
Sir SAMUEL ROBERTS further reported from the Committee; That they had added the following Member to Standing Committee B: Mr. D. M. Wilson.
Sir SAMUEL ROBERTS further reported from the Committee; That they had added the following Fifteen Members to Standing Committee B (in respect of the Housing Bill): Mr. Cowan, Lieut.-Colonel Fremantle, Mr. Gilbert, Mr. Thomas Griffiths, Mr. John Guest, Lieut.-Colonel Hurst, Mr. Lorden, Major Molson, Sir Alfred Mond, Mr. Myers, Mr. Samuel Roberts, Mr. Trevelyan Thomson, Earl Winterton, Sir Kingsley Wood, and Sir Alfred Yeo.
Reports to lie upon the Table.
Orders of the Day
Ways and Means
Considered in Committee.
[Mr. JAMES HOPE in the Chair.]
It may be for the convenience of the Committee if I say a word or two on the procedure with regard to the business in Committee of Ways and Means. The two Resolutions on the Paper are, of course, separate propositions, and cannot be put together. At the same time, they are congruous to one another, and I imagine that it would be a matter of great difficulty to confine the discussion to one of them. A speaker on one, in the course of his remarks, may constantly be induced, in order to develop his arguments, to allude to the other. There would be difficulty in confining the discussion, and I have therefore decided to follow the precedent of a Budget Statement evening, and to allow a general discussion irrespective of the actual question put from the Chair. It will be convenient, I think, to take the discussion on the first substantial Amendment to the first Resolution—to leave out the words "five years" ["That for a period of five years"] and to insert instead thereof "one year"—which is in the name of the hon. Member for Oldham (Sir W. Barton). After calling on the President of the Board of Trade to make his statement, I shall, therefore, put the Resolution, and then call upon the hon. Member for Oldham.
Safeguarding of Industries
I beg to move: confidence among those who conduct industry and among the manual workers which is paralysing the development and the re-establishment of industry.
Added to that, we have to deal with a problem with which the world has never had to deal before, and which could hardly have been foreseen before the War even by the closest students of economics. The whole machinery for making payments as between country and country has broken down, and we have to face a peculiar, but, I trust, a transitory, condition, owing to what is called the collapse of the exchanges. Of course, we all want to see the restoration of the collapsed exchanges, and we must see that restoration before trade can become once more stabilised. Indeed, not a single Member of this Committee will differ from me when I say that the one thing that we desire beyond all others is that the wheels of industry throughout Europe may once more be turned, that the circulation of goods from country to country may once more be restored, and that perfect and ingenious mechanism of payment as between country and country may once more be working with that frictionless ease that distinguished it in the years before the War. I know quite well, and here again I am sure the Committee will agree with me, that the only way in which you can get a recovery of the nature which I have tried to indicate is by watching the exchanges righting themselves by the natural and probably slow process of evolution. Some may say that it is dangerous to interfere in any degree, however small, with that process. We have to remember, however, that this country, of which we for the time being are the Government, is one which would starve if it were not for its industries. It is a country in which the vast bulk of the population earn their living either by producing goods for export or by taking part in those subsidiary but absolutely necessary services for the transmission of goods through the country and across the-seas. Therefore we have to remember that this natural process to which I have alluded must inevitably mean in this country that some, possibly many, of our people will be badly hurt in the process before equilibrium is once more restored. The question we have to ask ourselves is a simple one. It is: Dare we run this risk? Are we to leave matters alone, or are we to attempt to do something that may mitigate the blow or alleviate in some degree the danger which many of us foresee? You may leave things alone if you believe honestly that it is impossible to do anything. You may yield to the inaction of despair. The Government do not propose to do that. Or, it is conceivable that you might refuse to do anything if you have always been a free trader, and you believe that any interference would be against your principles. It has struck me as a very remarkable thing that, wherever there is a strong faith like the faith of free trade, there is always a tendency which leads to this, that, the farther you get removed from the days of the founder, the more rigid and narrow and pedantic become the interpretations of the high priests of the faith.
If nothing is done at this time—and I want to commend this to my Friends opposite—I see a great danger before this country. I see the danger that you will inevitably have unchecked a flood of foreign goods into this country—it matters not where they come from—at prices at which, for the time being, you will be unable to compete. When that moment comes—it may be in 12 months' time, it may be sooner—when it comes, whatever Government is in power on these Benches, whether it be our Government or a Liberal Government or a Labour Government, that Government will inevitably be faced with a very dangerous position. There will be a storm of protest from the manufacturing centres of this country which no Government will be able to resist, and the result must be the worst thing in the world—legislation of a panic nature—and that Government may find itself committed in a hurry to a scheme to which very few Members of this Committee would give their support if they had time to consider the matter beforehand. We on these Benches believe that something can be done, and we believe that in the attempt to do something we shall meet, although with much criticism, with a sufficient measure of sympathy and support to enable us to carry into effect an Act of Parliament that may help the country through a very difficult period.
Having made these few preliminary remarks, let me pass rapidly through the main heads of the Financial Resolution. With regard to key industries, I cannot imagine that there are many in the Committee who will be opposed to doing something for them. With regard to the manifesto of the Coalition party, no pledges could be more explicit than those which were made both by the Prime Minister and by the right hon. Gentleman the Member for Central Glasgow (Mr. Bonar Law), or those which have been made by the Prime Minister on subsequent occasions; and when I come to the Opposition, I think that there have been a good many pledges, not explicit, but implicit. I am not going to indulge in what, as a private Member, I often used to think was very much overdone in the House of Commons, namely, the quoting of extracts from people's speeches, taken away from their context and hurled as though they were deadly darts bound to bring sudden death on the opponent and conviction to the House. I propose merely to refer, in passing, to what was said by Mr. Runciman when he held the office which I now have the honour to hold, and to what was said by the right hon. Gentleman the Member for Paisley (Mr. Asquith) in setting up the Balfour of Burleigh Committee, especially in a very remarkable speech which he delivered in the House of Commons on the 2nd August, 1916, of which I will give just one sentence: should try to save money on the Army Estimates by contracting for our guns from Krupp's. I have no doubt that we could have got them a good deal more cheaply than we could have made them at Woolwich, and we should have been able, undoubtedly, to make very favourable contracts. Whenever national defence came before the House of Commons, the House was always practically unanimous; and in the matter of these key industries we believe that we are presenting a list such that, the more it is examined, the more it will be found that the industries enumerated are absolutely necessary for national defence. The list has been cut down to the narrowest limits. It was not composed in a moment. We had the Bill of 1919, and the criticism upon it, to guide us, and the matter has been under examination for the; two years that have elapsed since then. Although I admit that, to those who may not be familiar with the type of industry scheduled as a key industry, it might appear at first glance as though we were merely presenting the catalogue of a marine store dealer, yet I can assure the Committee of what every man with any knowledge of British industry to-day would say, namely, that in the articles scheduled you have the main things that go to make the scientific foundation of British industry. These things are important in peace; in war they are vital.
The advantages to the country, should these proposals result in the permanent establishment of these industries, are manifold. Each of these industries requires skilled and trained workmen, and in most of them the skill required is such that a lengthy training is needed. From every point of view, an addition to the number of skilled and trained workmen in a country is a matter of the most vital importance. It is a good thing for the man; it is a good thing for the country. But in the last of these scheduled articles—the fine chemical trade—you have a still more important demand. There are no trades in the world to-day which are crying out more clamantly for brains than those trades. There are no trades in the world which, in the next quarter or half-century, will be more the foundation of great national industries. There are no trades in which we may look for greater discoveries. The prospects of the chemical industry are illimitable, and its development is absolutely necessary in a country like this, where we are trying to carry on a more crowded civilised life than is being carried on in almost any other quarter of the globe. If the Committee will bear with me for a moment, I should like to tell them a personal experience which I have had within the last few days, and which has made me very anxious to see the development of these industries in our country. I have the honour of being a member of the Court of one of the oldest and wealthiest civic companies, and I had before me the other day a list of young men who had been able to go to Cambridge University with scholarships awarded by that company, and who, without that help, would probably have been unable, at any rate, without much greater difficulty, to have emerged from the comparatively simple and obscure work that they were doing. Out of this list, which is typical of many another university, three of them were the sons of working men, and each of these three men has specialised in chemistry and in mathematics, and the company has been fortunate enough to secure in these branches of learning three first-class brains. The report of their tutors was to the effect that each of them would succeed in obtaining a first class in his tripos, and there you have men going out into some part of the United Kingdom where they will be not only a blessing to themselves and their own families, but a blessing to their country, and from whose work we may hope for great things.
I have mentioned that because in the chemical industry as developed in Germany, and as we hope to develop it in this country, there is unlimited scope for brains of that stamp. In this country our brains are as good as those of any people in the world and we want to lose no opportunity of forming scope for them and making, if they do not exist, fields in which they can be exercised. This is a field in which brains can be exercised and I hope for very great things from it. It is true that in this Bill the support that we advocated is limited to five years because we believe at the end of that time the Government of the day will be in a position to see whether these industries have proved themselves worthy of the support given to them, and they can investigate again at the expiration of that time whether there are any other unseen causes which have held them back and whether it may be thought desirable at that time to give still further help. But I ought perhaps to mention, and I must mention in one or two cases, what we propose to do in the Bill for the clarification of some of these points. A Committee will be set up, including members of the fighting services, appointed to keep in touch with the work of all these key industries and to make an annual report to Parliament to show what progress they are making.
Passing from key industries, I must say a few words about dumping. There were many investigations during and after the War into dumping, and perhaps I may remind the Committee of the conclusions come to by a Committee set up by the Minister of Reconstruction under the chairmanship of Sir Henry Birchenough. That Committee advised that a special import duty should be levied whenever it was established by a competent authority, after proper inquiry, that dumping was going on on a substantial scale. It is on those lines that we propose in the Bill to deal with dumping. Dumping will only be dealt with in cases where it can be made out, to the satisfaction of a Committee to be set up, that the process is going on and that by the dumping employment in any industry in the United Kingdom is being or is likely to be seriously affected. It is linked up directly with employment and the case has to be proved, and, if and when the case is proved, a duty may be put on such goods as those whose case has been reviewed from a particular country, and it may be put on for a term of three years or less. Food and drink are specifically excluded. It is not intended, either, to schedule raw materials. Raw materials are very difficult things to define, but I do not lose heart over that. It is a very difficult thing to define a gentleman but you always know one when you see him
There is a class of dumping which we propose to deal with which is novel and as to which the methods proposed in this Bill are also novel. It is where dumping arises from the collapse of exchanges. This is a very thorny subject, and I think it augurs well for the courage of the Government that in spite of the difficulties of the subject they are prepared to make an attempt to deal with it. No one will deny the interest that has been aroused in this House on one side or the other. Questions have been asked, a voluminous correspondence has come to my office from numerous industries, and we have no doubt that while on the one hand there is hardly anyone in any industry in the country who does not want the matter dealt with, on the other, there is hardly anyone who will not complain, when the time comes, that the method chosen is the wrong one. There is one peculiar feature about the dumping that has gone on so far under the collapse of exchanges.
That is not dumping.
It was brought out very clearly in that very interesting exhibition at Millbank that, contrary to all we have been taught in the text-books, the consumer is not getting the benefit of the cheap goods. The profit is going into the pocket of the middle man. It is of very much more importance to me that men in this country should have work to do than that profits which might go into their industry, and wages that might go into their pockets, should go into someone else's. We have also, with regard to Germany, one very peculiar feature which I think is completely new and has not occurred in international trade before. You have in that country at present a difference between the internal and the external value of the mark which gives a bounty on export. That difference is diminishing, and I hope and believe it will continue to diminish, and before very long I think it may be a thing of the past. But you have also this position, that whereas, according to the best of our information, the working man in this country has slightly improved his position compared with pre-War in regard to purchasing power, in Germany he is in a very much worse position, and therefore, for the time being, there is a very considerable play in wages, all of which is against this country. But that, I think, before the expiration of the three years which is the limit for the duty proposed for this exchange dumping, will come to an end. [ Interruption. ] I mentioned that on purpose, because, with regard to the exchange dumping in the Bill, the term is limited to three years, and it is not in the Resolution. That is the difficulty of discussing great detail on a Resolution. I am anxious to get the Bill circulated at the earliest moment, in order that hon. Members may have an opportunity of studying it.
In the Bill, whatever duty is imposed with regard to the exchange part of dumping, it will only last at a maximum for three years from the date at which the Bill becomes law. It is five for key industries and three for exchange dumping. I put it to the Committee that this is an honest attempt on the part of the Government to deal with one of the most complicated and difficult situations which the country has had to face. The House will have an opportunity, when the Bill comes before it, to frame an Act of Parliament which we believe may be of the greatest service in tiding the country through these years of reconstruction. There is, after all, no alternative between doing nothing and doing something. We have chosen the less easy task. We shall be much criticised. We do not mind that. Attempts to render our Bill impotent we shall resist. Attempts to improve our Bill we shall meet with sympathy, because we believe that what we have set ourselves to do can be done, and we intend to devote the whole of our strength to doing it.
I beg to move to leave out the words "five years," and to insert instead thereof the words "one year."
The right hon. Gentleman, in introducing these Resolutions, told us that he found himself in a rather difficult position; that this child had been left on his doorstep and that he was determined to do his best by the child. All through his speech I had a feeling that it was a case of a good man struggling with adversity. May I, before proceeding any further, congratulate that good man on his first important appearance in his present high office. I could have wished, above almost anything else, that he had started his new duties on almost anything but this Bill, because, like a great many other people in this country, when a business man becomes President of the Board of Trade I wish him well. Although I have to oppose the right hon. Gentleman on this occasion, I do wish him well in his high office.
The Resolutions now before us are apparently, to some extent, the outcome of promises made before the War, and pledges given during the last election, that something would be done in connection with key industries, in order that they might be extended and developed and, if necessary, protected. Further, in connection with that undefined thing called "dumping," there was also a pledge that something would be done. When I look at these Resolutions, however, I find that the words "Key Industries" and "Dumping" have entirely disappeared, and we have the words "Safeguarding of Industries," a very specious and very subtle phrase. I seem to have heard that phrase before. I never remember a Protectionist who was not out for the safeguarding of industries; and the means by which he was to do it was by a protective tariff. That is what we have here. Upon these Resolutions a Bill will be founded; but we are under the disadvantage of not having seen that Bill. If and when these Resolutions have been passed, a Bill based on these Resolutions is placed upon the Statute Book, the result will be a signal triumph for Protection and a corresponding defeat for Free Trade. When that has been done, we who are Free Traders need no longer direct our attention to the maintenance of Free Trade, but we shall be called upon to direct greater attention, as I hope and believe, to the restoration of Free Trade as the fiscal policy of this country. I noticed with gladness that the President of the Board of Trade did fully regard these Resolutions as having a definite bearing and as leading to a definite decision in connection with this longstanding controversy, and I take it that the Debate to-day must inevitably be a Debate in the main as between these two great principles of Free Trade and Protection.
The Resolutions applicable to key industries were referred to by the right hon. Gentleman as suggestive of the schedule of a marine store. I should not have been so impolite or so risky as to suggest anything of that kind. Looking over the Resolutions I think that of every one of these articles it might be said that they are either the raw material of some process or they are the instruments of production used in some industry, and in every case the industry affected is of far greater importance than these particular things themselves. If there were no other objections to this Schedule, that alone would be fatal from my point of view. There is not one of these articles of which it might be said that to produce them in this country would mean that there would be any natural disadvantage. There is no reason why private enterprise, with courage and the necessary risk and sacrifice, could not have manufactured every one of these things in this country. I am one of those who realises that it is inevitable that even in the most highly-developed country there will be industries which are less developed than in other countries. That is in the nature of the progress of the world.
The 33⅓ Per cent. which is to be adopted as the means of protecting these particular industries is in the main a bolstering up of inefficiency. You have absolutely no guarantee that with that 33⅓ per cent. there will be a return to efficiency. The right hon. Gentleman dwelt especially on the last Clause of the Schedule, the fine chemical industry. He must know that neither protection nor free trade entered into the success in Germany in that particular direction. He must know that the original inventor of this most important process out of which the great coal-tar development came was a Manchester chemist, and the real reason why the fine chemical industry was not developed in this country was that our capitalists were not sufficiently enterprising or courageous. They had the offer, but they rejected it and turned it down. It was taken to Germany, and there fully developed. Surely, instead of regarding that as something prejudicial to the interests of mankind, it ought properly to be regarded as highly advantageous. It may be said that I have not met the point that these key industries are necessary in time of war. I have never been able to meet that point, because I am quite convinced that there are only two key industries in this or any country. The first is agriculture and the second is coal. Neither of those industries is in this Schedule. I defy anyone to say that if we had another great war any single one of the things mentioned in the Schedule would be necessary in connection with that war. Other means and other things will have been developed, and to schedule these things and to protect the industry on that ground seems to me to be quite ill-advised and quite unjustified. The President of the Board of Trade said that the period would be for five years, but if at the end of five years there was an examination it might be found that something more would be required. That is exactly how protection marches. You do something and you find it is not enough, and you then do something more. The whole history of protection points that out as the line of advance.
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With regard to dumping, he said that the period was not terminative; that there was no limit of period to the antidumping proposals. The test as to whether articles are to be described as dumped commodities is to be if they are sold at a price below the cost of production. I have been in business a long time, and I defy any man to tell at any particular time exactly what is the cost of production in any industry. At the present time in the cotton industry in Lancashire we are selling to the whole world whenever we can get the chance. One week immediately preceding the coal strike there were sales made which might amount to £10,000,000, and not one pound of that covered the cost of production. It was, however, better to do that, although not strictly on economical and financial grounds, than not to do it. Very often that is what happens in connection with an industry. Wages enter largely into the cost of production, and so do raw material and standing charges. Interest on capital may or may not be included in the standing charges. It may be advisable to take business which does not cover the last of these charges. It may really be better to do that, although the price does not cover the cost of production than not to do it. By this Bill you are going to say to the people of this country that if such circumstances arise in another country you will not allow the people of this country to have the advantage of those circumstances, although we ourselves are constantly extending to the whole world such advantage in periods of stress and strain.
How under this Bill is it proposed to determine what is the cost of production? It says here:
The President of the Board of Trade spoke with very great seriousness of the commercial and economic position of the country, and serious indeed it is, and if I believed that these proposals were likely to be helpful, if, indeed, I did not believe that they were sure to be hurtful, I should be standing behind the President of the Board of Trade, instead of standing in front of him to oppose him; but I believe profoundly that these Resolutions, when taking effect in a Bill, will hamper the whole industry of the country, and that the principle underlying them is one which business men throughout the country, irrespective of party politics, are eminently desirous of freeing themselves from. You are setting up fresh inquisitions, fresh boards, fresh applications for certificates. "May I do this; may I do that?" "What official will tell me what to do to-day, and what other official will tell me what to do to-morrow?" The one cry amongst business men to-day is, "Leave us free to get on with our business." I am sure the President of the Board of Trade, a man of business himself, quite recognises that there is this demand throughout the country. What is regarded as being the effect of this Bill? I have been watching the reports of our great banks, and I have been struck with the fact that in the case of every one of the five big banks the chairman, in his annual speech, has definitely demanded a reduction in Government expenditure and freedom for business men from Government control, and in every case, though in some cases more specifically than others, he has dealt in advance with the very problem with which we are dealing this afternoon. With the permission of the House, I should like to read from two of these annual speeches. The first, of them is the speech of Lord Inchcape to the shareholders of the National Provincial and Union Bank of England. Then I come to Mr. Leaf, chairman of the London County and Westminster and. Parr's Bank: that this or the other industry is suffering from foreign competition. Near where I live is Stockport, where at the present time a considerable number of men are idle because hats are being imported from the Continent. I am not ashamed to say that I bought and am wearing one of those hats and I am not ashamed to say it because that hat will be paid for by a corresponding export of some kind or other. [HON. MEMBERS: "No, no!"] Yes, unquestionably, your imports are paid for by your exports, but they must be your most efficient exports. They must be the things we can do best and cheapest. It is because I believe this great population of ours can only be sustained by an export trade and by the maintenance of that efficiency which is essential to an export trade that I am so strongly opposed to these Resolutions.
I remember a situation which struck me very forcibly in Manchester within the last few years. I was sending a large consignment of cotton goods to Bombay. At that time in India they had a very large amount of raw cotton for sale. We in Lancashire did not want that raw cotton. It was short of staple and not suitable for our purposes, but in Germany they wanted it and could use it. The result was this, that Germany got the raw cotton which they required for their industry, India got from us the finished cotton goods which they required for their population, and we were paid by a consignment of sugar and chemicals and colours from Germany, the whole point of the thing being this, that at each end of the triangle each nation did that which it was best able to do. We can only retain a state of efficiency by the maintenance of our industries in such a position that they are constantly capable of opening a satisfactory exchange to other nations. It is only in that way that we can hope not only to maintain our great commercial position, but to maintain our great population which has been built up tinder the existing system.
I have seen the Press letters signed by Lord Beaverbrook, Sir Edward Hulton and others, none of whom, are doctrinaire free traders, and it is pointed out that under the proposed alterations of the Bill the commodity necessary for their industry if not directly taxed would be in directly taxed and they urge that in the long run it will be their readers who will have to pay, and they publish long appeals in their papers asking their readers to help them in their opposition to what the Government propose to do. That is true all the time. It is always the consumer who has to pay, and behind these proposals at a time when the one thing that this country needs is plenty and cheapness, you are making scarcity and dear-ness. I appeal to the Government to abandon even now these Resolutions. You have had two and a half years thinking about it, and it is a curious thing that during the last few weeks you have rather produced the atmosphere that you were going to abandon it, and now you come down to this House on the eve of a holiday and want to rush it through. Leave it alone.
The Prime Minister is going up and down the country appealing for unity. Is this the way to create unity? You could not throw into the midst of the population of the country a more definite bone of contention. I do appeal to this House to try to view this thing, as I have done myself, not as a matter of party politics. [ Laughter ]. I am afraid that laughter only shows how lightly the whole matter is considered. I should rather approach this subject in the spirit and the temper of the President of the Board of Trade (Mr. Baldwin), who pointed to the great seriousness of the position to-day. Here you have great bankers and business men throughout the length and breadth of the land telling you that they fear this operation will make the situation more difficult. I do not know anybody who has called for it. Who is forcing on this Bill? I cannot but think that it is the party politician; that it is the man who wants his shibboleth embodied in legislation. Put these things aside. Let us get on with our business and not be hampered. I beg to move the Amendment.
