Skip to main content

Commons Chamber

Volume 232: debated on Wednesday 4 December 1929

House of Commons

Wednesday, December 4, 1929

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

Private Business

Tyneside Tramways and Tramroads Company Bill [ Lords ],

As amended, considered; Amendments made; Bill to be read the Third time.

Ministry of Health Provisional Order (Fylde Water Board) Bill,

Read a Second time, and committed.

Oral Answers to Questions

Questions

American States (Loans)

asked the Secretary of State for Foreign Affairs the approximate amount owing by the individual States of America which defaulted in respect of loans raised by them for industrial purposes previous to the date of union; and whether it is proposed to re-open this subject with the Government of the United States of America?

As regards the first part of the question, I would refer my hon. Friend to the annual report of the Council of Foreign Bondholders for 1928, in which it is stated that while it has not been possible to obtain any reliable information on the subject, the sums owed by the defaulting States total approximately 75,200,000 dollars not including interest. As regards the second part of the question, His Majesty's Government do not consider that any useful purpose would be served by addressing representations to the United States Government on these debts at the present time.

Can the hon. Gentleman say whether any correspondence has passed between His Majesty's Government and the United States in the last year or so on this subject?

Is the hon. Member aware that in the case of Mississippi these claims have been proved in the Courts on several occasions, and, as. it is not possible to sue a State in the Courts and as the Federal Government have taken over the responsibility, will he take some steps in the matter with the Federal Government?

I have no doubt that His Majesty's Government will take note of the information given by the hon. and gallant Member.

Can the hon. Member say what is the amount of accrued interest in addition to the 75,000,000 dollars?

Turkey (Commercial Treaty)

asked the Secretary of State for Foreign Affairs what progress, if any, is being made with the negotiations for a commercial treaty with Turkey?

On the 2nd July last a draft commercial treaty was initialed, ad referendum to the two Governments, by His Majesty's Ambassador in Turkey and the Turkish Minister for Foreign Affairs. The draft treaty was carefully considered by the various Departments of His Majesty's Government concerned, and full instructions were recently sent to His Majesty's Ambassador with a view to the continuance of the negotiations.

Will the hon. Member see that there is some clause in the treaty which will prevent at any time the possibility of the importation of County-fed cereals into this country from this part of the world?

Mexico (Bondholders)

asked the Secretary of State for Foreign Affairs whether, as a result of a definite request made to him by the British Council of Foreign Bondholders for diplomatic assistance, he has yet asked His Majesty's Minister to Mexico to make suitable representations to the Mexican Government; and, if so, whether His Majesty's Minister has reported what has been done?

I would refer the hon. Member to the answer given on the 27th November to the hon. Member for East Willesden (Mr. D. G. Somerville), to which I have nothing further to add at present.

asked the Secretary of State for Foreign Affairs whether he will, now that he has been fortified by a request from the British Council of Foreign Bondholders for diplomatic assistance, invite the Governments of the United States, France, and Holland to join His Majesty's Government in a concerted endeavour to persuade the Mexican Government to honour its obligations upon defaulted securities of the Mexican Government?

The recent request of the Council of Foreign Bondholders only referred to the bonds of the National Packing House Company, in regard to which my right hon. Friend has already replied to the hon. Member. In the circumstances, no further question seems to arise.

I beg to give notice that, owing to the unsatisfactory attitude taken up by the Secretary of State for Foreign Affairs in regard to our losses owing to the default of the Mexican Government, I shall raise this matter in Debate at the earliest possible moment.

asked the Secretary of State for Foreign Affairs whether he has received any communication from the International Committee of Bankers on Mexico with reference to the situation in which holders of Mexican Government Bonds find themselves to-day; and whether he is prepared to make diplomatic representation on their behalf?

As my right hon. Friend explained in answer to the hon. and gallant Member for Epsom (Commander Southby) on the 20th of November, His Majesty's Government have received no request for diplomatic action from the British representatives of the International Committee of Bankers, and would not be in a position to take such action except at their request.

Can the hon. Member answer the last part of my question—as to whether he has received any communication or representations from this particular committee?

There has been no request for intervention, but there has been some information which has been of a confidential character.

Does the information consist of the statement made by the President Elect of Mexico, a few days ago, on this very point?

I have said that the communications have been of a confidential character, and therefore I cannot satisfy the hon. Member.

Russia

International Postal Union

asked the Secretary of State for Foreign Affairs whether he has any information that the Government of Soviet Russia has decided to withdraw from the International Postal Union?

British Relations

asked the Secretary of State for Foreign Affairs upon what date it is proposed to enter into the negotiations for the settlement of the outstanding questions with the Soviet Government?

No, Sir. Negotiations with the Soviet Government will begin as soon as possible after the Ambassadors have taken up their duties, but for the present I can give no actual dates.

Will the hon. Member take steps to ensure that the relations between the Soviet Government and the Third Internationale are clearly understood?

That does not arise on the question on the Paper. It is a matter of dates.

May I ask why the Foreign Secretary and the Under-Secretary of State are not here to answer these questions?

Diplomatic Privileges (Trade Representatives)

asked the Secretary of State for Foreign Affairs whether it is proposed to give diplomatic privileges to trade representatives of Russia; and, if so, to what extent?

The question of the privileges to be accorded to any Soviet Government trade representatives will receive careful consideration if and when a request for such privileges is made to His Majesty's Government.

Dominion Governments

asked the Under-Secretary of State for Dominion Affairs whether he has received any intimation from the Commonwealth Government as to the conditions on which they can agree to the Government's policy regarding Russia; and, if so, whether he can state the nature of this intimation?

I cannot add anything to the statements as to the general attitude of His Majesty's Governments in the Dominions made by my right hon. Friend the Secretary of State for Foreign Affairs in the course of the Debate on the 5th November, and in reply to a question by the hon. Member for Chislehurst (Mr. Smithers) on 13th November.

Cannot the hon. Gentleman tell us why this House has not been officially informed of the attitude of the Commonwealth Government, and as to whether it follows the attitude of its predecessor or not, in view of the fact that the views of its predecessor were amply explained in the Australian Parliament on 27th August?

I think, if the hon. and gallant Gentleman reads the reply which Was given by my right hon. Friend, he will see that the Dominion Governments have been kept fully informed of all that has taken place in connection with this matter, and they have not expressed dissent.

Egypt

Capitulatory Privileges

asked the Secretary of State for Foreign Affairs what is the number of Powers having capitulatory privileges at the present time in Egypt and their names?

The number of such Powers before the War was 15. They were the United States of America, Belgium, Denmark, France, Greece, Great Britain, Holland, Italy, Norway, Portugal, Spain, Sweden, Russia, Germany and Austria-Hungary. The privileges of the two latter were terminated in the Treaties of Versailles and St. Germain. They have, however, since concluded agreements with the Egyptian Government whereby their nationals enjoy provisionally the right of trial by consular tribunals in all matters for which those tribunals were competent up to 1914.

British Relations

asked the Secretary of State for Foreign Affairs whether His Majesty's Government still adheres to the statement made in the Foreign Secretary's letter to the late Prime Minister of Egypt that the terms-of the present treaty represent the extreme limit to which His Majesty's Government is prepared to go?

No change has taken place in the policy of His Majesty's Government in regard to the proposals which have been submitted to the people of Egypt.

Is it the correct interpretation of that letter that His Majesty's Government in no circumstances are prepared to make any further concessions in the Treaty with Egypt?

I am afraid I can add nothing to what I have said; that no change has taken place in the policy of His Majesty's Government.

Sudan (Egyptian Troops)

asked the Secretary of State for Foreign Affairs whether any conversations have taken place since the publication of the proposed Egyptian Treaty between His Majesty's Government and the Egyptian Government as to the return of Egyptian troops to the Sudan; and, if so, what was their effect?

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

Great Britain and United States (Visa Fees)

asked the Secretary of State for Foreign Affairs whether the case presented by the Travel Association of Great Britain and Ireland, in connection with the abolition of visa charges between Great Britain and the United States of America, has been considered by the Government; whether the Interdepartmental Committee appointed by the Government to consider this question has yet reported; if so, what was the nature of their Report; and what action the Government proposes to take in the matter?

The answer to the first part of the question is in the affirmative; the Interdepartmental Committee has furnished a preliminary report which is under consideration by His Majesty's Government, and a further meeting of the Interdepartmental Committee will be held early next week.

Will the hon. Member tell me when I may usefully repeat this question and get a definite answer?

Perhaps the right hon. Member will put it down again in 10 days' time, when I hope to be able to give a reply.

Poland

asked the Secretary of State for Foreign Affairs whether any protest has been addressed to the Government respecting the letter addressed to the Speaker of the Polish Parliament by over 40 British trade union leaders and Labour Members of Parliament, in which opinions were expressed on matters relating to the political situation in Poland?

Is it not a gross interference on the part of supporters of the Government in the domestic affairs of a friendly foreign Power?

That hardly arises out of the question on the Paper. Perhaps the hon. Member will put down a question on that point.

China and Russia

asked the Secretary of State for Foreign Affairs whether he has, in conjunction with any other Government, drawn the attention of the Soviet Government and of the Chinese Government to the terms of the pact of Paris and to its application to present conditions in Manchuria; and, if so, with what result?

As the hon. and gallant Member will be aware from the statement that was made on the 2nd of December by the Secretary of State for Foreign Affairs, the reply to the first part of the question is in the affirmative. Up to the present no reply has been received from either Government.

Has the hon. Gentleman seen the reports in the Press of the reply received by the United States Government?

On a point of Order. To-day is the day for questions to the Foreign Secretary, but neither the Foreign Secretary nor the Under-Secretary is here, and we can get no information out of the hon. Member who is replying.

I was asked by my right hon. Friend to express his regret that he is unable to be here to-day on account of another engagement. The reason for the absence of the Undersecretary is well known.

The hon. Gentleman says that the reason for the absence of the Under-Secretary is well known. I hope it is not because of illness. We do not know. Perhaps the hon. Gentleman will explain.

With regard to the Under-Secretaries I understand that the explanation is that owing to the uncertainty of their position, it was not thought advisable that the Under-Secretary should be present.

