House of Commons
Tuesday, May 10, 1921
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
Provisional Order Bills (Standing Orders applicable thereto complied with),—Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the following Bills, referred on the First Reading thereof, the Standing Orders which are applicable thereto have been complied with, namely:—
Ministry of Health Provisional Order (Barnsley Extension) Bill.
Ministry of Health Provisional Orders (No. 4) Bill.
Bills to be read a Second time Tomorrow.
Provisional Order Bills (no Standing Orders applicable),—Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the following Bill, referred on the First Reading thereof, no Standing Orders are applicable, namely:—
Ministry of Health Provisional Orders (No. 5) Bill.
Bill to be read a Second time Tomorrow.
Private Bill Petitions [ Lords ] (Standing Orders not complied with),—Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the Petition for the following Bill, originating in the Lords, the Standing Orders have not been complied with, namely:—
Slough Trading Company, Limited (Canal) [ Lords ].
Ordered, That the Report be referred to the Select Committee on Standing Orders.
London County Council (General Powers)
Bill (King's Consent signified),
Bill read the Third time, and passed.
Middlesex County Council (General Powers) Bill (King's Consent signified),
Bill read the Third time, and passed.
Sunderland and South Shields Water Bill,
Read the Third time, and passed.
London County Council (Money) Bill (by Order),
Second Reading deferred till Wednesday, 25th May.
Local Government (Ireland) Provisional Orders Bill,
"to confirm certain Provisional Orders of the Local Government Board for Ireland relating to the County Borough of Belfast and the Urban Districts of Enniskillen and Pembroke," presented by Sir HAMAR GREENWOOD; read the First time; and referred to the Examiners of Petitions for Private Bills, and to be printed. [Bill 100.]
Oral Answers to Questions
India
Auxiliary Force
asked the Secretary of State for India whether the 32,000 men proposed for the Indian Auxiliary Force were voluntarily recruited by the 31st March last; if not, what steps he proposes to take in the matter, and what was the maximum strength attained by the Indian Defence Force during the War under the Compulsory Service Act?
I have not yet received the figures up to the 31st March last, but have asked for them.
Infantry Battalions
asked the Secretary of State for India whether any pre-War battalions of infantry have been disbanded in India, and, if so, which; and whether orders have lately been issued for the future disbandment of the 1st battalion of the 44th Merwara infantry or any other pre-War Indian regiment?
No pre-War battalions of infantry in India have yet been disbanded. Orders have been issued for the disbandment of the 44th Merwara infantry. So far, this is the only pre-War battalion of which I have received information that it is to be disbanded, but it is evident that if certain new units, such as Burmese, Kumaonis, etc., are to be retained, an equivalent number of old units must disappear. As I have already stated, the number of Indian infantry battalions which it is proposed to maintain after the War is the same as the number maintained before the War.
Government Officers (Retirement)
asked the Secretary of State for India how many applications have been received by the Government of India from officers in India for permission to retire on proportionate pensions, under the recommendation made in Clause 36 of the Report of the Joint Select Committee on the Government of India Bill; and what orders have been issued thereon?
Up to the 1st April last, one such application had been received by the Government of India. They informed the applicant that they could not support his request, as it was evident that his desire to retire was of long standing, and based mainly on reasons quite unconnected with those discussed by the Joint Select Committee.
Malegaon Riots
asked the Secretary of State for India whether he can now give an account of the reported rioting at Malegaon, and of the cause which led up to it?
A further report has just been received from the Government of Bombay. I will circulate this in the OFFICIAL REPORT, and communicate it to the Press.
"The Bombay Government report that a disturbance was threatened on 25th April owing to the prosecution of several Momins (Mohammedan weavers) for carrying arms at mass meetings, and their refusal to pay fines on conviction, and consequent imprisonment. The Mamlatdar, a resident magistrate, and the city sub-inspector of police (the latter with three or four armed constables) proceeded to the town. The mob attacked the city sub-inspector of police, whose men fired some rounds in the air. The mob did not disperse, and the police took refuge in the house of Mr. Pophale, a merchant, adjoining a temple. Failing to apprehend the sub-inspector of police, the mob brought fuel and kerosene and fired several houses and also the temple. The merchant and his family are said to have escaped, also one or two constables, but the sub-inspector of police, who attempted to escape in woman's garb, was caught, beaten to death, and thrown in the fire It is reported to be practically certain that one or two constables were also killed. The Mamlatdar and resident magistrate were stoned, but escaped. The mob then cut the telegraph wire, stopped the mail tongas from running, and drove the armed police out of the town. Several of these were beaten, and some are said to have been killed. The mob enforced a hartal and are reported to have looted shops of loyal persons. Prompt arrival of troops and police had a good effect, and order has now been restored, but the attitude of the town is reported to be sullen and obstinate. A force of 200 police is now in the town together with a detachment of troops."
British Army
Army List
asked the Secretrya of State for War whether he can give the House an approximate figure as to the amount which it is hoped to save in the cost of the Army List during the current year; whether he can state the number of advertisement contracts which have already been made for insertion in future issues; and what is the total sum it is calculated they will bring in?
It is estimated that a saving of approximately £3,900 will be effected in the cost of the Army List during the current year. No advertisement contracts have yet been made, but it is hoped that the form of contract will be finally approved very shortly. It is impossible at present to estimate what revenue will eventually be obtained from the advertisements.
Is the hon. Gentleman aware that I suggested this in November last, and made it my business to see Messrs. W. H. Smith & Sons, the great advertising firm, and they said they thought it such an excellent medium that they would themselves advertise in it?
As the hon. Gentleman has made such an admirable appointment, I will see if the suggestion can be carried out.
War Decorations (Territorial Army)
asked the Secretary of State for War what opportunity will be afforded to the soldiers of the Territorial Army to wear their medals, in view of the decision that khaki is to be worn on ceremonial occasions, and medals will not in future be worn with khaki?
Soldiers of the Territorial Army may wear their medals when service dress uniform is worn as review order on ceremonial occasions. The same Regulation applies to soldiers of the Regular Army.
Retired Officers (Re-Employment)
asked the Financial Secretary to the War Office whether the officers now employed at the War Office who are retired on pension or half-pay are in receipt of that pension or half-pay in addition to the pay of their rank or office?
The retired officers who are employed at the War-Office as retired officer clerks retain their retired pay, in addition to the pay of their posts. There are no half-pay officers regularly employed at the War Office.
Lancer and Hussar Regiments (Recruits)
asked the Secretary of State for War whether he is aware that recruits for Lancer and Hussar regiments enlist at the age of 18 and that the limit of height is 5 feet 8 inches; whether recruits grow after the age of 18 years; and, seeing that it is proposed to turn the 5th Royal Irish Lancers, the 19th and 20th Hussars, and the 21st Lancers into tank regiments, and in view of the fact that from the experience gained in the late War it has been found advisable to have small men in tanks owing to the fact that the taller men get injured when going over rough ground when in tanks, will he reconsider his decision of converting these cavalry regiments into tank regiments, and con- sider the question of each cavalry regiment having light tanks and the shorter men being trained to tank duties, and also consider the question of reducing the number of horses in these regiments according to requirements?
The limit of height for recruits of lancer and hussar regiments is as stated, but the age for enlistment is 18½ years. If the suggestion of maintaining the identity of the cavalry regiments to be disbanded by identifying them with Tank Corps units is carried out, only men who are suitable in every respect and who volunteer for service in the Tank Corps would be taken for the purpose. The experience gained during the recent War with regard to the suitability of certain types of personnel for duty with the Tank Corps has not been lost sight of by the War Office. I am afraid that the question of arming cavalry regiments with light tanks cannot be usefully considered until such a weapon is more fully developed than is the case at present.
Lance Rank (Pay)
asked the Secretary of State for War whether there is an Army Order in existence which disallows pay for lance rank for soldiers now mobilised; whether this inflicts a great hardship on lance-corporals and lance-sergeants who are deprived of pay according to their rank; and whether the War Office can see their way to grant this concession?
Under the terms of the Pay Warrant (Articles 973 and 974), the number of paid lance-corporals and paid lance-sergeants is limited by the establishments, and lance appointments in excess of the establishments are unpaid. No Army Order has been issued laying down special rules on the subject for soldiers of the Defence Force or Army Reservists recalled in the present emergency, and I regret that no exception to the general rule can be made in their case.
If officers who rejoin retain their rank and their Army pay is it not, in all fairness due to the noncommissioned officer, to let him retain his rank and pay on mobilisation?
It is clearly laid down in the Orders for mobilisation, that the men who held lance appointments previously when they go to the Reserve and are called up again they come in at the bottom of the list and they have to wait until there is a vacancy on the establishment.
Does the same rule apply to officers?
Officers who have left without pensions get only the ordinary pay of their rank.
Is it not a fact that no officer in the Defence Force receives the pay of his previous rank, but only the pay of his new rank?
I am not quite sure about that.
Questions
Wild Birds (Trapping)
asked the Secretary of State for the Home Department whether his attention has been called to a case of gross cruelty to captured chaffinches brought up before the Epsom magistrates; and whether he will again consider whether means can be adopted to make illegal the trapping of wild English singing birds, particularly in the neighbourhood of large cities where they add to the enjoyment of the people?
I have seen a newspaper report of the case. The offender was convicted, and fined for cruelty to the birds. It is already an offence to trap or snare any wild bird during the close season from 1st March to 1st August, but no doubt the law requires to be strengthened, and I shall be glad when time and opportunity permit Parliament to consider the recommendations of the Departmental Committee on the Protection of Wild Birds, which reported in 1919.
Is it not a fact that the same promise was made over a year ago?
Yes. I think, as a matter of fact, it would be a very good thing to carry out the suggestion.
Will you give facilities?
Yes.
Is there any more cruelty in trapping birds than in trapping rats and rabbits? [HON. MEMBERS: "Yes!"
Is it not a fact that this man was fined only forty shillings, and will the right hon. Gentleman communicate with the magistrates concerned and suggest that the fine was not sufficient?
That does not arise out of the question.
London Sessions (Conviction)
asked the Home Secretary whether it has come to his notice that in the case of a woman tried for soliciting before Mr. Lawrie, at the County of London Sessions on 12th January, a list of previous convictions, including one for felony, was brought forward by the police, which was denied by the prisoner; whether he is aware that, in reply to a question by Mr. Lawrie, the police declared that they had verified the convictions by the finger-prints of the accused, and that it has been subsequently discovered that the convictions were those of another woman of the same surname as the accused's maiden name; if this is so, whether any steps have been taken against the police officer giving false evidence; and whether the sentence of 15 months' imprisonment given as a result of this evidence has been revised?
A mistake in identification was made such as the hon. Member mentions. The identification had not been verified by finger-prints, and as soon as the mistake was discovered, the matter was brought to the notice of the Chairman of Quarter Sessions. On his recommendation, the sentence was reduced from fifteen to three months. Steps are being taken at the Criminal Record Office to prevent the repetition of such a mistake.
Industrial Assurance
asked the Home Secretary whether he is aware that many persons holding industrial insurance policies are, owing to unemployment, unable to continue the stipu- lated payments; and what steps the Government propose to take in order to prevent such policies from being forfeited in such cases?
I would refer the hon. Member to the reply which I gave to a question on this subject on Thursday last.
Seditious Leaflets
asked the Home Secretary what action is taken by the police against individuals who circulate or promote the distribution of leaflets of a character which justifies the police in seizing and destroying them?
Persons who are found distributing leaflets of a seditious character are detained for enquiries, and if the circumstances justify such action, proceedings are taken against them.
Roads and Footpaths (Rules)
asked the Home Secretary whether the Metropolitan Police have issued any rule of the road, and, if so, where it can be seen; and whether they have issued any rule of the footpath, and what it is and where it can be seen?
The Commissioner has not issued any such rules, and has no power to do so.
Are there any such rules in existence?
There are customary rules with regard to pedestrians, and statutory rules with regard to vehicular traffic.
Land Settlement, Scotland
asked the Secretary for Scotland whether he intends to proceed with the eviction of Mr. and Miss McWilliam from their farm of Hardthorn, in the Stewartry; if he is aware that these old people were both born on the farm and feel the injury acutely; that they asked to be allowed to retain the dwelling-house and 70 or 80 acres of land out of 300 acres but were refused by the Scottish Board of Agricul- ture; and that Sir Matthew Wallace, another tenant on the estate of Terregles, is being allowed to remain in the dwelling-house of Terregles-town, although he has not resided there all his life; and whether he will have the whole matter reconsidered?
My hon. and gallant Friend will recognise that unless the progress of land settlement of ex-service men is to be seriously retarded, there must be considerable displacement of existing tenants on properties acquired for this purpose. The Board always give sympathetic consideration to the claims of sitting tenants, but it is necessary in this case that they should remove. The farm is suitable for settlement, and there are a number of ex-service applicants for it. Sir Matthew Wallace's case is not analogous. The buildings on his farm are not suitable for small holdings. The Board consider that it would be advantageous to dispose of them, and to set free the sum realised for settlements elsewhere.
Was there no other property that could have been taken for the settlement of ex-soldiers, without turning this old couple out, of their ancestral home in this way?
No, I think there was no other property. We are carrying out the scheme laid down for settlement. These two old people, with whom I have every sympathy, were offered a part of the building and 30 or 40 acres, but they refused the offer.
Is the right hon. Gentleman aware that it is exactly the same sort of thing that has been criticised when carried out in Russia?
Post Office
Wireless Telegraphy (Railways)
asked the Postmaster-General whether the Post Office have granted licences to the British railway companies authorising them to employ wireless telegraph as an auxiliary means of communication for railway purposes; whether the chain of stations which has been constructed on the Midland and London and North Western Railways will be used solely for the regulation of traffic; or whether messages will be transmitted over the system which would normally be conveyed by the State telegraph service?
Permission has been given to the Midland Railway Company to establish wireless communication between certain points on their system, and to the Marconi Company to conduct tests of such communications between certain points on the London and North-Western Railway system. An application from the Marconi Company to carry out a more extended trial is at present under consideration. All such permits are of a temporary character, and can be withdrawn at any time should circumstances render this course desirable. The stations are to be used solely for the purposes of the railway companies and not for the transmission of messages which would normally be conveyed by the State telegraph or telephone service.
Telephone Service
asked the Postmaster-General the course he proposes to take with regard to those telephone subscribers who entered into a contract for one year with the Post Office before the recent increase and who have paid the fees for one year in advance?
Each agreement is being terminated by due notice at the earliest date possible under its provisions, and as stated in reply to the hon. Member for Kensington South, on 15th March, credit is given for any unexpired portion of rental paid in advance.
If the contract be broken the money is returned?
As I have stated, if the contract is broken in its terms, then any unexpired portion of the money is returned.
Overseership, Derby
asked the Postmaster-General whether a recent promotion to a vacant overseership at Derby resulted in the claims of many men with first-class qualifications being overlooked; whether a vacancy for a further overseership exists; and whether, in these circumstances, he will personally see that his promise to the hon. Member for Leeds that no junior will be promoted over equally competent senior men is applied in the selection of a candidate for the vacant position?
The claims and qualifications of all men at Derby were fully considered before the promotion in question was made. I can assure the hon. Member that in filling the further vacancy a junior officer will not be selected in preference to an equally well qualified senior.
Sub-Office Assistants
asked the Postmaster-General whether he is aware that 1 per cent. of the sub-office assistants employed upon Post Office work are in receipt of 5s. a week or less, 35 per cent. are in receipt of 20s. a week or less, and 91·5 per cent. are in receipt of 40s. or less; and whether, seeing that all these amounts are supposed to contain a bonus to meet the increased cost of living, he will cause inquiry to be made as to the adequacy of the remuneration which is being paid?
Particulars of the rates of pay of assistants employed by sub-postmasters on Post Office duties are furnished by their employers to their head postmasters, but considerable inquiry would be necessary to verify the figures given by the hon. Member. It is the duty of the local postmaster to see periodically that the wages and conditions of service of these assistants do not fall below the standard for shop assistants in the service of good employers in the same district, and I do not think that any general inquiry is called for, but I will look into any individual case which may be brought to my notice.
Naval and Military Pensions and Grants
Tuberculosis Cases (Training)
asked the Minister of Pensions whether the payment of training bonuses to tuberculosis ex-service men is to be taken to mean that it has been the practice to pay such bonuses in the case of such men who have undergone a course of concurrent treatment and training arranged by the local insurance committee; and, if not, why such bonuses are not pay- able, having regard to the fact that men who have satisfactorily completed a course of concurrent treatment and training at institutions provided by the Ministry of Pensions for cases other than tuberculosis do receive such bonuses?
I would refer the hon. Member to the reply which I gave him on the 28th April. In any case where a course of vocational training is completed under the conditions stated in that reply the bonus is paid.
Questions
Pensions Appeal Tribunals
asked the Minister of Pensions how many non-commissioned officers or men have actually sat as members of the appeal tribunals during the last three months; if so, on what tribunals; how often on each tribunal; and what is the total number of tribunals sitting during the last three months?
Every tribunal for non-commissioned officers and men must have a non-commissioned officer or man sitting as its Service member. The tribunals sit every day, morning and afternoon, except Saturdays and Sundays. On Saturdays appellants too ill or infirm to travel are visited at their homes or at hospitals or elsewhere. Twelve non-commissioned officers or men have sat as members of Pensions Appeal Tribunals since 28th February. From 4th January to 28th February, 10 tribunals were sitting. From 28th February to 7th May, 12 were sitting. The number sitting to-day is 13. Additional tribunals will commence to sit on the 17th instant.
Am I to understand that there are no appeal tribunals dealing with the cases of non-commissioned officers on which there are representatives of the non-commissioned officers or men?
If the hon. Member will kindly put down another question I will have inquiries made.
Widows (Re-Marriage)
asked the Minister of Pensions whether, in the event of an officer's widow entitled to pension marrying again and her second husband dying, she would revert to her original claim and be entitled to pension; and, if so, are the same privileges granted to the widow of a non-commissioned officer or man?
In the circumstances stated in the first part of the question, the pension would be restored if the financial position of the widow were such as to justify restoration. This privilege is not given to the widows of non-commissioned officers and men, but they have the compensating privilege of a gratuity on re-marriage, which is not given to the widows of commissioned officers.
Would it not be much better if the widow of a non-commissioned officer or man had the same claim as the widow of a commissioned officer in this respect?
This matter was very carefully considered by a Select Committee, and they were unanimously of the opinion that this is the best way. So far as my experience goes, and it has been of a somewhat lengthy nature, there has been no complaint.
What is the reason for the distinction between officers and men in this matter?
I do not think there is really very much difference.
Could a non-commissioned officer's widow be allowed a choice of a gratuity, or in the event of her second husband dying, to revert to the pension again?
I do not think that would be possible. Even in the case of officers, the pension is not restored to the widow, if the second husband dies, unless there are some special circumstances which justify it.
Have the associations of non-commissioned officers and men in any way been asked to express an opinion?
I think all these associations were heard in evidence. If my recollection be right, the Select Committee came unanimously to the conclusion that this was the proper way to deal with the matter.
Agricultural District Wages Committees
asked the Minister of Agriculture if all the representative members (employers' side) of district wages boards in England have been nominated by the National Farmers' Union; and, if not, how many other employers' organisations have representation?
By the statutory Regulations governing the constitution of district wages committees, the representative members are appointed by the wages board from among persons nominated by employers' and workers' organisations respectively. I understand that the wages board accepted nominations of employers' representatives only from the National Farmers' Union.
Why were other independent employers' associations not invited?
That is a question which I cannot answer. I have no control whatever over the action of the Wages Board in this matter.
What Minister will answer for the Wages Board? Is it an entirely independent body?
I am quite prepared to make replies, but, as I say, I have no power over the Wages Board acting in accordance with Statutory Regulations.
Can the right hon. Gentleman say on what Vote the expenses of the Wages Board are taken in the House?
They are taken on the Ministry of Agriculture Vote.
Then is the right hon. Gentleman not responsible?
Technically, of course, I am responsible, but I am not permitted by the Statutory Regulations to interfere in appointments made by the Wages Board. The only way would be to alter the Regulations.
Will the right hon. Gentleman consider altering the Regulations, so that the other employers may get some representation somewhere?
Who is really responsible?
I have just said I am.
Is there any agreement between the Secretary of the National Farmers' Union and the Secretary of the Wages Board?
Public Parks (Tennis Courts)
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, in what respect the enclosure of portions of Hyde Park and Regent's Park for public tennis courts would differ from the enclosure of certain portions of the same area for the Royal Zoological Society, the Botanical Gardens, and Rotten Row; whether in many public parks tennis courts are now in existence, and are much appreciated by the public; and whether the First Commissioner of Works can reconsider the decision not to permit public tennis courts to be instituted in view of the certain revenue to be expected from such courts and the very small area involved?
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works whether, seeing that a section of Regent's Park contains a series of lawn-tennis courts for playing upon which a high subscription, together with court fees, is obtained, he can see his way to allowing members of the general public to take part in the same popular form of recreation upon a similar series of courts in one of the central parks of London?
My attention has been drawn to enclosures such as the Zoological and Botanic Gardens, which were respectively established 95 and 82 years ago. They occupy 52 acres, which, except for three acres, have never been open to the public Their existence does not justify fencing off more ground to which the public has access, however lucrative such a course might be. The general policy of the Office of Works is to remove rather than increase enclosures. For instance, it has just been decided to throw open eight acres of land in Regent's Park from which the public has hitherto been excluded. The creation of new enclosures would seriously impair the efforts of the Department to remove or curtail those which already exist.
Has the right hon. Gentleman referred to Rotten Row in the course of his answer? Do not the arguments he has applied to the enclosure of all such areas apply equally to Rotten Row?
I am aware that Rotten Row exists, and has existed for a great number of years. It affords considerable pleasure to large numbers of people, and if it were to be removed, the cost of replacing the grass would be out of all proportion to any advantage that might possibly be gained.
Do the arguments which the right hon. Gentleman uses for the keeping open of Rotten Row not apply equally to tennis courts, which would certainly provide revenue and also afford enjoyment to many people?
Will the right hon. Gentleman consider the advisability of providing a special concentration camp for scorching motorists?
I do not think the argument holds good that tennis courts are in the same position as Rotten Row. After all, the tennis courts are limited to a comparatively small number of people.
Is the right hon. Gentleman aware it is not necessary to enclose these courts at all?
League of Nations
Meetings
asked the Lord President of the Council if he will advocate more frequent meetings of the Council of the League of Nations; and whether that Council is to meet forthwith to deal with the Report on the Aaland Islands, the Polish-Lithuanian dispute, and the recommendations of the Brussels International Financial Conference?
I see no reason for recommending more frequent meetings of the Council of the League of Nations, which has already held 12 meetings since the ratification of the Peace Treaty. The agenda for the next meeting, which will probably be held early next month, has not yet been received, but I think it likely that it will include all three subjects mentioned by the hon. Member.
Permanent Mandate Commission
asked the Lord President of the Council if the newly-appointed members of the Permanent Mandate Commission are to receive a salary; and, if so, from what source?
The members of the Commission will receive no salary, but it is provided in the Constitution of the Commission, which was approved by the Council of the League on the 20th November last, that they shall receive, out of the League funds, an allowance of 100 gold francs a day each during their meetings, in addition to travelling expenses.
Questions
Voluntary Aid Detachment (Unemployment Benefit)
asked the Minister of Labour whether he is aware that many young women left their pre-War employment to act in various capacities, such as members of the Volunteer Aid Detachment, and after discharge have been prevented owing to depression in trade from qualifying for unemployment benefit under the provisions of the Act; whether he is aware that ex-service men who have, with the assistance of the civil liabilities committee, started in business and owing to depression in trade have been compelled to abandon their business have also been unable to qualify; that men who have been in receipt of workmen's compensation for a considerable time and are now physically fit are similarly situated; and whether he will take steps to remove these injustices by amending the Act?
General service members of the Voluntary Aid Detachment are eligible for unemployment benefit on the recommendation of the local employment committee under the same conditions as ex-service men and women generally. In the other cases mentioned, benefit would not in general be payable. The Unemployment Insurance Act, 1921, already makes material provision for persons who have not paid contributions. I cannot agree that the relief of every case in which a man or a woman is unable to obtain employment, but has not paid contributions, ought properly to be made a charge on the Unemployment Fund, four-fifths of which is derived from the contributions of employers and employed persons in the insured trades.
Will the right hon. Gentleman deal with that part of the question which has reference to the case of soldiers who have started in business, but, owing to trade depression, have been obliged to abandon business? Will he make provision for such men?
I think the last part of my answer really covers that case, assuming, as I understand it, that what is underlying my hon. Friend's supplementary question is that every person who finds himself in difficulties owing to trade depression should have a claim on the fund. We cannot accept that position, because the fund is a contributory fund.
May I ask whether there is any distinction as between an ex-service man who started in business, but, owing to depression, has been compelled to cancel his business, and a man who is entitled to workmen's compensation and other benefits in other ways? Cannot we make allowance for a man who, having been assisted by the Civil Liabilities Committee to start business, has failed through trade depression, and cannot qualify for unemployment benefit?
As I have said, it is a contributory fund and the conditions under which subscriptions are made to the fund and benefits are payable by the fund are laid down by Act of Parliament. Already under the 1921 Act the ex-service men have a very great advantage under the fund, in that they do not have to qualify by 20 weeks' or even by 10 weeks' contributions as an ordinary civilian has to do.
Housing Subsidy
asked the Minister of Health, if there is any subsidy for houses about to be built for aged miners; if so, what for, say, a living room and a bed room, or a living room and two bed rooms; has this subsidy to be paid back; and is interest to be paid on the subsidy?
Under the present Regulations, a grant of £230 is paid in respect of a house of approved construction containing a living room and two bed rooms, and comprising not less than 700 feet superficial area. The person receiving the grant is not required to repay it, and no interest is payable upon it.
Income Tax and Super-Tax
asked the Chancellor of the Exchequer whether he can issue this year estimates of the number of persons paying Income and Super-tax, and the various rates paid, bringing up to date the information given in Command Paper 224, of May, 1919?
The Estimates contained in the Command Paper in question, which were specially prepared, are now being revised, and it is hoped to include a revised statement in the forthcoming report of the Board of Inland Revenue. Owing to changes in the Income Tax system, the preparation of similar statistics for the year 1920–21 and the current year presents great difficulties, and I am unable at the moment to make a definite statement as to the publication of a similar Return for those years.
Excess Profits Duty
asked the Chancellor of the Exchequer whether his attention has been drawn to the statement made at the annual meeting of the shareholders of Messrs. Lever Brothers to the effect that the firm and its associated companies ought never to have come within the scope of the Excess Profits Duty, as no excess profits have been made by them; whether he is aware that the profiteering sub-committee on the soap industry reported that it was clear that a large part of the high prices paid for soap during the War went in payment of Excess Profits Duty, and that the tax was paid directly by the soap consumer and not by the soap share- holders as such; and whether, in the event of Lever Brothers making a claim for return of any duty paid, these facts will be borne in mind and the claim carefully scrutinised?
My attention has been drawn to the statement and report referred to by the hon. Member. As he is no doubt aware, the Commissioners of Inland Revenue are precluded by Statute from disclosing information relating to the taxation of particular taxpayers; but he may rest assured that those Commissioners carefully examine all claims to repayment of Excess Profits Duty and restrict the repayment to such sums as the taxpayer proves to be due to him under the provisions of the law.
Loans (Colonies and Allies)
asked the Chancellor of the Exchequer if he will give particulars of the loans due to this country from the Colonies and the Allies, the rates of interest, the due dates, and the currency in which the loans are repayable?
The amounts of the loans are set out in Table V of the Financial Statement of 25th April, 1921. The rates of interest and the due dates vary and are determined by the agreements under which the loans were made. With the exception of a small portion of a loan to Canada, which is repayable in Canadian dollars, the loans are all repayable in sterling.
I understood my hon. Friend to say that the rates of interest and the due dates were made under agreements. Can we have particulars of those?
They are very detailed and numerous. Perhaps, if there be any particular loan to which my hon. Friend refers, he will let me know, and I shall be glad to give him the details of that one.
External Debt
asked the Chancellor of the Exchequer if he will state the amount of loans due by this country to the United States of America, the due dates, and rates of interest, stating how much is due to the American Government and how much to the American public, and in what currency the loans are repayable?
If my hon. Friend will move for a return of the External Debt as at 31st March, 1921, corresponding to the Return (H.C. 144 of 1920) moved for last year by the hon. and gallant Member for Kingston-upon-Hull, I will have figures issued as soon as possible giving the information asked for, together with similar information regarding the remainder of the External Debt.
Is it proposed to proceed now to finality with the return of the bonds and securities borrowed during the War from the British public for the purpose of using them as security with the American public and the American Government?
I think I must ask for notice of that question, which does not arise out of the one on the Paper.
May I ask if the hon. Gentleman understood my question as being this, that—
I think the hon. Member's question had better appear on the Paper.
Mechanical Lighters' Duty
asked the Chancellor of the Exchequer the amount received from the duty on mechanical lighters from the 1st January to the 31st March, 1921; and can he say what proportion would be derived from home manufacture as distinct from imported?
The approximate net revenue received from the duty on mechanical lighters from 1st January to the 31st March, 1921, was as follows:—
Ireland
Captain Hardy
asked the Prime Minister whether Captain Hardy, at one time acting as liaison officer between Dublin Castle and the special intelligence office, Scotland Yard, is employed on Government service of any kind; and, if so, where and in what capacity?
The answer is in the negative.