I am very glad that the Amendment has taken the form which it has taken, shortening the period during which these duties will operate. It directs attention to what to my mind is a most important element in the difficulties before us, that is the element of time. It is of the essence of success in what we have in view that we should be able to operate through these duties for some appreciable time. I agree with many of the statements of the hon. Member who has just spoken, but I agree with them from a different point of view. He has told us for instance that under a system of Free Trade each nation does that which it is best able to do. I agree. It is a question of the devil taking the hindmost, and the hindmost is precisely that nation which has not prepared itself for a cut-throat competition. Time is of the very essence of that preparation. I listened to the speech of the President of the Board of Trade with special pleasure. It commended this measure to the House as a measure for the protection of skill. Towards the end of his speech he gave one remarkable illustration from his own experience. He spoke of a great City company which used a portion of its endowments for the purpose of giving scholarships to take men of all classes, including workmen's sons, to Cambridge University in order that subsequently they might go to different parts of the country and co-operate in the more scientific working of our industry. A Cambridge education takes some time, and the education which precedes the Cambridge education takes some time, and if people are to give their time, some of the most precious years of their lives, to investing capital in their own bodies there must be some opportunity in the future of utilising that capital which has thus been invested. Time is the very essence of the whole matter. You must have security for an appreciable term of years before you can have any chance of seeing a change in the character of our industry.
The nation under a system of Free Trade at a given moment does that which it is best able to do. If it is a highly-educated nation, it turns to skilled industries. It will turn out then skilled products and will undersell the rest of the world in regard to those skilled products. It will give great employment and the high wages that are given for good and abundant skill. But if you previously do not prepare, then the nation at the moment of competition cannot be best able to show that skill. In Adam Smith's day the theory was that the natural facilities, climate, food production of the nation, and so forth, gave it an advantage which decided what should be its main world product for the purposes of exchange. In the world to-day that is all changed. To-day you can place your industry where you choose. Go to the West of Canada, see the vast cornfields and see food for 20,000,000 people being raised by 1,000,000. The other 19,000,000 may be anywhere you choose in the world. You carry your raw material to the nation which is equipped with skill, which has prepared itself, which has combined the highest education with security for those industries which are to employ that high skill.
Therefore I agree entirely with the hon. Gentleman, but he was arguing from the point of view of Adam Smith at the end of the 18th century, and we have to consider the matter in the terms of the post-War 20th century. In the terms of the post-War 20th century you can place your skilled industry, say your tungsten industry, where you choose. If this nation chooses to have a share of the tungsten industry it can have it. Before the War Germany determined to have the tungsten industry, and it took the ores from our Empire, and by creating an industry which included not merely machinery, but also a body of skilled people, specially adapted to working that machinery, by creating both a material and a spiritual machinery, it was able to absorb the tungsten of a large portion of the world and able to undersell us not by dumping, but by sheer skill which she had chosen to place in Germany and which we had not chosen to place here.
Therefore I agree with the hon. Gentleman, but I ask him to bring his argument up-to-date. He quoted the speeches of chairmen of our great banks and called our attention to the fact that those chairmen asked for a release of industry from Government control. But we sometimes call two different things by the same name. There are different methods of control. There is detailed control, for instance, as to the issue of licences. There is the kind of control that we had continuously during the War—bureaucratic control. There is control which interferes with the individual initiative of the men who are managing the factory, but there is also a different kind of control. The hon. Gentleman was mixing up the two kinds of control. If you are going to play a game you have rules of the game. You have rules for playing football. You would not say that those rules unwisely stop the initiative of the players. They determine that that initiative shall be of such a character that it draws the applause of thousands because the play is not off-side. We want to see to it that our captains of industry do not play off-side.
We want to say to them, "Play your utmost and it will be for the benefit of the nation, but you must not play offside. There may be an immediate profit to you, but you are not to take an immediate profit if it is to the ultimate detriment of the nation." We all know that by using child labour there is very often an immediate profit for the employer. We know that there is ultimate detriment to the child in most cases. The reason why there is that detriment to the child is that the child is prevented from embodying in its person the capital which the nation might invest in it with a view to far greater production in the future. We interfere by our various laws, our factory laws and others, in order to see to it that the individual employer asking for freedom does not earn an immediate profit at the cost of the human capital of the nation—ultimately, perhaps, when he has made his fortune and sold out, to the detriment of the nation. There are two kinds of control. Why I like this Customs control is, that it is fair to all in a given trade. There is no interference by licence, there is no chance of favouritism from a bureaucracy by the issue of licences. You simply fix the rules of the game. Rightly or wrongly we decide that the best thing to do is to put a fence around and to allow the game to be played inside that fence, so that a mob may not break in and interfere with the play of the skilled game.
I want to go one point further than the hon. Member who has just spoken. He said that people constantly thought in industry of production, but they forgot the consumer, and they forgot the importance of exports. This nation since the War stands in a new position. We have spent much of our capital that was invested abroad. We shall have to buy our imports to a greater extent than before by exports. I agree with the hon. Member that exports are of vast importance, but I would ask him to take a rather longer view of the subject. What kind of export is to be exported in future? The history of every trade—of the cotton trade, for instance, I think the hon. Member will agree—the history of every trade that we have engaged in as ex- porters during the past century has followed pretty well the same course. Take cotton. We used to export cotton goods to the Continent of Europe rather less than a century ago. Gradually we had to limit ourselves to exporting yarn, because they wove in foreign countries. In the case of India, we used to export coarse cotton goods. Gradually we have had to export finer goods to a larger extent.
Does the hon. Member not know that we used to import from India the very finest cotton goods?
The hon. Member's theory is antediluvian. There was an intermediate stage. I quite agree that calico came from Calicut. I am aware of that fact, but I am going to deal with the hon. Member within periods in which we have lived. I shall suggest what is to be the course of events in future, and I shall state why I attach so much importance to this measure to-day. You have increasingly to trust to your finer counts, your finer materials, for your export, because already you have a great industry which has sprung up in Bombay for the making of the coarser materials, and the world over you are having the same experience. Australia is equipping herself to-day—your most distant portion of the Empire, the most distant market for your goods, and one of the most important, proportionately to the number of people who live there—Australia is equipping herself for manufacture. You will have to depend upon exports containing highly skilled labour. If you are to have what I call high-grade exports, those high-grade exports will have to depend precisely on these key industries. Do not allow these key industries to be taken away because you do not protect the skill while it is being trained. Do not allow the existing skill in other nations, which you have allowed to spring up without your competition, do not allow that skill to have its own way, because if you do you will find that your key industries are not merely "key" from the point of view of the military defence of the country, but from the point of view of the defence of your industries; those key industries will be taken away from you, and then gradually, step by step, the remainder of the industries upon which they depend will be taken from you—they could be taken from you at any time—and you will find yourselves reduced here in the next generation or so to the condition of hewers and drawers for other nations which have realised the fact that time is of the very essence of success in modern industry.
It takes 10 years to make a Panama Canal; it takes 20 years to get a body of men skilled in some of these industries. You have to train teachers. The teachers must train their apprentices, those who are to be your skilled men 20 years afterwards. When you have that body of men 20 years afterwards, you begin to think of profit. It is just because I believe that time is vital, patience is vital, that I express these views. We have heard, in regard to the dyestuffs industry, that it is necessary to wait for 5, or perhaps 10, years before we can see success. That is the case with all the industries that are set out in this Schedule. The same element of time enters also into the matter of dumping and into the matter of the exchanges. If you allow those who have skill to be unemployed for a certain time, they will either leave your country or they will become demoralised. They will descend to lower types of labour. Moreover you will be discouraging the youth that should be apprenticing itself to these skilled occupations. You allow a period during which dumping or the action of exchanges has the effect of preventing employment in regard to skilled trades or trades dependent on these skilled trades, and the immediate result is that you discourage either the maintenance of skill or the cultivation of skill, and, though you do not get the disadvantages immediately, perhaps, yet the effect is felt 5, 10, 15, or even 20 years hence.
I plead that we should take a long view at the present time of the necessities of this country. We are entering a post-War world, the like of which has never been seen. One thing is certain, that with the means of communication we have to-day that nation will succeed best which is the most highly skilled. The one thing you must not do is to divorce your education from your practical life. The theory of the free trader has been, "We do not want duties; we do not want anything in the nature of protection. Give us technical education." You could have no worse thing than to give techni- cal education to a number of people whom you send into blind alleys because there is no occupation for them. They will simply emigrate and feed the industries of your opponents and competitors. By the expenditure of money upon that education you will be directly subventionising your worst competitors. I plead, therefore, for the long view. I was greatly encouraged when I heard the President of the Board of Trade say that the period of five years had been fixed, not because it was sufficient, but because it would enable the Government to reconsider the position in the light of the experience they had gained. Let us drop all questions of the old-fashioned disputes between Protection and Free Trade. Let us look frankly as business men at the position. Does not every business man know that to-day is the day of capital. You have to invest great sums in fixed capital which may not give you a return for 5, 10, or 15 years, but you have also to invest great sums as a nation in that asset which I call truly capital, skill, so that the population, with all that goes with the British character, may render this nation, as in the past, great, and a leader among the nations of the world.
Those of us who in the past have been and are still attached to and believe in, not as a dead creed but as a living practicality, the doctrines of Free Trade, are accused of not having changed our views in the light of changed circumstances, and of not having learned anything in the last seven years. I have had the pleasure of listening many times to the speeches of the hon. Member who has just spoken with so much eloquence and energy. I have heard him for 11 years, and I should think that on an average once a year during the early part of the 11 years and to some extent during the last two or three years I have heard him argue very much in the same way and have heard him say very much the same kind of thing as he has said so eloquently this afternoon.
I am not ashamed of it.
I cannot see that change in the hon. Member's views in the light of the altered circumstances of the case that we are constantly being asked to adopt ourselves. My experience is entirely the other way. I have had an opportunity of talking with and of meeting many business men, and my experience is this: That whereas many of my friends in business were in the old days theoretical Tariff Reformers, the experience of the War, the enforced prohibitions of the War and the practical Protection under which we lived during the War, have converted them from Tariff Reformers to Free Traders. I find that that is the general attitude of business men to-day. [HON. MEMBERS: "Question!"] I speak only of my own experience, and I think it is the experience of many men in this House. I do not see any change in the view of the hon. Member who has just spoken, although the name of the doctrine has changed. When a man changes his name many times in the course of his life, and adopts several aliases, we are rather suspicious of him. The doctrine we are discussing was at one time known as "Fair Trade," another time it was "Tariff Reform," yet another time "Protection," and now we have the three names in the Resolution which my right hon. Friend introduced so pleasantly and with such skill. If I may say so, I greatly enjoyed the speech of my right hon. Friend. He introduced into the subject a very delightful and a very natural sense of humour. I think he adopted the humorous touch on more than one occasion to disguise the melancholy which was rather filling his mind at having to introduce and support by argument these Resolutions, which I could not help feeling, from some knowledge of his mental capacity, that he felt it was not a very successful way of dealing with the evils of which he was thinking.
I was particularly sorry for him in his new parental responsibility. He appeared in the guise of a somewhat unwilling adopted father, and I am sorry to have to remind him that he is not quite well instructed in the history of his child. He seemed to speak as if he was adopting a living child, but if he will turn his mind back he will remember that the original parent of another child had to see that child, unfortunately, done to death, and was guilty of the very worst kind of desertion. He left the country and sought refuge in America. This child is not the same; this is a new child which the right hon. Gentleman has discovered, with new features and new limbs, and it has only some resemblance to the child of which he spoke. The hon. Member who has just spoken referred to football. I do not know whether he is an old football player himself, but the way in which he spoke did not suggest it very vividly to my mind when he talked about the necessity of ringing the players in with a fence, lest the mob should break in. His idea of foot-ball seems to be that a carefully selected number of professional players should be carefully protected in their exercises. That is not my idea of it. I want to see as many people as possible having an opportunity to engage in the art and practice of football, and I welcome it very much when a foreign team, such as a team from France, comes over here and teaches us what they have learned in their own country of Rugby football, and even beats our country at that game. That helps us to eventually become better able to beat them in return. Therefore, I cannot say that the metaphor employed by the hon. Member impressed me very much.
I wish to make reference to the three heads of discussion with which the right hon. Gentleman dealt at the opening of this Debate. He spoke of the part of the Resolution referring to key industries, and mentioned the pledge which had been given by the Prime Minister in conjunction with the hon. Member for Central Glasgow. So far as my recollection goes, that was a pledge to support certain industries which were of vital necessity in connection with preparations for war. That is a category that will be very difficult to limit or define. I do not think there was anything in the pledge about this particular method of dealing with key industries. Most of us will agree with the hon. Member who has just spoken that it is of supreme importance that education should be encouraged, although I do not agree with the conclusion that it is impossible to encourage technical education and seek to get the best from it, and yet also rely upon the native inborn British power to meet competition from all parts of the world. The right hon. Gentleman referred to a City company, and said there were those who were having education given to them and were being helped in their career, but I do not quite follow what practical application that had to these Resolutions. I am sure the House desires to see the highest form of technical education, so that the industries of this country should have much more help from education and from skilled persons than they have had in the past, but the danger is in teaching these industries not to rely upon their own efforts but to rely upon artificial protection against the education and superior efforts of other countries. If we do that, I am afraid the particular thing we desire to see will be postponed, and we shall not have that improvement in education and method which we should have if we relied upon the efforts—in conjunction with education—which these industries might make for themselves. If it were found necessary, and if it were suggested, that there should be some special temporary scientific or other help given to these industries—as should have been done during the last two years—I would support the proposal during this period of time, but I fear the effects of protecting an industry against scientific competition instead of encouraging scientific development within the industry itself.
Reference has been made to the list which is included in these Resolutions. I would point out that the Board of Trade has power to add to the list, and one is very doubtful what other articles are to be added, how far the extension is to proceed, and who is to have the final decision on the many applications which will come in from those desirous of being included in the list of essential key industries. The hon. Member who takes such a great interest in this subject and who was good enough to help to arrange an exhibition which afforded us all great interest, went as far as to say that any trade which was of value to this country, and was thought to be of advantage from the manufacturing point of view, should be a key industry. I only mention that to show how difficult it is to decide this point. If the Board of Trade adds to the list from time to time, I do not know how far it will go or where the House will find itself. It was suggested in the newspapers this morning that if these industries are to have protection, there is no reason why the coal trade should not have protection in the same way. Surely coal is a key industry, yet we do not think it is desirable that the coal trade should be subsidised.
I am reluctant to interrupt my hon. Friend, but I am afraid he has not read the Resolution with sufficient care. The only power the Board of Trade is to have under it is that of issuing a list defining the articles which are to be taken as falling under any of the general descriptions set out.
Perhaps I am verbally going further than I should have gone. I would remind my right hon. Friend that he himself spoke of this list, and I was very much impressed by his words regarding it. He did not say it was a list of articles necessary in connection with preparations for war—his words were that it covered those articles which were at the base of all scientific industry. If the Board of Trade is to define the articles which come within that scope, I think there will be room for acquiescence in some of the applications which will be constantly pouring in on us for inclusion. After all, it does seem unfair if one industry should have very great benefits conferred on it by these Resolutions, and other industries which are just on the border line should be placed in a different category. A word with regard to dumping. I do not believe it is any departure from what I hold to be sound fiscal views, to say that there should be some defence in this country against any organised, substantial and continuous effort to sell goods in this country below the cost of their production in some other country. I do not think that even the most eminent and practical Free Traders have ever suggested that there could not be a conspiracy which might almost come within the category of an act of definite commercial warfare, and that no step would have to be taken to check or prevent such a conspiracy. Yet the Clause in the Resolution in regard to dumping seems to me rather dangerous. There is no reference to the fact that the importation of the goods into this country should be "continuous" or that it should be "substantial," both of which words we find in the reference to the matter in the Prime Minister's speeches and manifesto.
With regard to the cost of production, although it is very desirable and, indeed, necessary that the onus of proof of that should be put upon the complainant, yet there is a serious difficulty in ascertaining it. It seems to me that the cost of production, in the absence of an ascertained absolute figure, is to be taken in relation to the wholesale price of the article in the country of origin. One knows, however, how prices are affected in foreign countries, and therefore, although lip service is paid to the idea of the cost of production, in effect the actual method of finding this out seems open to very grave objection. The right hon. Gentleman did not elaborate the question of the exchanges, and I think business men throughout the country will regard this part of the Resolution as one of the most impractical in operation and one of the most serious in effect. The right hon. Gentleman said the House would agree that the best remedy for collapsed exchanges was that the natural operation of trade should go on and that they should be corrected by those methods by which they have always been corrected, but he said that would be too slow, and that in the process of correction some one might be hurt. I quite agree, but even if there is a chance of people being hurt in some direction during the time these changes are taking place and the exchanges are coming right, is it not even more dangerous to adopt artificial methods which, in the long run, will hurt more people and more businesses, than that there should be in the interval certain difficulties and even some hurt in some respect.
6.0 P.M.
It would be impertinent of me to refer to what the right hon. Gentleman's own views may be, but I would remind him how it was suggested to the House that the 50 per cent. arrangement would work most smoothly. We were told it was a splendid arrangement; we were to get the money from Germany by taking the 50 per cent., and it was so beautifully worked out that the German would pay in his country and we would receive the money in our country. It seemed a delightful picture, but I think the right hon. Gentleman knows by now, as the House knows, that things do not work out in that way. Instead of this wonderful system being a success, it is a disastrous failure, and the theories which were announced in this House and were accepted by the House because no other practical suggestion was made have absolutely failed. The right hon. Baronet the Member for the City of London (Sir F. Banbury) has the satisfaction of knowing that he has once more prophesied correctly, as he so often does in financial matters. He may go down to history as one of the men who foresaw that this plan would not prove satisfactory, and certainly his prophecy regarding it has turned out to be an accurate one. I only mention that to show the futility of the paper theories and artificial methods which were brought forward. I would not use any term of disrespect to my right hon. Friend, and I do not suggest for a moment they were brought forward glibly, but they were brought forward because a very great difficulty existed, and he is desirous of doing something. I thought it was a little pathetic for him to say it was better to do something than to do nothing, that there were only two alternatives, to do nothing or to do something, and that we were going to do something. What seemed to give him satisfaction was that there was a Resolution on the Paper arranging that these exchanges shall be put right by Act of Parliament. He is too good a financier and economist to think that things do work like that, and it is with very great regret, therefore, after listening to so good a speech from the right hon. Gentleman so early in his reign of office, in which I wish him the very happiest time and the very greatest success, that I shall have to vote against the Resolution which he has proposed.
I listened with great interest to the speech of the hon. Member for Camlachie (Sir H. Mackinder), and it is quite true that we have heard him deliver speeches of a like kind previously. I also followed with close interest the speech of my hon. Friend who has just resumed his seat (Mr. France), and he is equally consistent, because I have heard him deliver like speeches on several occasions. I have for some while refused to be labelled by either of the two great fiscal schools in this country. I have held that industrial conditions are so variable that we have to consider the interests of each industry separately. During the election I was one of those who subscribed to the programme of the Government and pledged myself to support the Government in an endeavour to safeguard British industries which had been proved essential during the War, and therefore I am on this occasion carrying out a commitment to my constituents. I have listened so far to the Debate, and there appear to be only two alternatives, as the President of the Board of Trade has stated, namely, either to support these Resolutions or to let things drift. I am of the opinion that the working men of this country demand that something shall be done. It is quite true that they are not very clear in their own minds as to what shall be done, but they certainly require that the Government shall give consideration and attention to this problem. It is very good at election times to tell the British workman that he is the equal of any other workman in the world. That is quite true, but he is demanding to-day that you shall give him an equal and a fair chance with other workmen in the world, and he has come to the conclusion that under the abnormal conditions of the present he is not getting that fair chance.
I have long felt the desirability of removing this question from the political arena altogether. We come to the consideration of these problems with fixed ideas. We have been brought up in one fiscal school or the other, and to deviate the slightest from the tenets of those schools is regarded as heterodoxy and as traitorous to the party with which one has been associated. Therefore I have done all I could to foster the development of Joint Industrial Councils and endeavoured thereby to get employers and representative trade unionists to consider the actualities of their industries. They are doing it in some cases to-day, and, presumably because of the fact that I have had a good deal to do with the establishment and development of that system, I am in receipt of many resolutions from Joint Industrial Councils asking that something shall be done, and that something, in my opinion, is contained within the four corners of the two Resolutions we are considering to-day. The interests of the consumer are important, but the interests of the producer are equally important, and the tendency during the past generation or two has been to pay too little regard to the interests of the producer. My hon. Friend opposite was perfectly right in saying that this country stands in a different position to-day from what it did before the War. We must produce to-day if we are to secure the food and the raw material that we need. We always needed to do it, but the necessity is imperative to-day because of the fact that we no longer have those invisible assets, because of the destruction of securities, the wealth that we had invested in other countries. The whole tendency throughout the world is for each country to become self-contained. My hon. Friend alluded to the enormous and extraordinarily rapid developments in our Dominions, and we must recognise that in the future the task of carrying out the export trade will be much more difficult than anything we have previously encountered. My hon. Friend was perfectly right in asserting that our ability in the future to carry on our export trade will be determined by the efficiency of our workmen, and we can only have efficient workmen by encouraging home industry of the highest possible character.
And by producing cheaply.
Yes, and by producing cheaply; but the workmen have realised that producing cheaply is not the only desirable purpose. There are other things besides cheapness. I acknowledge that you cannot export unless you can produce as cheaply as your competitors. I have said that in all parts of the country, and I have said it to the detriment of my own popularity, but I submit even here that there are considerations other than cheap ness to be brought into relation to these matters. When we were considering the question of agriculture, we recognised that the desirability of having a healthy rural population was a matter of vital concern to the country, and that it was of such importance that the country would be willing to pay for it. Therefore, I say that when we come to consider any of these points we find that we cannot carry them out absolutely; there are other considerations which have to be brought into relation to them. The workman is now finding that lie is not having a fair opportunity as compared with the workmen of certain other countries. He is as efficient; he does not mind competition by efficiency, but he does resent competition attributable to abnormal exchanges and to the unfair circumstances which enter so largely into present conditions. It may be said that this is not the right way to proceed to the rectification of the exchanges, but I know no other method. One has been searching for a solution to this problem ever since the War ended, and I am going to support what I believe to be an honest endeavour to give the British workman some remedy against the extremely unfair competition to which he is at present subjected.