Royal Navy

Commanders-In-Chief (Shore Residences)

asked the First Lord of the Admiralty whether any official residences on shore are now maintained for the use of commanders-in-chief of squadrons or other flag officers serving afloat; and, if so, where they are?

Official residences are maintained for the Commanders-in-Chief, Mediterranean Station, America and West Indies Station, Africa Station, and East Indies Station at Malta, Bermuda, Simonstown and Trincomali respectively. In addition, the Commander-in-Chief, East Indies Station, has at his disposal an official bungalow at Diyatalawa Rest Camp; and the Commander-in-Chief, China Station, an official bungalow at Wei-Hai-Wei. No other flag officer serving afloat is in occupation of an official residence.

Has my right hon. Friend considered the question of economising on the four major residences mentioned?

No, I think that the circumstances of the duties of the commanders-in-chief require the present provision of residences.

Is my right hon. Friend aware that foreign ships have ample officers' accommodation?

I have not travelled widely, but I have seen enough of the conditions in the tropics, and in other warm climates, to lead me to consider that some provision of this kind ought to be made.

But my right hon. Friend does not propose that the Mediterranean Station should be treated as a tropical station? It is a perfectly healthy station.

Is it not a fact that the maintenance of these establishments is necessary for the proper performance of their duties by officers?

Bases (Caribbean Sea)

asked the First Lord of the Admiralty whether it is the intention of the Government, in connection with the present Anglo-American naval negotiations, to abandon the naval bases in the Caribbean Sea as having no longer any raison d'être ?

I would refer the hon. Member to the reply given to the hon. and gallant Member for Epsom (Commander Southby) on the 25th November (OFFICIAL REPORT, column 980).

Does the right hon. Gentleman not think that it would be a good thing to extend the undefended frontier to the Atlantic Ocean?

I have nothing to add to what I have already said in the House on this question.

Is the subject of naval bases included in the Five-Power Conference?

Is it not a fact that bases, as commonly understood, do not exist in the Caribbean Sea at all?

The actual position of bases in the West Indies has been referred to again and again, and I do not think it ought to be necessary to add anything now.

Is the right hon. Gentleman not aware that, although these bases must be up to date, if they were abandoned, it would probably cost more later to put them into proper order?

Singapore Base

asked the First Lord of the Admiralty if he will state the amount of the contributions paid and promised by the Governments of the Dominions and by other parts of the Empire towards the cost of the construction of the naval base at Singapore; and what part of the contributions paid over has so far been spent?

I would refer the hon. and gallant Member to the reply given by me to the right hon. Gentleman, the Member for South Molton (Mr. Lambert) on the 20th November (OFFICIAL REPORT, columns 463–4).

asked the First Lord of the Admiralty whether the whole of the expenditure involved in delaying or postponing work in progress at the naval base at Singapore will be borne by the home Government?

The liability of the Exchequer for the whole of the cost of the Singapore Base is limited only to the extent of contributions from the Dominions and Colonies. Any expenditure arising over and above what is received in that way must of course be borne by the home Government.

That does not answer my question. What I asked the Prime Minister was whether the Government would give an assurance that, whatever the cause of delay, the Dominions and Colonies should not have any of their money taken from them?

The position of any contribution from Dominions and Colonies was referred to specifically in the reply recently by the Prime Minister, who said that all these relevant considerations would be taken into account.

Surely the Government can give an answer now-and say that they do not intend to use this money (which was subscribed to hasten the work) in order to delay the work?

Can the right hon. Gentleman now tell the House whether any new expenditure will be in- volved in delaying proceedings, and whether the "break" clause in the contract has been claimed by the contractors?

I refer to possible negotiations, that is to say, that, if there were a final decision taken upon the question of this base, negotiations would have to take place, possibly with the contractors and possibly with the Dominions and Colonies, and it would be very unwise if anything were said to prejudice those negotiations.

Dockyard EmployéS (Pensions)

asked the First Lord of the Admiralty whether he will consider allowing dockyard employés to count all their hired time for pension?

Established dockyard employés with previous hired service are allowed to count one-half of such hired service for pension purposes. I am not prepared to recommend that hired time should be allowed to count in full.

Can the hon. Gentleman say why he is not prepared to support what is quite obviously a measure of justice?

Is any consideration to be given to the whole scheme of service for the employés in the dockyards, so as to prevent their retiring without any pension at all after 20 years' service?

With regard to the first supplementary question, I should say that, if we carried out the suggestion in the question, it would place the hired men in a position of advantage over the established men. It seems that a deduction of a proportion of the wages is made when the men are established. With regard to the other question, the matter is being considered.

The hon. Gentleman entirely misconceives the position when he says that. This is the question of a man drawing a pension after a lifetime of service, and of how much time he will be allowed to count towards that pension. It cannot prejudice anyone else but can advantage the man.

Cannot the Admiralty put these men on at least as good a footing as the conscientious objectors in the Civil Service??

Established Men (Unemployment Benefit)

asked the First Lord of the Admiralty whether he will consult with the Treasury regarding the bringing in of established men under some scheme whereby they would be entitled to unemployment benefit on retirement?

The answer is in the negative; established men are awarded retiring allowances in accordance with the provisions of the Superannuation Acts.

Is the hon. Gentleman aware that the retiring allowances are quite inadequate, and that in many cases, after a life-time of service, they are 7s. 6d. and 10s. a week, that men are compelled to retire at the age of 60 and cannot draw unemployment benefit?

The retiring allowances depend, of course, upon the amount of wages paid and the period of establishment. These factors are taken into consideration in fixing the superannuation.

Is any consideration being given to the question of one-sixtieth being counted for retiring 'allowance instead of one-eightieth?

Will the hon. Gentleman be kind enough to look into this question of the status of established men and the rate of pensions that they enjoy?

Dockyards (Clock-Muster System)

asked the First Lord of the Admiralty to what extent the clocking-in system has been introduced in His Majesty's dockyards; whether it has proved satisfactory; and whether it is the intention of the Admiralty to intro- duce this system in all His Majesty's dockyards, and when it will be put into operation?

The clock-muster system has been introduced in Portsmouth Dockyard; it has proved satisfactory, and the intention is gradually to extend it to the other dockyards.

Colonial Services (Dress Regulations)

asked the Under-Secretary of State for the Colonies whether any new regulations have been issued prescribing white mess-dress for officers in the Colonial Services; and what have been the views of the various governors on this suggestion?

Can we have your Ruling, Mr. Speaker, as to what is the position of the Undersecretaries of State at the present moment? The Government seem divided on the subject. It has been explained to the House that the Government thought it improper that the Undersecretary of State for Foreign Affairs should answer questions until his position had been regulated by the Bill now before Parliament, but another Undersecretary of State, in exactly the same predicament, is now rising to answer a question. Would it have been proper for the Under-Secretary of State for Foreign Affairs to have answered his questions; or is it improper for the Under-Secretary of State for the Colonies to answer the question which is now being put?

All the Undersecretaries of State sit, and are in exactly the same position now, as they were in yesterday or the day before, or any other day. Until the Indemnity Bill has passed into law, they do so at the same risk as before.

Then in your view, Sir, there was no reason why the Under-Secretary of State for Foreign Affairs should not have been present to answer Foreign Office questions in the absence of his chief?

There is no reason why he should not answer questions to-day any more than yesterday.

Is it not the case that there are now only six Under-Secretaries of State in this House; and, consequently, cannot these six Under-Secretaries from now onwards, answer any questions or take part in any Divisions? Is not the Bill of Indemnity to indemnify them against something which they had done prior to the recent re-shuffling of offices?

The answer to the first part of my hon. Friend's question is in the negative. The second part accordingly does not arise.

Has the hon. Gentleman's Department received replies from the various governors upon the regulations which were sent to them on this matter, as suggested by the Colonial Office, last June?

Palestine

Arab Families (Evictions)

asked the Under-Secretary of State for the Colonies the number of Arab families that have been evicted at Wady-el-Hawareth; and what steps the Government propose to take to look after these people?

Would the hon. Gentleman look into the question of the eviction of Arab families from lands which have been purchased—lands which have been in the possession of those families in many cases for several hundred years?

I shall be very glad to look into the question and receive any information which the hon. and gallant Member has to give on the matter.

Jewish Colonies (Defence)

asked the Undersecretary of State for the Colonies whether the 16 or 17 Jewish colonies who were still in possession of their arms under the colony defence scheme at the time of the recent outbreak will be allowed to retain them, at any rate until other and adequate means of defence are provided by the administration; and whether, pending a final decision as to the means of maintaining order in Palestine, the arms will be restored to those colonies which have been deprived of them during the last five years?

The question of defence of the colonies is at present receiving careful consideration, and it is hoped that an early decision will be taken. Pending that decision, I am not in a position to make any statement.

Is it quite clear that arms will not be taken from these defenceless Jews?

Is it not a curious commentary on the situation, that, after 10 years of government, it is necessary to arm these colonists?

May I congratulate the Under-Secretary on his new position and at the same time ask him whether we can be assured that the colonists who have still arms will be allowed to retain those arms; and is he aware that I hold in my hand a list of no fewer than 75 attacks on and murders of Jews which have taken place since this trouble?

I shall be very pleased to represent what hon. Members have said to my Noble Friend.

In view of the fact that it has been the declared policy of the Government to give equal treatment to Arabs and Jews, will they apply the same treatment to both in this matter, and not disarm the Jews while leaving the Arabs armed?

Wailing Wall, Jerusalem

asked the Under-Secretary of State for the Colonies whether the terms of the status quo in reference to the Wailing Wall are registered at Jerusalem; and whether the new regulations are in accordance with its terms?

Existing rights in relation to the Wailing Wall have not been authoritatively defined. It is therefore impossible for the terms of the status quo to be registered. The regulations were based on established procedure so far as it could be ascertained pending authori- tative definition; but I would remind the hon. and gallant Member that they are temporary and provisional, and without prejudice to the rights and claims of either party.

If the hon. Gentleman were to carry on the authorised procedure, would it not be far better for all parties concerned?

Anglo-Argentine Trade Agreement

asked the Under-Secretary of State for Dominion Affairs whether steps are being taken to bring the terms of the proposed Anglo-Argentine trade agreement to the notice of the Governments of the Dominions, in order to ascertain whether they are likely to conflict with any proposals which they contemplate submitting to the Imperial Economic Conference?