Compensation Claims
asked the Chief Secretary for Ireland whether his attention has been called to the following cases in which county court judges have awarded damages against Crown forces, and what redress is available for the parties injured: awarded by Judge Bodkin: Miss Brown, of Kilmihill, hair cut off, 26th January, 1921, £400; Mrs. Annie. Hanley, Limerick, house burnt, ankle broken, 22nd September, 1920, £400; awarded by Judge Doyle: Martin Flanagan, shop looted, £185; Mrs. McDonagh, of Cappagh Barna, money looted, £57 10s.; awarded by Judge Hynes: Michael Crowley, of Mohona, Dunmanway, wounded, £500; John O'Brien, of Ballyneen, shot and house burnt, £490; Robert Hales, senior, Knocknacurra, house burnt, £1,405; awarded by Judge Cusack: William O'Connor, of Castle-island, shop destroyed, £2,000; awarded by Judge Pigot: Mr. Brosnan, of Abbeyfeale, injuries to child, £2,000; awarded by Judge Moore: Thomas Kearney, Mrs. Farrell, and John O'Brien, of Ballyporeen, property destroyed, £14,300, £13,300, and £360, respectively?
The periodical returns from the Clerks of the Crown and Peace received to date only include a few of these cases. The awards are not against the Crown Forces as the hon. and gallant Member suggests; but against the local authorities and the redress of holders of decrees lies against those authorities. As stated in the reply given to the hon. and gallant Member for Central Hull on the 9th March last, the general question of relieving cases of hardship where the local authorities refuse payment is having the Chief Secretary's consideration.
Is the Government not prepared to make any compensation to people who, after the judicial inquiry, have been shown to have suffered such considerable loss at the hands of the Crown agents?
No, Sir; that is not so. They have their claim and decree against the county councils who refuse to pay.
Yes, but is it not the fact that these allegations have been made against the Crown forces, and have been proved in court at which the Crown forces were invited to attend and defend themselves?
The only jurisdiction of the county court judge is to consider as to claims against the county. He has no jurisdiction to consider cases against the Crown forces, and he has made no decree.
But is it not the fact that these cases were decided before the Government suppressed the County Courts in these matters? Is it not the fact that these cases were decided against the Crown forces, and what are the Government going to do in the matter of compensation?
No; I have already said that they have made no decision against the Crown forces. The Crown forces were not parties to the inquiry, and any attempt to bring them in would be a usurpation of jurisdiction.
Putting aside legal quibbles, and having regard to the fact that these things were committed by the Crown forces—
They were not.
Is not my hon. and gallant Friend justified in asking that the compensation should be shouldered by the Crown?
The basis of the question of my hon. and gallant Friend is that I admit that these things were committed by the forces of the Crown, which I utterly repudiate.
Who did them, then?
asked the Chief Secretary what were the injuries sustained by Head-constable Downes at Roscarberry on the 1st February last for which he was awarded £1,000 compensation out of the rates?
Head-constable Downes received no injuries on 2nd February, 1921, at Burgatia ambush; but he is suffering from shock and loss of memory since.
Would a working man who met with an accident that prevented him from following his employment be given similar compensation?
That is a matter for the County Court judge who awarded this sum, after public inquiry.
asked the Chief Secretary whether his attention has been drawn to the case of Mrs. Isabella Clarke, of Roscommon, who was awarded £891 damages at Roscommon Sessions for ladies' clothing taken from her shop on the night of 15th October; whether Mrs. Clarke, who slept in an adjoining house, was awakened by a noise about midnight, and, looking out, saw soldiers moving about inside her premises; and whether any military inquiry has been held with a view to identifying the robbers?
The charges made by this lady have been the subject of a careful military inquiry, and no evidence has been forthcoming in support of her allegation that members of the military forces were implicated in the theft. The police sergeant who also investigated the case has since been murdered, and no police evidence could therefore be given at the hearing of her claim at the Quarter Sessions.
asked the Chief Secretary whether he is aware that a boy named Michael Considine, aged 12 years, was shot by military or police on 23rd December at Cooraclare, County Clare, and severely wounded; that his father wrote to District-Inspector May claiming compensation, and received the reply that the shooting was accidental; that this case was brought before County Court Judge Bodkin at his recent examination into compensation claims, but compensation could not be awarded, owing to the injunction of the Commander of the Forces; and whether he proposes to allow this claim for an admitted injury to be proceeded with?
This place is in the martial-law area, and I have therefore asked the Commander-in-Chief to furnish me with a report. Perhaps the hon. Member will kindly repeat the question on Thursday.
Why do you not shoot the whole nation?
asked the Chief Secretary how many claims for compensation have been granted in County Clare for crimes committed, in the opinion of the judge, by members of the Crown Forces; what is the nature of the crime in each of these cases; what is the total sum awarded; and how many punishments have as yet been inflicted in respect of these crimes?
I would refer the hon. Member to the replies given by my right hon. Friend the Chief Secretary to a question on this subject on the 17th February last, and to my replies to similar questions on the 20th ultimo.
Why do you not use a gramophone, instead of bringing up these damned things day by day?
The same old answers!
Affray, Castleconnell
asked the Chief Secretary if his attention has been drawn to the statement that auxiliary forces of the Crown used dum-dum bullets in the recent affray at Castleconnell; whether he is aware that the only basis for this statement was a spent revolver cartridge, empty of all powder, with a reversed bullet pushed into it, which was picked up after firing; and will he say whether any live ammunition of this nature was found at all?
Yes, Sir. My attention has been drawn to the allegation referred to in the first part of the hon. and gallant Member's question. As regards the remaining parts, I am glad to have this opportunity of repudiating the shocking suggestion that dum-dum ammunition is being or has been used by forces of the Crown in Ireland. No such ammunition has ever been issued to the Crown forces in that country, nor has any evidence at any time been forthcoming that such ammunition has in fact been used.
Is the right hon. Gentleman aware that this allegation was made by an eminent surgeon in this country, and that his evidence was prevented from being laid before the court of inquiry?
No, Sir, it was not prevented. I am also aware of the allegation that was made, and also aware that persons who have seen the alleged dum-dum bullet say it was a bullet turned upside down.
asked the Chief Secretary why no statement was invited from Mr. Cripps in the Castleconnell inquiry?
I am in communication with the Commander-in-Chief with reference to this matter. Perhaps the hon. and gallant Member will kindly repeat the question on Thursday.
Is the right hon. Gentleman not aware that the Lord Chancellor stated that his evidence would not be taken?
Yes, Sir, and I have stated in answer to my hon. and gallant Friend that I am in communication with the Commander-in-Chief on the subject.
Lord Mayor of Limerick (Arrest)
asked the Chief Secretary whether the present Lord Mayor of Limerick has been arrested; if so, on what charge; whether he is to be brought to trial; and where he now is?
As this place is in the martial-law area, I have consulted the Commander-in-Chief, by whom I am informed that the answer to the first part of the question is in the affirmative. The mayor summoned a meeting without having previously obtained the permission of the military governor. He was invited to discuss the matter with the governor, but refused to do so. He was therefore arrested, tried by summary court, convicted and fined £10 as the alternative of a week's imprisonment.
Is the right hon. Gentleman aware that two Lord Mayors of Limerick have been murdered, and is it not about time that the Lord Mayors were left alone?
Murder, Headford
asked the Chief Secretary whether he is aware that Patrick Molloy, of Kilroe, near Headford, was taken from his house on the night of 30th April, and afterwards found dead; whether his brother had previously been on the run; and whether the perpetrators of this outrage have yet been traced?
The court of inquiry in lieu of inquest found that this man was wilfully murdered by unknown men on the 30th ultimo. No clue has yet been obtained by the police as to the perpetrators of this murder. I have no information as to whether his brother had previously been on the run.
Questions
Estimates Committee
asked the Prime Minister whether a decision has yet been arrived at with regard to the setting up of an Estimates Committee; and whether the Select Committee on National Expenditure is to be appointed this year?
Yes, Sir, the Government has decided to adopt the recommendations made by the informal Committee which I invited to assist me in considering this subject, for whose counsel and advice I should like to say I am very much obliged. As the recommendations are of considerable length, I think that the most convenient course would be to circulate a memorandum of them in the OFFICIAL REPORT.
The following is the memorandum:
Minister Without Portfolio
asked the Prime Minister what are the particular duties upon which the Minister Without Portfolio (Dr. Addison) is engaged at this moment; and when the House will have an opportunity of discussing this matter?
I would refer my hon. Friend to the reply which I gave on the 6th April in answer to a similar question by the hon. and gallant Member for Rotherham (Major Kelley). The Minister without Portfolio is the Chairman of several important Cabinet Committees, and a member of others. The House will have an opportunity of discussing the matter when the Estimate for the Cabinet offices is taken.
Can the right hon. Gentleman say when that Estimate is likely to be taken, as we have been waiting a long time for it?
In relation to the discussion of this Estimate, as of all Estimates, I shall try to meet the convenience of the House.
Are we allowed to put questions to the Minister without Portfolio with regard to his work? [An HON. MEMBER: "If so, what on?"]
If it is a question which it would be proper for my right hon. Friend to answer, he would no doubt answer it, but it is not usual to question Ministers as to Cabinet deliberations or the deliberations of Cabinet Committees, and if the practice were sought to be introduced, I should deprecate any Minister replying.
Are we to understand that the activities of the Minister without Portfolio are entirely confined to Cabinet work and the work of Cabinet Committees?
Yes; he has no departmental duties.
Will the right hon. Gentleman give an undertaking that the Minister without Portfolio will not be given another Portfolio?
No, I certainly will not.
Licensing Conference
asked the Lord Privy Seal whether, in addition to members of the trade and temperance organisations, it is proposed to appoint representatives of the consumer to take part in the conference on liquor control and licensing legislation which is shortly to be convened; and, if so, will he take steps to secure that some of these representatives are qualified to represent the views of those members of the public who belong to clubs?
I have nothing to add at present to the answer given by my right hon. Friend the Prime Minister to similar questions on the 5th of May.
May I ask why the consumer, the person who is going to have his liberty restricted, is not to be represented on this Committee, whereas the brewers and the temperance party, who each have axes to grind, are to be exclusively represented?
I know no ground for the assumption which underlies my hon. and gallant Friend's question that nobody is to be represented except interests on one side or the, other. There is nothing in any statement of the Prime Minister to convey that impression.
Is the right hon. Gentleman aware that it was stated most specifically in answers from that Bench that the licensed trade and the temperance organisations were to form this Committee?
No, Sir.
Currency Expansion
asked the Chancellor of the Exchequer whether he will issue a Return bringing the statement of currency expansion (Cmd. 434, 1919) up to date so as to include Brazil, Australia, New Zealand, Canada, South Africa, Chile, Argentine Republic, and Mexico?
I have been asked to reply. A fresh issue of the Return mentioned in the question is in course of preparation. I will inquire to what extent it may be found practicable to include particulars for the countries referred to by my hon. Friend.
Unemployment Relief, Middlesbrough
asked the Minister of Labour whether he is aware that on certain relief works in Middlesbrough the corporation are paying the men 1s. 5d. per hour, the district rate for labourers being 1s. 9d.; that in making grants from the Unemployment Grants Committee there is no condition that the district rate of wages shall be paid; that a number of men have refused employment on the Middlesbrough scheme because wages offered are below the district rate; that these men have been disqualified for unemployment benefit; and whether he will make representations as to the advisability of no grant being made except on the condition that the district rate of wages is paid or, failing this, give instructions that men who refuse employment in such circumstances shall not be disqualified for unemployment benefit?
As explained in the reply given to my hon. Friend on 28th April by the Financial Secretary to the Treasury, the regulation of the wages paid on relief works is in the hands of the local authorities. The rights of unemployed workmen to unemployment benefit are governed by the provisions of the Unemployment Insurance Acts, 1920 and 1921, and I have no power to give instructions which are not in accordance with those provisions. I am making inquiry with regard to the claims made by the men to whom my hon. Friend refers and will let him know the result.
Alexander Iii. Don Cadet College
asked the Under-Secretary of State for Foreign Affairs whether the Alexander III. Don Cadet College originally situated in Novocherersk, and which has now been removed to Ismailia, has been recognised by General Congreve as a military unit; what is his official relation to the college; and under what Government do the cadets serve?
I have no information on this subject beyond what has appeared in the daily Press. I will make inquiries, the result of which will be communicated to the hon. Member in a few days.
British Empire Exhibition
asked the Parliamentary Secretary to the Overseas Trade Department whether a general manager for the proposed British Empire Exhibition has been appointed; if so, will he state the date of his appointment, the remuneration paid, and the functions he performs; and whether the appropriation approved by Parliament was conditional on a certain amount being raised by those interested?
The Executive Council of the British Empire Exhibition have appointed a general manager, as from the 1st January, 1920, with salary at the rate of £3,000 per annum, and an allowance for entertainment and the upkeep of a motor car at the rate of £2,000 per annum. His duties as set out in the articles of association of the exhibition are the full direction of all matters appertaining to the exhibition, and the organising, management, designing, laying out, and constructing of it. He is subject to the control of the executive council, of which Lord Morris is chairman. The only liability on public funds in connection with the exhibition is a participation in the guarantee fund to the extent of £100,000 subject to conditions to be approved by the Treasury. This participation in the guarantee has been approved by Parliament.
Can the Minister in charge say what other experience this man has had in running exhibitions, other than that obtained while he was Controller of the Stationery Office?
Yes, Sir, I can inform the hon. Member that he has had an unrivalled experience in all the international exhibitions in which we took part before the War.
Have the guaranteed sums, on which the Government's guarantee of £100,000 is contingent, been found satisfactory?
I do not think that arises, but the Government guarantee will not arise unless the other sums guaranteed be forthcoming. I understand there is no doubt they will be forthcoming.
But I understood the hon. and gallant Gentleman to say just now that the Government guarantee is contingent upon the satisfactory guarantees from other quarters?
I am not sure what the total amount is, but unless these guarantees are forthcoming—and as I say there is every reason to believe they will be—the Government guarantee will not be operative.
Has not the Board of Trade appointed this individual, and are they not guaranteeing his salary?
No, Sir; the position at present is a simple one, and is exactly as I have said. If the total sum be guaranteed from other sources, then the guarantee, of which this House approved, will be forthcoming from the Government.
Has not the Board of Trade appointed this man, and pays his salary. Must, therefore, the guarantee not be forthcoming?
No, Sir; the Board of Trade did not appoint him, nor are they responsible for his salary.
You have already given the guarantee!
Coal Industry Dispute
Defence Force (Leave)
asked the Secretary of State for War if, as many members of the Defence Force are being retained with no special duties to perform who left their medical and other studies in order to meet a national emergency, consideration will be given to application for leave on the undertaking that they would immediately rejoin if their services were required?
Instructions have already been issued authorising officers commanding units to grant leave to soldiers of the Defence Force up to a maximum of ten per cent. of a unit at any one time. These instructions provide for preference being given to cases of hardship, including teachers, students, apprentices, and those undergoing training under the Board of Education and Ministry of Labour, especially those about to undergo examination, and those employed in one man businesses or in similar positions, the remainder being chosen by ballot.
Can some consideration be given to the members of the Reserve Forces, seeing the discontent amongst them owing to their being kept away from their employment?
In regard to the latter part of the question, I believe it is quite true that the same rule applies to the Reserve Forces as to the Defence Force; but without notice I would not like to say absolutely.
Why is the exemption allowed to only 10 per cent. when only 25 per cent. of the entire force is being employed?
I would like to ask for notice of that question.
Is not my hon. and gallant Friend aware that there are only 3,500 out of 78,000 being employed on any duties?
How do you know?
The Government have told us. It is the Government answer. In view of the fact that out of 78,000 men, only the number I have mentioned is re- quired, could the hon. and gallant Gentleman not see his way to exempt men who are attending universities for examination purposes?
Is the hon. and gallant Gentleman aware that a great many of the men who have been offered leave have preferred to stay with their units?
In answer to the last question, it is perfectly true. I have made inquiries about it. We have not had any complaints that more leave is wanted.
Present Position
asked the Leader of the House whether any developments have taken place in the coal situation, and whether he has any information to give the House on the subject?
Before the right hon. Gentleman replies, may I ask whether he will also tell us if the Government have given any consideration to No. 13 of the Regulations which we passed on Wednesday last?
The hon. and gallant Member gave me no notice of his intention to put this question, except such as I have received verbally through my hon. Friend the Joint Parliamentary Secretary to the Treasury since I came into the House. I do not think there is any statement that I could make to-day that would add to the information already in the possession of the House, without entailing any harmful results.
Will the right hon. Gentleman undertake to contradict the statement which has appeared in the Press that certain Labour Members s are using their influence privately to bring about a settlement against the wishes of the miners?
No, Sir, I do not think I can be called upon to contradict statements in the Press in regard to the action of other people.
May I have a reply to my question as to whether the Government are considering Regulation 13?
Was any notice given of that question?
It was put yesterday.
Government Staffs
Ministry of Agriculture
asked the Minister of Agriculture how many boys and youths under 18 years of age are employed in his Department; and what are the weekly rates of payment, including bonus, at the ages of 15, 16, 17, and 18?
As the answer to this question is somewhat lengthy, I propose, with the permission of my hon. Friend, to circulate it in the OFFICIAL REPORT.
The following is the answer :
The number of boys and youths under 18 years of age employed in the Ministry of Agriculture and Fisheries is 60, comprising 8 permanent clerical officers, 35 temporary clerks, and 17 temporary messengers. The average inclusive weekly earnings at the ages mentioned are as follows:—
£ s. d. Clerks between ages of 17 and 18 2 5 9 Clerks between ages of 16 and 17 1 11 11 Clerks between ages of 15 and 16 1 6 8 Clerks age 15 (none employed) Messengers between ages of 17 and 18 1 12 11 Messengers between ages of 16 and 17 1 11 2 Messengers between ages of 15 and 16 1 6 4 Messengers between ages of 14 and 15 1 3 11
Questions
Works Department
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, how many boys and youths under 18 years of age are employed in his Department; and what are the weekly rates of payment, including bonus, at the ages of 15, 16, 17, and 18?
The number of boys and youths under 18 years of age employed by this Department is 104, of whom 88 are industrial employés. No standard rates of pay for boys at the ages of 15, 16, 17, and 18 are fixed, the rates varying from 10s. in the case of an office and general message boy to £3 1s. 2d. in the case of a junior clerical officer (age 17 9–12 years) according to the grade to which they belong, the nature of the duties which they perform and the locality in which they are employed.
Could not ex-service men perform these duties equally well?
This Department already employs a large proportion of ex-service men.
Territorial Waters, Canada
asked the Secretary of State for the Colonies whether any area of the estuary of the St. Lawrence or Gulf of St. Lawrence situated further than three miles from the nearest land is regarded by the Government as being within territorial waters?
I must apologise to the House for not being in my place when this question was called the first time, but my absence was due to a public engagement. I am well aware that that is no excuse, and I apologise. The answer to this question is that this matter does not come within my Department.
Jaffa (Disturbances)
asked the Secretary of State for the Colonies, whether he is able to give the House further particulars with reference to the recent disturbances at Jaffa?
:I have already communicated to the Press all particulars with reference to the recent disturbances at Jaffa, which I have received by telegram from the High Commissioner. A Commission of Inquiry has been appointed to inquire into the matter, and it is not probable that further information will be forthcomnig until it has completed its investigations.
Tanganyika (Ex-Enemy Property)
asked the Secretary of State for the Colonies to what account it is proposed to credit the proceeds derived from the sale of ex- enemy property in the mandated area in Tanganyika?
The proceeds will be dealt with in accordance with Article 243 of the Treaty of Versailles.
Does that mean that the proceeds will be paid to the Reparations Account, or to the cost of administering those territories?
I should not like to reply to that question without further inquiry.
Mesopotamia (Sayid Talib)
asked the Secretary of State for the Colonies when, and on what charge, Sayid Talib, of Basra, late Minister of the Interior in the Baghdad Government, was arrested; whether he has since been deported for life; and whether he is in custody?
Sayid Talib Pasha, late Minister of the Interior in the Provisional Arab Government of Mesopotamia, was arrested at Baghdad on the 16th April. The charge was that while holding an important office, and responsible for public security, he made a speech in the presence of foreign consuls and other gentlemen, in the course of which he stated that he was prepared, in certain eventualities, to have recourse to armed force against the Mandatory Power. In the interests of law and order, he was accordingly deported to Ceylon, where he will be allowed to live at liberty with his family. The period of his detention will be dependent upon the course of events' in Mesopotamia, and has not been fixed.
Has the right hon. Gentleman been offered a Lordship of Appeal?
Was deportation carried out by a military court or by the order of the High Commissioner?
By the order of the High Commissioner.
East Africa Railways
asked the Secretary of State for the Colonies when it is contemplated that the Nakuru- Mumias Railway in East Africa will be commenced and when it will be completed?
Construction is awaiting a decision as to the precise route to be adopted, and this point will be taken up as soon as the engineer in charge of surveys arrives in this country, probably late in the present month. I cannot yet state how long the construction of the line will take.
asked the Secretary of State for the Colonies whether the railway to Kenia Mountain, in East Africa, is to be built along the easiest route; what it is likely to cost per mile; if the alternative route from Gilgil has been surveyed and reported upon; and if the Gilgil route will pass through white settlement along the whole line, whereas the Nyeri route goes for a considerable distance through native reserve where no settlement is contemplated?
The route proposed is a continuation of the existing Thika branch railway, and a comparatively easy route has been found for the first 54 miles, the estimated cost being £8,800 a mile. The last part has not yet been surveyed. I have no reports on a possible route from Gilgil to Mount Kenya; and I shall be glad to receive any representations which my hon. and gallant Friend may make in favour of that route.
If it is a fact that this railway has not yet been started, can the fight hon. Gentleman not push on with it in view of the tremendous distress in British East Africa, for unless something be done to improve the condition of the country, it will destroy the white settlement for many years to come?
I can assure my hon. and gallant Friend that I have devoted my personal attention to this matter. I have visited the whole country, and taken great interest in the matter.
Tyrol (Plebiscite)
asked the Under Secretary of State for Foreign Affairs whether his attention has been called GO the result of a plebiscite held in the Tyrol, when out of a possible 150,000 votes 110,000 were cast in favour of union with Germany; and whether, since the effect of the Treaty of St. Germains is to create a body of people discontented with their official nationality, and consequently dangerous to the peace of Europe, the Government propose to take any steps for the revision of the Treaty?
The answer to the first part of the question is in the affirmative. As regards the second part, I would point out that, under Article 88 of the Treaty, Austria can appeal to the Council of the League of Nations.
Upper Silesia
The following question stood on the Paper in the name of Lieut.-Commander KENWORTHY:
67. To ask the Under-Secretary of State for Foreign Affairs whether he has any further information with regard to the disturbances in Upper Silesia; and what steps are being taken to restore the situation?
On a point of Order. May I ask this question on the second time round? I have had my ration, but I believe it was arranged that questions beyond the ration might be asked on the second time round.
Question No. 61 was beyond the limit of the hon. and gallant Member's "ration."
On that point of Order. I believe that it was arranged by your predecessor in the Chair that the second time round—[ Interruption. ]
I must confess that that is a new point to me. I will look into the matter.
Should I be entitled to ask Question No. 67 on behalf of my hon. and gallant Friend?
Obviously not on behalf of an hon. Member who is present. I confess that it is a new point to me. I do not recollect what my predecessor said on the matter. I will, however, allow the hon. and gallant Member to put the question on this occasion.
I have nothing to add to the reply given to the hon. and gallant Member for Leith (Captain W. Benn) yesterday, no additional information having been received.
Can the hon. Gentleman now state if any note has been sent to the Polish Government to request their good offices to end these disturbances?
I am afraid I have nothing to add to the answer which I have given.
Have the Government taken any steps to stop this flagrant breach of the Treaty of Versailles?
That point was covered by the reply given by the Prime Minister yesterday.
Is the hon. Gentleman aware that the Prime Minister gave no answer at all yesterday? Can we expect the Germans to keep the Treaty if we do not keep it ourselves?
All these considerations are in the mind of the Government.
But nothing is done!
Business of the House
Can the Leader of the House make any statement as to the course of the Debate on the Ways and Means Resolutions?
It was agreed, by the general assent of the Committee yesterday, that the discussion on the two Resolutions should be concluded tomorrow. It was then intended that the general discussion on the first Amendment, now before the Committee, should be concluded after a couple of speeches to-day; but I understand that it is the general wish of the House to prolong the time for general discussion, and to take the Division on this first Amendment at eleven o'clock to-night. Provided that there is no breach of the understanding already concluded, that both Resolutions shall be completed in their Committee stages to-morrow, and, as I am led to hope may be possible, by 8.15 to-morrow—though I do not insist upon that—provided that that is so, I gladly meet the convenience and wish of the House in regard to the distribution of time in the interval. On that understanding, I shall not attempt to take a decision on the general discussion which arises on the first Amendment until eleven O'clock to-night. I shall not move to suspend the Eleven O'clock Rule to-night, but I shall put down the Motion for the suspension of the Rule to-morrow—not because I think it will be necessary, from what I have heard, but in order to provide against our common object being defeated by an accident.
Important of Plumage (Prohibition) (No. 3) Bill
Reported, with Amendments, from Standing Committee D.
Report to lie upon the Table, and to be printed,
Minutes of the Proceedings of the Standing Committee to be printed.
Bill, as amended (in the Standing Committee), to be taken into consideration upon Friday, 10th June, and to be printed. [Bill 101.]
Standing Committees (Chairmen's Panel)
Mr. JOHN WILLIAM WILSON reported from the Chairmen's Panel: That they had appointed Mr. William Nicholson to act as Chairman of Standing Committee A (in respect of the Agriculture (Amendment) Bill [ Lords ]); Mr. Rendall to act as Chairman of Standing Committee D (in respect of the Corn Sales Bill and the Tithe Annuities Apportionment Bill); Mr. Hodge to act as Chairman of Standing Committee D (in respect of the Protection of Animals Act (1911) Amendment Bill and the Diseases of Animal Act (1911) Amendment Bill); Mr. Rendall to act as Chairman of Standing Committee D (in respect of the Local Rates Increase (Prevention) Bill); Mr. Rendall to act as Chairman of Standing Committee D (in respect of the Guardianship, etc., of Infants Bill); and Mr. John William Wilson to act as Chairman of the Standing Committee on Scottish Bills (in respect of the Protection of Animals (Scotland) Act (1912) Amendment Bill).
Report to lie upon the Table.
Selection (Standing Committees)
Standing Committee A
Sir SAMUEL ROBERTS reported from the Committee of Selection; That they had discharged the following Member from Standing Committee A: Mr. Reginald Nicholson.
Report to lie upon the Table.
Message from the Lords
That they have agreed to,
North British Railway Order Confirmation Bill, with an Amendment.
That they have passed a Bill, intituled "An Act to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to Dundee Gas." [Dundee Gas Order Confirmation Bill [ Lords. ]
Also, a Bill, intituled, "An Act to amend the statutory provisions relating to the Tendring Hundred Waterworks Company; to confer further powers upon that Company; and for other purposes." [Tendring Hundred Water and Gas Bill [ Lords. ]
Also, a Bill, intituled, "An Act to empower the Mayor, Aldermen, and Burgesses of the County Borough of Grimsby to construct and work tramways and to provide and work trolley vehicles; to make street works and improvements; to confer further powers with respect to their electricity and markets undertakings; to make various provisions and to confer various powers in regard to the health and for the improvement and good government of the borough; and for other purposes." [Grimsby Corporation Bill [ Lords. ]
And also, a Bill, intituled, "An Act to make further provision with respect to the Cattedown Wharves, Plymouth." [Cattedown Wharves Bill [ Lords. ]
North British Railway Order Confirmation Bill,
Lords Amendment to be considered To-morrow.
Tendring Hundred Water and Gas Bill [ Lords ]
Grimsby Corporation Bill [ Lords ],
Cattedown Wharves Bill [ Lords ],
Read the First time; and referred to the Examiners of Petitions for Private Bills.
Dundee Gas Order Confirmation Bill [ Lords ],
Ordered (under Section 7 of the Private legislation Procedure (Scotland) Act, 1899) to be considered To-morrow.
Orders of the Day
Ways and Means
Considered in Committee. [ Progress, 9th May. ]
[Mr. JAMES HOPE in the Chair.]
Safeguarding of Industries
Motion made, and Question proposed,
1. "That for a period of five years from the passing of an Act for giving effect to this Resolution there shall be charged on any of the following articles imported into Great Britain or Ireland a customs duty of an amount equal to 33½ per cent. of the value of the article, that is to say:
Amendment proposed: To leave out the words "five years," and to insert instead thereof the words "one year."—[
Question again proposed, "That the words 'five years' stand part of the Question."
The President of the Board of Trade yesterday, in a speech which was heard by the whole Committee with great pleasure, and by some of us with sincere sympathy, declared that, in regard to these Resolutions, he had taken upon himself the duty of fathering somebody else's child. That was a very gracious and graceful way of inaugurating his accession to his new office, in which we are all delighted to see him. I am afraid, however, that his kind, impulsive act of generosity does more credit, I will not say to his heart than to his head, but to his benevolence than to his judgment; for this foundling—or, I should say, these foundlings, for it is a case of twins—are, I am afraid, for reasons which I shall venture to submit to the Committee, stamped from the very beginning with symptoms of congenital infirmity, and it will tax all the powers, even of the most assiduous foster-father, with the advantage which he enjoys from the expert assistance of the Minister of Health, to bring them into active life.