I have sections of workmen in my own constituency, and I will not acknowledge that they are less efficient than the workmen of other countries. They are not less efficient than the workmen of Germany, but they have no chance in the world's markets to-day because of the state of the German exchange. Moreover, we are told—and here I speak with all modesty—that the mark has two values, one inside Germany and a different value outside, whereby the German workman is able to buy as much for one mark in Germany as we can for two outside.
Nonsense!
It is no good saying that is nonsense. I said I was speaking with all diffidence, but nevertheless, that is asserted, and hon. Gentlemen must not assume that because they feel strongly on one issue they have necessarily got the absolute truth. These are matters for consideration.
I was speaking with some little experience of Germany in the past few months.
I have had the opportunity of talking this matter over only this week-end with some very influential business men who have just returned from Germany. I was invited to accompany them, but unfortunately I could not go, otherwise I should have been glad to have endeavoured to elicit the facts first hand. Nevertheless, they are facts. If they can be controverted here, and I am proved wrong, then I will withdraw what I have said, but men who are competent to judge assure me that that is the fact, and the British workman is entitled to be safeguarded against an unfair handicap of that character. Is it not our first concern to give employment to our people, and is there any denying the fact that our people are being deprived of employment to-day because of the flow into this country of goods from other countries produced under much more favourable circumstances inside those countries than our workmen can do? This is an abnormal situation; it has got to be met by abnormal remedies, and therefore I feel that before we destroy the Government proposals we have got to show the British workman how he is going to be made secure in employment, and how he is going to be able to sell the goods he produces in competition with others who have such unfair advantages over him. We do not want in this country to destroy competition as between, firm and firm, but we do regularise competition. We say to British employers-that one shall not undercut the other in the matter of wages or hours, and the British workman is perfectly entitled to say, "Why do not you, the British Houses of Parliament, protect me against unfair competition in other countries, where the workmen work for much less, money and much longer hours than we are allowed to do?" If I thought these Resolutions and the operation of the Bill which is to be founded upon them would be inimical to the interests of the British workman, I should oppose them, but I feel that we are entitled to say that British industry is now in an abnormal state, and subjected to conditions which never beset it before the War, and we should therefore apply exceptional remedies of a temporary character.
I do not want British industries hedged round for all time, but I do want British industries to have a fair chance as compared with the industries of other countries. I remember well when, in the early stages of the War, we were in such dire need of ignition magnetos. I remember the story full well. You may say it was due to lack of enterprise on the part of the British manufacturer. The British manufacturer is well represented in this House and has always been. Why had he not recognised the necessity of the development of an industry of, this character? The truth was, we almost lost the War because of the fact that we allowed this industry to go absolutely into decline. Are we going to repeat that error? My hon. Friend says that all industry can stand on its own, if it is efficiently conducted. This is a new industry. It was built up by hastily-improvised methods during the War. Capitalists were encouraged by the Government, and supported in the country to put capital into this enterprise on the understanding that, after the War, they would be given a chance to develop themselves into a position comparable to their competitors. I remember full well how we went to those manufacturers and told them that they must produce magnetos at any cost, and they have been doing it, and I believe that they can claim to-day that they are producing magnetos equal to anything Germany or any other country can turn out. If we are going to be parties to a policy of drift, it will result in the destruction of an important industry of this character, and I say that we are doing wrong to the country and inflicting irreparable harm upon large sections of the working classes. That applies to other industries.
I repeat, I do not want to protect our British manufacturers against foreign competition, but I do want them to have something like an equal chance. If they can prove equal efficiency, they ought to be able to conduct their trade. But my primary concern is with the workmen, and I think that is the concern of the Government in this matter. We have a terrible unemployed problem in our midst. I cannot see any immediate way out of it; in fact, I can see an aggravation of that problem, unless the principles of these Resolutions are speedily given effect to. I have evidence coming to me every day of industries being thrust out, not because of inefficiency, but because of collapsed exchanges, and other conditions of this abnormal character, and I say that, whether one departs from his original fiscal faith or not, it is due to us to do the best we can, in the interests of our own people, and, in my view, the interests of the working-classes. I do not say that you should apply it to all industries. Treat them on their merits. I would prefer that the Government should rely mainly upon the advice of the Joint Industrial Councils in these matters. There you have workmen and employers in equal numbers, now engaged in considering all the affairs of their industry. I believe you will get disinterested advice in that way, and by that method we do get this highly controversial subject out of the political arena, and considered in relation to the interests of the people as a whole. Because I desire that, and because I believe this will take us a step towards what I believe is the real interest of the country, I shall certainly support the Resolutions.
Whatever difference of opinion may exist in different parts of the House regarding the immediate proposals which we are called upon to consider this afternoon, it does not appear to be disputed that this issue has raised the whole controversy of Free Trade or Pro- tection, at least to an appreciable extent, and I think it is not irrelevant from that point of view to start by asking ourselves the question whether there has been any change in the attitude of British labour towards a policy of Tariff Reform and Protection between the year 1903, when it was first discussed in recent times, and the present day. There is no doubt whatever that the reply which we give to that question must very largely determine the answer of the Labour party to the proposals which have been submitted by the Government. Let me say perfectly candidly, first of all, that the Labour representative who takes an advanced view of a change of social or industrial order in this country is not very much concerned with a theoretical Free Trade or a theoretical Tariff Reform. That does not interest him in the least, and I have always suggested, speaking quite personally, that it may be necessary, under a different economic order, to adopt devices, either temporary or permanent, which are in the nature of some form of protection.
That, however, is a controversy which is distant, and what we are really trying to answer at the present time is this question: whether labour in this country has made any effective demand for the proposals now submitted by the Government. Comparing 1903, the outbreak of war and the present day, I think we are compelled to recognise that, in a certain number of industries, the Joint Industrial Councils have passed resolutions which are undoubtedly an appeal for some form of safeguard or protection. We must take into account the circumstances under which these Joint Industrial Councils have considered the case. There has been great pressure of war environment. There have been exceptional difficulties of both capital and labour. They have come to the opinion, for the time being, that their future is safe only if they get some form of assistance of this kind. Most of us on these Benches take the view that, while these resolutions of the Joint Industrial Councils have, in some ways, something to support them, we must have regard to this whole problem from the point of view of the policy which is going to be best for the country as a whole. We therefore reach this consideration, that there will always be circumstances, in perhaps almost the best economic structure we can devise, where an industry will be apparently penalised, where it will have apparent or real difficulties, but those difficulties will not be removed by the introduction of tariff or subsidy or artificial support, but only by the growth of education, the development of the industry itself, and, above all, by the collaboration of other forces which can, quite rightly, be expected to come to its aid.
The first criticism which I am going to offer of the proposals which have been made by the Government is founded on one or two of the official reports which were published during the War period. I recognise, speaking from these Benches, that if we give purely Labour doctrine it is apt to be suspected. We are held very often to found our arguments on facts which will not bear investigation, and I therefore propose to proceed to the purely official documents which were published from time to time during the War, and which, presumably, form the basis of the kind of legislation which we are discussing to-day. Take the question of dumping. In an official report which reviewed conditions in Canada, in Australia, and in one or two other parts of the world, a summary was given of the kind of schemes which, in a preliminary way, had been introduced, and, in the case of Canada in particular, there was some illustration of the results which had been achieved. Let us take, by way of illustration, the Canadian Customs Law of, I think, 1907. In this matter of dumping it laid down that the duty should be the difference between the selling price for export purposes and the fair market value of the article for home consumption. But that was accompanied by the very definite limitation that in no case should the duty exceed 15 per cent. ad valorem. There appears to be a very serious departure right away from that principle. In the second place—and this is very important, having regard to the 50 per cent. reparation—it was also laid down that that duty did not apply to articles in which 50 per cent. of the established duties already applied in Canada. So that, even in the case of Canada, which might be expected from some standpoints to adopt legislation of this kind, there were very definite safeguards, which appear to be much more restrictive than what we are actually discussing at the present time for Great Britain.
Let me take another illustration of departure from official documents published during the War, and here, with very great respect, I join issue with what has just been said by my right hon. Friend the Member for Norwich (Mr. G. Roberts). He made a statement, to which I paid very close and careful attention, and I do not think I misrepresent him when I say that he indicated that, for the problem of the exchanges, no scheme has been suggested, and that some device of this kind must be brought forward. I am utterly at a loss to understand that statement when we have regard to the Report—I need hardly say of very great value and interest—which was the result of the work of a Committee over which Lord Cunliffe presided. In their Report on that very question of the foreign exchanges, they committed themselves, and not for the first, but the second time, to the view that a sound system of currency within each individual country would in itself bring about the equilibrium of the exchanges. That was a definite view laid down by Lord Cunliffe's Committee, and they supported that a little later in their Report by one or two arguments, to which, I believe, the great majority of the Members of this House would subscribe. They said, first of all, we must have greatly diminished Government borrowings; we must have the strictest public and personal economy; and, above all, in each country we must try to get back to a sound system of currency from the point of view of the gold standard.
These were the proposals which were definitely laid down in this most authoritative Report, the fruit of the work of acknowledged experts in this country, with no Labour Member to vitiate the soundness of their judgment. In this very carefully considered Report there was not a single reference to the proposals in the scheme which the Government are bringing forward this afternoon. I speak with very great hesitation and I am quite sure every hon. Member will speak with hesitation, on the question of the foreign exchanges. I frankly confess that, during all the years I read economics, I never quite understood, and I have heard very few lecturers or speakers who can lucidly explain it, but I have a distinct im- pression—and I hope I am not wrong in this impression—that these things are righted when you right the fundamentals, that is, trade, and the intercourse of commodities, the greatly increased and improved production of which the world stands in need to-day. That appears to me the sound policy, and it is because I believe these proposals of the Government cut across that policy, that, from the standpoint of Labour, I think we are justified in our opposition this afternoon.
Let me take another part of the Government's case. There is no doubt whatever that these proposals are framed very largely in the light of what I shall call the depressed conditions of German and Continental labour at this hour. The argument used again and again, either in this House or outside, is that we cannot possibly compete with foreign commodities because of the price at which they are able to obtain their labour and because of the other conditions which now obtain abroad. Let me try to reply to that, first of all, under this head: that in any case labour is not from beginning to the end of the matter the only element in the cost of production. I agree it is a very important element indeed; at times its importance may be greater than at others, but there are other elements of which insufficient account has been taken by those who defend these schemes. What are those other elements? If we take the Continent of Europe m pre-War times, or, more particularly, the United States of America, we will find that they added to their industry scientific management, they introduced great improvements in production, they had a large number of devices upon which this country has never embarked, and they got the benefit of those devices in being able to place on the market an article which was actually cheaper than the article which we could offer but which nevertheless in many cases afforded a better price for the labour which was engaged on it. That argument appears to have been almost forgotten in the controversy which is proceeding at the present time.
Quite apart however from that, I am going to suggest that it is altogether wrong on the part of this country to rely upon the continuance of depressed industrial conditions in Central Europe or elsewhere I yield to no one in my detestation of the appalling crimes of the German militarists during the War. We have every reason to recognise the tremendous suffering that they entailed. Now, however, that peace is concluded, I put it to any hon. Member in this House that it is in our interest to see that the Central Powers recover. It can never be to the advantage of this island community to take any steps which are going to make it impossible for Germany to pay the reparations which we ourselves are quite properly demanding. Depressed labour in Germany will not persist. It will not persist for this reason. In Germany, as in practically every country in the world at the present time, there is an insistent and imperative demand for standard rates. They are fighting there for better economic conditions. They are achieving success slowly because of the manner in which their country is affected by post-War conditions. There is not the slightest doubt that things are slowly and gradually improving, and the establishment of an international standard in labour, with minimum conditions, is the right road to recovery, and not any artificial means that may be adopted in this country or elsewhere. Such, in my judgment, would only have the effect of tending to perpetuate those depressed conditions which we deplore.
There are one or two arguments in this general scheme the importance of which will be conceded by almost every Member of the House. I need not emphasise the urgency of restoring our overseas trade. It is quite unnecessary to emphasise the urgency of getting reparations, but we are compelled to ask as to the form the reparations will take. Quite clearly they cannot take the form of money. That would not help many people here or elsewhere. To a very large extent they must take the form of commodities, and I respectfully ask hon. Members to reckon up the cumulative effects of the devices which we have so far adopted so far as Germany is concerned in respect to their effect on the proposals that are now under consideration. It was not German, but British, experts who pointed out as recently as December, 1920, that what Germany required most was a revival of her export trade. There cannot be any doubt that the proposals in this scheme are primarily directed against the Central Powers. That is the idea. Very well. Germany is to be confronted with a Reparation Tax. She is to have the burdens of her export tax. She has to have the added weight of the proposals which we are now making. I put it to any serious-minded economist or other individual interested in these affairs in this House as to whether that policy is going to give Germany the chance to pay the reparations which we demand? I submit it is altogether unreasonable, and we are not, after all, an unreasonable people. After past wars we have been generous to defeated foes, but a great deal of what we are importing into this strictly economic domain is what I have no hesitation in calling international and political prejudice. I do not blame people who are guilty of that. We have all felt the horrors of the War. I do, however, suggest that at this crisis in our history, when we are trying to restore our trade and commerce, we must put all feelings of that kind on one side. There is another danger which I would only try, in conclusion, to summarise. Our experts pointed out that the Central Powers were not merely developing the trust movement within their own borders since the conclusion of peace, but more and more they were entering into trade agreements with important groups of traders outside their countries. I take the view that the recovery of the world depends upon considering Europe, as far as we possibly can, as an economic whole.
I remember well the terms and implications of the Paris Resolutions. The spirit of those Resolutions is with us today in this Debate. They were divided into three classes—the steps necessary for the purposes of the War itself, the steps necessary for a period after the War, and those steps that were regarded as likely to prove of permanent value. I submit to hon. Members that post-War experience has falsified a great deal of the doctrine upon which those Resolutions were based, yet we have the definite importation of their arguments into the Resolutions which we are now discussing. The only effect of all this must be to bind the Central Powers of Europe together in a kind of economic war with other countries, because do not let us forget that the Resolutions included a specific statement that preparations were being, or would be made to wage an economic war after the great international struggle itself was concluded. I believe that to be absolutely useless and detrimental to this country. These Resolutions to-day make for restriction of trade at a time when maximum freedom is necessary. I give what I believe to be the sound policy for labour in this country; that is to be prepared to meet our difficulties by education, by scientific management in relation to employment, and not to rely upon the form of subsidy which undoubtedly these Resolutions involve.
I trust I shall not be accused of fulsome flattery if I congratulate the Labour party on the hon. Gentleman whom they have chosen this afternoon to make a speech on their behalf, and who has just sat down. Whether in the future the Labour party decide to plump for Protection or stick to Free Trade, no one will be able to quote against the hon. Gentleman one single thing that he has said. He talked about the equilibrium of trade, but he has proved himself this afternoon to be one of the greatest equilibrists in this House—a sort of intellectual Cinquevalla, who balanced a billiard ball in the air without deviating a hairbreadth from the straight. In like manner the hon. Gentleman managed to balance Free Trade on the one side and Protection on the other. From different sorts of motives I am going to try, in my own very much more humble way, to emulate the excellent example of the hon. Gentleman, because I do not want in the very least to stir up the embers of those ancient fires that used to rage so furiously in this House. I hope that in the seven minutes which is to be the limit of my speech there will be no trace of any of the old war-horses of Tariff Reform who will, like the ancient animals, sniff the battle from afar while the warriors are lifting up the shield and the buckler, and saying "Aha, aha!"—the thing which, apparently, war-horses did in those days, though you do not see it at all in the modern cavalry action.
I am going to agree very strongly with what the right hon. Gentleman who is in charge of the Resolutions said, and to disagree with what the hon. Member for Newcastle said. I assert that an. entire change has come over the whole attitude of this country, and particularly the working classes of this country on this subject. Accordingly, the old arguments are really out of place now. I just want to add my own personal testimony to the fact that this is one of the questions On which great pressure is brought to bear upon me as a Member of Parliament for West Edinburgh. It is the kind of pressure to which I am very amenable, and that I like to see brought to bear upon me, for that pressure comes from the working classes and the trade unions, and no longer from the employers, the capitalists, or the politicians. In the former days, on the Tariff Reform controversy, the people who took the main interest in it were the capitalists and the politicians. Now it is the working men and the trade unions. To come down to actual facts, I am just going to give a concrete example of the sort of thing that meets one in ray constituency. The biggest employers of labour in my constituency are rubber manufacturers whose business depends chiefly upon the manufacture of motor-tyres. Before the War they were doing very well. During the War they were doing still better. They paid splendid wages. They paid big dividends. Since the War, however, they have been confronted with tremendous competition from the United States of America and—this is the real point—with equally great competition from France and Italy. The competition with the United States may be due to causes which are not struck at by the enactments contemplated in Resolution No. 2. The competition with France and Italy is due to some extent, no doubt, to the fact that the cost of living, the standard of living of the worker, and the standard wages have risen very much more in this country than in either of these two countries. They are very largely handicapped by the importation of these rubber tyres from France and Italy, and this is due to the totally abnormal and extraordinary conditions of trade between those frontiers. The fact is that the British rubber tyre manufacturer does not run any chance at all against the rubber tyres imported from France, and Italy, and the concrete result is that in West Edinburgh you have wide unemployment, and almost all those who are employed at all are upon short time.
The rubber tyre industry is threatened with a very great danger which may prove its extinction altogether, and this is a very deplorable state of affairs to anybody who does not want to see our industries extinguished, and who does not like to see men going about starving and in rags. It may be all very well to try and comfort men in this deplorable plight by saying: "Well, we are getting in rubber tyres from France and Italy, and see how that is going to stimulate our export of cotton. Look at economic theories and read John Stuart Mill." That does not satisfy a hungry man. It is no good trying to fill a man's stomach with John Stuart Mill. He is difficult to digest on a full stomach, but he is deadly on an empty stomach. Accordingly I would plead in favour of the legislation contained in these Resolutions, and the business appeal which has been addressed to us by the right hon. Gentleman the Member for Norwich (Mr. Roberts) to treat these industries on different grounds, apart from any of the pedantic doctrines of Tariff Reform or Free Trade. It is no use being Pharisaical about Protection or Free Trade, because Free Trade was made for man and not man for Free Trade, and if men are going to starve upon Free Trade principles, let us act as business and sensible men, and although still bowing to the principles of Adam Smith and John Stuart Mill, for the present moment let us say that the British workman is not going to be allowed to starve in the streets of our cities. This legislation is not meant to permanently protect British industries, and make a sort of favourable hothouse climate for them, but it is to prevent this sudden blight or frost that has come in these totally abnormal and extraordinary conditions of our time, that is the extraordinary state of the exchanges, and a state of affairs which is produced when goods are dumped under cost price. These sudden frosts and blights have fallen over our industries at the present time in a more menacing way than they have ever done before, and it is to protect our industries from these unexpected and sudden changes, and not to give them any sort of hothouse atmosphere, that we support these Resolutions.
I think we can see the changed conditions in the fact that this is going to be a working man's movement. The rubber workers appeal to me and not the employers. It is true that I went to the employers to get statistics, but it was the Rubber Workers' Union that moved me. This Union has brought capital and labour in that trade together, and its members went with the rubber employers to the President of the Board of Trade and no doubt they will do it again, and they will have my support. I take this course not in order to obtain artificial support for an industry on the protectionist lines that the great American millionaire is supposed to be out for, but I support these proposals because it is the British workman who is now faced with very extraordinary and abnormal conditions, and who requires his livelihood protected. From my point of view, and totally irrespective of my past views upon this subject, as a business proposition, and as a man who wants to prevent the British workman from starving and from unemployment and short time, I very strongly support the proposals which are contained in these Resolutions.
The argument of the hon. Member who has just spoken is based largely on the position of certain works in Edinburgh. I suggest that hard cases make bad law, and if a national policy is to be influenced or governed by conditions which affect any one industry or constituency, the position, indeed, becomes a very serious one for this country. When the President of the Board of Trade, earlier in the afternoon, introduced his Bill, he stated that the Government were looking ahead and that they feared a flood of cheap goods. As he gave expression to that utterance, I thought of the many people throughout this country whose wages were low and who desired cheap goods, and if there could be one message which the President of the Board of Trade should convey to the public to encourage them, it would be a message to the effect that in future the goods they purchase are going to be reduced in price. I suggest that our best guide is our experience in the past, and particularly our experience during the last 60 years. We should not be asked in these abnormal times to change fundamentally our fiscal system. This House of Commons was elected when public opinion was concentrated on one subject only, and it is hardly fair to this country to ask us to fundamentally change our fiscal system under the circumstances.
These Resolutions can operate in one way only, and that is by maintaining high prices. The first one deals with key industries, but the best argument against each one of these Resolutions is contained in the first Resolution, where we find the lines containing certain articles. During the War Great Britain found she was able to presecute the War with vigour with the exception of the few articles mentioned in these Resolutions. I suggest that a system which can stand the strain for a long period subject to the minute criticisms of the Board of Trade, and can only produce a certain number of articles which are required to be made in this country, should be maintained in the future. When the subject was originally introduced, I think it was in 1918, I urged in this House that it was wrong for the Government of the day, no matter what its complexion was, to grant protection to any one industry, and if it did it should at the same time secure that a large measure of the profits should go into the coffers of the State. It is not justifiable or fair to grant protection to one industry at the expense of other industries, unless you secure that the profits created behind the tariff wall pass into the coffers of the State.
The same Resolution deals with the exchange. The problem of exchange, I admit, is a difficult one, as was stated by the hon. Member for Edinburgh (Mr. Graham), but may I remind the House that the only three large countries whose exchanges stood high last year were Sweden, America, and Holland? If hon. Members will examine the export trade of those countries, they will find that their export trade was much larger and greater than the countries whose exchanges were depreciating, and those countries had a very much larger trade in proportion to their population last year than the countries whose exchanges were depreciating. Therefore the main argument in favour of the second Resolution, if my statement is true, falls to the ground, and there is no record of any country in history maintaining a large trade with a depreciated currency.
