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Commons Chamber

Volume 147: debated on Thursday 20 October 1921

House of Commons

Thursday, October 20, 1921

The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.

Private Business

Standing Orders

STANDING ORDER 105.—

The Committee of Selection, in the case of all Private Bills other than Railway and Canal Bills, and the General Committee on Railway and Canal Bills in the case of such Bills, shall, subject to the Order in regard to the interval between the Committal of every Private Bill and the Sitting of the Committee thereupon, fix the time for holding the First Sitting of every Committee on a Private Bill which shall have been referred to either of the said Committees.

Amendment proposed: To leave out the words

"in the case of all Private Bills other than Railway and Canal Bills, and the General Committee on Railway and Canal Bills in the case of such Bills."—[ The Deputy Chairman of Ways and Means. ]

Is this proposed as a permanent alteration of the Standing Orders, or does it apply only for the remainder of this Session?

In August last the House decided to discontinue the Railway and Canal Commission, which was no longer necessary, and it ordered that the necessary alterations be made in the Standing Orders. Those alterations have been made; but it was discovered that two alterations which ought to have been made then were omitted. This only refers to Private Bills and the Railway and Canal Commission. These alterations are consequential and drafting, and are intended to carry out the decision of the House in August last.

Amendment agreed to.

Further Amendment made: Leave out the words "either of the said Committees," and insert instead thereof the word "them."

STANDING ORDER. 136.—(

In all cases of opposed Private Bills, in which no parties shall have appeared on the Petitions against such Bills, or having appeared shall have withdrawn their opposition before the evidence of the Promoters shall have been commenced, the Committees on such Bills shall forthwith refer them back, with a statement of the facts, if not Railway or Canal Bills, to-the Committee of Selection, and if Railway and Canal Bills, to the General Committee on Railway and Canal Bills, who shall deal with them as Unopposed Bills.

Amendments made: Leave out the words "if not Railway or Canal Bills":

Leave out the words "and if Railway and Canal Bills, to the General Committee on Railway and Canal Bills."—[ The Deputy-Chairman of Ways and Means. ]

Oban Burgh Order Confirmation Bill,

"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to Oban Burgh," presented by Mr. MUNRO; read the First time; and ordered (under Section 9 of the Act) to be read a Second time upon Friday, 28th October, and to be printed. [Bill 218.]

Greenock Corporation Order Confirmation Bill,

"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to Greenock Corporation," presented by Mr. MUNRO; read the First time; and ordered (under Section 9 of the Act) to be read a Second time upon Friday, 28th October, and to be printed. [Bill 219.]

East Lothian County Buildings Order Confirmation Bill,

"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to East Lothian County Buildings," presented by Mr. MUNRO; and ordered (under Section 7 of the Act) to be considered upon Monday next.

Oral Answers to Questions

Questions

Pensioned Children (Supervision and Protection)

asked the Minister of Pensions what steps are taken by his Department with regard to the proper supervision and legal protection of pensioned children?

Under the War Pensions Act of 1918, I am charged with the duty of making provision for the care of the children of officers and men killed in the War who are suffering from neglect or want of proper care, and, as contemplated in the Act, I have delegated the administration of this duty to the Special Grants Committee. For the most part the children who are thus cared for by the Special Grants Committee on my behalf are those whose mothers are dead. The mother, if living, is, of course, the legal and natural guardian of the child, and I cannot ordinarily assume control unless the neglect of the child is such as to justify an appeal to the Court under the Children Act for the mother's removal.

Have any complaints reached the right hon. Gentleman that proper supervision has not been exercised?

I do not think so. If my hon. Friend hears of any cases, I should be glad if he will bring them to my notice.

Is the right hon. Gentleman aware that in some cases where children have been in Poor Law schools, the Poor Law authorities have absolutely re fused to send the children to the homes provided, because they have been so inadequate, insanitary, and overcrowded?

Ireland

Ballyheigue Castle (Compensation Claim)

asked the Chief Secretary for Ireland whether he is aware that Ballyheigue Castle, County Kerry, recently burnt to the ground, was occupied by Government forces, consisting of auxiliaries, Royal Irish Constabulary, and Regular troops, said to be over 100 men, from 22nd March to 26th March of this year, during the temporary absence of the tenant, Mr. R. E. Palmer that during the said occupation much damage was done to the furniture and household effects; that locked storerooms and cupboards were broken into and the contents used and stolen; that the actual damage and loss amounts to £133 0s. 8d.; that an offer was made on the 9th September by the land agent, headquarters, 6th Division, Cork, to settle the claim for £6 2s.; and whether he will have the matter investigated and see that fair and proper reparation is made to the claimant, the said Mr R. E. Palmer?

These premises were partially occupied by a mixed party of police and military between the dates stated. Compensation has been allowed in respect of one week's rent, 5 cwt. of coal consumed, and the cost of cleaning and disinfecting. No further liability is admitted by the Crown, and the allegations as to damage and theft during the period of occupation, which have been carefully investigated by both military and police, and found to be unsupported by evidence, are denied. If other evidence to the contrary should be forthcoming there will be no hesitation on the part of the military or police authorities in considering it or in bringing any offender to justice or in facilitating Mr. Palmer, if he chooses, to take civil action. If it can be shown that there was any malicious damage in this case the injured party has a remedy in the Malicious Injuries Acts.

Munitions (Importation)

asked the Chief Secetary if the police in Ireland have been instructed to refrain from preventing the importation of arms into Ireland and not to search vessels for arms?

asked the Chief Secretary whether it is the case, as stated in the Press, that under the terms of the truce arms and ammunition are allowed to be imported into Ireland for the use of the so-called Irish Republican Army?

asked the Chief Secretary whether he is aware that during the last three months arms have been, and are being, regularly imported into Ireland for the use of the Irish Republican Army; whether orders have been issued by any Government official or authority in Ireland, and, if so, by whom forbidding the police from searching for arms in ships arriving at Irish ports, with a view to their seizure; and whether he will take effective steps to stop the importation of arms into Ireland?

asked the Chief Secretary why the police have been ordered to desist from searching cargoes for arms, in view of the fact that the Sinn Feiners have been importing arms during, and in violation of, the so-called truce?

asked the Prime Minister whether arms and ammunition are still being imported into Ireland for the Sinn Fein forces; and what steps are being taken to prevent this breach of the law?

On a point of Order, Mr. Speaker. May I ask why my Question, No. 12, has been altered, and the word "rebels" changed to Sinn Feiners? If these men call themselves rebels, and Ministers call them rebels, why cannot a private Member of this House call them rebels?

Under my instructions, questions are not accepted which carry an implication or insinuation. In pursuance of that instruction of mine, the hon. and gallant Member's question was altered.

The importation of arms into Ireland for the use of the Irish Republican Army would clearly constitute a breach of the truce. Rumours that arms and ammunition have been imported since 11th July have come to the knowledge of the British authorities, and every such rumour has been at once investigated. The statement that the police have been instructed to refrain from preventing the importation of arms into Ireland is entirely without foundation. The special arrangements for the search of ships enforced before the truce are still in operation. There has never been any relaxations of the usual customs precautions against contraband, which includes arms and ammunition.

Is it a fact that the special port police who were employed in searching for arms have been withdrawn and are no longer operating?

No, that is not true, but for a short time after the truce was declared certain auxiliary police in certain ports were withdrawn.

Has there been any alteration since the so-called truce in the procedure of searching for arms which are being introduced for the purposes of the Irish Republican Army?

There has been no change, with this exception, that under the terms of the truce His Majesty's Government, with the Commander-in-Chief, agreed that there would be no search of the person. Other than that, it is exactly the same as before.

Will the right hon. Gentleman say why arms carried on persons intended to be used by the Irish Republican Army cannot be stopped?

Because His Majesty's Government wish honourably to obey the terms of the truce.

Did not the terms of the truce refer to people in Ireland? Surely that does not apply to people coming over sea to Ireland.

I did not say that it did. I am dealing entirely with people in Ireland and on shore in Ireland.

Will the right hon. Gentleman lay the terms of peace on the Table of the House?

Is it not a fact that even at the present time American-owned ships of 4,000 and 5,000 tons are arriving in Irish ports, that they are carrying only 400 or 500 tons, and that these ships are being met by small craft when they reach the Irish coast, and not only that, but arms are being smuggled—

In this and any other case, if the hon. Member or any other hon. Member would send or telegraph any information to Ireland, there will be no hesitation on the part of the Government in Ireland to make the most drastic search and endeavour to stop any importation of arms.

Is my right hon. Friend aware that these ships are arriving in Ireland at the present time; and the Admiralty take no steps whatever to prevent these arms from coming into Ireland?

I cannot admit on a suspicion of the kind indicated by the hon. Gentleman that there is any fact in the case. The Admiralty, and every other unit of the Forces of the Crown, will do its best to stop any importation of arms. I should welcome any information that would lead to a discovery; but mere suspicion of ships arriving is not enough.

Sinn Fein Courts

asked the Chief Secretary if Sinn Fein courts have been held in Dublin, Kilkenny, and elsewhere in Ireland. purporting to administer justice, and inflicting fines and other penalties on British subjects summoned to appear before them; and if such proceedings have the sanction of His Majesty's Government?

asked the Chief Secretary whether so-called republican courts are being held in Dublin and other parts of Ireland, purporting to exercise civil and criminal jurisdiction; if he can say what system of law, if any, these courts purport to administer; whether fines or other penalties have been inflicted by these courts on British subjects; and whether the Government holds itself responsible to compensate any British subjects who have been forcibly subjected to illegal penalties?

asked the Chief Secretary whether he is aware that republican courts are being constantly held in Ireland, at which British citizens are summoned to attend and are sentenced to pay fines and to suffer other penalties by these illegal tribunals; whether this course of proceeding has the approval of the Government; and, if not, whether he will state what steps the Government are taking to suppress these illegalities?

Many reports have been received regarding the increased activities of illegal courts in various parts of Ireland since the date of the truce, and steps have been taken which it is believed will result in removing the grounds of complaint. No person in Ireland is under any obligation to attend any court other than the King's Court, and the Government are prepared to afford all necessary protection to persons who are illegally required to attend unauthorised courts or are subjected to penalties by such courts.

That question is answered by what I have said. The holding of any court, other than the King's Court, that was not held prior to the truce is a breach of the truce.

Is the right hon. Gentleman aware that the real cause of these questions is because the Sinn Feiners have declared a boycott against Bass's beer?

I have asked a question in number 7 which has not been answered: whether the Government holds itself liable to compensate people who by terrorism are brought before those courts and subjected to penalties?

If any of these people refuse to pay, I can assure the hon. Gentleman they will be protected. I will consider the question.

I do not mean protection. In those cases where by terrorism in order to save their lives—and there are many such cases—will the Government, which has been unable to give them protection, give them compensation for what they have suffered?

I cannot accept the statement that during the truce anybody has been in danger of his life for refusing to pay such penalties. That is my view borne out by the facts.

I shall consider the question, but I cannot promise to adopt the suggestion of the hon. Member for Canterbury (Mr. R. McNeill), as it would leave the door wide open for the payment of fines illegally, and the collection of the money from His Majesty's Government.

Will the right hon. Gentleman answer the last part of my question: what steps the Government are taking to suppress these illegalities?

Steps have been taken which it is believed will result in removing all grounds of complaint.

In this, as in other matters dealing with the administration of Ireland during the truce and the sittings of the conference—which I believe to be one of the most important conferences ever held in the history of this country—discretion must be given to the Government in dealing with acute questions, and I would ask the hon. and learned Member to accept the answer which I have given as the best answer which I can give.

May I ask the right hon. Gentleman to define the word "truce," which he has used so frequently? Will he put before the House the exact words of the truce, as until we know these words we do not know what the Government is doing.

Internment Camps

asked the Chief Secretary whether his attention has been called to the many complaints made of the conditions and treatment of Irishmen in the internment camps; whether he has looked into these complaints; and whether any system of inspection of these camps and of opportunities for the laying of complaints has been arranged?

The answer to the first part of the question is in the affirmative; as regards the remainder this matter has been taken up with the Irish representatives now in London, and a system of joint visits to prisons and camps has been arranged.

When will these joint committees com- mence their inspections, and can the right hon. Gentleman give an assurance that if these complaints are found to be well founded the camp commandants responsible for this informality will be dealt with suitably?

Can the right hon. Gentleman give an assurance that if these complaints as to the ill-treatment of untried and helpless men are found to be well founded the commandants will be dealt with suitably?

I do not accept for a moment that persons have been ill-treated by officers of the Crown in Ireland, and therefore I will not prejudge.

Mountjoy Prison

asked the Chief Secretary whether the Mountjoy Prison has been taken over by the so-called Irish Republican Army or whether any of its members are allowed inside as such?

There is no foundation whatever for the absurd allegation that any part of Mountjoy Prison has been handed over to the Irish Republican Army or that any members of the Irish Republican Army are allowed in as such. There are several classes of prisoners in Mountjoy Prison. Some of these are unconvicted, some are undergoing short terms of imprisonment and others sentences of penal servitude. Permission to visit is granted in accordance with the Prison Rules applicable to the various classes.

Has any other Government property in Ireland been taken over for this purpose?

Breaches of Truce

asked the Chief Secretary whether he is aware that during the so-called truce in Ireland the Irish Republican Army has been constantly and openly drilling with Lewis guns, rifles and revolvers, has commandeered lands and houses for military purposes, and has forcibly exacted from peaceable Irish sub- jects contributions to maintain the Irish Republican Army; and what steps the Government propose to take in regard to these matters?

asked the Prime Minister whether the terms of the truce forbid kidnapping of His Majesty's subjects, setting up courts in opposition to His Majesty s courts, requisitioning of houses and material, forced billeting of men, and forced levies of money on His Majesty's subjects, provocative display of forces armed or unarmed, importation of arms, and forcible conscription on the part of the Irish Republican Army and its supporters; whether the Government have reason to believe that some or all of these terms have been broken; and what steps have been taken by His Majesty's Government to prevent such evasion; at what date were such steps taken; and what has been the result?

Every one of the various acts specified in the first part of these questions would be regarded by His Majesty's Governments as a breach or evasion of the terms of the truce, and instances have in fact occurred of the truce being broken in a number of these ways. Representations have 'been made in the case of every breach alleged, and in a great number of cases this action has had satisfactory results. In certain other cases, however, differences of opinion have arisen as to fact, or as to the proper interpretation to be placed upon a term of the truce agreement, and differences of the latter kind have been under consideration by a Joint Committee of the Conference on Ireland in London.

As the right hon. Gentleman has repeatedly referred to the so-called "truce," is he prepared to lay its terms on the Table of this House?

They have already been published, but I shall at once lay them as the hon. and learned Member wishes.

Are we not entitled to have the truce laid on the Table? Is it not the fact that when a Minister quotes from a document we are entitled to have it laid on the Table, and I would like to know when this will be done?

Belfast (Police Instructions)

asked the Chief-Secretary whether his attention has been called to a statement recently made in Belfast by the hon. Member for South Tyrone to the effect that Mr. Cope, Assistant Under-Secretary, had given orders to the police in Belfast that, if they had to arrest a Sinn Fein criminal, they must arrest a Unionist alongside him; whether such an order was given by Mr. Cope; if so, on whose instructions; whether the purpose in giving such an order was to convey to the public the false impression that Unionists in Belfast were equally responsible with Sinn Fein criminals for initiating breaches of the peace; and, if such was not the purpose, what explanation can he give of Mr. Cope's order?

I have seen, with profound regret, the statement referred to. It is obviously based on inaccurate information and does great injustice to a loyal and efficient public servant, for whose action in this matter I take full responsibility. Very briefly, the facts are as follows: On 29th, 30th, and 31st August last, a certain portion of Belfast was in a state of very grave disorder. On those three days there were 17 persons killed and 91 wounded. Mr. Cope arrived in Belfast on 31st August. Having satisfied himself after close inquiry on all sides that the disturbances were the outcome of old animosities, affecting alike certain irresponsible elements in each of the two opposing religious factions, Mr. Cope gave instructions on 1st September to the police, enjoining on them the exercise of the strictest impartiality in dealing with law breakers on both sides. It is a grotesque perversion of his instructions to suggest that he directed the arrest of any innocent person. The object of the instructions was merely to ensure that there should be no discrimination between offenders of equal guilt merely on the ground of their religious denominations. It must be obvious that the forces of the Crown, when called upon to discharge the difficult task of restoring order, could not properly observe any other principle.

The position in Belfast was so difficult that military aid had to be invoked. The military authorities are now responsible for the maintenance of order, and for this purpose were given, and still retain, control over all Crown forces in the city.

Is the right hon. Gentleman aware that a question substantially in the terms of that now on the Paper was put in the Parliament of Northern Ireland to a responsible Minister, who was unable to give the information now given to this House? Will the right hon. Gentleman say why he could not supply that information to the responsible Minister in Belfast?

I can accept no responsibility for the difficulties of Ministers in other Legislatures, but I am responsible for the police in Ireland. This was a police matter, and up to the present no other Legislature has anything to do with the Irish police except this Legislature.

Can the right hon. Gentleman lay upon the Table of the House the actual words used in that instruction to the police?

On this and all other questions dealing with military and police orders I must decline to make details public.

Will the right hon. Gentleman say that no such instructions were given to the police?

Internees

asked the Prime Minister, if, considering the importance of creating an atmosphere of goodwill in Ireland, the persons interned and who have not been tried by the ordinary legal procedure will be released?

This is a question to be discussed in connection with the terms of a final peace.

Ex-Service Men

Royal Air Force

asked the Secretary of State for Air if he will set up a substitution committee to deal with the Air Service technical staff as at present existing in His Majesty's Office of Works Department?

Steps have already been taken to set up such committees, and the work of investigation is approaching completion.

Is the hon. and gallant Gentleman aware that ex-service men are being discharged from the out-stations while non-service men are being employed on exactly the same work, and will he take steps to remedy this injustice?

My hon. Friend will appreciate that the circumstances are entirely different from those in other Ministries. Inasmuch as I am to receive a deputation on the subject early next week, I can be excused from making any further statement now.

Is the hon. and gallant Gentleman aware that a considerable time ago the Treasury undertook to set up these substitution committees in all Government Departments? Is he also aware that it is the failure to do so in every case which is responsible for a great deal of the trouble amongst ex-service men in the Civil Service?

Government Departments

asked the Prime Minister whether, although the number of non-service staff employed in a temporary capacity in Government Departments is 53,544, over 6,000 ex-service men, many of them disabled, have been discharged since 1st June, whilst conscientious objectors are being re-instated and overtime is being worked in various Departments; and what steps are being taken by the Government to see that justice is done to ex-service men?

asked the Prime Minister if the reduction of staff in Government Departments is being conducted without allowing for preference or special consideration for ex-service men; whether, since the 1st of June, more than 6,000 ex-service men, many of whom are disabled, have been dismissed from Government employment, while no less than 53,000 non-service men are still employed in a temporary capacity, and numbers of conscientious objectors have been reinstated or are otherwise in Government employment; whether it is still recognised that ex-service men have the first claim on the consideration of the Government and the nation; and, if so, whether he will use his authority over all Government Departments to insist that ex-service men shall be the last to be dismissed in the interest of economy?

asked the Prime Minister whether public statements are still being made to the effect that whilst non-service men and? conscientious objectors are being retained in the public service ex-service men are being retrenched in large numbers; and whether he can take some steps to allay the general suspicion and uneasiness which exists in regard to the matter?

asked the financial Secretary to the Treasury how many alleged conscientious objectors have been reinstated in Government Departments; whether their respective contracts of service are terminable by notice; and, if so, whether he will undertake to dismiss all such persons in priority to any ex-service men?

asked the Financial Secretary to the Treasury whether a great number of temporary ex-service civil servants have lately been discharged or have received notice of dismissal from Government Departments; and whether he is aware that great dissatisfaction exists among these men owing to the fact that many conscientious objectors have been reinstated to the detriment of the said ex-service men?

asked the Financial Secretary to the Treasury how many conscientious objectors have now been reinstated in the Civil Service; and whether this favour shown them has caused the dismissal of any ex-service men?

asked the Financial Secretary to the Treasury how many ex-service men have been discharged from the Civil Service since 1st June last; how many non-service staff are still employed in a temporary capacity; and what principle is being adopted in these discharges for the recognition of the prior claims of ex-service men?

asked the Financial Secretary to the Treasury if since June last 6,000 ex-service men have been discharged from the Government Departments, many of them disabled, and that fresh notices are now being issued; if he can state whether there is any truth in the statement in the circular that has been issued by the Association of ex-Service Civil Servants that a good number of conscientious objectors have been reinstated in Government Departments, whilst ex-service temporary staff are being discharged; and if he intends taking any action in the matter?

The number of ex-service men temporarily employed in Government Departments has fallen from 57,378 on the 1st June last to 51,413, or about 6,000. A considerable number of ex-service men have, however, been transferred in this period from temporary to permanent appointments, and the fall in the total number of ex-service men employed, whether in temporary or permanent positions, is consequently only 2,400.

The decrease in the number of ex-service men temporarily employed is very largely due to the discharge from the Employment Exchange service of men who had been recently taken on for work of a casual nature. Having regard to the general reduction of Government staffs, it was not possible to provide fresh employment for these men or for more than a proportion of those discharged from other Departments.

The number of non-service temporary personnel employed on the 1st October was 46,800, of whom 7,500 were men, as compared with 150,000 on 1st July, 1919.

The necessities of administration preclude the complete substitution by ex-service men of all non-service temporary staff, of however long service, particularly when the non-service personnel is engaged in a Department other than that from which the ex-service men are being discharged. In addition, the women staff who form the great bulk of the remaining non-service staff are largely engaged upon work which is recognised as peculiarly appropriate to women.

No overtime which could be avoided by the employment of additional staff is being worked, nor is the amount substantial.

Conscientious objectors are not employed in temporary capacities, but approximately 230 men, previously hold- ing permanent posts in the Civil Service, who established a bonâ fide conscientious objection to military service, have, in view of the recognition accorded to such objection by Statute, not been discharged from the service. Their retention, after a period of suspension, has not necessitated the discharge of ex-service men.

The policy of His Majesty's Government of according every possible preference to ex-service men in regard to employment has been, and will continue to be, pursued, and the greatest care will be taken that where the imperative needs of the public service are not involved, no non-service man should be preferred to an ex-service man.

Is the hon. Gentleman aware that the officials in Woolwich Arsenal are not carrying out the Government's own orders, but are retaining War hands and discharging ex-service men, and that all the ex-service men are asking from the Government is that they should insist upon their own orders being carried out?

Is the hon. Gentleman also aware that the point just alluded to is the root of the trouble everywhere— namely, that the hon. Gentleman's own instructions, clearly given, have not been loyally carried out by certain permanent officials? Has he no power to enforce his own orders, and is it not possible to dismiss or otherwise punish some of these disloyal people?

The state of affairs generally is as I have described it. Any particular circumstances in connection with any special Department which are brought to my attention have been, and will continue to be, rigorously examined, and the principles to which I have alluded enforced. If these particular circumstances, to which the hon. and gallant Member refers, or further circumstances, are brought to my attention, I shall go into them with the same particularity.

If these conscientious objectors are discharged from their jobs, could not their places be filled by ex-service men?

Of course if the 230 men to whom I have referred were to be discharged, their places could be filled by others. [HON. MEMBERS: "Why not?"] They are retained for the reasons, and on the principles, to which I have referred in my answer. It is not open to the Executive to go outside the principles laid down by an Act of this House.

May I ask the Prime Minister is he aware that the retention of these 230 men is regarded as a gross breach of faith with the ex-service men?

Royal Air Force

Technical Officers (Gratuities)

asked the Secretary of State for Air whether he is aware that Messrs. Holt and Company are demanding the return of a part of the gratuities paid to technical officers of the flying services during the period they were attached to the Air Board; whether this is being done on the Air Ministry's instructions; whether the consolidated pay of these officers during the period in question exceeded the pay and allowances which they would otherwise have received; and if the Government, some time ago, issued a statement renouncing all claims for the return of gratuities?

No instructions have been issued by the Air Ministry for the recovery of the gratuities referred to, but it is understood that Messrs. Holt and Company are requesting the return of certain sums which have been issued by them in excess of the amounts allowed by Regulation. The civilian rates of pay issued to these officers on joining the Air Board staff were in excess, and in a large number of cases considerably in excess, of the pay and allowances they had received from Naval funds. The answer to the last part of the question is in the negative.

Is the hon. and gallant Gentleman aware that these applications have been sent out by Messrs. Holt and Company franked by the Air Ministry? How can he say that it is not on the Ministry's instructions?

That is new information brought to my notice, and I shall want particulars.

Alula Wing

asked the Secretary of State for Air whether the Martinsyde semi-quaver, which was tested with an Alula wing on the l2th instant at Northolt, demonstrated itself to be of any interest as a fighting machine; if so, in what manner; if this machine had previously been tested for performance at Martlesham and for strength at Farn-borough; and whether, during the test referred to at Northolt, the machine was tested with a roll, an Immelman turn, and a spinning nose-dive?

I attended the demonstration myself; it was a private one promoted by those connected with the development of the "Alula" wing. I understand that the object of the demonstration was to show that the "Alula" system of design was not incompatible with high speed. Hitherto it has been the weight carrying qualities of the wing on which most emphasis has been placed. The machine, as shown, was not a practical fighting machine, and I do not think that those showing it had any intention of claiming it to be one. This machine has not been tested at either Martlesham or Farnborough, but certain investigations into its strength are being undertaken, and I have no intention of permitting an official test by an Air Ministry pilot until these investigations have shown the strength of the machine to be adequate.

So far as I am aware, the machine has not been rolled or spun, nor have Immelman turns been attempted. The closest attention is being given by the Research Department of the Air Ministry to this invention, and every opportunity will be afforded to the inventor to demonstrate the value of his device.

Questions

Civil Aircraft, Germany

asked the Under-Secretary of State for Foreign Affairs whether he is aware of the enormous progress made in Germany in the manufacture of civil aircraft; whether, in view of the ease with which civil aircraft can be converted into military aircraft, he will consider the advisability of properly framing the definition of the differences between the civil and military type, and exercise great vigilance in seeing that Germany builds only in accordance with the Allies' rules, as she has pledged herself to do?

I have been asked to reply to this question. The German Government have agreed to surrender to the Allies all the civil aircraft (estimated at some 250 in number) constructed in Germany since the coming into force of the Treaty of Versailles, such manufacture having been held by the Allies to be contrary to the stipulations of the Treaty. In the meantime the construction of all aircraft in Germany is suspended until the Inter-Allied Aeronautical Commission of Control is satisfied that it has completed the aerial disarmament of the country. Germany has also agreed to accept definitions drawn up by the Allies differentiating between aircraft for civil and commercial use and those that are potentially war machines, the manufacture of the latter being contrary to the Peace Treaty. Measures are being drawn up by the Allies for the effective surveillance of aircraft manufacture in Germany after the withdrawal of the Commission of Control.

Is the hon. and gallant Gentleman satisfied that the suspension of the manufacture of aircraft in Germany is being carried out, and will he see that the terms of the Treaty with regard to aircraft are rigidly enforced?

Yes, I am satisfied that the information I have given to the House is accurate.

Russia

British Trade Mission

asked the Under-Secretary of State for Foreign Affairs whether the British trade mission is about to leave Russia; and, if so, will he state the reason?

The answer is in the negative.

Is it not a fact that this trade delegation was selected by the Foreign Office against the advice of the Chancellor of the Exchequer and of the President of the Board of Trade, and that the head of it was one of Koltchak's chiefs of staff?

Trade Agreement

asked the Prime Minister whether, having regard to the breaches by the Bolshevik Government of the Russian Trade Agreement, and to the fact that it has no value from the point of view of trade, it is intended to denounce the Agreement?

As I pointed out yesterday, the Russian Trade Agreement has had substantial results, though not equal to the anticipations formed in some quarters. The Government is examining the reply of the Bolshevik Government to their despatch on the question of the breaches of the Trade Agreement.

Has the Prime Minister's attention been drawn to a letter addressed by Mr. Leslie Urquhart to M. Krassin on this subject, and whether he is aware Mr. Urquhart went to Russia most anxious to reopen trade in that country and found it impossible to do so?

Questions

British Subjects, South Persia

asked the Under-Secretary of State for Foreign Affairs whether, owing to the disbandment of the South Persia Rifles, all British families have had to be evacuated from Shiraz; if so, where they have been sent to; and what steps have been taken by the Persian Government for their protection?

The question of the evacuation of British women and children from Shiraz to the coast has been left to the discretion of His Majesty's representative at Tehran. I am not able to say at such short notice whether any British families have actually left Shiraz, or what special precautions were taken. Inquiries will be made.

Has the hon. Gentleman any knowledge as to the safety of British women and children in South Persia?

We assume that, inasmuch as we have received no representations from His Majesty's representative, their safety is assured.

Greece and Turkey

asked the Under-Secretary of State for Foreign Affairs whether his attention has been called to the reports of the devastation and laying waste of the country by the Greek army in its retreat in Asia Minor; whether His Majesty's Government have made any representations to the Greek Government on the subject; and whether any British military attaché or other official is with the Greek Army?

A communication on this subject has just been received through Constantinople from the Minister for Foreign Affairs of the Angora Government. His Majesty's Government have already made and continue to make representations impartially to both sides as soon as the reports which reach them are confirmed. Two or three British officers are attached to various Greek headquarters as observers.

Have the British officers not sent in reports on this matter? Refugees are fleeing in thousands to Constantinople from those areas.

I am not aware that we have received any representations from British officers.

Have any representations been made to the Greek Government on this particular subject?

Not, I think, on this particular subject, because reports, so far, have not been received.

Assault on British Subject, Florida

asked the Under Secretary of State for Foreign Affairs whether any action has been taken as yet to secure justice for the Reverend P. S. Irwin against his assailants at Miami, Florida; whether Mr. Irwin has now been forced to leave Miami by threats; whether he is satisfied that British coloured people at Miami are now properly protected in life and property; and when the case of Mr. Hubbard, British Vice-Consul at Miami, was inquired into as to his fitness to protect the numerous coloured British subjects under his ægis?

His Majesty's Ambassador at Washington has been instructed to renew his request to the State Department for information as to the result of any proceedings taken against Mr. Irwin's assailants: the answer to the second and third parts of the question is in the affirmative. Complaints against the Vice-Consul at Miami were investigated by His Majesty's Ambassador at the end of last year. Sir A. Geddes then expressed the opinion that Mr. Hubbard was a fit person to represent His Majesty's Government at Miami and I have no reason to suppose that he has changed his opinion.

Is it not since this investigation that the Reverend P. S. Irwin has been tarred and feathered and chased out of Miami, and other British coloured subjects have been expelled from Miami with threats; and will the hon. Gentleman consider the advisability of asking our Ambassador at Washington to inquire into the fitness of this particular Vice-Consul?