I presume that the hon. Member's question refers to the offer of the Argentine Government under certain conditions to reduce the duty on artificial silk. I would refer him to the reply which was given to the hon. Member for Devizes (Mr. Hurd) on 27th November, of which I am sending him a copy.

Is it not a fact that the reduction of duties on our artificial silk going to the Argentine has been made by the British Ambassador a condition of the declaration that there will be no restrictions in this country upon any imports?

That is not the question on the Paper. I have answered the question on the Paper—and, further, may I say that the whole matter is under consideration.

Imperial Airways, Limited

asked the Under-Secretary of State for Air the number and names of Imperial Airways, Limited, aircraft which have crashed; and the number of lives lost as a result of these crashes since the company's formation?

Since the institution of the company nearly six years ago, there have been in all five fatal accidents to aircraft of Imperial Airways, of which four were on regular service. The number of persons who lost their lives was 19 passengers, nine employés of the company, and one Government servant. There were in addition five accidents in which the aircraft was wrecked or seriously damaged, but none of these caused any personal injury. The aircraft were of various types but for the most part without distinctive names.

Is the hon. Gentleman aware of the serious allegations which are being made in regard to the "City of Rome"; and, if not, will he make inquiries?

I am not aware of any serious allegations. A question on this subject was answered a few days ago.

Has the hon. Gentleman had a report from the Italian Government regarding that matter?

Are the log books of the "City of Rome" in possession of the Air Ministry for purposes of inquiry?

As far as I know, the log books, if available, would be in possession of the Commission which has been inquiring into the accident.

asked the Under-Secretary of State for Air whether any subsidy is paid to Imperial Airways, Limited; if so, the amount of the subsidy; and what form of control the Ministry exercises in seeing that it gets value for its money?

As regards the first two parts of the question, I would refer my hon. Friend to Command Paper No. 3143 of 1928, in which he will find particulars of the subsidy which is being paid to Imperial Airways. As regards the last part, the contract entered into with the company ensures that payment is made only in respect of services actually performed in accordance with the terms of the contract, and specific provision is made for the verification by Air Ministry representatives of the data upon which mileage claims are based. Furthermore, there are two Government directors on the Board of the Company.

Is it correct to say that the subsidy granted to Imperial Airways, Limited, lasts till the year 1940?

It is a correct statement that the subsidy continues, I think, till about 1940, but it is a diminishing amount.

Is my hon. Friend prepared to state that they are receiving this subsidy for what they have done in real value, admitting that the subsidy lasts until 1940?

Is the amount received as the subsidy higher than that required for the dividend of 7½ per cent. paid on the shares of Imperial Airways, Limited?

Is there any condition attached to this subsidy that standard rates shall be paid to the workers?

Cranwell Aerodrome (Discharged Employes)

asked the Undersecretary of State for Air whether he is aware that the employment found for 45 men recently discharged from the works and building staff at Cranwell aerodrome, in Lincolnshire, was only temporary and that they were, after a short period, unemployed; whether any permanent work has now been found for them and, if not, how many are at present unemployed; and whether gratuities have now been paid to those employés discharged from Cranwell aerodrome who are entitled to them?

As regards the first two parts of the question, while I naturally regret to hear that these men are again out of employment, I am afraid that it would be impossible for the Air Ministry, and, indeed, outside the Department's province, to ensure that they obtain permanent employment after the work first found for them has come to an end. As regards the last part, all gratuities found to be admissible will be paid without avoidable delay. Payment has already been made in six cases, but in each case records of service going-back over seven or more years have to be carefully scrutinised.

Is my hon. Friend aware that the late Government gave a definite pledge that work would be found for these men, and, while he is not responsible for that pledge, will he do what he can to find work for them?

The answer to the last part of that question is, "Yes, certainly"; also I have to say that work was found for them, but it was impossible for the Ministry to guarantee that that work should be permanent.

Does not the discharge of these men arise from the fact that the system of private contracting was introduced by the late Government?

Transport

Road Construction

asked the Minister of Transport whether there are any proposals at present under consideration for the construction by his Department of new roads under the Development and Road Improvement Funds Act, 1909; and whether in such cases he proposes to use his powers under this Act to acquire the land on either side of the road to a depth of 220 yards, so as to secure to the public the full advantage of the increased value of land caused by the new road, and also to prevent the destruction of the beauty of the countryside by uncontrolled speculative building?

No proposals are at present under consideration for the construction of new roads directly by my Department. Should any such works he undertaken by the Department, the desirability of acquiring additional lands for purposes of recoupment will be very fully considered.

London Traffic (Government Policy)

asked the Minister of Transport when the Government expects to be able to present a Bill dealing with London traffic?

I can add nothing to the statement which I made in this House so recently as Monday last.

Will the right hon. Gentleman introduce his Bill before he commits this House to heavy financial commitments?

It is obvious that I cannot be financially committed without the authority of this House.

In connection with the statement to which the right hon. Member has just referred, did he make it before consultation with any of the interests concerned with the traffic of London?

I have been in consultation with the traffic interests of London on various traffic questions, but the view which the Government took was that when the Government's decision was made the House of Commons was the first body which was entitled to information thereupon.

Might I take it on that statement that no consultation took place either with any of the local authorities or with the private interests concerned?

Glasgow-Edinburgh Road

asked the Minister of Transport whether, in view of the amount of unemployment in Lanarkshire, he will speed up the work on the Glasgow-Edinburgh road as one means of relieving the distress in that county?

I am in close touch with the local authorities responsible for this scheme, and am giving them every encouragement and assistance in speeding up the work.

Since there are fewer than 400 men who have been given employment throughout the whole of the county of Lanarkshire by work schemes, will the right hon. Gentleman also extend his good offices to the building of new roads and other works in general throughout the county?

Certainly, at all times the Department is endeavouring to find work, and the hon. Member may be sure that I shall be as helpful as I can.

Third-Party Insurance (Motor-Cyclists)

asked the Minister of Transport if he will include a Clause to protect owners of motor-cycles against disproportionately high rates of insurance in his proposals to introduce compulsory third-party insurance?

I have no reason to suppose that disproportionately high rates will be charged in respect of any particular class of vehicle, and my hon. Friend will no doubt agree that rates of insurance for motor-cycles should be governed by the risks involved as in the case of other classes of motor vehicles.

Have the Government had under consideration an insurance scheme run under Government auspices?

Will the hon. Gentleman consider the practice of the New Zealand Government with reference to the insurance of motor-cycles?

I shall be perfectly willing to consider everything which is relevant to the problem, including the point raised by my hon. Friend the Member for Lincoln (Mr. R, A. Taylor), but we have not considered it wise to pursue it, having regard to assurances received.

Will the hon. Gentleman take care that careful drivers will not be penalised by having insurance rates raised—[ Interruption ].

Road Schemes, Durham

asked the Minister of Transport the number of schemes for roads that have been submitted by the Durham County Council; how many have been refused; and the reasons for such refusals?

Six schemes, estimated to cost £288,209, have been approved in principle as part of the Trunk Road Programme and, in connection with these schemes, works estimated to cost £208,209 are in hand. The county council have also recently submitted, as part of their Five Years' Programme, a list of seven schemes of road and bridge improvement estimated to cost £243,000. I am now awaiting the details of these schemes from the county council. The lists of works originally submitted by the Durham County Council have been the subject of discussion with officers of my Department, and the schemes to be included in the Five Years' and Trunk Road Programmes have been agreed. A grant has not been refused to any scheme included in these programmes.

Railway Passenger Facilities, Yarmouth (Fish-Workers)

asked the Minister of Transport whether he is aware that great dissatisfaction exists with regard to the railway arrangements for the conveyance of the Scottish women fish-workers to and from Yarmouth; that at South Town Station, Yarmouth, on the 28th instant, large numbers of women passengers were kept standing three-quarters of an hour in the rain before being allowed to board the train for a 24-hour journey in overcrowded conditions; and whether he will consider what steps he can take to see that proper treatment and more comfortable travelling conditions are afforded to those women?

I am informed by the London and North Eastern Railway Company that this complaint does not refer to Yarmouth South Town Station. I understand, however, that on the date mentioned by the hon. Member five special trains were booked out of Yarmouth Beach Station on the Midland and Great Northern Joint Railway. I am in communication with the Joint Committee in the matter, and will inform the hon. Member of the result.

Is the hon. Gentleman aware that this sort of thing happens every year, and that, if he does not take steps to prevent a recurrence next year, the whole thing will have been forgotten, and it will happen again?

The hon. and gallant Gentleman may be assured that I will take all possible steps within the powers of a Minister over a private undertaking. Unfortunately the information which he gave me as to the station caused some delay in taking any effective action, but he may be assured that I will do everything that I can to avoid this thing in future.

River Tamar (Bridge Scheme)

asked the Minister of Transport whether he has received a reply from the local authorities concerned to the offer made of expert advice and financial assistance towards the inquiries which will foe necessary regarding the bridging of the Tamar?

I have invited the highway authorities concerned to a conference at which the proposed crossing of the River Tamar will be discussed, and at the moment I am awaiting replies to my invitation.

River Thames (Traffic)

asked the Minister of Transport whether he will consider by what means, if any, more use could be made of the River Thames to relieve traffic congestion in the streets of London?

I would refer the hon. Member to the answer given by my right hon. Friend the Lord Privy Seal on the 26th November to a similar question of which I am sending him a copy.

I am asking the hon. Gentleman from the point of view of traffic, and not from the point of view of unemployment, how far it will relieve traffic congestion in the streets of London, for, in his position, he is responsible for advising the House on transport questions?

I assume in these matters that I am responsible for transport, and that my right hon. Friend is responsible for dealing with the question of unemployment.

Canals

asked the Minister of Transport whether, in view of the importance of the proper development and co-ordination of the canal system in this country, he is prepared to take the initiative in stimulating action in the matter?

I have already conferred with representatives of canal authorities, and asked them to consider schemes for the economic development of their undertakings.

Owing to the unsatisfactory, nature of the reply, I beg to give notice that I shall raise this matter on the Adjournment at the earliest possible opportunity.