Argentina, for many years, had a premium upon gold amounting to 147, and the whole of her export trade was built up on the fact that this premium on gold depreciated her currency and caused her exports to expand.
7.0 P.M.
I am not anxious to make any point which is not absolutely correct, and my only desire is to seek out the true facts of the situation. My only object in taking part in this Debate is to ask the House to look at the facts as they have presented themselves to me, and if the argument I have advanced is sound, that no country can do a great export trade with a depreciated currency, then the main argument in favour of these proposals falls to the ground. It might be said that under the pretext of a depreciated currency the Government of the day are being pressed further than they desire to go. I hope the Government may be willing to listen to an Amendment and to the argument I have advanced. No doubt other arguments will be advanced, showing that though you try by legislative action to stop the free flow of goods from one country to another, and though you may start out with the very best intentions to further the interests of your own people, in the long run you will do great harm to your industry. The suggestion I make is we should allow the system which has been maintained in this country for so long to continue in the future.
The second Resolution is directed against dumping. The Government say that dumping is a bad thing for this country, and that the delivery of cheap goods in this country is against the country's interests. Surely if there is one thing which this country desires to-day it is cheap goods. Another hon. Member defends the Resolution with the argument that we want employment. In the course of the Debate several hon. Members have spoken in favour of the producer, and the President of the Board of Trade, when dealing, I think, with the first two Resolutions frequently used the word "trade," while coming to the second he often used the word "producer." This Resolution raises a question of first-class political importance, namely, whether this country is going to direct her industry and her effort to protect the producer or the consumer. There can be no compromise between those two interests.
During the War this country directed her energies to protecting the producer. We see the result to-day, in many ways. These Resolutions are directed toward safeguarding the interests of the producer. I think, after 60 years, during which the country left the producer alone to look after his own interests, while at the same time it safeguarded the interests of the consumer, that the system which has stood for that time should not be abandoned at a time of great industrial trouble. All industry exists, not for the benefit of the industry, but to serve the public and the public alone—they are the masters. The Joint Industrial Councils, which have been mentioned this afternoon as being in support of the Government policy and of the Government doing something, are actuated by the desire to protect their own particular interests. Great Britain can only become great and maintain her position by facing the competition of the world. Our 45,000,000 of people are the admiration of the world, and this small country maintains a much greater population, with a greater degree of comfort, than is found in any Continental nation. Without much sun we have turned our attention to manufacturers. It might be possible for this country to maintain 30,000,000 or 35,000,000 people at a high level of subsistence and on high wages. If, however, we are going to maintain 45,000,000, it can only be done by allowing our ports to be kept open in order to receive produce from every country at the lowest possible price, thus enabling our manufacturers to sell their produce and to buy the foodstuffs and the raw materials they require.
I stand for a great Britain, not for a small Britain, not for a Britain protected by tariff walls, opposed as I am to tariffs for industries, and to the guaranteed price which the Government gave to the farmers and the agricultural interest. Britain can only live and support a free people by keeping all her ports open and removing every trade barrier. As I think of the Government proposals and the Estimates which were discussed in March, of the policy contained in these Resolutions in April, and of the high expenditure, high taxation and high prices in May, I feel that we shall not become a great nation if we are forced along these lines, but that the Britain of the past will disappear and we shall become a little England.
The hon. Member for Greenock (Sir G. Collins) has made an interesting speech, with a good deal of which I should, no doubt, agree. It seems to me, however, that his speech, and a good many to which I have listened to-day, are curiously remote from the Resolutions before the Committee. The hon. Member for Greenock talked about a fundamental change in our fiscal system. He made an eloquent speech on the subject of keeping our ports open, quite oblivious to the fact of the extraordinary trade and economic conditions. He was also oblivious to the fact that the majority of the Members of this House were asked by the country at the last election to deal with key industries and dumping. He asked why we were changing a political system after 60 years, and when the country had never been consulted. We are dealing with three subjects this afternoon, the first is with regard to key industries, the second with regard to dumping, and the third with regard to collapsed exchanges. Key industries and dumping were in the election speeches of every Coalitionist-Liberal Member. [HON. MEMBERS: "Oh."]
And a lot of other things, also.
The other things are coming along. The electors certainly had these questions before them, and the country certainly expressed an opinion upon them, whatever the view of hon. Members may be now—and there are some Members whom I think rather unfairly, like the hon. Member for Oldham (Sir W. Barton), were apparently ready to obtain support on these pledges at the election, and now reserved to themselves the liberty to oppose the Resolutions fulfilling these pledges.
Is the right hon. Gentleman aware that at the last election I stood as a Free Trader and a declared Free Trader, and in favour of open ports?
Did the hon. Member stand as a Coalitionist candidate, pledged to support the Prime Minister's programme?
It is quite evident the right hon. Gentleman does not know the conditions under which I stood. They are in black and white.
I do not wish to do the hon. Member the slightest injustice—
I regret to say that you are doing so.
If the hon. Member thinks I have said anything unfair to him, I will withdraw with the greatest pleasure. If he says he stood as a Free Trader, so did I; and I stand at this box as a Free Trader. I think I can easily demonstrate that there is nothing in these Resolutions to which any person can object who really understands what Free Trade is, and who does not mix up Free Trade with cheap goods, as I am sorry to say a number of hon. Members do. They seem to think that the Free Trade economic system is merely a question of somehow obtaining cheap goods, and subsidised foreign goods if they are cheap. Any Free Trade economist knows that that is the very antithesis of Free Trade. That is the point to which I wish to refer in a few moments when I speak on dumping. I will deal with the Resolutions as they stand. Take the question of key industries. I think the hon. Member for Oldham said that all the industries in the Schedule were ancillary to other industries. Of course they are; that is why they are called key industries. That is the whole meaning of the term. What are they?
Raw materials.
After all, what is the whole idea with regard to these key industries? The question of defence of munitions, which were found, on practical examination by the fighting Department, could not be produced in sufficient quantities when the War broke out. You can take one of two actions. You can say: "We do not care; we will take the chance in any future war, which may never occur again, of this country being short of any of these important things." They are small, perhaps, as industries, and in a way they are possibly very unimportant. They are, however, very essential, each in their way, to the most important things we have to do. You can say as one hon. Member did: "I do not know what we may want in the next war and therefore I propose to do nothing." That seems to me a most foolish policy. We know what we were short of in the last War, and we should not be carrying out our duty to our country in any way if we did not try to make sure that we should not be short of these things on the next occasion.
It is not a question of Free Trade or Tariff Reform or Protection. There is no Tariff Reformer who in any sense accepts the Schedule as a tariff. A very much larger Schedule was introduced by Mr. McKenna when he stood at this Box. I opposed it, but I got very little support. Then, however, we were not dealing with key industries and national defence. In this connection it is rather interesting to go back to one of the fundamental elements of the fiscal question. Adam Smith, in his "Wealth of Nations," in discussing this question says:
These industries to-day are not yet in a position to stand on their own feet. From my own knowledge I can say that, if they are simply left to the free play of competition, they will disappear. It seems to me to be folly, having spent all this endeavour, having just got your technical people trained, and having just reached the stage of development, you should let them go. I would remind the Committee that the whole of the German glass industry was based on a years-long subsidy, and under that subsidy they established that magnificent industry, the secrets of which we have learned during the War. Therefore, it is not fair to argue continually that the British manufacturer is an entirely incompetent person and has only to meet entirely free competition. In this particular case that is not so. Again, it seemed to be imagined that the Board of Trade could add any number of fresh industries to this schedule. That is not the case. The schedule is completely closed as it stands, and, therefore, it is only the House of Commons who could add to it. All that the Board of Trade can do is to fill in details; it cannot add new industries. After all the Balfour of Burleigh Committee, on which I served for two years, comprised, not merely a Free Trade chairman, but a number of the leading Free Traders of this country, and also some very prominent Labour representatives, like Mr. Harry Gosling and Mr. George Wardle. Other members were Lord Rhondda, Sir Alfred Booth, the late Postmaster-General, and Sir Clarendon Hyde, who was formerly a Member of the House of Commons. It comprised a number of men of all parties and of all fiscal creeds, and its Report, in its main points, was unanimous. On this point of key industries it was unanimous, and I think that that in itself ought to carry considerable weight in this Committee. It heard a great deal of expert evidence of all kinds, and took a long time to reach its conclusions, and it was unanimous on this point, and also in regard to dumping.
I wonder whether we are all at one in what we understand by dumping. I have always defined it, and I think it is a general definition, as sales, as part of a deliberate policy, made by the producers of one country in order to ruin or destroy an industry in another country. That is the underlying idea of what we understand by dumping, and that is the view which we have taken in the Bill which it is proposed to found upon these Resolutions. The Resolutions, obviously, cannot disclose the whole of the machinery, and I do not think I should be in order in discussing the whole Bill now.
Will the right hon. Gentleman tell us where that is in the Resolution?
As my hon. Friend knows, the Resolution must be drafted in rather wider terms than the Bill, because, although you can make a Bill smaller than the Resolution, you cannot enlarge it beyond the Resolution. I think that if hon. Members would not discuss the financial Resolutions, but would let us introduce the Bill, the discussion would be very much more fruitful. The key to the matter is employment. The whole operation of the anti-dumping duty does not work except on the ground that articles of a given class are being sold or offered and that by reason of their sale or offer employment in any industry in the United Kingdom is being or is likely to be seriously affected.
It is obvious that a casual sale of some odd liquidation stock is not the kind of transaction which can seriously affect employment. The whole idea of seriously affecting employment pre-supposes something that is going on, something that is continuous. It is not merely one or two transactions, which will exercise an influence on this or that factory; it must affect an industry in a large way. A measure requiring proof that these operations are likely seriously to affect employment in an industry goes much beyond the phraseology of substantial or continuous dumping. It will be necessary for someone to go to the Board of Trade and to show, firstly, that goods are being offered or sold in this country at less than the wholesale price in the country of manufacture; and, secondly, that this is seriously affecting, or likely to affect, employment. On that primâ facie case the whole matter will be referred to a committee of business men selected from a panel, who will report whether they think that the complaint is well founded. If that be the case, an Order will be made, which will have to lie on the Table of the House of Commons, so that hon. Members can object to it if they so desire. Only after all that does the procedure of the duty come into operation. It seems to me that that is a very carefully guarded procedure. You have two lots of people to examine the whole matter, and, finally, the House of Commons. It is not the idea or the intention that a mere casual sale, or some disturbance of a local character, shall be treated as dumping.
In this connection I should like to reply to a remark made by the hon. Member for Central Edinburgh (Mr. W. Graham) about Canadian anti-dumping regulations. The hon. Member entirely overlooked the fact that the Canadian 15 per cent. is a surtax on an already very high tariff. We have no general tariff, and our 33⅓ per cent. is a good deal lower than the Canadian tariff. They add their 15 per cent. on to a tariff of some 40 or 50 per cent. already existing. It is not quite right to say that this is adding to what the hon. Member calls the burdens of Germany. If the 50 per cent. sanction of the Reparation Act be carried out by agreement with Germany, it is obvious that the German Government will be reimbursing its manufacturers, who in that case will not be paying any export duty at all; and the same applies to the 25 per cent. laid down in the recent reparation scheme. If that is not done, it is obvious that a man who is already being charged such an import duty cannot very well be dumping. The Committee which examines the case will take that into account. It is not a mere automatic addition of 50 per cent. and 33⅓ per cent. As a Free Trader, I do not consider legislation against dumping to be any infringement of Free Trade principles. I remember hearing a discussion on the question of the sugar subsidy, in which one of the most distinguished Free Traders in Europe—M. Yves Guyot—accused us of being Protectionists because we accepted subsidised sugar. He said that to accept a subsidised article is as much against Free Trade as to accept a tariff-protected article. A man who in this country builds up an industry on a subsidised article from another country is just as much protected as a man who is building up an industry on a tariff. The fact that the goods may be cheaper or not is quite irrelevant.
This fallacy is one into which many people fall. The keynote of the free trade argument is unhampered free exchange of goods; it is not the purchase of goods artificially subsidised, or the sale of goods at a price artificially enhanced by a tariff. There is no economist who has written on the subject of Free Trade who would not say that the acceptance of dumped goods is just as unsound as building up an industry under the shadow of a tariff wall. In my opinion, it is even more unsound, because you never know how long an industry is going to exist. It may be unsound to build up an industry upon an uneconomic basis, but how much more unsound is it to build it up on the goodwill of a people or a Government in another country, who could at any moment destroy it? A man in a tariff country who is enabled to charge his own consumers more behind his own tariff wall receives as direct a bounty on exports as if he received so much a ton. Direct export bounties have been given by big syndicates, or even by the hidden hand of Government, in order to push export trade. The only reason why legislation on that subject has been delayed has been that the damage has never been sufficiently serious to affect the industries of this country or to create a large amount of public feeling; but I defy any Government, whatever its complexion, to stand at this box while one of our great industries was being seriously damaged by unfair competition, while works after works were being shut down and men thrown out of employment—I defy even any member of the Labour party to say that that should be allowed to continue. Neither should the British manufacturer or the British workman be compelled, in the interest of some so-called consumer, in vacuo, to see the destruction of our industries.
The British manufacturer is not entitled to help, but he is entitled to a square deal. I think that the Anti-Dumping Regulations will give him a square deal, and that will be still more the case in regard to the collapsed exchanges. I am amazed at the attitude of some of my friends on the exchanges. I know perfectly well that it is a difficult subject. It is a subject which has given me a very great deal of anxious thought. My right hon. Friend the President of the Board of Trade did not disguise from the Committee either the difficulties of the subject or his doubts as to whether it was good to do something or not; but we have all had those doubts. What is the position? It is that we are in an economic world such as no one has ever conceived—a kind of business Bedlam—I say that deliberately—a position in which no manufacturer knows what his production is or is likely to be, or knows where or when he can sell his goods, or what price he will receive for them. Such a position has never existed. The rate of exchange is extraordinary. It is no use talking of scientific education, or lower wages, or cost of production, when you have exchange differences which enable someone else to sell his products in your country 50 per cent. below your cost of production. I do not know who is more convinced of the value of scientific education than I am, or has seen more of the results of it. I have no doubt wages must come down, but no reduction of wages can meet the exchange situation of to-day. The question hon. Members had better put to themselves is, how many years they want to see our great steel industry stand idle—not months, but years—how long the workers are to walk the streets while slowly, by the operation of economic laws, the exchanges begin to get right. I am not talking about the chairmen of banks. They have no weekly wages to consider. They can sit in their bank parlours and wait and see whether a rectification by economic laws may or may not take place. Their institutions do not suffer much. I am speaking of the great manufacturing industries, and I have come to the conclusion that I cannot be responsible for seeing them go out of operation, seeing their skilled staffs disperse, and their plant and machinery falling into disuse and disrepair. No man alive can tell me how long this process is going to last. If it was a question of a few months, even 12 months, we might be able to face it, but no one can give that guarantee.
We cannot perhaps deal with the whole difficulty, but that is no reason why you should cowardly refuse to do anything. We propose to try to reduce this huge difference on the only sound basis of the difference, as near as we have been able to get it, between the exchange, internal and external, of the country we are most concerned with, and that is Germany. The hon. Member (Mr. Graham) said we do not want to ruin Central Europe. Of course we do not, but we do not want Central Europe to ruin us. Their works are more fully employed than ours. They are obtaining the export trade of the world by deliberately reducing the exchange. Hon. Members say, "Let exports and imports balance," but you have a Government with a printing press grinding out notes in order deliberately to depress the exchange and to capture the export trade. Those are not economic laws. They have a machine there by which they manage—foolishly, I think, but that is their policy—to endeavour to evade economic laws. Are we to sit here and do nothing, let this printing press work on, and let them see whether their economic theory is right or ours? They may go into bankruptcy with their printing press, and possibly will, but that is no satisfaction to us when we are paying millions a week to unemployed workmen. I wish the German Government would give up its printing press and endeavour to get the exchange better. Nothing would please us more than to see the exchange become normal. The more normal it becomes the more legislation of this kind will cease to operate. I have deliberately come to the conclusion, with the greatest reluctance, that we cannot afford to, we dare not, sit quietly here and do nothing. If our attempts are unsuccessful, then we have tried and we have failed, but I am not in the least impressed by the speeches I have had quoted to me of chairmen of banks earning 22 per cent. and 25 per cent. I daresay these gentlemen are quite right in their abstract virtue. They may also be quite wrong. But we certainly cannot afford to sit and wait and do nothing under present conditions.
Reference was made to raw materials. Will the right hon. Baronet give us some assistance by defining what is meant by raw material?
I am talking about the rate of exchange. I do not know whether the hon. and gallant Gentleman is trying to draw me over the old ground of controversy in which I took a considerable part myself a good many years ago. I am fully aware of the difficulty now. I certainly refuse to give him a general definition of that kind. If he will give me a specific instance I will endeavour to tell him whether I think it is a raw material or not. But I was dealing with the question of collapsed exchanges. You cannot, under entirely abnormally conditions, rely entirely on purely normal economic laws. It is no use telling ire that in introducing some means—duty or anything else—to deal with collapsed exchanges I am departing from the faith of Adam Smith, Cobden, and Bright. They were not dealing with a situation like that of to-day. A living country cannot be guided by the shibboleths of the past. You must deal with what is in front of it now. These Resolutions endeavour to deal with one of the most difficult situations any Government in any country ever had to face. The old arguments seem to me entirely waste of time and entirely unsuitable to the occasion. After all, we are not here a pure debating society. I am not interested in traversing the speeches, as I could do, of my Friend Mr. Runciman when he was President of the Board of Trade during the War, when he said he hoped German trade would never get up again, and used the most violent language. He felt very strongly at the time.
Is that why he lost his seat?
I suppose he lost his seat because the electors did not want to return him to the House. It was not my fault. I was not one of the electors. I do not see that there is much to be gained by bringing out the Paris Conference Resolutions, which were certainly very strong and which were not merely passed, if the hon. Member (Mr. Graham) will carefully look at them again, on the question of an economic bloc between the Central Powers, but were really meant to be an attempt at a commercial alliance of the Allies to last for all time. I must frankly and honestly say I have often thought it a very great pity that that idea was not pushed further. The relations between the Allies in the future would have been much stronger and much more harmonious, and the extension of Free Trade in the world would have been very much greater if we had broken down the tariff barrier in the greater part of Europe. But that, of course, passed away. One of the key ideas of Paris was that we should render ourselves free in future of necessary articles, and even raw materials, which we had obtained from enemy countries, and that was a permanency. It had nothing to do with the transitory provision, the penalisation, which alone affected the question of the economic bloc. The provisions dealing with key industries is an attempt to make ourselves free to a certain extent of things from ex-enemy countries. The dumping provisions are an attempt to deal permanently with a form of competition which is bad for the receiver, bad for our industry, at a time when you require not only work, not only science, not only organisation, but two other things—confidence and credit. Re-establish confidence and credit and trade to-morrow will take an entirely different turn If you secure people against a flood which they cannot stand up against, if you put up a dam to prevent them being washed away, if you assure them that the Government of the country will protect them against illegitimate competition, surely you are helping to re-establish that confidence and credit which are so absolutely necessary at present to get the wheels of industry started again.
The right hon. Baronet will excuse me if I say that many of us heard with great pain the defence he has just made to the House of Commons. Some of us have sat in this House for many years, and have looked upon him as one of the teachers, one of the apostles of Free Trade. If I may quote the words of Browning,
"We that have loved him or followed him, honoured him,
Lived in his mild and magnificent eye,
Learned his great language, caught his clear accents
Made him our pattern to live and to die."
He has become indeed a lost leader. I am certain he has undergone, I do not know whether to call it conversion or apostacy before he could make the speech he has made to-day. I realise very fully, as anyone is bound to do, the tremendous difficulty which a mere neophyte, a disciple, must encounter in attempting to controvert the apostacy of his own master, but I will try to follow him in the different points that he has made. He said, inadvertently no doubt, that this was a permanent method of dealing with our difficulties. That, of course, was an interesting aside in view of the repeated and heated assurances we have received that this was only to last for a few years at the most. He said to my hon. Friend (Sir W. Barton), "How dare you, who stood as a Coalitionist at the last election, be opposed to this Resolution?" What were the words of the famous Coalition pledge, the joint letter of the Prime Minister and the right hon. Member for Central Glasgow (Mr. Bonar Law)? It was that they would take measures to protect people who were being undersold by goods which were introduced below the actual cost of production. Those were the actual words in the election pledge. Those are not the words of this Resolution. The words in the Resolution defining what is meant by below the cost of production are, "the wholesale price in the country of manufacture" That is the cost of production, plus profit. Below the cost of production, according to this Resolution, means below the wholesale price at which they are sold for consumption in the country of origin.
That clearly is the definition of cost of production.
The right hon. Gentleman is more familiar with business operations than I am, but I cannot understand how any firm could survive that sold its articles at the cost of production without any measure of profit. This Resolution goes very much further than any pledge given by any Coalition Minister or by any Coalitionist at the General Election. I am dealing specially with the point raised by the right hon. Gentleman when he was reproving and chiding the hon. Member for Oldham (Sir W. Barton).
He withdrew that.
Whereas the actual election pledge was "the actual cost of production" the Resolution says that it must be the wholesale price at which they are sold for consumption in the country of manufacture. That is the cost of production, plus profit. If no such goods are sold for consumption in that country then it must be the price at which a similar article sold for export would be sold in that country. How on earth is anybody to determine at what price the same article would be sold if it was sold in the foreign country? As regards countries where the depreciated currency exists it is not the cost of production that is to be the measure, but it is to be the price at which similar goods can profitably be manufactured in this country. So that the pledge against dumping has become this. Protection for anyone who can show that an article is coming in at a price lower than the price at which similar goods can be profitably manufactured in this country. Who is going to fix that price? The Board of Trade. Who is going to advise the Board of Trade? The manufacturers. I should like to see the fate of the manufacturer who went to the Board of Trade and explained that he was able to lower the price of manufacture of some article in this country. He would receive summary treatment at the hands of his fellow manufacturers, because by improving his processes and lowering the price of the article he would be opening the doors to the flood of foreign competition which this Resolution otherwise would shut out. The fact of the matter is that the right hon. Gentleman has given one definition of dumping which I am willing to adhere to. He said that it was a determined and systematic effort to damage British industry by sending in goods below the cost of production.
"Ruin."