I do not think I could do that. Sir Auckland Geddes is now inquiring into the whole of the circumstances of the case.

Trade and Commerce

Great Britain and Russia

asked the Parliamentary Secretary to the Overseas Trade Department if he will furnish returns of the exports from the United Kingdom to Russia, and of imports from Russia into this country, since the signature of the trading agreement between Great Britain and the representative of the Soviet Government?

As the answer contains many figures, I will circulate it in the OFFICIAL REPORT.

In that answer, will the right hon. Gentleman differentiate between the imports and exports from Soviet Russia and from old Russia? The Board of Trade returns do not differentiate in that way at present?

I doubt whether that is possible, but I will make inquiries.

The following is the answer:

The trade agreement was signed on the 16th March, and complete figures for the precise period specified in the question are not immediately available. The following statement covers the trade of the six months April to September.

April-June.

July-September.

£

£

Imports from Russia into the United Kingdom

46,940

122,587

Exports of United Kingdom produce and manufactures to Russia

143,285

616,450

Exports of foreign and Colonial merchandise to Russia

83,723

723,221

Palm Kernels (West Africa)

asked the Secretary of State for the Colonies whether he is aware that the continued depression in the West African Colonies and Protectorates is in considerable measure due to the differential export duty on palm kernels exported to foreign countries; whether any decision has been arrived at respecting the early removal of this handicap to their staple trade; and, if not, whether he will request the West African Trade and Taxation Committee at present sitting in this country to take this matter into immediate consideration and to issue an early report?

The answer to the first and second parts of the question is in the negative. The Committee on West African Trade and Taxation is taking evidence on the subject and is expected to report next month.

Am I to understand from that reply that the Secretary of State for the Colonies is not aware that the question is due to this differential export duty which is placed upon palm kernels?

What right has this country to limit the market for palm kernels to West Africa?

Questions

Guardianship of Infants Bill

asked the Prime Minister whether he can give an assurance that time will be given this Session to pass the Guardianship of Infants Bill through its final stages?

In view of the definite assurance given by my right hon. Friend the Leader of the House on the 19th August last that the only legislation to be taken would be that which necessitated the calling together of the House, I regret it will not be possible to deal with this Bill during the present Sittings, which are only undertaken for the purpose of dealing with the problem of unemployment.

Can the Prime Minister say he will bring it in next Session? May I ask for that assurance?

I think we really must not have supplementaries to every question. It is better to give other hon. Members an opportunity.

Canadian Cattle Embargo

asked the Prime Minister whether an early opportunity will be afforded to the House to discuss the Report of the Royal Commission on the Importation of Store Cattle, in view of the Commission's statement that the removal of the embargo would tend to cheapen the meat supply in this country without in any way endangering home cattle?

asked the Minister of Agriculture what steps the Government have taken, or are taking, to give effect to the findings of the Committee that investigated the removal of the embargo upon the importation into this country of Canadian cattle?

asked the Minister of Agriculture if it is the intention of the Government to introduce immediately a Bill to remove the embargo on Canadian store cattle?

The evidence taken before the Royal Commission has not yet been published, although it is expected to be ready shortly, and until the Government has had an opportunity of considering the evidence it would be premature to discuss the Report of the Commission. Moreover, legislation would be necessary to give effect to the recommendations in the Report, and such legislation could not be introduced this Session.

Workmen's Compensation (War Addition) Act, 1917

asked the Prime Minister on what date the Workmen's Compensation (War Addition) Act, 1917, will, under the present position, expire; and whether it is the intention of the Government to extend its duration?

I have been asked to reply to this question. Provision has already been made in the Expiring Laws Continuance Act of this Session for the continuance of the War Addition Acts until 31st December, 1922. The latter part of the question does not therefore arise at present.

Unemployment

Territorial Army Headquarters

asked the Prime Minister whether, owing to the necessity for economy, building pro-grammes for the improvement of Territorial Army headquarters have been generally postponed; and whether, in certain districts where unemployment is severe, the more urgent of these useful works could now be put in hand as special works to relieve unemployment in the locality?

My right hon. Friend has asked me to reply. During the War action on such programmes was suspended, but proposals are now open for favourable consideration on their merits in cases where it can be shown that no existing accommodation can be utilised?

Having regard to the fact that emergency works in order to provide employment are being proposed, cannot these schemes be pressed on?

Capital Ships and Channel Tunnel

asked the Prime Minister whether, with a view to increasing facilities for employment, the orders for the new capital ships have yet been given out; if not, when they will be; and whether the Government can yet announce any decision with reference to the Channel Tunnel?

The tenders received have now been considered, and the orders for all four vessels are being placed immediately. As regards the last part of the question, no decision has yet been arrived at.

Could not the decision with regard to the Channel Tunnel be accelerated, in view of the fact that a large amount of employment would result on the South Eastern Railway, and possibly in the construction of the tunnel itself?

There are very important strategic consideration's which have to be borne in mind before a decision is taken upon that subject, and even if a decision were taken it would take very many months before any work could be put in hand.

Is it not a fact that the strategic considerations were first considered by the War Cabinet and then by the Cabinet itself a very long time ago—very nearly a year ago—and have not the Cabinet arrived at any decision?

Machine Tool Industry

asked the Prime Minister whether he has received any representations from employers engaged in the machine tool industry with regard to the serious state of unemployment in that trade; and, if so, can he state if any action has been taken in the matter?

I have been asked to reply. I can find no trace of representations regarding unemployment having been made by the employers in the machine tool industry. Should any representations be made they will receive careful consideration.

Questions

Cenotaph, Whitehall

asked the Prime Minister whether, as a part of the ceremony in connection with the celebration of the armistice, new colours can be placed upon the Cenotaph annually?

The question of a formal renewal of the Colours was discussed by the Committee appointed to consider the question of the observance of Armistice Day, and it was decided, after careful consideration, that it was undesirable to renew the colours at any stated time, but that renewal should take place when the need arose.

Trade Disputes (Secret Ballots)

asked the Prime Minister whether the Government is aware that there is now a strong feeling in the country, even among the industrial classes, in favour of the introduction of a secret ballot before strikes and in the regulation of so-called peaceful picketing; and whether, in view of this feeling, the Cabinet will undertake next Session to introduce legislation on the subject?

I can add nothing to the answer which I gave on the 18th April last to questions by my hon. Friend the Member for Putney (Mr. Samuel Samuel) and my hon. and gallant Friend the Member for Dulwich (Sir F. Hall).

Albania and Serbia

asked the Prime Minister whether he can give any information as to the alleged invasion of Albania by Serbia; whether the conference of ambassadors has yet arrived at an agreement on the boundaries of Albania; and, if not, what is preventing such an agreement?

According to our information, there have been encounters between Serbian and Albanian forces on the confines of the area within the 1913 frontiers of Albania, of which Serbian troops have been in occupation under the terms of the Armistice. Agreement is about to be reached, I hope, at the Ambassadors' Conference as to the frontiers of Albania, and when this has been accomplished it will be possible to ask the Serbian and the Albanian Governments to withdraw their forces to either side of the line agreed upon. Opportunity has already been taken of the presence of the Serbian Minister for Foreign Affairs in Paris to impress upon him, on behalf of the principal Allied Governments, the importance of keeping the peace on the frontier. Similar advice has been tendered to the Albanian representative in Paris also.

Can the hon Gentleman tell the House what is preventing this agreement by the conference of ambassadors, and whether he is aware that we were told at Geneva weeks and weeks ago that the agreement was about to be arrived at?

I think there is one comparatively unimportant outstanding point, which I think is in process of solution at the present moment.

Food and Clothing (Prices)

asked the Prime Minister whether he has set up a committee to inquire into the differences between the wholesale and retail prices of articles of food and clothing; and, if so, when that committee will be able to make any report?

The answer to the first part of the question is in the negative, and the second part, therefore, does not arise.

Does not the right hon. Gentleman think, in view of the large reduction in the prices of wholesale articles, that something should be done to bring retail prices more into conformity with the reduced prices in the wholesale market?

We have received a good many representations on that subject, but it would be quite impossible to have any investigation unless it were made by means of an Act of Parliament which would equip the Committee or Commisson with the necessary powers to force disclosure of all the facts. That is a very serious step to take, and we do not feel, at the present moment, that the facts are sufficiently clear to justify action of that kind.

Would the right hon. Gentleman be prepared to give powers to the municipalities to open shops in competition with the people who are now keeping up the prices?

Washington Conference

asked the Prime Minister whether he can assure the House that Great Britain intends to co-operate with the United States at Washington to the fullest possible extent in stabilising conditions in the Far East; whether British policy at the Conference in respect of China will be based, not on any national view of sectional interest, but on a broad conception of the interests of the world in securing peace in the Far East; and whether he proposes to make any statement in the House on the subject before the departure of the delegates?

The British Empire Delegation will certainly do its utmost, in co-operation with all the Powers concerned, to secure fair play for all nations and peace in the Far East. The answer to the third part of the question is in the negative.

Will there be no opportunity of discussing the utilisation of the Lord President of the Council at Washington after what happened with regard to Silesia?

Secondary Schools (Free Places)

asked the President of the Board of Education whether he is aware that the holders of bursaries for intending teachers are being included by some local authorities in the 25 per cent. of free places in their secondary schools; and whether, since this practice does not in fact mean that a proportion of the free places are held by pupils who are required to give undertakings regarding their future which cannot be required from free placers and fee-paying pupils, he will take steps to prevent local education authorities from regarding any provision they may make for intending teachers as a means of reducing the number of free places in secondary schools held without conditions as to future employment?

The Board's Regulations do not prevent a pupil being counted as a free place pupil on the ground that he or she has undertaken to become a teacher. I have not received any complaints on this subject, though I recognise that local difficulties may have arisen owing to the shortage of accommodation in secondary schools.

Aliens Restriction (Amendment) Act, 1919

aked the Secretary of State for the Home Department whether it is proposed to take such steps by way of amendment to the Aliens Restriction (Amendment) Act, 1919, as will obviate future occurrences of cases similar to that of Dr. Oscar Levy?

The provisions of the Act were passed by Parliament after full discussion and consideration, and it is not proposed to bring in any amending legislation. Nothing short of a complete repeal of the provision would attain the object suggested in the question.

Was it ever proposed during the passage of the Bill that it should apply to cases of this kind, of a distinguished gentleman being expelled after a long period of residence in this country? Was that brought to the notice of the House when it was passed?

Metropolitan Police (Pensioner a. W. Parsons)

asked the Home Secretary if he is aware that police-pensioner A. W. Parsons, late acting-sergeant 643, S Division, Metropolitan Police, retired in May, 1915, on a pension of 26s. a week, after 25 years' service; that for two or more years immediately preceding retirement he was continually under treatment by the divisional surgeon, and actually retired on account of physical infirmity; that since retirement Parson's physical condition has become steadily worse, and that he is now totally unable to work; and if he will consider the case under Section 2 (2) of the Pensions (Increase) Act, 1920?

This case has been fully considered, and I regret the pensioner is not eligible for any increase of pension before he attains the age of 60.

Is the hon. Gentleman aware that this pensioner does come under Section 2, Sub-section (2), and has retired on account of physical or mental infirmity, and that it has nothing to do with age?

My information is not in accordance with my hon. and gallant Friend's statement. I understand that the man had leave to retire without a medical certificate.

Is it necessary for a man who retires out of physical inability, as stated in the Act, to have a medical certificate, which the Act does not mention?

This case was gone into very thoroughly, and it is perfectly clear that it does not come within the provisions of the new Act.

Licensing Act (Early Opening Hours)

asked the Home Secretary if he will state the powers possessed by the Commissioner of Police under the new Licensing Act to restrict the number of public houses opening for early market trade and to modify the hours during which they may be open; whether, in a matter of this nature, the Commissioner can override the local bench of licensing magistrates; and, if this power is exerciseable by the Commissioner, whether he will state the facts of the cases in which he has taken such action?

I think the hon. and gallant Member must be referring to the powers of the Commissioner of Police under Section 55 of the Licensing (Consolidation) Act, 1910; but these powers are in the direction of relaxing and not of restricting the general permitted hours for the sale of liquor fixed by the new Act or the Licensing Justices, as the case may be. Under these powers the Commissioner may, in proper cases, authorise the sale of liquor in connection with early market trade at hours outside the normal hours. Special exemptions to this effect have been in existence from time to time both before and during the War, and the Commissioner informs me that, in view of the new conditions now prevailing, he has reviewed them all and has renewed some and cancelled others, with due regard to the needs of the workers and all relevant considerations.

Income Tax (Officers' Widows)

asked the Chancellor of the Exchequer whether he is aware that, by circular of the 28th September, officers' widows have been informed that allowances payable to them on behalf of their children have to be treated henceforth as part of their own income for assessment for Income Tax; on what grounds the lumping together for purposes of taxation of a widow's pension and a child's allowance is justified; and whether he will take action to suspend the operation of this circular (reference Paymaster-General's Office, M. of P. H.) pending an opinion of the Law Officers of the Crown on its validity?

The general rule of the Income Tax Acts that a pension paid to an officer's widow is assessable to tax as earned income applies equally whether or not the pension is increased by reason of the fact that the widow has children. The legal position does not seem to be in doubt, but my hon. and gallant Friend will appreciate that the Income Tax allowances in respect of children apply, of course, in these cases as in the case of other taxpayers.

National Finance

asked the Chancellor of the Exchequer whether he will make, before the end of the Session, a statement with regard to the nation's finances, in view of the big decrease to date of the anticipated revenue?

On the Consolidated Fund Bill I shall take an opportunity of dealing with any aspects of the Financial problem which arise for discussion.

Government Staffs and Offices

Civil Service Bonus

asked the Chancellor of the Exchequer whether, in view of the decrease in the bonus on pensions which took effect from 1st September owing to the decrease in the cost of living, there was in August a great exodus of senior civil servants; and whether he will cause the arrangements for bonuses on civil servants' pensions to be reconsidered to save the cost to the State that a continuance of the present system involves, in view of the steady decrease in the cost-of-living figures?

The number of civil servants above the age of sixty who have retired during the months prior to the 1st September last has been, in certain Departments, above the average. The result has been to facilitate the efforts of heads of Departments to reorganise their staffs on a more economical basis. The present arrangement under which 75 per cent, of bonus is included in the salary and emolu- ments upon which the superannuation award is calculated has been the subject of reconsideration, and I am of opinion that the system at present in force is preferable to awarding pensions based on total emoluments at the date of retirement, with provision for periodical adjustments corresponding to fluctuations in the cost of living, inasmuch as the latter would involve greatly increased cost in administration.

Customs and Excise (Appointments)

asked the Chancellor of the Exchequer when the competitive examinations for appointments as officers of Customs and Excise will be resumed; and, in the meanwhile, what steps should be taken by men desirous of appointments as preventive men in that service?

The classes of officer of Customs and Excise and of Customs Preventive men are still being recruited from ex-service men under the reconstruction scheme. The future arrangements have not yet been settled. Ex-service candidates should apply to the Civil Service Commissioners for information.

Post Office

Increased Charges

asked the Postmaster-General if he is aware that great loss of revenue is of frequent occurrence owing to the high postage rates on printed matter; if his attention has been called to the fact that a firm in the wine trade recently circularised some 80,000 customers and others, first sending the circulars to Antwerp in bulk to be posted back from there; that the saving thus effected amounted to £160; and will he consider the advisability of reducing postal charges?

asked the Postmaster-General, whether, considering that French firms are offering to print and post circulars, catalogues, and company prospectuses, etc., in France at a less cost than can be done here, he can state what steps he proposes to take to keep the work in this country; and if it will be possible for him to reduce the postage on post- cards in this country from 1½d. to 1d., even if he has to reduce the weight of letters from 3 oz. to 2 oz.?

The postal rate for printed papers in France and Belgium is 10c., as compared with the British rate of 1d. A few firms of advertisers have thought proper to adopt the practice of posting circulars in these countries in order to benefit by the reduction in postage charges which the depreciation of the currencies of those countries enables them to secure. But an examination of the circulars received in this way indicates that at present the loss to the British postal revenue is negligible. It would not be possible to fix British postal rates to meet the depreciated currencies of other European countries. As regards the present rates of postage in this country, I can only repeat that I propose to consider the question of a reduction of rates as soon as that can be done without asking for a subsidy from the Exchequer.

Did not the right hon. Gentleman say that this was a breach of the law, and that he would take action to prevent it?

This is not a breach of the law, and I could not take action. I have taken action wherever I thought that there was a breach of the law.

Will the right hon. Gentleman consider the latter part of my question, and reduce the rate for postcards to a penny?

asked the Postmaster-General whether, in view of the serious handicap to trade imposed by the present postal rates for letters and postcards, he will consider the immediate restitution of the penny letter-rate on a weight basis of one ounce for one penny, and one penny for every additional ounce; and if he will consider the immediate restitution of the half-penny rate for postcards?

The proposals of the hon. Member would convert the Post Office into a subsidised service to the extent of some £18,000,000 a year, and I cannot adopt them.

Intelligence Office

asked the Post master-General what are the functions of the General Post Office intelligence office; how long has this office been in existence how many persons are employed in it; and what is the annual cost of the office in salaries and expenses?

An officer was appointed in May last to answer inquiries and to issue information to the public and the Press as to the services provided by the Post Office. The work had previously been a part of the duty of various officers in each department of the Post Office, an arrangement which was inconvenient to the Press and to the public. The total cost amounts to £650 per annum, plus a small expenditure on typing.

Christmas Day

asked the Post master-General whether, in view of the fact that Christmas Day this year falls on a Sunday, he will depart from the present regulations and give a postal delivery on that day?

I have the Christmas postal arrangements under consideration, but am not yet in a position to make a public announcement on the subject. If a similar question be put down this day week, I hope to be in a position to give a definite answer.

Sunday Services

asked the Postmaster-General whether he is aware of the public dissatisfaction with regard to the discontinuance of Sunday deliveries in the provinces; whether he has yet reached any decision as to the resumption of such deliveries; and, if not, will he at any rate make arrangements that a full mail shall be delivered on Sunday, 25th December, Christmas Day?

I have seen a number of representations with regard to the discontinuance of Sunday postal services, from which I gather that it is the suspension of collections rather than deliveries which causes inconvenience. I regret the necessity of curtailing postal facilities, and the question of restoring Sunday collections will be considered when the state of Post Office finance permits. But I cannot at present forgo the saving of £1,000,000 in a full year which the aboli- tion of Sunday posts has secured. As to the last part of the question, I would refer my hon. Friend to the answer given to Question 58.

Have not representations been made from the largest exporting trade in the country stating that, in their opinion, there is a great deal more loss of revenue than the amount that is stated to be saved?

If such representations have been made, I cannot agree as to the facts.

May I ask whether these calculations take into account loss of revenue from the increased cost of using the postal service?

The estimate is based on an actual saving which has accrued to the Post Office. I am not yet in a position to show whether statements as to the decrease of revenue are well-founded. I shall be in a better position when our census, which is now being taken, is concluded.

Questions

Mr. R. McKenna (Visit to the United States)

( by Private Notice ) asked the Chancellor of the Exchequer whether it is correct, as stated in some organs of the Press, that Mr. Reginald McKenna, while in America, is to take up a discussion with the Government of the United States on the question of the debt due to that country by the British Government?

The suggestion referred to in the question has no foundation of any kind. The Government is entirely unaware of the nature of the business which has taken Mr. McKenna to the United States.

Business of the House

Can the Leader of the House state the business which is proposed to be taken next week, if possible including Friday?

Of course, the House will recognise that it is a little difficult to announce definitely the business for next week until we see the progress made with the various Measures, but I think it is the obvious wish to the House to proceed as expeditiously as possible, and this is what I would suggest:

Monday: 2nd Reading of Unemployed Workers' Dependants (Temporary Provisions) Bill, and the Committee stage of the Financial Resolution.

Tuesday: 2nd Reading of Trade Facilities Bill; and Report stage of Financial Resolution on the Unemployed Workers' Dependants (Temporary Provisions) Bill.

Wednesday: Unemployed Workers' Dependants (Temporary Provisions) Bill, Committee.

Thursday: Trade Facilities (Guarantees and Overseas Trade) Bill, Committee.

Friday: Local Authorities (Financial Provisions) Bill, 2nd Reading; and the Poor Law Emergency Provisions (Scotland) Bill, 2nd Reading.

If on any day the business which I have mentioned does not require the whole time of a normal sitting, we propose to go on with other business on the Paper.

With regard to the business announced for Wednesday, does not the right hon. Gentleman think that, inasmuch as there will be necessarily very many proposed Amendments on questions of important details, one day for the Committee stage of that Bill is too little, and can he not, therefore, reconsider giving some further time to the Committee stage of the Measure?

I thought that one day would probably be sufficient to meet the wishes of the House, but I do not want to ask the House to sit unduly late hours, and if, with reasonable goodwill on all sides, we cannot complete the business by 12 o'clock, we shall provide further time.

Why do not the Government take one of these Measures de die in diem till they have got rid of it, instead of taking them altogether, and so follow the old procedure? It would have the advantage of getting one Bill through this House and into the House of Lords, where they could go on with it while we are going on with another?

I think my hon. Friend is not quite right in respect to the procedure of the House. In the first place, our procedure must to a certain extent be governed by the progress we make with the Financial Resolutions on which the Bills depend. Above all, it is not always convenient to the House to take the Committee stage of a Bill the day after the Second Reading. I think I have had protest made about taking the Report stage immediately after the Committee stage. My hon. Friend, I think, will find that what we suggest is really for the convenience of the House and the expeditious conduct of the business.

Are we to understand that none of these Bills will be sent upstairs to Committee?

No; they will all be taken on the floor of the House.

Money Resolutions (Procedure)

I desire to raise a point of Order, Mr. Speaker, in connection with the notice which usually appears on the Order Paper when Money Resolutions are being taken. The old practice, as hon. Members will recollect, was this: that these Money Resolutions were kept by the Clerks until after the Debate had taken place. Responsible representations were made at a very early stage, indeed the commencement of the present Parliament, and the then Leader of the House acceded to the representations made, and promised that when these Motions or Financial Resolutions came before Committee they should appear for the information of Members on the Orders of the Day. Yesterday a very important Debate took place, and although the Resolution was quite an ordinary one—it was not a Ways and Means Resolution as on the Budget, where, of course, it would be a disclosure the day before almost of the proposals of the Government in regard to matters of taxation—it was quite an ordinary Resolution, and it did not appear on the Orders of the Day. I should like to ask you, Sir, whether in your view it has now become the established usage that such Resolutions should appear on the Order Paper? I think it has been generally accepted that the practice, since the commence- ment of this Parliament, has been a very useful one to Members as a whole; is there any exception to that rule or that usage, or practice, and, if so, can you inform the House as to the reason why it has been departed from?

This matter is not governed by any Standing Order or Rule of the House. It is a practice or custom established recently, and it has been too short a time in operation for the Chair to consider it an established practice of the House. It was a matter of arrangement between Ministers and the rest of the House. If I remember rightly, when the promise was made, the words "so far as practicable" were included in the promise. In any case, it is not a matter for the Chair; it is a matter between Ministers and the House.

Yes, perhaps a word or two may clear the matter up. May I say to the House that I have no desire to depart from the general practice, to which my predecessor agreed, of putting Resolutions of this character on the Order Paper. But there will be occasions when an exception must be made. My right hon. Friend, in putting his question, alluded to an exception, and I think the case to which he referred finds its parallel in yesterday's procedure. The cases are analogous. We were putting forward a Resolution as a basis for a whole policy, and to have put forward the Resolution by itself would, on the one hand, have shown the character of part of our policy before it could be explained, and, on the other hand, have given no indication of the policy as a whole. It seemed to us, therefore, that we should treat the occasion as I suggested on the opening day of the Session, and in the same way as we treat the discussion on Budget night—that a full statement of the whole policy of the Government in all its aspects should be made upon the Resolution. It would be proper under those circumstances to treat this Resolution like a Budget Resolution, and not apply to it the Rule which has been in force during the last year or two, and since my right hon. Friend gave that pledge, has been applied to ordinary Money Resolutions.

Supply

Resolved,

"That this House will, upon Monday next, resolve itself into a Committee to consider of the Supply to be granted to His Majesty."—[ Colonel Leslie Wilson. ]

Ordered,

"That the Estimate presented to this House on the 19th October be referred to the Committee of Supply."

Ways and Means

Resolved,

"That this House will, upon Monday next, resolve itself into a Committee to consider of the Ways and Means for raising the Supply to be granted to His Majesty."—[ Colonel Leslie Wilson. ]

Bills Presented

Local Authorities (Financial Provisions) Bill,

"to make further provision with respect to the Metropolitan Common Poor Fund and with respect to rating and to the finance of certain local and public authorities," presented by Sir ALFRED MOND; supported by Dr. Macnamara; to be read a Second time upon Monday next, and to be printed. [Bill 220.]

Agricultural Workers Bill,

"to make further provision with respect to the employment of agricultural workers, and to certain dwelling-houses, and to rent and recovery of possession and ejectment in certain cases; and for purposes connected with the matters aforesaid," presented by Mr. WALTER SMITH; supported by Mr. George Edwards, Mr. Clynes, Mr. Royce, and Mr. Arthur Henderson; to be read a Second time upon Tuesday, 1st November, and to be printed. [Bill 221.]

Adjournment Until Monday

Motion made, and Question proposed,

"That this House, at its rising this day, do adjourn until Monday next."—[ Mr. Chamberlain .]

May I ask the right hon. Gentleman whether, if this Motion is agreed to by the House, he will give us an assurance as to the possibility of Debate on certain matters after the passing of the four Bills outlined by the Government? He has given an assurance in regard to the question of an Irish Debate, but there are one or two other matters—I do not want to go into them now—and I think we ought to be given some chance to raise general matters. I do not ask for a number of days, perhaps one day would do, to raise, for instance, before we rise, the question of foreign policy, which is of great moment to the country. I am not thinking of the ordinary adjournment Motion, because this may be rather a longer Session than anticipated, and with Members in a hurry to get away the adjournment day is very unsatisfactory indeed from the point of view of raising one or two specific questions. There have been one or two points referred to, and I think hon. Members will appreciate—many at all events—one day apart from the Resolutions, dealing with these questions of great moment.

I do not want to be pressed to make further promises in regard to days for discussion. All the information that reaches me from the House leads me to think it is not the general desire to prolong our proceedings beyond what is necessary. At the same time—I speak subject to correction—the Consolidated Fund Bill will give the hon. and gallant Gentleman and any others all the opportunity they wish.

But on this Consolidated Fund Bill, shall we not be able to discuss only what is in the Financial Resolutions? Will questions of foreign policy be capable of being discussed?

Question put, and agreed to.

Resolved,

"That this House, at its rising this day, do adjourn until Monday next."

Orders of the Day

Trade Facilities [Guarantees and Overseas Trade]

Resolution reported:

"That it is expedient:—

Resolution read a Second time.

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

4.0 P.M.

The House of Commons yesterday had the advantage of listening to a speech from my right hon. Friend the Prime Minister. It was characteristic of his Parliamentary arts. I propose to make one or two comments on what it contained, and to the best of my ability to fill up a few of the very significant omissions. My right hon. Friend, in his facile manner, gave us a review of the history of this country after the French war. He then entertained us for some time by a duel with some imaginary person who is going about the country telling us that the Government have done nothing for the unemployed. My right hon. Friend really did scant justice to his own supporters. There is, for example, a large section of the Press which I am sure has kept us well informed, even if only by headlines, of what my right hon. Friend has done and has not done for many months past, and on that Front Bench there are certain very able lieutenants of my right hon. Friend whose business it is to keep us very fully informed upon the actions of the Government. The other day, for instance, I received a book—I think it was called "The Facts of the Case" —which at great expense set out in great detail what the Government have done. My right hon. Friend, no doubt, overlooked another very important publication, known as the "Lloyd George Magazine," which I know is very enthusiastically and ably conducted, and which has kept us very well informed on these matters. It was quite unnecessary, therefore, for him to take the opportunity to point out what the Government had done or had not done.

When we put aside the trimmings of my right hon. Friend's speech and get down to what it really contains, I confess to a feeling of profound disappointment, especially when we consider the magnificent and sustained advertisement which this occasion had received for weeks beforehand and the flamboyant headlines which had preceded it. I confess to the profoundest disappointment at the proposals of the Government. What do they come down to? They really amount to this: An export credit scheme, which hitherto has failed to function, is to be conducted on certain other lines with more money risk attached to it. Secondly, there is the proposal that companies or corporations from a Dominion Government to any body of persons may go out into the market, and, with the assistance of the Government, borrow money which otherwise they would not be able to borrow. There is also a scheme where, by the increase of contributions, a certain increased allowance for dependants will be obtained; and, finally, there are proposals for the assistance of the unemployed, which my right hon. Friend with his accustomed astuteness passed over with a mere glance giving us no inkling of the details. I am sure the reason my right hon. Friend with his characteristic art passed over those details was because they are egregiously unworkable. It all boils down to these proposals. We have read in our papers of the hustle at Gairloch, and of experts, sapient but anonymous, who were called in to give advice at the eleventh hour and fifty-ninth minute, and from time to time we have been entertained with advertisements beforehand which, of course, served to raise the expectations of the unemployed. I will give the House one single illustration:

Let us take first the export credits scheme. There are certain alterations which I should think are most desirable in connection with the operations of that scheme. If I understand it rightly, the previous scheme was on the basis that the risk which the State undertook to cover was 42½ per cent. Under the present proposal the State is to guarantee the whole sum; but, in the event of failure on the part of the purchaser to pay, the actual risk which the State is finally to bear is to be 42½ per cent. The British vendor is to make good 57½ per cent. Therefore, the net result of the whole transaction is that the liability of the State remains exactly as it was before. The scheme hitherto has failed to func- tion. Why should it function now when the liability of the trader and the State in the final result remain substantially the same. The Prime Minister told us that it did not function, and I would like to refer the House to what he said. He said that the exporter entered into the transaction with a knowledge of the man to whom he was selling the goods, and he went on to point out that the exchanges in these foreign countries stand on "trembling ground," or words to that effect. That is a perfectly correct description. He said that no trader would venture on this uncertain ground. That is true, and that is why the previous scheme has failed to function. The present proposal does not in any way touch what the Prime Minister himself, at great pains, explained was the real reason that the scheme has not succeeded up to the present. It does not touch in any degree whatever the difficulty of the fluctuating foreign exchanges. There is not a single proposal in it which affects in any degree that difficulty. It does not suggest any remedy; it only seeks to patch up or add to a proposal which I only hope will work better in the future, but which, at all events, hitherto has been substantially inoperative. There is not a vestige of suggestion in respect of reparations, or any other matter, seeking to stabilise the exchanges and thereby removing the reason of the failure of the scheme, and unless we have some suggestion of a remedy of the real cause this scheme in the future may prove as futile as it has done in the past.