Rural Roads

asked the Minister of Transport if he is aware that rural district councils are not carrying out the normal volume of work upon rural roads this winter, in anticipation of the cessation of their financial responsibility for this work as from 30th April, 1930, under the terms of the Local Government Act, and that, in pursuance of this policy, certain rural councils have already discharged their regular road maintenance staffs; and whether he will take such action as may be necessary to secure that the normal work on rural roads shall be carried on throughout the winter, and that rural councils who undertake any exceptional work on approved lines shall not be penalised but reimbursed for any expenditure so incurred?

The estimates of expenditure on the maintenance of roads by rural district councils for the current financial year were in excess of the estimates for preceding years, and no cases have been brought to my attention in which rural district councils are curtailing the maintenance of rural roads. If, however, my hon. Friend will give me particulars of any case where it is alleged that the rural district council have reduced their expenditure in pursuance of such a policy as that to which he refers, I will cause inquiries to be made. Should any rural district council desire to undertake further maintenance work on rural roads and to defray the expenditure from their own revenue account within the current financial year, I should be happy to consider a supplementary application for assistance from the Road Fund.

Electricity Supplies

Victoria Embankment (Lighting System)

asked the Minister of Transport whether the Electricity Commissioners have come to any arrangement with the London County Council in view of the jury's rider in the investigation held into the two London County Council subway fires which occurred in September, 1928, in which it was stated that the London County Council's electric system was obsolete and dangerous; and can he say whether his Department proposes to take any action for the purpose of minimising similar gas explosions in future?

The Electricity Commissioners inform me that the London County Council have adopted a new system of electric lighting for the Victoria Embankment, the supply being at low tension and involving a new system of cables laid under the footway and the removal of the old lighting cables from the subway. So far as my Department is concerned, no further action is being taken at present.

Can the right hon. Gentleman say whether this system is also being introduced to other cables, to avoid accidents like these in future?

I have no doubt that that is under consideration by the responsible executive authorities, but I understood that the question related only to the Victoria Embankment.

Hereford

asked the Minister of Transport whether the Electricity Commissioners sanctioned the recent sale of the city of Hereford's electricity undertaking to a company or trust; whether he has knowledge of offers being made to acquire other municipal undertakings, and, if so, which; and what steps he proposes to take to safeguard the cheap distribution of electricity throughout the country as distinct from its cheap generation, which was one of the main objects of recent legislation?

The Electricity Commissioners inform me that they have decided to hold a local inquiry before coming to a decision in this matter. With regard to other municipal undertakings, I have seen various references in the Press to proposals for acquisition, but I understand that no application for consent to any such transfer is before the Commissioners. In regard to the last part of the question, the Commissioners would not sanction any such transfer unless they were satisfied that it was accompanied by technical proposals conducing to the cheaper distribution of electricity.

Is the Minister keeping well in mind the fact that, while producing companies are placed under well understood limits as to price, companies which merely have the powers of distribution have no limit whatever put on them as to the price that they charge to the public outside London?

Special Orders

asked the Minister of Transport how many Special Orders for the supply of electricity are now under the consideration of the Electricity Commissioners; and what is the average time taken in getting such Orders through?

I am informed that there are 70 Special Orders at present under consideration by the Electricity Commissioners. The average time taken in getting such Orders through, including the stages of confirmation by the Minister of Transport and approval by each House of Parliament, is between 12 and 15 months.

Will the hon. Gentleman see that steps are taken to deal more promptly with these Orders, delay in which leads to irritation and expense?

Certainly; but I have to keep in mind the apprehensions of those who are a little concerned at the powers of rapidity which might be possessed by Ministers of State.

British Empire (Legal Disputes)

asked the Prime Minister whether the Government are prepared to consider the establishment of an alternative to the Judicial Committee of the Privy Council for the settlement of legal disputes between members of the British Commonwealth of Nations; and whether they have received communications on the subject from any of the Dominions?

No communications on this subject have been received from any of His Majesty's Governments in the Domin- ions. But the whole subject would, I think, be most appropriately discussed at the next Imperial Conference.

Is it a fact that certain discussions took place at Geneva during the Assembly of the League of Nations this year on this question?

Ministers' Salaries (Committee)

asked the Prime Minister whether he can state the names of the Committee which is to inquire into the question of Ministerial salaries and the terms of reference?

Will the Prime Minister consider including in the terms of reference that the Committee shall inquire as to whether any salaries of Ministers are in excess of the requirements and unnecessary?

The terms of reference will undoubtedly be open in that respect.

Will the right hon. Gentleman consider extending the terms of reference to cover also the possibility of paying a salary to the Leader of the Opposition?

Will the right hon. Gentleman consider the appointment on this body of a representative of the outside public who has never a chance of becoming a Cabinet Minister?

House of Commons

Members' Allowances

asked the Prime Minister whether, seeing that he does not desire to widen the scope of the inquiry into Ministers' salaries to include the question of the salaries of Members of the House of Commons who are not Ministers, he will consider setting up a separate inquiry for this purpose?

I would refer my hon. and gallant Friend to the answer which I gave yesterday in reply to a question by my hon. Friend the Member for Central Leeds (Mr. Denman).

Is the right hon. Gentleman aware of any considerable expression of opinion towards increased salaries for Members of Parliament?

No; all that I am aware of is that there have been opinions expressed on all sides of the House as to the necessity of considering Ministers' salaries, and before the terms of reference are finally fixed, if the equally important question of the position of the Leader of the Opposition ought to be discussed—I give no opinion about it—if there is general agreement about that, I am not at all adverse to drafting the terms of reference so as to make that In order.

May I ask the right hon. Gentleman whether the Opposition Whips will come into the terms of reference?

Does my right hon. Friend consider it possible to pick out one Member who is not a Minister, namely, the right hon. Gentleman the Leader of the Opposition, and leave out other Members who are not Ministers?

Does not the right hon. Gentleman consider quite seriously that this House has a greater obligation to those outside, namely, the unemployed?

So far as I have gathered from a long membership of this House now, this House is always aware of its obligations to the people outside.

I would like to ask the Prime Minister if he would extend the terms of reference of this Committee in order to see if it is not possible to take from those who have more than £400 a year, which is more than is necessary to maintain a man in a healthy life?

Is my right hon. Friend aware that my question yesterday did not necessarily imply an increase of salaries, but only a redistribution of the total amount paid in salaries, so that Members with special burdens should have a higher proportion?

Is the right hon. Gentleman aware that that proposal would mean that the hon. Member for East Nottingham (Mr. Hayday) would become a millionaire?

Strangers (Accommodation)

asked the First Commissioner of Works whether in view of the increased interest of the public in the proceedings of this House, he proposes to make provision for additional accommodation for the members of the public?

Government Departments (New Offices)

asked the First Commissioner of Works whether it has been decided to erect new blocks of Government offices on the site of Montagu House and the adjoining Richmond Terrace and reaching from Whitehall to the Embankment; and whether he can give any estimate of the cost?

A final decision has not yet been reached in this matter, and in these circumstances it is not possible to give an estimate of cost.

I take it, before there is any large expenditure of money on this purpose, that the right hon. Gentleman will come forward and ask the assent of the House?

As I informed an hon. Gentleman on this side of the House, no expenditure will be undertaken without the sanction of the House.

Is it really intended to increase staffs and Government Departments in view of the dislike of the country for these large extensions?

Government Contracts

asked the First Commissioner of Works whether it is the custom of his Department in any circumstances to allow contractors to amend, modify, or change the terms or conditions or prices of accepted or submitted tenders for contract or other work without any intimation or notice to competing firms; on how many occasions has this been done since May last; and whether he will say why such a practice has been allowed in a recent contract?

Prior to the acceptance of a tender any notification by a tenderer of an amendment of his offer is considered with due regard to all the circumstances of the case, including the interests of his competitors. Subsequent to acceptance no alteration is permitted save in very exceptional circumstances, and in no case is a variation approved which would have the effect of bringing the revised total above the amount of the next lowest tender. Records of such cases are not classified in such a way as to enable me to say without examination of a large number of individual contracts, how many have arisen since May. If my hon. Friend will let me know which recent contract he has in mind, I will give him the information he requires.

Houses of Parliament (Scaffolding)

63 and 64.

asked the First Commissioner of Works (1) whether he is aware that a certain area of steel scaffolding erected outside the House of Lords by a certain firm of contractors is unsafe; whether it has been declared unsafe by his Department; what steps, in view of the risks, are being taken for its immediate dismantlement; whether the dismantlement will be at the expense of the contractors or of his Department; whether he will give the name of this firm and say if this scaffold erection was strictly in accordance with the terms and specifications of the awarded contract; and whether this particular form of steel scaffolding will be barred in the future as unsafe; and

(2) whether he will give the names of the firms who by invitation submitted tenders for the erection of steel scaffolding for the external repair of the wall of the House of Lords on the last three occasions; whether the firm which secured the contract has fulfilled the terms of their agreement; whether the scaffolding erected by them is safe; whether officials of his Department have reported on this scaffolding; whether this firm is still being allowed to continue its contract of providing scaffolding, even though its subsequent prices are now equal to or greater than that of competing firms who simultaneously tendered; and why this procedure has been adopted?

I assume that these questions refer to the latest contract let for the erection of scaffolding on the south front, and, with my hon. Friend's permission, I shall deal with both in this answer. When tenders were invited for this work, a general specification only was issued and tenderers were asked to quote for the particular type of scaffolding they would propose to supply. The contractors in this case are Messrs. Scaffolding (Great Britain) Limited. The work so far done under this contract is not, and has not been declared unsafe, but certain modifications of the construction as originally proposed by the contractor have been decided upon which do not involve dismantling or any increase in the contract price. The scaffolding will not be accepted on completion unless the Department is satisfied that the work is in accordance with the terms of the contract, not only as regards safety, but in all other respects also.

Is the present system of iron sockets as safe as lashing with wire and rope?

Being a novice in such matters, I have to take the advice of my advisers, and I am assured that the scaffolding which is being put up here is quite safe.

Is the latter part of Question 64 correct, that the price will be higher than some of the higher tenders which were put in?