Before I say a few words about the Resolutions themselves, I should like to advert for a moment to an argument which, if it has not been much pressed in this Debate, has certainly been taken advantage of outside, that these Resolutions necessarily deserve the support of all those who were parties, as I was, to what are called the Paris Resolutions of 1916. I do not repudiate in any way those Resolutions, nor, so far as I know—I cannot carry all my declarations in my mind—do I retract anything of what I said when I was commending them to the support of the House in those days. But as so many people seem either not to have read the Paris Resolutions or to have forgotten them, I think it important at the moment, though it has nothing to do with the merits of the question, to point out that neither in the circumstances in which they originated nor in the contingencies which they contemplated, nor in the arguments by which they were supported, nor in the stipulations and provisions of the Resolutions themselves, do they afford the least colour or countenance to the legislation which is now proposed. [ Interruption .] An hon. Member says "Oh!" Does he know what the origin of the Paris Resolutions was? The Conference which passed the Paris Resolutions was summoned by the Allied Powers at one of the most critical moments in the War as a reply to a challenge put down upon the Floor of Europe by Austria and Germany at the Mittel Europa Conference at Vienna. The Central Powers laid down at that Conference a programme which aimed, not only during but after the War, at sweeping the Allies, and neutral Powers as well, into a great Austro-German economic circle. It was part of their scheme—they then thought they were going to win the War—to paralyse, by joint action on their part, the economic freedom of all those who had resisted them in the War. The Allies were bound to show that they were alive to that risk and were prepared to encounter it, and the Resolutions put forward at the Paris Conference by the British delegates were, in the first place, concerned with tightening the blockade by the Allies, which was very lax in many respects, up to the British standard, and, in the second place, contained an assurance that in the transitional period the stocks of all the Allies' countries would be replenished before any of their materials were given to other countries.
I should like to read, as memories are short in these matters, both the Preamble of those Resolutions and one or two phrases which I myself used in commending them to the House of Commons. The object of those Resolutions, in view of the challenge thrown down by Germany, was to declare the solidarity of the commercial interest of the Allies. Resolution C2, which was the important one, speaks of the necessity of facilitating mutual trade relations be-between the Allies and the interchange of their products, and that purpose is still more clearly defined in Resolution D, which sums up the whole matter in its Preamble in these words: dating the economic unity of the Allies against contemplated and threatened aggression distinctly reserves in the plainest possible terms—neither I nor my colleagues would ever have consented to it without that reservation—the freedom of each of the Powers to adopt such measures as were consistent with their own views of fiscal policy. It was a belligerent step directed to these contingencies. Let us see what has happened since Austria and Germany threw down this challenge. Austria is now, we may say without exaggeration, economically wiped out of existence, at any rate for the time being. What is the case with Germany? The German Mercantile Marine, Germany's most formidable instrument for this purpose, has disappeared, and indeed has been distributed amongst her late enemies. The German mark, her unit of currency, is at this moment one-twelfth in international value of what it was then, and—a point which is perhaps more important for the purpose of this discussion—during the last year—and I have no reason to think conditions have substantially changed—imports into Germany exceeded her exports. Therefore the contingency against which the Paris Resolutions were directed has completely disappeared. Now by these Resolutions you propose to set up a tariff wall, directing your operations not against our late enemies, but my own opinion after a good deal of examination of the facts is that the effect of the creation of this tariff wall will be far more injurious to our late Allies, France and Belgium, and above all, to the United States of America than it ever will be to Germany—you are now erecting a tariff wall not against your late enemies, but against the whole world. That is all I have to say about the Paris Resolutions, which have really nothing whatever to do with the subject.
Let us examine the case on its merits. I take the first of these Resolutions, which deals with what are very improperly called key industries. I think the term "key industry" in the public acceptation of it now is a complete misnomer and misdescription. My hon. Friend the Member for Oldham (Sir W. Barton), in his very admirable speech yesterday pointed out that the real key industries of this country are not this list of comparatively insignificant com- 4.0 P.M.
modities which are enumerated in the first Resolution, but our key industries are agriculture, coal, textiles, engineering and shipbuilding. Those are the pivots on which the whole of our trade really hinges, and these so-called key industries, although I am not for a moment suggesting that they are unimportant, have no sort of title to that description. What is the case with regard to the industries scheduled in this Resolution? No one has said more strongly than I have, very likely in the speech in which I commended the Paris Resolutions to the House—I have said it not only here, but among my Free Trade friends outside—that we ought not to be blind to the teaching and experience of the War. Undoubtedly that teaching and that experience show that in regard to matters which when we became a belligerent country were of vital importance to our national security we had made insufficient preparations and were dependent upon foreign sources of supply. I should have been prepared—I am now prepared; I will say in a moment in what way and by what method—to assent, not to this incongruous and heterogeneous, schedule of more or less disconnected and jostling trades, but to the proposition—I am using, I think, the language of the Prime Minister—that the trades concerned should be allowed to import as freely and as cheaply as possible. That, in my opinion, is absolutely the wrong way to go to work. You may say to me: "What is the right way of going to work?" I am assuming that industries necessary for war purposes ought to be conserved in this country, and I lay down three conditions, which seem to me not to be theoretical or abstract, but to be abundantly justified by experience. I say, in the first place, that you ought not to divert labour or capital from more essential forms of production. I say, in the next place, that you ought not to foist upon the British consumer, or, what is equally important, upon the British producer, articles inferior in quality and excessive in price. I say, thirdly, that the profits resulting from State assistance given to these industries, after providing reasonable remuneration for those who have incurred the risk of subscribing capital and embarking labour, should be for the community, and not for particular interests.
If you ask me what is the practical conclusion, I say that when you can produce cases, and there are such cases, in which an industry essential for our security in time of war requires State assistance, the proper way of affording that assistance is by a subsidy or contribution—not by a tariff; a tariff is the worst possible way that you can do it—directed to two particular ends. In the first place to the development of experiment and scientific research for the improvement of the industry and the establishment and maintenance of it upon an independent foundation; and, in the next place, to securing that whatever resulting profit there may be shall not go into the hands of particular interests, but shall belong to the State itself. That is my view with regard to what are falsely called key industries. Of course, we have seen, as you always see in countries where tariffs are in course of fabrication, and when you try by enumeration to give a preferential or favoured position to a particular trade, competition among trades jostling each other. We have an illustration of it here. This list is quite different from the list produced a year or two ago. It is not only the mendicants who have been left outside and are anxious to come in, but even the successful persons who have forced an entrée and have got in are quarrelling among themselves. I saw a very remarkable illustration which some one sent me the other day from a trade paper called, I think, the "Optician." The "Optician," acting as the spokesman of this particular trade, objected very much to having introduced on level terms with it the products of people manufacturing by fermentation processes. It is said that the fermentation people had got a very great advantage as it was, and they were not at all on the same level as themselves. I say, not in regard to this comparatively peddling experiment in tariff fabrication, but from a larger and wider point of view, that the moment you begin to select for preferential treatment particular industries, you open the flood gates and you let in an enormous, interested, unregulated competition of trades and industries, lobbying and using every kind of indirect influence, to procure and press their own claims, and you have a state of things which happily under Free Trade we have escaped, but which prevails in every tariff country in Europe.
I confess that I attach much more importance to the second Resolution I should like to ask the attention of the Committee to a point which I do not think has been brought before it before, namely, to its ambit and scope, quite apart from the method which it is proposed to apply. This Resolution applies only to manufactured articles. What is the actual state of the case? I do not think that the figures with regard to the importation and exportation of manufactured articles have been quoted. I am using the term "manufactured articles" in the widest sense, as used in the Board of Trade classification, "Articles wholly manufactured, mainly manufactured, or partly manufactured." Our imports, less re-exports, of articles partly or wholly manufactured for the year ending 31st December, 1920, were in value, roughly speaking, £400,000,000—actually £401,000,000, but I take round figures. Our exports of British manufactured goods during the same term were £1,120,000,000. In other words, our exports compared with our imports of this class of goods were nearer three than two to one. Let me repeat the figures. Our imports, less re-exports, were £400,000,000, and our exports £1,120,000,000. I have looked through the list as they are classified by the Board of Trade, and the first observation that I should like to make is that of all the categories under which those manufactured goods, imported or exported, are arranged there are only two in which our imports exceed our exports. They are glass and silk. Our exports of scientific instruments, one of the things that this Bill is specially intended to protect, exceed our imports. The actual figures are: imports, £2,300,000; exports, £3,140,000. With the two exceptions of glass and silk, the exports of manufactured goods wholly, mainly, or partly manufactured in every case exceed the imports. That is one consideration.
I want to impress upon the Committee another consideration, because people do hot examine these things, I am sorry to say; I wish they did. I take now the imports of manufactured goods, which, as I told the Committee just now, roughly speaking, amounted to £400,000,000. No less than 60 per cent., very nearly two-thirds, are articles which are not fully but only partially manufactured. In other words, they are articles which come here to us, a great Free Trade country, the great finishing factory of the world, under the guise, and quite properly from the standpoint of the Board of Trade classification, of manufactures, which are really the raw materials for the subsequent processes of British industry. Of the whole of the £400,000,000 of these imports, only 40 per cent. are fit for the market, that is, fit for being put on the market as they come here in competition with British-made goods. My right hon. Friend the President of the Board of Trade (Mr. Baldwin), in a happy interlude in his speech yesterday, made some play as to what is the definition of raw material. He chose an analogy. He said that it was not very easy to define a gentleman, but that you knew one, and that you could tell one when you saw him. I am not quite sure that that is not a rather summary view of the faculty of intuition in regard to what is a gentleman. When you come to raw material, whatever may be the case in regard to a gentleman, raw material is a most elusive thing. A thing which at first sight, acting upon this simple process of intuition, like the Board of Trade, you would say was a manufactured thing; when you come to strip it and to dissect it, and to analyse it you will find that it comes here as the raw material, not perhaps the rawest of raw material, for some subsequent process of manufacture in this country. There could be no greater fallacy in the world than to treat all things that come here, and that are classified, and properly classified for statistics, under the guise of manufactured articles, as though they were not to all intents and purposes part of the material upon which in our higher stage of industrial development we exercise our capital and labour. When this case is presented to us as a serious case it is very important that we should realise the actual facts.
Dumping! What is dumping? I do not see the Minister of Health in his place. I was obliged to be elsewhere yesterday during the right hon. Gentleman's speech, but I have read in the papers the definition which he gave of dumping, and a very good definition it was from an old Free Trader. He knows better than a great many people what dumping really means. What does it mean in any intelligent sense? It means the deliberate and organised attempt of foreign producers, or, as is much more common, a combination of foreign producers, flourishing as they do under the facilities of rings and trusts which protective tariffs always afford, to flood our markets, regardless of price, with goods which will undermine and, as they hope, destroy some particular branch of British industry. I am an old hand in these matters, and I have argued this question of dumping before many hon. Members now present were here, and I have always said that Free Trade is not a gospel of fiscal quietism or quakerism. There is nothing in the Free Trade creed or practice which obliges any free trader to submit to a process of that kind. Even when it is proved, and it must be proved first of all, then the next thing to do is to make yourself quite certain that the methods you are going to take to counteract it are not likely to do more injury than would be the case if you allowed it to exist. Those are the two conditions upon which Free Traders are quite prepared to deal with dumping.
From the evidence before us, fortified by the figures which I have quoted, there is absolutely no case for saying that dumping in that sense, in the old sense, is any serious menace or peril to British trade at the present time. I am not dealing at the moment with the question of the exchanges. I will deal with that later. There is a very remarkable exhibition which is being held in London, and the other day I was privileged, under the escort and expert guidance of the hon. Member for Chippenham (Mr. G. Terrell), of going round the exhibition, which has been set up at a convenient distance from the House of Commons in order that there might be brought home to us the bloodcurdling lesson, not of German, but of foreign competition. I went round that exhibition with my hon. Friend, who was most courteous and instructive, and I said to him: "Is there a case here, apart from the question of the exchanges, of what we call 'dumping'"? There is only one in the whole of that exhibition in which it could be plausibly alleged on evidence, and proved, that the object had been to sell under the cost of production with a view to displacing industry here. I have gone very carefully into this matter, and I do not believe at this moment that there is any case which anybody could substantiate before any tribunal of any serious injury to British trade by dumping in that sense of the word.
I come now to the second branch of this Resolution, which is the one, I suppose, that really counts. That is the difficulties which arise from the depreciation in the currency of other countries. I should like to ask whether the proposed duty of 33⅓ per cent. is to be charged irrespective of the rate of exchange that prevails as between us and any particular country, because the rates vary infinitely. I suppose that in the case of Poland or Austria the thing hardly exists. In the case of Germany it is a matter of 240 to 250; say 240. In the case of France and Italy the rates vary again. In the case of France I suppose it is about 50. Is this duty of 33⅓ per cent. to be applied impartially all round, whatever the rate of exchange may be, because it is obvious that it must produce very different results? I ask that for the sake of information and not as a matter of argument.
Yes.
It does. Now let me draw the attention of the Committee to paragraph ( b ) of the second Resolution. An Order imposing this duty may be made
But that is not all. There is another problem still in addition to the problem as to the meaning of "similar." There are the words "can be profitably manufactured." What does "can" mean? Does it mean that they are manufactured? Who is to say what can be manufactured? Then what does "profitably" mean? What is the rate of profit? This is a very serious matter. Is it 5, or 6, or 10 per cent.? I want to know. This is to be left to a Government Department. First of all, the articles are to be "similar," then they "can be manufactured," and, in the third place, they "can be profitably manufactured in the United King- dom," the goods being ex hypothesi goods which are not here at all. Did any practical man ever present such a problem for investigation and for determination by the best equipped of all our Government Departments? There is a further point if the Committee will bear with me for a moment. There is no subject on which more nonsense is talked and more confusion of thought exists than the subject of the exchange.
Hear, hear!
My right hon. Friend will see in a moment the reason why I say that. It is because people do not realise that exchange is a reciprocal term. There is no use looking at one end of the exchange without looking at the other. International trade, consisting as it does in the interchange of commodities, not of pieces of paper, not even of bullion, international trade consisting of interchange, the exchange merely means the method or machinery by which that process is to be carried out. Translate that into practice. This part of the Resolution rests upon the theory, which is perfectly true, that a depreciated currency like the German currency gives to the German exporter an advantage in a market like ours. Do people who put forward that argument realise the converse case, that as regards Germany she has to buy dearer in a foreign market owing to her depreciated exchange? It is a very serious consideration, because this is not directed against Germany—though it may be theoretically—it will hit other countries a great deal more than Germany. But take her case. As I said earlier in my speech, from the last figures which we have the Germans are importing more than they are exporting. That means, first of all, that they cannot provide on their own soil and from their own resources the raw material for their exports. It means further that for everything that they import, owing to their depreciated exchange, they have to pay much more than a country which is not in the same position.
Take the case which so few people realise as between ourselves and the United States. We are in the position, not to anything like the same extent as Germany, of having a depreciated currency as between ourselves and the United States. It means this—I am putting it in very rough general terms—that for what we used to get for a shilling from the United States we now have to pay Is. 3d., or something like that. It varies, of course, from week to week and from day to day. But you must always, when dealing with questions of exchange, remember the two sides of their problem. It is a question of interchange. Some people seem to think that Germany is in an enormously improved position, almost an ideal position, because the mark with her to-day is only worth a penny instead of a shilling, but these people make the mistake of confining their attention to one side of the question. That is why I think—I give my opinion for whatever it is worth—that estimated at its face value it is far better for you—I speak now in the largest interests of British trade—not to meddle with the problem at all.
The thing which the world wants is the freest and fullest production and interchange of commodities. That is the only way in which you will ever stabilise exchange. To think that you can do it by artificially preventing or artificially handicapping the importation of goods from Germany or any other country, where the exchange is for the time being in our favour, is an absolute fallacy. The one and only chance of the revival of trade is to break down all these barriers, to allow every country to develop its own resources, in the channels, with the opportunities and with the special facilities with which it is duly endowed, and to have a common interchange without any kind of artificial barrier. To have that I would far rather go on with such drawbacks as may now exist.
My hon. Friend the Member for Chippenham (Mr. G. Terrell) showed me a piano which had come into this country from Germany and was offered to the retailer in the London market—I do not know about the customer—at £50. It came in before the Reparation Act. A corresponding piano as far as I could judge—[HON. MEMBERS: "Similar!"]—this is not a case of weasels or whales at all—but so far as one could judge—and I do not trust myself in these matters—my hon. Friend showed me a piano which he assured me was identical in workmanship, material and in capacity for producing strange sounds, and which was made in this country and was offered to the retailer at £80. One did feel that there was for the moment, at any rate, a very serious grievance. These things are very disquieting, and in the case of some industries, if I may use the phrase, very unemployment-producing, but just in the same way when machinery was first introduced and supplanted manual labour in our great industries there was a great mass of unemployment due to the displacement of old methods by new. But these things are transitory. Apart from this phase of what I admit to be for the moment a serious displacement on a small scale, it is unwise to apply remedies like this which will obstruct the free interchange in the markets, which will increase our cost of production in neutral markets which will give the advantage in the long run to our foreign competitors over ourselves and will do nothing whatever to stabilise exchange.
I have kept the Committee very much longer than I intended, but I may make two concluding observations. The first is—it is quite apart from the merits or demerits of this particular method of dealing what is, after all, a minor, though an inconvenient and a troublesome; situation—that these Resolutions, if carried into effect by legislation, will establish, continue, and accentuate what I believe to be a most disastrous policy of Government control. I saw that there was some confusion last night, some difference of opinion, at any rate, between my right hon. Friend the Minister of Health (Sir A. Mond) and the President of the Board of Trade as to whether or not changes in these schedules and duties were to be within the will of the Board of Trade or not to be operative until they have been first submitted to Parliament. I think that my right hon. Friend said that they were to come into operation unless Parliament disapproved of them. I think that is a very objectionable procedure. You impose new taxation, which, after all, is the fundamental prerogative and privilege of the House of Commons, and if any change is to be sanctioned it ought to come first before the House of Commons and be subject to a veto. It is most unsatisfactory that it should come into operation before the House of Commons has decided on the point. I hope that the Government will give the Committee an assurance on that point.
The other point to which I would like to call attention is more serious—more serious than anything which I have yet said. We are at this moment, quite apart from all these questions of tariff and taxes, in the most serious industrial position which I have ever known. And why? It is no use for Free Traders, or Tariff Reformers, or full-blown Protectionists to peddle with taxation or tariffs in the hope thereby of improving the productive power and the industrial future of your country, unless there is what substantially there always has been in the past years, a real co-operation between capital and labour, the consumer and the State to make the most of the common resources. If you are going to have internecine domestic war, you are going to sterilise or paralyse—it may be for an indefinite time—the productive resources of your country, and these Resolutions, and all schemes for fiscal and financial reform, and even for the reduction of expenditure, are of no value. You might just as well put up the shutters, and surrender to your competitors and rivals in the world at large. The greatest service, I venture to say, which this House at this moment could render to the country and to the Empire would be to make people outside believe, whether they are employers or employed, producers or distributors or consumers, that it is only by the combined cooperative effort of all to make the most of our common resources that we can ever recover our position in the world.
I am sure that whatever the Committee may think about some of the earlier passages of the speech of the right hon. Member for Paisley (Mr. Asquith), they will be in whole-hearted agreement with his concluding passage. Whether we are right in the measures dealing with trade and commerce which we put forward, or whether those who criticise them on the other side are right, I think we can say of the House of Commons that both proposals and criticism are alike designed to a common end, namely, to further what we believe to be the real interests of British trade and British commerce, and whatever proposals may be made or challenged, they become worthless unless we get the whole-hearted support of the people behind the trade and industries of the country. If I may deal with the more contentious part of the right hon. Gentleman's speech, frankly I was surprised, and I think the Committee will have been rather surprised, at the explanation which he gave as to the purport and the intentions and meaning of the Paris Resolutions. If I might pursue the obstetric metaphor, with which he made such happy play at the beginning of his speech, if my right hon. Friend the President of the Board of Trade is the adopted father of this measure, I was preparing to welcome the right hon. Member for Paisley and claim him as the natural sponsor of the measure, because I am sure, in the opinion of the majority of this Committee, and in the opinion of the public at large, these proposals, and the Bill which will be founded upon them, are the natural and lineal descendents of the Paris Resolutions. The right hon. Gentleman read some of those Resolutions, and he explained to the Committee what his view was. Those Resolutions, he said, were entered into at a time when we were fighting for our lives against a great enemy, and they were directed to the situation which was then in existence. That is perfectly true of two of those Resolutions, but the whole of the third Resolution (C) is not of a temporary character at all, but a permanent measure. It is in perfectly general terms, and is solely intended to be, and, on the face of it is stated to be, a measure of a permanent character which it was vital that we should take. My right hon. Friend also stated that those Resolutions had proceeded with the assent, as they certainly had, of the Government of the time. I gather from him that there was some qualification upon the Resolution of a permanent character; but when he explained those Resolutions in 1916 to the House of Commons, it was the Resolutions of a permanent character, as well as of a temporary character, that he was commending to the House, and they were the Resolutions indeed, which, in a discreet disclosure, he ventured to boast that his colleague, Mr. Runciman, the then President of the Board of Trade, had framed. No distinction was drawn then between the temporary and the permanent Resolutions. He said:
The first of these Resolutions deals with the key industries. It was the avowed policy of the Government at the last election to deal with those key industries, and in avowing our policy to deal with key industries we were merely reaffirming the decision which had been taken by our predecessors, the Coalition Government which had preceded us. So far back as 1916, Mr. Runciman, having experienced the tragic consequences of the neglect of those industries in the period before the War, a neglect which cost us thousands of lives, said that whatever we did we must remedy that neglect, and in the most definite terms he affirmed the need for securing the estab- lishment of those industries. The right hon. Gentleman opposite remarks that he says so now. Then, all I can say is that his support in his speech was somewhat half-hearted. Mr. Runciman stated what the industries were. Every one of these industries—glass, chemicals, dyes, electric apparatus, and he said he could name a dozen others—were industries of vast importance not only to a great commercial country, but to a fighting country, that we were placed at a great disadvantage, and never should that occur again.
Are all those in the Bill?
5.0 P.M.
Those are in the Bill. I am prepared, when we come to the Committee stage of the Bill, to justify every one of the key industries which are inserted in the Bill precisely on the test Mr. Runciman applied, and on the test which, when the difficulties were greater, and we were face to face with the reality, were common ground as to the action which ought to be taken. If the lack of them caused untold difficulties in the country, the existence of them in Germany was an untold tower of strength to Germany. If Germany had not had the chemical industry which she had, she would have been out of the War two years before she was. Memories really are very short. We shall have an opportunity of dealing with each of those industries in detail later on and I can then meet the case of the hon. Member for Whitechapel (Mr. Kiley), but I will take two or three of the industries mentioned last night in the course of the Debate, taken at random. One Member challenged the inclusion of scientific glass. I wonder if he is aware that at a very early stage of the War the Sheffield armament firms came to the Government and stated that unless chemical glass and scientific glass could be produced in this country, and produced rapidly, for their use, they could not undertake to go on with the manufacture of munitions of war? Someone else has asked why magnetos are included. Before the War we were entirely dependent on Germany for magnetos. If at the beginning of the War—and it was one of the few oversights of the Germans—the Bosch Magneto Company of Germany had not left in this country very large stores of magnetos, we should Have had no mag- netos to put into the aeroplanes which we were bound to make at the beginning of the War, and we could not have made a single aeroplane.
Take the chemical industry, which is the most vital of them all. The right hon. Gentleman said we should be very careful as to the inclusion of some of these industries, because they were the raw material of other industries. On looking over the election address of the hon. Member for Oldham (Sir W. Barton) I am glad to find that, whatever section of this proposal he may oppose, the chemical industry at least will be sacred with him. In the course of his address he said: laissez faire in excelsis. Then it was said, "What you will require is scientific research." I entirely agree. But how are you going to get it? You will not get scientific research by isolating a number of professors in a college or in a cloister. That is not the way Germany got her scientific research. The way to get scientific research which will be of real value is to build up your industries with scientific men, to give your men of science a chance of a profession in those industries, and to get them working in and for and with the industries. That is the only way in which you can do it.
The next point made by the right hon. Gentleman the Member for Paisley (Mr. Asquith) was that after very careful investigation it might be necessary to afford some measure of safeguard for certain industries, but that even if that were necessary, a duty was undoubtedly the wrong way of doing it. I am a little sceptical, if I may say so with respect, of criticism of that kind. We have met it before. When you introduce one system your critics say: "Ah, it may be right to do what you propose, but this is the wrong way. You ought to try another." Last Session we passed the Dyes Bill. It was criticised, and I remember one line of criticism ran: "Do not let us proceed by licence, do not let us proceed by prohibition, it would a much less objectionable proposal if you were to proceed by way of tariff."
Who said that?
I think, among others, some of the right hon. Gentleman's strongest supporters in the House of Lords.
I am dealing with this House.
Does the right hon. Gentleman only acknowledge Free Traders when they are in the House of Commons, and not' when they are elevated to the other place?
The proper place for them.
What is the right hon. Gentleman's proposal? He says we ought to proceed by way of a subsidy, and one of his reasons for proceeding by a subsidy was that a tariff was too extreme a measure of control. But the right hon. Gentleman himself, when his Cabinet came to deal with the dye industry, decided on a far more extreme method than a duty, he decided on total prohibition, coupled with licences.
During the War.
I think the right hon. Gentleman's memory is a little at fault. It was started during the War, but the pledge given by his Cabinet was that the industry was to be protected by prohibition and licences for 10 years after the conclusion of the War. Let us examine for one moment whether a subsidy is really the most effective way of achieving what you want. I should have thought, by the way, that it was not a very easy task to ask for still further subsidies from this House. I am rather surprised that such an economic purist as the right hon. Gentleman has made that suggestion. But we will put aside the financial question. Anyone who has gone into the question of subsidies, and the Government have gone into it very closely in this connection, is at once met with the extraordinary difficulty of finding a basis upon which a subsidy can be given. You must give sufficient security and certainty to the industry to attract capital to it. If you do not do that you will have to go on indefinitely increasing your subsidy. In that case, you are landed still deeper in expense, or else, if you do not pursue that course, your experiment has failed and you fail to keep your industry. Then you have to take some test. The easiest way of doing it—the way which has been tried in some cases—is to subsidise costs or to subsidise dividends. To guarantee a return is perfectly impossible. There can be no greater way of getting inefficiency of production than by a process of that kind. Then you try to find some other means. You try to find some index on which a subsidy may be worked. A suggestion has been made that you can proceed by percentages on sales or values of goods produced, but you get landed in difficulties there. You have to have a vast army of inspectors carrying out inspections of the company's accounts, which become almost impossible. You run the risk of inducing the person you are subsidising to magnify the index in order to get greater subsidies. For example, if you are subsidising on the quantity produced, he has a direct incentive to produce poor quality in large quantity rather than good quality in proper quantity, and you have also all the difficulty of checking sales. Last of all, the right hon. Gentleman was eloquent, and rightly eloquent, as to the misfortune of excessive Government control. I ask the Committee, "What is the control of a subsidy which is administered in a way in which you can control it, as compared with a control of a tariff under which you merely put on a duty when the article enters a port?" No one who looks impartially at the question will come to any other conclusion than that a duty is the best method. It gives certainty to the producers, it gives the same treatment to all the producers, and as nearly as possible it reproduces the conditions which would exist in a country were either its natural or its developed resources on the same scale as those of other competing countries. In these circumstances I venture to say that we are entirely justified both in the aim and in the means that we have taken.
The second Resolution deals with the question of dumping. I have not very much to say upon that, because I do not think any arguments of real weight have been advanced against it. Whatever dumping is, it certainly is not Free Trade. It is a deliberate attack on an industry which every country is bound to resist, and I really do not think the Committee will accept the argument of the right hon. Gentleman the Member for Paisley that, because dumping may not be going on at the present moment, we are to close our eyes to the possibility of its arising in the future, and exclude it from the Resolution. It has been said, When will dumping come again? When we get a condition in which manufacturers have great stocks upon their hands which they have difficulty in selling. That is exactly the time when you may find a very determined attempt to dump in this country.
Finally I come to the question of exchange. No one denies that that is a question of very considerable difficulty. The right hon. Gentleman the Member for Paisley made great play with some very amusing criticism, but at-the end of it he had not minimised any of the difficulties, and he had not helped any manufacturer to conduct his business better. He has not helped anybody. What is the position? You have an entirely new factor. You have the undoubted fact that in certain countries the depreciation of the exchange and the difference between the external and the internal value of the currency operate as a direct bounty on the export of manufactures in those countries. The provisions of these proposals are designed to eliminate that adventitious aid and to do no more. Whether the proposals be right or wrong, an attempt to eliminate their adventitious aid promotes equality of competition and is entirely consistent with the purest Free Trade doctrines. There is no doubt that the bounty is there and that injury is being caused to our industries by it. We are told by our critics that we can wait for it to pass. How long must we wait before it passes? We have waited some time. The situation has not become better, and in the case of our greatest competitor, Germany, there is the strongest evidence that she is deliberately trying to perpetuate the difference of the external and the internal value of currency as a considered policy. It is no good waiting for things to come right. In reply to one of the speeches made from the Opposition side, to the effect that no trade was being injured, let me say what is the experience of manufacturers whom we have seen at the Board of Trade. After the British Industries Fair I received a deputation representing all the industries that were represented at that fair. They presented me with their considered opinion in a resolution stating that the operation of the depreciated exchanges was working as a bounty against them, and that they found it extraordinarily difficult to compete with it.
The right hon. Member for Paisley made great play with a number of gross figures. Incidentally he took the year 1920, which was a great boom year, when the position was very different from that of to-day. You cannot test this thing by volume only. Everybody who has been in business knows that trade may be stopped, not simply by a great volume of imports, but may be effectively stopped by comparatively small importations coming in as samples with an offer of goods on a large scale at the same price. Orders given for such goods will affect trade. The right hon. Gentleman quoted certain figures of German trade, but I find from an analysis, taking the year 1920 and comparing the exports of British produce and manufactures with the imports from Germany, that the imports from Germany were worth £31,000,000 and our exports to Germany were only £21,000,000. There was, therefore, a direct adverse balance against us, and that was natural, because we are the nearest market and the first to suffer. The right hon. Gentleman made great play with jests about what is and what is not raw material. Merely to say that it is difficult to define raw material does not get rid of the real facts and difficulties with which you are confronted and is not an effective alternative policy. The right hon. Gentleman quoted to us, with characteristic charm, a well-known passage from "Hamlet," which was hardly apposite but was extremely entertaining. When it came to practical application and the right hon. Gentleman went with the hon. Member for Chippenham (Mr. G. Terrell), to see the exhibition, I noticed that he had no great difficulty in distinguishing a German piano when he saw one. I think the right hon. Gentleman is doing himself an injustice if he thinks that anyone engaged in operating the Customs duties will have any difficulty in distinguishing or comparing a German piano and an English piano, or a German pair of boots and an English pair. As I say, the quotation he gave did not seem altogether apposite. I will give him one more apposite. In one of his essays, my right hon. Friend the President of the Council (Mr. Balfour) discusses whether there is any real difficulty in taking action, or arriving at a definite conclusion because you may be in difficulty about precise definitions, and he comes to the conclusion that there is not. He says, "Though the naturalist may be in some difficulty to define life, mankind in general is not embarrassed to distinguish the living from the dead." I do not think the Customs officials or the manufacturers of this country will be embarrassed to distinguish raw materials from manufactured goods.