The next proposal is that interest and sinking fund of capital issues to the extent of £25,000,000 should be guaranteed. Who are going to raise these loans and how are they going to be arranged? We were told that they might be anybody from a "Dominion Government" to a "body of persons." I know that certain local authorities and other responsible bodies have had no great difficulty in raising all the money that they wanted. Some time ago a great many of them had more money than they could spend. These loans relate therefore to securities which are not favoured by the ordinary investor, and they may be raised by anybody from a substantial and authoritative Government to a private or semi-private concern. British Dyes might want another million pounds. A year ago one day's advertisements in the papers covered the sum of £25,000,000. Are you then going to place industry on its legs by proposals of that character? They can have no material result even if successful.

I now come to the next suggestion, that there should be an increased levy in respect of everybody employed, of 2d. per head, employer and workman, to provide benefits of 9s. per week in the maximum where there are dependants. At the present time, for Health Insurance and for Unemployment Insurance, the employed person and the employer together pay 2s. 1d. per week. Therefore, under this proposal, the payment in respect of every male employed person by the employer and the employed together will be 2s. 5d. per week. In respect of this additional contribution you will be able to give 9s. as additional assistance. In this proposal my right hon. Friend is saddling more than half of the burden, not upon the general community, but upon the employed persons and their employers, and it is more than half of the cost of the benefit which he proposes to give to the other workmen. That is a suggestion which we shall have to criticise when we get to the Bill. There is one very important point of policy which the Government have neglected to deal with. At the present time a large number of insured persons are not receiving benefit, because they have fallen out of benefit, and will come in again on Sunday week. The number so out of benefit is very large, and I think it is somewhere about 500,000.

What is happening to these people to-day? They will come in for 15s., plus the 9s. for dependants, on a certain day in November. At present they go to the Poor Law Guardians, and if they have children they will be entitled to the 9s. extra. At the present time they are getting something between 50s. and as much as £3. On a certain day in November they will come again into benefit, and if they receive the benefits to which they will be entitled, they will get 24s. a week. They will come from the workhouse door and go to the Labour Exchange, and they will get 24s. instead of 50s. How are the Boards of Guardians or the Poor Law Authorities to know whether those 600,000 people are no longer eligible to the benefit which has been dispensed weekly by the Guardians? What is to be the organisation to secure that the people do not prefer very naturally to continue to receive 50s. from the Guardians rather than 24s. from the Labour Exchange? You cannot ride both these horses at the same time.

Of course, you can say, "We will adopt a system whereby by placing the charge upon employed persons we will provide certain benefits for the unemployed and their children." That is quite rational. On the other hand, you can say, "We will do no such thing. We will have them dealt with by the Poor Law, and they shall give such assistance as they may deem adequate." You cannot at the same time deal with the same persons through both agencies, because that would mean absolute chaos in administration. Either the one is a sound scheme or the other is sound. I do not doubt which is the sound policy. I have never been an admirer of the Poor Law system, but until the Government makes up its mind which line of policy it is going to pursue, it can only mean public waste if you try two policies both at the same time. There is not a vestige of information as to what the policy is to be in connection with this problem.

Now I come to another question which the Prime Minister has passed over so lightly, namely, the assistance to be given to local authorities. I will supply some of the missing blanks. We were told there were to be £10,000,000 available for certain public works. I suppose that will be administered in the same way as the £3,000,000 by the same Committee, or by some other body such as the Ministry of Health or the Ministry of Transport. The Prime Minister did not tell us anything about the conditions which are to be attached to this scheme, and therefore I will take the opportunity of filling up the blanks. My information is only derived from the official letter of the Ministry of Health which was issued in the public Press. There are certain conditions attached to this grant to local authorities, and I want to point out how they will work. I understand that it was at first proposed that grants equal to 50 per cent. of the interest and sinking fund charges on loans raised by local authorities to meet expenditure on approved schemes actively commenced before 1st January, 1922, would be paid by the State up to a maximum of 15 years or five years for revenue-producing schemes, but now this has been increased to 65 per cent.

The first condition is this. Grants up to the amount set out will be made to meet expenditure on approved schemes actualy commenced before 1st January. These schemes require to have been commenced before 1st January. The Prime Minister said something about drainage and other schemes. I know there are a good many experienced engineers in this House who understand these questions. I wish to point out that this is now the middle of October and these schemes have to be in active operation by 1st January. Therefore the contractor must have his plant on the spot and his materials and workshops, and all the machinery, and have these men working away on 1st January. What scheme is there of any magnitude which can be prepared with all the drawings, specifications, tenders, quantities, and all the rest of it within 10 weeks from now? Of course it cannot be done. This condition rules out any scheme that amounts to anything. You might bring in a road or a bridge, but as for drainage schemes like the Ouse scheme, that is ruled out.

Drainage schemes do not come under this proposal at all, nor do the roads.

Then I understand they will still continue to be undertaken by the local authorities. The Prime Minister was talking about drainage schemes, and all I know is that my right hon. Friend investigated a number of drainage schemes, and I mentioned one of the best. Now we are told that these schemes do not come under this proposal, and it is evident that some of the best do not come under it. The condition is that the scheme has to be in active operation by 1st January. Take the next condition. Local authorities should prepare a scheme for their area and submit it in duplicate to the Secretary of the Ministry of Health, with plans and detailed estimates, and all necessary particulars, together with a copy of the resolution of the local authorities directing application of the scheme, and so forth. The whole paraphernalia has to be got through by 1st January. Everybody knows perfectly well that that condition at the very start rules out nine out of every ten useful schemes. Another condition is that the expenditure to be taken into account must be expenditure incurred within the period ending the 31st March, 1923. That is to say that the job has to be finished by March, 1923. We all know what happens in the case of waterworks, sewage schemes, and other public works. I have seen them in the greatest possible detail, and I know what the local authorities have had before them for a long time past. These schemes have to be begun by 1st January and finished fifteen months afterwards, and those two conditions rule out nine out of every ten of the useful enterprises upon which local authorities wish to embark.

The next condition is a very desirable qualification. It is that, in approving a scheme, special regard will be had to the direct employment of unemployed persons and a preference given to ex-service men. I think we shall all agree with that condition. What does it say later on? In order that the available funds may give employment to the maximum number of men for unskilled labour, where the local authority undertakes the work, it should be for a probationary period of six months at appreciably lower than the full district rate of wages prevailing for unskilled labour in that area. I understand that some modification of that has been made up to 75 per cent. The unskilled labour rate is to be 75 per cent. of the district rate.

What does that mean? I will give the House a practical illustration. If a man is not suitable for the work, he ought not to be continued at the work, because there are plenty of men suitable who are unemployed. In the second place, if a man does not do a decent day's work, he ought not to be employed. Supposing, however, that he does a decent day's work, and after a trial is found suitable, he will get this 75 per cent. Let me give a case which I went to see, and which I confirmed only yesterday morning. There is a large road being made outside London called the Eastern Avenue, which runs from Wanstead to the Colchester road. It is about eight miles, and the contractor made a contract with the Ministry of Transport last June. I understand that the work will be completed in about a year, although the contract specifies two years, and it is a magnificent piece of work. This contractor has employed 1,500 men. According to the terms of his contract he can only take on ex-service men who are unemployed, and who were previously in receipt of unemployed pay. All the men on this job were unemployed ex-service men, and this contractor is getting the work done at such a pace that he is going to finish in one year this contract instead of two years. This is being done by ex-service men and unemployed. This contractor tells me that, with all his enormous experience, he is getting as much work out of these men per day as he got out of his regular employes before. It is a great tribute to these unemployed ex-service men. What is the next thing? The next thing is that after two or three weeks' work these men were as good as anybody else. What does the Govern-men propose? We have many a time in going about the country seen a roadman working in the employ of a local authority patching a roadway or something of that kind. That man gets the district wage. These men employed on these schemes who, as has been shown, can do as well in three weeks as professional navvies could do before the War, and who can complete the job one year under the contract, are paid for six months 75 per cent. of the wages of the groggiest roadman in the district. That is the Government proposal. It is an insult to the ex-service men, and I undertake to say the Government will not find a local authority of a self-respecting kind from Land's End to John o'Groats to offer it. It brings the whole thing to naught.

What is the next condition of the grant? Here you will say, "King Charles's head." These grants will not extend to housing schemes or other local schemes which are already in receipt of assistance from public funds, but may be applied to sites which local authorities desire to develop outside the State's housing scheme. Let us look at that condition.

My right hon. Friend, who does not know as much about this as I do, says "Hear, hear!" Let him wait a few minutes. The Prime Minister told us yesterday that the building trade at the present moment is engaged up to the limit of its capacity. I took his words down. I wish to say that that statement is untrue. The Minister of Labour has a number of men on his registers belonging to the building trade unemployed. I do not know what the number was last week; I think it was about 110,000. They were not unemployed six months ago. Of course, a large number of them are builder's labourers; a large number of them belong to the less skilled branches of the building trade. But let us test this statement of the Prime Minister, which clearly is not true, because there are 100,000 unemployed in that trade on the books of the Unemployment Exchanges. They are not employed to the limit of their capacity because they are not employed at all.

Let us take it as it actually works out. I will go back to the scheme I was dealing with a moment ago, at Ilford. Here it was contracted that 2,000 houses should be built. The Prime Minister said yesterday, and he took credit for it, that local authorities had been stimulated to proceed. I well remember helping in the process of stimulation of this particular scheme. The contractor was induced to put in streets and foundations for 630 houses, roads, sewers, gas and electric light mains, and all the rest. They are there for anybody to see; they are not far from Mile End Road. In June last the contractor was told that the scheme was to stop at 220 houses; and there they are. There is a railway laid through the site, and the contractor has put up shops containing machinery for making doors and windows, etc—everything a house wants—and magnificent sheds containing at the present time £70,000 worth of building material, all got together in accordance with the terms of the contract with which the local authority had been stimulated to proceed. I notice there appeared—I do not know where from, but these things have a habit of appearing when they are calculated to discredit an ex-Minister—there appeared the day before yesterday a statement in the "Evening Standard" newspaper that the scheme had been stopped, and that £860,000 had been spent on 220 houses. Let us look at that. What did that money include? First of all, it included the purchase of the whole of the site for 2,000 houses. Then it included the railway which has been made. That was assessed at £20 a house. It also included the foundations for the whole 630 houses and the drains, gas mains, and all the rest of it. It included the workshops and the machinery costing £70,000, and stores costing another £70,000, as well as the building of the 220 houses. The whole of the charge is proposed to be placed on the 220 houses, and that is what they call housing on a business basis. The point is that, as a matter of fact, according to the chartered accountant's certificate, the houses were working out at £200 below the basis price which in accordance with the terms of the contract I had approved.

How does that affect employment? At the present time on that scheme, in consequence of the Government's decision, there are only 300 men employed. During the last three months 800 men have been dismissed. Had he not been stopped, the contractor assures me that he would have been employing at this moment on that one job 3,500 men, and he tells me with all his responsibility that he could get them easily. He has got the names and addresses of many of the 800 men dismissed within the last few weeks. How are the unemployed in East Ham going to take that? Let any Member of this House take a tram and go out and have a look. It is only an hour's journey from this House, and I wish a number of Members would go and have a look. The spectacle there is a disgrace to our country. This is what the spectacle is, and they are seeking to tell the unemployed in East London who pass it that they are employed to their utmost capacity, when they know that within the last month they were sacked from the job themselves and have been receiving unemployed pay ever since. This is what it is. You see machines standing idle, trenching machines, road-making machines, standing in the middle of the road, and the railway made across it. You find large pits of sand and gravel. One they were told to fill up. Amongst the foundations and amongst the roads which the local authority was stimulated to proceed with an enterprising farmer has planted the intervals with potatoes and runner beans. I admire and commend the enterprise of that farmer. I wish my right hon. Friend's Department had a glimmer of his intelligence. What is the fact? The fact is that nearly 1,000 men have received the sack from this one job within the last few months. They live in the neighbourhood and they can see it every day. The contractor could employ and could obtain ten times as many men as now are on the job.

What, then, is the meaning of this condition which I have referred to, the condition that these grants will not extend to housing or other local schemes in connection with which public assistance is already being given, but local authorities may proceed to develop outside the State's housing schemes? In other words, the City Corporation, though I do not think it will do anything so foolish, if it wanted to do anything to assist, could not go and put bricks on the concrete which is there already with the weeds growing all round it; it could not go and use the road already made with the sewers and the electric light and gas mains. All it could do, according to this scheme, is to take a ploughed field in the neighbourhood, where no one had done any work, and build houses on that. That is what the Government proposal means. It is a monstrous disgrace that anything of the kind should occur, and I am convinced that they will make it so hot for the Government in the East End that they will have to recast their decision. The Prime Minister said it was the worst period of unemployment for 100 years, yet you have these poor fellows at Barking and Ilford who were working on that job a few weeks ago, being told to take comfort from the proposals brought before the House yesterday, when the very thing upon which they were doing useful public work a few weeks ago is ruled out. That is not making provision for the unemployed. I think one very important paper rightly described it as a mockery of the unemployed. I will undertake to say that by these various proposals, with these four limitations, you cannot give employment to 10,000 unemployed between now and next March. I do not believe for a moment that it can be done.

I have saved for the last, in respect of this recital, the choicest enormity of the lot. I said a few minutes ago that they were making a road in that district in connection with a contract with the Ministry of Transport. This road is called the Eastern Avenue, and it starts, I believe—I may not be quite correct as to-the exact details—at Wanstead. At all events, it relieves the district to the north of the Mile End Road. For about a mile and a half the road—it is a magnificent road—is not quite finished, but they are getting on well with it—runs up to the boundary of the City housing scheme. The road runs, or should run, straight through the City housing scheme. At the present time the track there is marked by a railway. At the other side of the housing scheme the road begins again. Under the contract with the Ministry of Transport, the contractor has nearly completed the road up to the City housing scheme; then there is three-quarters of a mile of potatoes and runner beans; and after that the road goes on again for another six miles. There it is, and any Member of this House can go out and see it—a mile and a half of it up to the City housing scheme, then the veto, then six miles on the other side already made. But what is going to be the use of the road I cannot imagine. I suppose the Ministry of Transport and the Ministry of Health will recognise the gross absurdity of it before they have finished, and will allow the road to be made through the City housing scheme, so as to enable a vehicle to get from one end to the other. At the present time that cannot be done. The whole thing is being completed except for the three-quarters of a mile of potatoes and runner beans, and that is the very bit which is ruled out under the Government decision. They cannot make a road through it, although it will join up the two bits of road for which the Ministry of Transport has already made a contract and which the contractor has made. That is what they call a policy. That is doing things on a business basis. You make a contract for the building of a road, and the contractor gets on with the work; but you secure that a piece three-quarters of a mile long is interposed, so that no one can use the road when it is made. That is what is called doing things on a business basis. I prefer the scrappy methods for which I was responsible in the performance of that task. We, at all events, would have secured that if the road had been made it would have been continuous.

This proposal with respect to works and unemployment is as dead as mutton. It will not work; it cannot work; and I do not wonder that the Prime Minister did not give the House of Commons the details yesterday. He is far too acute a parliamentarian to have given these four conditions, but that is what they are, and they commit the whole thing to nothingness from the very start. It is no good dangling headlines before the unemployed; that will not relieve their troubles. [An HON. MEMBER: "Oh, what a change!"] After all is done and said, you are not going to cure this question by patching it up and putting things on top. The only way that will do any good will be to remove the causes, and a frank and fair expression as to what they are would probably be more useful than discussing these utterly ineffective projects. I understand that already the Board of Trade, in the administration of the Safeguarding of Industries Act, has put several thousands of articles on to a sort of schedule, and I think we ought to have some declaration of policy on that. If that goes on, and the Board of Trade proceeds to administer this Act on what, perhaps, may be described as the doctrine of the doll's eye, I do not know where they will find themselves. That doctrine seems to imply that, if any portion or ingredient made in a safeguarded industry finds its way into any commodity, then, even if it be only the glass eye of a doll, it thereby brings into charge the whole commodity in which it is incorporated. That is an absurd doctrine, and I hope it is not going to be applied. It would have been as well for the traders of this country to have had some light as to what policy is to be pursued in that regard.

The Prime Minister went on to say that high taxation limits trade, and then in a majestic way he threatened us with all sorts of pains and penalties if, when the time came, we refused to sanction the curtailments which he proposed. As to that, we shall see when it comes, but in the meantime I would like to point out to my right hon. Friend the Minister of Health what is the net effect of the whole thing up to the present in respect of a subject with which I am particularly concerned very often, namely, the improvement of our slum dwellings. At the present time the effect is that we are paying £4 7s. 3d. for every man, woman, and child in the United Kingdom for war services, and 1½d. for the improvement of the slum dwellings of Great Britain. That is a proportion which I, for one, do not accept, and I wish that, in his proposal for removing what he himself described as one of the greatest handicaps to trade, namely, high taxation, the Prime Minister had given us some intimation of how he proposes to readjust these grossly disproportionate amounts. I am quite sure that they will not for long be tolerated by the country. I do not want to delay the House too long. I have examined these four proposals, and have criticised the schemes with respect to the local authorities, in the light of the text of the letter issued by the Ministry of Health itself to the local authorities prescribing conditions. I have no doubt whatever that, although the House may still be under the glamour of the Prime Minister's speech, of yesterday, it will be found that these proposals are costly and in the main unsuccessful expedients, and that, save in a minor degree in the case of one of them, none of them is directed to removing the real causes of unemployment.

Very few Members who have been listening to the speech of the right hon. Gentleman this afternoon would have surmised that only last year he was himself Chairman of a Cabinet Committee on Unemployment. Very few would have imagined, from his speech this afternoon, that he had ever heard of any of the proposals which we are now putting forward, or had ever given any kind of thought to them in the past. Considering, however, that the right hon. Gentleman himself was for a long period of time Minister of Reconstruction, and was Chairman of that Cabinet Committee, and Had ample opportunity and material to evolve and produce a great scheme for dealing with unemployment, I am astonished that neither last year nor this did he produce, as far as I remember, anything of any greater value, or even half as good as the present scheme of the Government. The right hon. Gentleman, having forgotten all he ever knew of the Department over which he once so ably presided, makes a most amazing and a most deplorable statement—deplorable is the only word for it. Let me take one instance. I will deal with the right hon. Gentleman's criticism of the scheme for grants to local authorities, which was arrived at after a full conference with all the leading representatives of local authorities in this country, and agreed to by them as helpful and useful. The scheme is already producing most valuable results, although the right hon. Gentleman says it is not working at all. Applications are coming in every day, and grants for millions of pounds' worth of work have already been made. It is absurd for the right hon. Gentleman to come here and, out of a vivid imagination and an intense dislike for all those who worked with him for so many years—with a burning desire to shed the mantle of a statesman and assume the worst rôle of a tub-thumper—to speak as if he is entirely unaware of what is actually taking place. The right hon. Gentleman spoke with great scorn about the fact that the 65 per cent. grant was not applied to housing schemes. Why not? Because obviously, under the housing scheme, the local authority is only liable for a penny rate. How pleased local authorities would be to have put upon them, not the additional burden of a penny rate, but the very much greater burden of a 65 per cent. grant! It would obviously be impossible.

The point is that they are not allowed to continue to build where they can give employment on schemes already sanctioned for housing; they can only build somewhere else.

Not at all. The right hon. Gentleman has issued so many of these circulars that he ought to understand their language even better than I do. I cannot understand his not understanding the official language in which these documents are couched. The housing scheme, as my right hon. Friend knows, is a quite independent thing, involving a penny rate, and you cannot mix it up with this grant, any more than you can with the 60 per cent. recommended by the St. Davids Committee, which is analogous to this. We have had to curtail the housing programme, and my right hon. Friend would have had to curtail it too. There is no difference between us on that point.

No, there is not. I must point out to my right hon. Friend that when I took over this very onerous office I was faced with the legacy of a curtailment of the housing programme which has got me into difficulties with every local authority in the country.

What I was doing was sensibly working according to the market prices. What you did was to turn off everything.

5.0 P.M.

That is not the case. I do not, however, want to go into that, because there are so many other points to deal with. My right hon. Friend knows perfectly well that he had agreed to a limitation of the housing programme which compelled a rationing of the local authorities. When I came to the Ministry, my first task was to inform the local authorities of that, and there were sites which could not be developed for a considerable number of years to come. The local authorities have sites to-day on which they do not and may never want to build. There is no reason, however, why those sites should not be used. Private enterprise and public utility societies, with falling prices, are coming more and more to the front to-day, and I am telling the local authorities that I will give them the 65 per cent. grant for the purpose of developing roads and sewers on land for which they have no housing scheme if they wish to do so—I have done it at Woolwich—where there may be a reasonable prospect of private enterprise or public utility societies coming in and either buying or leasing the land from the local authorities. That is a perfectly business like proceeding which is both giving employment and developing estates for building. My right hon. Friend referred at great length to Ilford. The scheme of the City of London Corporation was forced upon them very reluctantly by my right hon. Friend's eloquence. The City of London did not want to build any houses. They did not want the scheme. It was a fantastically expensive scheme.

My information comes entirely from a deputation from the City of London who came to see me and said: "We will not build any more houses at Ilford. They are fearfully expensive. No one wants them. We have not any tenants for them." That is what they told me, and they said: "We will not build them." You cannot go on and compel the City of London to build houses which are not workmen's houses at all. They were houses for the better class of clerks. I want to provide houses for workmen in those industrial centres where houses are needed. That has been my whole policy. I said to the City, "If you do not want to build these houses, stop building them," and I have had a larger margin of houses to give out to Woolwich, to Dagenham, and to industrial centres throughout the country in consequence. I have had 1,800 more houses for workmen and 1,800 fewer for clerks, which were not wanted.

Is not the right hon. Baronet aware that very many clerks on meagre salaries are paying £1 a week for furnished apartments at Ilford?

I have no doubt that may be the case, but I know there is more overcrowding in the poorer parts—

They could not afford to buy the £1,300 houses at Ilford. That was the figure given me this morning. I am sure that my right hon. Friend will accept the figure of the officials who worked with him for so many years as against a casual conversation with a contractor. No doubt the contractor was putting on the best rate possible. Contracts have been cancelled and the contractors have come to build for me £300 a house cheaper than their former contract. No doubt they would have been very glad to go on with the old expenditure. So much for Ilford.

Let me deal with this old bogey about unemployment in the building trade. [An HON. MEMBER: "What about the road?"] I do not know what road my right hon. Friend is referring to. I will look into the question, but I cannot see that anything in this circular or in anything we have done prevents a road from being built. But that is a detail. I should like to deal with this question of the so-called large number of unemployed in the building industry. In 15 miles' radius from Charing Cross there are only 209 unemployed bricklayers on the entire employment exchanges and 57 plasterers. You cannot build houses without bricklayers, but you have intermediate people. There are a large number of painters unemployed because of the shortage of plasterers. The Prime Minister's statement yesterday that the building industry, from the point of view of building houses, is working at its fullest capacity is literally true. I have had a very careful investigation made of this at a number of centres of unemployment. In Leeds, for instance, there are four bricklayers on the unemployment list, no slaters and one plasterer. In Hull there are four bricklayers unemployed, no slaters and no plasterer. In Newcastle there are five bricklayers. In Sunderland there are two bricklayers to be found. In Middlesbrough there are 18 bricklayers to be found, no plasterers and no slaters. From careful investigation I have made I maintain that you cannot proceed any more rapidly with building and you cannot get more people because the labour is not there. I am watching the situation from day to day and we have proceeded on the lines of absorbing unemployment where it is possible by giving a small number of houses here and a small number there. My right hon. Friend knows as well as I do that this vast body of people who go to the employment exchanges and register themselves as builders' labourers do not belong to the building industry. You cannot have 2,600 bricklayers unemployed and 30,000 bricklayers' labourers. A bricklayer has only one mate or two or three. He has certainly not got that proportion. You have a large amount of unskilled labour which is unemployed and is described as building labour, but will not build houses.

My right hon. Friend made one or two other comments on this scheme and on our circular. He was very much hurt by the fact that we have put an early date for the scheme to be submitted. Surely he knows from his long experience that nothing happens unless you put in an early date. In most cases local authorities and other people, when you give them no definite period in which they can put in a scheme, hang them up. Town clerks, surveyors, engineers and everyone will say "You need not put it in just yet. Put it by and give another look round." The unemployed will still be standing waiting at the workhouse gates and no schemes will be coming forward. We deliberately put in an early date in order to hurry these people up, and these schemes are coming forward. I dare say when the date arrives some good schemes will come forward and we shall be able to deal with them. I am certain we are right there. It is the same with expenditure. If my right hon. Friend will look at the circular carefully again he will see we are not saying the scheme will be finished by a certain date. We are dealing with expenditure, not completion—expenditure during a certain period.

I do not wish to misrepresent my right hon. Friend, but does it not say that is the last date on which they will be able to receive financial assistance?

The scheme may go on longer. I should like to point out that really we have done something, so far as local authorities are concerned, in this whole scheme, far beyond what has ever been done by any Government before. The principle, for instance, of assisting private enterprise would have been looked on with horror some years ago. To induce local authorities to put up gas works, electric light schemes, tramways and things of that kind is quite a new departure. The grant we are giving is more generous and far wider than any grant that has ever been given before. My right hon. Friend the ex-Minister of Health stands at that table and tries to pull the circular to pieces. Heaven knows it is difficult enough to get local authorities, with their heavy burden of rates, to come and help us at all. I am sure my right hon. Friend is as anxious for unemployment to be relieved as I am and he ought not to try to make our very difficult task more difficult.

I should like to say a word about the 75 per cent. in wages. There are two points on this and I am going to face them absolutely squarely. What is the chief objection which is continually raised to relief work? Local authorities assure you it is much cheaper to pay people doles than to give them relief work. We all know that relief works are immensely costly because, from their very nature, as a rule you have to put people on to them who are not skilled. They are relief works and therefore you do not pick out the best navvies. You take the people who are most destitute and needy, otherwise they fail in their object. My right hon. Friend instanced some road contract which he had investigated. If he will take the figure of the money spent by the Road Board last year and the labour they employed, he will see that it cost nearly four times the normal amount to employ that class of labour on road work. Local authorities will say, "This is much too expensive and it is unreasonable that unskilled men, for whom you are putting up work you do not want to do, should have the same rate as skilled men who have been in that job all their lives." It is unreasonable and it is unfair. There is no such thing as unskilled labour. Everyone must have a certain amount of skill, but a man who may be a skilled fitter may be an unskilled road-maker. It is unfair to say, "Here is a man who knows nothing about your job and he is going to come in exactly on your terms." After all, who is paying for it? It is the working men of the country who are paying. They are the largest section in the population. To a large extent everything comes down to him. You say to a man who is employed in regular work and at regular wages, "You have to pay another man who is out of a job, to do work which you do not want done and which he does not know how to do, the same full rate that you obtain." It is unfair and unreasonable. There is a six months' probationary period. We have fixed an arbitrary period and we have had to fix an arbitrary wage.

My right hon. Friend says no local authority will operate this. I can assure him that this was welcomed by some of the largest local authorities in the country such as Birmingham. It was welcomed by the Scottish local authorities, and they said it was only on terms like these that they would go on with these schemes at all. They said, "We will not pay the full rate for unskilled men on jobs we do not want to do." They are doing a favour to these men. The whole nation is paying money in order to give them some work. Therefore, it is only rational that they should be satisfied to obtain less than would be paid for productive enterprise in the ordinary way. The right hon. Gentleman got a little confused about the £10,000,000 grant. The £10,000,000 grant has nothing at all to do with the local authorities. All the local authority money is outside the £10,000,000. The £10,000,000 includes provision for drainage and land reclamation work, upon which my right hon. Friend and I conferred very often last year. I am glad that we are going to get a substantial sum under the Ministry of Agriculture in order to assist the Drainage Boards to do drainage work and land reclamation. Part of the money spent will be reclaimed from the landowners and others.

As much as we can get. It will be a very valuable piece of work. The right hon. Gentleman made a point, that difficulties will arise with the working men who draw unemployed benefit and receive relief from the guardians. Surely that has been going on for many years. The right hon. Gentleman must remember Section 27 of the Unemployed Workmen's Insurance Act, with which I believe he had some concern.

It has not been going on for years, because previously the Poor Law guardians only gave in kind, and did not give these large sums of money. The present arrangement is quite novel.

People have had both the unemployment benefit and the Poor Law relief at the same time. Section 27 of the Unemployed Workmen's Insurance Act states that the Poor Law guardians in calculating the relief to be given can only take into account five shillings of the fifteen shillings that the man receives in unemployment benefit. The system of a man drawing unemployment benefit and Poor Law relief has certainly existed for a number of years, and the existing arrangement has existed for a great many months. What will happen is that the applicant for Poor Law relief will have to state his position to the guardians, and if he makes an inaccurate declaration the Poor Law guardians can communicate with the Employment Exchange and he will be liable to the usual legal penalty. There is nothing new in that. No new administrative difficulty arises on that point. It is a straightforward transaction. The right hon. Gentleman got very wise when he began to lose himself in commercial and financial questions. He said, referring to the export credit scheme: "What are you doing with this scheme? You are doing nothing." It is true that under our proposals when a man wants to obtain credit, instead of getting 85 per cent. he will get 100 per cent., but we still have recourse against him for 57½ per cent. If the right hon. Gentleman wanted to do business for a hundred pounds, and he could get it in the way we propose, surely the fact that some future day he might be asked for 57½ would not deter him, because he would at any rate be able to do his business. Therefore, it is a very great advantage for a man to get 100 per cent. credit and take his chance of the 57½ recourse. It is certainly a great advantage to the trader.

The right hon. Gentleman has omitted two very important facts. This scheme was originally introduced, not so much for the benefit of British trade, but as a help for some of the countries with damaged exchanges in Central Europe. It is obvious that a country with a damaged exchange is about the worst customer that we could hope to find. They are the most difficult people to do business with, and no amount of export credit will produce necessarily very much there; but we have extended the scheme to every country in the world, and to the British Empire. We are now going out to the Far East, to South America, to people who have good exchanges. We are going to facilitate trade with people who can pay, and it is a very wise thing to do. I would like to remind the right hon. Gentleman that before the War 75 per cent. of the British export trade was done overseas, and only 25 per cent. was done with Europe. Therefore, much as we deplore these bad exchanges and their disturbing and disastrous effects, we must realise that there is an enormous field for our export trade outside Europe, and that we can obtain orders quite apart from the exchange question and quite apart from the illogical arguments about German reparations.