Coal Industry (Explosions)

65 and 66.

asked the Secretary for Mines (1) how many lives have been lost through explosions of gas this year; and whether in any of the mines where explosions have occurred an approved automatic gas detector has been in use;

(2) whether, in view of the serious loss of life incurred recently from gas explosions, he is considering the advisability of making compulsory the use of an approved automatic gas detector in gaseous mines?

There have been 11 explosions this year, in which 28 persons have lost their lives. So far as I am aware, the only gas detector in use at the mines concerned was the flame safety lamp. I am advised that it is unlikely that the use of a different gas detector would have prevented any of these explosions, six of which appear to have originated at open lights. Gas detectors other than flame safety lamps are still in a comparatively early stage of development, and the basis of experience in their adaptation and daily use below-ground is not yet sufficiently broad to enable my advisers to judge finally of their complete reliability and practical value as compared with the flame safety lamp.

Will my hon. Friend say how many automatic gas detectors have already been approved by his Department; and can he state any real reason why it has not been made compulsory upon mine-owners to use them, seeing it is known that their use would have saved a considerable number of human lives?

If the hon. Member will put another question on that point, I will answer it.

May I ask my hon. Friend whether, in the absence of gas detectors, he takes precautions to see—[An HON. MEMBER: "We cannot hear!"] Well, I am not speaking to you, as it happens. Will the Minister see that proper precautions are taken—

On a point of Order, Mr. Speaker. May I ask if hon. Members on the other side are not interested in saving human lives? [ Interruption. ] I am asking in the interest of the lives of the people whom I represent. I want to know if proper precautions are being taken in the mines to find gas where it is in existence, so that lives will not be lost by explosions from shots, and that sort of thing.

Very extensive inquiries and investigations have been made into these lamentable accidents, and I shall take the advice of our experts and advisers in order to secure the end in view.

May I ask the hon. Member whether any automatic gas detector has already been approved by his Department, and, if so, can he give us any reason why it has not been made compulsory to use it?

If the hon. Member will put down that question, I will try to get the information.

Iron-Ore Mining Royalties

asked the Secretary for Mines the amount of iron-ore mining royalties paid in Great Britain for the year 1928; and if he will state whether it is his intention to free the industry from royalties?

I regret that the information asked for in the first part of the question is not available. The answer to the second part of the question is in the negative.

Is it not a fact that the amount paid is something like 2s. or 2s. 6d. a ton? [ Interruption. ] Well, I am told it is about 2s. or 2s. 6d. a ton, and can he give any reason why this extra price should be changed when mining royalties on coal are only about 6d. per ton?

May we take it that the Government have abandoned any intention of acquiring mining royalties?

Telephone Trunk Calls (Timing)

asked the Postmaster-General why the practice of toll telephone exchanges to inquire whether a subscriber telephoning required an extension of time has been changed, without warning, to one under which a mere notification is given of the expiration of three minutes, six minutes, &c.; and whether, seeing that these notifications do not pretend to be accurate and are not used as the basis on which charges are made, and that a subscriber can only avoid the risk of surcharge by keeping his watch in his hand while telephoning, he will say whether he will consider some system more fair to the subscriber?

The change referred to, which was given full publicity in the Press when it was introduced on the 1st of May last, was made in the interests of numerous habitual users of the trunk service who were inconvenienced by the interruptions caused by the telephonist when offering successive extensions of time under the old procedure. Simultaneously, subscribers were given the substantial further benefit of being able to extend calls by one-minute chargeable periods instead of by three-minute steps, on all distances over 35 miles. As an approximate guide to subscribers, the operators are instructed to notify the passing of time 10 seconds before the expiry of each three-minute period. These notifications are, generally speaking, fairly accurate, but I am considering whether greater accuracy can be attained by mechanical aids. I may add that in most other countries, including Germany and America, no notification at all of the lapse of time is made to subscribers during trunk calls.

Will the hon. Member not consider giving 20 seconds' notice instead of 10 seconds' notice?

Business of the House

May I ask the Prime Minister when it is proposed to take the Lords Amendments to the Widows', Orphans' and Old Age Contributory Pensions Bill?

We propose to ask the House to consider these Amendments as the first Order to-morrow, so that the Bill may become law at the earliest possible moment, and arrangements may be made for paying certain of the pensions next month. I understand that the Bill will not take very long.

New Member Sworn

Right Hon. Sir Arthur Herbert Drummond Ramsay Steel-Maitland, baronet, County of Warwick (Tamworth Division).

Buildings (Escape from Fire) Bill,

"to make further and better provision with respect to means of escape from buildings in case of fire," presented by Mr. Graham White; supported by Sir Robert Newman, Mr. Dukes, Mr. Foot, Mr. Tinne, Mr. Egan, Dr. Burgin, Mr. Philip Oliver, and Mr. Thomas Snowden; to be read a Second time upon Wednesday next, and to be printed. [Bill 91.]

Message from the Lords

That they have passed a Bill, intituled, "An Act to confirm certain Provisional Orders of the Minister of Health relating to Exeter and Romford." [Ministry of Health Provisional Orders Confirmation (No. 13) Bill [ Lords. ]

MINISTRY OF HEALTH PROVISIONAL ORDERS CONFIRMATION (No. 13) BILL [Lords]

Read the First time; and referred to the Examiners of Petitions for Private Bills, and to be printed. [Bill 92.]

Co-Ordination of Defence Services

I beg to move,

My simple proposition in this Motion is that it is well worth the time of any deliberative and any legislative assembly to consider whether, by international action, anything can be done to bring about a reign of more secure peace and a less feverish anticipation of warlike measures. I agree that this subject of the reduction and limitation of armaments is not a new one, and no new Member presuming to address this House would do other than consult the records of this House for similar Motions in the past. May I pay to hon. and right hon. Gentlemen who have taken part in previous Debates on Motions of this character the tribute which I should wish to pay them for having discussed the various angles of this subject so fully and so frequently. But that is no reason why this afternoon, in 1929, towards the close of the year, we should not again review and survey on a wide scale the progress that has been made towards making a reduction and limitation of armaments possible in order to see whether there is anything which we can do to hasten the time when our aim will become more general.

Before proceeding to analyse the terms of the Motion before the House, may I make one or two observations of a more general character. In the first place, may I say that there is nothing in this Motion which refers to disarmament in the sense of depriving a country of its methods of defence. I am talking in terms of reduction and of limitation. This is not a Motion of a mere pacifist or a visonary; it is intended to be a restatement of the case of an essentially practical character. I want to place on record that speakers on the reduction and limitation of armaments should take into consideration the fact that, while it is within our competence to reduce our own forces in such a way as we think proper, we are not free to give away measures for protection of those who depend upon it. It is a cardinal principle underlying the whole of the proposals which I am submitting to the House in this Motion that full recognition at all times is given to the fact that there are small nations and groups of people the wide world over who look to this country's Defence Forces for their protection, and we must be most mindful, in dealing with any proposals for the reduction and limitation of armaments, not to overlook those considerations, in fact, this Motion involves the recognition that our armaments depend upon our commitments, and that our commitments depend upon our policy.

May we look for a moment at our commitments? We are fortunate in being able to say that never was the Empire more closely knitted together. It is true that the great Dominion of India, the great Dominion of South Africa, and indeed other parts of the African Continent to-day present great difficulties to deal with which will make calls upon our statesmen, but we are fortunate in being able to say that the Empire, after the Great War, is as strongly bound together as ever it was, and, the bonds binding the responsible members of the Empire to the Mother Land are stronger perhaps than they have ever been at any previous period in our history. With the world at large, we certainly stand at peace. We meet to-day with a considerable measure of satisfaction at the worldwide appreciation of the fact that the influence radiated from Geneva is steadily increasing in force and volume, and is being recognised by every country in the world. We feel conscious of the fact that that process with the great English-speaking Republics on the other side of the Atlantic is cemented and secure and appears to be extremely healthy. The friendship between the United States of America and this country is not, as is frequently interpreted on the Continent of Europe, a friendship intended to put the English-speaking people on one side against the world on the other. It is nothing of the kind. It is most essential that that point should be emphasised, and that none of the countries of Europe should imagine that the relations between this country and the United States contain anything of ill-significance for the Continent of Europe or our European friends. The Pact of Paris is an accomplished and signed document. There are many people to whom the words of that Pact convey a special message. May I remind the House that the governing words of the Pact of Paris are expressed in this form:

If our relations with one another could only be sought by peaceful means and be the result of peaceful and orderly process, I think that process might be more forcibly pronounced. It would ill befit any Member addressing this House to seek to pay compliments to the Prime Minister in respect of his visit to the United States of America; but it is a simple truth to state that the entire world realises that that visit has been pregnant with great consequences for the people of the world as a whole, and I do nothing else than a mere duty in subscribing to that statement, and in saying that, although the ship still, no doubt, has some way in a direction towards war, the order to go astern has already been given by the telegraph, and it is but a question of time for that order to take effect. I have not proposed in this Motion to review in anything but the sketchiest character the moral arguments that exist in favour of the reduction and limitation of armaments. It is well within the knowledge and recollection of this House that the question of reduction and limitation of armaments came within the 14 points, that it came within the Peace Treaty, that the terms of that Peace Treaty have been carried into effect as far as our ex-enemy countries are concerned, that disarmament has been effectual and actual as far as they are concerned, and that they were told at the time of the signature of that Treaty that this was only a beginning, that this was preparatory to a general reduction and limitation of armaments by the world as a whole.

That has been made clear by our own spokesman in the Assemblies of the League of Nations at Geneva time and time again. It was stated in the most clear language possible at the time of the conclusion of the Locarno negotiations, and it was affirmed in this House and outside this House by those responsible for Locarno in very clear and emphatic language. No accusation is made. I am not here to complain that this movement for the reduction or limitation of armaments has been hindered or thwarted. I am asking or expressing the hope that it may be proceeded with vigorously, and that we may take any steps open to us as a country, as a House, to facilitate it. I am, of course, aware that until quite recent times the question of the attitude of the Union of Soviet Republics has naturally agitated the world, and in order merely to state that the point has not escaped my notice in the preparation of this Motion, I desire to say that I am not one of those who feel capable of casting doubt upon the sincerity of a great country when proposals with regard to reduction and limitation of armaments are made in the international parliament of the League of Nations. Russia has made an offer—it may be a gesture—I care not what it is, but it is a statement that requires some sort of approach and answer in return, if only amongst the steps that are taken by this country, when relations are resumed, and when increasing trading operations with Russia take place, there is some attempt to examine, calmly and rationally round a table, the degree of well-meaning intention there is behind the Russian proposal. It seems to me that the fact that Russia made the proposal is significant. The terms of the proposal itself are equally significant, and anything that can encourage Russia to continue with that proposal and to explain in detail what she means, would be time well spent.