That was the definition in the Resolution passed by 50 Coalition-Liberal Members of Parliament. It was passed unanimously by these 50 gentlemen, one of whom has recently become Financial Secretary to the Treasury. We shall watch with considerable interest to see how he will deal with the Resolution which was come to on that occasion. Step by step the Government is erecting a protective system in this country. It is no good the right hon. Gentleman saying that this is only a thing adapted to meet the peculiar needs of the present moment. Ever since it came into office this Government has acted, I think, on a preconceived plan, to erect a protective system in this country. Little by little they have applied the protective system until to-day we have all the evils of protection without any of the advantages of a scientific tariff, which might have something to be said for it, because at any rate it would be a preconceived and complete plan adopted to meet the needs of the moment. The McKenna duties, which the right hon. Gentleman opposed with vigour in this House, and which the late Leader of the House pledged himself should never in any circumstance be retained in peace time, were immediately re-introduced after the War and were fixed in the fiscal system of this country by the introduction of preference, which gave to the people in the Dominions an interest in their retention. Then a preference was given to the Colonies within the mandated territories.
No.
Yes, that is so. Next the Colonies were invited to reciprocate by a circular from the Colonial Office. Then an export duty was put on certain exports from the Colonies, and afterwards came the first of these anti-dumping proposals. Again we have had the continuation of the McKenna duties, without any protest from the right hon. Gentleman or from any of the Coalition Liberals. We have had the Dyestuffs Bill, and the Reparation Bill, with its 100 per cent. duty, which has proved such a complete fiasco as a revenue-producing instrument. We have for the present year the 100 per cent. duty under the Reparation Act, the McKenna duties, the preference to the Colonies, the Colonial reciprocity, the Palm Kernel's duty, the Dye Industry Act, and now we are to have this Safeguarding of Key Industries Bill and this legislation for collapsed exchanges. Anyone will agree that that is a very considerable instalment of Protection, in the direction of turning this country from a Free Trade country into a very grotesquely protected country. As the Prime Minister himself said, "Protection is a quicksand." Once you get your feet in it you cannot get out of it. Step by Step this Government is deliberately taking its supporters into the very centre of that morass.
The right hon. Gentleman dealing with the key industries side of the Resolution read a passage from Adam Smith. I hope he will not be twitted for so doing by those hon. Members who made it clear that to quote any authority on this matter is quite inappropriate to the spirit of the time. The right hon. Gentleman said that we require protection for certain key industries, and he referred to the election pledges. I do not think any of those pledges said anything about a tariff to protect key industries. There was no promise that the key industries would be protected by a tariff. The right hon. Gentleman made it clear that in Germany, where they understand how to do these things it was not a tariff that protected the key industries, but a subsidy. The President of the Board of Trade reinforced that view in his speech, because he said that nobody would ever suggest that we should buy our guns from Krupps or our ships from the shipyards on the Baltic. No one has ever suggested that we should build up our shipping industry or our gun industry by putting a tariff on the introduction of guns and ships into this country. In regard to this question of subsidy, there is a very good case to be made out for subsidising a key industry, once you can show that it is in reality a key industry. What is a key industry? What is going to be the centre point of the next war? Can the right hon. Gentleman say? After the battle of Hastings the Government gave an order that all the churchyards should be planted with yews in order that we might have an adequate supply of bows and arrows for the next war. That was the key industry of the day.
We had it for two centuries.
The hon. Member's interruption is very apposite. The bow and arrow theory still prevails. If, in- stead of devoting our attention to the growing of yews we had paid a certain amount of attention to the activities of the man who invented gunpowder, we should have been more practical. If we had relied upon the progress of science instead of the old out-of-date shibboleths of previous wars it would have been more to the point. After the Boer War it was commonly supposed that shrapnel and cavalry were going to be the secrets of the next war. It was not so. High explosives and flying were certainly more important than the things that won the Boer War. Now the right hon. Gentleman speaks about poison gas and chemical and scientific glassware.
The hon. and gallant. Member has just referred to the Boer War. Is he aware that if we were to fight the war over again in South Africa we should have almost the same conditions? After the experiences of the late War, with the exception of aerial fighting, we should have to fight on the same conditions in South Africa.
The hon. and gallant Member is quite entitled to make that interruption, and I understand the good nature in which it was made, but it does not affect my argument. By the next war we may have developed something absolutely different from poison gas, and the like. Of course, there is no harm in going on and perfecting the weapons that were used effectively in the late War, but it is not to be supposed that the weapons which will be used in the next war will be the things that are mentioned in the Schedule of this Resolution. It will occur to the mind of anyone that there are various ways in which development can take place. Supposing non-inflammable gas was invented and it was largely developed. In that case Zeppelins could come over and could be immune from attack by bullets. Supposing the helicopter, the stationary aeroplane, were really made possible and effective as a weapon of war, its enormous power of destruction as a stationary bomber over our great cities would be appalling. There is also the question of the internal combustion turbine which would revolutionise the whole of the system of air fighting. While the subsidy of useful military enterprises may be a good thing, I say that to pretend that you can build your ideas of future war needs around some little secret process is an absurdity. What you want in war as in peace and commerce is Free Trade in ideas; scientific advance. The right hon. Gentleman spoke about scientific apparatus. The newspapers have been full of complaints of people who say that they cannot get along with their scientific research because of the restrictions put upon the importation of glassware by the Government. If you want scientific advance to win the next war then you want the best apparatus, and to get that you need the best that the world can give in ideas.
Can the hon. Member give one definite example where the scientists could not get scientific glassware?
Yes. Mr. Lawrie in the "Times" wrote a letter, which I shall be glad to hand to the hon. Member, in which he complained that owing to the restrictions on the importation of glassware—and there is another letter from another scientist to the same effect—it was impossible for our people to manufacture what he wanted. He says that he cannot get it except from abroad, and his researches are being hampered by the restrictions put upon the importation of glassware by the Government. The fact is, that under the guise of this so-called protection of key industries for war purposes everybody is trying to creep in and get the advantage of the tariff. [HON. MEMBERS: "Why not?"] Yes, why not? Then let us have frank protection. Let people say frankly, "We want a tariff." Do not let us have the deceit of people pretending that they are going to defend the country against the Germans in future, which is quite legitimate when they are really log-rolling in their business in order to get a tariff for one's own advantage. This Schedule has been added to since the last Bill. There is now the phrase, "Other optical instruments, etc.," and there are several "other" things. That will enable the Board of Trade to make a considerable widening of the articles to be admitted. If we look at the demands of the Federation of British Industries, we find that they are demanding that everything should go in as a key industry:—rods, nails, typewriters, hosiery, even busts for corsets. They say that it was found during the War that busts for corsets could not be made in this country, and they are saying that the making of busts for corsets is a key industry and that it should be protected. Every day one gets letters from manufacturers saying that something else should be included. The yeast trade declares that it is a key industry and that it was promised by the Ministry of Munitions during the War that if it went on they would get protection during the times of peace. I had a letter the other day about the protection of potassium.
Supposing the supply of yeast failed. Is the hon. and gallant Member aware that there would be no bread in 48 hours?
8.0 P.M.
In that case, why not put a tax on corn? If you consider bread is a key industry, then put on a full-fledged tariff and make this country self-supporting. Let us live in caves with bows and arrows and have nothing to do with the dirty foreigner whatever. That really would be the fine conception and what tariff reformers undoubtedly will drive us to if we give them their way. The right hon. Gentleman went on to say it was to stop some immediate flood of cheap goods which were to come from Central Europe, and he said no Government could stand at that box and defend inertia, inaction, in such circumstances. I must say it is a very great surprise to me to hear that after a country has been so thoroughly beaten as Germany, it should be in this position of peculiar advantage. We have so much to put up with as the victors that one turns a somewhat tearful eye to those countries who have enjoyed the enormous advantage of being beaten. They merely print their notes and are able to sweep the world with their exports. They are the happiest men alive. Does the right hon. Gentleman really say that a depreciated currency is, looking at it perspectively and taking the thing in the large, an advantage to a country?
If you diminish your imports, as Germany has done so successfully, you depreciate your currency, and it is reflected in exports.
At the same time it is an enormous disadvantage to that country when it comes to buy raw materials, as it must, from abroad. This is actually borne out by the position of Germany to-day. All the reports that come from Germany point to the fact that, in spite of the boom that took place, there is considerable unemployment in Germany. We know what their actual exports are compared with peace-time. Twenty-five per cent. of the exports of Germany are estimated to produce £50,000,000 towards indemnity. That would make the total exports £200,000,000, or, at their pre-War value, something under £100,000,000. Germany's exports before the War were £500,000,000. How then can we be face to face with a country that is about to flood us with cheap materials? Here is a thing I have never been able to understand: The Government is preparing to receive a surplus of exports from Germany amounting to anything from £150,000,000 to £300,000,000 per annum in order to pay the indemnity, and at the same time we are closing our ports against those very goods. That does not seem to me to be a dovetail scheme; it seems to me more nearly to assimilate to the "business Bedlam" of which the right hon. Gentleman spoke. If you look at Europe as a whole you will see that, so far from this depreciated currency being a national advantage, it is of the very greatest disadvantage. There is growing unemployment in France, there is unemployment in Italy, there is very growing unemployment in Germany. All these countries are debtor nations owing enormous sums of money. How can they pay to us, to whom they owe the money, unless we permit them to export the goods, which is the only way in which payment can be made? Why did the Government come down and introduce measures to correct our exchange with America?
It was because a set of hon. Members, of whom I was one, pointed out to the Government that they should take the peg out of the American exchange and allow the sterling value to fall.
So the Government did the wrong thing?
No.
My point is simply this: When our exchange was at a discount with America the Government told us we were at a disadvantage; when the German exchange is at a discount with ours we are told they are in a position of advantage. That is a position of affairs which I confess I am not able to understand. The fact of the matter is that the only effect of this would be to depreciate still further the currency of those countries, and put them in a more favourable position than ever to compete with us, not in this market, but in the neutral markets of the world. Every day we see in the newspapers accounts of British manufacturers being defeated in neutral markets by the exports of those countries. The right hon. Gentleman says we are dealing with abnormal times. The thing is, what can we do to restore our prosperity? One of the greatest sources of our prosperity is our export trade. We are up against very severe competition with those countries in our export trade, and the Bill founded on these Resolutions, so far from assisting us to recover those markets, will make it more difficult, because our manufacturers will have to pay more for the semi-manufactures and machinery which they import, and they will have to compete with a Germany in the neutral markets which has the advantage of low currency. The right hon. Gentleman says it is for the benefit of unemployment. What employment? Of course, one way in which employment will be increased will be that every firm of standing will in future employ a well-dressed young man who will spend his time in getting to know the officials of the Board of Trade. The hon. Gentleman (Mr. D. Herbert) spoke of chemical glassware. We are making babies' bottles. Is the right hon. Gentleman aware that under the import register babies' bottles were forbidden because they were held to be scientific glassware?
I was speaking of scientific glass used in the working of certain big industries to which the hon. and gallant Gentleman was referring.
The nurture of children is one of the biggest industries. The right hon. Gentleman says you must show before you get the advantage of the tariff that employment is affected. What we contend is that the Board of Trade will be besieged on behalf of this or that industry which will show that here 1,000 men or there 5,000 have been put out of employment or are on short time, whereas, from the larger point of view, employment in this country is best served by the completest freedom of trade. If you look at the "Labour Gazette" only for this last month, you will find that in the steelworks and steel sheet trade employment is bad and declining. Why then put an import duty on their raw material? In the leather and printing trades, employment is bad and declining. Why then put an import duty on leather and on paper? In the dock and riverside trades employment is slack. Among seamen unemployment is increasing by leaps and bounds, and in the trade which is generally classed as conveyers of mails, goods and messages, which is the second biggest employment in the country, there is an enormous increase in the number of people unemployed—112,000—to say nothing of the 75,000 general labourers. What opportunity under these Resolutions will these people have of going to the Board of Trade, though their employment will suffer most as a result of the failure to permit the freest interchange of commodities? The ear of the Board of Trade will be held entirely by the interests, the well-organised interests. The right hon. Gentleman concluded by saying that something will have to be done. When we read of deputations to the Government—deputations that do not go to the Board of Trade but to the Chief Whip—though why people who want legislation should go to the Chief Whip I cannot understand, because it is the Board of Trade and not the Chief Whip who introduces legislation—I think that explains the right hon. Gentleman's statement that something must be done. On the ground that something must be done he proposes to do this. The question we are entitled to ask is, does this help? The last thing the Government did on the ground that something must be done was the German Reparations (Recovery) Bill. Is there anybody now who does not wish that that had not been passed?
Yes.
I am glad there is one person who approves that masterpiece of fiscal strategy. What we want to know is, is this the right thing to do? I need not remind the right hon. Gentleman of the words spoken by the Prime Minister on the Address, with which we all agreed. He said: "We are all interdependent. To love your neighbour is not merely good sound Christianity, it is good business,"—an argument which has much more force, I am perfectly certain, with hon. Members. Then the Chancellor of the Exchequer said: "We have lived upon world-wide trade which is more important to us now than at any other period in our history." What is to be the effect of these Resolutions on our world-wide trade? It is to restrict our supplies and prevent our scientific advance and our maintaining the lead of the nations of the world, and to lead us back again to that petty quarrelling super-nationalism, which is the thing the Prime Minister himself specially reprehended. The right hon. Gentleman says this is not going to be in the Bill. We can only judge the Bill by what is in the Resolutions. If it is not to be in the Bill they have no right to ask for these powers. We must judge the plan by the Resolutions and, judged by the Resolutions, I venture to say it is a plan which cannot commend itself to the Members of this Committee.
I interrupted the hon. and gallant Gentleman who has just sat down only in regard to one passage in his speech, and that was in reference to wars fought in Europe, and which might have to be fought again, God forbid, in continents like Africa. I only want to make my interruption good before I go on to discuss the Resolution before the Committee by saying that my conception of such a war would be that we should virtually fight it under similar conditions as we did in the South African War, but that we should have more machine guns. We should have Cavalry and infantry as before, but we should not be able to dig trenches right across the continent as we did in France, and, of course, we should have the benefit of a developed Air Force. The hon. and gallant Member for Leith (Captain W. Benn) has referred to the statement that something must be done. What I want done is that the Government should make good its pledges to the nation that the key industries of the country shall be protected. There is not the shadow of a doubt in my mind that the majority of the Members of this House joined in that pledge. My hon. and gallant Friend will believe me when I say that when we were doing our respective bits in the War in different parts of the fighting area we met many people who in the old days had been Free Traders or Tariff Reformers, and we would say, "Thank God, all those petty little things are now behind us—this War is teaching us a lesson—a lesson which we all wanted."
I wish that the Tariff Reformers would say that now.
We hoped that the War was teaching us a lesson—to put our country first—and we hoped that the narrow party view would be a thing of the past. Incidentally, I have always believed that it was the vested interests that supported Free Trade, and we Tariff Reformers had at heart only one cause—the protection of the workers, and that I still believe. It is regrettable to me that we cannot get a simple little measure like this through without having all these old differences raked up. The hon. Gentlemen on the Opposition Bench (the "Wee Frees") might make a good Government if they could get in, but they have to go a long way to get there. All this opposition to this measure, which is carrying out a definite election pledge that key industries should be protected, is not in the main because they believe that this is a Tariff Reform measure which, from a Tariff Reform point of view, could satisfy no Tariff Reformer, it is because they want to be antagonistic to the present Government. Wandsworth Central has instructed me to make this appeal—which I do with all earnestness—that hon. Members should carry out the definite pledges given at the last Election on which the majority won their seats.
When these pledges were given many industries went ahead, under the belief that the Government would have brought such a measure in, and that ere this it would have been placed on the Statute Book. Had they not believed this, they would have shut up their works when their War Office and Admiralty contracts were cancelled, realising that they had no chance, unless that pledge given was made good. No; they were deliberately and wisely led to believe that the key industries of this country, and the trades closely allied to those key industries, would be protected from unfair foreign competition. Believing this, they went ahead, trusting implicitly in the Govern- ment to introduce these Resolutions. I was asked in the interests of Labour to take the chair recently at a big meeting in the town hall at Wandsworth. The employers were represented, but the majority there were the workers of the gas mantle industry, and on the platform was a delegate from the British Trade Union representing the workers belonging to this industry. Their delegate spoke after me at this meeting, and from his speech he seemed to be the hottest Tariff Reformer I ever heard. That meeting passed resolutions which I sent to the then President of the Board of Trade, the present Chancellor of the Exchequer, and later I took a deputation to him representing all classes in this particular trade, and it was explained that they looked to the Government to make good those electioneering pledges to protect that particular industry. The industry in question is the gas mantle industry, which is necessary for the maintenance of the thorium trade in this country, and can therefore be classified as a key industry. My conception of a key industry is an industry which the fighting forces of the Crown, if consulted on the subject, would say was necessary to keep their paraphernalia of war in good order so that it would be available if war came again. If war happened again, as the hon. and gallant Member (Colonel Wedgwood Benn) suggested, if all these trades now protected proved of no value in fighting that war, or rendered obsolete things which were used in the past war, then my answer to him is that we should have to cancel the present articles mentioned in the Resolutions and introduce such articles which might be found necessary to take their place.
I have the honour of representing a constituency which is the home of the gas-mantle trade. I would ask my hon. Friend (Sir P. Lloyd-Greame) to give some indication when he comes to speak whether the inclusion of this industry as a key industry is not an electioneering pledge. Was it not conveyed, I do not say by him, but by Sir Auckland Geddes, who was then President of the Board of Trade, that this industry would be included? Was it not intended that the gas-mantle industry should form part and parcel of the group of key industries in connection with the use of thorium? I was asked to put this question across the Floor of the House, and I would ask my hon. and gallant Friend to answer it so that I may inform my constituents. We had some 4,000 people depending on this industry in Central Wandsworth. It was the home of a happy industry. They worked comparatively long hours, from morning till night. There was no ca'canny about their methods. They were mostly women. They had developed a very high pitch of efficiency, but, over above that, good will and harmony prevailed throughout. I went into one lot of works after another. Employer and employed were on most excellent terms, and a happier crowd it was never my pleasure to see. What do we see to-day? A place virtually shut down. I have received piles of postcards from workers begging me to try and see that they are allowed to continue to earn their living. I have received deputations, not deputations prompted by the employers, but deputations from the workers which asked, "Cannot you help us to keep our work and trade," and this is the appeal which I make to the Government. I should not ask that the trade be included among the key industries if I did not think that this was part and parcel of a key industry. One hears the narrow-minded argument, "Why should we be made to pay more for our gas mantles?" I answer, if you once shut down the gas-mantle factories in this country you will pay more for gas mantles, because there will be no competition and the German ring will put up prices.
I have seen protests from the Croydon Gas Company, the Gas Light and Coke Company, and the people associated with them, against the inclusion of gas mantles. I press upon the Government the fact that those parties are not seeking the welfare of the people. They are neither Free Trade nor Tariff Reform, but simply vested interests. They would, if they succeeded, keep out of employment 4,000 men and women, so that a little gas-mantle factory which they own in Belgium, which was Bosche before the War, and which they control to-day, might continue. I do not know who is the hon. Member for Croydon, but I intend to talk to him about it. The electors of Croydon shall know that the Croydon Gas Works were instrumental in keeping 4,000 women and children out of work and in want of food in a neighbouring London constituency. I make my appeal to the Government, not because I am seeking votes, but on behalf of those who in the past were a happy and contented group of manufacturers and workers in the gas-mantle industry. On behalf of genuine British workers, I ask that if it is at all possible the gas-mantle industry should be included in the Bill.
I am glad to have the opportunity of speaking, because there is no issue which has a more direct bearing than this upon the life and well-being of the industrial North, where I have spent practically all my life. To the great textile industries and those dependent upon them the questions raised to-day mean everything and all in all. I was a Tariff Reformer before the War, but I must admit that I approach the Resolutions before the House with a certain amount of doubt and difficulty, because since the War we have had two currents of public opinion in Lancashire, and it is impossible to ignore them. First of all there is an almost universal feeling among business men that a limit should be placed upon State interference and control. There is a very general desire to see the freest possible interchange of goods between this country and the countries overseas. Secondly, there is a very general and I think a well grounded opinion that at the present time if you wish to be a good Englishman you have also to be a good European. If we are to see a revival of our overseas markets, and particularly of the Continental demand for British goods, we must cultivate the freest possible interchange of commodities between us and those markets. Although those are undoubtedly principles which one cannot neglect in the discussion of any economic question, yet at the same time I feel, and I believe all the Lancashire Unionist Members feel, able and anxious to support the Government with regard to the great bulk of the proposals now before the House. That is particularly the case with regard to the first Resolution. If we were living in ordinary times, and if key industries affected simply ordinary times, if the principles which had to be brought into play on the question were exclusively economic principles, our position would be very different; but it is quite clear on the facts of the case that the provisions with regard to key industries are not designed for normal times, nor to meet ordinary economic factors in our industrial life. They are meant to meet peculiarly abnormal circumstances.
There is an old maxim that in the midst of arms the laws are silent. That is true with regard to laws in the ordinary sense. It is also true with regard to economic laws. If, owing to the great difficulties in which a nation finds itself, there must be a general suspension of the normal life of the country, there must also be a suspension of the statutes which normally guide our existence and also of those economic laws which under normal circumstances one would be only too glad to observe. Salus populi suprema lex —the safety of the people is the highest law. It is certain that scientific methods of warfare will become more and more potent factors as the world goes on, and if by encouraging these key industries to flourish in our midst we shall mitigate our anxieties in the next great struggle and lessen the duration of the conflict, we are undoubtedly contributing to the welfare of the people. Defence is of much more importance than opulence. There is not a section of the community which is not most anxious to protect key industries, if by them are meant those industries which are vital to the State in a time of great national emergency.