According to some of the arguments I have heard, if we will only cancel the German debt and allow Germany to draw on our Treasury whenever she likes, she will be able to buy more of our goods. To carry the argument further, if we became slaves, tributaries to Germany, we might have a lot of employment for our people and keep them working 24 hours a day producing goods and handing them over for nothing. I failed to follow the right hon. Gentleman's line of argument. If somebody offered me £1,000 for nothing, I would accept it rather than work five years to earn it. The common sense of our people must realise that what is wanted is not to abandon a perfectly just claim against Germany, but to find a method of obtaining it which will be a benefit to us and not a harm to us. [An HON. MEMBER: "We have not got much yet."] It is not at all beyond the bounds of human capacity and human intelligence to do that. It only requires the application of a new orientation to the whole problem. A great many people, like some hon. Members, cannot understand how we can obtain German goods for use in this country without throwing our people out of work. If I had control of German goods, I could manage to benefit this country very much without throwing anyone out of work.

My right hon. Friend has told us what was done twelve months or so ago. He lived in more spacious days then than we do now. Twelve months ago we saw prospectuses in every paper, involving millons of pounds. Twelve months ago you could spend millions on houses. Look at the situation to-day. Where are the prospectuses? How are they being subscribed? Unfortunately, the bottom has dropped out of a good deal of the boom in prospectuses and other things. [HON. MEMBERS: "And out of your policy!"] I am afraid it is not our policy that is to blame. [HON. MEMBERS: "Lack of it!"] I do not think it is the lack of it. It is the one hard fact that you cannot eat your cake and have it, and you cannot spend your money and have it. It is on a par with the argument that because we spent thousands of millions during the War we ought to spend thousands of millions now. The right hon. Gentleman says that the £25,000,000 will not do much. If he will go to the City of London and ask some of the bankers, to whom the hon. Member for Salford (Mr. Tillett) referred yesterday in an eloquent speech, he will find that £25,000,000 to the money market at the present time is a very considerable amount. What is the object of this amount of money? If we can get orders from the South American railway companies, if we can stimulate the great hydro-electric undertakings of this country, if we can stimulate the development of the London tubes and the electrification of the railways; if we can do that by guaranteeing the loans they issue, if we can help them to obtain their money 1½ or 2 per cent. cheaper than they would otherwise obtain it, and induce them to give orders now instead of holding them up for years, I can see £18,000,000 or £20,000,000 coming into industry within the next twelve months. Nobody can say that that will be a small sum.

What we want is a stimulus. A great deal of our difficulty at the present time is psychological. We seem to have come to a dead end. If we can go ahead, if we can stimulate people and get them to realise that there is not always a falling market, but that there is a rising market, and if we can make them untie the orders, of which there are plenty in the world, we shall do much to take off this terrible depression which hangs so heavily upon employers and workmen alike. There is a hopeless feeling that works are never going to run again, that chimneys are never going to smoke again, and that it is no use doing anything. If we can get over that dead point, we can make a start which will surprise people. I do not take this terribly gloomy view of the future of the world. I do not believe it. True, the position is very serious. The unemployment problem is very grave, and people like myself who have lived in the midst of it for many days and nights cannot but be impressed with the terrible position of people who, through no fault of their own, are now unemployed. Many of these people have never been out of work before, and have been accustomed to take home large wages. They are skilled men, steady men, saving men, and it is terrible that these people should be asked to go to the guardians.

Our scheme will help. If the £25,000,000 is not enough, well, this is not the end of world. We are now in October, and the House will meet again in February. The £25,000,000 can be usefully spent within that time. When the House meets again we may find ourselves in a position in which we consider it desirable that more money should be spent on these lines. In that case it will be open to the House and the Government to reconsider the position. The decision is far-reaching. We are using the credit of the Government and the credit of the State in order to get industry going. That is a thing of immense importance. It has never been done before, and it is a very big, wide, sweeping principle. The right hon. Gentleman sneered at the experts, the eminent men in banking, and the eminent men in industry, who, when the Prime Minister was ill at Gairloch, took the trouble to go to Scotland to confer with him and to enable him to discuss the question. I was rather surprised at the attitude of the right hon. Gentleman.

The right hon. Gentleman knows as well as I do that no Minister can be responsible for what appears in the Press. No end of things have appeared in the Press on this matter, incorrect, exaggerated, and causing a great deal of trouble to those who are trying to solve this problem and raising expectations which should not be raised. These are not the fault of the Government. The Press, as the right hon. Gentleman knows, has got to provide information. It does not always get official information, but it has got to provide information anyhow. The Press has got to be readable, and it is very readable nowadays. Does the right hon. Gentleman mean to say that the Prime Minister or his advisers are responsible for everything that appears in the Press? If he reads his own words to-morrow I think that he will be a little sorry. I do not think that he meant what he said about the Prime Minister's desire to disguise things from the House in the speech which he made yesterday, because, after all, the right hon. Gentleman will agree that the Prime Minister, as an old political hand, would not try to disguise things which in a few days would be bound to come out.

The right hon. Gentleman himself went out of his way in his cultivation of the Press, which apparently had taken so much of the limelight away from the position which he used to adorn, and in the Recess he had column after column, I was glad to see, of interesting interviews and speeches made during his peregrinations when he was taking a busman's holiday, regarding the housing schemes which he had so nobly started, and so anxiously tried to push forward. But my views are entirely unaltered by the criticisms of the right hon. Gentleman. Where they are in any way justified I am sure that we shall be glad to have all the assistance and advice which he can give us. But those proposals of the Government do not claim to be the end. We do not say that more will not have to be done. We would gladly have done more now but we had also to consider the financial necessities of the moment, and the fact that we are not able to increase taxation. But our scheme is the fullest, largest, most complete and most carefully thought out, and most original scheme for dealing with this problem which has ever been put forward by any Government up to the present. We have examined and rejected dozens of schemes, but I do not think there has been one practical suggestion put forward which we have refused to adopt which would not have been more largely to the detriment than to the benefit of the country. I feel sure that the House in this short Session will do its best to assist the Government in dealing with this problem. I am sure that the Committee, of which I am a member will be only too thankful to get assistance from all quarters and assistance and suggestions from those whose minds are dwelling on this subject, and who wish not to criticise and hinder but wish to help and support us in this time of great national necessity.

In reference to the speech of the right hon. Gentleman who has just sat down, having been in the city to-day I would like to say that there is a decidedly less pessimistic feeling among the men whom I met this morning than there was last week. I take it that the speech of the Prime Minister last night has helped largely to create the feeling to which my right hon. Friend referred that there was a bottom to things, and that is was possible the psychological moment might come soon. And on the Exchange of London this morning the very fact that the German mark is so much better to-day than it was when the Prime Minister spoke yesterday is an additional reason why business men are in hopes that the blackest period of our depression may have passed. My object in joining in this discussion is to congratulate the Government on the policy which they have adopted in this respect that it is a policy providing opportunity. The Prime Minister said it was impossible for this Government or any Government to give employment on such a scale that would meet the trouble, but when you go through the items of this policy each item opens avenues of opportunity, and that, to my mind, is the acme of good government.

With regard to such matters as we are debating to-day, the extension of the overseas credit is undoubtedly increasing the opportunity to merchants and traders to take on commitments which are certain to give a very large volume of help. The fact, which the Prime Minister mentioned, that the £20,000,000 which the Colonial Office is prepared to sanction in the way of loans to our Crown Colonies also gives greater opportunities on an increasing scale. He mentioned the work done by a previous Secretary of State for the Colonies with regard to Nigeria. He made the astounding statement that the trade of that one Colony had increased last year to the extent of £33,000,000 in its imports and exports. That is not to be wondered at when we remember that we have 17,000,000 in that one Colony. Then we have the fact announced this morning in the papers that the loan of £3,000,000 additional to Nigeria has been fully subscribed. I believe that in the matter of giving opportunities this is one of the basic actions the Government can take.

With the previous loan a railway was built from Lagos to Kano, a distance of 600 miles. The outcome of it was that the natives living in the northern portion of Nigeria could market their produce. They set to work to grow ground-nuts and other articles of produce, and I can assure the House that the natives responded, and grew so much produce that this railway is incapable of carrying the amount of goods brought to it. Therefore this extra £3,000,000 will be spent on new rolling stock and further development. That is the right way to provide cheap food for our own people in the years to come and employment and a permanent market. The Prime Minister was right when he said that in future we must look more than ever before to the markets in our own Dominions. I am in the position in business to know how keenly every Empire in the world to-day is trying to become self-supporting. They are frightened more and more of the imports which they obtain from those countries where the exchange has broken down, and they are trying to protect themselves with even more tariffs.

A friend of mine on the Liverpool Exchange last week said that even when shipping fertilisers to the Southern States of America to fertilise the cotton crop, a new edict had been issued as to the fertilisers he was shipping out, to the effect that he must mix something with the rape meal, which was to be used as a fertiliser, which would prevent it from being used as food for cattle. These restrictions are being imposed by Governments to make their own countries more self-supporting. We who are in the centre and heart of the British Empire must look towards the development of our Empire to build up the markets of the future. In Nigeria when the railways are sufficiently developed we shall have enough ground-nuts and other produce coming from there, because they can produce it exceedingly cheaply. At 1½d. a pound delivered in Kano the native will have a handsome profit. The result will be that you can practically guarantee permanently in this country a full supply of margarine at 8d. a pound for our people. When I was controller of oils and fats I ascertained that 4,000 tons a week of margarine were needed as the smallest basis of supply. That is 16,000 tons a month, which is a great amount of food that by the development of our own colony will enable us to guarantee to our people in years to come one of the necessities of life at a low rate. It is good business. It means employment for the Lancashire spinners and a food supply for our own people at home. Therefore I would encourage that work most heartily.

There is one part of the work which the Government has done of which the Prime Minister did not make as much as he might have done. He told us a good many things that the Government have done to relieve the pressure of unemployment, but he did not say a word about what the Imperial Conference has done with regard to overseas settlement. On this I may read a short extract from the White Paper 1474 that the Government has issued on this point, because I have been amazed at the wrong attitude of mind of the Labour party in this House, and of trade unionists' in my own constituency to whom I was talking the other evening, with regard to overseas settlement. They seemed to think that it was derogatory to suggest that many of our able-bodied men should ever be spoken of as people who might go and settle in some other part of the Empire. If we once get the idea that science has annihilated distance and that a man under the British flag in Canada and New Zealand is practically living in Greater Britain, though not in Britain itself, that feeling will remove what I fear is a misconception in the minds of many people in this country, and those who realise the facts as we find them will see that one of the reliefs of unemployment must be the easier movement of the adventurous spirits amongst our people at home to found settlements overseas. We have to consider that there are 400,000 young men and 400,000 young women in this country who reach the age of 18 years annually, and that it is impossible, with foreign trade as it is now, and as it is likely to be for some years, to come, that opportunities can be found for all these young people, in addition to the ex-service men and others who have been thrown out of employment. I was sorry the Prime Minister did not mention the good work done at the Imperial Conference with regard to overseas settlement. This is what the Conference decided: regard to Crown Colonies, it is pledged to co-operate with the Dominion Governments in the suggestions that those Governments may make. A visit was paid to this country only a few weeks ago by the Minister of Lands of British Columbia, and he made to me the first practical suggestion that has yet come to my notice. Roughly, the suggestion was this: Mr. Pattullo visited this country by authority of the British Columbian Government to offer 200,000 acres of Crown lands to British settlers on very fair and easy terms. Briefly, the terms were that the land was to be purchased at the price of 2½ dollars an acre for ordinary land and 5 dollars an acre for picked land. The British Columbian Government undertook to show their goodwill towards the British settlers whom they invited to come amongst them by providing that the whole of the purchase money would be spent by the British Columbian Government on improvements on the estates, in building roads and schools.

To my mind such an offer is the acme of what was intended in regard to the lightening of the burden of unemployment in this country. If a few thousand of our fellow-countrymen could form themselves into colonising groups, they would be following an admirable life and they could convince themselves that they were doing their part in the civilisation of the world; and in future they and their children would still be able to hold what the instincts of the race have always urged, that the higher ideals of liberty shall be spread abroad in the earth and that when the mother country needs them, or any part of the Empire needs them, they are there at their country's service. In the Measure we are discussing there is the embryo of very great things that will make for the future upbuilding of the Empire.

The Prime Minister said yesterday, and said truly, that the main cause of all the misery and trouble we have in this country at present is the War, but he omitted to say that the trouble has been accentuated by the actions of the Government itself. We spent such an enormous amount of our treasure during the War that it was inevitable that a period of trade depression and consequent unemployment would ensue. But that treasure had been spent by the time the Armistice was signed; at any rate the liability for it had been incurred; and at that time the Government should have taken steps, knowing what would inevitably happen later, to prevent any undue expenditure. Instead of demonstrating to the nation that we had lost a terrible amount of our wealth during the War and that we were a poor nation in comparison with our position in 1914, the Government introduced new Measures and created new Departments, which placed an enormous burden upon both the taxpayer and the ratepayer.

A ridiculous interjection. The Government have not yet admitted that they take their orders from the Labour party. By their actions the Government created the impression that our wealth was inexhaustible and that industry could bear any burden put upon it. That action was reflected in the private individual, and all of us for nearly two years after the Armistice went on spending money right and left with the freedom to which we had been accustomed during the War. The result has been that by public extravagance and private extravagance we have lost so much of our additional wealth that unemployment and trade depression are accentuated to-day. We are face to face with a situation which makes it necessary to do two things. In the first place, we have to find palliatives to meet the case of those men who, through no fault of their own, find themselves in want and misery. The main part of the Government proposals is to meet temporarily the unexampled amount of unemployment. The second thing we have to do is to find a permanent cure. One, at least, of the Government's proposals is directed towards that end. What are we aiming at as a country? Our aim surely is to be able to maintain the 1920 standard of living for the whole population. We have to remember that our population is greater than it was in 1914, for, notwithstanding the number of men killed during the War, the cessation of emigration has actually increased the number of people within these islands.

In aiming to keep up the 1920 standard of living, the facts we have to face are these. As has been said repeatedly, in this country we depend entirely on our foreign trade. We grow in these islands about half the foodstuff we require and about 25 per cent. of the raw materials we require. We can get the remaining foodstuffs and raw materials only by being able to find markets abroad for our exports. We have to remember also that, even with the foreign trade that we had before the War, a large number of our people were underpaid, underfed and ill-housed. That was only partly due to the fact that the employers took too great a share of the fruits of industry. It was also partly due to the fact that the foreign markets which we were able to find were not sufficient to keep the workers of this country in full employment in full numbers. A third thing we must remember now is that the exchanges are against us in many countries; fourthly, that the European nations that have been accustomed to buy from us are still more impoverished by the War than we are; and, lastly, that we have to face the competition in the world's markets of a large number of countries whose goods are produced by people with longer hours of work and lower rates of wages than we desire for our own workers. Those are the difficulties in the way of maintaining the 1920 standard of living.

6.0 P.M.

The only way in which we can achieve our end is to find foreign markets that will take an ever-increasing quantity of manufactured articles at prices above the cost of production. We cannot do that if goods remain at their present price, and we must reduce the cost of production. Paradoxical as it may seem to some, that is the only way in which to maintain our present standard of living, for wages and hours do not ultimately depend upon the cost of living; they depend upon what people in other countries are prepared to give us for the goods we produce. If we admit that the only way is to reduce the cost of production, we must make the further admission that the only way to improve, or even to maintain, wages is to improve our methods of manufacture and thus reduce prices, and to arrange that other nations will give a preference to our goods as against the goods of all competitors, and that they will supply us with such orders for anything we can produce that we can keep all our people employed at fair wages for reasonable hours, and provide capital with a fair return for the risk taken. I would like to give the House an example. Let us assume that a certain foreign country says to our iron and steel trade: We will take 10,000 tons of steel billets a year, if your price is £10 per ton, but we would take 100,000 tons a year if your price was £8 per ton. It is obvious if we could supply 100,000 tons instead of 10,000 tons it would mean far more employment in this country not merely in the iron and steel trade, but on the railways and ships and in the indirect methods and ways in which that 100,000 tons would be handled. Therefore it is up to the iron and steel trade, on the assumption of this example, to get their price down from £10 to £8 per ton. That can be done in three ways. The first is by more efficient methods, the second is by the cutting of profits by the employer, and the third is by better output by the workmen. Let us assume that, if they tried, the workmen who turned out those 10,000 tons could turn out 15,000 tons in the same time. They would thereby supply further work for further workmen on the other 85,000 tons needed. Let us assume that the employer has taken 5s. a ton.of profit on 10,000 tons. He will be far better off if he takes a much smaller profit on the larger quantity.

I am trying to get back to normal trade, and the hon. Gentleman who has interrupted me knows perfectly well, that while his business may be difficult at the present moment, and he does not see where it can make a profit, he has made enormous profits in the last few years. I am trying to get back to normal periods when the employers can look forward to a profit, and if the hon. Member will be good enough to listen to what I have to say, he may find himself more in agreement with me. We must have efficiency, and everybody must help efficiency by throwing all their ideas into the common stock, by working their best for reasonable hours, and by arranging for a fair distribution of the proceeds of industry between employers and workmen. In this way the cost of production can be reduced and we shall arrive at a firm foundation. There is one great obstacle to our doing this, far greater than the question of exchanges, far greater than the financial weakness of foreign nations, and that is the ancient fued between Capital and Labour. There are some who say that the days of Capitalism have passed, and that we should replace it by a system of Socialism or Communism. I do not think it would be very difficult—though this is not the time nor place to do so—to show the wonderful advantages which that system of private enterprise and private property, called Capitalism, have brought this nation of ours. It is not the system that is wrong but the way in which it has been carried out. In the past, employers generally have abused their powers and privileges, have taken too much of the fruits of industry for themselves, and, with notable exceptions, have been indifferent to the well-being of their workpeople. Things are now much better than they were, partly due to legislation, partly to Trade Union effort, and partly to the growth of a more humane spirit among employers.

It is often said that capital takes risks, and, on the whole, 1 think, labour does not understand the real burdens which capital has to bear, but labour also takes risks—the risks of unemployment, with its tragedy to women and children. Labour's reply to the autocracy of capital has been trade unionism. Trade unionism has achieved much. It has earned for the working man status, rights, and protection which were not his in the past, but now trade unionism is abusing its powers and privileges. The trades unions, on the one hand, accuse the employers of profiteering, of victimising their workmen, and of being harsh in their general treatment of those they employ. The employers, on the other hand, say that the trade unions are stopping them adopting new methods, are restricting output, and making it impossible for industry to carry on in the face of foreign competition. Look at the picture! Here are two partners in this country, capital and labour, who have before them a fierce struggle to maintain their position in the markets of the world. They are indispensable to one another. If they fail in this struggle it means ruin and starvation to both, and yet, instead of joining hands in this struggle, which is incomparable to anything this nation has previously faced, they are constantly at one another's throats, trying to down one another by the weapons of the strike or the lock-out. You see almost daily larger aggregations of capital joining together, mobilising as it were, against the ever-greater alliances of labour. It is a barbarous spectacle. Labour squeezes capital in the good times, and capital squeezes labour in the bad times. The policy is nothing more or less at the present time than one of national suicide.

To sum up: We have realised that our prosperity depends upon our trade with foreign nations, that we have got to compete with foreign nations in the sale of our goods, that we must find a market for our goods in ever-increasing volume, and that the only way in which it can be done is by bringing down the cost of production. That can only be done by hard work and efficiency all round, and also by economy, so that the savings of one year may be used for the further development of industry in the next. This will never happen so long as the present class warfare continues. It must give way to class co-operation. Capital has got to make up its mind to take labour into partnership; to treat it as an associate equally concerned in the carrying on and the success of the business, as it is; to distribute profits justly and accurately on a new basis and to realise that the well being of the workers is the proper way in which to earn dividends. Labour on its side must drop the class warfare, must accept partnership with the employers and must do its best to make that partnership a success. We want a change of attitude on both sides. We must have friendliness, mutual trust, a determination to co-operate and share fairly with each other, willingness to work and a spirit of real comradeship, with all the cards upon the table. This spirit alone can revitalise that prosperity of ours which we have apparently lost. With both parties forgetting the past and acting squarely and openly with one another, agreeing to work loyally together, giving to each a fair share in the good and bad times, then industry will begin to revive, strikes and lock-outs will cease, output will rise, costs will fall, wages will rise, foreign trade will revive, orders will come in, and employment will once again become secure. In that way alone can the nation be saved.

The speech to which we have just listened, interesting and admirable as it was, is one with which I am very largely in agreement, because my hon. Friend advocated what I have always believed was absolutely essential to any permanent settlement of our difficulties, namely, a frank acceptance of the principle of partnership between the employer and the employed. I should like very much if this House, some time or other, could have a real discussion on that question, not in generalities, because generalities do not carry us very far, but in definite proposals which would be considered by the representatives of the employers and of the employed. Certainly there have been utterances by very important people on both sides which lead one to hope that some settlement of that kind is not so impossible as certain critics would have us believe. The point I desire to press upon the House is that though the decrease in the cost of production which would no doubt follow a more complete understanding between those engaged in production is very desirable, and indeed essential, for our recovery, yet for the moment there is another aspect of, the position which does not seem to have got sufficient consideration from the House on the present occasion. The Prime Minister alluded to it in his peroration. He said, and said truly, that we must have peace: that we must have cooperation between classes, and co-operation between nations. It is not that there is any want of demand for our goods. Everyone is looking out for them. The difficulty is that they cannot buy them. That is the trouble of the world at this moment. It is the loss of foreign markets that is at the basis, I will not say of the whole of our unemployment, but of a great part of it. I earnestly trust that the Government will make the principle to which the Prime Minister alluded in his peroration more the guide of their policy in the future than, as it seems to me, it has been the guide of their policy in the past. I cannot help feeling that nearly three years ago, the Government of this country and of other countries—I do not for a moment wish to say ours was the only mistaken Government — but the Governments generally and those of the European countries in particular, should have realised that the real difficulty they would have to meet was not that of the political and territorial questions arising out of the War. These were really, though it sounds paradoxical to say so, comparatively easy of settlement. The real difficulty from the outset was the economic difficulty. That was the real thing to which the greater part of the attention of those assembled at Paris ought to have been directed.

I came over from Paris to try to impress that view on the House of Commons in April, 1919, and I do not say that with any wish to claim special prescience. It was obvious to anyone who had to do with the economic side of the situation that that was going to be the great difficulty, and indeed it was clear from the nature of the case. We had had this gigantic destruction of wealth, this arrest of almost all reproductive labours in many countries for more than four years, and it was quite clear that you would not get through without the gravest economic difficulties sooner or later.

I am very glad that the Government are fully convinced of that at the present time, but there are features in their policy now which, I may frankly admit, fill me with some disquietude. I cannot square the acceptance of those kind of principles with the administration of the Safeguarding of Industries Act or with the maintenance—I believe it is still being maintained—of the German reparation. All these things must operate more or less to hinder the free interchange of goods. Free commerce between the nations and free interchange of goods at the present time is the vital thing that is required for the restoration of the economic position and the radical diminution of unemployment. I am not going to criticise to-night; I do not want to take part in the interesting and enlivening joust that took place between the present Minister of Health and his immediate predecessor. It was very entertaining while it lasted, and when the present Minister complained that my right hon. Frind on this Bench evidently disliked very much those with whom he had worked for so many years, I could not help reflecting that that perhaps was the reason. At any rate, that is one plausible explanation of the apparent anomaly, but I do not want to enter into these questions, partly because they have, been dealt with by others and partly because I want to speak from rather a different point of view.

The Government proposals for stimulating production—I am not dealing with the immediate proposals for relieving the actual distress caused by unemployment, which is quite a separate matter—may be right, may be wise, but their success depends after all on whether the foreigner can buy. That is the vital thing. I do not want to raise unduly controversial questions this afternoon, but I wish very much that we had dealt with these questions on those lines at an earlier stage. Let us take the question of Austria. Great efforts are being made now, and, as far as I am able to form an opinion, they are in the right direction, not only to relieve the distress in Austria—a great deal was done in the earlier time, and the Prime Minister referred to it in the earlier part of his speech, and it is quite right and essential —but very little, indeed nothing, was done until quite lately in the attempt to set Austria financially and economically on her legs, to make her self-supporting. That was what was essential. In the same way I cannot help feeling that our policy with regard to Poland, our failure at any rate to prevent the reckless, the incredibly insane policy—I mean insane from an economic point of view—which the Poles have pursued during the last three years, our failure to prevent that has been a very serious matter. In addition to that, there are a number of rather lesser questions, but still of importance, which have been left unsettled at the present day and which all go to contribute to the difficulties of those countries and their failure to buy.

There is the fact that no sufficient steps were taken to put an end to the internecine, economic war which apparently persists amongst the succession States of Austria and Hungary; there is the deplorable fact that the question of East Galacia has never been dealt with at all at present—a large and in some respects wealthy tract of country still in an absolutely unsettled condition. Then there is a question with which I have been concerned quite recently—the question of Albania—not a very important matter, I admit, from an economic point of view, but important psychologically, for I agree with what the Minister of Health said just now, that our difficulties are largely pyschological. There, again, for months and months, we have left this country with uncertain frontiers—an invitation to her neighbours to cause unrest and disturbance. Anyone familiar with the history of foreign politics during the last two or three years could add a great many instances to those I have given of the kind of things which seem to me to have been very unfortunate in our dealings with foreign affairs lately, but I want to come to a particular question which is urgent at the present moment, and that is the question of Russia.

Russia is, as we all know, a great country. She was a very large and important market for us before the War. I forget the exact figures, but they are very considerable; she was third or fourth, I think, among the foreign countries with which we dealt, and she has got enormous possibilities, as anyone acquainted with Russia is aware. I have not very accurate information—I do not know if anyone has—but I should say that the possibilities, the potentialities, of Russia are as great as those of any country in the world. What is her position at the moment? She is, apart from her political difficulties, which are very considerable, threatened with a famine of catastrophic proportions. The estimates of the population involved vary. Some say 15,000,000, some 20,000,000, some 30,000,000, some 35,000,000. The number of people who, it is estimated, will die of the famine also varies. Some put the figure as low as 5,000,000; some put it as high as 20,000,000. That is to say, some people think it will be a population equal to the whole population of Scotland; some people think it will be equal to or exceed the populations of Scotland, Ireland, and Wales put together. I cannot do better than remind the House of the passage which the Prime Minister read on the 16th August from our representative in Russia. He said this:

I confess it seems to me a reckless thing, looking at it for the moment entirely as a business matter, for us to allow that to happen if we can by any means prevent it. What is the position? There is no material and physical difficulty in relieving these people. There is ample food in the world to feed them. I am told that in many parts there are surplus stocks of food, and one picturesque detail has been given often enough, I think, that in the Argentine they are using maize as fuel for their locomotives, and there are other countries where there is also a surplus. There is no difficulty in finding the food. There is no difficulty in finding the ships, for as we all know there is plenty of shipping available. I do not believe there is any material or physical difficulty in getting supplies to the districts affected. It is not so easy as it would have been a year or two ago, but still much can be done to relieve the situation. The famine districts are, as I understand it, on the borders of the Volga. There is no difficulty in sending food to Novorossisk, on the Black Sea, and sending it across to the Volga by water transport—at least, that is what I am told. What have we done actually? The Prime Minister made his speech on the 16th August, in which he described, not only in the passage I have read but in others, the fearful nature of this famine. He was recounting what had happened at Paris at the meetings of the Supreme Council. The Council had appointed an International Committee to investigate; the Committee met in a fortnight's time; it then called a Conference at Paris, and the Conference decided to send an Allied body of 30 individuals to Russia to investigate this question. That was at the beginning of September. It is very difficult, when you consider the composition of that body, to believe that it would seriously be accepted. It consisted largely of men who had proclaimed their vehement hostility to the Bolshevik Government, and worked hard for its destruction. I do not think it was a very practical, business proposition to ask the Bolshevik Government to receive a body of that kind.

It was a Committee of Inquiry, consisting solely of experts in the different branches.

I am told that it was presided over by a gentleman who had made himself absolutely notorious by his vehement anti-Bolshevik hostility.

Not the Committee of Inquiry. That would not have consisted of members of the International Commission, but solely of experts, and as a matter of fact, the senior member would have been Sir John Campbell.

That is not the information that has been given to me, but, of course, I accept anything my hon. Friend has said. At any rate, it was refused, and the result was that another conference was called to meet on the 6th October. All this time, with the weeks going on, the frost coming nearer, every day's delay meant the death of so many more people. I do not know, and I do not pretend to understand, why it was thought necessary to have a special conference. At the moment the Conference was summoned to meet at Brussels, the Assembly of the Leauge of Nations was in session at Geneva. If the British Government were not satisfied with the competence of their representatives, it was quite easy for them to send anyone else to Geneva. They would have had a conference, not of 20 nations, but of between 40 and 50, and the matter would have been disposed of without much difficulty; but, as a matter of fact, we were told in Geneva that the Government had decided it was impossible for them to give any assistance by way of credit, and it was the decision of the British Government, announced to us there, which prevented us from doing anything or even considering anything that could be done effectively in the matter. Yet all this time there was a scheme ready for the relief. The scheme was the scheme of Dr. Nansen. That scheme had been selected by the Red Cross body to deal with this matter. He has been to Russia, and knows Russia, I suppose, as well as any man living outside that country. I have heard it suggested that Dr. Nansen is a Bolshevik. Dr. Nansen is not only not a Bolshevik, he is not even a Socialist. He is not connected, as everybody knows, with any political party in his own country. He has always stood outside politics there. He has served in certain important diplomatic positions, and he enjoys, and rightly enjoys, a position of unequalled authority and respect in that country, and in every other country where he is known. His scheme was that the relief should be administered under the authority of two persons, of whom we should nominate one, and the Soviet Government the other. Personally, I do not see how that scheme could be bettered. I do not see how you are to carry out relief in a country unless you do it in cooperation with the actual government. If you preserve to yourself absolute control, so that nothing can be done without your consent, it seems to me you have taken the essential precaution.