The moral argument in favour of the reduction and limitation of armaments is overwhelming, and it need not be stressed. May I pass for a moment to the economic side? At the International Economic Conference in 1920, calculations by learned statisticians were placed before the Conference showing that one-fifth of the entire productive efforts of the nations of the world were substracted from profitable purposes and were devoted to armaments, their upkeep and their manufacture. The statisticians stated, as a question of fact, that in 1920 the world could not afford it. If that were true in 1920, it is the more, and not the less, true in 1929. I have not made any personal calculations to indicate whether one-fifth is still the correct proportion in 1929. I am not in a position to say to this House that the facts in 1920 are identically repeated in the year 1929, but we know that, whatever efforts at reduction have been made, in many cases reduction in men has not been very conspicuous. We know that in the abstraction of productive efforts there is still an abstraction of far more than the countries of the world can afford in mere terms of feeding, clothing and ministering to the needs of the populations. The economic grounds are simply that the world is unable to afford the maintenance and upkeep of armaments on the present scale. We learn or we perish. The all-compelling arguments which have been made so constantly on the Floor of this House apply with very particular point in a matter of this kind. We are discussing ways and means of devoting to productive purposes of the State man-power and brain-power, which is at present not placed to its full use.

In preparing for this Motion, I have, as was my duty, read widely and in languages of different countries, to test the feeling of the world on this subject, and I find a current of opinion which, I think, worth while bringing to the attention of this House. There seems to be a growing opinion that the real task of the future is different from what it was in 1914. In 1914 the armaments of the world were quite frankly preserved in order to deal with the possibility of the outbreak of war. It seems that in 1929 the real task before statesmen of all countries is to see whether there is a risk to ordered civilisation. Ordered civilisation may be threatened by many forces, but it is open to question whether armed defences of the Navy, Army and Air Force are necessarily the right method of combating them, and I venture to suggest that much fruitful inquiry may be made into any question of the possibility of danger to the existence of the fabric of civilisation, and to see whether more research and less spending, more thought and less armaments may not, perhaps, be a better defence in the long run to this Empire, this country or, indeed, any country in the world which is dealing with a menace to its ordered government.

In looking at this Motion I feel that some may say: Has not Great Britain already set the lead by reduction and limitation of her armaments? I gladly pay tribute to all efforts, from whatever side of the House they may have originated, that have been made to give a lead, and this country has given a lead in naval and military affairs, in offering, and in carrying that offer into execution, to reduce its armaments. But this Motion does not propose that this country should take a lead by still further reducing our own national armaments. This Motion, phrased expressly to deal with a practical matter, is to the effect that international effort is necessary, that international action should be stimulated by something from this side, not necessarily by the reduction of armaments, but very likely by an intensified campaign, a propaganda campaign with other countries carried on at Geneva and elsewhere, to show that we are serious, to show not only that we do reduce our own commitments and our own armaments as far as possible, but that we are genuinely sincere in our desire to see that that becomes of a general character.

Could we do more than has been done? I, personally, think we could. I think we could spend more on research, as I have just indicated. The last cutting down of expenditure which I would willingly sanction, would be the cutting down of expenditure dealing with research, either in the construction of vessels or in the construction of aircraft or the mechanisation of the Army, and, of course, that great field of research, chemical warfare. I will deal for a moment, if I may, with one point which strikes every student of this subject very forcibly. I refer to the question as to whether a battleship is still the most profitable method to this country of spending £8,000,000. As I understand the case with regard to a battleship, it costs a little over £8,000,000. It is admittedly a liability from the moment it is launched. It costs approximately, I understand, £500,000 a year in upkeep and replenishment, and it, obviously, cannot pay a dividend, except that dividend be in the form of protection, of security which it affords. The whole question of naval construction is one of the matters to which, I hope, research will be devoted, for it is a consideration whether the construction of battleships in these days of wireless, of controlled gunfire, of the possibility of hitting a target from a position entirely out of sight, is the best return in terms of defence for the money it necessarily costs. I do not intend to pursue the topic at any length, because it is my purpose to open the inquiry into this matter, but I do say that we cannot, in the fields that seem to merit consideration, overlook the question whether the battleship as a unit is not more expensive now and less productive of real security than it was in the days gone by.

With regard to military armaments, we are witnessing a change from the old Army of the foot-soldier to an Army of a mechanised character, to machines, to various forms of rapid transport, and there is taking place, consequently, in our arsenals, something of the character of that which would take place whether there was a very much bigger reduction or limitation of armaments or not. Large numbers of those who formerly had occupation are finding themselves without it, and large numbers who before were not employed are being taken on. There is, in other words, a complete change of character in the nature of Army requirements. Then, again, there seems to me to be a field for very considerable research, for the possibility of international agreements, for the possibility of international understanding. As for air armaments, nothing will, of course, side-track me into recounting the luncheon on R.101, but I am bound to put the question whether civil aviation ought in any sense to be controlled.

Those of us whose professional or business occupations necessitate our flying from one European capital to another are conscious of the enormous developments that are taking place with regard to civil aviation. Those of us who have devoted any sort of study to the importance of the convertible factory, those of us who remember the old Badische Anilin- und Sodafabrik at Ludwigshafen as a mere innocent producer of dyestuffs, and then as the tremendously powerful munition factory from which gas-filled bombs emanated—those of us who have those recollections think with what ease a machine-gun can be installed in a pilot's cockpit in a three-engined aerial liner, and we wonder whether the difference between a civil aeroplane and a military aeroplane is anything much more than the difference of the letters on its side or the colour under its wings. The days of the armoured aeroplane are yet to come in any real sense, and I say without fear of contradiction that, although of course civil aeroplanes are much lighter in construction, and are no doubt different in their character, because of their passenger, mail, and freight-carrying possibilities, from the military aeroplane, the similarity between the two is sufficient to alarm the ordinary man in the street in the countries of the world. Alarm of that kind is far more likely to be a serious obstacle to the reduction and limitation of armaments than even the well-founded objection to the aeroplane itself.

With an absolute desire to be practical, the question I ask myself, in moving this Motion is, "What, if you were in the Government of the day, and were called upon to answer a Motion of this kind, would you suggest that you should do?" That you should stimulate international action for the preparation of a Treaty: that is my answer. This must not be an isolated step. One country cannot disarm in a world that is armed. This must be step by step, by agreement with other countries, by discussion round a table; and, although the discussions that have taken place in connection with the Preparatory Commission may seem to have been very lengthy and very patient, I venture to think that they are all worth while, for the habit of discussion for the inclusion of any subject in any Treaty means an investigation and a study of that subject, by those who are involved in the preparation, of quite a different character from that which they have ever devoted to it before.

Why should there not be regional disarmament? Why should there not be local disarmament, or local reduction of armaments—I have used the wrong expression? I mean, why should you not deal in a particular locality with a disturber of the peace? The analogy of the users of wireless who are disturbed by the new transmitting station at Brook-mans Park comes forcibly to the mind. Everybody who lives within a certain number of miles of that new transmitting station knows that there must be much patient adjustment of the different receiving sets possessed by those who live within a certain number of miles of it. Why should there not be some similar arrangement in those parts of the world which lend themselves to it? Why should there not be some mutual agreement between the countries concerned to reduce and limit their commitments to the minimum possible? That has been done with Central American States. I should have thought that it could obviously have been done with profit with the Scandinavian countries, and I should have thought that it was worth consideration whether it could take place with an inland sea such as the Mediterranean, and whether the Suez Canal could not, perhaps, be brought under some similar conditions. I hesitate, naturally, to suggest it for the Balkan countries. Hon. Members are aware of that familiar fire- work known as the Catherine Wheel. When a light is applied to it at any point, there is a continual revolution until the powder is extinguished. It seems to me that that is a tragic but not wholly untrue description of the Balkan countries; if a light were applied anywhere, there would be continual revolution until the powder was extinguished. But I am not sure that, even with these Balkan countries, there might not be some similar arrangement.

I mention one other point before proceeding to a different topic. In dealing with this question of reduction and limitation of armaments, may I assure the House, at a time when unemployment is rife, that I have devoted consideration to the question of those who would be displaced through any such agreement being arrived at? In the programme of the party to which I belong, careful study has been devoted to the dockyards and arsenals of the nation that are affected, either by a change in the conditions of the Army or by any question of reduction, and the broad suggestions that have been made—I will not weary the House with them in detail—are that, inasmuch as these establishments—dockyards and arsenals—have only the one customer, the Government, the Government should ration its programme of orders so that there should be continuous work, and that when, by reason of reduction or of change of character in the Army, the Navy, or the Air Force, there is to be a reduction of personnel, care should be taken, under the Development Committee or whatever it may be called,to see that an attempt is made to attract to the locality some alternative industry to take the place of the Government industry that is leaving it. It seems to me that those are points which would commend themselves to Members of this House.

In conclusion, may I say just two or three words on the final sentence in the Motion, dealing with the co-ordination of the Defence Forces of this country? Those of us who have looked into this matter are of opinion that the co-ordination of the Defence Forces of this country would be a step in the direction of rendering reduction and limitation of armaments more possible and more easy to attain. Debates have taken place in this House on the subject of a Ministry of Defence within quite recent times, and I do not propose to go in detail over the arguments in favour of setting up such a Ministry. But I do desire to say that there appears to be a somewhat general opinion that such a Ministry would make for economy, would render the discussion of these matters easier, and would certainly avoid anything in the nature of competition between the different Services of the Crown, either in orders or in procuring any particular service. While that is being discussed, while the question of a Ministry of Defence is, perhaps, being taken into account, let me say that one would not suggest doing away with the present branches of Navy, Army and Air Force, so much as the creation of some body above them which would deal with all three.