An hon. Member has expressed the views of the Labour party on the subject of these Resolutions, and he made a very interesting speech, but at the end of it I was not sure whether or not he wanted us to take action. Whatever may be his view, there is no uncertainty about the deputations which my right hon. Friend the President of the Board of Trade and I have received from many Joint Industrial Councils. It has been pointed out to us by the workmen that they are Jip against real and practical difficulties in their industries. The experience of the Councils has been very different as expressed to us from the laissez faire suggestion made by the hon. Member for Central Edinburgh (Mr. W. Graham). Have we not been urged over and over again in this House, in dealing with the question of unemployment, not to adopt palliatives, but to go to the source of trouble. We propose in these cases to go to the source. We are introducing these proposals, not because we have arrived at some indeterminate compromise, not merely to give effect to our election pledges—why that should be considered immoral or unexpected I am at a loss to understand—but because we believe that the policy enshrined, the policy laid down in the Paris Resolutions, and confirmed by the considered judgment of the Balfour of Burleigh Report, has already been justified, and more than justified, by the march of events; because we are determined that the great industrial community in this country shall receive that measure of help which the experience of the War and the experience of the peace have alike taught us are essential for their development and security.
In rising to address the Committee for the first time, I am sure I shall receive the consideration always shown to a new Member. At the outset, may I congratulate my hon. Friend who has just spoken on the admirable speech he has made? The argument he has submitted to the Committee carry us a long way in giving our full support to the Government on these Resolutions, and ultimately in passing a Bill. May I also, as one who is an old protagonist of the policy outlined in the Resolutions, congratulate the President of the Board of Trade on the courage he has shown in giving the House an opportunity of making the measure of equality indicated in these Resolutions a permanent part of our national policy? The legislation which these Resolutions precede has been too long delayed. The proposed Bill is not a tariff Bill; it is a much needed relief to many of our industries. It involves considerations of national safety and the continuity of employment for our workmen. The right hon. Member for Paisley (Mr. Asquith) made delightful play with the interview between Hamlet and Polonius. The right hon. Gentleman forgot, I think, that the outstanding characteristic of Hamlet was his difficulty in making up his mind. I would suggest respectfully that if the right hon. Gentleman and his colleagues in a former Government could have made up their minds, the fiscal and industrial position of this country to-day would not be in the deplorable state in which it is. One may say of the right hon. Gentleman that he finds himself to-day in the position of a certain character of the lower world, not very often quoted with respect perhaps, who at one time was sick and at another time was well. I will not inflict the full quotation upon the House.
In these Resolutions the three considerations of the period, the percentage of the duty, and the means of determining that duty, will all commend themselves to the House. My idea is that the period suggested with reference to the first Resolution will give the country ample time to satisfy itself as to the advantage of legislation of this character. In the state of a great many of the industries of this country some of us would like to see the 33⅓ per cent. considerably increased, but I am quite certain the Government in fixing that figure did its level best to meet the general view expressed by certain necessarily conflicting elements in the industrial world.
I would appeal to the President of the Board of Trade to give some special consideration to one or two articles or commodities which have been referred to in this debate, and have also been the subject of discussion outside the House. I would ask him whether, in view of the essential character of optical glass he would consider making, in that case, a subsidy, in addition to its inclusion in the Bill. I am informed on the best authority that optical glass manufactured or in the process of manufacture in this country now, will not be able to hold its own with only this measure of assistance, namely, the 33⅓ per cent. and the additional 33⅓ per cent., which may possibly be added under the second Resolution. Even with that, I am told, it will not be able to maintain its competitive power against optical glass from Germany. I suggest the same thing in regard to chemical glass. Magnetos were mentioned frequently during the War, and were among the articles to which special attention was called by Mr. Runciman in the speech referred to by the Parliamentary Secretary, and I should like to urge that special consideration should be given to them. I have a quotation for German magnetos—the Bosch magnetos referred to by the Parliamentary Secretary—and they are offered in this country at £4, whereas the actual cost of production, without any profit whatever, of similar articles in this country is £8 15s. Obviously, the measure of security offered for the protection of that article in these Resolutions can hardly be regarded as adequate.
I know that the details regarding these different commodities will be examined in Committee, but as various articles have already been specifically mentioned in the course of this Debate, I think I might draw attention to one or two more. In the case of the electric lamp, which is not included in the Resolution No. 1, it will be remembered that at the outbreak of the War the organisation created by the three great firms engaged in the production of this article greatly benefited the country. Light was required both by night and by day for production and transport purposes, and why the electric lamp has been excluded is all the more difficult to understand when you remember that electric lamps were included in the Imports and Exports Regulations Bill of last year. The lamp industry involves a very far-reaching consideration. When the War broke out there was an immediate demand for special kinds of lamps. We had the daylight signalling lamp and the invisible blue Admiralty lamp, that wonderful sound-ranging apparatus which was employed with so much success at the front. These could only have been produced by a highly organised industry such as then existed, and would not have existed, had it not been for the public spirit of the great producing firms to which I have alluded.
There are also the valves employed in wireless telegraphy, and which indeed revolutionised wireless telegraphy. They also had to be produced in very large numbers, and they could not have been made available for the purposes of the Army and Navy had these industries not been organised on a large scale. Therefore I plead with the Committee to sympathise with me in my request that the Parliamentary Secretary should consider whether or not something can be done for the electric lamp industry. Let me point out that the Electric Lamp Association produces 95 per cent. of the whole of the lamps produced in this country. I have no doubt some hon. Members will reply by referring to the criticism passed upon it by a Committee. It is true that the Sub-committee of the Standing Committee on Trusts made a Report which was unfavourable to this great organisation of the electric lamp industry, but in point of fact was not justified, because in regard to the price of the lamps, had the Association so desired, a much higher price could have been obtained during the War, and I may mention that while the Report received wide publicity in the Press, very little space was given to the reply of the Electric Lamp Association. At the present moment America produces 200,000,000 of these lamps against 23,000,000 in this country, and you can see at once how they could undersell us with the greatest facility. Holland and Sweden are also competitors, and these are countries which have been practically untouched by the War. All that is asked by the promoters of this great enterprise is that for a short period of years they should get some measure of consideration in order to establish themselves.
I would like to support what my hon. and gallant Friend the Member for Central Wandsworth (Lieut.-Colonel Sir J. Norton-Griffiths) said yesterday with regard to incandescent gas mantles. I support his view, not because of the particular articles he cited, but because of the value of the gas mantle in the conservation of the coal supply. The employment of the gas mantle in the conservation of coal is equivalent to 32,000,000 tons a year as against the employment of the "flat" flame. The Report of the Lord Balfour of Burleigh Committee states: steps were taken at the request of the Ministry of Munitions to produce these articles, but to-day the American sparking plug is being sold at 1s. 4d. while our cost of production is 1s. 9d. Electrodes are another manufacture for the inclusion of which I should like to plead. They are the means of conveyance of the current used in the manufacture of tungsten steel and other alloys. In the course of the War we were obliged to set up factories for their production, because they were found to be vital, and if you protect the are lamp carbon, why not also protect the electrode? If tungsten steel is necessary in the manufacture of aeroplanes and tanks, why not protect the electrodes without which tungsten steel cannot be produced? May I also say a word about magnesium products? They were absolutely essential during the War, and the industries set up at the request of the Government to produce them are now struggling, and, unless they receive consideration, will be wiped out. The last industry for which I would make an appeal is the production of vitrified grinding wheels. These are necessary in the production of machine tools of all descriptions. Before the War they were all imported from the United States of America. A little industry has now been built up here, and I hope the Government will consider its inclusion in this catalogue of those entitled to protection.
In the Debate yesterday I was particularly struck with the speech which came from the right hon. Gentleman the Minister of Health. I commend strongly to the Committee the arguments adduced by the right hon. Gentleman. He made an open confession which was infinitely consoling to those of us who for a long series of years have been endeavouring to secure some measure of safeguarding for our national industries. Nobody could listen to that speech last night without feeling that somebody had learned something during the process of the great War. We are, as has been said, thinking of the defence of the country much more than about riches. Defence is more important than opulence, as has been quoted from Adam Smith. War is, after all, the test. There is little good in boasting about our great economic expansion if we are not prepared for that test. All the British manufacturer wants is a square deal. He does not want any special measure of mollycoddling. He is prepared to put his back into the work and make the best of his opportunities, if this House will give him a reasonable period of time and adequate safeguards to enable him to tide over a difficult period. A great deal was said this afternoon by the right hon. Member for Paisley, and last night by other speakers, on the import of cheap goods. They seem to think that the economic policy of this country ought to be a wholesale flooding of this country by cheap goods from abroad. Cheap goods, no doubt, have their advantages, but where is the import of cheap goods to stop, and what are our people to do in the meantime who have to earn their living out of the production of cheap goods? I think it is far more important that we should give more thought to the possibilities of our home market and encourage the production of cheap goods in our home market by protecting them against the unfair competition of cheap goods from; abroad. Hon. Members would be well advised not to give so much attention to the import of cheap goods from abroad as to producing, under adequate safeguards, similar goods in this country. I hold that the producer and the consumer in this country are the same person, and that producer, consumer, and distributor all depend on the efficiency of production at home under the most favourable terms that can be found for them.
I sincerely hope the Committee will support these Resolutions, and that the Resolutions will be embodied in a Bill, which, when passed, will, I am confident, confer very far-reaching advantages upon the industrial community of the country. As a new Member of this House, I have been very much astonished at the attitude of the Labour party towards questions of this character, because, if the Resolutions mean anything, they mean a larger field of employment for the working classes of this country, and I would respectfully suggest that the Labour party ought to take a more far-sighted view of the objective of this legislation, and give their support to these Resolutions and to the Bill which is to be founded upon them. I agree entirely with the right hon. Member for Paisley in what he said at the close of his speech. This country is passing through an unexampled crisis, and I am sure there will be agreement on all sides that employers and employed ought to be brought more closely together. Some kind of permanent policy should be devised in order that a recurrence of violent trouble should be obviated, and I think the introduction of legislation of this kind, providing adequate safeguards, so that industry should employ vast numbers of people, will to some extent contribute to that better understanding between employers and employed which everybody, inside this House and out, desires to see.
I apologise for this first effort in this House, and I do not desire to detain hon. Members any longer. I am trying to observe as carefully as I can the precise rules laid down for Members of this House by the right hon. Member for South Hammersmith (Sir W. Bull), which will, do doubt, be familiar to Members of this House, but I should like to say, before resuming my seat, that in the country the vast mass of people who ought to be in employment, and the vast mass of employers who are struggling to find opportunities to give continuity of work to their workpeople, will welcome these Resolutions as the basis of legislation which we hope will result in a new industrial policy, a new means whereby the employer and the workpeople will have a fair opportunity against the unfair, State-subsidised competition of great communities abroad. What we all aim at is the improvement of the economic conditions of this country. I believe these Resolutions tend in that direction, and therefore, with great respect and with great sincerity, I give them my entire support.
May I congratulate my hon. Friend who has just addressed this House for the first time? If I may say so, I think his advent here has added distinctly to the debating power of the House, and in many ways he showed that he has already acquired what is called "the Parliamentary manner" I listened very carefully to the speech of my hon. Friend the Secretary to the Overseas Trade Department, and he seemed to base his case almost entirely upon the Paris Resolutions as being a justification for the Resolutions now before the Committee. I do not wish to approach this subject from any partisan point of view. Having regard to the present industrial position in the country, I think we should all take these Resolutions from the point of view of what is sincerely believed to be best for the whole trade of the country. I feel sure that that has been the general view so far as it has been expressed by hon. Members, and I listened very carefully yesterday to the speech of my right hon. Friend the President of the Board of Trade. Possibly he will pardon my saying that while no one, as a rule, states a clearer and more efficient case than he does, if he has any enthusiasm for the Resolutions now under consideration, he concealed it in the most successful manner. I wish to say a few words on these Resolutions as a Coalition Liberal. At the General Election certain pledges were given upon fiscal questions, and as a Coalition Liberal I accepted the pledge regarding key industries and dumping. I have a sincere desire to carry out any pledge which I have given, and I do not wish even now to insist, so far as the Government are concerned, upon a too meticulous interpretation of the pledge given in November, 1918, but while I accepted that pledge, as we all did, it surely cannot be argued that we Coalition Liberals must of necessity therefore accept the present Resolutions as they stand.
As, they have been presented to the Committee, I can only say personally that I am not prepared to accept them or assent to them without alteration and further explanation. I first of all disagree with the duration of the period of five years, and that after all is the special Amendment we are considering now. I agree that the introduction of certain fiscal legislation was inevitable, but it was also inevitable that such legislation would be subjected to the closest scrutiny, not only by Coalition Liberals in this House, but also by Conservative Free Traders, of whom there are a greater number than is sometimes either realised or appreciated. I therefore suggest to my right hon. Friend that he should reconsider this question of five years. I agree that if any alteration is to be made, business men must have reasonable time in which to make their arrangements, but I regard five years as far too long a period in which to put into operation what is after all an experiment on a somewhat extensive scale.
I want to say a word about the first Resolution, which refers to key industries. As a lifelong Free Trader, it came with something like a shock to me to see the Government set down in cold print that it is proposed to protect certain industries by a duty amounting to 33ࡩ per cent. I certainly never anticipated that a duty of that extent would be imposed even to preserve any key industry. It was a duty which I am sure the late Mr. Joseph Chamberlain never contemplated, even in his wildest dreams, and I suggest to the Government that if it is necessary to protect these key industries, a duty much less in extent is quite sufficient for the purpose. Let us remember that these articles which are specified as key industries are not only necessary for war purposes, but are very largely used in ordinary commercial life, and it means that to whatever extent you impose an import duty upon these articles which are so required, to that extent you are penalising and raising the cost of production of business firms engaged in trades where it is necessary to use these commodities. In these days, when we want to reduce costs, and above all things it is necessary to reduce the cost of production, we should hesitate very much before we agree to such an impost as that suggested by the Government. I should rather like myself to be a manufacturer of goods coming under the category of key industries. I should suggest that it is about the soundest thing to become a manufacturer in certain key industries if this Bill goes through as it stands, even if under this protection one does not conduct one's business with that efficiency which open competition always demands.
I wish now to refer to dumping, and may I say at once that I accept the definition of dumping given in this Committee yesterday by my right hon. Friend the Minister of Health. It is rather important, and I should like to read it to the Committee. He said: mind when I accepted that historic document called the coupon, which many sought and found not, but I did not imagine that any other interpretation than that which was stated so clearly by the Minister of Health would be placed before the House in these Resolutions. It will be within the recollection of most Members here that when the pledge was given upon dumping, a further definition of dumping was very clearly stated by the Prime Minister in his letter to the late Leader of the House. That letter was dated 2nd November, 1918, and there he stated that the definition of dumping was the selling of goods in this country below the cost of production in the country of origin.
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That definition I accepted. I believed it did not trench in the remotest degree upon the principles of Free Trade. The definition does not appear in the Resolutions now before the House. It has been changed to what is called "wholesale price in the country of origin." That is a very wide departure from the original pledge. We are entitled to some more explanation than has been given as to why this change was necessary. I do not think it fair or generous of those who have made a certain pledge on this subject to extract the strictest possible interpretation of the letter of the pledge. We should not interpret a pledge of that kind in anything but the spirit, and I should be quite satisfied if the spirit of the pledge were carried out. I suggest to my hon. Friend, who knows more about business than I do, that if this Resolution were amended by a reduction of 10 per cent. from the selling price, it would at least bring it to, or approximately to, the cost of production in the country of origin. I believe that such alteration would satisfy the Free Trade supporters of the Government so far as dumping is concerned. We may, as is suggested, be easily satisfied, or we may not, but we have taken up a certain position in this matter, and I, for one, do not wish to depart from it in spirit.
At the same time this question of dumping is very much exaggerated. I never could understand why it caused to Tariff Reformers so many restless days and sleepless nights. They seemed to regard it as a nightmare which disturbed their rest while, in point of fact, we ourselves have taken a very considerable part in that form of commercial activity which is called dumping. I do not know whether my right hon. Friend is prepared to make that concession. We shall possibly hear later. Certain it is that it has never been demonstrated to my knowledge that dumping has ruined any particular industry in this country. It is quite possible under the definition given yesterday by the Minister of Health that such action by foreign countries might seriously injure this country. I am prepared to accept that as a possible contingency, but I regard it as so remote that I do not object in the very slightest degree to the Government making a certain provision for it.
In the second Resolution there are two subjects dealt with, and I am very surprised that the Government in this one Resolution have dealt by the same method with two very different subjects. The one is dumping and the other is the question of the collapsed exchanges. I hope when the Bill comes before us that these two matters which are widely divergent will be dealt with under separate categories. My right hon. Friend the Member for Paisley (Mr. Asquith) referred to-day to the question of currency and exchange, but he dealt with it in a very cautious manner. The average man is very wise who deals with that intricate question very cautiously and with the utmost respect. I can only say that I am filled with admiration and envy when I hear one or two economists in this House explain fluently and glibly all about currency, and how the exchange can be stabilised. My envy, however, is sometimes tempered by just a shade of doubt as to whether the speeches on that subject are as wise and as convincing as they are fluent. I will not venture into any discussion on the question of exchanges. I have attempted in some ways to study it. I do know it presents so many difficulties and there are so many pitfalls that I prefer at the present time not to deal with it in any special way. I have consulted a number of business men who do know something about the exchange, and I have had conversations with several bank managers who are not regarded favourably by the Minister of Health. They all seem to take one view, and that is that any artificial method of dealing with the exchanges and attempting so to stabilise the exchange will not be successful. I do not know whether I am prejudiced as a Free Trader. I have tried to look at this matter dispassion- ately, but the more I study this question, the more I try to understand it, the conviction becomes stronger every day that you will only right the exchange by the-free flow of international trade. I cannot see any other method. That is not the view which is held only by Free Traders; it is held outside this House by at least many men of high business standing who are not connected with any political party.
In some ways we live in a very unreal atmosphere in this House. We speak about what we are going to do for trade, and how we are to stabilise the exchanges. We forget that the businesses of this country, the great commercial structure of which we are all so proud, have not been built up by this House, but independently of it—sometimes in spite of the House of Commons. If there-is one feeling stronger than another to-day in business circles it is that business men should be allowed "to dree their ain weird"—to work out their own salvation, and to have the withering and paralysing hand of Government control altogether removed. It seems to me that these Resolutions do not make for that end. I have been in business all my life. I know something of its difficulties and intricacies. I do know that this country has prospered most when it has been free from trade restrictions of all kinds, and when we have had the markets of the world open for manufactured goods and raw material.
I am quite aware that the War has changed many things, and it is foolish, in my opinion, to regard post-War conditions from the pre-War point of view. The War has changed conditions in many ways. It has not changed the multiplication table. It has not changed the view that freedom of trade in the widest sense is essential to-prosperity. I do not take this view as a Free Trader. If I am convinced that collapsed exchanges are causing serious unemployment in this country, that dumping is ruining industries in this country, I am not going to fold my arms and say I cannot touch the matter because I am a Free-Trader. No sensible man who is not a doctrinaire would take that view. While, however, it is a case for considering our whole policy at the present time, the times, are far too serious for rash experiments. I think the Government should hesitate-before it forces through the House, ex- cept, at least, in an altered form, the Resolutions which are now before it.
I have been trying to make out from the speech of my hon. Friend the Parliamentary Secretary whether these Resolutions are being submitted to the Committee in order that we might be prepared to win the next war or in order that we might effectively deal with the evils resulting from the last war. The statements made by some hon. Members with regard to our position during the last war were at best a most melancholy reflection, and the view of the hon. Gentleman appeared to be that the experience we had undergone in certain phases of that war must now drive us to the conclusion that it was the imperative duty of the Empire immediately to prepare, by way of some form of artificial support to our industries, for the victory that in the next war must be assured tous. I confess I have been very much depressed by some of the speeches which have been pitched more or less in that key. Comment would appear to be desirable upon the policy of our Government in not producing that sort of peace which would make the speeches of the kind to which I have referred unnecessary, and which would give us some substance of what the country was promised when the War was being fought, some permanency of peace at least for which it was said the War was being fought.
I would suggest, as the more immediate and solemn duty of Ministers, the cultivation of the peace spirit and the pursuit of the task of maintaining in the world an organisation and machinery that will enable nations to settle their differences without resort to war and without spending so much of their time upon these, I think, completely fruitless devices, using all trade as a war agent. A device of this kind does not offer any excuse to the Government to neglect, for instance, any effort to set up the machinery of the League of Nations. We cannot separate these questions. The speeches to which we have listened compel us to address ourselves to these points. If we have, as we appear to have, an alternative to taking that line to make victory more assured, and the line of making war impossible, or very nearly impossible—if we have the choice of these two courses—I myself would prefer to see the Minister adopting the line of seeking to maintain peace instead of using our trade for the purposes of war.
I want to ask a few questions. Which of these two objects have the Government in mind in presenting these Resolutions? Are we to seek to apply this tariff of 33 per cent. in regard to the import of particular articles for definite war purposes, or is it that we are applying this tariff for the purpose of improving trade and dealing with the problem of unemployment. [HON. MEMBERS: "Both!"] The two extremes are indeed so remote that I think some attempt should be made to justify the claim that these proposals are being made for both these purposes. I could understand them being made for either of those purposes, but the motives must be so dissimilar that I cannot accept the view that these Resolutions are being put forward for both purposes. I address myself to this subject without any traditional commitments or any ordinary party attachments in regard to the principle of Free Trade or Protection. To me these things are not principles at all. Any such question is to be one of expediency as to what it is best to do in the interests of the nation, and in the interests of the industry. Therefore I am untrammelled by any party attachments or by party principles in approaching this subject.
In regard to the Paris Resolutions, I never understood that they had any bearing upon fiscal doctrine. I think it is true to say that there would have been no Paris Resolutions had there been no Vienna Resolutions, and had there been at Vienna no conference of the Central Powers there would not have been at Paris a conference of the Allied Powers. What was done in this respect was done as one of the steps in the progress of the War. Therefore, those of us who did not express a word of disapproval in regard to those pious Resolutions should not be taken to have assented to what was done at that time as part of the use of an economic weapon by the Allied Powers against the Central Powers. These Resolutions seem to apply one simple doctrine to three very different sorts of things, and even a Coalition Government is not justified in drawing upon the belief of Members of this House and the country as to assume that such a uniform bottle of medicine and such a uniform theory will deal effectively with these three difficulties Dumping, the key industries, and the ex- change trouble are surely so dissimilar as to require something very different from this one sweeping proposal to be applied to all three regardless of what the result may be.
As to key industries, the speech of the hon. Member who addressed us for the first time (Mr. Hannon) illustrates the difficulty of trying to identify a key industry or getting different men to agree upon what is a key industry. The hon. Gentleman said that several very deserving cases had been left out of this list, and when in Committee we come to deal with this question in detail, we shall see the impossibility of getting men of the greatest experience in industry and business to agree as to what is the accurate list that should be compiled in regard to our key industries. On behalf of hon. Members for whom I may claim to speak, I readily agree that if we can identify a key industry as one which in itself is a key to the door of national safety, then it becomes the business of this House to do whatever it can to use that key effectively, but to take such a list as we have had through the post in circulars addressed to us shows at once that they are lists sent forward, not with any deep regard to the nation winning the next war, so much as an immediate regard and desire to win the utmost we can out of a particular industry and intensify a false form of State protection.
I agree with the hon. Member who has just addressed the House that there is only one cure for what are now our particular troubles in regard to exchange, and that is an increased and a fuller and freer flow of commodities and interchange of goods and articles as between buyer and seller and country and country and people and people. You can never rectify this by any artificial means. In previous Debates on certain aspects of the industrial problem, we were informed that the Government had been in consultation with bankers and men well informed in the highest regions of finance, with a view to seeing whether something could be done to repair the damage done to our exchange by artificial means or by some system of regulation that would assist our trade. I gather the conclusion was that nothing could be done. We were told in the King's Speech, when the Session opened, that the questions relating to exchange and unemployment could not be dealt with by legislation. What are the influences which since then have driven the Government to press these Resolutions upon the House, which later on are to be brought forward in the form of a Bill? I agree as to dumping that if articles or materials of any kind are dumped in one country, in unfair competition with articles produced in that country and with a deliberate intention to destroy an industry, if you have proof of any action of that kind, any step that can be taken to prevent such wilful destruction of home industries would be fully justifiable; but how can a case be made out for the method now before the Committee, of a uniform 33 per cent. upon all these varied troubles which have been discussed from time to time?
This may be a small matter in the mind of the Coalition Government, but the point is not unimportant as to how far these proposals to depart fundamentally from the established fiscal system of our country are justified by the results of the last election. I suggest that there is no mandate whatever either from the working classes or from the employers in the result of the last election for such proposals as these which are now before us. In what might be termed the old days of the tariff reform discussions an import duty of 33 per cent. was a figure-that the most extreme tariff reformer never hoped to reach. Although that figure would be of no service whatever in respect to some of the instances given in the speeches to which we have listened, and more particularly to some of the cases which we were able to inspect and examine in relation to the exhibition recently held quite close to this House, I do not know whether anyone responsible for that exhibition could answer the question I would like to put with regard to my own experience after an examination of certain articles, because I found the difference in price not of 50 or 100 per cent., but I am sure in some cases it approached 200 per cent. How is this proposal before the House going to deal with that situation? The question I want to put is what explanation is there in the case of those articles as to where the enormous difference between the price at which the importer buys the articles, and the price at which the consumer buys them is going to go? You will not track or locate that enormous difference by resolutions of this kind, and your 33 per cent. duty will only make still worse the helpless position of the consumer. [HON. MEMBERS: "No, no!"] I shall be happy to get some evidence from hon. Members who dissent from that proposition as to where that enormous difference will go. If devices of this sort operate through the Board of Trade can be used with effect, surely the Board of Trade or employers of labour, commercial men, importers, and dealers can give us some information as to who it is that takes the enormous difference to which I have referred.
If these proposals in the slightest degree tended to reduce unemployment and ease the industrial situation, I can assure the right hon. Gentleman opposite that we would most eagerly give him such support as we could to get them through, for there is no more serious domestic problem at the moment than the problem of unemployment. It is because we are convinced that this line of policy offers no escape at all that we oppose these Resolutions. I think I am entitled to ask whether there is any representative or authoritative body of opinion able to speak for organised workers or employers who have asked for this line of policy. As to the Trade Union Congress nobody has thought it necessary to call it together because this step is threatened, but I know that that congress, which is a most representative national organisation competent to speak for the organised workers of this country, with a membership of more than 6,000,000, would, I am sure, unanimously repudiate such a remedy as that which is suggested in these Resolutions. No considerable number of employers able to speak for the industries of the nation, authorised to give an opinion on these higher branches of industry, has said that the line of escape or improvement can be sought by supporting these Resolutions. It is true that here and there a particular firm or a small association of employers could be found to support this remedy, but I suspect it all the more on that account.
I am sorry to interrupt the righ hon. Gentleman, but may I point out that a well-known delegate from the Union of Gas Mantle Workers appeared on a public platform in a town hall and pressed for the inclusion of gas mantles in this particular Resolution?
It is some such view that I am trying to convey to the Committee. I am saying that no national, representative or authoritative body, competent to speak for industry as a whole—either for employers or employed—has said that national improvement can be found on the lines of these Resolutions. I know that there are particular cases, and indeed I have personal knowledge of the case to which my hon. and gallant Friend has referred. What has happened there—and it is true in a number, perhaps not large, but still a number, of similar cases—is that in Joint Industrial Councils existing to deal with certain matters relating to the interests of the trade, like work, wages, and so on, faced with the existing conditions of employment, and influenced by a desire to prevent worse conditions from following, the workmen who have represented the trade union side have agreed to support Resolutions brought forward by the employers. In every case, so far as I know, the initiative in the passing of these Resolutions was taken by the employers. They put forward the case, and I think that in many cases it is true to say that the workmen who have been present have not been possessed of the necessary information for dealing with the questions under discussion. Resolutions have been passed, very largely, without knowledge of the broader or wider aspects of the case as it affects, not a particular industry, but the industries of the nation.
I myself seek for trade improvement, not along the lines of resolutions which would still further increase the strength of the trusts and syndicates which, in this country, have gone far to wipe out almost all competition. Tariffs have fostered trusts. One of the Members of the Government, who was some time ago the Chairman of the Committee on Trusts, has told us that 80 per cent. of the principal businesses of this country are now under the dominion or direct influence of trust operations. That is not a good thing for the country. It certainly is not a good thing for the consumer, and the results do not show that it has turned out to be a good thing for trade. It is no good, clearly, for employment, or the situation would not be as bad as it is. The effect of these trusts has been to make things more dear than they otherwise would be. Dearness is the most formidable cause of trade dislocation. Indeed, one of the greatest, if not the greatest, trouble in relation to our state of prices is the inability of people to buy the goods which others are ready to produce, because of the rate that they must pay. You will not effect a state of cheapness by adding to the price of the article at your very doors. The effect of these provisions, clearly, would be to make more dear still the various commodities which must be bought as they arrive. How can you, then, by adding to that state of dearness, hope to get nearer to that balance of prices which existed before the War, or at any rate was not such a serious difficulty for many of our trades as in these later days?