I know that the American scheme was said to be better. I believe that was said in the Brussels Conference, in the presence of the American representative, and the American representative immediately rose and said he did not agree, and that Dr. Nansen's scheme was quite as good as the American scheme. One of the curiosities of this situation is that all sorts of stories have been put about that there is some sort of hatred or rivalry between Dr. Nansen and the Americans, whereas they have always worked in complete harmony and agreement. I was told this morning that this scheme had been examined by a number of competent people here of the Red Cross and the Imperial War Relief Fund, and they had satisfied themselves that it was a sound scheme, which would secure that anything entrusted to it would reach the famine area. So far as Dr. Nansen is concerned, he is entitled to say, and we are entitled to remember, that he has had experience of dealing with this matter in Russia, and that experience has shown conclusively that what he undertakes to carry out in that way he is able to carry out with success. His work in connection with prisoners from Russia included the equipment of some 60,000 prisoners, and was carried out without any loss whatsoever in Russia. The proposal that he brought before, or was anxious to bring before, the Governments of Europe, was that credits should be allowed to enable food to be bought and sent into these districts sufficient to prevent starvation of the multitudes, and to enable them to cultivate their ground, so that there should not be a repetition of the famine next year. That was the broad proposal. He wanted £5,000,000 to begin with. He thought the whole thing might cost £10,000,000, I think, and I see an American estimate is the same. I do not think that £5,000,000 or£10,000,000 distributed among the poorest of Europe would have been a very gigantic payment to avert so grave a catastrophe, even on economic grounds.

I want to deal with this question of the credit. I quite agree that no undertaking given by the Bolshevik Government would be regarded as worth very much, from a purely commercial point of view. I concede that. I think, probably, if it were countersigned by Dr. Nansen, the great probability is that it would be carried out, but I quite admit that, from a purely business point of view, a great deal of doubt might well exist. I understand the suggestion made is this: They say, "Well, we might consider this if the Russian Government would acknowledge its previous debts." Would that make it any safer? Your thesis is that the Russian Government cannot be trusted; that if you give them the money, even under the most express undertaking to repay, even with such security as they can afford from land, oil, and so on, you cannot trust them, because you do not believe what they say. That is a position quite reasonable to adopt, but how do you make it any better by getting an acknowledgment of a previous debt? If these people are absolutely untrustworthy, are you in any better position because, under pressure of a great famine, they say they will do something you ask them to do? That does not appear to me to advance matters.

Then there is the argument which, I recognise, and I suppose we all recognise, is at the bottom of a great deal. I want to state it as fairly as I can. They say, "You must not do this. By doing it you will bolster up Bolshevism." There are some people who, merely because they hate Bolshevism, think it is well worth while to kill 10,000,000 or 20,000,000 Russian peasants, who are violently anti-Bolshevik, in order to destroy the Bolshevik Government. I do not at all suggest that that is the view of a large number of people who make use of this argument. Their contentions are much more elaborate and defensible. They say that the fundamental cause of all this trouble is the Bolshevik Government, and that if it had not been there, this famine would not have taken place, or, if it had taken place by the operations of the forces of nature, you would have had a Government which would have been able to restore matters by removing food from one part of the country to the other. There is some force in that. I think it is quite true that the Bolshevik Government is a bad Government administratively, quite apart from its moral obliquity. I quite agree with that, but I do not think there is any evidence worthy of the name that the sole, or even the main, cause of this famine is the Bolshevik Government. If it were true that the Bolshevik Government were the cause of the non-productivity of the Volga Valley, the same result would appear in all parts of Russia; but I do not think it will be denied that in other parts of Russia not visited by drought the harvest is above the average. It would be a strange fact that the Bolshevik Government should smite the Volga Valley with sterility, while the other parts of Russia should have good harvests. I quite admit there is a great deal in the argument as to the difficulty of transport, but, even allowing for that, I doubt whether any Government we have ever seen in Russia was quite free from criticism in that respect. I remember, when I was first at the Foreign Office, there Were neighbouring provinces in Russia where in one case there was great scarcity and in the other the corn was so abundant that it had spread into unsuitable receptacles and was rotting, and yet the Government were unable to remove the corn from the province where it was abundant to a famine-stricken province, because of its gross inefficiency.

Let us put all that aside. Do you really think that you are going the right way to destroy Bolshevism by starving the peasants? Is that a sensible thing to do? Is that the argument of patriots! To some men you have only to mention the word "Bolshevism" and instantly they resign all their reasoning faculties. I believe Bolshevism is a crime. I also believe it is the grossest blunder, and have always believed it. It is a stupid plan. The more we know of it the more we shall dislike it. But the thing that will give it strength in this country is the unreasoning terror which is displayed about it by some people. I am sure that we shall do much better in the matter to go back to the older system, and not to be afraid in this country of meeting any fear, however fantastic, boldly and openly. Bolshevism is a great evil. Be it so. A great part of the suffering that these unhappy people will endure, they will endure from the Bolshevists. I concede that; but there are those who hate Bolshevism, and it is the anti-Bolshevists that we are in the main proposing to help. Let me say this: That we have got to look at this matter, for the moment at any rate, as a purely economic proposition. Does it suit us or does it not suit us to allow this famine to go on? If it suits as well I agree that that part of my argument is gone; but if there is anything in what I have urged, and if it is really a serious economic danger to allow it to go on, why should we allow it to go on, and why should we not do what is proposed by some of us, even if it only be in a measure a palliative, if by doing so we shall in fact be repair- ing the evils of Bolshevism or repairing the evils of the drought? I cannot think that any of these arguments are really worth a moment's consideration in the face of such a calamity.

There is one thing, and one thing which I quite admit we have to face in this matter. It may well be said that we are in such a position financially that we simply cannot afford it—that we cannot find our share to avert this calamity. It may be so. [HON. MEMBER: "It will not avert it!"] It will avert it. There is no doubt about that. My hon. Friend does not agree, but he must take my argument as it stands. It will avert it, or would have done if the matter had not been allowed to tarry for two months; it will diminish it very seriously. Are we really going to say quite definitely that though this is a great economic evil, though it is going to cause a geat deal of difficulty to us in the future, though it will prolong unemployment if we allow this famine to take place, yet we are in such difficulties now that we simply cannot afford one, two, or it may be three or four millions as our share in this matter. I cannot think we have quite got into such difficulties as that. I should like to put this suggestion forward. I believe we have re-voted this year £4,000,000 for the relief of Poland and Austria. I am told—and the Government will correct me if I am wrong—that it is not in fact intended to apply that £4,000,000 for the relief of Poland and Austria. If that is so, there is money actually voted, and it may be, I suppose, transferred, if the House thinks fit. I am convinced that if the representatives of this country at Geneva had been able to do something of this sort—and I am convinced they did desire to do it—to have gone to the Assembly of the League of Nations and to have said: The British Government have considered this terrible calamity, and are prepared to advance one or two millions, provided other sums and the necessary money got elsewhere—I say I am sure if they had given to Dr. Nansen, a man of marvellous energy and vigour, that measure with which to negotiate with other Governments, I believe the position would have been saved. Unfortunately by the instructions that were sent from home we were precluded from making any statement of the kind.

I should be deceiving the House if I were to leave hon. Members under the impression that though I have so argued in this Debate, I am arguing in this way on purely economic grounds. I do not pretend that I am only moved by economic considerations. I believe in this matter humanity is the best policy. I believe that we have got to recognise fundamentally and constantly that the prosperity of this country depends upon the prosperity of other countries. There is not only the moral claim that we should go to the assistance of these people, but it is in our best interests to do so. In the event it will be found that, going plainly and straightforwardly on the kind of grounds on which any of us in our private capacity undoubtedly would go, that that will turn out to be the safest, the soundest, and the most worthy course that we can pursue.

The Noble Lord, having come here directly from the cosmopolitan company at Geneva, where he was so distinguished and active a figure, has, I think, forgotten for the moment that he is no longer on the shores of Lake Leman but on the green benches of the British House of Commons. His argument, first of all, was that we might have prevented the Russian famine which, I think, obviously is not the case, and next that we did not take such steps as we might have taken. Well, formerly one used to say— dolus latet in generalibus , to which I would add on my own account dolus patet in particularibus . I believe that the Noble Lord in his heart agrees with me, for he kept off all the particular points relating to the matter before the House, and although he said he deprecated generalities, the whole of his speech, I think, dealt with them, and with generalities also which do not concern us in this House. The Noble Lord says he does not think a possible reduction of the cost of production, though an important factor, is really the chief factor in the consideration of trade, and of bartering, and buying, and selling, which he himself admitted is the chief necessity of the situation and of the restoration of trade in this country. If we are not to reduce the cost of production we cannot recover our trade. The whole point of the present position is that the goods we produce are produced at such a cost that though people may admire them they pass them by and say, "We have not in these days money to buy those goods." Therefore I accuse the Noble Lord of saying with one breath that which he denies in another when he says that a reduction in the cost of production is not the chief need of the present moment, but that a resumption of trade is the chief need. These two propositions are mutually destructive, and I leave the Noble Lord on the horns of that dilemma.

He says that Governments did not realise that the real difficulty after the War was going to be of an economic character. He arraigned Poland. I thought Poland was the spoilt child of the League of Nations. It is a spoilt child, I am quite sure, whoever is its father. There is danger and difficulty in Europe. There was Albania which was causing trouble, and apparently Albania and Poland, although I do not quite understand how, were seriously affecting employment in England. I think that statement would take more proof than the Noble Lord has given in that portion of his argument which was devoted to that aspect of the case. How does it affect us here? Very indirectly I think, so indirectly as not really or actually to be relevant to the subject before us to-day, in which foreign nations only come under consideration in so far as their circumstances immediately affect the unemployment from which we are suffering.

The Noble Lord dealt particularly with Russia. He dwelt upon the vast potentialities of that extensive empire. But why only potentialities? Why, under the good government of the Emperors of Russia. [HON. MEMBERS: "Oh, oh!"] Hon. Members who accept the writings of sensational journalists and interested novelists no doubt think that the knout is still used in Russia, whereas it is as obsolete as some of the instruments of torture in the Tower. They do not know these things. Hon. Members talk about their recent visits to Russia and their consultations with those in authority. They speak about consultations. In what language did they carry on these consultations? However, I must not be led away from what I want to say. Let me go back to the Noble Lord who spoke of Russia as a country of potentialities. But she was one of our greatest assets in trade. Under the Emperors Russia was an actuality not a potentiality. Then he got into his stride, and in eloquent and moving terms, referring to the present famine, said it was believed there were great surplus stocks in Russia. An hon. Member the other night said the same thing. Is that very likely in a country where the people are starving? Is it likely there are surplus stocks?

The Noble Lord said the famine was most severe in the Volga district, but the Volga is a river that runs thousands of miles and goes through a vast inland district. In the hinterland—perhaps I had better not call it that, but say the vast interior—the transport, which is the absolute crux of the whole situation, has broken down. I do not believe the steamers which used to go up and down the Volga are at present working. If they are they would be totally inadequate to carry the vast quantities of grain which would be required for this purpose. I find on all sides, and in the mind of the Noble Lord also, a disposition to think that because famines are successfully dealt with and prevented in India they can be prevented in Russia. There is absolutely no resemblance. The conditions are contrasted. In India, first of all, the people are our own subjects, and they live under a very good Government, the Government of the Indian Civil Service. When they suffer from famine, being people who require very little clothing and a small quantity of vegetarian food which grows all around them, they can be kept in health and strength until better times come at a cost of a few pence a day. The Russian peasant, however, who is accustomed to his admirable soups, some of the very best in the world, every day of his life, requires as much to feed him as a Member of the British House of Commons, and more. The whole problem is one of contrast. I cannot understand why the Noble Lord should come here and say that we ought to have stopped this famine, without considering first of all that it was impossible for us to have stopped it, and, secondly, that if we had any spare money it would have all been due to our own people in these desperate times. I can only explain it by the fact that he has come here clothed in the cosmopolitan atmosphere of Geneva, and has forgotten that he is speaking as a Member of Parliament in a nation the pockets of every single member of which are almost empty, as the Prime Minister admitted last night. It is desperately sad that people should die of famine in Russia. Surely I must regret it as much as the Noble Lord, having lived in Russia, being fond of the people, and having many friends among them. Knowing their language and literature, and the people, I deplore it to the last degree, but I am a Member for Nottingham, and I have to think of the people of Nottingham.

To any body who knows anything about famine. Dr. Nansen's scheme of £5,000,000 was an absolutely trivial and absurd suggestion. £5,000,000 would be used up in five minutes. It is nothing whatever. I know something about famine, and I have seen the amount of corn required to feed people in millions. You cannot get the grain to them. I know what would happen to the grain; it would go to support the concentrated populations in the immediate vicinity of Lenin and Trotsky, and would confirm them on their bloody throne. An hon. Member last night said that the British blockade—which kept the grain in the country—had accentuated the famine conditions in Russia! Really, there is nothing that is not said here concerning Russia and the famine. The Noble Lord said he could not understand how, if the crops failed in the Volga and were good elsewhere, it could be said that the conditions in the famine-stricken area were due to the wickedness of the Bolshevik Government. Surely that is quite simple. If you have tyranny imposed upon famine conditions it produces a state of affairs in which, while the whole country groans under the tyranny, that portion which has suffered from two successive failures of crops groans most. Then the Noble Lord said that the prosperity of this country depends upon the prosperity of other countries. As a general proposition, I would admit that any one country in the world is more prosperous when other countries are more prosperous, but when you come to reduce this to a particular proposition, and suggest that the British taxpayer can feed the whole world, then I part company with the Noble Lord. I do not believe, in spite of the way in which the subject has been treated, that it is altogether relevant to make a special subject of the famine in Russia. It is only relevant incidentally.

I wish to come to another subject, upon which the Noble Lord has not touched. Under this scheme it is proposed the Treasury can, with a view to the promotion of trade, guarantee payment of loans of an aggregate capital amount not exceeding £25,000,000, and the Prime Minister in his speech referred to a very serious need. There is no famine in India, thank God, but there is a terrible want of railway wagons and railway extensions, to which the Prime Minister referred. That shows how well posted and up to date he is in the Report of the Railway Commission, with which Indian railway directors like myself are particularly concerned. I do not quite understand, however, whether this means that the Government of India will be able to raise loans on the guarantee of the British Treasury for the extension of railways in India and for their sufficient and proper equipment with rolling stock. I do not know if some Minister is going to answer. If he would refer to that point he would resolve a doubt which others may share with me, and in which we are all directly or indirectly greatly interested. I suppose, also, that under this scheme a loan would be permissible for improving the navigation of the Trent between Newark and Nottingham, which is very badly needed. [HON. MEMBERS: "Oh, oh!"] If that is not a matter of imperial importance, I should say that the well-being of the Eastern Midlands is such a matter. It is a question of very great importance, and I should like to know if a loan would be available for such a project under this scheme. Possibly, money would be available under it for developing the Colony of Nyasaland, whence comes some of the best tobacco grown in any British Colony. I should like, also, to have that explained.

As regards the emigration scheme, I was sorry to note that it met with some disapproval on the Benches opposite. I speak with all respect of the opinion of hon. Gentlemen opposite, but I would say that if a man finds a difficulty in getting on in this country it is a very good thing to try another, particularly if it is one that belongs to the same firm. Young men from all the public schools and universities in England), many of them with the best prospects, deliberately and wisely choose to go to Greater Britain, where they have a freer, larger, and altogether finer career than is possible in this little island. Why shy at this portion of the scheme? Why deprecate the emigration of good men to good countries for the good of the mother country? I welcome this scheme, and I sincerely pray hon. Gentlemen opposite to think of it in that light and not to oppose it, as I gathered they do from the remarks that were made when the Prime Minister was speaking.

The hon. Gentleman who preceded the Noble Lord said, and he relied on it as if it was a matter of course in which everybody agreed—I do not think everybody does agree—that before the War large numbers of our people were habitually underfed and underpaid. What is being underpaid is, of course, a matter of very great difference of opinion. I never met anybody yet who thought he was sufficiently paid. What I particularly wish to refer to is the word "underfed." I hope, with all my heart, that that is not true, and until it is proved to be true I shall not believe it. It would be well if Members of Parliament when delivering speeches here or elsewhere would refrain from making a statement like that with regard to the richest country in the world. If people were underfed in England before the War, then the whole population of the world was underfed, and that is rather a large statement to make. I do not think it should be made until there is chapter and verse to support it.

I firmly believe, as the Prime Minister said, that the high cost of production is at present the greatest trouble under which we labour. It is the greatest prevention of the expansion of trade. A reduction in the nominal wages would not be a reduction in the real remuneration. Far from it. I believe that a lower wag paid in depreciated Bradburys would in itself lead to a fall in prices, and that working men and trade in general in the country would be much better for that change. The exchanges, of which we hear such complaints, are only a symptom and not a cause of the trouble. The Prime Minister referred to economies. I hope the Committee will really accept the economies which are recommended. As soon as anything concrete in the way of saving comes along somebody objects. There was a great official in Scotland the other day who said—and I believe he is still at large—that economy in education would be a crime. What can you do when a man like that, put in charge of public funds, exercises his influence upon the administration of the country? In Scotland, too. I hope, with all my heart, that the activities associated, rightly or wrongly, with the name of Sir George Newman will be entirely suspended or largely reduced, and that his immense staff of health officers, appointed by the right hon. Member for Shoreditch (Dr. Addison), upon his official deathbed, will now be reduced. I hope we shall really take steps, by means of economy, to relieve unemployment. That will do far more than all those palliatives, the necessity for which I deeply deplore, because I believe they are taking us further and further in the direction of Government interference, State socialism, and of all those evil systems, the folly and the falsity of which were proved once in the French Revolution, and again, ten-thousand fold, in the Russian Revolution, but which apparently still have their adherents in this unfortunate country.

The speech to which we have just listened affords one more illustration of the great danger of the present unfortunate crisis. The great trouble in Europe and the world is really the temper of mind which one can observe in all the countries that are affected. It exists in Russia and in Central Europe, and unhappily it has its representatives in this House. I know that the hon. Baronet the Member for East Nottingham (Sir J. D. Rees) has travelled very widely, and he has visited most of the countries of the world, but I confess that I have never heard a speech which indicated such a parochial outlook or such insular prejudice. It is this refusal to appreciate the true inwardness of the European and the world position which, I submit, is the great danger of the moment.

Yesterday the Prime Minister gave to the House a comprehensive survey of the national and the international position, and he told us that what we wanted in Europe and the world were peace and stability. I listened to all the Prime Minister had to say, but beyond a few palliative proposals which he mentioned, there was no attempt to get to the real root of the difficulty or to analyse its fundamental causes. We have argued again and again that we believe unemployment is inevitably bound up in the social system under which Europe is living. At the same time we recognise that that state of employment can be and is enormously aggravated by policies, and atmospheres which those policies create. Instead of trying to secure that stability, economic and political, about which the Prime Minister spoke so eloquently, I submit that we are continuing to give tacit assent to policies in Europe which are causing still further economic ruin and political chaos.

Again and again reference has been made, not so much in this Debate, but Certainly in this country and the other countries of Europe, to the unfortunate effects of certain economic clauses of the Peace Treaty. I wonder whether there is a single Member of the Cabinet at the present moment who would have the courage to get up to-day and defend the Treaty that was signed at Versailles with the knowledge of subsequent happening and the abundant confirmation of the accuracy of the criticisms directed against that Treaty. I certainly feel that no single Member of the present Government, or, indeed, any responsible person in Europe who knows the facts, would seek to defend those particular clauses. We know that before the ink of some of the signatories was dry one very distinguished soldier and publicist felt it necessary to declare that he had no faith in the Treaty at all. I think it would be difficult to find a responsible economist in Britain or in Europe who could defend, in the interests of any nation, and certainly not in the interests of all the nations, those economic conditions. We had no indication in the Prime Minister's speech that there was going to be any attempt on the part of our Government to seek a revision of those conditions which are creating so much of the trouble.

We want to be frank to-night. I want to speak about what I know is an exceedingly delicate matter; but we are bound to face it. We shall have to face it some day, and it is a matter in which I feel convinced that the public opinion of this country is much ahead of opinion as we have heard it in this House—I refer to the interpretation being put upon the Peace Treaty by our French Allies. We all know that France suffered terribly during the War. A great deal of her country was devastated, and she probably suffered greater blood loss than any of the nations involved, and we can, therefore, in a measure, understand that obsession of fear which appears to be animating French policy, and has animated it since the Versailles Treaty was signed. We can understand that, but, at the same time, if Continental hatred is imperilling the whole reconstruction of European life, it is time that those Governments who are strong enough to assert their position should do so.

What we feel is that yesterday our Prime Minister had a magnificent opportunity of showing to the whole world that we in Britain would refuse to be associated with a policy inspired by hatred, fear, and vindictiveness, not simply on the grounds of humanity, but because it was going to involve us in Britain in the general ruin which seemed to be coming upon the whole of Europe. No less than 2,000,000 men are walking the streets of our country because our markets in Europe have been destroyed, and yet in all the proposals made yesterday there was not even the extension of the system of credit that really will have the effect of doing anything towards securing a restoration and recovery of those markets. Those markets will never be rebuilt and the economic life of Europe will never be restored as long as certain conditions of the Peace Treaty are allowed to stand. I wish those in this House and the people in the country knew exactly what was happening in certain parts of the occupied area in Germany, because after all this has a very important bearing upon the problem of unemployment with which we are dealing. A number of hon. Members of this House have recently visited those parts, and I imagine they will be ready to confirm a good deal of what I want to say in regard to what is happening there. I will say at the outset that I found no hostility, no real ill will, existing between the German civil population and the British Army of Occupation. On the contrary, I found that British soldiers held very much saner views regarding the European problem than some of the views expressed in this House.

I wish it were possible to fill this House with members of the British Army of Occupation of the Rhine, and let them decide the question as to whether we are going to continue to be associated with the policy of our misguided French allies. You may go down to a place like the Saar Valley, and you will find some thousands of French troops there. I was under the impression that the Saar basin was under the control of the League of Nations, and that no French Force would be necessary there, but they are there. What are our French allies trying to do there? I submit that by a constant succession of needless and unnecessary irritations they are not only rendering impossible the stabilising of the economic life of that area, but they are creating a spirit and a temper amongst the native population which, if left unchecked, is bound to lead to another European war.

When I was there I talked to representatives of trade unions and to captains of industry and to men occupying various positions in public life. I also spoke to Englishmen familiar with the whole problem, and all were agreed as to the utter impossibility of confidence being restored in that area so long as this policy was allowed to continue. In the town of Saarbruck there are some large steel works normally employing about 10,000 men, but at present they are only employing about half that number. Hon. Members are aware of the terrible fluctuations of the German mark. The French in the Saar Valley are deliberately attempting to force French currency, so far as the payment of wages is concerned. You cannot buy even a railway ticket there unless you pay for it in French money, and you cannot buy even a postage stamp unless you pay for it in French money, and yet this area is supposed to be under the League of Nations. Now the French are trying to compel the owners of the steel works there to pay their employÉs in French francs. What would be the effect if they pay in French francs. They are expected to sell in marks. The result is that the continuance of the industry is impossible except under one condition, which is that they must export the whole of their products to France. If they do that, which is apparently desired, the effect is going to be a still further injury to the economic life of France herself.

I was informed that at the present moment only 34 out of 200 blast furnaces in France are in operation. I was also told that out of 68 blast furnaces in Alsace Lorraine only 18 were in operation. If the German mark has to be still further inflated in this way in that area on account of this particular policy, the result is going to be even more chaotic By this means you are, not only causing the economic breaking up of that area and making it impossible to get anything like stable conditions, but it means what is much more dangerous, that is, the cultivation and development amongst the people in the Saar Valley and the whole of the Rhine province of a spirit that will certainly lead to a future outbreak of war. I could give countless examples of these needless and unnecessary irritations which our French Allies are persisting in—

On a point of Order. I wish to ask are we now discussing the remedies we propose to institute in order to deal with unemployment in this country, or are we discussing generally the political situation in Europe, and especially the relations between the German and French Governments?

The right hon. Baronet will remember that at the suggestion of the Leader of the House I agreed that these two days should be given the widest scope for discussion, covering the whole field of the causes of and the remedies for unemployment. It is not for me to say whether a particular speaker is really dealing with the causes, as long as I am convinced that he thinks he is doing so.

If I may be permitted to answer the question of the right hon. Baronet, I will say that I am trying to get at the fundamental cause of this problem. I submit that unless this Government and other Governments are prepared to tackle this matter at the root, no palliative proposals will be of any real service. The point from which I started was that the great danger to Europe was a temper of mind which, if permitted to continue, must produce disastrous results. The Minister for Health also referred to the psychological situation, and it was also touched upon by the Noble Lord the Member for Hitchin (Lord R Cecil). I submit that among the contributory elements which are making for this dangerous mentality in Germany, there is no element which is more menacing than the misguided policy as I believe it to be, of those who are at the present moment our Allies. I was speaking just now of a town where the French are to be found in large numbers. French soldiers are being encouraged to bring their wives and families and their relations to the remotest degree, with the result that certain towns in certain areas are being practically flooded by a French population. Is that form of thing likely to promote peace and concord and to secure those conditions under which alone the country can be prosperous? There are towns where the French have taken hundreds of houses and thousands of rooms. I know of one town where they have taken 2,500 furnished rooms and 800 unfurnished rooms, and have demanded another 1,500 rooms. They have also taken possession of 1,500 houses.

I will prove to the Noble Lord that there is a very definite connection between what is happening in these places and the subject we are discussing to-night.

Does the hon. Gentleman suggest that this Government is in a position to dictate to the French Government the terms under which they occupy the Rhine Provinces? If that is the hon. Member's object, let him say so.

I did suggest in the earlier part of my speech that it was necessary for this Government to publicly and definitely dissociate itself from the way in which the French policy is being carried out.

If the French Government are unwilling to change their policy, and of course I think there are elements in France which desire a change, then those elements would be greatly encouraged by a pronouncement on the part of our Prime Minister, and if the French Government then refuse to change their policy I say there is no alternative but for us to break the Alliance. No one on these Benches desires to break it, but we have to recognise that there is extreme danger in the policy which France is pursuing to-day. Do hon. Members think it is likely to promote peace if you have a tremendous influx of the French population into Germany, an influx far greater than was ever intended under the terms of the Treaty? The whole point is that the French are not interpreting the Treaty correctly, and as a result you have German families, 5,000 in number, suffering acutely in health through being unable to secure adequate housing accommodation, because of the demand of the French people who have just recently come into their area. Finally, I want to say this, that in the opinion of those who sit on this side of the House, the problem of unemployment in our country will never be adequately dealt with unless we are prepared to dissociate ourselves from any policy, either French or any other, which tends in any way whatever to promote the war spirit and the war mind. We agree most emphatically with what the Prime Minister said as to the desirability of securing peace and stability in our own country as well as in Europe generally and the whole world. Unfortunately, we find nothing but an atmosphere of suspicion and distrust everywhere, not simply between nation and nation, but unhappily between class and class. We are wanting to remove that distrust, we are wanting to remove that suspicion, because until that suspicion and that distrust can be removed, you will never get real confidence created either in our own country or throughout Europe. We want to drop this hateful business and to take a wider and longer view, and until we do so there will be no chance of solving our own very serious and very real difficulties.

I have been very much interested in the Debate during the last hour or two, although sometimes it has struck me, as a layman rather than as a politician, that the speakers have travelled rather far a field, and I might have better enjoyed such a discussion at the Aberdare Debating Society than here. Instead of coming down to the real facts my hon. Friends opposite have ignored their responsibility for the crowds who to-day find themselves unemployed and who, if not starving, are at any rate undergoing dire hardships. Everyone, I take it, is anxious to try and put an end to that state of affairs, but, judging from the speeches we have heard, there has been an attempt in this Debate to score one against another and to play the game of politics instead of finding means to put a restriction on this period of trouble. What is happening? We discovered after the Great War, the greatest war the world has ever known, that we, like other countries, are suffering. Fortunately, thanks to our great traditions, we were able to win through very much better than most other countries, but, despite that, trouble came and I would like to ask my hon. Friends opposite whether they have done everything they should have done to help to prevent the trouble which has come upon us.

They will pardon me, I am sure, for declaring my mind. They have spoken their mind pretty freely and any one who, regardless of his past reputation, has dared to differ with them is declared at once to be a renegade. I have always been a fighter for the worker. I have been a miner's leader. I have in days gone by been called a big rebel, but a period came when my views changed and made me feel something less than a hot-air artist. I think the Prime Minister's speech yesterday was excellent, although I would have been glad if there had been a bit more of the bull-dog in it. The right hon. Gentleman did not quite sufficiently differentiate between the men who fought for their country and who are now un- employed as well as those who worked willingly at home to help us to win it, and the bounders who refused, not only to fight, but tried to betray their own flesh and blood in the trenches. [An HON. MEMBER: "And went to prison for their convictions!"] No doubt some did go to prison. I do not want to say no man can have a conscientious objection, but I do suggest that those who conscientiously objected to fighting for their country might at any rate have gone out of the country to other countries which they suggested were a standing example to our country.

Let those who pretend that they are anxious to put an end to this sort of trouble forget for one moment their party politics. Let them remember what the Government is trying to do to-day; let them remember, too, that should Labour at some time be in a position to take hold of the reins of Government they, too, will look for assistance and co-operation from all right-minded Britishers to help them in their hour of trouble—not to sneer at them or jeer at them or to decry them, but to help them. A cry has gone out in regard to Russia. Is there any man or woman in any part of the world who does not deplore the terrible position in that country? Is there a man or woman in his or her right mind who cannot say practically where the real fault lies? I am ashamed to have to admit some hon. Members of this House have openly advocated on public platforms for the undoing of this country that which has been the undoing of Russia. There have been deputations—some composed of hon. Members—which have visited Russia. They may not have been responsible, but it was a piece of packed business, for they had no real chance of getting down to the real inner condition of things in Russia. Yet hon. Gentlemen continue to makes speeches at week-ends in which they say everything they possibly can to belittle their own country. They tried to discourage those who went out to fight for us in the War. They tried to starve them out in the matter of munitions, and these same people are now declaiming on the necessity of saving the millions of starving people in Russia. I would rather think of those we have to look after at home. I do not suggest there is anyone who is starving in this country, but there are hundreds and thousands of people who are suffering unduly, and not through the fault of this Government. The Government has been trying to mend matters, and, with reasonable and sane co-operation on the part of the Labour party, it could have done much, but we have not had that co-operation. There are men on those benches whom I have known for many years, men for whom I have every regard, men whose opinions were sound and solid in the old days, men who charged me years ago with being a rebel. I suppose as wine matures with age, so men with whiskers also mature, but not always. They have discovered that I have become a sweet reasoning creature, supporting this weak Government, whereas they have advanced and are now out for Leninism, Trotskyism, and also the other confounded "isms" which are bringing so much trouble on this world.