May I raise a matter that has been mentioned across the Floor of this House more than once? May I make the suggestion that, perhaps, as a step in the right direction, we might consider whether the War Office should not in future be called the Army Office? The substitution of one word seems a small point, but it is a gesture. Why should we go on labelling a part of our country's essential Government Offices as consisting of something with the word "War" in it? This is not a pacifist suggestion; it is a practical one that is put forward in the belief that, particularly with our American cousins, matters of this kind do count, and that the tendency of modern opinion is to get rid of the word "war," of the phraseology of war, of the war-like mind, to re-write some of our history books and some of our textbooks, to begin, rather, a new era, and to substitute the word "Army" on the same lines as we speak of the Navy.

Therefore, I bring this Motion before the House, and I would conclude simply on this note. In all social service legislation the test is, as it appears to me, is the individual in this country able to obtain the fullest individual life and expression? In any Imperial policy, it seems to me that again the test is, is every constituent part of the Empire able to enjoy all its loyal aspirations to the full? The test of any international policy seems to me to be on somewhat similar lines. While giving due account to all the individual aspirations of each country and each sovereign national unit, are they able, in an international atmosphere, to have the fullest possible national life? In a well brought up family, every member round the family table is able to exercise individual freedom and to pursue his or her ambition, free from any suggestion that that will interfere with the rights of other members of the family or will bring him or her into conflict with them. It is in the belief that in the initiation of a discussion on a matter of this kind one is attempting merely to state in simple language what is felt by large numbers of people that I have brought this Motion before the House. I beg to move.

I beg to second the Motion.

In doing so, I desire to claim that kindly hearing and indulgence which is always extended to a new Member making his maiden speech. I rise to second this Motion largely in accordance with a resolve made in a very much less comfortable place than this—indeed, in the mud and the blood of the Flanders battlefield, when I resolved to myself that, as opportunity offered, I would take every means within my power and in my own very humble and limited way to persuade men to bend their whole energy, and to lend their whole intelligence, to finding a better way of settling international disputes than by having recourse to the arbitrament of arms. The value of this Motion, as of any other, is in the ideal that prompts it and the driving force that transforms its words into things. My hon. Friend, in a very exhaustive survey of the whole field, and a very intelligent examination of many technical details, has presented a very strong case to this House. I cannot pretend to follow him in the examination of technical details; I want to speak more upon the broad issues and to stress the moral argument, for, after all, there is no sense in discussing disarmament unless we are perfectly agreed that war is a thing to be abhorred and a thing to be fought against.

If war was great, and grand, and glorious, there would be no sense at all in seeking to curtail its scope or restrict its possibilities, but I am not at all sure that that is quite clear to all men. If it had been more clear to men, there would not have been such a limp in our progress towards disarmament and in our reaching after peace. If war brought glory and honour to the nations, if it brought prosperity to trade, if it brought happiness to heart and home and uplift to morals, no man outside a lunatic asylum would dream of discussing the limitation of armaments, the means of war. It is because war does none of these things, because it destroys life, because it cripples trade, because it wrecks homes, because it shatters morals, because it digs graves, not only in the earth but in hearts as well, because it makes the rich poor and the poor poorer still that men of good will and good intention turn again and again to plan and work for that day when war shall be just a hideous nightmare of the past. There is a might that appeals to the world in the clang of iron and the clink of gold and the thunder of horsemen, and many there be that trust in it; but there is another might which lifts up its voice not in the clamour of the world but in the silences of thought and the quiet places where conscience dwells. It is to that might that we all, to whatever political creed we bear our testimony, should increasingly turn and seek to transfer the old reliance upon war to this new might of peace.

We all know that peace is a far off ideal. We who bring forward this Motion are under no misapprehension about the whole business. Peace in our time is not a possibility. It will take long. We must make haste slowly. We are not thinking of total and immediate disarmament. Indeed, while there are mad dogs among the nations, it will not be serving the cause of peace for this or any other country to dream of total disarmament, leaving themselves at the mercy of these mad dogs. But year by year, Session by Session, men and women, as chosen leaders of the people in this House, turn to seek and to further the good of all mankind, and little by little, in spite of differing designs, to erect before the eyes of men the building of a higher civilisation. All the while that this is being done and that this process is taking place by painful steps and slow, there is this menace overhanging all, a menace that, breaking loose, in a few short days undoes the work that has been so painfully done in the course of many years. If the House will reflect, the progress of the world during the last few score years has been simply amazing. The tentacles of trade have been thrown out over the whole of the known world, the dauntless spirit of man has penetrated the ice-bound privacy of the poles, has plundered the treasures of the dark depths of earth and seas, has learned to swim through the sea like a fish, and fly through the air like a bird. He has harnessed the very elements and made them do his bidding, he has annihilated time and distance with steam and electricity, and yet, when it comes to a matter of difference of opinion between nations, he goes right back to the old methods of barbarism. He resorts to a settlement which is no settlement at all, but simply means wounds and misery and death.

War settles nothing; it unsettles everything. If there are any who doubt it, I would say to them that they are unable to learn the lessons of their own lifetime. May I illustrate that point in a very homely way? Let the House imagine a dispute between myself and the giant Italian boxer, which would not be of my seeking but it might happen. He may be wrong in every particular and I may be absolutely right in everything I claimed and stood for, but, according to the war method, we would decide to settle our differences by a bout of fisticuffs. I should go into training—for running—but in the narrow circumference of the ring not a great amount of time would elapse before he caught me, and I should forsake the perpendicular for the horizontal. He would knock me out. Would that knock-out prove him right and me wrong? Would it really affect at all the point in dispute? Would victory cleanse his wrong contention and make it right? Is there any difference as between nations? Is it not really desirable—I will put it no higher than that—that we should eagerly and resolutely discuss practical ways of ending a thing so futile and so stupid?

Our Motion puts forward a very practical way. It does not claim any originality, save perhaps in its last few words. It is a Motion, no doubt, which has been discussed many and many a time before, and it will be discussed as long as men of good will live. It speaks of the limitation of arms, of disarmament—not total and immediate but gradual and ultimate disarmament. I know it is a big problem. It would be a big problem if it concerned ourselves alone, but it does more than that. It is an international problem. The cause of peace will not be advanced by Britain scuttling her battleships or disbanding her armed men. It can only be done by co-operation with others, and that is a slow and disappointing process. It brings one almost to the point of grief and despair over and over again. But co-operation with others does not mean that Britain should everlastingly be waiting for someone else to make proposals. It does not rob Britain of the right of taking the lead, and I, who love Britain, desire to see Britain foremost in peace, as she ever has been foremost in war. She would only add lustre to her name thereby.

Of course, there are those who say disarmament is not a means to peace. I agree that disarmament is not, in itself, the whole case. Disarmament, to my mind, must, to a certain extent at any rate, be the effect and not the cause of peace. It is no good lopping off battleships from the Navy or battalions from the Army, or squadrons from the Air Force unless, by so doing, or as a reason for so doing, you are lopping off a commensurable amount of war spirit from the minds and the hearts of the people. At the same time, that argument can be carried too far, and, as I have listened to the opinions of men, and as I listened to them this recent Armistice Day, I thought this land and the world in general should feel emboldened to take a move forward in the direction of disarmament, because there is undoubtedly a diminution of the reliance on war as a means of settling disputes in the minds of men to-day.

There is another class of people who say that disarmament is opposed to the interests of peace, that you will best preserve peace by maintaining a mighty Army and a colossal Navy. With those people I am in entire disagreement. Has any Member of this House ever presented a small boy with a trumpet and told him that he might hold it in his hand, that he might look at it, that he might carry it about, that he might show it to his friends, that he might polish it, that he might take it to bed with him, if he wished, but that on no account whatever must he blow it? The thing is unthinkable. Or has any Member ever bought a motor car, the world's latest, a world- beater in every respect; a glorious shining thing—bought it and put it in his garage, dusted it carefully, greased it, oiled it, started up the engine, listened to its purring, fondled it with all the love that a motorist has in his heart for the engine that is his own, and never taken it out of the garage, never tried it out? Does not the same thing apply to nations? Is it not a temptation in having a perfect war machine, strong, mighty, efficient—to try the thing out? After all, had not the recent Great War something to do with that? Is not a nation in possession of a perfect war machine tempted to rely on its strength rather than the righteousness of its cause? A big Army and a mighty Navy create envy, suspicion and distrust among all the neighbouring nations, and nothing will suit them better than to follow suit and put up for themselves a big Army, Navy and Air Force programme.

I have tried, in a very lame way, to show that war cannot be tolerated in spirit. I should like to say one word in support of the fact that we certainly cannot afford it in money either. I am speaking of our own nation now. Do we realise the colossal expenditure that we are making on the maintenance of our present forces? I am saying nothing of the cost of war debts and war pensions. I am thinking of the present expenditure, the preparation for future wars, if you like. We are spending at the rate of £200 a minute and more on that. At the same time, we are spending, in the interests of the one great peace organisation of the world, at the rate of a halfpenny per head of the population per annum. Yet one has found more enthusiasm in some quarters about reducing that amount than in reducing the colossal expenditure on armaments. We are spending £200 a minute and more for something that does not fulfil the purpose for which it is designed; we are spending it when trade is depressed; we are spending it when 1,250,000 of our fellow-beings are out of work eating the bread of idleness, losing their manhood and their womanhood, dropping down the ladder rung by rung; we are spending it when we do not know where to turn to find a few paltry millions to support the necessary social services. I ask the House, taking all these things into account—I have dealt with them in a very sketchy sort of way—is it not better, is it not cheaper, is it not safer for this House to resolve with its whole heart, and to influence others to resolve in a similar way, to build friendships and not battleships?