The safety of our industries can be sought, not in syndicates or trusts or tariffs, but in the fullest possible freedom—subject, of course, to the qualifications or conditions I have already named on the three points of dumping, exchanges and key industries. This is but the beginning. At the end of that period of five years, and, indeed, long before that limit is reached, you will find the Board of Trade harassed by all manner of approaches and clamant demands for the inclusion of this, that and the other interest; and more and more the consumer will be in the grip of these interests, whose concern mainly in trade is to exact in the shortest time the utmost possible profit they can. An hon. Member asked, what about wages? I am deeply interested in defending, if I can, the interest of the producer, and I want to prevent the coming into this country of what are known to us as sweated goods. Here again, however, there is the difficulty of identification. If you can locate articles as made under sweated conditions—meaning thereby conditions of low wages, bad surroundings of employment, unduly long hours—if you can identify articles produced under such conditions, then I say that they ought not to be allowed to come into competition in this country with articles made under good conditions and with the payment of proper wages. The cure for that is protection at the source—the protection of the producer, the establishment in the country, whichever it may be, of such conditions of labour as will make sweating an impossibility.
Labour says that you can better seek the community's good and the general in- terest of the consumer on lines of international legislation, for which, already, a good deal of provision has been made, than by picking and choosing particular interests and protecting them after they have been created. In two or three important particulars the Government has gone some way towards the discharge of its duty on this question of international legislation, but in respect of others a great deal remains to be done. The nations of the world must recognise the world's trade as one interest. There is a community well-being. There is such a thing as world co-operation. It is upon that line that we shall have to seek world prosperity. I know that the view which a particular trader will take will be just the view presented to him by the sight of his own particular article, his own particular workshop, his own little particular experience. But the experience of industrial England for more than a hundred years has in the main proved that you can confer no permanent trade benefit by any device of that sort. Labour, then, says that it is on the lines of international co-operation and agreement, through the instrument of international legislation, ensuring more equitable and uniform conditions of wages and hours of work to the workers of the world, that the remedy will really be found. This question of cheap goods has frequently been before Labour conferences and meetings. The Board of Trade might be helpful to Labour. I suppose it has the knowledge—if it has not it ought to have—of the particular articles which justly could be kept out of this or any other country, or which ought never to be made at all under the conditions which may now prevail in some parts of the world; but let us get the facts from a disinterested and impartial source, such as I take the Board of Trade to be.
We must, then, refuse to accept this remedy as touching in any way the problem of unemployment. It would not increase work, for the very reason that it is certain to make things more dear, and therefore to diminish the power to buy. Until you can increase demand by cheapness, consistently with fair and proper treatment of the producer, you will not have anything like a restoration of that condition of markets upon which our trade must depend. Whatever else the War has changed, it has left unaltered the fact that we must remain an exporting nation, and to be an exporting nation we must continue to be an importing nation. Between imports and exports I see an immense opportunity for finding work for a very large margin of those who are now compulsorily idle. You cannot possibly hope to sell your goods to others unless you buy from them. The more free and easy you can make exchange, the more healthy competition will remain. This treatment will only tend further to lessen competition, to fortify trusts, to increase the difficulties of our traders, our merchants and our manufacturers; and I believe that if they submit to it now they will be sorry, and will be even worse off than they are at the moment five years hence.
In the few minutes for which I shall venture to detain the Committee, I will try and limit what I have to say to two or three aspects of what in many senses is a very complex situation; and I shall trouble the Committee all the less because I am in total agreement with the speech made by the hon. Member for Dunfermline (Mr. Wallace). The first thing that strikes one, on coming into this Committee and listening to the speeches upon these Resolutions, is that this is one of the rare occasions on which the procedure of the House of Commons does not lend itself to clearness of issue, or to enabling Members to take a wide and complete view and a decisive attitude upon the question under discussion. Most of the important Bills that are brought before the House involving financial considerations, have in the body of the Bill some Clause or Clauses printed in italics, to call attention to the financial proposals which are necessary for carrying out their provisions. Then, when such Bills are discussed on Second Reading, the whole problem, so far as the Bill and its contents can envisage it, is before the House. In this case, however, for reasons which, no doubt, may be technically accurate, but are certainly most unfortunate, the Committee is asked to consider Financial Resolutions without either the modifications or the boundaries within which they are to apply, or other matters which have a very direct bearing upon what is to be done, and why it is to be done, and upon the direct or indirect results that are likely to follow from it. We have the Resolutions, but we have not the Bill. In the speeches made from the Government Bench there have been slight and partial, and sometimes rather fascinating, revelations of what the Bill is to contain, but we are as men walking in a mist, without a full light upon where we are going or what is the purpose of our journey. While a mist gives great facilities for exaggerating the facts in question, those of us who are not attracted towards exaggerating them in either direction would very much prefer to discuss the subject-matter in a perfectly clear and full light.
The proposals made in these Resolutions as they stand deal with three different but allied topics. It is quite easy for any Member of the Committee who is quite opposed, under any and all circumstances, to any taxation other than directly to revenue to oppose them with all that vigour and ease of expression which comes from there being no occasion to be troubling about thinking and questioning. There may be some other Members on the Committee who look upon the imposition of duties as a kind of tonic to trade which cannot be repeated too often, and they also will have no difficulty in dealing with Resolutions of this kind. My hon. Friend whose maiden speech was so pleasantly delivered and was so much enjoyed by the House looked upon the inclusion of more and more articles under protective duties as being good for the country as well as for the individual. To such Members the position presents no difficulty. But there are not a few Members of the House who believe that the great War, much to our dislike, has affected, particularly temporarily, certain aspects of financial relations between nations and financial aspects of trade, and who are prepared to support certain legislation so long as it is exceptional, so long as its boundaries are defined and so long as its tendencies are recognised and its evils are guarded against, and therefore anyone who approaches this problem from that point of view, bearing in mind the difference between what is exceptional owing to great world causes largely out of the control, not only of this House, but of this country—those who draw a distinction between what is legitimate in exceptional cases and what is normal in ordinary times for an island country like ours find the greatest difficulty in dealing with these Resolutions with precision or with confidence, because there still remain behind the veil those pro- visions of the Bill which must affect very largely the wide and general and vague provisions contained in these Financial Resolutions.
At the last election, and in speeches in this House since, I have said I am perfectly prepared to consider the case of key industries provided it can be shown that it is desirable for national safety or necessary for national defence that this country may have, if, which God forbid, another great war should break out, equipment and facilities in which it was wanting in the last great War. While I largely agree with most of what the right hon. Gentleman (Mr. Clynes) said, I think he carried his dialectic further than the facts warrant in suggesting that you cannot at one and the same time be making all necessary arrangements for the perfecting of national defence and yet be promoting international amity by means of the League of Nations and otherwise. They are not inconsistent. They are equally duties for a State which is prepared to defend itself but which is most anxious to prevent in every way the recurrence of war. Therefore the test which I apply to the first of these proposals, still bearing in mind, perhaps the Committee will think harping with irritating iteration on the fact of the partial knowledge on which we are dealing with the matter of the first division of these proposals, is to ask myself if it can be shown that the restrictions on the importation of certain articles which it is desirable this country should make for itself and should have at its disposal when war breaks out—if that can be proved and is proved I for one shall of course carry out the pledges which I gave with this in view when I was before the electorate.
That is by no means all that it implies or that may arise from the first Resolution. I am glad the list of articles is not longer than it is, and I desire here and now to join speakers in all parts of the Committee in recognising the danger which must come through all kinds of attempts or all sorts of persons in their own financial interest to increase the list to an indefinite extent. An hon. Member says: "We will resist it," and I hope we shall have his support in resisting it in the way that has been suggested to-day by more than one speaker. When every morning comes a proposal from some industry, vastly removed from national defence, asking that it may have special treatment, one wonders where on earth it can end, and whether we shall not, with mingled feelings, have proposals to give special benefit to every kind of industry, from motor cars to milk chocolate. I hope, long before we come to that ridiculous ending, if and when these Resolutions be passed, we shall see a Bill which makes it perfectly clear that the restrictions and limitations in the Resolution are to be so made positive, real, and difficult of alteration that there is no danger of this indefinite extension of what can only be defended on exceptional grounds, on grounds of national welfare, and which, otherwise, many hon. Members like myself believe to be mischievous both to trade and to national prosperity.
There is nothing in these Resolutions—I do not know whether there will be in the Bill—to say what is to happen if these particular industries, said to be key industries requiring exceptional treatment, thereby year after year make, profits. Various proposals have been mentioned. The hon. Member (Mr. Shaw) boldly said they ought all to be Government industries, managed by the Government. Management of industries by the Government in this and other countries during the last seven years is probably enough for most of us. But if profits are made under special security by those producing articles of special national importance, then at any rate a large and special share of those profits ought to go direct to the taxpayers whose legislation has made that security possible, and I regret that there is no proposal woven into these Resolutions on those lines. We are all prepared, I hope, for the sake of national security, to do many things which on ordinary purely economic grounds we should resolutely and permanently oppose, but anything that is done for the sake of national security ought surely to accrue to the national benefit. While you must, of course, give an equivalent if you are going to interest and to arouse initiative, if you are going to turn enterprise into a particular direction for national reasons, at the same time surely you have to make it clear that if the result of that enterprise be successful a nation which has given special facilities should have its share of the successful results.
I concur with what has been said by speakers in all parts of the House, each in his different way, by my right hon. Friend (Mr. Asquith), and by the right hon. Baronet (Sir F. Banbury), that these provisions in the Resolution, not set out in detail, but at any rate unmistakable, that a Government Department is to decide what can be brought in, and is to have the power in any form or to any degree of modifying taxation is a principle apart entirely from the controversy between Free Trade and Protection, and is a principle which those who care for the historic and steady development of our constitution are, it seems to me, unable in any way to support. If laws require interpretation the judges and the courts of law are the people to interpret them. If they require modification this and the other House of Parliament are the places where that modification can be effected by process of new laws, and I earnestly ask the Government, whatever be the merits and the necessity of these Resolutions, or any of them in other particulars, to avoid this tendency that grows day and night, under all Governments and in respect of most measures, of giving to Departments; those powers which belong alone to Parliament and to the people duly represented in Parliament.
With regard to the second of these three proposals there seems to be something approaching an agreement in the Committee that when dumping actually exists measures may properly be taken to prevent it, but there has been so little proof that dumping has seriously affected matters that the importance of this part of the Resolution dwindles considerably compared with the others. If there are timid persons who think that a provision against possible dumping may give them greater confidence and stimulate enterprise, which is now so necessary, I should be the last person to say they should not have that comfort, but with regard to the likelihood of its being needed or with regard to the Motion that it is going to disturb the general fiscal policy of the country, I doubt very much whether anything of that kind will happen. It reminds me of the divine who was being asked about the existence of a place of future punishment and said that in his view hell, of course, was eternally provided, but was equally eternally un- tenanted, and I fancy these provisions for the prevention of dumping, though it may be right to have them, will never have occasion to be used if the restrictions and the conditions adumbrated by the President of the Board of Trade and the Minister of Health are embodied in the Bill. Here again in the Resolution we merely know the general provision, and we are again left in the dark as to how far that is conditioned and modified by the proposed Parliamentary enactment.
7.0 P.M.
With regard to the third part, the proposal for a 33⅓ per cent. tariff, again I want to know to what nation is that to apply, how is it to apply, how is it to be raised, and therefore how are we able to tell what will be its intended effect and what may be its likely effect. Again, if it could be proved that owing to a collapse of exchange, if I am right, unequalled in modern history and therefore a matter in which we have hardly any precedent to guide us, that any great industry in this country was temporarily affected to so acute a degree that it was being destroyed, it would be common ground and everyone in the Committee would be willing to meet it, but that, of course, not only has not been found but strikes one as a very difficult thing to prove. There again one would look very differently upon a proposal to deal with a purely exceptional emergency from the way in which one would look at a proposal which would be of general application. I hope we may see some Bill or have some Ministerial statement which will, make it perfectly clear whether this proposal is to apply to nations with which we have commercial treaties and to nations generally. I hope we may be told what safeguard is to be laid down to show that it is only to deal with cases so exceptional that they may never arise, and that it is not to be a general tariff to be used in accordance with fiscal theories which a great many of us believe to be absolutely unsound and which have absolutely nothing to do with the issue on which the last Election was won or the special duties of the Government in regard to this country.
I think that the President of the Board of Trade said that the second Resolution was to be for a period of three years only, although that is not contained in the Resolution. I welcome the statement, but again comes embarrassment, because one never knows what modification in time, place or condition is contained in the Bill that we have not seen. I would earnestly urge the Government to make this provision, intended to meet the collapse of the exchange, a provision for one year only. It can, no doubt, be renewable under the ordinary Act, because we all hope, and most of us believe that the fluctuations in the exchanges are matters of comparatively quick occurrence, and that you have no ground for saying, because they are in the state they are in to-day, they will be in anything like the same condition next year or the year after that. When you are proposing a remedy for a thing which is constantly subjected to great fluctuations, it is only right to make the application of that remedy last for one year only, leaving it to the Government and to the House, at the end of the year, to see whether the circumstances are so similar that they will be justified in bringing it on again.
I would only add that the burden of what I have tried to say is this, that those of us, and there are many in this Committee and in the country, who judge these proposals according to whether they are proved to be exceptional proposals, intended and adapted to meet exceptional cases or not, cannot have the certainty of decision on these matters that we shall have when we see the Bill. Meanwhile, I respectfully point out to the Government and press on the Committee the desirability of securing full Parliamentary control, and of not increasing Departmental action in the way which is proposed in these Resolutions. Many of us willingly pledged ourselves at the election to exceptional measures to deal with exceptional circumstances, and upon the Bill itself, when we see it, will depend our votes and action. While men of all shades of opinion are agreed that exceptional things should be done for national purposes, it would be a fatal thing for the Government and the country if, at this time, there were any considered or organised attempt to revolutionise either the fiscal or the social conditions under which we live, especially in these days when the War is hardly over and international problems predominate over all others. This is not the time for making changes with regard to which wise and good men differ, and which can be considered more profitably in periods of national calm than in times of international trouble or national disturbance, such as the present, which make the act of Government so difficult.
When we compare the speech of the hon. Gentleman who has just spoken with that made by that redoubtable Free Trader, the Minister of Health (Sir A. Mond), yesterday, we are rather moved to the reflection that the farther away a Free Trader is from the Treasury Bench, the less fervid is his support of these Resolutions. There was a very striking similarity between the speech to which we have just listened, and the maiden speech of the hon. Member for Moseley (Mr. Hannon), this afternoon. They both saw before them the same vista, along which a host of interests is pressing for protection, each one clamouring to be admitted to the advantages given by these Resolutions to a few favoured industries in this country. The only difference was that the hon. Member for Moseley viewed it with pleasure, while my hon. Friend who has just sat down viewed it with dread. The Resolutions dealing with the problem of key industries and dumping concern two matters about the treatment of which there may be differences, but if it can be shown that there do exist key industries, and if it can be proved that dumping does take place, I think it will be agreed then that all sections of the Committee are prepared to deal with the situation which these proofs would create. Where we differ is in the method employed under these Resolutions. The Resolutions propose to use the instrument of taxation. With regard to the use of the instrument of taxation, there always has been two fundamentally different schools of opinion. One school says that it should only be used for revenue purposes; for the purpose of bringing money into the public purse. The other school believes that the instrument of taxation should be used for influencing and guiding the course of trade, and in consequence for diverting moneys into private pockets. That is really the difference between these two schools, which have been known in the past as the school of Free Trade and the school of Protection.
It is perfectly clear, on consideration of these Resolutions, that what is being done here is to use the instrument of taxation for that purpose which, in the past, we have always regarded as a protective use. Taxes are to be levied under this Bill for the purpose of influencing and guiding the course of trade and fostering certain industries. The effect of that was very well put by the right hon. Member for Miles Platting (Mr. Clynes) when he said that it would raise prices. Really, the proper name for these Resolutions would not be the "Safeguarding of Industries," but the "Raising of Prices." That is, at the same time, the object and the effect of the Resolutions. Because they have that object and effect we regard them as a measure of Protection. We have support in that view from the right hon. Baronet the Member for the City of London (Sir F. Banbury). Yesterday he was rather chaffing the hon. Member for Limehouse (Sir W. Pearce) on the fact that he professed to be a Free Trader and yet was going to support these Resolutions. In the opinion of the right hon. Baronet, no man could support these Resolutions and be a Free Trader. If it be, as I have suggested, that the object and the effect of these Resolutions is to raise prices, then I am supported in that conclusion by a speech made in the last period during which the question of Free Trade and Protection was really vital. It was made by the Lord President of the Council, on 3rd October, 1904, at Edinburgh. He said: the issue really raised by them is whether we are going to support a change in the fiscal policy of this country, and to abandon the principles of free trade upon which it has hitherto been conducted, and to proceed along the path of protection. That is a very grave and serious issue indeed, and in raising it at this stage the Government are doing the last thing in the world to bring about in this country the state of unity which they are always professing to desire.
These Resolutions are really put forward as a sort of foundation that is at last going to be laid for building upon them a new world. We are promised, if these Resolutions are passed, that everything is going to be all right by the simple application of a 33⅓ per cent. tariff all round; unemployment is going to cease, national security is going to be effected, and the difficulty arising from collapsed exchanges is going to disappear. One simple little instrument of Protection is going to effect all these wonders for us. We might believe in that if it were not the fact that at the present time the state of things in Protective countries is as bad, if not worse, than it is here. If an instrument of Protection is going to do for us all that is suggested, how is it that at the present time, in a great country like America, which has been referred to in this Debate as the great Protectionist country, the state of things there is as bad as it is here? All the problems we have here exist there. [HON. MEMBERS: "No"] It is worse. I have here a quotation from the "Yorkshire Post," and that is not a paper particularly favourable to the views we hold. It is a report sent to them by Sir Foster Fraser, who, again, is not likely to go out of his way to be friendly to us.
What is the date?
The date is the 14th April, which is sufficiently recent to satisfy my hon. Friend. He says that in America at the present time they have big stocks in hand of manufactures, wages are coming down 15 per cent. to 20 per cent., there are 3,000,000 men unemployed, steel production is down two-thirds, there is a big railway deficit, a loss amounting to something like $400,000,000 or $500,000,000 on the working of ships, and there is a full catalogue of events which out-gloom anything which has been said in this Debate as to the position in this country. If all the happy results that are expected to follow the passing of this measure of protection can be anticipated, how is it that they have not been effected in America? If America has not been able to escape the troubles that we are passing through, let me quote to the Minister in charge what has happened in Spain. In Spain they have been doing exactly what the Government proposes to do here, namely, to raise a tariff barrier for the purpose of bringing about in that country a better state of things. I have here a report taken from the "Times" of the 23rd April. The correspondent of the "Times" uses these words: but if they were to be allowed to come in they would have to reconsider their position!
There was also reference in the article to the toy trade. It was stated that the toy trade was killed, and that the dumping of dolls' heads in this country meant that the profits in that trade had been completely lost. So the article went on through a list, and in the whole of the list there was not one real substantial industry. There was the glue trade, buttons, fancy goods, and other trades, which, when one compares them with the staple industries of the country, such as engineering, textiles, coal, and agriculture, are merely a drop in the ocean. Because in these particular small trades there is a condition of unemployment and, distress, upon that very slender basis the Government proposes to change the whole fiscal system of the country. The Secretary for Overseas Trade (Sir P, Lloyd-Greame) said that when the Bill came into Committee he would be able to show proof for the inclusion of every separate article in the schedule. That proof must have been gathered very recently, if he has got it, because I have asked two or three questions since 27th October to find out, if possible, upon what information the Government was acting in scheduling certain trades as key industries.
This is the second Bill of the kind. We had a Bill which scheduled certain industries. That Bill passed away as this one will. No one believes that this Bill will get on to the Statute Book. [HON. MEMBERS: "We do!"] The Government brought out the other Bill in which they scheduled a certain number of industries as key industries, and they have now produced the present Resolutions. The Prime Minister laid down certain tests to which any industry must be submitted before it could be accepted as a key industry. These tests were that it was neglected before the War, that it had been helped during the War, and that it needed help after the War. I have asked questions to find out what the Government really knew about these industries and upon what basis they decided to include them, what was the number of workpeople engaged, and the amount of weekly wages paid in the key industries. I got a reply from the Parliamentary Secretary to the Ministry of Labour, who said:
I have taken considerable interest, as most hon. Members know, in this subject, and I think I am able to give the House a little accurate knowledge on many points which have been raised in the Debate. I was fortunate in being able to take the right hon. Member for Paisley and the right hon. Member for Miles Platting (Mr. Clynes) over the collection of samples, which most hon. Members have seen, and I was hopeful that after examining the chief exhibits they would get some information into their minds which would be helpful in these discussions. They both seem to have missed, to a very great extent, the point. When I took them round the exhibition I explained the different industries which were suffering from the effect of German imports, industry after industry. There were the figures of prices at which the German goods were coming in, and the figures at which the British goods could be produced, and in many instances there were the figures in each industry of unemployment, the direct cause of the importation of German goods and other goods in consequence of the collapsed exchanges of Europe. The speeches which we have listened to show that neither of the right hon. Gentlemen have learned the full lesson which is to be learned from these samples. It is all a question of unemployment. German goods are sent here at prices against which no English goods can possibly compete.
There are no German goods coming here now.
The hon. and gallant Member says that there are no German goods coming here now. The figures for last year show that according to Board of Trade calculation of values £31,000,000 worth of German manufactured goods came here, and the figures for the first three months of this year show that a very much larger amount in proportion is continuing to come in.
Not at the moment.
Yes, at the moment. They are coming in every week in abundance, and at prices which undercut our industries, causing heavy loss to employers and widespread unemployment and loss of wages to the working classes. That is the problem which we have to face. These goods are coming. The Measure proposed by the Government is going to a very great extent to remedy the evil. The right hon. Gentleman the Member for Miles Platting (Mr. Clynes) scoffed at the idea of these comparatively small duties remedying the evil, but I am here as representative of a great number of trade associations who have put this collection of exhibits together and represent many thousands of firms, giving employment, I believe, to many hundreds of thousands of hands, and in their opinion the proposals of the Government are going to be of great benefit. It is not a question of Free Trade and Protection at all. Here is a definite attack on industry. The main attack comes from Germany by the deliberately-depreciated rate of exchange of the mark. The trade associations who are concerned consider that these duties if levied on the value of the goods will be some measure of protection, and will enable them to carry on their business. Some of these industries are suffering severely from unemploy- ment. Take the fabric and kid glove industry. Out of a total of something like 30,000 hands who were employed last year fewer than 9,000 are employed to-day and they are working short time.
How many are in the glove industry, and how many in the hosiery?
I am talking about the fabric and the kid glove industry. The fabric glove industry last year employed 9,000 hands. Last February it employed a little over 1,000, and they were working short time. The kid glove industry normally employs 20,000 hands. Last January less than half that number were employed, and they were working short time. In the great Nottingham industries, including lace, in which from 40,000 to 50,000 hands were employed, there is the same wide range of unemployment. In the silk industry there is grave unemployment. I cannot give figures for the musical instrument industry, but I and told that nearly all the piano and musical instrument factories are in a state of closing down. The right hon. Gentleman the Member for Paisley (Mr. Asquith) referred to the piano industry and the exhibits that were shown to him. The position is simple. He did not state the figures exactly. There was a German piano which was sent here at £34 10s. £11 10s. duty was paid on it for, as hon. Members know, there is 33⅓ per cent. duty levied on musical instruments. Then there were dock and landing charges which bring the wholesale price of the piano up to £50. That is in competition with the British piano, the wholesale price of which is £85, and which is sold in the neighbourhood of £100. The German piano is sold just under that figure, and somebody gets a huge profit. The result is that the English piano is not sold. Then take gramophones. The wholesale price of a British gramophone is, I think, £7 10s. A German gramophone comes here at £2. Thirteen shillings duty is paid upon it. That, with the landing prices, brings the wholesale price of German gramophones up to £3. The £7 10s. British gramophone is retailed at about £10. The £3 German gramophone is retailed at just under the British price. It is said that the consumer gets the benefit of these cheap prices, but hon. Members will know from their own experience that that is humbug. The consumer does not get the benefit. He gets a small part of the benefit, while in exchange you have the men in that industry unemployed, drawing unemployed pay.
That is a deplorable state of affairs. The reason is simple. It is owing to the rate of exchange In England the average rate of pay to the skilled worker is 2s. an hour. In Germany it is six marks an hour. The rate of exchange of the mark is a penny. Therefore you have German skilled labour getting wages that when transferred to England represents 6d. an hour, compared with our skilled labour wage of 2s. an hour. That is the position that is deliberately produced by Germany. It is not the real rate of exchange. The real value of the mark in Germany is the value of 3d. before the War but it has an exchange value of 1d. Hon. Members know what you can buy for a penny in this country. You cannot post a letter for a penny, but with a mark in Germany you can post two letters and a postcard. You can buy a jug of beer. You can perform a whole lot of operations. The result is that the labourer in Germany is paid 6 marks an hour, which is a living wage in Germany and not a bad living wage, but when the product of his labour is transmitted to this country it represents labour at 6d. an hour. Unless these Resolutions are carried I warn Labour Members that British workmen will have to face competition with foreign workmen at 6d. an hour.
It was said that goods that were made with sweated labour should be stopped, but what are no labour conditions with skilled labour at 6d. an hour. If some measure of protection is given against sweated labour then it must be given against labour which is artificially depreciated, and I trust that the Committee will regard it from that point of view. The instances which I have given of musical instruments being imported are familiar to hon. Members because they know that the consumer does not get the benefit of the cheap price, but that an individual importer does, or did up to the end of last year. He bought his gramophones in bulk, he distributed them in England to the retail trade, and there was an enormous difference of something like £3 per instrument which that gentleman was able to put in his pocket, and it is interesting to note that he did not pay taxes on that profit. He was not liable for Income Tax. You buy 1,000 shares and they double in value. That is called by the Treasury appreciation of capital and you do not pay taxes on it, and if you buy 1,000 gramophones and they double in value they call it appreciation of capital and you do not pay taxes on it. But then the German Government stepped in and objected to these huge profits being made by importers, and towards the end of last year they established a price office.
Before you can now export from Germany you have to get a licence and you have to submit the price at which you have sold the goods to the Price Office, and they refused a licence to export unless the Price Office considered that the goods were being sold at a price that was reasonable in regard to the English price. They would not, for instance, allow gramophones to be sent to England at £2 a piece while prices were in the neighbourhood of £7 10s. I have a letter which is interesting on this point. Some months ago an English firm bought some machinery. I have the original letter from the German firm that sold the machinery, and they write: one or two points which have been made in the Debate and also to one matter to which no reference has been made, and which I venture to think is important, namely, that in countries where the currency is highest, such as the United States and this country, you have great unemployment. You find the same thing applies to Switzerland and other countries, but in all the countries where the exchanges are depreciated—France, Belgium, and Germany—there is little or no unemployment. [An HON. MEMBER: "Italy."] In Italy there is comparatively little unemployment, and what unemployment there is is due to causes which are explainable. There is no unemployment in France, little unemployment in Belgium, and very little in Germany, and yet in this country of ours we have won the War and great masses of our working classes are drawing unemployed pay. A Labour Member has said, "Then why do we not depreciate the currency?" The answer is that we are not self-contained. We have to buy food from abroad, and if we depreciated our currency we should be up a tree at once. We have to maintain our credit. Germany, on the other hand, is largely self-contained. She is able to obtain raw materials from Poland and other neighbouring States, where the currency is at a greater point of depreciation than in Germany. She is able to import a good deal from those countries, and that enables her to export.
My hon. Friend the Secretary to the Overseas Trade Department quoted some words this afternoon about the imports from Germany and the exports to Germany. He pointed out that Germany last year exported to this country manufactured goods to the value of £31,000,000, and that we had sent to Germany goods to the value of £21,000,000. Those figures, I venture to think, are wrong, because the exports from Germany are calculated according to the depreciated rate of exchange. The world value of those goods is three times that figure. Therefore we have received from Germany goods to the value of £90,000,000, and in exchange we sent goods to the value of £21,000,000. We have really got to think more of our own industries than of bolstering up German industries. This is not a question of Tariff Reform. I have been a Tariff Reformer all my life, and I would not advocate a measure of this kind as a measure of Tariff Reform. This is simply a definite measure which is proposed for the purpose of meeting a definite evil, and an evil which is producing unemployment. I think it is going to be of great benefit to industry, and I believe it is going to help us through our troubles. My only regret is that the Government did not produce their Bill a year ago, because if they had, I do not believe we should have had anything like the unemployment from which we are suffering to-day. Better late than never. Not as a measure of Tariff Reform, but as a measure of expediency to meet a definite evil which is affecting the prosperity of the country, I propose to give these Resolutions, and the Bill which is to follow, my complete and whole-hearted support.
Many hon. Members who have joined in the discussion during yesterday and to-day have had the experience of this House when this question has been under consideration on a previous occasion. Many of us on this side of the House had not that privilege, but we were acquainted with the raging, tearing propaganda of a few years ago, which sought to establish some measure of Tariff Reform in this country, and we are acquainted with the change in titles which this principle has had at various periods—Tariff Reform, the scientific basis of taxation, and now we get it under another guise, the safeguarding of industry. We have also been acquainted with the contentious point of what is raw material and the fact that the finished product of one industry is the raw material of another. We are also familiar with the cry which was sent forth at that time, very similar to the one we have heard from the hon. Member who has just resumed his seat, about the industries breaking down, and no sooner had that been stated than we had served up to us shoals of statistics to indicate that the trade of the country was in the most flourishing condition. Now we have the same confusion of thought and looseness of interpretation carried to the length which the Minister of Health carried it, when he informed the House that legislation to deal with dumping was no interference with the principles of Free Trade.