I am ashamed to think that men old enough to know better, men who have managed to get into a position which should have been creditable to them, have really helped by their apathy to betray the trust that has been imposed upon them, Down in Wales to-day there are thousands of men suffering through no fault of their own—men loyal to their-federation, men who have paid their trade union contributions, and who are, I believe, all British. Their sons fought in the War, and they also, many of them, fought in the War, and they are now unemployed. These people have discovered that they have been let down by the federation by a policy—who started it, Heaven knows—of the Lenin and Trotsky order. At one time I was a believer in the nationalisation of the mines; I thought that the mineral wealth of this country belonged to the people of this country, and should be worked for their benefit. That has not been tried. The thing that has been tried has been entirely different. But before we had Government control we had some of our friends shouting, "The mines for the miners," "The railways for the railwaymen," and so on. These teachings have been going on, and now they have been stampeded, and they turn round and shout the tune that the man in the back of the crowd yells at them. That is the real cause of Labour's trouble. When Labour really begins to prepare itself for the important position for which its ambitions lead it to hope, when they really think that some day they will be able to sit on the Government Benches and rule this Empire, they will take a more serious view than they have taken yet.

Down in Wales to-day there are thousands of men who are meeting and reasoning with their employers. They are now in a reasoning frame of mind. They say that if the collieries are started they are prepared to do their best; they are prepared to do an honest day's work, to fill their coal clean, and they hope there will be a chance of working under those conditions. Even the employers are not in all cases people who pile up millions. Even the Powell Duffryn, a crowd that I have fought in the old days and said spiteful things about, were many years before they were able to make things pay. Thousands of people lost their money, and some lost a great deal. Since that the Powell Duffryn and other big concerns have paid, and the men also have, for many years at any rate, been able to make a substantial livelihood out of it. There is still a chance if things are directed in the right way, if Labour will be true to itself, and if Labour leaders will realise that there has got to be more than one party in any arrangement. If they still cling to ideas of nationalisation of mines, shipping, and so on, very well, let them do so. There may come a time when the people of this country, and when they also, are wiser, and when that may be possible. In the meantime it is their duty to do the best they can for the people they represent, and they have a double way of doing it. They can advise their men, as leaders, in the coal mines or wherever they may be, while here they represent their people both as their leaders and as Members of the British House of Commons.

I do not take a parochial view of this. No man merely represents Aberdare, Merthyr Tydvil, Nottingham, or any other constituency; you hold a brief for the Empire, at which those on the Labour Benches are too ready to sneer, although some of them may have been out on a short visit and may, perhaps, have chatted with a Colonial Prime Minister. We have read in the papers that, unfortunately, this disease has spread out there. You have the same sort of thing. I do not know whether you call it Bolshevism, but I had a talk with Mr. Hughes on one occasion, and he told me how things then were out there. It is like a disease in potatoes, and it is spread- ing, I suppose. Everyone in this House who is really British, and who believes in the best efforts for his country, and his Empire, will certainly try and help at this moment—will not play political stunts, but try and work to bring about the one great thing desirable. I am not versed in high finance, and I dare say money is hard to get, but I was disappointed at the Prime Minister's offer of £25,000,000. I did think we might have gone another £25,000,000 for a purpose of this kind. I would like to give preferential treatment, first of all, to the man who went out and left his wife and children and fought and risked everything. He was out there for small money, risking everything for you and me, and he came back to discover that he was locked out. Secondly, I would like to give preferential treatment to those men Who rendered useful service in any capacity in this country, whether as miners, railwaymen, or in any other capacity—who worked and did not strike during that period, but helped in the best way they could. Surely, if that was good then, it is good now. When I heard last evening the anxiety expressed by certain people on the other side, who asked, "Is this how you are going to treat the man who went out to fight for you, when you said you were going to make this country a country fit for heroes to live in?" I wondered where their anxiety sprang from. I remember so well that during the War some of these people did all they could to stop those men from going to fight, and when they did go, did all they could to belittle them by declaring that they were hired assassins and people of low intellect—

The hon. Member is now getting a little too far away from the subject of the Debate.

Perhaps I am. I suppose, however, that that is a mistake that lots of people are liable to make, and I am sorry if I have drifted too far. I think we ought to confine ourselves strictly to the one thing. The scheme of the Government may not be all that some of us would like to see, but I suppose it is the best they can do, and if it should not be as good as others in the House happen to know of, why on earth do they not tell us? I have heard any amount of criticism, but have noticed an absolute lack of initiative by way of suggesting remedies. Of course, you can have im- possible remedies, but no sane, sound policy has been advocated from the Labour Benches as a cure and as something that will help the unemployed. I suggest that we have to endeavour to get down to that, and if the Government's proposition is not good enough, speakers from the Labour Benches or any other part of the House should get up and tell us what we ought to do. I am not chained to the Government; I should be free to vote, as I think I ought, for the people who are unemployed, and for the best thing that will mean so much to our country in the future. Political humbug should be placed on one side. Trying to score off responsible Ministers is one thing, but should the Labour party get into a position of power, I hope they will have learned the lesson and will have come to realise that there is a time when you look for co-operation, when you look, in this country at any rate, for people to be British, and to realise that they represent not merely these islands, but a great Empire which has immense possibilities for labour and wealth and profit to those who are healthy in their intentions for the future.

I crave the indulgence of the House while I venture to address it for the first time upon a most intricate and distressing subject. The problem before us is the problem of unemployment, and I will venture to approach the subject from a point of view which appears to me to have been somewhat overlooked, namely, the point of view of the local authorities. I come from the same part of the country as the previous speaker, and in our part of the country at the moment a vision is presented to us such as no one has ever seen in connection with the coal trade during the present generation. I do not desire to appear to be purely parochial in my point of view, but I should like to draw the attention of the House to this question of the situation in South Wales, not implying in the least degree that it is special to South Wales only, but that it is probably indicative of the condition of industrial areas throughout the country. We have at this moment in most of our more populous areas long queues of men—healthy, active, vigorous, hungry men—willing to work, waiting for work that never comes. Who are those men? They are for the most part men who probably, in the course of the last few years, took a point of view concerning national politics with which I personally was not able to agree; but that is not in the slightest degree any reason why I should ignore their claims upon me. These men have been locked out for four months, and what has happened? The Poor Law guardians throughout South Wales have had to provide for these men relief from the public rates. So much was needed that they have had to go to their bankers and secure overdrafts, on the promise that they would repay this money within a given time. They have relieved, not only the aged poor, but also young men and married people. Moreover, the Education authorities, similarly, have had to undertake the feeding of school children, and I think I am speaking quite accurately when I say that in the County of Glamorgan, of which I happen to be a Member, they have provided during that period well over 1,000,000 meals for school children.

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All this has produced certain results. You cannot feed people for nothing; you cannot relieve people for nothing. The obvious consequence, therefore, is that the rates in these local government areas are now at an appalling figure. To bring that point clearly home to the House I want to point out that, in the area of the district council over which I have the honour to preside, there are now two rates becoming due. There is the ordinary half-yearly rate due at the end of September, and there is also a supplementary rate which is being called for at the same time. From whom are these rates being called for? They are being called for from practically all the people who live within the district council area where I live; that is to say, they are being called for from the workers as a whole. The people who have to pay these rates may be placed within something like five categories. First, there are those who received relief during the lock-out and are now at work. There are, secondly, those who received relief but are not now at work. Thirdly, there are those who did not receive relief but are now at work, and though they are at work they have accumulated such immense debts during that period of unemployment that they simply cannot have any extra burden placed upon them through the medium of extra or supplementary rates. Fourthly, there are those who did not have relief but still have to pay the ordinary and the supplementary rates. Lastly, I have to mention a class of people who, I frankly confess, deserve and receive my fullest sympathy, namely, that class of small traders who during this period of crisis allowed their customers to heap up heavy debts, and because of the heavy debts which accrued to them are unable also to face these heavy impositions from the rates.

None of these categories of people, therefore, are in a position to meet these obligations. In my own area, to give a concrete example, this is the position: In one parish, in the year 1914, the rates were 11s. in the £. In 1921 they were 21s. 8d., and by the end of March, 1922, the rates called for will be 30s. 8d. in the £. Unless something is done very quickly we are rapidly approaching the collapse of local government machinery, and I am quite sure there is no one in this House who can face that eventuality with anything like equanimity. We are, therefore, obliged to examine the proposals which the Prime Minister placed before the House yesterday with very meticulous care. What does the Government propose? I have done my best to understand these proposals. I speak subject to correction, but, as I understand them, there is nothing proposed by the Prime Minister, as far as local authorities are concerned, over and above further loans, perhaps on better terms than previously. Suppose one of these local authorities in a mining area sets out to obtain a loan. What sort of chance has an authority, already overburdened up to the hilt, as it were, with these heavy rates, to obtain a loan as compared with huge corporations like Manchester and Liverpool, which have all their wealth at their backs? We stand no sort of chance whatever. We shall not get our loans, and because we do not get them we shall be left precisely where we were at the beginning, before the announcement was made.

Let me make a further point. As I understand the Prime Minister's proposal, the £10,000,000 that be spoke of is to be devoted to three purposes—roads, drainage and forestry. There are many local authorities in South Wales which have already completed as many roads as they are likely to want for the next generation. There are no local authorities to my knowledge in South Wales who are very much troubled with shortage of drainage. They are probably drained too much, for we cannot keep the water we get. It is certainly true that there are vast tracts of common land in South Wales where a big scheme of afforestation will be very useful, but we are having the very greatest possible difficulty in re-securing control of the common land that once belonged to us, and we in the Labour party would welcome any proposal from the Prime Minister, who once believed in this principle, which would bring back to the control of the common people the land that once belonged to them. The conclusion we are bound to arrive at, therefore, is that the Prime Minister's proposals as foreshadowed yesterday will be of very little help so far as loans are concerned. I, in common with my hon. Friend the Member for Pontypool (Mr. Griffiths) and other Members from South Wales, one day this week met representatives of local authorities from Glamorganshire and Monmouthshire, and I speak with their knowledge and in some measure at their instigation when we demand that the Government shall put on one side any thought that these loans are going to meet our requirements. What we ask the Government to do is to give us a grant without regard to payment of loan or interest. Without a grant, the next alternative we suggest is that the Public Works Loans Commissioners should enable local authorities to get adequate subventions from them at a very much lower rate of interest. By way of illustrating my point, a sewerage board of which I am a member, which is going to expend something like £750,000, is even now making frantic efforts to secure a loan at the rate of 7½ per cent. It is going to plunge the whole of the teeming valley from which I come into absolute bankruptcy if it is to carry on as it is now doing. We therefore beg of the Government in all earnestness, if they desire to mitigate this problem of unemployment in our neighbourhood, to make it possible for us to get access to funds which will enable us to put into operation useful work to keep these men employed in these dark days. We also desire the Government—I am sure the local authorities in South Wales are at one in this matter—to have regard to the fact that unemployment is not a local problem. It is essentially a national problem. It is unjust, it is unfair to foist this problem upon shoulders which are already very much overburdened.

May I now pass to another point which has relation to the subject with, which I am now dealing. As I understand it, the Prime Minister yesterday spoke of allowing the £25,000,000 which is to be devoted to trade facilities to be controlled and disbursed by certain high authorities in the financial and industrial world. We who belong to local authorities are a little sceptical, and with some measure of propriety, as to how these various high authorities will treat us as local authorities. We very frequently find that these high financial authorities are very hostile to the activities of local authorities. If, therefore, this £25,000,000 is to be controlled by high financial authorities interested in private enterprise at the expense of municipal enterprise, we might easily find that municipal enterprise will be starved and private enterprise will receive a special bounty. In order to safeguard that, I should like to make the plea to the Prime Minister that municipal authorities should have adequate representation upon, this Committee which is going to control the £25,000,000, and when I speak of municipal enterprise being represented I mean that it should be represented by people who believe in municipal enterprise and not merely believe in starving it.

The next point I should like to make is this. It is true I am not an ex-service man, but I had the support of many hundreds of ex-service men in the course of my recent election to this House. It is a matter that gives me the greatest pride, because, after all, I am not unmindful of the fact that for five years I differed from them in regard to national policy. I am sure they will require me to say they will be very disappointed indeed at the proposal of the Prime Minister yesterday for the emigration of ex-service men. They have been taught to dream of a new Jerusalem. They had not anticipated, I feel sure, that this new Jerusalem for them was to be founded on the prairies of Canada or in the bush of Australia. Neither do they desire that the new Jerusalem shall be pitched across the waters in order to make it more easy for the representatives of the old Jerusalem to remain unchallenged and unchallenge- able in Lombard Street. One of the most wonderful speeches that has fallen from the Prime Minister ended upon this note. He said he desired to make poverty, slum-dom and like diseases as rare, or as absent, as the wolves that once infested our forests. We, too, on these Benches do not take second place to anyone in our desire to see that eventuality, but I cannot help reminding the House that there are wolves now that worry our working class which are far more insistent than the wolves of old. The wolf of poverty and unemployment is now at the people's doors. When they reach their homes, after wearily wandering the public streets at eventide, they seem to hear them. I feel sure that, having closed their door upon their misery, as they thought, to be alone with it at their own fireside, they seem to hear the clawing of these wolves at their very doors. Sometimes they are on their very hearths. I appeal to the Government to do something, and that speedily, to bring some comfort, some contentment to the homes of the common people, that they may feel once more proud of their native land.

The speech to which we have just listened has been very interesting, and one cannot but congratulate the hon. Member on making a valuable contribution to our Debates. When we come to the matter contained in his speech, I find myself rather inclined to become more emphatic in the reflections that I have recently made in a tour through Central Europe, that with regard to appeals for more and more governmental interference, and more and more governmental dealings with trade, there is a profound danger. Anyone going through Central Europe will admit it is through too much governmental experiments that a good many of the restrictions on trade arise. Therefore, one cannot but feel some apprehension about the emphasis laid upon the need for governmental schemes dealing with the situation with which we are faced, and arising from that the anxiety we feel with regard to expenditure which is necessarily going to follow and which cannot but increase the burden which industry is at present obliged to bear. Throughout Central Europe one finds the restrictions such that they are producing difficulties which hamper trade and which are impeding our taking advantage of markets which we in this country might have.

In the course of the Debate up to now we have been inclined to forget the root cause of unemployment. While the cost of production has a very important bearing upon this, and while it is fortunate that the Prime Minister in his speech dealt with it, we cannot be unmindful of the fact that the difference in the cost of production at the present moment between the different countries of so widely different a standard of living are such that they produce great difficulties in adjustment. I mean to say, that the differences between them are so wide that it is unlikely that they can be put right so that we can find a short cut through all these difficulties.

The Government's proposals seem to me to justify a review of wider questions, which may be concentrated into three main problems. The first may be said to be the burden of the Allied debts. We heard yesterday a most interesting speech from the hon. Member for the Isle of Ely (Captain Coote), who recommended a commencement being made on this head in the cancellation of debts between this country and our colonies. It was a very interesting suggestion, but the hon. Member should have gone much wider and have recommended the cancellation of interest for a prolonged period of years on all the inter-Allied war debts. That is certainly a necessary precedent in the commencement of a re-adjustment of exchanges.

There is also the question of payment under the German reparations, and one cannot but admire the pluck of the hon. Member for the Isle of Ely in raising this question, which is inclined to bring a considerable amount of odium upon the people who raise it. It is no use fooling ourselves into the belief that these reparations can be paid without causing us great distress in this country, at the expense of great unemployment. The measure in which our proposals should be revised is something that will require a much longer time than I have at my disposal this evening, but I do feel very deeply on this question. Anyone who has been recently through Central Europe must realise the intense industrial activity there, and must know, if he has the ability to inquire into the matter, how cheaply goods can be produced there, and must view with alarm the effect upon our industries of insistence upon payment of too large a volume of reparation. Unquestionably, the result of insisting upon the payment of too large a volume would be to stimulate very largely the productivity of Germany.

These two precedents—the cancellation of inter-Allied debt and the remission in some form of our proposals in regard to German reparation payment—if dealt with internationally, would contribute more than anything else to ameliorate the unemployment question in this country. In recommending the postponement of some of the demands for reparation, while we see difficulties in the immediate payment by Germany of her indebtedness we by no means indicate thereby any weakening of our conviction that, in so far as obligations for payment in some form can be, they should be imposed in some way such as by long term bonds, which would become negotiable, and the more widely distributed the more likely would Germany be to be compelled to honour her obligations. But whatever way it is done we want to remember that the immediate effect of a large volume of immediate payment is to imperil our own industry. Those are two broad principles which seem to me to affect the unemployment question.

There is a third, which is perhaps more controversial. In dealing with it one has to differ with those who sit on the Benches to my right. I refer to trade union restrictions. Industries in this country at present are hampered by limitations imposed by those who believe, often, that their removal would impair the advantages conferred by trade unions, but dealing with industry as a whole—I do not wish to take up the time of the House with details as to any particular industry—there is no doubt that the highly-developed industrial organisation, which has received an impetus through the War, is often inclined to swing in the direction of insisting upon limitations of various kinds which must inevitably increase the cost of production. It is along those lines that the matter should receive the consideration of leaders of industry in this country, so that they might, while they themselves often realise the difficulties imposed by these Regulations, impress upon their followers the need for a remission of some of these restrictions, and while asking for this revision of restriction we should make a similar call upon employers to revise their methods, and, so far as possible, improve them and obtain greater economies.

The Prime Minister's speech dealt very clearly with export credits. There cannot but be a feeling of gratification among the commercial community as a whole at the fact that the facilities which have in a modified form been offered for some 18 months, have now for the first time been given that broad basis which alone, I believe, will make it possible to use them. But while welcoming these increased facilities, it is well to realise that there will not be from this source any very great accession of business. It is rather late in the day now to look for a stimulation of export trade by this means. Had these concessions been made some fourteen months ago, there would have been greater hope, but there is this satisfactory feature, that a distinction is drawn in the case of what may be called short term credits, which are a convenient form of what may be called consumable products. These credits are limited to 12 months and, it is hoped, will be confined to bills drawn at short dates, as this is the utmost time that is needed, because to give longer credits for consumable products of this nature is only to invite purchasers in the importing country to get into financial difficulties by importing commodities on a credit basis, and selling there for currency, when that currency is subject to a progressive decline in value, so that when the moment arrives ultimately when they have to meet the bills they find themselves without the goods, and with their volume of currency substantially decreased. Therefore, I congratulate the Government on not having been induced to grant limits longer than those which are now outlined.

But it is with regard to the second class of transactions, for which long-term credits are to be given, that I feel much more hopeful. As one who has given a great deal of time to the consideration of this question, I am convinced that it is along these lines that we shall get the greatest benefit from these proposals Take a concrete case. One can imagine, say, a sugar factory in Ozecho-Slovakia. There may be a body of people there who are eminently trust- worthy and commercially enterprising, but they lack the capital. By securing an order from those people on long-term credits, we are enabled to give employment here and to raise the money necessary to repay expenditure on wages, and the purchasers in Czecho-Slovakia are enabled to purchase from us what they need, thus stimulating the production of exportable products in those countries, while at the same time giving employment to the engineering trade of this country, which is most particularly in need of assistance. Along those lines I feel that the Prime Minister, in giving this long extension of export credits, is most particularly to be congratulated.

One of the great difficulties in the world at present is that, whereas previously we in this country when importing food drew our food westwards, at present, as a result of the collapse in Russia and the retarded production in Rumania and other countries, we are drawing our food supplies eastwards. We are drawing them from North and South America. If we stimulate production in Eastern Europe we shall be drawing from those countries which have a depreciated currency, and which can more readily pay the very products which we need, and if we begin to buy from them then and then alone can we be on a safe basis for selling to them. It is on those lines that the greatest emphasis needs to be laid in this scheme of export credits. I do not know whether any arrangement is contemplated for giving priority of assistance to classes of exports which should primarily be destined for the production of food in those countries. If not, that point is worthy of consideration. I would like, lastly, to appeal to those trade union leaders throughout the country who take the trouble to study the economic situation. I ask them to consider the position in Europe at the moment. Industrial countries are busy. They are working agriculturally and are producing. They might almost be called prosperous. In the plains of Central Europe one can see hundreds of miles of land completely cultivated. Even parts of Poland which were recently over-run by the Bolshevists are teeming with thousands of cattle.

We must remember the danger that will force us at the moment when the exchanges by some means begin to im- prove. At that moment a vast industrial production, which has been stimulated as a result of depreciated currencies, will be diverted from internal consumption. An avalanche of goods will spread all over Europe and all over the world in competition with our goods. There is need for a realisation that production costs in this country must be reduced as' rapidly as possible. That does not necessarily mean only lower wages. By whatever means it can most effectively be done, whether by increased output and longer hours or otherwise, it ought to be done. We cannot go on living on doles. We have to compete with the highly developed industry of Czecho-Slovakia. They have to export 60 per cent. of their products if they are to live at all, and their wages are infinitely lower than those in this country. Measured in terms of gold their wages are such as to make competition desperate for us. Unless we can produce goods at a price at which the world will consume them, all the palliatives we are now discussing will avail little. The Government has done its best, and a very good best it is. After returning from a European tour, I would be inclined at the onset to oppose the Government on the ground that it has been too generous in its proposals for dealing with immediate unemployment, for we shall impose a burden of taxation which will involve the risk of making greater an evil which is already troubling us. There is a great opportunity for the leaders of organised Labour to appeal to their followers. Once the economic position is realised I feel sure that the mass of the workers will take the course along which alone industry can thrive.

This Debate has produced some remarkable contributions. The most remarkable to me is the exhibition we have had from the scion of a noble family, who made a speech of such a character that it could not have been better done from one of the extreme benches of the Labour party. We have had also an admirable maiden speech from a colleague of my own. I think that speech does credit to the man who made it. I would like to refer also to the speech to which we have just listened. Throughout the Debate advice has been given to trade union leaders. Everybody has harped on the reduction of the cost of production. I recognise that the last speaker, in dealing with trade union matters, is absolutely fair and is impartial, or thinks he is impartial. It is not the first time I have heard him, but the advice which he has given to us we are following every day of the week. He has not the material to handle that we have to handle. We have not forgotten the old saying, "Live, horse, and you will get grass." But it is no use talking about political economy to fathers of families with the responsibility of wives and children, or to the men who fought for this country for five years and then returned to find that the jobs which were to be kept for them had been snatched out of their hands by women who have accepted a lower wage. They will not listen to you. Such men are desperate. They want something here and now in order to relieve the horrible condition in which they find themselves. That is what we have to face. I sit in my office sometimes, and tragedy after tragedy staggers up the stairs. Men I have worked with and lived with come in, absolutely humiliated and ashamed, to ask me for a few coppers, or a shilling or two to tide them over the day, in order that their wives and children may not starve. These are men who have been subscribing to unemployment insurance and are disqualified because they can only get half a day's work per week. They still have to subscribe to unemployment insurance for the half-day's work they get, but because they get it, they are disqualified from benefiting. These are the men you tell us to preach to. We are preaching to them. I know violent language is no cure; I know it makes things worse; but it is no use arguing with men who are in that position. They want food and their children want food, and it is no use talking to them about economics. I want to tell my hon. Friend that is the position we are placed in to-day.

They cannot get any work at all, or, if they do get a few hours they are penalised for it, by having 1s. 2d. deducted out of half a day's pay to pay unemployment insurance for somebody else to pay for a benefit that they cannot enjoy. We know what we are talking about, and we have to deal with the material as we find it. I want now to come to the general suggestions of the Government. I desire to heartily congratulate the Government and the Prime Minister upon having at last recognised that this horrible gaunt spectre of unemployment has a national bearing. That is what the suggestions of the Government amount to. I have seen the Prime Minister in many different rôle in this House, but I do not know that I have ever seen him in a more difficult rôle than the one he occupied here yesterday. I could not help thinking, as one who has known him for a great many years, and who sat at his feet in the old days when the mountains of North Wales resounded with his eloquence—from an entirely different point of view from that of today—I could not help thinking during the speech he made yesterday, that he was divided in his mind. He showed anxiety to retain some of the very erratic affection of the political jade with which he is at present coquetting, mixed with a desire to rub shoulders with his old love. I heard him make statements here which convinced me there is still some hope he may sometime come back to his old love. He was very sore on our complaint—not my complaint, but the general complaint—that nothing had been done, and he went to considerable trouble to quote fact after fact of what had been done. I am one of those who believe in giving even the devil his due, and I am not going to subscribe to the idea that nothing has been done. Something has been done, but something has been undone which rather discounts the good that has been done. When the Prime Minister claims that the Government brought forward an Unemployment Insurance Act and expended £48,000,000, he forgot to tell us how much was collected, and he forgot to remind the House that when the men entered into this compulsory insurance they entered into it on the understanding that they were getting £1 a week, and without any warning except a speech in the House that was reduced to 15s. He forgot to tell the House about the position of the agricultural labourer who, without any warning, or very little warning, was deprived of the privileges he had previously enjoyed.

I agree with the Prime Minister in his statement that this old country is keeping its end up, and that while around us the world is awry our credit is good and sound. That is quite true, and I hope it will prevail. To use the Prime Minister's own words, in spite of the men who are shrieking through the keyhole while the bricks and stones are clattering on the roof, I think eventually it will prevail. The proposals of the Government include that of extended credits for overseas trade. I am not an expert on that, but whatever good there is in this proposal, I venture to say there is no man on these benches who will not support it as far as it goes, though it does not go very far. The Prime Minister was very eloquent on the necessity of overseas trade. He singled out the instance of the poverty of the Indian railways in the matter of rolling stock. May I remind the House that long ago we pointed out the importance of this not only in India, but in our own country? We were told that 1,800 locomotives were sent to the Continent and the rolling stock of this country depleted. We pointed out, at the time, that the huge works created for the purpose of making instruments of destruction had machinery in them which might be converted to the purpose of making new rolling stock. What happened? These works were either sold to private enterprise or scrapped. The next point upon which the Prime Minister laid stress was the advantage of emigration as a relief from unemployment. Where can we emigrate to in order to escape unemployment? I do not know any part of the civilised or habited globe in which you will not poke up against the very same problem we have got at our own door, and what is the use of sending men to other countries when the same condition exists there that exists here to-day? You say: "Oh, we will send them to our Colonies; we will put them on the land; we will find £300,000 to do this." The argument was followed up by a statement that in time these men will become producers and will be exchanging their commodities for goods from us, which will be of value to the State. I heard and read on 11th October a similar statement made by the Italian Minister at an international conference at which some of our statesmen were present; and in support of the idea of emigration on practically the same ground, he said that he believed in emigration, because the more Italians left-Italy and went to other countries, the greater the manufacture of macaroni and the greater its export.

Surely my hon. and gallant Friend will recognise that this unemployment question is a tragedy and not a comic opera. The manufacture of macaroni and the export of macaroni—how is that going to affect the general question of unemployment?

Does my hon. Friend disagree with the theory that the more Englishmen emigrate, the more potential purchasers of British goods you are establishing throughout the world?

May I remind my hon. and gallant Friend that that is the argument again of "Live, horse, and you get grass," dealing; with the present state of unemployment. Why do these men go to Canada? To work on the land. Is there not land enough here to work upon?

I would advise my hon. and gallant Friend to inquire a little bit closer into his own British possession, and he will find if he does, that to-day there are over 12,000,000 acres of arable land ready, without spending money on it at all, which can grow food for these people, and it is not being cultivated. I advise my hon. and gallant Friend before he jumps to a conclusion to examine the facts of the case.

In the case of one county that I know, there is a complete absence of agricultural employment for the population of that county simply because the farmers cannot afford to grow wheat and to sell it at 40s. a quarter with the present rate of wages, owing to—

The hon. and gallant Member is making a speech.

9.0 P.M.

It simply strengthens my case. I am dealing with established facts. Here is raw material at our door; here is the land, and here is the labour, and here is the man who can work on the land, and produce. The producer ought to be an asset instead of a liability. We ought not to want to get shut of him, we ought to keep him. It is going to take money to get these men to the Colonies, and do I assume rightly or wrongly that this emigration will be confined only to men who have no dependants, or are the married men and families to be included? In the first case it will be costly enough, but in the second case the cost will be enormous, and £300,000 will not by any means cover it. Why should we not use that money to put the men on the land in this country, without sending them out to the Colonies? They can be put on the land here at considerably less cost than sending them out to the Colonies.

The next question is the question of the relief works and the special levy. I am not speaking for my colleagues on this question but for myself, and I say that I think there have been cases where men have been put on relief works where the restrictions laid down by certain unions have been unjust. In the bulk the men who are put on relief works—there may be experts here and there—cannot produce productive work, and there may have been restrictions placed on them which were not justified at all. In regard to the suggestion of the levy, the Minister for Labour will say, "Ah, yes, King Charles' head again." I can assure him I feel this thing very deeply. I am pleading for the bottom dog. Already a casual labourer, with his day and a half or half a day a week, is compelled to pay not only this 1s. 2d. unemployment insurance, but he is paying it doubly. His week ends on the Friday; he always commences on the Monday; on the Saturday he works a half-day after being deducted on the Friday night, and that goes into the following week, and the same thing occurs the following week—another 1s. 2d. for the one week, or 2s. 4d. out of a day and a half's wage's. You are going to put another 2d. on top of that. It is the last straw, and the camel's back will break before very long if there are many more straws piled on to it. As it is, the half-day in the week disqualifies him from drawing benefit towards which he is bound to contribute, and I want the Minister to consider whether he cannot at least accept an Amendment that will leave as it is the position of this man who is so heavily burdened under existing conditions.

There has been a lot said about the cost of production. I agree, and I endorse the principle of the reduction of the cost of production, but what is the main essential of cheap and increased production? Is it not the vitality of the producer? Is it not the health and strength of the producer which cheapens and increases production? When you ask for increased and cheaper production, give the man who is producing sufficient purchasing power to keep himself well and fit.

The Prime Minister lays it down that we must build up our strength, not with patent medicine, but with healthy food. I endorse that statement of the Prime Minister, but if, in your anxiety for cheap and increased production, you base it on a low wage of the workman, how can you expect cheap or increased production when you sap the vitality of the producer? If you deal with the other side, and equalise the reduction of wage by an equal reduction in the cost of living, he will be able to maintain his productive power; but you have to face the fact that wages are going down wholesale and the cost of living is keeping up. [HON. MEMBERS: "NO!"] I know—the index figure again. It is a very convenient thing, but the Board of Trade figures are based on the wholesale prices. They have not reached the retailer yet. I speak from painful experience in my own household. If the reduction in the collier's wage comes about now as is threatened, he will be working for less than 1s. an hour. Is there any corresponding equality between that reduction to pre-War wage and the cost of living? We are agreed as to the necessity of cheapening and increasing production, but do not ask the workman to bear the whole of the burden. Share the burden equally. Give the workman a chance, and there is no one more willing to subscribe to the policy of increasing and cheapening production, but he has never had a chance since the Armistice was signed. Patent medicine at least has its uses. It eases the pain; it gives some relief. The present suggestions of the Government are really patent medicine, but the suggestion of low wages is poison. It poisons the source of either cheap production or increased production if you tie the workman down as is suggested he should be tied down.