As far as the details of the first Resolution are concerned, if the hon. Members who are opposing it can satisfy the Committee that any of these are not properly key industries or that the articles are raw material, of course different considerations will apply. If they are not raw material and are really vital to our military and naval security it seems to me that the natural instinct of a patriotic man is to support Resolutions which give us a certain measure of protection. A very large body of people in Lancashire find considerable solace in certain points with regard to the first Resolution. First, the duty of 33⅓ is certainly not enough to subsidise gross inefficiency in the present rate of exchange. It is not going to exclude foreign exports altogether and it is not going to expose the consumer entirely to the mercy of the manufacturer at home. Secondly, we may congratulate ourselves on the fact that the definition of the articles to be described as key industries is in the hands of Parliament and not in the hands of the officials of the Board of Trade. That will be a great satisfaction to those who believe more in the representatives of the people than in the officials of Government Departments. Thirdly, I think it is a great relief to find that all the articles which are going to be treated as key products are set out on the paper for anybody to read, and there is apparently no intention of adding to that list by reason of the representations of delegations such as have been referred to, who have tried to go behind the back of Parliament to influence the action of Government in that respect. The only point I should like to make as regards the first Resolution is a comparatively small one. Very grave complaints have been made by those who have to purchase scientific glassware and laboratory porcelain and articles of that sort for educational purposes. Strong representations have been made to me that people have been obliged to buy the foreign product because the English makers are too careless with regard to the quality of the goods which they produce. A workman wants the best tools, and the reasons why so much of this trade has gone overseas are not confined to the fact that industries have been subsidised and protected by foreign Governments. They are also to be found in the fact that industry and skill have been more highly developed there. It might not be amiss if a certain proportion of this 33⅓ per cent. were devoted to research and education during the period for which this protection is to remain, so that at the end of that time the quality and the supply of these goods on the English market would be as adequate and as satisfactory as those of foreign products have been in the past.
Regarding the second Resolution about dumping, there also I am glad personally to support the Government, not merely because I am one of those who pledged myself to do something to put an end to dumping at the last Election, but also because I believe it is not consonant with the sentiment of the country at this time—if I may say so, it offends against the sense of social decency—that by reason of purely accidental advantages which foreign manufacturers have got owing to the depreciated rate of exchange, they are to be able to flood England with goods at such prices as British labour, however industrious or skilful, cannot possibly compete with. We are very much in the position of having to compete with highly skilled European labour upon the same basis as if it were Oriental labour, because, owing to the present disparity in the exchanges, the wages paid there are so infinitely lower than the wages paid in England that it is impossible for any country which wishes to maintain a civilised standard of comfort amongst the workers to compete against the difference. At the same time, I should like, with all respect, to ask what the Government proposes to do to meet the criticisms which have been directed against the Resolution under certain specified heads. First, I should like to know more precisely how Parliament is going to control the exercise of the very important functions which this Resolution vests in the Board of Trade. We do not wish that the entire selection and discrimination as to these goods which are supposed to be dumped here shall be left to irresponsible officials, and I should like to know exactly how the control of the House of. Commons over that function is going to work out. Secondly, I should like to point out that a great deal of feeling has been aroused by the fear that the position of the manufacturer in England will be governed by a great sense of uncertainty. People engaged in affected trades say they will not know how they stand from month to month, and they would very often rather have absolute Free Trade than to feel that for one month or for six months they might have Free Trade and for the next six months have a 33⅓ per cent. or conceivably even a 66⅔ per cent duty. They have to manufacture a good deal ahead in order to meet prospective markets, and it would reassure these manufacturers if my right hon. Friend could say something with a view to giving as large a measure of certainty as possible to persons engaged in trades likely to be affected by the exercise of this jurisdiction on the part of the Board of Trade.
Thirdly, there is a general feeling in Lancashire of hope that the Government will see its way to appoint a Council on which consumers will be very largely represented as well as manufacturers. I join issue with the right hon. Member for Norwich (Mr. G. H. Roberts) when he says that the selection of these articles and the duty of advising the Board of Trade with regard to the selection should be vested in—of all bodies under Heaven—the General Industrial Councils engaged in particular trades. I think that is the very last thing in the world any reasonable man wants to see. It would be very reassuring if my hon. Friend could say something with regard to the composition of the Council which is to advise the Board of Trade on these important matters, and if he could say that the interests of the consumers in the North, those who naturally are brought up to wish to buy in the cheapest market, are being very carefully regarded. Fourthly, I wonder if the Government has any intention of imposing a time limit on the jurisdiction invested in the Board of Trade or is it intended to be of indefinite duration? If there is a time limit so that the country will realise that this legislation is rather experimental in character, it will reassure a good many of the doubters as to the expediency of this particular measure.
If I may say something further on the question of foreign exchanges, that is a point upon which I feel the most doubt and difficulty. It is often said that the rate of exchange between one country and another is in the nature of a barometer. When it is pouring with rain and you put up an umbrella over one spot you do nothing to check the rain over the rest of the area which is affected. The analogy is this, that by protecting a particular trade you are certainly doing nothing to rectify the disparity in the rates of exchange.
The real cause of the trouble in foreign exchanges at the present time is the impoverishment of foreign countries, and particularly of certain countries on the Continent. We may be perfectly sure that we are going to do nothing to cure that disparity in exchanges by excluding their imports from this country; all we shall do is to deflect those goods from our market into the world markets, where we have to compete with the manufacturers of all those countries. Germany will go on manufacturing to the fullest possible extent of her productive activity, and no measure of the sort indicated in the third part of these Resolutions is going to affect the productivity of Germany in any degree at all. These goods will find their purchasers, and whether they are in England or in the neutral markets of the world is not really material to our manufacturers, because the competition has got to be faced in any case. If I am correct in my appreciation of the last portion of these Resolutions, this 33⅓ per cent. to meet the disparity in exchanges is not intended to cure that disparity; it is, as I understand from the speeches which have been made from the Government Bench, rather intended to be a sort of preventive against national panic, which would otherwise result from the overwhelming flood of German goods into these islands which will very probably come when the question of reparations has been finally settled between Germany and the Allied Powers; and if it is regarded in that way, it seems to me that a duty of 33⅓ per cent. on a few industries will not create very much damage in the country, and it may have a sobering influence on public opinion, which would otherwise be very much agitated.
There is, however, one precaution that I think ought to be taken, not only with regard to this question of depreciated exchanges, but also with regard to the legislation which is foreshadowed by the Resolutions now before the Committee. The idea has been present in the mind of the public, and has been to some extent fostered this evening by certain speeches which hon. Members have made, that these Resolutions and the Bill to be founded upon them are going to settle the question of the prosperity of the English workingman for a long time to come, and that when they pass into law he need have no further anxiety at all. I think it is well that a warning should be given against any idea that there is any such short cut to economic prosperity in England. It would be a good thing if labour in this country realised that we cannot be prosperous again in England until wages are lower, until people realise that the standard of living has got to come down to at least pre-War level, and that the only way to work out our economic salvation is by hard work for small reward for many years to come. I am going to support these Resolutions, but I certainly do not do so in any way under the impression that by adopting these schemes which the Government has put before the country we are going to make this country a land flowing with milk and honey. It would be a most disastrous thing for the public to get that impression. We are in for a very hard time indeed. Capital will have to be content with lower profits, the workers will have to be content with lower wages, and the whole nation will have to realise that it cannot gain by any action of the Government anything like that buoyant prosperity to which we all aspired before and during the Great War. At the same time, I quite recognise that the Resolutions do represent a very sincere and honest attempt of the Government to deal with the grave questions which have been daunting so many sections of the people during the last few months, and on these grounds I shall be glad to give them support.
I have followed the Debate with a good deal of attention, and I regret that my hon. Friend the Member for Central Wandsworth (Sir J. Norton-Griffiths) is not present, because he raised a matter of considerable importance to the people of Wandsworth. They have a factory there in which they manufacture gas mantles, and their grievance is that their supply of raw material is to be protected and is to become a key industry, whilst they, the manufacturers of the finished product, are to be exposed to competition. They complain that while the foreigner may not send in the material from which the mantle is made, he is in a position to send the mantle, and naturally in Wandsworth they are very dissatisfied. I have a certain amount of sympathy with my hon. Friend who represents that district, and I think most of us are suffering in our constituencies from pretty much the same kind of trouble. We have unemployment, and I have no doubt that if the manufacturers who carry on business in our respective constituencies get protection, it will mean a certain amount of employment more than at the present time, but what interested me a great deal more was the speech of the Minister of Health, who alluded to the fact that there were certain important trades where there is a great amount of unemployment. I think he mentioned the steel trade, and in despair he stated that one of the reasons for producing these Resolutions is that we must do something.
He reminded me very much of the days of 1905–6, and I would commend to him what happened at that period, when the late Mr. Joseph Chamberlain, who at that time was Colonial Secretary, was very anxious that something should be done to consolidate the British Empire, and thought the right way to do it would be by having a kind of Imperial Pre- ference. He, however, found it very difficult to carry that scheme without a tax on food, upon which he was rather reluctant to embark. There was no other course open to him in the end but to become a full-blown tariff reformer, and in order to advance his cause he found it necessary to find what industries in the country at that time were suffering from lack of employment. I recall very vividily how he went to Swansea, and it was at the period when the American Government had just put a very heavy tariff on to tinplates. The result of that action was a considerable amount of unemployment, and the late Colonial Secretary dwelt upon that matter very fully in a speech at Swansea. It was perfectly true that on account of this tariff there was a large amount of unemployment, but what followed was very illuminating. The tinplate producers at Swansea had to find a market somewhere else, and they set about doing it, with the result that these tinplates found their way to the Straits Settlements, where a new industry was founded for canned goods, so that, from the point of view of the Empire, not only did they use our tinplates, but we imported back the canned goods which formerly came from America, and America, on account of the new tariff which she had put on, found that tinplates cost her more, with the result that the Colonial Secretary achieved more than he thought when he set out on his campaign. Trade after trade was brought to our notice at that period. I think glass was going, and I think in Manchester cotton goods would be affected, but we got through all those troublesome times, although unemployment was rampant, as it exists to-day, and that is the reason why it is supposed to be necessary for these Resolutions to be produced.
The conditions which prevailed in 1904 and 1905, I suggest, are not unlike those prevailing to-day. There is a great wave of unemployment, not alone in this country, but in all countries. Whether the exchange is low or whether the exchange is high, unemployment prevails, and therefore it does not seem to me that the exchanges alone would meet the needs of the conditions at the present time, and, even if the unemployment were caused by the conditions of the present exchange, is this Bill likely to remedy or to improve the conditions? My own belief is that it would have a quite contrary effect, and I think I can show in one or two ways how that is likely to be brought about. Let us take the case of India, and see how this would apply to India. The rupee in India was worth something like 2s. 9d. or 2s. 10d. a year ago. It has now dropped to something like 1s. 3d. The effect will be that if India wants, as it doubtless will, in order to remedy the exchanges, to do more business with this country, it will be barred out altogether from doing any trade because of the exchanges. I do not know whether these conditions are to apply to our own Dominions or possessions. I think it is a matter of some importance, and I hope the representative of the Board of Trade, in reply, will give us some information on that very important point.
9.0 P.M.
One of the points made by the President of the Board of Trade was the necessity of having confidence, and there is nothing more essential for the commerce of this country than to have some certainty as to what is going to be the position six months or, even, as far as 12 months, ahead. But what will be the position under these exchanges? One knows how these exchanges vary, and how rapidly they fall. About this time last year in Germany the exchange was something like 400 marks to the pound, and in a few days it dropped to 150. How can the manufacturer with any confidence enter into any bargains or contracts if he does not know what the Government will do in the matter of putting on this duty? Will they put it on the rate which prevails on the day the goods were bought, or will they put it on the rate of the day when the goods arrived? One would be grateful to the Government if they would tell us what is to be the procedure in fixing this 33⅓ per cent., or whatever the rate is to be. There is one other matter on which this question of exchange and what is known as dumping will have effect, and that is the overseas trade which we carry on. It will interest Members to know that the total amount of foreign goods imported into this country during the last year for which I have figures, namely, March, 1919, to March, 1920, represents something over £1,000,000,000 in value. We re-exported something like a quarter of that—£220,000,000, odd. Of that £1,000,000,000 which came in, a very large amount represented food and a good deal raw material. Of the raw material, it is interesting to know that quite a substantial part was what is known as finished goods, which are really materials for our manufacturers. I accompanied a deputation last week to the Board of Trade of people who were very much concerned over the difficulties they were experiencing in obtaining supplies under what is known as the German Reparations. A number in the boot trade wanted a certain kind of fancy leather, without which, they maintained, they could not produce the best boots required. That is one of the commodities so essential to the industry of Northampton, and there were four or five other trades also represented, all clamouring for facilities to obtain what is their raw material. If these proposals are carried into law, it will mean that all these manufacturers will suffer a disadvantage of 33⅓ per cent. on their raw material. If they suffer disadvantages, how can we hope to get back to the position of 1913, which, I think, was our boom year? In that year we managed from this country to despatch the largest volume of British-made goods of any kind in our history. If that was the condition in 1913, it is certainly desirable that we should get back to that period, and the Government could help in that respect. But how they can help by putting obstacles in the way, especially of our manufacturers, who need materials from which they can produce the best quality goods at the lowest market price, I fail to see. That they are inflicting a very considerable loss to the community, and at the same time adding to the unemployment, I think there can be no question.
With regard to the suggestion that certain industries have been very much affected by dumping and by the collapse of the exchanges, I listened very carefully to the speech of the President of the Board of Trade, and I listened in vain for any definite statement of any pre-War industry that is suffering at the present time from the effect of dumping or the collapsed exchanges. I have made every inquiry in the City of London, and I myself am engaged in a manufacturing business, and we expect very stiff competition from European countries, and I am, therefore, not without some experience; and I have sought, and sought in vain up till now, for the evidence for which I am asking. I shall be very glad if, in the course of this Debate, some information can be supplied to the House to show what pre-War industry is suffering from the effects of dumping, and the effect of these collapsed exchanges.
Does the hon. Gentleman know anything about the glove business?
Not very much, and I will be interested to know whether that or any other business which in pre-War times was prosperous, is suffering to-day in the way stated.
What about shipbuilding?
I shall be glad to know about that. I should have thought that what it was suffering from were circumstances other than dumping and collapsed exchanges. If the Government will help us to get rid of duties, tariffs, regulations and such like, they will be doing more for the trade of the country than they will by any process of the kind we are now considering. I agree with the remarks made by the President of the Board of Trade that we in this country are equal in calibre and brains and talent to any other body of men which I know. I join with him in his desire to assist in every possible way to improve knowledge and possibilities. I would go a long way myself, even more than in the past—and we have done a great deal in the last few years to give financial assistance. I would give even more than we are giving in the way of grants for scientific and industrial research. We are spending, I think, something like a million per annum in this direction. I would vote very cheerfully for that sum being doubled or even trebled, and if in the time to come the Board of Trade consider there is any necessity to do more in that direction, I am sure this House will only be too willing to come to its aid. But I would urge some of my hon. Friends who have spoken to-day and who have taken a rather narrow and limited view of our trade possibilities to relieve their minds of any anxiety on the subject. We have done great things in the past. We attained a great figure, as I have said, in 1913. That, in my judgment, is not the limit of our capacity. It is but the simple stepping-stone to higher things, and if we only cease from running our- selves down and waken up, there will be nothing in the future to prevent us not only regaining the prosperity which prevailed in pre-war days, but adding to and improving the trade of the country and the prosperity of the people.
I should like to dissociate myself from the remarks made by the hon. Member for Moss Side (Lieut.-Colonel Hurst) when speaking as a Lancashire Member he referred to the necessity of pulling down the wages below the pre-War standard. I am quite certain that in holding a view of that description he does not in any way represent the feeling of the manufacturers and industrialists of Lancashire. We recognise that the abnormally high wages will have to be reduced, but we certainly have no desire, and do not expect it will be necessary, to bring wages down even to the pre-War level. I am quite sure that there will be a strong effort made by those who are the leaders of industry in Lancashire to prevent that, not only in their own interests, but in the interests of the workpeople.
We were asked this afternoon by the President of the Board of Trade to make suggestions for the improvement of the Resolutions. One suggestion I should like to make is that we should have more definite information as to how the Regulations suggested are to be carried out. There is no question but that amongst those who are in trade bureaucracy is in bad odour. We are all anxious that whatever Governmental and Parliamentary interference there is, that whatever taxes are to be imposed should be within the control of Parliament. The Resolutions as they now stand are too indefinite and give unnecessary power to the Board of Trade. If we can have this Board of Trade Committee, one which is specially constituted and which will hold its inquiries in public, which will give the right to the trade which is affected by the imposition of a tariff to object to that tariff at the same time that another trade claims it, so that the public may have sufficient information on both sides of the question, to see that in trying to prevent unemployment in one particular industry we are not creating greater unemployment in some other industry, if, I say, the Board of Trade Committee can be so publicly constituted that when it gives a decision, that that decision is to be laid upon the table of this House, and that the tariff imposed shall only have effect after it has been definitely adopted by a definite Resolution of Parliament, then I think we shall do much to take away from those who are opposed to these Resolutions much of the opposition they now have.
The last speaker spoke of how willingly he would vote for money, £1,000,000 or more, to be devoted to education and similar objects to help industry. We have had education. We have had our science classes. What was the result up to the War? Those of us interested in higher education who tried to follow what happened to the students who had passed their courses and gone to the universities found that, instead of their having opportunities and proper employment for their talents in this country, they had to go abroad to Germany or America to get that proper scientific research work for which their capacity fitted them. If these men whom we trained remained at home, the employment they found here was such that, in the main, they were merely analytical chemists who did not require to use to the full the brains and talent they could devote to their work If we are going to improve education, and to spend millions in producing our scientists, it is incumbent we should also do something to arrange that the industries will keep these scientists well employed in this country. We hear that the imposition of these duties will make no difference to Continental trade. If we do not allow these cheaper goods to come here, it is said, the Continent will send them to other parts of the world, and we shall have competition there. He would be a foolish man who attempted to deny that.
Is it not better if we are to have this competition that it should be in the distant markets of the world rather than on our own doorstep, and in our own homes? The factories are manufacturing for export trade and also for the home trade, and it is the surplus they send abroad. I happen to be engaged as a manufacturer, and I know that we have our home trade and our export trade. We have goods at the present moment lyiug on the continent of Europe which have been lying there for twelve months which we are unable to sell. We have made similar goods for consumption here and drawn our money for them and found employment. There is no comparison between the home trade and the export trade. The point I was making was that it would be foolish for anyone to deny that the Continent would export surplus produce. With her rate of exchange she is bound to have great advantages over us. What is happening is that as manufacturers we have no chance on the Continent until the productive capacity of Europe has been exhausted, and we then supply any surplus needs.
I was interested last year in trying to get some business in Lithuania. We were making goods suitable for that particular market which had previously gone there. We did not get the orders, and we did not secure the trade. I followed the matter up, and I looked to the official returns of the trade in Lithuania in the half-year from July to December, and although we had exactly the same opportunities of delivering our goods as the Germans, I found that they had sent into that country 84,000,000 marks' worth of manufactured goods during that six months, and the manufacturers of the United Kingdom had sent in 300,000 marks. Why was it? Because of the difference in the exchange. The Lithuania mark and the German mark exchange at the same rate, and they had to give us a difference of 12 to one. So long as those conditions operate it is foolish for hon. Members to suggest that what we are waiting for, and what we ought to have and can have, is to be achieved if you will only allow freedom of trade to ensure a great European revival. We must not look to Europe for our revival of trade.
We hear hon. Members speak about freedom of trade, but what happens now? We want to send goods to Germany. If you try to send your manufactured goods there you cannot send a yard of cloth into Germany without a permit or a licence, and you cannot get that licence if there is any possibility whatever of the Germans being able to make similar goods. Then you will ask us to allow their goods to come in here free with this unfair advantage of exchange, and you expect it to be greeted as a political problem and to be dealt with like the old political problems of the pre-War period. This is not a question for the capitalists. It is not so much a question for the manufacturer, but it is a question for the workers. We can as cotton manufacturers in Lancashire close our mills, send our raw material to Germany, and have it manufactured into cloth in Germany and brought back to Lancashire, and in that way we could get labour for 16s. in Germany that we have to pay £4 for in Lancashire.
The weaver in Germany is getting to-day what on pre-War rates would be reckoned as a magnificent wage, for he is getting 200 marks per week, equal to £10 in the old days, and we are paying £4 per week. Notice the difference. The German weaver, based on a pre-War value, is getting £10 against our £4, but the actual result is that we can buy that £10 worth for 16s. 8d. to-day. The opponents of the Resolutions say this is legitimate trading and is to be encouraged. If we as British manufacturers adopted it we should cease to employ a few hundred workpeople, we should send our materials to Germany, and bring them back woven into cloth to our own warehouses and then ask those hundreds of workpeople to look into our warehouses and say, "This is the blessing of collapsed exchanges. This is what certain political parties have said is a desirable thing to do, and you should rejoice that we as capitalists can make more money while you are starving, and while you are getting £1 a week as a dole." This is what your Free Trade friends and the Labour party say we should rejoice in.
Does the hon. Member assert that the German weaver uses the same number of looms to get the same production?
You get in certain cloths the same production in Germany, and the looms running at a greater speed. The hon. Member for Preston (Mr. T. Shaw) knows something about this subject. You have in Germany the looms running up to 250 picks per minute. Whatever the cost is in Germany we can get goods cheaper from Germany by this low exchange value of labour than by making the same goods in this country, and I want to ask hon. Members is that a fair position to put the workers in. Is it a fair position to put industrialists generally in, that they should be submitted to an unrestricted damaging trade of this character. You say that it is immaterial whether the goods come here or go to some other part of the world, but if by the process you were to put out of employment one-half of your population, if that were possible—fortunately it is not, because the productive capacity of these other countries is not so great—but assume for a moment that it was possible to put out of employment one half of your population. You would then have the rest of the manufacturers carrying not only the burden which they had previously carried, but they would have to carry the taxation which had previously been paid by those who were carrying on the industry. You would have, in addition, that those who were still employed would have to be paying doles to help those out of employment. Therefore, instead of having made it possible to produce your goods more cheaply, you would have increased the cost of production of those things which you would have to send to the rest of the world. On every ground it is desirable that your home trade should be given all the encouragement it possibly can get. By a good and successful home trade you would have a greater chance and a better prospect of obtaining a successful export trade.