These Resolutions cannot stop at the point that is suggested by the President of the Board of Trade. During the War the Board of Trade set up quite a number of committees, but there were two in particular, and one has been mentioned to-day. One was a Committee of the Board of Trade, and the other was the Committee presided over by Lord Balfour of Burleigh. I have perused those reports, and I find that evidence was given, and representation was made, to one of these committees by a large body of trades in the country, and quite a number of them, which are not included in these Resolutions, urged the necessity for a tariff being imposed upon commodities similar to those which these trades produced. Paper manufacture, stationery, jewellery, cutlery, leather, brushes, toys, china and earthenware, table glassware and glass bottles, were all included in those representations urging upon the Board of Trade that 33⅓ per cent., and in some cases a higher tariff, should be imposed upon these commodities coming into the country. None of these industries are represented in the list in the Resolutions with which we are presented. If it is necessary and desirable to apply this policy to the industries here stipulated, it is necessary and desirable to carry the principle further, and apply it to other industries which have made out a case as to its necessity—at least, a case to their own satisfaction. Even at that time the industries of the country were not agreed upon policy. Some of them wanted a tariff, and some of them thought that another method of protection would be desirable so far as their own particular industry was concerned. And even now there is the same difference of opinion. Most hon. Members will have received a letter a few days ago from one particular industry in the country—I think it was electric bulbs—and they said 33⅓ per cent. tax was no good for their industry, and that if their industry was to thrive, complete prohibition of that particular article would be necessary. We have also the other side of the story from the calico printers' industry. A telegram was put into my hands yesterday, as follows: So that there is no uniformity with regard to the demands made by the industries of this country upon these lines. The hon. Member for Chippenham (Mr. G. Terrell) ventured to suggest that these Resolutions were made necessary in order to meet the products of cheap labour in other countries. Surely the time has come when we should not attempt to perpetuate the fiction that the men of this country are out of employment because the men across the water have got their job, because that will not stand the test of reasoned analysis. The malady with which the country is afflicted at the present time is altogether too general, and applies over too large an area, and affects too many people, to be subjected to the treatment of the protectionist embrocation which is inside this Resolution, and those of us who believe that the policy of Free Trade is the fiscal policy that this country should pursue, are of opinion that the economic health of the world and this country can only be restored by the unfettered flow of the world's goods amongst the world's people.
8.0 P.M.
References have been made this afternoon, I believe from this side of the House, that we may qualify this principle when it interferes with those things we require for the purpose of War-time operations. My view of the situation is that these very Resolutions move in the direction of perpetuating warfare, and that if we want to move in the direction of international peace we have to give the world's trade its freedom. There is no surer and safer pathway in the direction of international peace than the free, unrestricted and unfettered flow of the world's goods for the world's people, and there is no surer path in the direction of world conflict than by applying the policy of Resolutions of this character, and restrictive tariffs to the flow of the world's goods. Tariffs, treaties, and tanks, all come within the armoury of the Protectionist. If tariffs fail in their object, the next thing is treaties, and if treaties go down, then tanks and military equipment have to take their place. One thing follows the other in natural sequence. Once embark on this restrictive policy in the direction indicated, and a world conflict is the only logical interpretation. As soon as one fails, the other must inevitably be brought into play. It has been stated that we have had two conflicting points of view. From the Front Bench we had the statement that these Resolutions were the lineal descendants of the Paris Resolutions, and that the Paris Resolutions were based upon the Report of Lord Balfour of Burleigh's Committee. The hon. Member for Chippenham emphasised the fact that these things are necessary because of the collapsed exchanges. There was no collapse of the exchanges at the time of the Paris Resolutions nor were even the collapsed exchanges foreshadowed. It was freely stated yesterday that these Resolutions were directed against the operations of the Central Powers, and it is unfortunate, but it is true, that we on this side of the Committee are somewhat embarrassed by the conflicting points of view that some of our own Friends have presented. It is true to say that the Paris Resolutions were the outcome of the activities of the right hon. Gentleman the Member for Paisley (Mr. Asquith) and the then President of the Board of Trade (Mr. Runciman), and Mr. Runciman, speaking in the Debate in the House of Commons on the 10th January, 1916, is reported to have spoken as follows: methods of meeting this foreign competition—scientific production, education, research, and the development of natural resources, which, of course, vary according to particular localities. A good deal has been said about the chemical trade. Everybody who has read anything about Germany knows the tremendous strides she made in that direction before the War.
Notice taken that 40 Members were not present; Committee counted, and 40 Members being present—
I was saying that there were well recognised methods of meeting this foreign competition. These are scientific production, education, and research, and the development of any natural advantages which a country might possess. I was saying most people who have read anything about Germany are acquainted with the tremendous strides Germany made in the chemical industry during the years before the War. Those who have endeavoured to find out the facts of the case are acquainted with the tremendous sum of money which the German Government put down in order to encourage education and research in this particular direction. If it has proved to be good there, the same principle is good if it is applied elsewhere. I cannot follow altogether the fears of the hon. Member for Chippenham (Mr. G. Terrell) and others in respect of the danger of competition from Germany in the future. I do not think that is likely to exist to the extent they suggest. The whole tendency is in the other direction, and it will injure us probably much more than the importation of German goods into this country. I read in the newspapers yesterday that on Friday a trade pact was signed at Berlin between Germany and Russia. I am sure the policy of this Government has contributed towards that pact being made. If we bring together a highly scientifically developed country like Germany and a huge area like Russia with its inimitable supply of raw materials and its wide market, as all the indications suggest we are likely to do, there will be a greater factor in such a combination working together than there has been even with the hostility of industrial Germany.
We have been told many times during this Debate about the importance of our coal supply. Germany before the War had to import from this country 9,000,000 tons of coal. She imported that coal because the coal that Germany produced was not of the type or quality desired. Anthracite coal similar to that which is secured in South Wales is practically unknown on the Continent of Europe, and if Germany wants a supply of that commodity she has to import it from outside. There is in Russia the largest unworked anthracite coa area outside America, and Germany is going to be in a sound economic position, so far as her coal supply is concerned, if she makes peace with Russia, and the economic policy to be pursued on these Resolutions will be hopeless, futile, and inoperative against a tendency of that character. Just one reference to the question of dumping. We have had any number of definitions of dumping during this Debate, I want to suggest that there is no dumping taking place at the present time which comes within any of the definitions which have been given. As a matter of fact, the world at the present time is too poor, and commodities are too scarce, for an unlimited supply or any large supply to be sent from one country into any other country. But, assuming for the moment that dumping is taking place, there has been no attempt to controvert the well-recognised economic acceptance that the imports into a country have to be paid for by the exports going out of it; and if German goods or any other goods come into this country, whether cheap or dear, in small volume or in large, a corresponding value of goods must go out of this country to meet them. If a particular industry is adversely affected by these imports, taking the wider range of industry in general, the country gains instead of loses by the transaction.
The smattering of economics I have been able to secure has led me in the direction of believing that if industry is allowed its freedom we shall find production gravitates to those areas and into those places where production can best be carried on, having regard to the education, the enlightenment, the natural resources, and all the facilities which are available. If that activity and production is allowed free and full play, the world's and the country's equilibrium—trade and commerce—will balance itself in the long run, and the general advantages of the community will come as a natural consequence. But there are those who say: "That is all right under normal conditions, but we are living in days of collapsed exchanges and the circumstances need special and exceptional treatment." I am not going to make any pretence of understanding the ramifications of the collapsed exchanges, but this much one can say, that some time ago the Government set up a Committee of experts to look into this question. Their Reports are available—two or three of them. Those Reports I have carefully perused. That Committee made certain very definite recommendations as to how the collapsed exchanges should be dealt with. None of these recommendations is found inside the present Resolutions, and these Resolutions would not be here if they leant upon the findings of that particular Committee. I am rather inclined to the point of view that this question of collapsed exchanges is being used merely as a convenient stalking horse upon which professed Free Traders can ride into the stronghold of Protection. The right hon. Gentleman the Member for Miles Platting (Mr. Clynes) made reference to the operation of trusts and syndicates in this country. It is one of the sinister influences upon the industrial and economic field at the present time. If there is any transgression of the economic law taking place in this country and any interference with the law of supply and demand, the cornering of markets and the manipulating of prices, contrary both to economic law and moral principle, it is to be found in the operation of these large trusts and syndicates, and everything which is contained in these Resolutions will strengthen their operation and increase the possibility of further plundering of the people by these large undertakings.
We have had a reference this afternoon to the case of the German piano, the one at £50 and the other at £80. If we put 33⅓ per cent. on to the foreign piano it is the person who purchases that piano who will pay that tax, and wherever these tariffs are applied, upon whatever commodity they may be placed, it will be the consumer who will have to pay, and it will enable the home producer of that article to put up his prices to that figure. If the tariff works in another direction, and prevents foreign goods coming into this country altogether, it will make possible a closer monopoly in the production of these goods in this country. The hon. Member for Chippenham quite frankly admitted that the application of these Resolutions to the industries with which he was connected would bring great benefits to those particular commercial undertakings. We accept that declaration, and we believe that those benefits would come in the direction of strengthening the monopoly in the manner which I have indicated. When everything is said that can be said in favour of Free Trade principles, we on this side of the House are entitled to say that, so far as we can understand it, it is quite undesirable for us to make a fetish of Free Trade. We have had 50 or 60 years of Free Trade in this country, and we see to-day something of its operations. We look around our Free Trade country and we see our slums; we look around our Free Trade country and we see all the unemployment that is rampant; we look around our Free Trade country and we see the opportunities which exist for plundering the people. Our Free Trade country made its war profits, which in these days are compelling the people to pay high prices when a rapid downward tendency should be in evidence.
We look abroad to Protectionist France, to Protectionist America, and we see substantially the same conditions prevailing. Whether it is a Free Trade country or a Protectionist country, the system with all its evils is in operation; the people are struggling for a bare standard of existence, week in and week out, year in and year out, and they have to accept the dole at the labour exchanges. We admit that while those things are bad under Free Trade, they would have been worse under a Protectionist system. Further, our Free Trade policy has not secured to this country all those advantages which we were led to believe it would bring. Until quite recently, if we received a communication from the Cobden Club there was inscribed at the end of it, "Free Trade, peace and goodwill amongst the nations of the earth." That was the guiding principle of Cobdenism. Have we not the exact opposite prevailing? The world competition for trade and commerce, instead of moving in the direction of peace, has moved in the direction of conflict. From tariffs we have had treaties, and from treaties we have had tanks. If the virtue of Free Trade had brought peace to the world, we would give it a good deal more backing than we can give it now. Here, in spite of Free Trade and in spite of Protection, we have the policy of trusts and syndicates and the Imperialist policy of markets and raw materials disturbing the peace of the world. So, while we give our blessing to Free Trade as a principle, because it is better than Protection, and because we look at it as an ideal for providing the world's goods for the world's people, which would have a tendency to peace if it were permitted to function, we realise that foreign competition can be met only by making the best of our national resources, and by forwarding education and research. We vote against these Resolutions because we believe that trade and industry should be regulated in the direction I have indicated.
This discussion has reminded me of the old fights that took place on the Tariff Reform and Free Trade issue. I was rather interested in the concluding remarks of the last speaker. The greater portion of his speech was a defence of Free Trade, but he ended by saying that Free Trade had not saved this country, and by inference suggested that Protection was as bad as Free Trade. The right hon. Member for Platting (Mr. Clynes) did not go so far as that. He did not say that Free Trade was a principle, a kind of law from Mount Sinai, but a question of expediency. Therefore he is giving lip service to a doctrine while he is leaving himself an avenue of escape, so that if circumstances arose and he and his party came into power, he might adopt Tariff Reform as a solution of our problems. There is a phase of the question which has been omitted from the discussion. The right hon. Member for Paisley (Mr. Asquith) made a most charming speech. His sonorous dialectics and his humour delighted the Committee. When a remark was made in the form of an interjection about the Paris economic resolutions, the right hon. Gentleman replied, "That was during the War." Never was there a more Machiavellian retort to a statement made in this House. Let us examine it. What was the situation at that time? The nation was fighting for its life. A Committee was set up, and I believe that Labour was represented on that Committee. Mr. Wardle, I am informed, was the representative of the Labour party on the Committee. Before the decisions of the Committee were signed, Mr. Wardle went to the Labour party and obtained their approval of the Paris economic resolutions. They were passed with the intention of saving this country not merely from the Vienna resolutions, but so far as the dye industry was concerned there was given a life beyond the end of hostilities.
We found ourselves handicapped almost to the point of being destroyed owing to the lack of certain war necessities. Lord Balfour of Burleigh's Committee said that those commodities were essential to the winning of the War, and that they must be manufactured in this country. Thousands and tens of thousands of pounds were put into the manufacture of those commodities on the express promise of the then Prime Minister that as key industries they would not only receive favourable consideration after the War, but would receive the attention to which they were entitled in having helped to save the country. Now the right hon. Member for Paisley coolly says, "You have put your money in to save the country, you who were helped to believe that the word of a British Prime Minister was his bond, you who have sunk your capital in trying to build up these new industries, you must take it now from an ex-Prime Minister, the Leader of the Liberals, that his statement on that occasion was no more than a scrap of paper, and all the money you have put into the industry must be lost, because the War is over and I have changed my point of view."
Will the hon. Gentleman kindly read what the right hon. Member for Paisley said in regard to the Paris Resolutions?
I was here when the right hon. Gentleman delivered his speech and was here when a reply was made by the Secretary to the Overseas Trade Department. We have to take the statements and what follows from those statements. The Secretary to the Overseas Trade Department stated what is a fact, that in the dye industry what was done was not merely a war measure, but that the industry was to be safeguarded for 10 years after the War. That statement was made. It was not merely for the period of the War, but for 10 years afterwards. That is the point in dispute between us. These Resolutions, not as they are framed now, but as they will appear in the Bill—the phrasing of them, I think, has been unfortunate, especially that of the second Resolution—are the fulfilment of the pledge given by the late Prime Minister in the Paris Economic Resolutions. The hon. Member opposite shakes his head, but he cannot change the fact by shaking his head.
Will you read the speeches that were made?
I have read them. I cannot repeat them to the Committee, because other people wish to speak. I have given him a direct statement, and he can challenge it or counter it when he rises to address the Committee. I am bringing him to the statement made by the representative of the Government, that the Paris Economic Resolutions were not merely for the period of the War, but, so far as the dye industry was concerned, for ten years afterwards. That is one industry. Other industries were also called into being during the War. Men put their money into them, and I say it is a fraudulent deal—using the words in a Parliamentary sense—for the ex-Prime Minister to say, "While you served us in the War, and I made a promise extending to ten years after the War, the whole situation is altered, and we cannot fulfil the promise." Either the Prime Minister of that day was right then and is wrong now, or he was wrong then and is right now, but he cannot have it both ways. I did not quite follow the trend of the last speaker's argument. He seemed to discount Free Trade as much as Protection, but these Resolutions we are dealing with are to meet an immediate situation, and to fulfil a promise during the War made on the authority of the head of the Government of the day.
I personally have never agreed with a fixed rate of tariffs for any particular commodity. The whole basis of tariffs is wrong, from the workers' standpoint. In 1913 Woodrow Wilson was returned to reduce the tariffs of America, and I have an illuminating document here which I am sorry is not in the hands of every Member of this House, and it is an American Blue Book on that subject When President Wilson was returned on the policy of downward tariffs he was approached by different classes of manufacturers, who said if the tariffs were reduced in America they could not compete against cheap labour in Europe. President Wilson said: you will lose your American market. Self-preservation then came to the rescue of stupidity, and the pottery manufacturers entered into an agreement that the cost of the industry should be an open book, but a pledge was given that the concerns of particular firms should not be made common property and that the firms should be designated by numbers. In the proceedings of that inquiry it was discovered that the chief cause of competition with the United State arose from the question of wages.
I hope the passing of these Resolutions embodied in a Bill and giving us five years' time will enable the future Government of the day to set up a Commission that shall be exhaustive as far as its functions are concerned and shall he representative of every section of the community. I make bold to say that what was discovered by the Commission I have referred to, namely, that wages were the cause of the unfair competition of Europe with America should be made the basis of procedure so far as tariffs are concerned. I give my support to the Resolutions, as the fulfilment of pledges entered into by both the Liberal and the Labour parties, because the representatives of Liberalism and Labour gave their support to the Balfour of Burleigh Committee and I believe these Resolutions are carrying out the findings of that particular Committee. As a matter of honesty in dealing with these problems I am supporting the Resolutions, but I am supporting them also in the hope that in the next five years we shall take a different point of view on the question of tariffs from that of the old Tariff Reform League. I do not think the flat rate of 33⅓ per cent. for this, that and the other industry, is scientific, but I do think wages form the prime factor in production. If difference in wages gives one country an advantage over another, then you should narrow down your tariff operations to the difference between wages as they affect different countries. I make this reservation. As a country, I think we stand first in what is called social welfare for the industrial worker, and I think that ought to be extended. I believe that insurance against sickness and unemployment and against accidents, all those social amenities in connection with our industries, scientific inquiry, and scientific education are burdens superimposed upon industry, and if my thesis has any validity at all, I say that if you are going to make your tariff on the difference of wages, you must also make it on the difference that employers have got to pay for social welfare in comparison with other countries. I hope the future of tariffs is not going to be on flat rates, which gives one set of employers an advantage over another set, but that it shall be on the difference of wages paid and the burdens borne for this social welfare.
I want to endorse all that has been said about bringing nations together, and I believe the League of Nations is doing something in that way. America stands out of the League of Nations at the present time. Are you going to say that the League of Nations shall take from the American people their sovereign rights as a people and that they shall remove their tariff walls? The hon. Member who spoke last talked about the free and uninterrupted flow of commerce between the nations. Have we ever had that? America has got a tariff wall of 60 per cent. on many of her commodities. Is that a free flow of commodities between nation and nation? You may take any country you like except two that have got tariff walls against us, and there is no such thing as a free and uninterrupted flow of commerce between nation and nation. It is a delusion and a snare. Whether or not our position as a free importing country has been to our advantage, I am not now discussing; free trade may be the best thing, but it has never happened up to this moment. The standard of comfort of the worker has been enormously improved during the War, and I for one do not want to see that standard reduced. I want the industrial workers of this country to have the highest social standard it is possible for an industrial people to have. If wages are the prime factor in production, and you get low wages in other countries competing with this country, then I say it is impossible to keep up high wages in this country. It has been said that these are only small industries. I went to see the exhibition which has been referred to on the Embankment, and there were figures given there to the effect that so many people were out of employment in these small industries. I believe about 250,000 people are at this moment out of employment by the unfair competition which is going on between ourselves and our rivals in the world. If wages are the prime factor in production, then I want to see a fiscal system that will equalise wages, if necessary, by tariffs.
We are competing with Germany or Belgium or France. I am not going to mention Japan, but what Japan is going to be in the future is worthy of the serious consideration of this and every other country. If the figures given by our own Consul in Japan are correct, it is a very serious situation, namely, that the Japanese workpeople work 12 hours a day, seven days a week, for the same wages as a Britisher gets in one day's occupation. If that is the condition, then heaven help this country if Japan is going to become a formidable competitor. My idea of a tariff for the future is one that shall not give preference to one trade or another, but shall be based on wages rising and falling according to the variation of wages between the competing country and ours. If the wages of a country are 30 per cent. less than they are here, then I would put a 30 per cent. tariff against that country.
Whatever the output is?
I am talking about wages, which are the prime factor, and my concern is the welfare of the workers of this country first. You may talk as much about internationalism as you like, but whatever may be your international proclivities, if you do not look after your own workpeople first, you are neither a good father nor a good citizen of the country to which you belong. My first concern is for the workers of this country, and I say that if the wages in a country are 30 per cent. lower than they are here, then put a 30 per cent. tariff on those goods, and if in that country the wages are raised 10 per cent., then reduce your tariff 10 per cent.
What about the cost of living in Japan?
Whatever they live upon, that is their standard, but if their standard is going to bring ours down to the same level, you are not doing a good service to the workers of this country. If you have a reduced or an increased tariff according to the difference in wages, I believe by that means you will arrive at real Free Trade. When the tariff is reduced to zero, then there will be no tariff against those particular countries, and you will have real Free Trade. I suppose these Resolutions will be translated into a Bill, and that that Bill will be examined and discussed from every point of view, and when it becomes law, as I think it will, I hope it is only a commencement of a real scientific inquiry into the industrial conditions from A to Z in this country, so that the industrial worker in this country shall at least have fair play, and if tariffs are to be in existence, I hope they will be based on wages, and not on any other consideration. If we are going to have universal Free Trade, it can only be when all rates of wages are the same throughout the industrial world.
In the whole course of this Debate speakers on both sides have appealed far too much to general principles. But no speaker has appealed to general principles for deciding all such questions as our Debate is concerned with, and with such novel and disastrous results, as the speaker whom we have just heard. How can anyone suggest nominal wages without regard to the circumstances that exist to-day, or that they can possibly be made a basis for comparison or for legislative or executive action? I leave it at that, for we have listened to a sheer paradox never before uttered in this House. I complain that in the last speech we have an extreme example of what has characterised the whole Debate, namely, dealing with this question of general principles. I should like to try to bring the Debate back to the question which is really before the Committee.
Two general questions have been improperly brought into the Debate, the one the general question of Free Trade, and the second the general question of Protection. I have listened to a great many speeches to prove the goodness of Free Trade—in which I believe I have listened to a good many speeches to prove the goodness of Protection—in which I disbelieve very strongly. I believe both sets of speeches are beside the point. I would just like to say what I consider the attitude of the Government. I speak neither with endearment nor with suspicion. The Government contains Members, who, in the great fight between 1903 and 1906, fought Protection hard; it also contains Members who fought then for Protection. Neither at this moment is trying to prejudge the result of the next great controversy in this country on Protection. The Government seems to me to be perfectly straight. The Free Traders in it are Free Traders still. The Tariff Reformers in it are Tariff Reformers still. When the great fight conies again—and I am quite sure it is coming—they will take their different ways, and we shall all take our different ways. In the meantime the Government are conservative enough as a whole to abide by the established fiscal system of the country, is pledged to take up a certain position, and not to indulge in any cold-blooded or gratuitous change of policy.
What I mean in regard to that is this: It is not at the present moment a question of disturbing the Free Trade basis of our fiscal system, but looking back on the War the Government feel themselves in an atmosphere of war and renew their contact with the experience of the War. In the War we thought we were hard hit by the Germans because there were many things we could not or did not make. I am bound to say that I see no reason why we should not accept the military experience of the War, which the Government, as representing the State, is the best authority upon, and admit to ourselves—whatever our predilections may be—that that military experience cannot be ignored. We must be willing, to whatever party we belong, to try to avoid in the next war—I say that with no wish to see more wars, though I am unwilling to suppose we shall have none—men of all parties must be willing to take precautions which the past War has shown to be necessary in order that we may not be taken at a disadvantage by Germans, French, or Russians, or whoever they may be. The main question, the subordination of commercial advantage to military need, is in this case quite unquestionable. That is not to say that I have not some points in which I should like to criticise the Government. A good many people think that the list of trades included might be longer. I think it might be shorter, and for this reason: I regard the question of nationalisation as really the prime issue of to-day's politics.
I fear in this question of key industries that every industry which we erect into a key industry on sound military grounds becomes an object lesson to help in the theory and practice of the parties that seek after nationalisation. I want to see the key industries which are necessary on military grounds kept to an absolute minimum. I am not quite convinced, and I should like to hear further from the Government on this point, that this does represent the absolute minimum. So far as I have followed this Debate I have not heard detailed proof or explanation from the Government regarding the industries which they propose to include. I have come to the House from a general meeting of the Central Profiteering Committee which for years has been in the public eye from its inquiry into Trusts. It is perfectly plain that the state of key industries raises, or may raise, in an acute way the question of trusts and monopolies.
The Government is unable this Session to introduce a Bill for permanent legislation regarding trusts. I have to ask the Government whether it would not consider the insertion in this Bill, which none of us have seen, of some provision whereby the dangers that attend the monopolies or the quasi-monopolies which are going to be established by this Bill, could not be warded off? There is the danger from profiteering by some provisions which would continue some kind of machinery comparable to that set up by the Profiteering Acts, and which would be useful during the interregnum while we were waiting for next year's legislation of a permanent sort concerning trusts. I come now to the second Resolution. As regards dumping, at the very least it is a real danger. I see no objection in principle for a Free Trader—and I count myself a sensitive Free Trader—to accept this schemed-out measure of defence against dumping. I see no reason either why, in the present peculiar and almost incurable state of the exchanges, some measures should not be taken to prevent certain trades peculiarly hard hit by the exceptional and, one hopes, the temporary state of the exchanges, from being wiped out of existence with great loss to the nation. Having said that I agree with the Government in principle, I go on to say that the method whereby these trades are being determined seems to me to be distinctly unworkmanlike. I say frankly there is far too much Board of Trade about it and not nearly enough of the advice, of an Advisory Committee, such as we have been accustomed to.
I do not think that the hon. Member heard the speech of the President of the Board of Trade. The Board of Trade will not make an Order except on the recommendation of such a committee.
I am very glad to hear that explanation, for it disposes of one point in my criticism. I am glad to hear that a committee will be consulted, but the most important committee of all is this House. I should like to be assured in unequivocal terms that any proposals shall come before this House effectively, so that this House may have the very last word upon it. My last point is that I feel we are entitled in principle to take some modest measure of protection in order to prevent the state of the exchanges ruining some of our trades in a sudden spasm of unfair competition. The measures to be proposed in the Bill which is to follow these Resolutions, and any measures which any Government could propose, would never put the exchanges right. We are told that the only thing that will put the exchanges right is a free exchange of goods. How can you have that state of things with Germany under present conditions? In the first place, the exchanges are affected not merely by commercial causes, but by the kind of speculation with which we were familiar before the War, when there was a variation from day to day owing to various causes. They are affected by political issues and by fiscal issues, and in a very large degree by speculation as well. Therefore the exchanges will not be got right in that way until there is peace on the continent.
One condition of success for the legislation of the Government is that its foreign policy should be clear, firm, and successful. We are still in the shadow of the War, and Europe is still ruled by force. If we had any force there, the word and wish of Britain would count, but from a worthy motive and from sentiment we disbanded our Army and abolished conscription the day after the War was over, and the result has been to leave our Government, wisely led as it has been, without the ultimate support which is always needed in a postwar period of a powerful Army. I am not suggesting sending a large Army to the continent, but we are suffering in the exchanges because the attitude of Britain, which is wider and more friendly, and longer sighted than any other European Power, although still represented in many ways, is not backed up by force. There is also the fiscal question in Germany itself.
Our exchange with Germany will never come right until German finance is put right, and she is made to toe the line. Those are the main points at issue, and I see no chance of the Germans toeing the line until they are made. The success of this legislation depends in great part upon the success of the general foreign policy of the Government in Europe, and it depends also upon our Government, let us hope in conjunction with its Allies, taking a grip of the internal finance of Germany, and insisting that the currency shall be deflated, or that the inflation should cease and that the German Government shall tax the German people in such a way as will make it necessary for Germany to further depreciate her currency.
9.0 P.M.
The hon. Member who has just sat down has touched upon, in his last few words, one of the very important points that arise in this Debate, and that is that Germany should be compelled to make her currency inside her own country coincide with that outside. That would have a very great effect upon many things. We have heard from the Labour benches and from the last speaker a great deal about trusts and combines. I have always been up against any combination of any sort or kind. I have always thought that trusts wanted looking after, and I have always thought that trade unions wanted looking after. There arises out of this Debate, and particularly out of the speeches we have heard recently, the very strong point that if we are not going to combine in this country altogether we shall go down. There must be a combination at the present time not only of trade combines, but the combines and trade unions must amalgamate and see that this country does carry out its work in a proper way and is able to compete successfully, and until we get more production that cannot be done.
I have watched an industry grow up during the War, and I have had peculiar opportunities of seeing that particular industry grow up. This point has been alluded to by the hon. and gallant Member for Central Wandsworth (Sir J. Norton-Griffiths), and it is in Wandsworth where I have seen that industry grow up—I am alluding to the gas mantle industry. That is an industry with which I came into very close contact, because I presided at one of the military tribunals in Wandsworth, and there we had repeatedly applications for exemptions from service from the people who were trying to deal with that industry. This particular industry grew from very small dimensions prior to the War, but during the War it grew to a position of considerable magnitude and importance to the country. I went with others to see the exhibition recently held on the Embankment, and we saw gas mantles there and all the etceteras belonging to that business offered at a price which does not enable people to live in this country at all, and gives them no opportunity. This industry will be in the same parlous state that it was in before unless something is done for it. I am inclined to think that the Government have made a mistake in not including such an industry as that, because from it flow so many other things that are wanted during war time. It has been said, and probably rightly, that everyone will be claiming to come within the portals of the Bill. It may be that some pruning will have to be done, but, unless these industries which grew up during the War have some protection, they cannot thrive in this country. I cannot understand gentlemen who call themselves Labour Members saying that they believe in Free Trade. Why do they believe in Free Trade? Because they say there should be a flow of goods between country and country. We have never seen that; it never has happened. We in this country have allowed a lot of free imports to come in, but we have never had Free Trade. What does Free Trade mean? It means that our commodities should flow into other countries in an equal way without tariff, as they flow into this country. If that is so, I am a Free Trader, and I hope that everyone of us would be. But where these tariffs are put up, as they are and have been, it is our duty to protect our people by something similar, until we can all come to an agreement. The sooner we put them on the sooner we shall come to an agreement, and probably we may then get an opportunity of having something like Free Trade.