There are remedies, but I am not so vain as to say that what I am going to suggest are permanent or lasting remedies. My hon. Friend the Member for Bishop Auckland (Mr. Spoor) to-night touched the spot when he talked of the Versailles Treaty as being responsible for much of the mischief from which we are suffering to-day. I do not think anyone will accuse me of having been favourable during the War to Germany or Germans; my record is quite the opposite; but sheer force of circumstances has compelled me to recognise that the greatest blunder this Government ever made was the creation of the Versailles Treaty. Let me give one or two cases as it affects my industry, shipping. There was nobody who shouted harder than I did for ship for ship and ton for ton. If I had been as wise then as I am now, I would not have, shouted. What has happened? More than a million and a half of tonnage, owing to the Versailles Treaty, or the Reparation or the War Indemnity, has been handed over by Germany to the Government. All that shipping has been handed to the ship-owner at£ a ton.

And in the shipyard it would cost £35. Is it any wonder there is unemployment in the shipping trade? That is the Versailles Treaty. Take the Saar Valley. The whole, or nearly the whole, of the German coalfields were handed over to France. France was one of our best customers for coal, and so were Spain, Italy, and Denmark; but today, I understand, France is getting sufficient coal from the German coalfields, not only to supply her own domestic needs, but to sell to Spain and Italy, and, actually, I believe, is selling back to the Germans, and making a very handsome profit out of it. Therefore, instead of Germany paying the indemnity, she is making us pay by getting our trade and causing unemployment in this country. And so we have to come back to the patent medicine suggested by the Prime Minister. It is no use arguing with men who see nothing but poverty or starvation staring them in the face. The only argument they can use is the brick. It may be very inconvenient if it cops you in the right place, but it is no argument. As I said before, these men are too desperate to listen to argument. I am convinced there is only one way out of it, and that is, as the Prime Minister said, by the slow and sure recovery of our normal trade. In the meantime the wild men are shrieking through the keyhole and the stones are clattering on the roof. I do not want worse to follow. I am one of those who believe in constitutional methods, and a determined exercise of the franchise.

My intention to intervene in the Debate was not so much to reply to the criticisms of the previous speakers, but to deal with the principles laid down by the Prime Minister yesterday. The remarks which have fallen during the course of the evening, however, from the hon. Member for Caerphilly (Mr. Morgan Jones) in his most excellent speech, and my hon. Friend the Member for St. Helens (Mr. Sexton) need a certain amount of reply from one who is, I think, more or less acquainted with the circumstances prevailing in both those areas. My hon. Friend the Member for Caerphilly in the course of his speech referred to the small traders, and painted a very doleful picture of the difficulties with which these people are confronted at present in South Wales. That is perfectly true. I know many scores of cases of men and women who, as the result of twenty or thirty years' struggling, have amassed sufficient money to enable them to purchase and equip small businesses. As a result of the strike, or lockout, or stoppage—whichever you may call it— these people are placed in a position where they are not only faced with very serious loss, but actually in nearly every instance faced with bankruptcy. The position, so far as they are concerned, with falling wages on the part of the men, and with the practical impossibility of getting anything like a reasonable or quick payment, is a very serious matter. On the top of that is a more serious and a more difficult matter, and that is the very heavy increase in the rates and the rental values which have taken place as a result of the increases brought about by administration in the local areas.

Many instances have been brought to my notice where shopkeepers have said: "We could possibly carry on if it were possible for our rates and our rents to be as they were before the stoppage." What do we find? My hon. Friends know it quite well, and I say what I do with no endeavour to engender any partisan spirit of any kind, but we have to recognise in the House and in the country that here is an area which is entirely devoted to the mining industry, with the exception of a very small section of the community who are interested in shopkeeping and a few in agriculture. They elect their own local town and parish councils, and when it came to this stoppage, in addition to the funds which the unions themselves had, and the relief which they themselves gave, the workpeople being in possession of the machinery of the local councils granted relief almost from the inception of the stoppage, and as a result of the funds of the local councils being appropriated to relief work instead of being applied to the purposes for which they were originally intended, we see the effect of it all. That kind of case has been multiplied in scores of towns in South Wales, with the result that the rates have jumped from 10s. and 11s. in the £ to 30s., 35s. and in some cases 40s.

In the course of his speech my hon. Friend referred to the £25,000,000 which the Government intend to set aside for the Export Credits Scheme, and he was, unfortunately, under the impression that this might possibly be applied in some measure towards relief in the localities. I do not understand it to be applicable in that way at all. He was very doubtful as to the capacity or honesty of the big business people to apply such sum fairly and honestly in local work. Insomuch, however, as it does not apply to it in the least his fears are needless. For when we think of the case of actual administration on the part of his own colleagues on the councils and local bodies, which they are supposed to administer, I say there is every reason why there should be grave and very sincere grounds for caution in applying funds for local relief work if it is going to be administered as these funds have been administered in the South Wales area. That, however, is more or less a local matter. Now we come to the proposals to apply to those areas in the way of help and of relieving the situation. Under the circumstances, a great many of the ratepayers will feel that the Government are really in this particular case overstepping the bounds of generosity. If they remember—and as it has been admitted—councils elected by the people—and as we know, only too often by a very small minority of the people— are in control of the funds of the whole body of taxpayers, and if the Government cannot act in such circumstances as to prevent South Wales coalfields utilising these funds for the purpose of aiding and abetting stoppages—and I use the word "stoppage" in order to avoid ill-feeling—then it suggests a very hopeless outlook for the rest of the people. So much for that.

My hon. Friend the Member for Bishop Auckland (Mr. Spoor), in the course of his speech, referred to the conditions prevailing during his visit to France and Germany. I do not think my hon. Friend is the only Member who has seen something of the Continent. He is not the only person who had the opportunity of interviewing people on the other side. There are always two sides to every question. One may go to a country and be received by capitalists, or, if you like, by the responsible leaders of the unions, or, if one goes with a mandate of the Government, it is possible to see some of the Ministers of another country. There are, however, some of us who happen to have the gift in these times of being able to go into these countries and meet the people of all shades of opinion and form impartial judgments. I have been in France, Germany, Italy and Spain. I have seen Ministers in all these countries. I have seen trade union leaders. I have been amongst the people. I have studied the rates of wages and trade union conditions prevailing in these countries. I have yet to find that in this country the working man has got the slightest thing to grumble about so far as his standard of living is concerned and so far as the conditions go under which a benevolent Government allows him to live. Take, if you like, Spain, which is probably the most prosperous country in the whole of Europe to-day. What is the working man, a carpenter or bricklayer, working in Madrid to-day, getting. Five or six pesetas per day, and they are working for that money, too, and living on food that no decent Englishman would be expected to live upon. What do you find in France? Go to Marseilles. A docker there is working for 20 francs per day, and a franc is worth just over 4d., and he is accepting at the end of this month a reduction to 16 francs. Their I standard of living is considerably lower than here. What do you find as you go through all these towns and of these countries? You find these men working not eight hours a day, and on Sundays, and building houses and continuing work after 5 and 6 at night. The point I want to get in is this: While we are so much concerned in this country about our own peculiar trials and difficulties and about unemployment, while we are crying all the time against other people who cannot buy from us, we find when we go abroad to deal with these people the reason why they do not buy. They are working hard to produce their own stuff, and as a result they have no need for our stuff. In other words, the point is that these people say, "Your goods are costing us so much that it is beyond our capacity to purchase them. Therefore we must work a little harder to get those commodities and we are not going to let our country go to pieces on trade union regulations or restrictions. We are going to try to do our level best towards the salvation of our own country."

I do not blame trade unionism for the whole of the debacle in which this country is to-day as regards unemployment. Let us go back to 1920. I remember, in 1920, when the Budget was introduced by the right hon. Gentleman who is now Leader of the House, how hon. Member after hon. Member on these Benches pointed out to him that by an increase in the Excess Profits Duty—which was favoured so much by our hon. Friends above the Gangway on this side—[HON. MEMBERS: "No, no!"]— that the Government was deliberately leading this country to ruin, and was imposing a tax on industry which industry could never possibly bear. We were turned down, and defeated. It was put to the House and the Parliament that it was a levy which was being made on excess profits and on industry at a time when industry was prosperous, which could bear and should pay, and which would be a justifiable contribution to the coffers of the country.

I am sorry to interrupt, but I do not think the hon. Member ought to make a misstatement. Many of us on these Benches supported him in the Lobby, and we were defeated by the "Coupon" Members on the other side.

I accept the correction so far as it may apply to individual hon. Members above the Gangway.

The fact remains that it went even further than the question of the Excess Profits Duty at that time. It went even to the extent of a capital levy. At that time—when those of us who were familiar with industry, who knew what it was facing, who had the experience of previous wars in front of us, and who had read as much history as the Prime Minister had read yesterday and who had learned a great deal more from it than perhaps he had learned—at that time he told the House that industry was going to have a very bad time. The Excess Profits Duty was increased from 40 to 60 per cent. What is the result to-day? There are hundreds and thousands of concerns in this country unable to meet their liability for Excess Profits Duty incurred under the 1920 Budget. They are now asking for time to pay, and the suggestion is being made that they shall carry it over for a period of years, and burden themselves with a further additional charge on the cost of production which, in point of fact, they will never be able to meet under any circumstances. We warned the Government of it in those days. We told them what would happen when the panic and slump came, and when industry fell and things looked very black. The leader of the House went to Birmingham and made a statement there. He said that in view of the conditions that now existed he was going to recommend the abolition of the Excess Profits Duty and to terminate it in March of this year. The right hon. Gentleman did so, but what is the use of shutting the door after the horse has gone? It was too late. He has had or will have to pay back considerably more than ever he collected. The Excess Profits Duty had the effect of paralysing industry in every direction. Where orders had been solicited they had to be cancelled and prices had to be revised. As a matter of fact, on the whole of the year, it is very doubtful if one single, solitary penny of income accrued to the Government on the 60 per cent. Excess Profits Duty.

What of the Estimate, and it is a reliable one, that has been made of the un- collectable arrears of Excess Profit Duty? It is estimated, on very good authority, that £180,000,000 which had been calculated as collectable Excess Profits Duty under the 1920 Budget, cannot and will not be paid unless the Government decide to become the owners or debenture holders of numerous classes of industries. What is our position? The Prime Minister talks about reducing the cost of production. It is useless to talk about reducing the cost of production unless you can reduce your overhead charges on the one hand and bring your costs down to a minimum. I say, as an industrialist, it is no use going to labour and telling it it has to bear the principal part of the reduction in cost. You cannot do it. If one is burdened on the capital side with a tremendous load of dead weight which prevents the possible flowing of new capital into industry, how can you expect the employer, knowing that he cannot reduce the cost of production, to go to labour and say, "You have to make cuts to meet what I cannot meet on my own side"? The Government in dealing with this matter has not got down to hard cases. We have to deal with the 1920 Excess Profits arrears, and it is useless for the Government, in making proposals for the reconstruction of industry and for the loaning of money to industry, to disregard the fact that thousands of concerns in this country to-day are groaning, are being burdened, and are being practically ruined. Their prospects are being destroyed, and their capacity for soliciting orders has been entirely obliterated by the fact that their overhead charges, consequent on the demands of the Government in regard to Excess Profits arrears, are making it impossible for them to compete.

Another matter which concerns us very much, and to which we have to have due regard, especially when we go abroad to compete, is the line of difference which we find in our trade union rates and wages as compared with the foreigner. In this country, unfortunately, we are so highly organised on the trade union side that before we can start to interfere in any way with the work of one class or one union we have to have an agreement with practically every union working on the same particular kind of work. Take the case of shipbuilding. For a period of something like six months not one solitary bit of joinery work was done in this country. Some 60,000 men were dislocated from duty. At a time when it was possible to secure orders they prevented any orders coming into this country, and at a reasonable estimate work to the value of £4,000,000 or £5,000,000 was turned into foreign ports. What was the end? After a six months' futile strike the men went back on practically the terms on which they came out. They did not get the advance which they wanted, and they returned under conditions which were as plain and as obvious to the men on the day they came out as on the day they went back. What is the position to-day? These men have been back a few weeks, and they are likely to stay back for probably another two or three months. So far as we can see to-day, owing to the costs with which we are faced, it is highly probable that these men will be placed out of industry for the next 12 or 16 months. It is not the employers' fault. We cannot turn off, with 47 hours per week and an output of only from 68 to 70 per cent. compared with 1914, and go into the foreign markets of the world and compete for ships. I have offered to build ships at a price which leaves me at a loss provided I can keep my yards going. I find I cannot build because nobody will give me orders.

I will answer that in a moment. Do you expect me to turn to, and to maintain those yards and keep the men going when nobody wants the ships? My hon. Friend says "You got the indemnity ships for nothing." What is the story of that? There was no money made on the indemnity ships. Labour paid the price of them. The result, as the hon. Member for St. Helens said, was that something like 1,250,000 tons of German shipping was taken under the Treaty of Versailles, and sold in this country. Those ships were not in any way suitable for British freights. They were ships that we did not want, and that nobody wanted. They were given away at anything from £3 to £7, £8, £9 or £10 a ton. Every ship that was sold of those German ships meant just one ship less being built in this country, and it had a very serious effect by depreciating the value of British tonnage. This has made it impossible for British shipbuilders to look forward with any cer- tainty to the next two years of further contracts. This trade is in one of the most complex and complicated situations, because no amount of palliative measures can remedy it until it is accomplished by economic results. Until that is done nothing is ever going to bring back to our shipbuilding yards a revival of that industry.

We talked a great deal about economy and about the burden of taxation both in regard to the industry and the individual. I remember only yesterday the Prime Minister referred to the need of economy, and the urgent desire of the Government to effect economy. We have heard that for the last twelve months, and we have seen no possibility, under the most genial of circumstances, of any reduction in the Income Tax, or any other tax. Only a few days ago the Chancellor of the Exchequer at Edinburgh referred to the possibility of their being a great deficit in the Budget and the necessity of finding more money. There are a great many people in this country who believe that the Government in the first case, by trying to set the standard of British credit on a pedestal which could not be approached by any other country, are making a grievous mistake. The attempt made in 1919 to set aside such a large sum of money, and the further attempt made last year by keeping taxation at the very high level then proposed, and again this year, has been most fallacious, indeed it has been disastrous. It has been the equivalent of giving a man re-covering from typhoid a beefsteak, and sending him on a 10-mile walk the first day he regains consciousness. As a result we find to-day the whole country impoverished, and until we get a free and steady flow of the savings of the people and capital available for investments, there is very little chance of getting industry re-established.

The Government, in dealing with other matters, have been very remiss and slow in recognising the difficulties of the situation. We do not need to go further back than last July for an example. Hon. Members will recollect the last Debate on the£ 10,000,000 granted as a subsidy during the coal strike. Very few Members in this House who dealt with the practical side of business had any conception that that settlement was one that was going to bring peace to the mining industry or prosperity to the country. On the 7th July, in dealing with that matter, I said:

We have been told by the Government with every degree of sincerity that they are going to extend the scope of that scheme to every country in Europe. Does my right hon. Friend opposite believe that anybody is going to take advantage of that scheme to any great extent, knowing that the liability of the exporter must be regarded as 57½ per cent.? It must come back to him. Does the right hon. Gentleman think that by guaranteeing 100 per cent. of the advance that the banker is going to give a man 100 per cent.? Even the credit capacity of the borrower may be worth the amount which the credit calls for, but there is no guarantee that by the time the bill becomes due that the man's credit is going to be worth the amount of the guarantee. The banks are not so generous now as to take the whole liability, and I do not believe this scheme has been worked out with that degree of business knowledge which is desirable. I think it might have been proceeded with and dealt with along more practical lines, such as those which are adopted by Lloyd's underwriters in dealing with risks whereby you can pay your interest for the risk, and in that way the Government would have done a great deal more in the direction of reviving trade than under a scheme of this kind.

We have attempted twice to deal with these credit matters, and both have been failures— ghastly failures. And not only that, but in trying to deal with this matter, when we have found ourselves up against a Government Department, we have had to deal with red tape and other difficulties which have made the transaction of business absolutely impossible. I know my right hon. Friend is desirous of doing away with that, and I give him credit for it, but he himself cannot possibly be responsible for every transaction that takes place. I feel that under the present arrangements and prospects the scheme really holds out nothing but a nebulous promise which may fructify but which I am inclined to believe will prove to be something rather windy and nothing else.

We ought not to be under any doubt with regard to the export credit scheme. As I understand it, the Government give the 100 per cent. guarantee. If the bank lends the money, does the hon. Gentleman suggest that the bank will look to the borrower for the payment of the 57½ per cent., or does he mean that the bank will discount the Bill and the Government will look to the borrower for the 57½ per cent.

That is the position on these short term Bills. The Government will give the guarantee of 100 per cent. If the bank lends the money it will have the Government guarantee, but the Government and not the bank in case of default will look to the exporter for the 57½ per cent.

It is immaterial whether the Government come back on the exporter or whether the bank do it. The bank may lend the money, but I doubt very much if cautious exporters would be inclined to work off their books with the possibility of having to face at the end of a given period liability for a very large sum of money through having taken advantage of the full credit. There is one other matter which has a very strong bearing on this export scheme. In almost every country in the world, and especially in Allied countries which owe us money, they are erecting very heavy tariff walls against us. It has become a very serious matter for business. We have been priding ourselves for generations on being a Free Trade nation, but we now find ourselves shut out from almost every country by impossible tariff walls. Many of these countries owe us considerable sums of money. In a great many cases they are not even paying interest on their debt, but they are utilising the money which they owe us to erect tariff walls against us and to shut our goods out. If we are going to give these countries the benefit of this scheme it must have a three-fold effect. They will erect these tariff walls. They are building up their industries at our expense with the money they owe us. They are going to take advantage of our export credit scheme, and they will injure us as far as they possibly can. Adequate safeguards should therefore be taken in the application of this scheme to see that if they do erect tariff walls against us we shall in turn be able to say to them that we shall require repayment of the money they owe us.

It is impossible to go on talking as we have done in the past about the amity and comity of nations. There is no such thing as friendship between nations. The more one travels, the more one realises that each country is living for itself and for its own advantage, and if we are going to be fools enough in this country to talk about cancelling the war debts of other countries, while those countries erect tariff walls against us, we shall prove ourselves a stupid people. I suggest that the Government, in dealing with this matter, should take into consideration the questions I have brought forward, and endeavour to adjust their policy accordingly. Unemployment can only be relieved by a due and just recognition by the Government on its part of the liability which it has incurred as a result of its past actions, and there must also be a recognition of the liability which the trade unions themselves have for their restrictive legislation which prevents a man from giving his labour in the market to the best of his ability and advantage.

This House always listens with interest to the speeches of the hon. Member who has just addressed it, because he brings to any subject with which he deals a practical knowledge of business affairs. He will perhaps excuse me if I do not follow him into the various interesting questions he has raised. I am anxious to draw the attention of the House for a few minutes to some of the larger questions of policy which this House has to face. The House itself is facing the problem in a manner in which this assembly always tries to do. Hon. Members throw their ideas into the common pool. The tragedy of unemployment excites the deepest sympathy in an equal degree among all parties. There is, however, an acute difference of opinion, far-reaching and clearly defined, as to the cause of unemployment and as to the remedy which this country should apply in the months to come. Before referring to the scheme which the Government are asking the House to consider, may I invite attention for a few minutes to the present position in Great Britain. If hon. Members will cast their eyes back to pre-War days, they will remember that in those days this little country supported 45,000,000 people at a higher level of subsistence than obtained in any continental nation. A peaceful and stable continent enabled our manufacturers to sell their goods in every portion of the globe, and until real peace is again secured on the continent Great Britain cannot regain the measure of prosperity which she enjoyed in those pre-War days. The Treaty of Versailles has been referred to by many speakers, and comment has been made on the excessive reparation demands embodied in that Treaty. Those excessive demands delay the return of peace. The exclusion of Germany from the League of Nations retards peace. The threat of armed occupation which hangs to-night over the heads of the German people checks the return of peace. A peace atmosphere is not being created by the Government on the continent of Europe.

In December last, speaking in this House on the general situation, I urged the Government to adopt a certain policy even at the risk of estranging some of our Allies in the late War. Take, for instance, the question of France. France, a self-contained nation, did not live by selling her goods in every market in the world, and to-day unemployment hardly exists, but Great Britain, deprived of her export trade, cannot live and move and have her being. The far-reaching effects of an unstable Continent are, I fear, not fully appreciated in the country, although I know that they are much in the minds of hon. Members of this House. Yesterday, during the Debate, the right hon. Gentleman the Member for Paisley quoted some figures for the purpose of directing the attention of the House to the trade between this country and the Continent. Our international trade, however, is not only direct, but indirect. Our Dominions to-day are unable to purchase manufactured goods from this country, because they are unable to sell their raw material to Continental nations. The extent of that trade is seldom realised. The trade from India in 1912–13 to the Continental nations amounted to £46,000,000 per year. Australia's export trade to Continental nations amounted to £23,000,000 per year. What are the figures this year? I have before me the figures for the exports from India to the Continent this year. They are averaging £2,500,000 per month. In 1913 the figure was nearly £5,000,000 per month. Not only is the figure reduced by one-half, but, taking into consideration the great increase in prices, trade is correspondingly at a much lower level. Of the total trade of India in 1913, 33 per cent. was to Continental nations. To-day India's trade with Continental nations amounts only to 14 per cent. I have quoted these figures with the object of showing that, without a stable Continent, Great Britain cannot regain her former prosperity. Australia and India are unable to buy British products. That is one reason why Australia to-day cannot remit money to this country except at exorbitant rates, and, owing to her inability to pay for the goods, she is unable to purchase British goods. While the Continent is deranged, prosperity cannot return to the Dominions or to this country.

10.0 P.M.

If the argument I am advancing, that the prosperity of Britain depends upon a stable Europe, is based on reality, the recurring difficulties every three or six months between the Supreme Council and Germany retard recovery. Has not the time arrived, therefore, when we should adopt the spirit which has been mentioned by several of my hon. Friends on these benches, of endeavouring to take an international outlook, and to follow more closely the policy enunciated by the right hon. Gentleman the Member for Paisley yesterday, when he advocated the necessity for a reconsideration of the whole problem of international indebtedness in both its aspects—the indebtedness of the Allies to one another, and the indebtedness of our late enemies to the Allies? Until this problem is faced in a new spirit, with a realisation of the situation which we have brought on ourselves, our people will not regain that measure of prosperity which they are entitled to expect from the policy of this Government. Let me turn for a few moments to the further policy enunciated by the right hon. Gentleman the Member for Paisley, namely, the vital necessity for economy at home—a drastic cut in unproductive expenditure. By a drastic cut I mean a cut of at least £100,000,000 next year. Speeches from the Government Benches promising economy have, I am afraid, no effect on the minds of the public. To-day there are 1,500,000 people out of work, and side by side with that unpleasant fact there are to-day in the employment of the Government nearly 750,000 people, drawing larger salaries—in many cases much larger salaries—even taking into consideration the reduced purchasing power of money, than in pre-War times. That figure does not take into account the number of officials employed by the local authorities. It is unfair that, while there are 1,500,000 people out of work, there should be this large number of people employed by the Government and paid by the Government at these high rates. It is lopsided; it is unjust. The Government must be held directly responsible for creating this situation, and as a result, as was clearly pointed out by my hon. Friend who preceded me, the burden of taxation is pressing too severely on industry, and is creating the unemployment which we all deplore. Here I come to a further point, namely, that of the national balance-sheet. Several hon. Members, supporters of the Government, have asked that a true statement of the financial situation should be revealed to the House of Commons. I see that the Financial Secretary to the Treasury is here. The Chancellor of the Exchequer, speaking in Glasgow a few days ago, told the public that his surplus had disappeared.

On paper. The Prime Minister yesterday spoke against inflation. The Government are not living within their yearly income. Inflation— and here I ask the attention of my friends of the Labour party—tends to maintain prices. It is at the expense of the working classes. It would check the fall in prices. It is to the advantage of every owner of commodities; it is a direct disadvantage to the public of this country. Therefore, we ask from these Benches that the Government should publish their balance-sheet. They are asking the House to vote very large sums of money, and the very least they can do is to reprint the Budget statement up to date and revised, placing before the country the true facts and the true situation. That leads me to speak of the export credits scheme. I think it is too soon to express a definite opinion as to that scheme, but I am doubtful of its success unless the main cause which stops the sale of goods abroad is adjusted; and here I come to the subject of high prices. Lack of confidence and high prices are the main causes of unemployment to-day. Price determines whether buyer and seller meet. The price of British goods to-day is too high. Both the rate of profit and the rate of wages must be reduced. Consumers all the world over are on strike. They refuse to purchase British goods at the price that we presently demand. Our customers are poor, and the rate of wages and the rate of profit can only be settled ultimately by their exchangeable value in the markets of the world. The public all over the world to-day are much poorer. They are unable to pay the price we demand. But I am certain that the British public would face that unpleasant fact much more readily if the Government would give a lead to the country on this subject. Let them reduce their vast national commitments in all quarters of the globe. While public expenditure continues at its present level it makes it very difficult for employers and employés to agree to a reduction in the proper spirit. There must be a reduction in the cost of production, either by an increased output or a reduction in the rate of wages. The world is poorer by the War and not richer. We have spent our resources. No heroic scheme can solve our problem, but it can be mitigated if the Government will only hold fast to the principles which have made Britain great. During the Recess, in common with many hon. Members, I faced large bodies of the unemployed, on the Clyde and in other places. I found few signs of any Bolshevik spirit. I agree that they were angry and disappointment existed. Idleness and starvation are ugly facts. The road to recovery will be difficult, no matter what policy is pursued. The schemes of the Government may assist, but we must revise our international outlook, until we secure a real and stable peace on the Continent and combine that with a policy of the strictest economy at home and complete Free Trade and reduce the cost of production. These are the essentials. There are to-day looming clearly before the public, more clearly every week, two alternative policies for this country to adopt, one associated with the name of my right hon. Friend the Member for Paisley (Mr. Asquith), to look at international matters and to secure' the strictest economy at home. It will be difficult to secure the adoption of that policy, but until Britain does face the realities of the situation and return to the principles and the clear policy which has made this country great amongst all nations we shall not recover that degree of prosperity to which we are entitled.

For two days the House has discussed what is probably the most serious and difficult problem we have ever faced, and there will be general agreement on one point, that the question in the main has not been approached in a party spirit. Obviously there are different party remedies. Hon. Members in different parts of the House would apply different remedies, but we can at least congratulate ourselves that there has been no attempt to exploit this most terrible of all social ills for party advantage. Just as outside I can conceive of nothing more horrible than any section of the people exploiting the unemployed, so it would equally be a very serious situation if we in this House were merely to take advantage of the misery and suffering of the people merely for our own party or sectional aims. On the other hand, I think it will be agreed that this is the first time that Parliament, without a dissentient voice, has clearly laid it down that this House of Commons, as a part of the Constitution, must be responsible for seeing that men and women are not allowed to starve. I have heard no dissentient voice on that aspect of the question. There have been differences, but on these two fundamental facts there appears to be agreement. The Prime Minister and hon. Members generally have seized on the question of production as having an important bearing on this question. The Prime Minister himself specially emphasised that we must have a reduction in the cost of production. Curiously enough many people seem to assume that the only way to bring about a reduction in the cost of production is by reducing wages. We on these benches totally disagree from them. We believe that may be a factor. We believe that is a matter that ought to be examined and considered, but to assume that a mere reduction in the wages of the working classes will immediately cheapen production is to run foul of all experience and all fact.

On the other hand, I believe the question of a reduction in the cost of production is directly associated with the problem of unemployment. It is true that there are men to-day who will not produce of their best, but when we are talking about wages and hours I have never heard a sensible employer complain of the eight hours' day. I have heard many complain that they have not had eight hours' work. I have heard many complain of what is produced in the period, but that is an entirely different proposition, and it is far more serious than even talking about a reduction of wages, or an increase in hours. It is a question of what is the production in the period. That being so we have to fully face the fact that thousands and millions of the working classes believe sincerely that the harder they work the more chances there will be of unemployment with all its evils. See how easy it is to go to any body of working men and say, "If you will work only four hours a day you will find work for a large mass of people." Unfortunately there are probably 1,000,000 out of the nearly 2,000,000 who are unemployed who have been entirely neglected, for whom this House of Commons and this Parliament have not made any provision, and you can quite understand the feeling of bitterness in their minds and the belief that they are really entitled to do as little as possible. Some of us on these benches who months ago, immediately following the War, realised the difficulty of this problem, and took the responsibility of urging on our own people to produce more, are being abused in all parts of the country to-day. I do not apologise for giving the advice then. I believe it was sound then, and I believe it is sound now. We are not suffering from over-production at this moment. We are suffering from under-consumption, which is an entirely different thing. Therefore I hope the Government, in approaching this question of dealing on a national basis with unemployment and realising the obligations of the State, will keep clearly in mind that when once there is established a real genuine system which enables a man to feel that he will not suffer, and his wife and children will not suffer, because he gives of his best, by that means you will do more to reduce the cost of production than by anything else I know. Certainly, it is a far more important factor than the question of the reduction in wages.

When we are dealing with wages, do not let the House forget what is taking place. There seems to be a general assumption that fabulous wages are being paid today. At this moment there are thousands of workers who are receiving a wage that is lower, based upon the cost of living, than they received in 1914. There is a large mass of people whose position is not quite so bad, but it is, nevertheless, really desperate, not because they are out of work, but because they are only employed two, three or four days a week. If these are the facts, there will be general argument that there is no short, simple remedy. If the Labour party, or any other section of the House, were sitting on the Government Benches, we could not get up and say that, with the world position as it is, there is one short, simple remedy for this problem. It would only deceive the unemployed to say that. Far better for us to face the cold, hard facts. In the first place, it is not a local problem, it is not a national problem, it is an international problem, and no one Government on its own responsibility can solve the problem, although, incidentally, a Government can contribute to its solution. I believe that, in spite of all the sneers that have been made respecting the international side of the question. When the Noble Lord was speaking several hon. Members ridiculed the suggestion that the Versailles Treaty, or our foreign policy, especially our action in Russia, had any direct bearing upon the unemployment problem.

These things have more bearing on the unemployment problem than anything else, and if any justification is needed for that statement it is the proof that even a credit country is not immune from the difficulties of unemployment. Take the position of America. Thirty-four per cent. of the total gold of the world is in America, I am assured on the highest authority. America is the one credit country in the world. The dollar is standing higher than it ever stood before. All the other nations owe money to America. With the exception of tea and coffee, and partially rubber, she is an absolutely self-contained nation. She produces everything that she requires, with the exception of these commodities, and yet, with all this advantage of credit, with all her gold, with all the countries owing money to her, there are not only 6,000,000 people unemployed in America, but I am assured that there are more bank overdrafts and more financial disturbances in America than have ever been known before. That is a proof that even a credit country is not in itself a guarantee against the ill-effects that follow trade depression.