I have heard a good deal of the Debate to-day, and as in principle I am a Free Trader I feel somewhat unhappy about my position in regard to the matters under discussion. I agree with the Government that something ought to be done to meet what is altogether an abnormal situation. I agree also that it is no use trying to apply ordinary principles applicable under normal conditions to a condition of things such as exists to-day, which is altogether abnormal and which may not last long. On the whole, I am inclined to vote for the Resolutions, but I hope that they are, at all events, sufficiently wide to cover a Bill or Bills of much smaller dimensions than might be covered by the Resolutions. I say that because when the time comes to deal with the Bill or Bills I should like to differentiate as between one and the other of the items embodied in the Resolutions. I will take them in turn. There is first the Resolution in regard to key industries. I thoroughly agree that we cannot leave ourselves again to take the same risks that we ran at the beginning of the War in 1914. I need not go back over those risks. Fortunately, the ingenuity of our people, and the scientific knowledge of many men, including the late Lord Moulton and others, was sufficient to get over the difficulties, but it is impossible to say how many lives were lost as a result of the difficulties we were then in, lives that might have been saved to the nation and to the men's wives and families. Therefore I heartily agree in principle that so far as it is necessary to prevent us taking the same risks again, I am in favour of the inclusion in a list of articles that, if necessary, must be protected in this country, so that we shall be able in time of war to make all that is necessary for the successful waging of that war. I am a little alarmed, however, about these particular items, and my fears are by no means allayed by the speech of the hon. and gallant Gentleman who represents Central Wandsworth (Sir J. Norton-Griffiths). He put up a very plaintive appeal, shall I say, for 4,000 people who had been engaged in the manufacture of gas mantles, and a large number of whom were now unemployed because gas mantles could not stand competition from other countries. That has no relation to war risks, and exactly the same argument that has been put up on behalf of gas mantles could be put up, at all events with perhaps equal weight, on behalf of a great many other industries in the country. Gas mantle making is not an industry which yields a particularly high wage.
It comes within the four definitions.
It does not come within the definition of an article necessary for the successful prosecution of the War. I am somewhat alarmed in voting for a Resolution which might open the way to a series of similar appeals which might be put up for other industries of importance, more healthy, and yielding a greater standard of life than this particular one mentioned by the hon. and gallant Gentleman. After all, how do we get gas mantles? From other countries. Supposing that the gas mantle industry in Central Wandsworth is closed down, we must get them from somewhere. There is only one way by which we can get them. We must pay for them by the production of other goods, and in the production of those other goods it is quite possible that some of those people who have been displaced in Central Wands- worth may find employment, while it is quite certain that other people will be employed on better conditions. I shall vote for the first Resolution with some misgiving and some fear that in passing it we may open the door to a great many plausible appeals for the inclusion of certain articles, the protection of which will do nothing to enable us successfully to prosecute a war.
On the second Resolution I more heartily and unreservedly give my support, and I do it quite consistently with Free Trade principles. There is nothing in the shape of freedom in getting dumped into our country a lot of goods which may or may not remain under cheap conditions, but which are dumped over here for ulterior purposes, and which, after being dumped here for ulterior purposes for some time, may be withdrawn or the price put up higher than we can purchase them ourselves. I heard some complaint made as to the definition of dumping. I looked at it just now. I cannot see what is the matter with it. Dumping is defined, for the purposes of this Resolution, as selling "at prices below the cost of production thereof." In defining the cost of production, the Resolution says:
Will the right hon. Gentleman kindly say what he means by "ulterior purposes"?
It is quite evident what I mean. They want to collar our market. That is the ulterior purpose; that is the head and front of the whole system of dumping. They want to put an article in here for 2s. 6d. which costs them 3s. to produce, with the view that, once having downed the production in this country, they will be able to charge 3s. 6d. In regard to collapsed exchanges I am doubtful about a remedy, though I can see the disease. I will take my own trade, as I happen to know something about the conditions. Before the War an engineer in Germany was paid at the rate of about a mark an hour. To-day the pay of an engineer in Germany is about six marks an hour; that is to say, in internal currency, the engineer's pay has increased six times. Other things being equal, that would have told against the Germans; but other things are externally not equal. The mark today is worth about 1d.
Not in Germany. That is not the internal purchasing power in Germany
In internal purchasing power it has depreciated to one-sixth, but in external value it is worth 1d., and therefore the German exporter has an advantage of two to one. That is the disease. How is it to be remedied? I want it remedied. Putting on a duty of 33⅓ per cent. will not remedy it, because the price at which the Germans are now selling goods in this country is not to be reckoned in terms of a 33⅓ per cent. tax; it is about one-half or one-third of the prices charged in this country. Therefore, while I support the third part of the Resolution, I hope that further discussion on the Bill will disclose some ways and means by which we can apply a better remedy so far as the collapsed exchanges are concerned. For my part, I think that the best of all remedies would be to compel Germany to face her responsibilities. After all, the external depreciation of the mark is due in large part to the fact that Germany has not yet faced her responsibilities, and that, therefore, her credit throughout the world is low. Therefore, I hope that something will be done, either by forcing Germany to accept the proposals which she now has under consideration, or by some other means, to get her to face her responsibilities, so that the mark may rise externally. In making these few rambling remarks I merely desired to say that I am in favour of the Resolutions. I hope that the Bill or Bills will be well within the Resolutions, and that the Government will stand like flint against any such appeal as that made by the hon. and gallant Member (Sir J. Norton-Griffiths).
The right hon. Gentleman (Mr. Barnes) did himself an injustice when he referred to his speech as rambling remarks. As a matter of fact they were very direct. They were to the effect that the right hon. Gentleman, a lifelong Free Trader, found himself able to support the first, second, and third parts of these Resolutions, so that he came to the very direct conclusion that it is well within the competence of a Free Trader to support these Resolutions. I belong, perhaps, to an antediluvian school of Free Traders—a school which has had its meed, I will not say of praise, but of reference to-day. Believing myself to be a Free Trader, and believing that I understand what Free Trade means, I personally find myself unable to do anything but oppose these Resolutions. Appeals have been made that the Committee should consider them apart from any reference to the old controversies of Free Trade versus Protection, and I noticed that those appeals came particularly from those who have during the whole of their lives professed Free Trade principles. They now find themselves able to support Protectionist conclusions. The hon. Member for Camlachie (Sir H. Mackinder) made a courteous reference to Adam Smith, but he gave the Committee a reminder that Adam Smith was dead, and I assume that Adam Smith, and all that school of political economy with which his name is associated, ought, in the opinion of those who support these Resolutions, to be relegated to a misty and historic past [HON. MEMBERS: "No!" and "What did Mond say?"]. I heard some of the speech of the Minister of Health, and I gathered that in supporting these Resolutions he considered himself to be as good a Free Trader as ever he was. That makes me ask how good a Free Trader he ever was Those of us who remember the long-drawn-out controversies from 1903 to the time of the General Election of 1906, and from that period until after the second Election of 1910, and who remember the part played by the right hon. Gentleman and the conclusion at which he then arrived on the very matters which we are now discussing, are amazed that he should say that he is still a Free Trader. [An HON. MEMBER: "There has been a war."] I am obliged to the hon. Member for that latest piece of information of startling originality and great import. I am not considering this from any party point of view. [HON. MEMBERS: "Oh!"] It is all very well. I am going to ask members of the Conservative party, who are the traditional representatives of the capitalist system—[HON. MEMBERS: "No!"]—and others; they are catholic-minded.
They have no money; the Liberals have it all.
We are all enjoying the industrial boom. Do they not see, as they reflect upon the general industrial conditions to-day, that this state of things was inevitable from the moment the Government began to control and interfere with trade in this country? There never was a Government yet that was capable of controlling the trade of a country. This Government has hurt every industry it has touched—it has hurt some industries almost to extinction. It is interfering and controlling until to-day business men are in despair; and, when they read these proposals, they, as I have said once before, do not know whether to laugh or to cry. The opinion of two or three eminent bankers has been quoted to-day as though it were of no value. I say that the opinion of bankers, in a country like this, is the most direct, the most vital, the most important, and the most urgent guide that we can use. Let me give one illustration. In this country, before the War, we did a great entrepôt trade. That is all gone. Such trade inevitably goes as soon as you put up a tariff. Here is an ad valorem tariff of 33⅔ per cent.; where is your entrepôt trade—where is your merchanting in the City of London? Where is your shipping? Where is the attraction that this splendidly-conducted and organised industrial country, England, had for all the world to send its business here, because our ports were open, our shipping was the cheapest, our merchants the most reliable, and our banking and currency the soundest? It is all gone. It is all very well for hon. Members to think that we Free Traders are talking about something which has had a long life, and which is now tired and worn out and useless, and is tottering to the grave to be buried, because, as the hon. Member says, there has been a War. We never could have conducted that War—we never should have had the resources for that War, or the energy to be the keystone of that arch over which the whole burden of the war was carried, had it not been for the magnificent training of our commercial men in the business of the world—because we were a Free Trade nation. Why was England in 1914 in a position to do what she did? Because she was a Free Trade country. [An HON. MEMBER" There were millions on the verge of starvation!"] To-day there are 4,000,000 unemployed.
Does the hon. Member really mean to stand up and say that Free Trade won the War?
I never said that Free Trade won the War. In fact, in view of things that are said as to who won the War, I should like to say that the War was won by the bravery of the common soldier and the common sailor, and not by the wisdom of our statesmen, particularly those to whom all the credit is given. I never said that Free Trade won the War, or any many or any single system or any institution. I said that when the War came, because of Free Trade we were in a position to do that which if we had not been a Free Trade country we should not have been in a position to do, and that we made a contribution which we could not have made if we had not been a Free Trade country.
The chief difficulty before the Committee to-day is to decide how this question of trade is to be viewed. The right hon. Gentleman the Member for the Gorbals Division (Mr. G. Barnes) began on the question of defence. Let us face that. The President of the Board of Trade said, as I understood him, with some of these key industries that relate to certain businesses whose products will be essential when the next war comes, which apparently we are all being cheerfully prepared for and forewarned of. [An HON. MEMBER: "I hope we shall be."] I hope it will not come. I am really hoping that peace is coming to the world. If it is not, all this talk about business is but the chattering of sparrows. Hon. Members who are not connected with business may say I am the most chirpy of the sparrows, and my remarks are of no value. The first part of the speech of the President of the Board of Trade was all that we on this side could have desired. He reminded me of the Scotch clergyman who said, "We are confronted by a great problem. Let us look it in the face and pass by." Having laid down in the most serious terms the gravity of the present position, the right hon. Gentleman went on to say he hoped some good might arise from these proposals. He did not put it too high. He is exceedingly modest. But this industrial situation is so grave that I ask the Committee to consider the industrial position of England entirely and solely from the business point of view. Do not mix it up with national defence. Do not mix it up with party sentiment. Do not mix it up with technical education. Consider the industrial position of England to-day from the point of view as it is presented by an examination of the cold hard facts.
When the right hon. Gentleman the Member for the Gorbals Division said, "Consider this question from the point of view of defence," I was reminded of the statement of the President of the Board of Trade that there are to be some generals or some representatives of the War Office who will be in touch with commercial organisations upon whose output the War Office will depend in time of war. It seems to me to be very much better that the Government should say to this country, and I believe it would be supported by every Member of the House, "We will not be without fundamentally vital products made in our own country, in our own factories, for the waging of war, should war come again, and therefore "we will subsidise, we will make grants, but we will see that they are produced at the cost of the ratepayer and the taxpayer whom we are defending. We will see to it that they are produced as a firm charge upon the Exchequer." Let us face that. Then every Member of the House who is a Britisher will support the Government in saying we must not be caught again in case of a great war without things that are essential to wage war. But what are they doing? This is a question of technical efficiency, and technical efficiency is not promoted by tariffs. What do you want? Technical efficiency. Then look the whole question in the face. Consider what it will cost you. Lay your plans, look ahead and work. If it is tariffs, you must include within your tariff wall parts of the business relating to these things which are vital for defence, which means that high prices will be maintained here under a Protective system for the benefit of the manufacturer, and your whole case for defence has gone because it has become a sordid trade grab on the part of a specially favoured industry to see what advantage it can get for itself at the expense of the community.
When you talk about technical efficiency, we in this country will not be in the great struggle for the markets of the world the great people we ought to be, or occupy the position which ought to be ours, until we have elevated to a higher status the ranks of professors and technical teachers. They are underpaid Their future is without hope. Money is grudged to them, and we are without that class which is being trained through every generation in Germany, which produces senior professors and junior professors and what we should call small schoolmasters, each of whom has money found for him by the State in order to develop these highly technical industries. It has been said by a German manufacturer that one large German firm boasts of her scientific capabilities to-day that they are justified if they engage 100 chemists for 100 years. The German dye industry was not built up as we tried to build it up in this country by taking hold of two or three derelict industries, badly managed, inefficiently equipped, buying them up at the war profit price when we have prevented the importation of foreign dyes and artificially inflated the value of the shares, and the Government has subscribed half the capital and lost more than half within the first twelve months. That is not how we are going to begin the dye industry in this country. The dye industry in Germany has cost over £100,000,000. I am all in favour of the Government voting any sums necessary to subsidise this highly technical trade, but I want it to be separated from business, and I want our business institutions in this country to stand upon their own feet. Economic law in trade is as true as the natural law that water finds its level. Governments may seek to interfere or to deflect or to control industry. It cannot be done. The only sound business that is ever done in a country is done by a unit, an individual in that country. It is trade with a foreign country which the foreign country willingly does with him to the advantage of each. All this interference is a reckless, disregarding policy, a refusal to admit that which we have proved throughout the years in which we built up the industrial greatness of this country.
It seems perfectly certain that Protection has come in this country. I deplore it. When the then Chancellor of Exchequer said in his Budget speech in 1919 that it was his proud boast that he was associated and had been successful in making part of the permanent fiscal system of the country the policy for which his father stood, I little realised how true his words were. It is perfectly clear that the situation of the country has been taken advantage of by a Government, the majority of whose supporters believed in Tariff Reform long before the War. Unionists Members did not need the War to teach them that these Resolutions were good. They were proclaiming them years before the War. They proclaim them now. Then why ask us free traders to support them? Do let us have a little political honesty even in these most difficult times.
Why did you desert the side of the House to which you were returned?
I have had that observation addressed to me before, and I may say that I am under no obligation to the Unionist party in my Division. I was opposed by a Protectionist Conservative. I stood as a Liberal Free Trader and, differing from some of the Coalition Liberals, I also said that I would only stand for that one election. That explains my change over. I have given a pledge to my Association, and I will gladly adhere to it, that I will stand next time as an Independent Liberal and Free Trader, which I always have been and I hope I always shall be. My position is a perfectly conscientious one in the matter. These Resolutions go far beyond the anti-dumping pledge. The anti-dumping definition was, "selling at a lower price than in the country of origin." Here we have an ad valorem duty of 33⅓ per cent. Will one single Coalition Liberal say that when he got the coupon he thought it meant that he was in favour of a general imposition of a tariff of 33⅓ per cent? Therefore, I think I ought not to have the taunt thrown at me from the other side. At any rate it is not very distressing. The hon. Member Camlachie (Sir H. Mackinder) came out with a full expression of opinion as to what these Resolutions will lead to, and what he hopes from them. He said that we should put a fence round this country so that we can play the game and the mob will not break in. I do not know who "the mob" is meant to be. I suppose the mob is our foreign competitor. I suppose, in addition, he is our foreign customer. We are so successful to-day in preventing the mob breaking in that most of our people are idle, because we are unable to sell goods to any foreign country, either for reason of the exchanges or for reason of depreciated currency or other difficulties of one sort or another. This policy of putting a fence round the country so that the mob will not break in really means, and I say it with absolute conviction, the putting of a wall round the country and calling it a cemetery. If little England cannot export her goods she must export her men or they will die of hunger. It is a simple problem.
We have already had it promised.
We are getting on that way very nicely. This country cannot support more than 12,000,000 or 13,000,000 people on her own resources. We had one great asset, the export of coal. That asset will come again in some degree, and I should like it to come in the fullest degree; but for the time being we are without it. We are exporting no goods of any value, and the despair of manufacturers to-day is that they have no prospect. They have had bad times before, and they have known severe trade depression before and financial stringency, but they have always said "If we can get through this year, or perhaps if we can tide over next winter, we know that in the spring our markets will be ours again." There is not a manufacturer of high-class, expensive goods to-day who could tell you that any time within the next 12 months he has the slightest prospect of getting any foreign market.
I am one, and I tell you that if I can get coal I can export my goods.
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Tell us that after I sit down, and I shall be glad to know of it. The hon. Member for Camlachie used absolutely Protectionist arguments. He referred to dumping as something carried on for an ulterior purpose. I asked him what was an ulterior purpose, and he said that I ought to know. An ulterior purpose can properly be described as merely a long view in commercial matters. It is all very well to say that your trade competitor's policy has been one with an ulterior purpose, but surely that is a gross misuse of the word "ulterior." There is nothing wrong in a man trying to capture your market. Is not that why we have lived and grown strong? The good thing will be when we are out to capture markets, because we are making better goods under better conditions. Until 1914 the British manufacturer had four advantages. He was able to build his factory cheaper, he was able to equip it cheaper, his raw material was cheaper, and the raw material for the food of his workpeople was cheaper than in any other country in the world. We have lost those advantages. To-day the British manufacturers cannot compete in many foreign markets, and where they would gladly take their goods they have not the means to pay for them. The situation is grave beyond words. Business men in this country have no hope left. They say that from the beginning every interference by the Government with any single industry has been to the detriment of that industry. Take two illustrations. The Chancellor of the Exchequer last year thought he knew better than any business man could have advised him as to the check that was coming in trade, and instead of dropping the Excess Profits Duty he increased it to 60 per cent. Immediately that happened a blow was struck at British industry so that not a single new business was started, and many businesses planning extensions shut them down. That is the Government's idea of interference with trade. It was not purely fiscal, but it was their conception of trade.
How can we assume that the Government is capable of running the trade of this country? They are distinguished gentlemen, but their business is to know nothing of these matters. Their business is to do justice to all of us; not to give privileges, but to do even-handed justice to all sections of the community and not to interfere with trade. Take agriculture. Will anyone say that the agricultural industry is better for the interference of the Board of Agriculture. [An HON. MEMBER: "Yes!"] The President of the Board of Agriculture has one supporter. If he will go throughout the shires of England he will find that there is no one grateful for this Government's agricultural policy. The conduct of the various industries of this country is something outside the responsibilities of the Government and something for which, every time they touch it, they prove themselves incompetent. The only hope for industrial England is that the Government should get clean on one side and leave the business men to carry on their own business. Take the German Reparation (Recovery) Act. That apparently was a high flight of genius. We were not merely going to get a lot of money, but we were to get it in our own currency. What has happened? This Government is such a judge of business, and the consequences of their policy upon business, that in three weeks after the passing of this Act £3,000 only was brought into the Exchequer, of which two-thirds has been reclaimed. That represents £52,000 a year towards the grand reparation, and of this we are only to get 22 per cent. That is the Government's idea of the effect of their interference with trade. Millions of pounds of trade was being done until they obstructed it. There is not a single industry the Government has touched which it has not touched to hurt. This country has no industries that can stand Government interference and prosper. The President of the Board of Trade said that one of the serious things to consider is the want of confidence in the business world, and that the situation would only be improved by a slow process of evolution. I do not want to repeat what is said, but this has been urged, and I think the President of the Board of Trade will agree, that it is only by the restoration of the natural flow of trade throughout all the world that we can ever get back to the industrial prosperity of 1914. If that be true, what is the advantage of this constantly recurring irritation, uncertainty and want of confidence which is being instilled into the mind of every manufacturing and business man of the country, because he never knows what the Government is going to do next, under duress from one quarter or another. With reference to the question of technical training we have a long way to go to make up deficiencies in some of the trades scheduled, and when the Committee stage comes on, and we examine them in detail, I shall hope to refer to the German chemical glass trade. I am sure the President of the Board of Trade is in favour of the extension of our technical education, but the fact is that it is difficult for the President of the Board of Education to obtain all the grants he would like.
I think the hon. Member is going a good deal away from the Resolution.
I understood that we were allowed rather to discuss the subject generally, but, of course, I bow to your ruling. Am I not in order, when referring to the articles scheduled here, to make reference to the German chemical glass trade? I was illustrating the argument of my hon. Friend opposite of the importance of technical education, and I was about to point out that there must be a severe limit to the grants that can be made. At the present moment German chemical glass is one third the price—
I am afraid it is not in order in this Debate to speak of specific grants. It is going too far away from the subject.
I will deal strictly with the point of the German chemical glass. That is one of the things scheduled. At the present time German chemical glass is one-third the price and three times as endurable as ours. What is desirable is, first of all, that we should make this glass as good as the German, or else we are going to be chemically inefficient. That is apart from the price. If we are going to learn some of these trades, it is technical knowledge that is required. This is not something that is going to be grasped all in a moment, and certainly you will learn nothing from Paris. It is technical knowledge that is at fault. Until we have that we cannot produce the quality of glass, never mind what the price is, and I offer that to the Committee as an illustration of many other products which are referred to in these schedules, and which, I think, ought not to be included in the Government's policy, because it will not advance the trade and industry of the country. It has been well asked that we should consider this question not merely from the point of view of Free Trade or Protection, and although the Committee know my views I hope they will believe me when I say that I am not thinking of any abstract issue at all. I am thinking of this motherland of ours, which to-day is in a more serious considition than she has been in, I am told by men who know, for 70 years. It is a very serious matter, and not a thing about which to score party points. I am speaking most earnestly in saying that I do not believe the industries of this country can be reconstructed under any scheme of tariffs. Every tariff that is introduced into England obstructs the trade that she did before the War and prevents the revival of the trade which has been held up during the War. We are creating artificial barriers which our manufacturers cannot surmount, we are perpetuating conditions of unemployment, and—it is a matter of common agreement, and the President said it to-day—no real prosperity will come to any part of the world until peace again comes to the world. No policy is more provocative, no policy will tend more to delay the arrival of peace, than the introduction of a tariff policy into this country.
It is a misfortune that so many speeches have turned on the question of Free Trade and Protection. I had the advantage of being a member of Lord Balfour of Burleigh's Committee which dealt with the question of commercial and industrial policy after the War. The Report of that Committee was the basis of the Government's announcement before the Election as to their trade policy. The Report of that Committee is the bassis of this Bill. There is nothing in these Resolutions which contravenes what really was accepted by the great majority of opinion on the Balfour of Burleigh Committee, and I want to reiterate what was said by the Minister of Health that this was in no sense a partisan Committee. Every class was represented, including a number of Free Traders and a very large representation of Labour. With regard to Part 1 of the Resolutions. Every one of the Articles scheduled in Part 1 of the Resolution was the unanimous recommendation of the Balfour of Burleigh Committee, and circumstances have not made those recommendations less necessary. The exchanges question is really an additional reason why these recommendations should receive the full support of the House. Magnetos are included in the Schedule. With the state the exchange is in to-day magnetos are sent into this country under the cost of production here, so that circumstances have made this Report even more effective than it was at the time. With regard to dumping, it is said that it is necessary that there should be a real attack upon certain industries. If Members take the trouble to read the Report of the Balfour of Burleigh Committee they will find it stated with regard to tungsten that there was every indication of a considered attempt on the part of the German industry to send material into this country at a price well below the cost of production in order to prevent the establishment of the tungsten industry in this country.