As has been mentioned, many of these industries were started during the War, people put their money into them, built factories, and got together skilled people; and now we hear the right hon. Gentleman the Member for Paisley say that the Paris Resolutions were a War-time measure and nothing else. If that is the way in which we are going to let people down in this country, we cannot expect that they will branch out into fresh industries. We must give them an opportunity to get on their feet and stand on their feet. Unless something is done for the industry to which I have alluded, it will collapse. I understand that it has something like 4,000 people out of work now, and a large number on half-time. It started in the very smallest way, and was built up gradually as the War went on; but ever since the judgment of Mr. Justice Sankey, which upset many ideas, the industry has flagged. Millions upon millions of gas mantles are imported into this country. The Resolution even includes the very important substance, thorium, without which we cannot make gas mantles, and it seems but a very small step to include the product, upon which the wages are paid, in the same list. I understand that this cannot be done. I hope that in the Bill something will be done, but I think we ought to have a distinct and straight statement from the Board of Trade why gas mantles have now been suddenly thrown out. I am speaking on this question because it was especially apparent to me during the War that the industry was being built up under considerable difficulties and at considerable expense, and that all these special people were being got together who are now going to be abandoned.
There is one further point to which I should like to allude, namely, the so-called collapse of the exchanges. The mark to-day is worth approximately 1d. in this country, but its value in Germany is about 3d. Its value inside the country is three times what it is outside. What is the reason for this very extraordinary state of affairs? I think it is unquestionably that the German people have depreciated their mark purposely. They have said, "What poor people we are! Look at our mark!" I understand that at the present time wages in Germany range from 6 to 8 marks an hour for general workmen. Taking it at 8 marks, that is 2s. per hour, which is about the same rate that we have here. But when you bring it into England, that 8 marks only becomes 8d. The rate of exchange goes down by two-thirds. I am very glad that the Government have introduced these Resolutions. I wish they had introduced them a year or 18 months ago, because I believe it would have had a great effect upon the trade of this country. However, "Better late than never." I hope that when the Bill comes it will be a Bill that we can deal with, and that will improve the position with regard to foreign countries and with regard to the collapsed rate of exchange.
I desire to deprecate as strongly as I can the attempt to resolve this discussion into a controversy on Free Trade versus Tariff Reform. In saying that, I have not only my fellow Free Traders in view. Speeches have been made on both sides which, I think, are detrimental to the general effect of the discussion in this respect. There was the speech of my hon. Friend the Member for the Moseley Division of Birmingham (Mr. Hannon). I should like to congratulate him, as a new Member, on making so admirable a first speech. He is obviously able to add to the interest and value of discussions in the House of Commons. Obviously he is familiar with his subject and is a practised speaker on it. He chaffed the Minister of Health for having seen the light and developed his views during the War, but he has not changed himself. He has learned nothing and forgotten nothing from the War, and he made the same statement that he would have made before the War in support of Tariff Reform and Protection in the most direct and downright manner. I deprecate on one side or the other the transforming of this discussion into a controversy between Free Trade and Protection. These Resolutions may be right or they may be wrong but I maintain that in general principle they do not contain any challenge to Free Trade doctrine or economic principle. There is nothing in the general principle of these Resolutions which might not be supported by the strongest Free Trader and there is nothing in them that might not be opposed by the most determined Protectionist. We have an example of that in what has gone before. The general principle of these Resolutions has obtained the definite consent and approval of protagonists of Free Trade like the right hon. Gentleman the Member for Paisley (Mr. Asquith), like Mr. Runciman and like Mr. MacKenna, and it is no use saying that that assent was merely given to the Paris Resolutions for the purposes of the War because I have a distinct recollection that after the War was finished, just on the eve of the last General Election, when the Prime Minister and the late leader of the Unionist party issued their joint letter in which was contained a definite pledge with regard to key industries and with regard to dumping, the right hon. Gentleman the Member for Paisley, speaking as the leader of the Liberal party and the chief spokesman of Free Trade, definitely stated that there was nothing in that declaration which he could not support. On the other hand we have newspapers like the "Express" and the "Observer," which have been equally pronounced and determined protagonists of Protection, and the pure milk of Protectionist doctrine, strongly and vehemently opposing these Resolutions, and we have the right hon. Baronet the Member for the City (Sir F. Banbury), whose Protectionist and Tariff Reform orthodoxy no man would question, who is anything but a friendly critic of much that is contained in these Resolutions.
I maintain that these proposals of the Government, made in an abnormal period of emergency, ought to be judged upon their merits for the object to which they are directed. Is there an evil, is there a danger for which an immediate remedy has to be submitted? Are the proposals which are contained in this Bill likely to remedy that evil or avoid that danger, and if the proposals are directed to that object is the object which they seek to attain a desirable one? If it is it is not enough merely to reject the proposals, but those who reject them have to accept the responsibility of stating what alternative proposals they put forward to meet those dangers and to save the country from the evils which exist in its midst at present.
In the Resolutions under discussion there are three separate proposals, perfectly distinct and not related to one another in any sense of the word. There are the proposals with regard to key industries, there are the proposals with regard to dumping and there are the proposals with regard to the collapsed exchanges. These are three separate and distinct objects, raising wholly different problems. They are matters which, in my opinion, ought to have been dealt with in three separate Bills. There is no time in a discussion of this kind to discuss adequately all these three subjects, and that was clearly proved in the speech of the President of the Board of Trade, which was devoted to the first two of these subjects and omitted altogether to deal with the question of the exchanges, which is a subject of by far the widest application and by far the most difficult and most thorny that is contained in these Resolutions. On the part of those who have supported the Resolutions, there has been very little discussion, indeed, of this aspect of the question, which is of the most vital importance by far to the country, to industry as a whole and to our trade and commerce, and the one that affects them the most widely. I do not propose to say much about the first two subjects. At the General Election I gave a pledge to support legislation with regard to both key industries and dumping without reservation, and I mean to honour that pledge not merely in the letter but in the spirit, and I do not mean to cavel about minor and technical difficulties. There are points which I have to raise. There are certain questions about definition, whether this or that industry has to be included, what is the definition of dumping, and various other questions of practical application. I am content to raise these questions of detail on the Committee stage when the Bill is produced.
We come to the third aspect of these Resolutions—that which affects the foreign exchanges. I know of no subject which is more unsuited for debate in this House, or anywhere, than the question of foreign exchanges. Debate leads us very little forward. It is not because the subjects are specially mysterious. I do not believe they are. The general principles which regulate the exchanges are perfectly well known and understood, but it is just as difficult to prophesy what any movement is going to be with regard to the exchanges as it is with regard to the weather, and the general conditions which regulate the weather are perfectly well known and understood. The multitude of conditions, the infinite variety of them, the manner in which they inter-act and re-act upon one another is so great that it is impossible for anyone to take them all into account and to lay down any consistent rule as to their variation.
Is that why they are taxing barometers?
That may be so. From that point of view it is just as profitable in a discussion of this kind to discuss the question of weather as of the exchanges. I propose to deal with the actual existing evil and the remedies suggested. I have not heard the existence of the evil denied by anyone in the Committee. It is patent, it is clamant. Great distress is caused by the competition of goods coming from countries with a depreciated exchange. In my belief it will not matter what Government is in power, whether it be a Coalition Government, a Labour Government or a Government consisting entirely of Members of the Independent Liberal party.
Will they get enough support?
Even if there were a General Election, and they got enough support, they would be forced to deal with this problem, and to bring forward some proposals for remedying it.
Unrestricted trade.
I think it will be folly not to propose something more than that.
Looking at the subject broadly, there are three different methods of finding a remedy. In the first place, one may attempt to regulate the inflow of imports from countries with a depreciated exchange. An alternative method would be to attempt to grapple with the evil at its source, and to find some method of correcting the exchanges. In the third place, there is the remedy which someone has suggested of laissez faire , of letting things take their course, but of coupling it with palliatives and remedial measures on the most extensive scale for correcting the distress which is caused by letting things take their course.
The method which the Government has adopted is the first, namely, that of attempting to regulate imports from those countries which have a depreciated exchange. One is bound to assent to this, that of all the possible methods of doing that the Government have chosen the simplest and the one which involves the least interference with trade—a flat rate tariff of 33⅓ per cent. upon goods coming from those countries.
Eighteen months ago the Government submitted a different measure, the Imports and Exports (Regulation) Bill. The method proposed there was a very different and much more complicated one, which involved much more interference with trade. It involved practically the system which prevailed during the War, prohibition of imports coupled with licence. It involved the rationing, not merely of every industry in the country, but of every single individual in the country in accordance with the views of what some Government official or officials thought were the interests of the country as a whole. Not only that, it involved a tariff which was not a flat rate tariff, but which might vary in accordance with every class of goods and consignment of goods. That is a system which we endured with difficulty during the War, but it would be quite intolerable and impossible in times of peace. I think the Government acted wisely in abandoning the proposal they made 18 months ago. This proposal for a flat rate tariff is much simpler and involves much less interference with trade. Many people will be attracted to it on that account, but I think, if it is examined and considered more fully, it will be found that there are many difficulties and many dangers in it which are not apparent at first sight.
By restricting imports of goods from countries with a depreciated exchange, we do not put an end to their competition; we only change the channel of that competition. We may keep out goods from coming direct, but while the exchange is adverse to these countries—it is because these countries owe us money, whether in the form of debts or of reparation—trade must find its level. The goods which we refuse to accept here will be driven to find their market in some other part of the world, in countries which for this purpose I may call neutral countries—
Our own Dominions.
And to the extent to which they find markets there they will be depriving our manufacturers at home of the foreign markets which they have had in the past. The effect of this will be, not to free us from competition, but simply to drive that competition into another channel and to protect one set of manufacturers at the expense of another set of manufacturers who depend not on home, but on foreign trade.
That is the first step in a circular tour, it is merely the beginning of the matter. These countries with a depreciated exchange—France, Belgium and Germany—owe us large sums of money. They will still be owing the money, and they must still pay it. When they send their goods to some of these other markets—America, Brazil, China, Japan, Sweden and the British Dominions—they will still have to find some means of paying the debt they owe us. There will therefore be an artificial stimulation of exports from these neutral countries to this country in order that the credits may be established here whereby Germany, France and Belgium may pay the sums which they have to pay us. Therefore we shall be subjected to further competition in our home market as a result of the artificially stimulated exports from these other and neutral countries.
That is not all. By this Bill we should be protecting not merely our home manufacturers but the foreigner in our own home market at the expense of the British consumer. Take paper just as an example. We get our paper supplies from America, Norway, Sweden, Germany, and Finland. Of these countries, the only two which have a depreciated exchange as compared with us are Germany and Finland. The supplies of paper coming to us from Germany and Finland keep down the price of paper from America, Sweden, and Norway. If we impose a tariff of 33⅓ per cent. on German and Finnish paper, and if we restrict the imports of paper from Germany and Finland, we are enabling America, Sweden, and Norway to raise their prices against us. It is not the British manufacturer that we are protecting, but it is the foreigner we are protecting in our home market at the expense of the British consumer. We are sending money out of the country at a time when we can little afford to send money out of the country. The review which I have given seems to indicate that the general effect of these proposals would be to increase competition with our manufacturers in countries in which there is no competition at present, or not so much competition. It would mean the transfer of competition from one set of goods in our home markets to another set of goods, and in addition it will mean, so far as countries are concerned which have not a depreciated currency, an artificial protection of the manufacturers in those countries in our home markets at the expense of the British consumer.
That is the price we have to pay, but even when we have paid this price, is this measure going to be effective for the purpose for which it is devised? I went, as other hon. Members have done, to the exhibition of goods held in this neighbourhood last month, and I think the universal testimony, not merely of the visitors, but of those who were conducting the exhibition, was that so far as the vast majority of articles there were concerned, so great is the depreciation of exchange in those countries that 33⅓ per cent. would be no protection at all. In some cases not even 100 per cent. would be a protection. Nothing short of complete prohibition would afford a real remedy for the particular trade. If we resort to prohibition, the result of prohibition would follow the same vicious circle as that which I have already attempted to describe. So much for the method of attempting to regulate imports from countries with depreciated exchanges.
There is an alternative method of dealing with this subject. One of the main factors, I do not say the sole factor, in depreciating the exchanges is the balance of indebtedness. Those countries which are affected owe us large sums of money in the shape of loans which we have lent to our Allies, or reparation which is due from Germany. We might attempt to deal with this matter at its source, and to correct the exchanges, and the one method of correcting the exchanges would be to cancel those debts and to cancel the reparation. That is a drastic remedy, but I do not think it ought to be ruled out of consideration on that account. The Government has not ruled it out of consideration. They have done much more than consider it, they have actually embodied it in a practical proposal which they have made to America. They have made a proposal to America that there should be an all-round cancellation of the loans which were advanced to the different countries during the War.
Not of the reparation.
I was speaking of the loans to the Allies. We should stand to lose most in this matter. America has rejected the proposal, as she had a perfect right to reject it; but our Government, knowing that we would lose most, have, nevertheless, thought that it was worth our while to consider taking that drastic step, and America may still find that it is in her interest also to re-consider her decision in the matter. I suggest that no opportunity should be lost of exploring further this aspect of the subject. As to the reparations due from Germany, they are exercising a powerful influence on the exchanges, and they constitute one of the elements of this problem which we have to consider. The present tangled and indeterminate situation with regard to these reparations has an effect upon the exchanges, and I urge that that should be borne in mind, and that the Government ought to consider in regard to that, as they have considered in regard to the proposal we have made to America, that it is in our interest, even at the sacrifice of some of the reparation, to secure a definite settlement. We have everything to gain by the establishment of settled conditions, and a really settled and permanent peace throughout Europe as a whole.
The last method of approaching the subject is by letting trade take its course, by letting these goods come in, and by attempting by some direct action to alleviate the distress and remedy the hardship caused by this excessive competition. That is the natural remedy, to let trade take its course, and the cure will come more surely and more quickly in that way; but the distress will be great, and the distress will have to be dealt with in some way. The most obvious proposal for dealing with it is that of the unemployment dole, but that proposal is discredited in advance. It is wasteful, it is wealth-destroying, and I think it has a permanent deteriorating influence upon the character and upon the capacity of those who are the victims of it. There is another proposal which has not received the attention it deserves, and which has been too hastily ruled out. In this problem we are not dealing with a mere momentary appearance, with a thing that is going to last a month or two, but we are dealing with a problem that is going to exist a considerable time. Therefore, this proposal ought to have received fuller consideration than it has received, and ought not to have been dismissed so hastily.
The evil is caused, curiously enough, by the inflow of wealth into the country. It is caused because, owing to the debts which these countries owe, there is a large inflow of wealth into this country under conditions which secure that there is no reciprocal return in exports. I submit that in this country, as happened in other countries after great wars, some of that wealth which is flowing into the country and which will ultimately reach, not private traders, but the Government, because it represents debts due to the Government, might during this period of distress caused by that competition be used for undertaking great works of national importance, which would add to the permanent wealth-producing power of the country and at the same time provide employment which would balance the unemployment caused by this unrestricted competition. By great works of public importance I do not mean peddling little schemes. I mean really great works, such as the development on a national scale of transport, roads and light railways, of a national electricity scheme, and even of greater works like the Forth and Clyde Ship Canal, and the Channel Tunnel.
Will the hon. Gentleman give us some indication of that great flow of wealth?
If the hon. Member will look at the Returns he will find what I mean. He knows that our Allies owe us vast sums of money. Money has been received during the past year, I forget the exact amount, in the form of reparation from Germany, and more will be received during this year, and. it is the existence of these debts and these obligations which is the prime cause of the exchanges being in the state in which they are now. I know that there are other causes, but these are the prime causes. The carrying out of great works of national importance such as I have indi- cated would add to the wealth producing power of the country and give a permanent asset. Works of this nature have been carried out by other countries in periods when they were subject to similar conditions, when they were receiving a great inflow of tribute from other countries which was not met by a reciprocal outflow of exports. There is nothing extraordinary in what I am suggesting, because this very proposal is the proposal contained in the reconstruction scheme which was submitted by the Government before the last election. It is the identical proposal, and I think that it was too hastily abandoned. I know that there are objections, objections from the financial point of view, that this is not the time to encourage expenditure, and not the time to increase taxation. But what is the alternative? [HON. MEMBERS: "Doles!"] The alternative is this Bill, which is an increase of taxation, which is levying taxes on the people of this country, not for the benefit of this country, but taxes which will go out of the country to subsidise foreigners in our own markets at the expense of the British consumer.
It is a wholly wasteful tax, wasteful in its operation, and more wasteful in the consequences which it will have in the increased prices we shall have to pay in the neutral countries as a result of this taxation. The proposal with regard to the rates of exchanges is more wasteful than unemployment doles are. At a y rate, seeing that we have got to spend money in some form or other in meeting this evil, and that this Bill means extra taxation and waste, I submit that it is better that the expenditure incurred should be in such a form as will leave the country with a permanent asset, add to its wealth-producing power, and provide a large measure of employment during this crisis. As a result of this review of the different methods of dealing with the subject, I submit that the method which the Government has chosen of dealing with the exchange problem is the least satisfactory of all possible methods. It does not cure the evils which it is designed to cure, and it will cause new evils of even a greater kind.
This country lives by its foreign trade, which is the most important branch of its trade. I heard it said yesterday in the Debate that it does not matter much about having increased competition in foreign markets, that the only thing that matters is increased competition in home markets. But the markets by which we live, by the profits of which we support the dense population of this country, are not the home markets, but the foreign markets. We are the factory, the workshop, the trading depot of the world. Foreign trade is our lifeblood, and anything that injures, hampers or restricts foreign trade is an injury to this nation as a whole. Any proposal which aims at curing an evil in our home trade by the sacrifice of our foreign trade is grasping at the shadow instead of the substance.
My hon. Friend who has just sat down has advanced the proposal that we should cure our ills during this period of crisis, which we presume is only temporary, by building the Channel Tunnel and other works of great public importance. I am glad that he admits what I think we must all admit, that some remedy must be found. Personally I agree with his general thesis that no solution will be found by a system of tariffs. I agree entirely that we live by our foreign trade in regard to the greater part of our population, but I have to make one reservation which I hope will be of importance. But before I come to that I divide the subject into what seems to me to be only two questions. The first is this. In the course of this Debate I think everybody has admitted that, if there really be what is termed a "key industry," it must be maintained. I remember in the days of the old fiscal controversy in which I took a hand, and made more speeches almost than any other Member of this House, we all agreed that if in the ordinary process of free exchange a country found itself without certain elementary needs, it was the bounden duty of that country somehow or other to amend that state of affairs. I remember one famous Australian statesman saying that, though he was a Free Trader, he was not prepared to see his country just a hewer of wood and a drawer of water. I remember another eminent Free Trader on this side saying that if the result of Free Trade in Australia would be that they would not make their own horseshoes, they must find some means of doing so.
Our contention at that time as Free Traders was that this country, by the process of Free Trade, made everything that was essential. All parties in this House are agreed that the War, not because it was a war that killed each other, but because it interrupted the flow of things, proved to us that we did not have the things we wanted. [An HON. MEMBER: "We did not grow rubber!"] We did not have a great many things that we thought we should have. Some of them are in this list, but not all. One I see which I happen to know something about, because the people who make it are in my constituency. I make that a present to my opponents, if there are any. I refer to hosiery latch-needles. I am quite sure my hon. Friends behind me will think that hosiery latch-needles cannot be important. In point of fact, this was, as my right hon. Friend the Member for Paisley (Mr. Asquith) would be the first to admit, one of the most astonishing cases of a key industry. We could not make any hosiery. Sister Susie was knitting socks for soldiers because we had not enough of this little thing. It was most difficult to get sufficient hosiery for our troops. It seems absurd that, although we had this gigantic trade, although in the process of Free Trade we made almost everything a man could want, there was one little thing without which we could not make any hosiery at all, and which caused the Government the gravest embarrassment.
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I agree with every word my right hon. Friend the Member for Paisley said on that matter. I am quite sure you must maintain at all hazards certain key industries. I do not know whether this list is complete or whether some of it may be too full. We admit at once how undesirable it is that there should be a crowd of people come howling to this House, saying "We are a key industry." It is very undesirable, but it is unavoidable, and I think anybody who approaches it impartially, and, in fact, I may say everybody who has. approached it impartially, whether he be Liberal, Conservative or Labour, who has examined this question, sees that there are certain things which the country must produce, because, in the event of our foreign trade, our lines of communication, being interrupted, the whole of a great industry would collapse for the lack of some small, simple thing. Therefore, I am unhesitatingly in favour, and I think all who study it apart from any party question are in favour, of maintaining certain of these key industries, but I do agree that the better effort is to proceed by subsidy, so that you know just where you are. I do commend to my right hon. Friend the President of the Board of Trade, who, I know, is a very impartial man in this matter, that it would be far wiser to proceed by direct subsidy to maintain certain definite things which the State must have, in order to avoid the manifold dangers that follow from the introduction of a system of tariffs in order to maintain essential services. The point, which has been very often made, that by a system of tariffs you put the money into the pockets of the particular producers who make these things is a good one. There are many more cogent reasons in favour of proceeding by direct subsidy for key industries. For my own part, I shall support His Majesty's Government in maintaining key industries, but I shall unhesitatingly vote for my hon. Friend's Amendment to limit this for one year as a protest against the system of doing it, believing as I do that you must do it by direct subsidy, so that everyone shall know where he stands, and it shall be to everyone's interest not to increase these things, but, as would be the case under a system of subsidies, to diminish them. The other side of the question is when we come to our industries as a whole, and here, if I may respectfully say so, I think there has been a confusion in this Debate between what is termed dumping and the foreign exchanges. My right hon. Friend the Member for Paisley said that if you have a clear case of dumping, everybody would agree that something ought to be done, and, indeed, I notice that some of my hon. Friends who are Free Traders said the same, but the definition of dumping that has been given during the course of this Debate seems to me to be a very wrong definition. It confuses, as is so often done, commerce with war. Commerce is not a kind of internecine warfare. It is a business of buying and selling to one another for reciprocal advantage, and it could be no advantage to us if there were a "deliberate intention," as one phrase had it, or a "wilful attempt," or a "definite attempt," or a "hostile attempt," as others have put it, to capture our industries and to destroy them. Who cares what the motives of the people may be who sell steel at a lower price here? I say, as a humble student of economic affairs, all you have to consider is not what their motives are, but whether the operation is to be permanent. If it is to be permanent, then, I am sure, the only thing you can do is to cut your loss, and trust to free exchange and fight hostile tariffs with free imports, and, hard as the road may be, to try some other means. If it be permanently true that Germany or America can produce steel for 50 or 100 years to come far below the cost at which we can produce it, we had much better go out of business in that line, hard as it may be, and try to find some other means by which our industrious and wonderful people can keep their end up. You cannot bolster up key industries like that.
Here is a case of dumping in the sense I would prefer to define dumping, as a temporary importation so that it is probable that during a comparatively short interval your designing and technical staff of experts and your machinery will rust; then the thing will happen, which every Free Trader dreads, that, instead of having a great dispersed production, you have a production from only one source or a restrictive number of sources, and then the whole world price will rise. Then it is agreed by everyone that dumping must be dealt with. But the point I wish to make is that, if it be true that the mark is worth 1d. here and 4d. in Germany, and similar situations elsewhere produce the condition under which we cannot sell anything either abroad or at home for a limited period, and that at the end of a limited period, when the thing re-asserts itself, we shall have to start the whole of our industries over again, then I am quite sure it is a case of dumping, and something must be done. Nor do I think the suggestion of my hon. Friend (Mr. MacCallum Scott) who has just sat down that you should employ the 1,000,000 people, now unemployed in these industries, in building the Channel Tunnel and other works of public importance could possibly meet the case. What you want to do is to make sure that in these great elaborately built up industries the actual machinery shall not rust and the designing and technical staffs which are worth even more than the machinery shall not be dispersed; and if it be a fact that after this temporary trouble has disappeared we can make steel and other things better and cheaper than other people then something must be done during the interval. The question is, is this the best way to cope with, it? Frankly, I do not think it is. The-present method suggested has many difficulties. What relation has the 33⅓ per cent. duty to any particular exchange? It might not be half enough to keep your technical experts and your machinery going; it might be too much. It may be you will utterly fail. It may be it will bring in large sums to the Exchequer and so encourage people to believe that this is, the way out of our difficulty. I cannot believe that the President of the Board of Trade has been well advised in adopting this particular method. I should have thought, and those with whom I have had the privilege of counsel confirm me in that view, that a duty varying with the rate of exchange and frankly stating it will fall and ultimately disappear as the exchanges right themselves, would be a much wiser and safer plan. I will be asked, "Do you definitely oppose it?" Yes, I do, and for this reason: because I am sure that if we attempt to cure our present ills by a system of imposing tariffs as a permanent part of our fiscal system, and as a means of maintaining high wages, this country is really doomed. I am sure of it. A temporary expedient to meet a temporary difficulty I think you ought to take, and, if it cannot be done in the way of a subsidy with large industries—and I am disposed to think that is true—I think you ought to frankly say this is not a protective tariff in any sense of the word; but it is the fact that money in foreign countries purchases more for the indigenous inhabitants than it does outside, and the result is a bounty upon exports. It so happens, owing to the industrial chaos of the moment, that export trade is also impossible. The result is, as we all know, that we cannot sell our goods at home because of this strange bizarre upset which no one ever foresaw, owing to the collapse of exchanges. We cannot sell abroad because nobody is able to purchase, because of the complete lack of public confidence in every country except one or two, of which, fortunately, this country is one; and therefore the works are all idle for a temporary cause. I am persuaded that action should be taken, but I implore the President of the Board of Trade to reconsider this particular proposal, for I am well persuaded that if, as a consequence of this proposal, it be found that a certain amount of money flows into the Exchequer, and wages are maintained at a high level for that reason, and people are therefore tempted to suppose that by putting on 33⅓ per cent. tariff, or, if that does not do, a 50 per cent. tariff, irrespective of the rate of exchange, a claim will come for a still higher tariff. Then indeed this country, which until now, I am persuaded, is secure with its industrious and ingenious population and bound to win through all its difficulties, if it once takes this fatal step, this great maritime country and all its great prosperity, will fade away.
The right hon. Gentleman who has just sat down has made a suggestion with regard to key industries which has been put forward by two or three others who opposed the particular methods proposed by the Government. I venture to suggest that a little more acquaintance with the actual working of these particular industries would show that any attempt to keep them going by subsidy would be impossible. It is a little on the same lines as the suggestions made by two or three speeches yesterday evening to the effect that we should try and persuade these great industries to set up a board of professors to study and learn how to do the thing in theory. These particular industries, in order to be able to work and to produce the goods at the time when they are wanted, have got to be maintained in such a way as not merely to have a certain number of scientific professors who are able to learn the industry in theory, but they have got to have skilled workmen whom it takes years and, in some cases, almost generations to train, and the only practical way in which you can make these industries of practical use is by keeping them going as practical working industries in the meantime. If I may with all respect, I would heartily congratulate the right hon. Gentleman (Major-General Seely) on distinguishing himself from some of the other Gentlemen who have not recovered so far from the inflammation of Free Trade principles, and have not yet apparently seen the necessity of assisting these essential in- dustries in any way. We heard yesterday from the hon. Member for Oldham (Sir W. Barton) that he could not support the protection of these industries because they were all of them in some way a form of raw material or product which is necessary for the use of other industries, and therefore assisting them offended against his Free Trade principles. Surely this country hardly shows to advantage when we get men in the British House of Commons apparently forgetting as soon as this the things which we heard in the days of the War. My hon. and gallant Friend the Member for Leith (Captain W. Benn), who cheers that so much, probably remembers the time when men in France cursed the slackness and the mistakes made by their country when motor lorries, aeroplanes, and other things broke down because they had to make the best shift they could with inefficient American magnetos. He knows, too, perfectly well, speaking of the glass industry that he was discussing last night, that over and over again it was said in this country, and probably he said it himself, "Never again are we going to allow ourselves to be put in a position where, fight with all the pluck that we may, it may be useless because some little bit of glass which is an absolute necessity for the manufacture of almost every fighting implement is missing, because we have never learned how to make it." The hon. and gallant Member for Leith last night rather laughed at the idea of our trying to protect this industry of scientific glassware because we found it necessary in the last War, and I think he was rather wrong in his history when he spoke of the discovery of gunpowder coming soon after the Battle of Hastings.
I never said that.
At any rate, we won our battles for two centuries with bows made from yew trees planted in the churchyards which he laughed at. For two centuries at least the scientific glassware industry will be necessary for many purposes of war, whatever direction developments may take. Surely it is easy to see that, when you realise that you can have no steel, you can have no ships, you can have no aircraft of any sort properly and satisfactorily produced, unless you have the scientific glassware available which is necessary at some time in the early stages of providing what is necessary. Surely it is a practical point. If hon. Members will turn their minds back for a moment or two they can hardly fail to think of the dark years gone by; they can hardly allow the question of free trade principles to interfere with the universally admitted necessity—admitted except by a few doctrinaire professors of free trade principles—of protecting those things which might enable an enemy to starve us into submission in the very early stages of a war. Hon. Members opposite anticipate our having no war in future. We all hope that that may be so, and that we may escape it on terms. But the danger I forsee, if we do not protect ourselves in some of these ways, is that there will be no war because we shall not be able to fight. The hon. and gallant Member for Leith (Captain W. Benn) laughs, but will he consider this as a possibility? I think he admits the necessity of some of these things, in case there should be a war. Does he realise that the Germans at the expense of not more than £50,000 a year on the scientific glassware industries could probably destroy that industry in this country? Does he realise that if they did that thoroughly and provided themselves with big stock and took care that the stocks over here were short, they might at some time in the future, on a sudden outbreak of war, put us in a position where it would be impossible for us to fight? It is not a question of protecting an industry for any commercial purpose, you may call them key industries or essential industries, but a more correct term is that they are national insurance industries. If we are to ensure our national life we must protect these industries without which the courage and muscles of our people will be useless in any future struggle.