The moral is this. America, and in many respects this country, to a lesser degree, is like a jeweller's shop, with all the jewels and the gold showing in the window. They all look valuable, and are valuable, but the real test of prosperity is the number of customers going inside the shop. That is exactly the position of America. America is suffering to-day because, though she has abundance of these things, the rest of the world is not buying from her. Therefore I submit that we cannot deal with this great evil apart from the question of foreign policy. We may be bitter against the Germans. We may feel that no punishment is too great for the crime which they committed and that no sympathy ought to be extended to them, but we should be mad, and blind to our own best interests, to allow our prejudices to bring about economic disaster in our own country. We have got to review the international situation, not with any desire to let Germany escape, not because we want for one moment to suggest that she did other than wrong, but because no nation in the world can be independent of the general effect of the economic position of one country and its relationship to the other. Only on that broad, general view shall we, I believe, find a solution.

I would like to refer briefly to two aspects of the Government proposals. Unlike many Members who have spoken, I attach more importance to the grant of £25,000,000 than to any other part of the proposal. I am entitled to say that because I have been advocating it for a number of weeks. Therefore I want some information on the point. As I gather, it is a mistake to assume that £25,000,000 is the limit of what may be spent. It can be the limit of Government liability, but considerably more money than that may be spent as a result of the scheme. I believe that there are great possibilities in the scheme. It is better than doles. Everybody agrees to that. It is better than work merely for the sake of calling it work, because that is never remunerative, and here is an opportunity for real reproductive work. Take a railway company—many I know are in the same position—which since 1914 has been wanting to electrify its system. Plans and everything else are ready to enable it to go on with the work. But to go on the market with 7, 8, or 9 per cent. debentures would make the undertaking impossible. It would make it un-remunerative in future. Yet here is a scheme that could be put into operation immediately, finding work for skilled and unskilled men, as well as carrying out all the things that are attendant upon it. But the' railway company or any other corporation concerned could not, because of the difficulties' of finance, hope to put the scheme into operation, because they could not get the money in such circumstances as that. I presume that is where the Government proposal would come in, and that that is the kind of thing that they have in mind. I could conceive of no more advantageous side of the Government plans than that. I realise that it may be subject to log rolling or favouritism, but that is so in everything. I understand that the Government desire to free themselves, as far as possible, from the suggestion of any abuses by the appointment of a Business Committee. Why not a Committee of this House? I cannot conceive a Business Committee which in some way or other would not be directly interested. It would be far better to have a Committee of this House than such a Business Committee.

When I come to the question of the municipalities I am not quite sure what the Government scheme is. If the scheme means adding to the liabilities of municipalities, I can only say that the municipalities have already reached the limit. There is not only the unfairness whereby one municipality, because of its prosperous position, can raise money on more advantageous terms than another, but the fact that municipalities have already exhausted their means of dealing with this problem. I would draw attention to the monstrous things that are happening at this moment. I am assured on the highest authority that certain boards of guardians in administering relief are making it a condition that if a working man happens to own a house that is a barrier to the receipt of relief until the house is sold. If there is one man more than another who ought to be encouraged it is the working man who owns his house. The best type of working-man citizen is the one who struggles to buy his own home. If he is thrown out of work and is penalised because of the sacrifice he has made, it is a monstrous thing. I ask the Minister concerned personally to look into that matter. Finally, I wish to refer to the insurance levy. Every Member on the Labour Benches joins issue with the Government on this proposal. In the first place, this is a national burden and it ought to be borne nationally. By this proposal the Government are exempting millions of workers and large masses of employers. The total amount that will be raised is £2,700,00.

Yes, from the State. The people who will pay this "tax" are the workers. Large numbers of them have already been subject to a reduction of wages, and large numbers have paid levies up to 7s. a week. There is hardly one of them who is not bearing a special levy at this moment to deal with the unemployed problem through his trade union. Such people ought not to be taxed further. There are many employers who very generously and fairly are running their works at a loss to-day in order to find employment for their men. The Government proposal will put a tax on them and will exempt the masses of people who are well able to bear the burden. We are in common agreement as to the need of supplementing the existing benefit, because in many cases the trade union funds are already exhausted and their members are in dire need. As far as the Members on these Benches are concerned we are unanimous in putting forward strongly the view that this is unfair. I conclude by saying I believe we have not reached bottom in this matter. On the other hand, I believe we have got to face the problem frankly and squarely. The Government measures we do not believe to be adequate, but we shall have an opportunity of dealing with the various Bills separately, and having listened during these two days to most of the Debate, one cannot do other than appreciate the spirit in which the question has been approached. None of us can minimise the evils or the sufferings of our fellow-citizens, and it is our duty, as I said earlier, not as a section or a party, but as a Parliament, to contribute to the most complete solution of this most difficult problem which we have to face.

I find myself in agreement with my right hon. Friend who has just sat down, when he says that we have had two days' Debate worthy of our reponsibilities to the people. Although there will be disagreement between us as to some of the views expressed, nevertheless we cannot set aside the recognition of the fact that this has been a Debate full of solicitude for the condition of those who have fallen upon the evil day of unemployment. Not only has it been full of solicitude for their condition but, broadly speaking, it has been a Debate not wanting—if I may say so, with respect—in generous recognition of our endeavour to meet this most complex and baffling problem. I thought my right hon. Friend the Member for Shoreditch (Dr. Addison), who opened the Debate to-day, was unnecessarily querulous, and I might almost say shrewish. But that is not going to blind me to the help he gave me when he was Chairman of the Cabinet Unemployment Committee earlier this year.

After the Prime Minister's comprehensive survey of the situation yesterday, I am absolved from the necessity of examining in any close detail the nature and volume of the problem the urgent necessities of which have brought us all here at this time. Of course the House is only too painfully aware of the fact that it is now 13 months ago since depression of trade and industry set in. It continued growing deeper and deeper without a break for 10 solid months. At the end of June we had in fact 2,170,000 persons registered as wholly unemployed and a further 1,000,000 registered as on short time. For the last three months things have been continuously, but very slowly, moving in the right direction. We have now about 1,375,000, as against 2,170,000, registered as unemployed, and about 308,000 registered on short time.

I know. The true position is not so favourable as that. We have over 600,000 persons who have for the time being exhausted their unemployment benefit. Nearly 400,000 of those have ceased to register, and we may be quite sure that the great bulk of those 400,000 are still out of work. Therefore, the true position is that the 2,170,000 in June wholly unemployed is now round about 1,750,0'00 wholly unemployed. That is the figure which the Prime Minister gave, to which my hon. Friend alluded, and as a question was asked yesterday, about 1,370,000 of those are men and 300,000 are women. Looking into the months immediately before us, we have got to assume, I think, that through the winter we shall probably have round about 1,500,000 people wholly unemployed, and the fact cannot be overlooked that this is the second winter in succession, because that alone makes the hardships of the situation far graver. That is the situation. It is, as the Prime Minister indicated yesterday, the direct and immediate heritage, which we bear in common with the world generally, of the awful smash-up of 1914–1918. Look at it. Trade union returns showed an average for the ten years prior to the War of 4·7 per cent. of their members unemployed. For no year in that ten did the average quite reach 8 per cent. In July, 1914, it was 2·8 per cent. In June of this year the trade union returns of unemployed were 23·l per cent. and the figure is now 15 per cent. Those are the trade union returns, but if I take the wider returns of the Insurance Act—and here the hon. Member for Pontypool (Mr. T. Griffiths) last night questioned the 17 per cent. of the metal trades; that is a trade union return, but the wider returns of the Insurance Act give a different figure.

I will take three big industries at this moment very badly hit. On these, wider returns, take the iron, steel, tinplate, and galvanised sheet manufacture—take that group—28·5 per cent. unemployed at this moment; shipbuilding, 28·3 per cent.; engineering and iron founding, 19·7 per cent.; and in those three big industries, so badly hit, there are nearly 2,000,000 workers. The depression, therefore, is not cyclical, it is cyclonic. [An HON. MEMBER: "And increasing."] In particular industries it may be, but the general trend is slowly improving in the last few months. Undoubtedly the task of getting industry on the rails again, with the wheels going round smoothly, will be exacting in its character and, I very much fear, protracted in its complete achievement. This is not a case of striking when the iron is hot; it is a case of trying to make the iron hot by striking it, which is a very much more difficult process.

Prior to the last Autumn Session, a number of us were commissioned to work out plans to meet the depression which afterwards began to develop, and when the House met a year ago yesterday the Prime Minister was in a position to set forth the steps which would be taken to mitigate the hardships of unemployment. Every endeavour was made, and has been made since that time, with the loyal and invaluable co-operation of the local authorities, many of them heavily burdened with the local commitments, which are growing, to try to make productive work outside the ordinary channels of industrial activity. In one way and another, during the year that has elapsed, work —mainly road work—has been found for at least 200,000 men, who would otherwise have been unemployed. There are to-day over 90,000 men still at work on those schemes not yet completed. From the Road Fund, from the grants made by the St. Davids Committee, and from funds raised by municipalities themselves, not less than £25,000,000 has been raised for the application to that form of work during the last year, and some of it, of course, is still in operation. I do want to say that that effort has been a most timely and most valuable effort. But this is what we have got to face. When all is said, it only touches a margin of the problem, though it certainly does meet, so far as it goes, the honest demand for work instead of doles. The fact is, it is not easy to make productive work outside the ordinary industrial activities of the country for large classes of the industrial population.

There are large sections—all the women, clerks, and artificers engaged on the more intricate and highly-developed: processes of industrialism—who cannot be helped by a mere pick-and-shovel policy. The fact is, do your level best, centrally and locally, there is no way of making work for large groups of industrial workers except at the looms, at the benches and in the workrooms, where they pursue their accustomed avocation, and which, to such a large extent to-day, are silent and deserted behind the closed gates and doors of factory, mill, and workshop. But, as I say, with the invaluable assistance and co-operation of the local authorities, every endeavour has been made to make work outside the ordinary channels of industrial activity to meet the situation. But much more than that had to be done. Failing work, we were bound to do what we could to mitigate, the hardships of the situation, and we did that through the agency of the compulsory Unemployment Insurance Act That Act, which came into operation a year ago, on a widely extended basis, has three times been amended to meet the situation as it arose. It provided 22 weeks' benefit from 3rd March to 2nd November. Our hope and expectation was that the provision—with occasional week's intermittent employ ment—would have covered the period in volved. Unfortunately for very many people, the hope of employment was not realised, the industrial depression was too deep, and the benefit began to be exhausted about the middle of August. Nevertheless, I desire to say that the Unemployment Insurance Act has been of the greatest value during all these long weary months of trade depression Let those who in this association rather loosely use the word "dole" please bear in mind that roughly three-fourths of the benefit has been provided by the contributions of employers and workpeople and only one-fourth by the Exchequer. [An HON. MEMBER: "The same thing!"] No, it is not quite, but very nearly. That is the short story of this long period of depression. Now, as to the task before us in the coming winter It is common ground that there is only one way of permanently curing the disease from which we are suffering, that is, if possible, stimulating trade and industry on an economic basis. That, I think, is common ground. That is our first main objective. We shall, as the House knows and the opportunity offers, go into the details of the question next week. We shall seek to do what we desire by a very material extension, and, I hope, a valuable extension, of the Export Credits scheme, and by guaranteeing—as my right hon. Friend the Member for Derby (Mr. Thomas) very correctly put it—by guaranteeing, up to £25,000,000, loans raised to promote capital works, of ultimate benefit to the country, and providing employment in this time of depression. In the meantime we have got to continue, with the help of the local authorities, to make work outside the ordinary channels of industrial activity, work for the execution of which we now offer the local authorities—and here I want the attention of my right hon. Friend the Member for Shoreditch (Dr. Addison)—in the case of approved works other than revenue-producing works, grants equal to 65 per cent. of the interest and sinking fund charges on loans raised, these grants to be paid by the State for a period of one-half the term of the loans, with a maximum of 15 years.

We do not. In the case of revenue-earning works the grants available will be 50 per cent. of the interest on loans raised for a period of not less than 10 years, the grants to be paid for a period of five years. In both cases—my right hon. Friend is quite right—the works have to be actively commenced before 1st January, 1922. He who gives quickly here gives twice. These people are waiting for work. We must not have red tape or circumlocution. We must get on with it. My right hon. Friend says it is impracticable. I was informed by the Unemployment Grants Committee this morning that 46 formal applications under the scheme had been received from 28 local authorities. The Unemployment Grants Committee has also received preliminary information from local authorities in the case of several hundred other proposals. So far, so good. That is not so "egregiously unworkable" as my right hon. Friend suggested at the outset of this Debate.

Further—and here I think there is some confusion in the right hon. Gentleman's mind—our effort in this direction of making productive work will be wider in its scope than it has been up to the present. The necessities of the case demand that. We shall include classes of work not so far assisted; which were not-assisted when the right hon. Gentleman was with us. They are forestry, land drainage and improvement, and light railways. This, to some extent, at any rate, will meet the case of the agricultural worker who, as the hon. Member for Wellingborough (Mr. W. R. Smith) pointed out, is outside the Insurance Act, and outside also the proposed Bill for providing some help for the dependants of unemployed workers.

Do you include water works and water schemes, hundreds of which were held up, and which would provide not only pick and shovel work, but for which delicate machinery would be required? Enormous schemes have been held up during five or six years owing to the War. The plans are ready to be got on with. It is only a question of financial assistance.

I am dealing now with making work of a wider scope than we have so far covered. There is the field of forestry, land drainage and improvement, light railways, and so on.

My right hon. Friend is well aware that the land drainage improvement and light railways were not excluded previously. That is not new.

But it will be operative now. My right hon. Friend, earlier on, said it would take a good long time before anything in the nature of a practical result would follow. I understand five schemes have already come in. Again, that is not so "egregiously unworkable." A circular went out on Saturday, and the Minister of Agriculture tells me that five schemes have already come in, and I know he will press them forward all he can. So far as the water works are concerned, the local authorities can put these proposals before the St. David's Committee, which can advance up to 65 per cent. of interest and sinking fund charges on loans raised in the case of non-revenue producing undertakings and up to 50 per cent. of the interest in the case of revenue producing undertakings. Again a scheme could be submitted. This, however, is of rather a different character from the forestry, land drainage and improvement, and light railways, as will be seen. In the meantime, while we are endeavouring to work out our policy of stimulating the trade of the country, and while the local authorities and ourselves are endeavouring to get going with the problem of making work outside the ordinary channels of industry, there is the immediate problem which stares us in the face—1,750,000 persons, wholly unemployed, with whom we have to deal. The House is aware that there is a new period of 16 weeks benefit, which may be 22 weeks, which starts at the close of the week after next. The benefit is 15s. for men and 12s. for women. I am arranging that the six days' waiting period shall be covered in advance and that half a week's benefit shall be paid on the 5th of November so that some small payment may be made to these poor people at the very earliest possible date.

This is the second winter in succession of continued trade depression. There has been a large amount of trade union help, but it is now pretty well exhausted. The household resources of these self-respecting people have been pressed into the service of furnishing the wherewithal of maintenance. Therefore we think that we are bound to try and do a little for the married men and women and the children dependent upon them. After all, you have now got down to a depth of unemployment where you have people unemployed who in all human probability may never in their lives have been unemployed except for a very short period, and many of these, no doubt, struggle on rather than have recourse to the guardians.

And when they do, if they own their own houses, they are told that they cannot have anything.

11.0 P.M.

Embarrassed as we are with a millstone of commitments round our neck, what we propose is this—and I was sorry to hear the right hon. Gentleman the Member for Derby (Mr. Thomas) say that he and his friends were opposed to our proposals. We propose to take the whole of the employers and employed persons covered by the Insurance Act, and ask them for six months to bear a further contribution which, together with a substantial grant from the Exchequer, will go to the women and children. I know the objection which is taken by the Labour party. They object to this proposal from the point of view of the additional contribution, and they say, "How can our people to-day face another direct charge upon their resources?" What I am asking the man lucky enough to be at work to do is to find another twopence per week for six months, that is 4s. 4d., or, let us say, 5s.; and that is to be augmented by contributions from the employer, and the Exchequer will furnish during the winter 5s. a week for the wives and 1s. for the dependant children of the men in insured trades but out of a job. I hope the Members of the Labour party will think twice before they finally resolve not to associate themselves with this proposal. A full opportunity will arise next week for examining this proposal in the Bill, but in my judgment the sooner we can get this thing going the better it will be for those it is designed to help. My hon. Friend the Member for North Armagh (Sir W. Allen) asked about the provision for Ireland. Ireland is covered by the existing Employment Insurance Acts, and from the 3rd November another period of benefit for 16 weeks will, as in England, come into operation, but this Unemployed Workers' Dependants temporary provision does not apply to Ireland.

I have pointed out that the existing Insurance Acts cover Ireland, but we do not propose to apply to that country this temporary provision for unemployed workers' dependants. I want to say this final word—

We have waited most patiently the whole of the day for some explanation why when you are amplifying and extending the Unemployment Insurance Act for the purpose of helping the wives and children of insured unemployed persons, Ireland is excluded from this provision. There must be some reason for it, and I must press for an explanation.

We think this is a provision which the Irish people might well make for themselves.

I really must press this matter. If the case so pathetically and magnificently stated from the Government Benches shows that this provision is absolutely essential in England to meet the horrors of unemployment, why are these proposals not applied to Ireland, where similar conditions exist?

We do not propose to apply this special emergency provision to Ireland. I want to make this appeal in the most public way to local authorities who have schemes in hand. For 13 months now I have lived with this problem day in and day out. I have been glad of the opportunity, but sorry for the necessity. I beg all concerned to get to work as fast as possible with any schemes they have in hand.

How does the right hon. Gentleman propose to deal with schemes which are submitted to him, but which cannot be completed before 1923? Will they be turned down?

Perhaps I had better discuss the matter fully with my hon. Friend. What I want to say, and I say it with the experience of the last 10 months in dealing with unemployment, is that it is most important that those who have schemes prepared for the purpose of relieving unemployment by providing work, should get to work upon those schemes as soon as possible. I have mentioned that a number of authorities have already come forward with schemes, and I am profoundly grateful to them for acting so quickly. This is peculiarly a case in which he who gives quickly gives twice.

In spite of the lateness of the hour, I think that anyone who has a contribution to make in this crisis should make it, and I desire to put forward one or two suggestions. Some hon. Members may perhaps want to go home to bed, but I would remind them that there are some men who will sleep very uneasily to-night. Evidence has been shown in the Debates of the last two days—most of which, like the right hon. Gentleman, I have heard— of the beginning of a complete revolution in thought in this country. There is widespread evidence, particularly amongst business people, of a complete reversal of our view of the Terms of Peace. Various hon. Members who have never before shown such symptoms of enlightenment have boldly stated what every business man in this country who thinks at all thinks to-day, namely, that the payment of this vast indemnity by Germany is one of the causes of the unemployment in this country, owing to the depression of the German mark and the effect that that is having upon our own people. I wish that the Prime Minister would follow his rather usual practice—which he seems to have missed lately—of allowing the breath of public opinion to blow him down a certain road, namely, that of reversing our whole conception of how we can make another nation pay for the result of the War. After listening to the Minister of Labour, I wish that before the coming winter we could make him Foreign Secretary, and the Noble Marquess who now adorns that post Minister of Labour. I am sure the right hon. Gentlemen would willingly change places, and I am sure they would each learn a very great deal. At any rate, the right hon. Gentleman, with his experience of the effects of foreign policy on the poor working people of this country, would make an infinitely better Foreign Secretary.

I have two suggestions to make for helping trade. One of them would cost no money at all, the other would cost very little, and both are very practical. The first is that, if you are going to subsidise certain undertakings in the country, it would pay us hands down to subsidise, nominally, the Post Office, and to restore pre-War rates of postage. That would give a tremendous fillip to British trade, and I do not think it would involve much loss, because I believe the present Post Office system is having the effect of diminishing revenue. That might, on paper, cost a little money, but I believe it would do a tremendous lot to help British trade to revive, and it could be done by a stroke of the pen to-morrow. The second thing which could also be done by a stroke of the pen, and would cost no money, is the suspension, by an emergency Bill passed in this House, of the Safeguarding of Industries Act. The hon. Member for Chippenham (Mr. G. Terrell) has told us, as the father of the Bill, that it is useless, and I believe that the whole merchant community would rejoice if it could be suspended. It is blocking our ports, it is hampering business, and is actually causing unemployment by keeping out of the country raw materials that are needed for industry; and it is the very policy against which the Prime Minister protested in the concluding sentences of his speech.

I want to draw attention to a most scandalous case that reached me this morning, and directly bears on the pleading of the Prime Minister yesterday for employers and employed to come together. In Liverpool there is great unemployment, as in other ports, including the one I represent, amongst seafaring men, and a committee of unemployed ships' engineers has been formed. These men were amongst the heroes of the War. At the instance of the Lord Mayor they approached the Liverpool Shipowners' Association, asking for a meeting, in the endeavour to solve the unemployment problem, on the 14th October, and the same day they got the following reply. I want to pillory this extraordinary body for a very scandalous attitude. They say:

I have a larger suggestion to make for dealing with this matter. There is direct unemployment being caused through the loss of a very important market through the Græco-Turkish War in Asia Minor, for which we cannot divest ourselves of responsibility. The Greek Army kept well out of the fight until we had beaten the Turks. They have been fighting ever since and have prevented all trade in what used to be a most valuable market for British goods, especially textiles. The War could have been stopped by us long since, and pressure should be brought to bear especially now the Greeks have been beaten and are in retreat—diplomatic and, if necessary, economic refusals of credits and that sort of thing—to bring about peace in Asia Minor. The only result of the War is to give employment to munition makers in this country, which is a scandalous trade, and I think is as bad as a woman selling her own body. There is an extraordinary paradox in the present state of the world. If we found ourselves next week at war with a Great Power in which we had right on our side there would not be an able-bodied man unemployed in the country, and this House of Commons would vote credits to any amount. If that is the case, is it impossible to reproduce the artificial boom of the War in peace times? I believe it is. The Government are only nibbling at the matter, and I am just afraid that their present schemes for credit advances will be futile as other similar efforts have been. War produces an artificial boom and gives artificial employment in the production of weapons of destruction. War destroys wealth, and then you get a slump. If you could produce an arti- ficial boom to restore the wealth of Europe which has been destroyed you would prevent the present unemployment. You would give employment at good wages and keep up the home market as well. At the end of that time you would have got the wheels revolving, transport restarted, and the fields in tillage. At the present time Germany is being sucked dry. There are others that are not. Take the case of Rumania. I take that case because she has not a Bolshevist Government. In Rumania only one-third of the fields are tilled by the peasants. They are now only growing enough food for themselves. In Rumania, of course, the trouble is depreciated currency. The shortage of rolling stock there is tremendous. They have only one-third of the locomotives they had before the War and territory two and a half times as great. Why should we not supply Rumania with the locomotives she needs and the rails and the other articles she requires, just as if she were an Ally and still fighting in the War and required them for the purposes of the Army? If the Greeks had come into the War a little earlier and required motor lorries, cannon, or anything of that kind, there would have been no question of payment at all. We would at once have found credits. If we could do that on a large scale when we were carrying on a war, surely we can do it when we are carrying on a war against poverty and anarchy? At the end of two or three years you would have restored the productivity of those countries.

There is another way, and it is for the business men of this country to combine with the business men of Germany for the development of the Russian markets. The potentialities of Russia were tremendous. That is what they are talking about in Germany to-day. Let us look upon Germany as allies and as requiring these goods for the common war against anarchy and poverty. I apologise for taking up the time of the House. I wish I could develop these ideas further, but I put the suggestions forward and hope the Government will accept them.

We have great reason to complain, not only as to the attitude of the Government in relation to this question as it affects Ireland, but especially of the attitude which has been adopted by the Minister of Labour in dealing with it. We are entitled to know why it is, if these proposals are of a character so advantageous as he and his colleagues have declared them to be, Ireland is denied whatever privileges are contained in them. We are entitled to know, if Ireland is not entitled to these privileges, what is the reason the right hon. Gentleman and the Government have to give for the position they have taken up.

The right hon. Gentleman's only excuse for the non-inclusion of Ireland in those additional benefits which are to be given —the benefit of 5s. to the wife of the unemployed person and 1s. for each child— is that this is a time of emergency. He means that a great emergency has arisen and that the action which the Government has taken is to deal, with the matter vitally affecting the lives of the people of these islands. Does not this emergency apply to Ireland? Does not the same condition of things exist there? You admit that they exist, because you propose to continue the payment of 15s. a week to men and 12s. a week to women, but this is the inconsistency, that while you continue these payments you are not going to give the 5s. to the wife of the unemployed person or the 1s. for each child.

In other words, the wives and the children are to suffer. There is to be no grant for them. If there is to be hunger in the homes in Ireland, especially in industrial Ireland, this coming winter, the wives and the children are not to count. Is that the position of the right hon. Gentleman? If that is his position, why does he not take the unemployed benefit from Ireland altogether, or treat Ireland precisely as he treats England, Scotland, and Wales? The State contributes considerably to these gigantic schemes which have been discussed during the last two days. At present the State is Ireland, England, Scotland, and Wales. Ireland has to contribute her share to the Imperial Fund out of which these benefits are to be paid, but while she is compelled to pay she does not receive a single benefit by one of these schemes. The right hon. Gentleman has not ventured to offer any explanation for what has been done. When the first unemployment measure was introduced into this House Ireland was excluded from its provisions. When the present Chancellor of the Exchequer, then Minister of Labour, was introducing his scheme at that time, I asked him why Ireland was excluded. He said that Ireland would have a Government or Governments of its own and could deal with the matter itself. That was nearly two years ago. Ireland has had no Government since, either English or Irish, and if we had been satisfied with the answer given by the right hon. Gentleman there would not have been a farthing paid to unemployed workers in Ireland during the last 18 months, but he had no excuse to offer unless the excuse that we should shortly be able to deal with these things ourselves. We should not have been able to do so because we had neither the Government nor the machinery, nor the power, nor the funds and the people would have been allowed to starve. But because of the fight we made on that occasion we secured the inclusion of Ireland in the scheme.

Here we come from a country that is paying £52,000,000 a year in taxes to the Empire. You come along with proposals to deal with these vital matters affecting trade, industry, and the appalling conditions that have arisen from the slackening of industry or the destruction of industry by the War, and Ireland is affected by it materially and profoundly. Yet, as another of the colossal stupidities —I will not use the word "malignities" —of their policy in regard to this and other questions, the Government proceed to tell Ireland and the House of Commons that Ireland, which is paying £52,000,000 in revenue to this country, is to be denied the 5s. a week for wives and 1s. a week for children that are to be received by the women and children of England, Scotland, and Wales, in order to meet a grave public emergency—an emergency of such a character that if, during the coming winter, working men are compelled to live on 15s. a week, and to maintain their families on it, it will be a case of enforced poverty and privation upon a section of the taxpayers, who will contribute their share of the funds out of which you are going to mobilise these various schemes.

There are 80,000 employed persons in Ireland to-day. It is not as large a number as it might be because, fortunately, and I trust still more in the happier days that are to be, Ireland is a potentially prosperous country. She is not only self-supporting, but is paying a tribute of £52,000,000 to Great Britain. Under the new conditions, when Ireland is able to fashion her own destinies according to the ideas of her own people, to create her own machinery, and make her own life, to inspire her own prosperity, and build up her own industry, she will have no need for unemployment doles—none whatever. But as long as we are connected with this country and as long as you enforce your rule on Ireland—as long as you have responsibility for the Government and administration of the nation, we are entitled at least to whatever benefits are to accrue from these schemes which are to be financed by the common funds of the people of the four countries. I do not intend to go into the whole general question which has been explored at such length, but I want to tell the right hon. Gentleman that when he introduces his Measure on Monday we will expect some clear declaration as to the policy he proposes to adopt with regard to Ireland. The absence of the Chief Secretary for Ireland is an incident of which we have some right to complain. The function of the Chief Secretary when he can spare his time away from other pursuits is to safeguard the interests of Ireland. No doubt the general idea of the function of the Chief Secretary is that he has to organise military forces to suppress the public sentiment of the country, but he ought to regard himself as a performer of dual functions. I think he is a Member of the Cabinet: was he present when Ireland was excluded from these benefits? If he was present, he must bear special responsibility. He should have been there to safeguard Ireland's interests, and to see that justice is done in this matter. Therefore, we will expect on Monday next a more elaborate explanation which we can deal with. The right hon. Gentleman, I am quite certain, as he has surveyed the question in all its aspects, cannot coldly view the situation in Ireland, for if he regarded these proposals as vital to the well-being of the family life and the comfort of the people in England, he must think of the condition of the unemployed in Ireland during the coming winter. He must have realised he has made a grave mistake in not applying this measure to Ireland. Sympathetic and human as I know him to be, he could not, although he sits on that Bench where there sit so many brazen-faces, be brazen enough to brazen out this most indefensible proposal to the House at half-past eleven o'clock at night. We expect a fuller explanation, however, on Monday next. The matter will not drop here. We shall continue it and pursue it, and I venture here to tell the right hon. Gentleman that the best thing would be for him to include Ireland in the benefits of the Measure and thereby prevent considerable discussion on the general question which is bound to accrue if he does not concede the demand Ireland has made on this question.

Question put, and agreed to.

Ordered, That the Bill be brought in upon the said Resolution, and that the Prime Minister, Sir Robert Home, Sir Philip Lloyd-Greame, and Mr. Hilton Young do prepare and bring it in.

Trade Facilities Bill

"to authorse the Treasury to guarantee the payment of loans to be applied towards the carrying out of capital undertakings, or in the purchase of articles manufactured in the United Kingdom required for the purposes of any such undertakings, and to amend the Overseas Trade (Credits and Insurance) Act, 1920, and the Overseas Trade (Credits and Insurance) Amendment Act, 1921," presented accordingly, and read the First time; to be read a Second time upon Monday next, and to be printed. [Bill 222.]

Unemployed Workers' Dependants (Temporary Provision) [Money]

Committee to consider of authorising the payment, out of moneys provided by Parliament, of any Contributions and expenses incurred under any Act of the present Session to make temporary provision for the payment of grants to unemployed workers towards the maintenance of their wives and dependent children, and to suspend the operation of Section twenty-seven of the Unemployment Insurance Act, 1920— ( King's Recommendation signified )— Monday next.—[ Colonel Leslie Wilson. ]

The remaining Orders were read and postponed .

It being after Half-past Eleven of the Clock, Mr. SPEAKER adjourned the House, without Question put, pursuant to the Standing Order, until Monday next (24th October), pursuant to the Resolution of the House this day.

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