So you could go through the whole Schedule. The point I want to make is that the Committee, having heard all phases of opinion without any regard to Free Trade or Protection, took every article on the Schedule as something that was essential as a key industry which ought to be included in this kind of Schedule. Not only did the Committee say this, but they were supported by a Report of the National Health Insurance Commission with regard to certain fine chemicals which it was desired to put on the Schedule. The Commission said that these chemicals were essential to national safety, that none of them were produced before the War, and that unless they were fostered afterwards it was very doubtful if they could continue to exist, and they went on to say that they considered that one Department of State should be definitely charged with the duty of fostering the production of these materials. Therefore, as an old Free Trader, I say that these articles mentioned in the Resolutions are quite apart from any question of Tariff Reform or Protection. An impartial committee has declared that it is necessary to produce in this country every one of the articles in this Schedule.
The last item on this Schedule is synthetic organic chemicals. I have been connected with the chemical industry all my life; I have not been interested in synthetic organic chemicals as a matter of business, but I had to follow the developments of industrial chemistry all my life, and I wish to impress on the House the importance of the synthetic organic chemical industry in the future Very few people in this country realise how important it is. It was brought home to the right hon. Gentleman, possibly, in the last speech which Lord Moulton delivered just before his death:
My hon. Friend the Member for Oldham (Sir W. Barton) suggested that the synthetic industry, if left alone, might succeed in this country, but I do not think that he realises that the Germans have been fifty years perfecting this system. It is not a simple industry; it is an extremely complex industry, and its success depends upon finding a right direction and a right opportunity for by-products. When I first had to watch the German synthetic organic chemical industry, it consisted of a number of individual firms. Before the War they had formed themselves into two great combinations. To-day there is only one combination, and I do not think this country realises the enormous power which that combination possesses. Step by step it has, with great scientific and engineering ability, worked up to a successful position for every portion of its complex business. I have compared it, my mind, with a mosaic. Take out one or two small pieces, and the whole plan disappears. The Germans' success has depended on their infinite industry in making every piece, every byproduct, every secondary product, serve the industry's commercial success. One day my informant said to me, "We are not afraid of British competition; our foundations are too secure. We can afford to ignore anything that you like to do in Great Britain. You will not succeed against us, and we are not disposed in any way to come to an agreement with or to help the industry in Great Britain, but we intend to allow you to pursue your own course until you are tired." That means that we are thrown back on our own resources. The synthetic organic chemical industry is considered as the best asset that the German nation possesses, commercially, to-day, and that it is not in the interest of the German position that their position should be disclosed. We are up against a tremendous problem, which is of the most vital importance to us, and one which the inclusion of fine chemicals in the proposed Schedule will very largely assist. I do not believe that, having regard to British character and British capacity in brains and scientific knowledge, the problem is beyond solution. But unless something is done to prevent the full blast of German competition in synthetic organic chemistry, the nascent industries in this country have no possible chance. That is where the first Resolution will help. I do not understand that the House quarrels with the first Resolution. It is the considered opinion of Lord Balfour of Burleigh's Committee that articles in the Schedule should be included. It is a misfortune that a conclusion arrived at after enormous pains should now be subject to the old attack of Free Trade versus Protection.
The second Resolution, perhaps, may be more open to question. Here, again, on Lord Balfour of Burleigh's Committee it became evident that something must be done with regard to dumping. Evidence was produced before the Committee, with regard to the electrical engineering industry, that a large German firm of chemical engineers persistently sold machines under cost price in order to prevent development of the industry in this country. They were allied with a big German syndicate, and it was proved that there had been a loss to the extent of hundreds of thousands, of pounds in selling machinery in this country in the interests of the German syndicate and in order to prevent the development of the industry here. Facts of that sort made the Committee unanimous in recommending that legislation should be effected against dumping. I agree that the definition of "dumping" is difficult. The definition referred to by the hon. Member for East Edinburgh (Mr. Hogge), as I read it, depended on the retail price of the article being lower than was currently offered in the country of manufacture—the retail price, not the wholesale price. I think the Government in accepting the wholesale price as the basis of their proposals, have taken the best line. I am glad to hear that with regard to the inclusion of other articles and in trying to meet the question of exchange—which is the most difficult part of the whole problem—the Government are not going to rely only upon the report of the Commercial Committee to be approved by the Board of Trade but, before the legislation becomes effective, are going to allow the House to have a say in the matter. I think that makes all the difference in the world. It is quite evident that if the House is to decide on individual points raised, it would be very difficult for any industry to get assistance of this kind without being able to make a complete case. The Lord Balfour of Burleigh Committee recommended that there should be a strong and competent Board to consider these cases; that it should have independent status and that it should require to have proof that the industry appealing for assistance was using the most efficient technical methods and had the best business organisation.
It is quite evident, that under these proposals, such considerations will have to prevail, and that an industry will require to prove its case fully before it can get assistance. It is quite clear that when industries outside the Schedule appeal to come under the provisions of these Resolutions, there will immediately arise a strong conflict of opinion, and when it comes to this House every factor of the situation will be examined. For instance, take the case of steel. It may be possible that the manufacturers of steel will apply to come under the Second Resolution. They will be met in the House by criticisms from the engineering and shipbuilding trades, for whom the manufacturers of steel provide the raw material. I do not think that should be left entirely to the Board of Trade, and if such cases come before this House, it is the best insurance against any mistakes being made. I agree with my hon. Friends opposite that a mistake of that kind made at a critical juncture would have an enormous effect. We have heard warnings as to the position at the present time in connection with the coal industry, and it is possible that steel manufacturers may come here and ask to be placed under the Second Resolution. It is evident that the production of coal is being greatly diminished and such a situation may possibly arise. I appeal to my hon. Friends opposite, who are interested in the coal position to realise the difficulties which obtain in the manufacture of steel in regard to the present coal crisis: Taking it all round, I feel without any compunction that I am able to support these Resolutions, and I felt, as an old Free Trader and a member) of the Lord Balfour of Burleigh Committee, I should like an opportunity of explaining to the House the reasons which have guided me, and I thank the House for the attention paid to me.
I should not have risen had it not been for the remark of the hon. Member for Rossendale (Mr. Waddington), who, in order to make his case, made a statement about German weaving which is so wide from the fact that some contradiction ought to be made. He said that a German weaver was paid 200 marks for the week, whilst for the same weaver in Lancashire £4 was paid. The only inference that can be drawn from that statement by those not having a technical knowledge of the trade is that these wages are time wages, and that the weavers are doing the same work. Nothing is further from the truth. Lancashire weavers in the cotton trade are engaged at piece rates, and ordinarily they run four looms per week. In Germany the ordinary number of looms run is three, so that one must make a very considerable allowance for the difference in the number of machines run. Then again, with regard to the efficiency of the work, there is no comparison possible. I have seen myself many weaving sheds in Germany. I know the trade intimately in Lancashire, and I cannot let a statement go by that seems to infer that the conditions are the same in the two countries and that the wages are time wages.
As to the Resolutions, I find myself totally opposed to the system laid down in them. If it be essential for this country to manufacture a certain amount of either chemicals or glassware for the country's safety, to my mind that manufacture ought to be conducted by the State, regardless of any cost of production whatever, and the safety of the country ought not to be put into private hands and thereby run the chance of being endangered. That is a radical difference in view between myself and the views expressed in these Resolutions. I have no fear of Government control as such, when Government control is applied to the making of a national necessity, and I must traverse the statement of a previous speaker that everything the Government had touched had been spoiled. On the contrary, some of us hold that had the Government not controlled private individuals and not co-ordinated and organised services, had the Government not curbed the desire for gain of private individuals during the War, we should have lost the War, and only by Government control and organisation did we win the War, and only by the very same things were the people enabled to get a supply of the necessary food. I am inclined to think that the fear of the Government is not so much a fear of the inefficiency of the Government as it is a fear that the Government will take such action as will endanger rapacious profits being made.
May I say a word about the Resolutions, and what they contain? I see nothing in the Resolutions which will give the general public any protection whatever against the manufacturers of these articles. There have been Commissions that have reported on profiteering, and one of them reported with regard to glass-work. Although I have not the quotation, I am quite certain of my ground when I say that that Commission did report cases of excessive charges to the public. What is there in these Resolutions that in any way will guarantee the public against overcharges?
Will the hon. Gentleman forgive me? Does that question of profiteering in glass apply to any kinds of glass which are mentioned in this Resolution?
I think it does.
I think not.
My hon. Friend is mistaken. I think the report to which he referred was a report on electric lamps, and not the glass he mentioned.
As I have not the quotation here, I will simply withdraw the statement until I am in a position to prove it, but there is nothing in these Resolutions that in any way gives the public a guarantee. There is a guarantee given to the manufacturer that he shall have a protection, which is not 33⅓ per cent., for, if the Regulations outlined by the Prime Minister are in operation, first of all, you collect half the value of the article, which is equivalent to 100 per cent. tax, and then on top of that you put 33⅓ per cent., so that if those Regulations are in operation you really collect 100 per cent. tax and then you put 33⅓ per cent. on top of that. Therefore, there is no question about the manufacturer receiving a very large amount of protection indeed. If it be necessary to safeguard these articles, even under private enterprise, with which we disagree entirely, surely it is necessary to give the public some guarantee that that protection will not be used to their detriment, and that the charges will be scrupulously watched in order that the public may receive justice at the hands of manufacturers. Then what is being done by the Resolutions in order to develop on scientific lines these industries? If a man is sufficiently protected by the operation, and can make, working inefficiently, a profit, what is there to make him conduct his business efficiently? There are those who hold that German progress in these matters was due to technical education, skill and organisation.
Germany is a protectionist country, so that what the hon. Gentleman said will apply to this country would surely apply to Germany.
I do not quite see that the remark is relevant. I am not talking about Germany, but about what you are doing here, and I say that one of the statements made by the Minister of Health this afternoon was that Germany subsidised her industries by devoting huge sums to research, and if the hon. and gallant Member will consult tomorrow's OFFICIAL REPORT, he will see that that is what the Minister of Health said. Germany was exercising commonsense. She knew perfectly well that in order to develop industries of this type, the highest possible scientific skill and research were needed. If our Government were proposing to devote sums of money to research and scientific training, one could support them and be glad they had taken up that position. But they do not take up that position. They simply give the employer his protection, and the employer can then do what he wants. I object to the principle underlying these things, because I believe that protection is what makes for inefficiency. I do not believe that there is any way in the world except one to make an industrial nation prosperous—that is by scientific research, careful study, organisation, and by efficiency. If I thought that these taxes made for efficiency I should be strongly tempted to vote for them, because whatever kind of industry I can envisage, efficiency will be the principal thing. You can build your tariff walls. You can have Free Trade. But whatever system you have, if your manufacturers are inefficient, if research is insufficient, and your service undeveloped, you can never become a prosperous nation. And in my own opinion the Government would have been better occupied spending money in the real direction that relates to progress rather than by putting up a high protective wall, without any guarantee to the public against unfair treatment, without any money being devoted to research, without any guarantee of efficiency or laying conditions down for it. None of these things appear in these Resolutions, and because I believe the Resolutions are not calculated to give what everybody in the House desires, safety of the country in the future, national development to those industries which are vital; because I believe rather that they will act in the direction of giving the manufacturers an opportunity to plunder the public, I shall vote against the Resolutions.
I am not going to make a speech at this period of the evening, but I desire to correct one or two errors made, and to direct the attention of the Committee to an instance of the difficulty in which we are placed in discussing so complicated a measure as this Bill on Ways and Means Resolutions, and before we have the Bill before us. There was an error made in one of the statements of my right hon. Friend the Minister of Health when he said that the Orders would be laid before this House, and would not take effect until approved by the House. That is not an accurate statement of what will appear in the Bill. The procedure will be the usual one by which an Order has to be laid for 21 days. During that time it will be possible for the House, if it so desires, to declare the Order void. Of course, it will be impossible for any other procedure in the matter to be adopted, because Orders have to be made during the time the House is not sitting. That is the difficulty in regard to Orders we are always up against, and the practice it is proposed to follow is quite the usual one. I thought I had much better correct that error, and I apologise to the Committee for not having corrected it on the spot. I felt that my right hon. Friend was wrong, and I looked it up in the Bill, but by the time I had found the right place he had passed on to another subject. I should be very sorry that there should be any misunderstanding on this point.
The statement the right hon. Gentleman has made is an extremely important statement, because it is one thing to find out whether an Order has been laid on the Table—most difficult to find out—and then after 11 o'clock to move an Address to His Majesty against the policy of the Government, and quite another thing for the Government to bring in an Order and ask the House to approve it—quite another thing altogether. Therefore, I hope when the Bill is introduced that the original statement made by the Minister of Health will be carried out. The hon. Gentleman (Mr. T. Shaw) said, as I understood him, that Germany had spent more money upon technical education and efficiency, and he thought this was the right thing to do. He forgot to tell the Committee that Germany was a protective country and that it was under Protection that Germany had risen to the commercial prosperity to which she had risen. The hon. Member forgot to say that he himself was one of the greatest Protectionists in the world, that is a trade unionist, because what trade unionists have to sell they want the highest price for and they want to buy everything they require in the cheapest market, which really means, "Heads I win, tails you lose." I am glad to see that at last a little light is beginning to shine in the trade unionist mind. The right hon. Gentleman the Member for Norwich (Mr. G. Roberts) expressed the views which I expressed in 1906 in Peckham, and which received the strongest epithets from hon. Gentlemen opposite. At that time opposite my election committee rooms were posters showing the black bread which was going to be imported here if Tariff Reform was carried out. I congratulated the right hon. Gentleman the Member for Norwich upon having now come round to my views. When I sat on the Benches opposite as a Tariff Reformer, I must say that sometimes I was inclined to think that I might be wrong after listening to speeches on Free Trade by the Minister of Health, because they were the most powerful speeches on Free Trade which I have ever heard and I am glad that the right hon. Gentleman has now been converted to the views which I held. Very often at that time it was said that I represented the views of only one or two hon. Members, but I find that in the long run everybody comes round to my views, and there is no greater instance than the right hon. gentleman the Member for Norwich and the Minister of Health. My hon. Friend (Sir W. Pearce) says that he is. going to vote for these Resolutions and he is still a Free Trader, but his own industry is going to be protected. I am still receiving letters from various interests pointing out that their particular industry is a key industry and that they ought to be protected. My hon. Friend the Member for Limehouse advocates Free Trade for everybody except himself. He says, "Our industry is the most important and necessary that can possibly be imagined."
I am sure the right hon. Baronet does not want to do me an injustice. The chemical industry is a very large industry. I have no con- nection whatever with the particular branches in the Schedule of this Bill.
I beg the hon. Member's pardon; I understood him to say that everybody in this Committee knew that he was connected with the chemical trade.
Not with this part.
It is only with a portion of the part with which he is connected that he desires protection, but that does not interfere with my argument, which is that there is hardly a trade in the country which does not desire protection for itself. Even the right hon. Member for Norwich said it must not be supposed that in advocating these Resolutions he would be supporting protection for every kind of industry. What some hon. Members have to sell they want to protect, and what they have to get they want to buy in the cheapest market. I have never held that view.
Nor have I.
But you have acted on it. I have been a Tariff Reformer from the days when the late Mr. Joseph Chamberlain came into this House and advocated Tariff Reform. As my right hon. Friend knows—I have often said it—I was the first London Member to go down to his constituency and to support Tariff Reform. I do not hold that this is Tariff Reform.
What I rose to say was that I sincerely hope the Government will go further. They cannot pick out four, five, six, or seven industries—or whatever the number is—and say, "We will protect those and not protect others." If you are going to have Tariff Reform which, in my opinion, is absolutely necessary, you must have a proper tariff and not a prohibitive tariff. I do not want a prohibitive tariff, but one of such size as will enable the manufacturers in this country to compete on favourable terms with their competitors abroad. I do not want a prohibition tariff. Above everything, I do not want a tariff imposed by the Board of Trade. Whatever tariff is imposed must be imposed by this House. If an Amendment is proposed later on to leave out the power of the Board of Trade to become a taxing Department, I shall vote for it. Nothing could be worse than to put into the hands of a Government Department the power to become a taxing Department. The power to tax must remain with this House. The hon. Member for the Eye Divison (Mr. Lyle-Samuel) stated that unless this country had been a Free Trade country it could not have given the financial assistance which was necessary to the Allies to carry on the War. He forgot, however, that a great deal of the assistance necessary came from America, the greatest Protectionist country in the world. How was it that she managed to find all this money? How did Germany find the money? She got it, and she was a great Protectionist country.
How did we find it?
We found it by borrowing from other people. We borrowed from America, and we put an enormous burden upon this country from which it has not yet recovered, and from which it will take it many years to recover. It is possible that if we had been a Protectionist country we should have been richer than we are now.
indicated dissent.
The right hon. and gallant Gentleman does not agree, but let him look round the world. What were the most prosperous countries before the War? America and Germany.
This country.
Far from it. This country was not particularly prosperous. Before the War the most prosperous countries were America and Germany. I do not want to be drawn into an argument, but it is a matter of fact that everyone knows.
What about Russia?
Unfortunately Russia has a Bolshevist element, and I am afraid there are some on the other side of the Committee who would try to do just the same here as has been done in Russia. As long as Russia had a Czar, she was fairly prosperous, and it was only when she became a Bolshevist country that she entered into her present disastrous career. The hon. Member for Eye said it was necessary that we should export goods; but how can we, as a Free Trade country, export goods unless the countries to which we export are Free Trade countries? If every other country were a Free Trade country I would be a Free Trader, but as long as other countries are Protectionist it is necessary that we should reply by being Protectionist also. It is absurd to say that, other countries being Protectionist, we should be able to export to a Protectionist country by allowing their goods to come in free. The reverse is the case. If we had Protection here, we might say to other countries, "If you will reduce your tariffs against us we will reduce our tariffs against you," and we might be able to come to some agreement; but as long as we stand out and remain a Free Trade country while others are Protectionist, we cannot hope to hold our own in the markets of the world.
With regard to the exchanges, I agree with the hon. Member (Mr. W. Graham), who alluded to the Cunliffe Committee. The question of the foreign exchanges has never been thoroughly understood by anyone except the late Lord Goschen, who wrote a book on "The Theory of Foreign Exchanges." It is one of the most difficult subjects in the world. It is not going to be settled by these Resolutions. The only way to settle it, in my humble opinion, is, as Lord Cunliffe said, to get back to sound currency; and the only way you can get back to sound currency is not to encourage hopes in people's minds that you are going to do it by legislation. You can only do it by hard work, by reduction of expenditure, and by curtailing borrowing. Therefore, while I shall vote for this Resolution, it must be on the understanding that I hold myself at liberty, in the Committee, to vote, as I certainly shall, against the Board of Trade or any other Government Department having the power to impose taxes. I think that that power ought to be limited to the House of Commons. If I had the power, which I have not, I would vote for the extension of the Resolution to include every industry in the country.
Motion made, and Question proposed, "That the Chairman do report Progress, and ask leave to sit again."—[ Mr. Hogge. ]
I had intended, with your sanction, Mr. Hope, to ask the Committee to come to a decision upon the Amendment now before them, and thus to close the general discussion to-night; but it has been conveyed to me, through the usual channel, that it would meet the convenience of all parties in Opposition that this Amendment should be carried over until to-morrow, that we should come to a conclusion upon it early to-morrow, and that, sitting late, as I fear we must—but not unreasonably late—both tomorrow and on Wednesday, we may conclude the Committee stage of these Resolutions before we rise for Whitsuntide. On that understanding, I gladly accept the Motion.
Question put, and agreed to.
Committee report Progress; to sit again To-morrow.
Mr. Speaker's Retirement Bill
Considered in Committee, and reported, without Amendment; to be read the Third time To-morrow.
Salmon and Freshwater Fisheries Bill
Read a Second time, and committed to a Standing Committee.
The remaining Orders were read, and postponed.
Safeguarding of Industries (Resolutions)
Motion made, and Question proposed, "That this House do now adjourn."—[ Colonel Leslie Wilson. ]
With regard to the statement made by the Leader of the House as to reporting Progress, I hope there will not be any mistake. He mentioned that to-morrow night and Wednesday he hoped to get Resolutions Nos. 1 and 2 at a "not unreasonable hour." That is a phrase which is capable of many definitions. It is true that to-day we have had some talk in regard to the business, but I do not think that any of us bound himself as to the length of time to which we might go on either Tuesday or Wednesday night. None of us wants to sit up all night, if it is unnecessary, but I want to tell my right hon. Friend that, so far as the phrase which he used, "a not unreasonable hour," is concerned, it may be subject to various interpretations, and I hope he will not be disappointed at what actually does take place.
It is quite clear that the arrangement is that the first Resolution should be finished to-morrow, that the second Resolution should be finished on Wednesday, and that we shall have to sit after 11 o'clock on both nights, and I understood that there would be no disposition unduly to prolong the Debate. Of course, if necessary, we shall sit until they are carried, and we are only endeavouring to consult the convenience of the House. There are a great number of Members who are put to great inconvenience if the House sits beyond a certain hour.
This is a very important proposition.
I am well aware of that. The Government would not have given it the place in their programme that they have if it were not important. That makes it all the more necessary that the Government should proceed. I am dealing now with the arrangement come to through the usual channels. I do not attempt to tie hon. Members to a particular hour, but I did gather that the hon. Gentleman and those associated with him would not unnecessarily prolong the Debate, but would endeavour to facilitate the ending of the sitting at an hour which would not be an inconvenience to hon. Members. It is not to the interest of the Government to tie hon. Members unduly when any arrangement of this kind is made. We trust to their general sense and honour.
Question put, and agreed to.
Adjourned accordingly at Eight Minutes after Eleven o'clock.