I will turn for a moment to the second Resolution. It has been the burden of many speeches against this Resolution that by any legislation of this kind you cannot stabilise or rectify collapsed exchanges. I do not think anyone has suggested that you can do that. What has happened is this: You have a certain state of affairs brought about by reason of a very abnormal condition. Let us grant that that abnormal condition can be remedied only by certain natural means which take a long time. In the meantime, there is no reason why you should not try to alleviate some of the distress which is caused thereby. The right hon. Gentleman who spoke last touched upon the real object of the legislation proposed in these Resolutions. We cannot by these means alter the exchanges or make them come right. I go so far as to admit that this sort of legislation may, to some extent, even delay the return of the exchanges to normal. Meanwhile, however, what is going to happen if we do nothing? As the right hon. Gentleman says, our industries will die. The machinery will grow rusty, everything will get out of working order, and we will be unable to start again without a heavy expenditure in money, brains and time. It is much better to do something now to keep our industries alive until that time comes when they are in a position to compete and when natural causes have restored the exchanges to a normal condition.
Let me commend to hon. Members on the opposite Benches, and particularly those of the Labour party, the need for giving a little consideration to this question. The right hon. Gentleman the Member for Paisley was quite frank when he said, "You cannot put the exchanges right by means of this Bill"; and I think he also said he would much prefer, however hard it might be, to allow this transient situation to remedy itself. He made some comparison of the situation to-day with what happened when our predecessors went through an abnormal period following on the first introduction of machinery. The first introduction of machinery had this effect, that a large number of the labouring classes were starving for many years. If there had been a little more intelligent effort and legislation to soften down the change from the old days of hand labour to the days of machinery, there would not have been that starvation among the working class. If you take the course recommended by the right hon. Gentleman in regard to the abnormal condition of the exchanges, and wait until the transient situation has passed—doing nothing to alleviate distress in the meantime—you will have thousands of your people out of work. Keeping them alive by doles from the State only makes it more difficult in the future for this country to recover her prosperity. You may not be starving them now, but you are starving their children in the future, and in the present complex condition of industry you are destroying machinery which will have to be built up again at tremendous cost before employment can be provided by the restoration of industry. I was glad to notice some approval on the Treasury Bench in response to the remarks I made with regard to the assistance of essential industries. If the Government realise the absolute necessity of preserving these national insurance industries, I beg them to remember that there is some doubt as to whether this measure will be sufficient to achieve that object. I welcome their proposals for this reason, that they show at least a good intention, and I venture to hope, with a good deal of confidence, that if it turns out insufficient, the Government will take further measures for the purpose.
I want to call particular attention again to this question of scientific glassware in this connection. There was an hon. Gentleman on the Front Bench opposite who spoke last night who was under an extraordinary misapprehension—and I think many others here have suffered from it—that some makers of scientific glassware had made money out of it during the War. I will defy any hon. Member to produce to me any authentic case—and I know something of what I am talking about here—of any firm who made these kinds of scientific glassware during the War and who could by any stretch of imagination be called profiteer or who made any commercial success at all. Far from that, the position of these particular men is this. So great was the necessity for this industry, that it was taken up by the Government, assisted by them, and promised further assistance in the very earliest days of the before the Ministry of Munitions even existed, and I would remind Members on the Government Bench that those men were at least given to understand that if they had this help, they would be expected to put themselves at the disposal of the Government for 10 years after the War, and equally that during those 10 years they would receive such assistance as might be necessary to keep them going.
The real history of this industry is that during the War they had to learn to make these things, at great expense and great trouble. They made them in the end satisfactorily. They have proved that they can produce an article as good as or better than was ever produced in Germany or Austria during the War, and in some branches they have even now been able to produce them at least as cheaply as over there, but there is more to be done yet. It is an industry which in all these many branches cannot be perfected in that way even in a matter of 7, 8, or 10 years, and unless that industry is given a really good chance of training its workers and learning not merely to turn out a thoroughly efficient article, but to turn it out on a good commercial basis, you cannot have that industry in such a satisfactory position as that it will be of use to us in the case of war in the future. The industry has proved this at any rate during the War, that, given a fair chance to start on level terms, it can hold its own with Germany, with Austria, or with any other country in the world; but unless you give it that fair start, it will be killed, not merely by the competition of the present time, but by the absolute intention of many of those who are enemies of this country to subsidise its competitors in such a way as to destroy it.
I do not rise to deal with abstractions but rather with part of the subject of which I have some practical knowledge, and in which I think I shall be able to trace the facts in a way that will throw a little light on these proposals. The right hon. Gentleman the Member for Swansea yesterday adjured us to avoid Shibboleths. It seemed strange to hear from the Free Trader that he professes to be that the principles of Free Trade were but Shibboleths. The right hon. Gentleman did not seem to be aware that they were the summed-up experience of this nation and other nations. He seemed to be in the humour to suppose that if one asserted that two and two make four that that was a Shibboleth, and that one as a broad minded individual must be prepared to accept it as a possibility that two and two might make five.
However, I am not going to pursue that side of the question. I desire to take up some of the practical suggestions which he made to us, and try to follow them up. He said that if we did not adopt some such measure as this the country was in danger of suffering from a flood of foreign goods. He evidently meant a flood of cheap goods, because if they were not cheap there could not be very much chance of their coming in a flood. If you put it that way, the danger to the country of suffering from a flood of cheap goods, I think you have the vein which runs through the whole of the various proposals in this measure, and that is the fear that the cheapness of these foreign goods is going to be an injury to the country. I would ask where are these cheap foreign goods coming from?
In the first place, I suppose they may come from Germany, and come by way of payment to us under the heading of reparations. I do not know how we can get payment of reparations except by taking goods from these countries. I would point out that at any rate up to the present we have not got this flood of cheap goods. We are suffering from a certain trade depression, but it is not caused by these cheap goods because we have not got them. The reparations have not begun, and when they do begin they will be in a very limited amount. It is true—and I think it is due to us in fairness to say it—that the old arguments about exports paying for imports does not apply in the case of the goods sent out for reparations. But I say again, any goods coming in that way must be a very limited amount. If you take any other cheap goods coming here I suppose they will come from friendly countries, and they will be paid for by exports which we will send to these countries. Meanwhile we will have the benefit of cheap living and cheap manufactures in this country. If we do not pay for them by way of exports they would not come here.
I wish particularly to take up the point which the right hon. Gentleman made, that we must face the danger of our steel works standing idle for years. I used to be engaged in the iron trade, and therefore I know a little about it. I say that it is quite impossible for this country to be really injured by steel or iron coming here cheaply. It might be very inconvenient, indeed, for some of us who derive our living from steel or iron if a particular branch of trade which we depend upon was injured by steel and iron coming from other countries, but I believe it to be perfectly impossible for the country as a whole to be injured in that way. If the steel and iron comes in they must come in the form of pig iron, ingots, or billets. Although that would be awkward for those making those articles, it would be an enormous advantage to many other trades in the country and would increase and not diminish employment. Supposing these cheap materials came here. The effect would be to stimulate the production of rails, sheets, and ingots here, and machinery for bridgework and the building of ships. It is impossible for those cheap materials to come here in enormous quantities, but supposing they came here so as to overwhelm our trade. So long as it comes here in large quantities and comes cheaply it will stimulate other branches of the iron and steel trade far more than it will check the cruder parts of those processes. If some philanthropic country sent us iron or ingots free of cost we should develop such an enormous trade in shipbuilding and machinery that we should become enormously rich, and our trade would be immensely enriched. If we refuse to have this cheap steel somebody else will get it, and they will get the world's trade through having that cheap material.
It is said we can keep our iron trade by means of a tariff, but that will not benefit it, because this country lives by its export trade, and we cannot by a tariff keep the world's trade in iron and steel. If we let in these cheap material we have a better chance of developing a vast trade in the more finished products. We shall be told that would be all right if trade was in a normal state, but with collapsed exchanges you should not let in cheap things on that account. I do not see, from a national point of view, that it makes any difference what is the cause of getting cheap materials, because that gives us an advantage. Great changes and fluctuations are apt to produce temporary disorganisation. It is said, if you let the materials come in cheaply there will be a great deal of distress, but if you keep them out there will be more distress, because you will kill more industries than you will save.
You cannot put this right by a tariff. If you allow the foreign goods to come in the exchanges will tend to put themselves right, and settle at some steady level, which will enable trade to go on. The collapse has taken place because foreign countries have great sums of wealth abroad, and if you allow them to pay by exporting, the exchanges will put themselves right, and I know of no other way. What I have said with regard to the iron and steel trade applies, I believe, to nearly all the trades of the country, and to that trade as a whole. If you keep out the cheap products of other countries you keep out the raw materials of various trades, and the means of cheap living for your people. You do not increase employment; you destroy more employment than you give. I believe that that is the thread which runs through the whole of these proposals. The Minister of Health made it clear when he talked of the danger of a flood of cheap goods coming to this country. It is because I believe that the coming in of cheap goods is not going to injure the trade of this country, but on the whole to do what it always has done, namely, to help the development of our trade, that I, for one, cannot possibly vote for this Resolution.
I am not going to deal with the question as a whole. I might have a good deal to say about key industries, and should be prepared to admit the necessity of doing something—preferably by subsidy—to maintain an industry when it is absolutely proved to be necessary for use in time of war; but I believe that these proposals go far beyond that, and that the, real object lies, not in these small matters, but in the hope expressed by the hon. Member who spoke last, that, if it is not found that these present duties do all that is hoped of them, they would lead to further and higher duties on more extensive lists of goods, until at last we should come to the ideal of the protective system which, we know, is so dear to the majority of those who are now promoting the Bill.
I rise to support the Resolution which is before the Committee. I have listened with very great attention to many of the speeches. The hon. Member for Consett (Mr. A. Williams) really had very little to say with regard to the actual Resolution that is before the Committee, but delivered the sort of speech that he might have delivered if he had been supporting Free Trade a great many years ago. The considerations before the Committee ought to be looked at entirely apart from the question of Tariff Reform or Free Trade, and from the point of view both of the conditions that arose during the War and of the condition of the collapsed exchanges after the War. We ought to dissociate our minds from either Free Trade or Tariff Reform. One would have thought that Free Trade was as dead as a doornail after the Paris Conference. I always thought that Free Trade meant the absolutely free importation of goods without any taxation; and yet we know that at the Paris Conference industries were pointed out which Free Traders advocated should be subject to taxation. If there were only one industry requiring taxation, it would be an end of Free Trade, and would be some reform, at any rate, of the tariff. The degree would be a question for discussion.
In the proposals before the Committee we are considering, in the first place, key industries; and there is no doubt that we learned to our cost during the War that we were relying on certain industries for essential materials. For instance, scientific glassware has been pointed out as being one of those industries that had got into the hands of foreigners, and as one on which we were absolutely dependent. You cannot carry on a chemical industry unless you have a microscope; you cannot build a submarine unless you have a periscope; and in all these things one requires scientific glassware. An aeroplane is no use unless you have a motor, and a motor is no use unless it has a dynamo, and tungsten is required in that case. Again, in my constituency a very big business had been built up in hosiery by a Free Trader, and suddenly he found himself deprived of latch needles during the War, and he was blaming the Government. He has been completely converted from Free Trade principles on that particular point. I have also in my constituency a couple of firms which are interested in glassware. One of the proprietors assured me the other day that he was exporting to Germany certain kinds of glassware for ships' lights, harbour lights, headlights, port lights, and so on. But it is quite possible for the Germans to undertake at any time the ruin of various trades by subsidies.
At present the country is in a very sad state on account of the depreciated currency. The mark, which was formerly worth 1s. 0½d., is to-day worth something in the neighbourhood of 1d. It is true the German workman is getting his six marks an hour, and he may be inclined to think he is doing very well, and probably lives upon his six marks pretty much as the English worker would do on 6s. an hour, but we have to look at it in this way. When the goods he makes are exported they come into this country not on the value of the mark in Germany but on the value of the mark in the world's exchange, and we are importing German labour at the rate of 6d. an hour. It is impossible for industries in this country to survive and to pay 2s. an hour for labour, and at the same time have goods coming into the country which are made at the rate of 6d. an hour. It is a question of the German 6d. against the English 2s., and no one is proposing to go to his constituency and advocate that we should leave things alone and allow things to settle themselves until the English workman is pushed back to the position of accepting 6d. an hour. I recommend it to the members of the Labour party, if they think they would be listened to with any degree of enthusiasm if they advocate a system of Free Trade which will force wages in this country down to 6d. an hour. I was at a loss to understand the right hon. Gentleman the Member for Platting (Mr. Clynes) or the line that he took with regard to the international regulation of wages and so on for putting this difficulty right. He is opposed to these Resolutions and so is the right hon. Gentleman (Mr. Asquith), and I take it, if the right hon. Gentleman (Sir D. Maclean) were here, he would also be opposed. They all represent constituencies beginning with a P and they are each right hon. Gentlemen, and I think they would be as like as peas in a pod with regard to their opposition to the Government, but I do not know that from any point of view their opinions are very helpful.
The right hon. Member for Platting said that there was a great difficulty in identifying the key industries, but if it could be shown that any kind of legislation would support the key industries he would give it his support. We are not concerned with those letters which we receive from different manufacturers, who wish to be included in these Resolutions, all that we are concerned with is whether the industries mentioned in the Government proposals are really key industries. On that point we are agreed, and so far no one has been able to say that they are not key industries.
The right hon. Gentleman also pointed out that he had been to an exhibition which was held in this neighbourhood, where German goods were displayed side by side with British goods, and he received the cheers of his own supporters when he said that the importer was receiving a profit and that these goods were being sold at very little below the cost of English goods. The right hon. Gentleman maintained that the extra tax of 33⅓ per cent. on imported goods would be paid by the consumer. That is quite impossible. It cannot be argued both ways. If these German goods were being sold only slightly below the cost of the British goods, that 33⅓ per cent. would put them out of court, and the consumer would buy English goods. If, however, they were sold considerably below the cost of British goods, naturally, of course, if the British consumer bought them, he would pay the 33⅓ per cent. Too much attention is given to the consumer, and not enough to the producer. After all, production comes before consumption. It is no use consuming unless you have produced, and the general run of working men are not in a position to eat their Sunday dinner unless they have done a week's work beforehand. It is therefore very important that production should be considered.
In addition to this, some hon. Members have pointed out the difficulty of defining the question of dumping. It is immaterial to the man in the street how dumping is defined, all that he knows is, that when dumped goods come along he is driven out of work. Whether it is a question of defining or not, it is selling goods in this country below the cost of production or below the selling price in the country of origin. It does not matter a great deal, but it amounts to the same thing in the end. It also does not matter whether the foreigner is out to destroy our market and our industry, or whether he is simply unloading his surplus production. The same thing obtains, our people are driven out of work and our industries become idle. It has been contended that the manufacturer wants to have a steady market, and that he wants to know what lines the Government are taking in order to look after his interests. Some objection has been raised that he cannot really depend on Government Departments, and that there is uncertainty in regard to many kinds of Government interference. There is, however, uncertainty because first one country and then another is trying to undermine his work. I have great
pleasure in giving my support to the Resolutions.
Question put, "That the words years 'stand part of the Question."
The Committee divided: Ayes, 289; Noes, 79.
Division No. 99.] AYES. [10.55 p.m. Adair, Rear-Admiral Thomas B. S. Davies, Thomas (Cirencester) Kerr-Smiley, Major Peter Kerr Addison, Rt. Hon. Dr. Christopher Denniss, Edmund R. B. (Oldham) Kidd, James Agg-Gardner, Sir James Tynte Dockrell, Sir Maurice King, Captain Henry Douglas Allen, Lieut.-Colonel William James Doyle, N. Grattan Knight, Major E. A. (Kidderminster) Amery, Leopold C. M. S. Du Pre, Colonel William Baring Lane-Fox, G. R. Archer-Shee, Lieut.-Colonel Martin Edwards, Major J. (Aberavon) Law, Alfred J. (Rochdale) Armitage, Robert Elveden, Viscount Lewis, Rt. Hon. J. H. (Univ., Wales) Ashley, Colonel Wilfrid W. Eyres-Monsell, Com. Bolton M. Lewis, T. A. (Glam., Pontypridd) Astbury, Lieut.-Com. Frederick W. Falcon, Captain Michael Lloyd, George Butler Atkey, A. R. Fell, Sir Arthur Lloyd-Greame, Sir P. Bagley, Captain E. Ashton Fisher, Rt. Hon. Herbert A. L. Locker-Lampson, G. (Wood Green) Baird, Sir John Lawrence FitzRoy, Captain Hon. Edward A. Locker-Lampson, Com. O. (H'tingd'n) Baldwin, Rt. Hon. Stanley Forestier-Walker, L. Lonsdale, James Rolston Balfour, George (Hampstead) Foxcroft, Captain Charles Talbot Lorden, John William Banbury, Rt. Hon. Sir Frederick G. Frece, Sir Walter de Lort-Williams, J. Banner, Sir John S. Harmood- Fremantle, Lieut.-Colonel Francis E. Loseby, Captain C. E. Barlow, Sir Montague Ganzoni, Sir John Lowe, Sir Francis William Barnett, Major Richard W. Gee, Captain Robert Lowther, Major C. (Cumberland, N.) Barnston, Major Harry George, Rt. Hon. David Lloyd Lowther, Col. Claude (Lancaster) Beauchamp, Sir Edward Gibbs, Colonel George Abraham Mackinder, Sir H. J. (Camlachie) Bellairs, Commander Carlyon W. Gilbert, James Daniel M'Lean, Lieut.-Col. Charles W. W. Benn, Sir A. S. (Plymouth, Drake) Gilmour, Lieut.-Colonel Sir John Macpherson, Rt. Hon. James I. Bentinck, Lord Henry Cavendish- Goff, Sir R. Park Macquisten, F. A. Betterton, Henry B. Gray, Major Ernest (Accrington) Maddocks, Henry Bigland, Alfred Green, Joseph F. (Leicester, W.) Magnus, Sir Philip Birchall, Major J. Dearman Greene, Lt.-Col. Sir W. (Hack'y, N.) Maitland, Sir Arthur D. steel- Bird, Sir A. (Wolverhampton, West) Greenwood, William (Stockport) Mallaby-Deeley, Harry Bird, Sir William B. M. (Chichester) Gregory, Holman Malone, Major P. B. (Tottenham, S.) Blades, Sir George Rowland Gretton, Colonel John Manville, Edward Blair, Sir Reginald Gritten, W. G. Howard Marks, Sir George Croydon Boscawen, Rt. Hon. Sir A. Griffith- Guest, Capt. Rt. Hon. Frederick E. Marriott, John Arthur Ransome Bottomley, Horatio W. Guinness, Lieut.-Col. Hon. W. E. Mason, Robert Bowles, Colonel H. F. Gwynne, Rupert S. Meysey-Thompson, Lieut.-Col. E. C. Bowyer, Captain G. W. E. Hacking, Captain Douglas H. Middlebrook, Sir William Boyd-Carpenter, Major A. Hailwood, Augustine Mildmay, Colonel Rt. Hon. F. B. Bridgeman, Rt. Hon. William Clive Hall, Lieut.-Col. Sir F. (Dulwich) Mitchell, William Lane Briggs, Harold Hambro, Angus Valdemar Molson, Major John Elsdale Brittain, Sir Harry Hamilton, Major C. G. C. Mond, Rt. Hon. Sir Alfred Moritz Broad, Thomas Tucker Hannon, Patrick Joseph Henry Montagu, Rt. Hon. E. S. Brown, Major D. C. Harmsworth, C. B. (Bedf., Luton) Moore, Major-General Sir Newton J. Bruton, Sir James Henderson, Major V. L. (Tradeston) Moreing, Captain Algernon H. Buckley, Lieut.-Colonel A. Hennessy, Major J. R. G. Morris, Richard Bull, Rt. Hon. Sir William James Henry, Denis S. (Londonderry, S.) Morrison, Hugh Burn, Col. C. R. (Devon, Torquay) Herbert, Col.. Hon. A. (Yeovil) Munro, Rt. Hon. Robert Butcher, Sir John George Herbert, Dennis (Hertford, Watford) Murchison, C. K. Carew, Charles Robert S. Hewart, Rt. Hon. Sir Gordon Murray, John (Leeds, West) Casey, T. W. Hilder, Lieut.-Colonel Frank Nail, Major Joseph Cautley, Henry Strother Hills, Major John Waller Neal, Arthur Cayzer, Major Herbert Robin Hoare, Lieut.-Colonel Sir S. J. G. Newman, Colonel J. R. P. (Finchley) Cecil, Rt. Hon. Evelyn (Birm., Aston) Hohler, Gerald Fitzroy Newman, Sir R. H. S. D. L. (Exeter) Chadwick, Sir Robert Burton Holbrook, Sir Arthur Richard Newton, Major Harry Kottingham Chamberlain, Rt. Hn. J. A. (Birm.,W.) Hood, Joseph Nicholson, William G. (Petersfield) Chamberlain, N. (Birm., Ladywood) Hope, Lt.-Col. Sir J. A. (Midlothian) Nield, Sir Herbert Chilcot, Lieut.-Com. Harry W. Hopkins, John W. W. Norman, Major Rt. Hon. Sir Henry Child, Brigadier-General Sir Hill Horne, Edgar (Surrey, Guildford) Norton-Griffiths, Lieut.-Col. Sir John Churchill, Rt. Hon. Winston S. Home, Sir R. S. (Glasgow, Hillhead) Ormsby-Gore, Hon. William Churchman, Sir Arthur Hotchkin, Captain Stafford Vere Palmer, Brigadier-General G. L. Clay, Lieut.-Colonel H. H. Spender Hunter, General Sir A. (Lancaster) Parker, James Clough, Robert Hurd, Percy A. Parry, Lieut.-Colonel Thomas Henry Coats, Sir Stuart Hurst, Lieut.-Colonel Gerald B. Pearce, Sir William Cockerill, Brigadier-General G. K. Inskip, Thomas Walker H. Pease, Rt. Hon. Herbert Pike Colvin, Brig.-General Richard Beale Jackson, Lieut.-Colonel Hon. F. S. Peel, Col. Hn. S. (Uxbridge, Mddx.) Conway, Sir W. Martin James, Lieut.-Colonel Hon. Cuthbert Pennefather, De Fonblanque Cope, Major William Jameson, John Gordon Percy, Lord Eustace (Hastings) Cowan, Sir H. (Aberdeen and Kinc.) Jellett, William Morgan Perkins, Walter Frank Craig, Captain C. C. (Antrim, South) Jephcott, A. R. Perring, William George Craik, Rt. Hon. Sir Henry Jodrell, Neville Paul Pinkham, Lieut.-Colonel Charles Croft, Lieut.-Colonel Henry Page Johnson, Sir Stanley Pollock, Sir Ernest Murray Curzon, Captain Viscount Jones, sir Evan (Pembroke) Poison, Sir Thomas A. Davidson, J. C. C. (Hemel Hempstead) Jones, J. T. (Carmarthen, Llanelly) Pownall, Lieut.-Colonel Assheton Davidson, Major-General Sir J. H. Kellaway, Rt. Hon. Fredk. George Prescott, Major W. H. Davies, Alfred Thomas (Lincoln) Kelley, Major Fred (Rotherham) Pretyman, Rt. Hon. Ernest G. Raeburn, Sir William H. Shortt, Rt. Hon. E. (N'castle-on-T.) Watson, Captain John Bertrand Randles, Sir John Scurrah Simm, M. T. Wheler, Col. Granville C. H. Rankin, Captain James Stuart Smith, Sir Harold (Warrington) White, Col. G. D. (Southport) Raper, A. Baldwin Sprot, Colonel Sir Alexander Whitla, Sir William Raw, Lieutenant-Colonel Dr. N. Stanley, Major Hon. G. (Preston) Wild, Sir Ernest Edward Rees, Sir J. D. (Nottingham, East) Steel, Major S. Strang Williams, C. (Tavistock) Rees, Capt. J. Tudor- (Barnstaple) Stevens, Marshall Williams, Col. Sir R. (Dorset, W.) Remer, J. R. Stewart, Gershom Wills, Lt.-Col. Sir Gilbert Alan H. Remnant, Sir James Strauss, Edward Anthony Wilson, Capt. A. S. (Holderness) Renwick, George Sturrock, J. Leng Wilson, Daniel M. (Down, West) Richardson, Alexander (Gravesend) Surtees, Brigadier-General H. C. Wilson-Fox, Henry Roberts, Rt. Hon. G. H. (Norwich) Sutherland, Sir William Winterton, Earl Roberts, Samuel (Hereford, Hereford) Terrell, George (Wilts, Chippenham) Wise, Frederick Robinson, Sir T. (Lancs., Stretford) Thomas-Stanford, Charles Wood, Hon. Edward F. L. (Ripon) Rodger, A. K. Thomson, F. C. (Aberdeen, South) Wood, Sir H. K. (Woolwich, West) Rothschild, Lionel de Thomson, Sir W. Mitchell (Maryhill) Wood, Major Sir S. Hill (High Peak) Roundell, Colonel R. F. Thorpe, Captain John Henry Woolcock, William James U. Rutherford, Sir W. W. (Edge Hill) Townley, Maximilian G. Worsfold, T. Cato Samuel, A. M. (Surrey, Farnham) Townshend, Sir Charles V. F. Worthington-Evans, Rt. Hon. Sir L. Samuel, Samuel (W'dsworth, Putney) Waddington, R. Young, E. H. (Norwich) Sanders, Colonel Sir Robert Arthur Walters, Rt. Hon. Sir John Tudor Younger, Sir George Sassoon, Sir Philip Albert Gustave D. Walton, J. (York, W. R., Don Valley) Scott, A. M. (Glasgow, Bridgeton) Ward, Col. J. (Stoke-upon-Trent) TELLERS FOR THE AYES.— Scott, Leslie (Liverpool Exchange) Ward, William Dudley (Southampton) Mr. McCurdy and Colonel Leslie Wilson Seager, Sir William Warner, Sir T. Courtenay T. Seddon, J. A. Warren, Sir Alfred H.
NOES. Ainsworth, Captain Charles Hall, F. (York, W.R., Normanton) Nicholson, Reginald (Doncaster) Asquith, Rt. Hon. Herbert Henry Hartshorn, Vernon Parkinson, John Allen (Wigan) Barker, G. (Monmouth, Abertillery) Hayday, Arthur Raffan, Peter Wilson Barnes, Major H. (Newcastle, E.) Henderson, Rt. Hon. A. (Widnes) Rendall, Atheistan Barton, Sir William (Oldham) Hinds, John Richardson, R. (Houghton-le-Spring) Benn, Captain Wedgwood (Leith) Hirst, G. H. Robinson, S. (Brecon and Radnor) Bramsdon, Sir Thomas Holmes, J. Stanley Rose, Frank H. Briant, Frank Hopkinson, A. (Lancaster, Mossley) Seely, Major-General Rt. Hon. John Brown, James (Ayr and Bute) John, William (Rhondda, West) Shaw, Thomas (Preston) Cairns, John Johnstone, Joseph Short, Alfred (Wednesbury) Cape, Thomas Jones, J. J. (West Ham, Silvertown) Smith, Sir Allan M. (Croydon, South) Carter, W. (Nottingham, Mansfield) Kennedy, Thomas Smith, W. R. (Wellingborough) Cecil, Rt. Hon. Lord R. (Hitchin) Kenworthy, Lieut.-Commander J. M. Spencer, George A. Clynes, Rt. Hon. John R. Kiley, James Daniel Swan, J. E. Cowan, D. M. (Scottish Universities) Lambert, Rt. Hon. George Thomas, Sir Robert J. (Wrexham) Davies, A. (Lancaster, Clitheroe) Lawson, John James Thomson, T. (Middlesbrough, West) Edwards, C. (Monmouth, Bedwellty) Lister, Sir R. Ashton Walsh, Stephen (Lancaster, Ince) Edwards, G. (Norfolk, South) Lunn, William Waterson, A. E. Entwistle, Major C. F. Lyle-Samuel, Alexander White, Charles F. (Derby, Western) France, Gerald Ashburner Macdonald, Rt. Hon. John Murray Wignall, James Galbraith, Samuel Maclean, Neil (Glasgow, Govan) Williams, Aneurin (Durham, Consett) Gillis, William Mallalieu, Frederick William Wilson, Rt. Hon. J. W. (Stourbridge) Glanville, Harold James Morgan, Major D. Watts Wilson, W. Tyson (Westhoughton) Graham, R. (Nelson and Colne) Murray, Hon. A. C. (Aberdeen) Wintringham, Thomas Griffiths, T. (Monmouth, Pontypool) Murray, Dr. D. (Inverness & Ross) Wood, Major M. M. (Aberdeen, C.) Grundy, T. W. Myers, Thomas Guest, J. (York, W.R., Hemsworth) Newbould, Alfred Ernest TELLERS FOR THE NOES.— Mr. G. Thorne and Mr. Hoggs.
It being after Eleven of the Clock, the Chairman left the Chair to make his Report to the House.
Committee report Progress; to sit again To-morrow.
Mr. Speaker's Retirement Bill
Read the Third time, and passed.
Consolidation Bills
Ordered, "That so much of the Lords Message [of 5th May] as communicates the Resolution, 'That it is desirable that all Consolidated Bills in the present Session be referred to a Joint Committee of both Houses of Parliament' be now considered."—[ Colonel Gibbs. ]
So much of the Lords Message considered accordingly.
Resolved, "That this House doth agree with the Lords in the said Resolution. "—[ Colonel Gibbs. ]
Message to the Lords to acquaint them therewith.
The remaining Orders were read, and postponed.
Adjournment
Resolved, "That this House do now adjourn."—[ Colonel Leslie Wilson. ]
Adjourned accordingly at Nine Minutes after Eleven o'clock.