There is the other item to which the Motion refers, and with one word I will deal with that, in conclusion. I do not wish to enter into any great arguments concerning the co-ordination of our Forces, but only a year or so ago it was my privilege to visit the Gallipoli battlefields. I visited them with a man who took part in the early campaign, the early bombardment of the Dardanelles forts by the Fleet; and, as we stood on the Peninsula, he pointed to the large hill dominating all the Peninsula, and he said: "When our Fleet bombarded those forts, the gunnery officers climbed to the top of that hill to 'spot' for their gunfire on the forts, and a battalion of men landed at that time could well nigh have marched through the Peninsula." Lack of co-operation between Army and Navy, caused the loss of hundreds and thousands of lives, the pouring out of some of the best blood of Britain and her Colonies, and in the end—tragedy, and only the indomitable courage of the men who fought as the redeeming feature of the whole thing. I have pleasure in seconding this Motion, and in the spirit of some words of Alfred Noyes which he wrote some years back for a wreath that was laid on the Cenotaph, I ask this House to give its consideration to the Motion before it:

I must convey congratulations to the hon. Gentleman the Member for East Dorset (Mr. Glassey) which, I am sure, are shared by everybody in this House, for the speech which we have just heard—a most moving appeal—and I hope that we may have many more like it from the same hon. Member. I should also like to say that the way in which this Motion was moved by the originator of it was quite admirable. My task is by no means an easy one. I should like to make a few comments on the subject of disarmament, and, particularly, to concentrate what I have to say on the subject of a Ministry of Defence; that is to say, that I propose to oppose it. Naval and Military officers always suffer a certain handicap in opposing disarmament. It is not easy for them. They are not altogether believed, and at times people may suggest that they have ulterior motives, though I do not know that anybody in this House would make that suggestion. I will say this: there is no greater movement towards disarmament in any country of the world or in any Parliament than there is in this country and in this Parliament. There is no question about that being so. Therefore, I should have liked speeches such as that to which we have just listened to have been delivered in the French, German, Italian, and the American Parliaments. If one looks at the records of the debates that take place in those Parliaments one reads nothing approaching the appeals which we have just heard. The reason is not far to seek. They are not in agreement, and they are not prepared to embark on disarmament in the way that we are. We are looked upon as extremely self-indulgent in this matter.

Foreign nations are by no manner of means convinced that our appeals for disarmament have no ulterior motive. After all, I think that up to a point they are justified in feeling in that sort of way. We possess one-third of the world. For centuries, as has been described here by the hon. Member below me, we have had more efficient armies and more efficient navies than other countries, with the result that we have, by reason of the character and temperament of our people, risen to the present position that we hold in the world. It is a platitude perhaps that the other nations are not satisfied. They are not content that we shall be where we are. They are not content that they shall disarm. In fact, they are not prepared to believe that we are the greatest nation in the world. They all hope, even the smaller ones, that the day may come when we shall foolishly disarm sufficiently to enable them to get more of the possessions of the world.

It was mentioned by the Seconder of the Motion that he would like to see this country take and keep on taking a lead in this question of disarmament. We have done so. If you look round and compare, in the widest sense of the term, the Military Forces of this country with the growth, or otherwise, of the Military Forces of other countries, there is no comparison whatever. It is we who have been disarming, and it is the other nations which have been doing the contrary. That is not an expression of a personal opinion. It is an actual fact that can be proved by anybody who looks into the matter. I am personally intensely in favour of a situation roughly as follows: That an international agreement might be arrived at whereby every nation should agree that the other nations should be allowed to keep the possessions that they hold at the present time, and that for a period of say 10, 15 or 20 years everybody should reduce their armaments to the lowest conceivable limits—police limits, let me call them. That would be splendid, but, if you once start with that text at an international conference and ask the plain question, "Are India, Canada, Australia, New Zealand, South Africa, East Africa and the West Indies to be ours?" can you conceive that you would receive the answer "Yes" from any single representative of the Great Powers? Certainly not, and that is the basis of the trouble in regard to the question of disarmament. At the same time, I feel quite confident, and I agree with the Mover and the Seconder of the Motion, that we must do everything that we possibly can in this question of disarmament, by taking the lead still further if necessary so long as we do not endanger our position, and do all that we possibly can to make the other nations of the world realise that our bonâ fides are admirable, that we are capable of governing our possessions, that we are just rulers, and that we do not want particularly any further possessions belonging to anybody else.

Just a few words on the subject of this Ministry of Defence. As long as we retain an Army and a Navy and an Air Force, we must, as is agreed by the Mover and Seconder of the Motion, have the very best of these three Services; they must be as efficient and as perfect as possible. I submit that a Ministry of Defence most certainly would not tend to that end. I hope to be able to give some idea of the investigations which have been made into this problem in the past, as briefly as I can, and to point out what seem to be the insurmountable difficulties and the troubles that might arise if we had a Ministry of Defence, by which I mean a co-ordination of the three Defence Services under one Ministry responsible to the Prime Minister of the country. The idea of this Ministry of Defence at the very beginning seems to be one of bolstering up the question of co-ordination instead of saying that we think these three Services—all of them good; all of them excellent—are capable of improvement. The proper line to take is to perfect each of the three Services and certainly not to bring into one gigantic combination the Fighting Forces of the country under one controlling head. In fact, this suggestion seems to me to be particularly addressed to an external plan instead of to the internal improvement of these three Forces.

5.0 p.m.

There are several reasons that impel people to make this proposal. They can, perhaps, be described as efficiency, which is perfectly proper, economy, the fact that we now have an Air Force, which we had not before, and the fact that the Dominions now are part and parcel of a Council, as it were, that decides the operations of war very largely, and certainly the policies that lead to and control war during its operation. Efficiency in regard to our Fighting Forces is never sufficiently considered during the aftermath of a great war. Economy is a very natural and very proper thing for us all to consider, particularly at the present time but, candidly, I consider that it can be carried so far as to become a dangerous obsession. We must be most careful how we economise in regard to what has been described so often as the insurance that we must provide for this country. We have to be extremely cautious.

In regard to the Air Force—I do not want to be carried away on that particular subject—I hold the view very strongly that if we wish to economise, the Air Force as such as a separate Ministry should cease to exist. I will not go into my reasons for that view, because I have given them before but, roughly, I consider that we have no more right to have a separate Air Force than we have to have a separate submarine service in the Navy. My own experience in these matters has always been that brand-new weapons always tend, as it were, to build a wall round themselves and to separate themselves out. It is the duty of statesmen to see that such a thing as that does not happen. These remarks are not in any way intended as a reflection upon the admirable efficiency which the Air Force so constantly displays. I am speaking from the national standpoint. I am of opinion that we could economise most clearly and improve our efficiency if the Army and the Navy were the two main Fighting Forces of the country, each with their own aircraft under their own control.

The mover of the Motion, and particularly the seconder, in very wonderful language mentioned the terrible things that happen when you do not get co-operation. History teems with examples of the failure to co-operate and the misery, trouble, death and destruction by reason of such failures. Up to 1914 co-ordination and co-operation between the Naval and Military forces of this country was not quite non-existent but it was in an extremely bad condition. It was only the War that brought out the best of everything and produced steadily not only from the point of view of the Government of this country but also from the point of view of the Fighting Services, an enormous improvement. It was not until 1902 that the Committee of Imperial Defence was created. At the beginning of the War we had. a body of something like 22 people, with experts, who had to decide the system. That was wrong and bad. Late in 1914 the first War Council was created. That was a step in the right direction. It was a combination of statesmen, business people and the heads of the Fighting Services, and did extremely well. That War. Council lasted for more than two years until, in 1917, it was gradually reduced. Then we had a second War Council, namely, the Prime Minister and four Ministers, with necessary experts. That culminated in the Imperial War Cabinet, which was brought into being by reason of the fact that it was desirable and proper that the Dominions should know what was going on.

I will not say anything about our failure to provide staffs. We had no staff of any kind in the Navy until 1912, and I believe I am right in saying that it was not until about 1904 that the Army or the War Office provided its own staff. This organisation of the Imperial War Cabinet continues to function to-day, and we have a fine organisation now for any type of war, without anything in the nature of creating the difficulties and dangers of a Ministry of Defence. That War Cabinet is flexible, and the system is admirably adapted to the character and temperament of the people of this country. It is conceivable that it might not work in other countries, but we have to remember the character and temper of our people. In regard to a Ministry of Defence, you have, first of all, to look round for a super-man. I do not know of one on the Government Benches. They may know of one themselves. In 1922 the late Chancellor of the Exchequer made a speech in this House on the subject of a Ministry of Defence, and advocated very strongly the creation of such a Ministry. In my lifetime there has only been one man amongst the statesmen and politicians of this country who would be capable of being the Minister of Defence, and that would be the late Chancellor of the Exchequer. In my opinion there has not been anyone else who could do it, and I am not quite certain that the right hon. Gentleman would succeed in it. Perhaps he might succeed, but nobody else could.

We have at the present time in the Committee of Imperial Defence a wonderful link between the Cabinet and the Fighting Services. Day after day since the War ceased there has been the improved co-ordination and touch which is so necessary between the Services. That goes on constantly. The late Prime Minister spoke on this subject not long ago, and referred to the committees set up by the Committee of Imperial Defence. I know from my own personal experience that no stone is left unturned to create committees that shall investigate every possible aspect of efficiency in regard to the Fighting Services. The present system is one admirably suited to our needs. It trains Ministers in aspects of war which they would not otherwise have. It gives them, as members of the Committee of Imperial Defence, an insight into what is required to improve the efficiency, the co-operation and the co-ordination of the Fighting Services. If we had a super-man, or even a pseudo-super-man, which the Minister of Defence would be, we should set up a Minister who would have the control of three great Departments of State, each of them brilliantly organised and remaining, as the Mover of the Resolution said, with their present organisation but controlled by this particular Minister. I think everyone will agree with me that in such an event we should be creating a Minister who would be a constant menace to the Prime Minister of any party, because it would be an extremely difficult thing for the Prime Minister to controvert and counteract the energies of a man so highly placed as to control three great Departments of State.

Will the hon. and gallant Member explain why it is more difficult for the Prime Minister to controvert one super-man than three super-men as you have them now in the Cabinet?

The hon. and gallant Member is suggesting that I say there are three super-men in the Cabinet. I do not think so. Back benchers may look upon them as such, but they are quite ordinary, well-meaning and extremely efficient politicians, all doing their work admirably. I think that if those three heads of the Fighting Services were present to-day they would agree with me that they are not supermen, and that they are not in the same position in regard to Cabinet matters as would be one man controlling three Departments. We should be making a very grave error if we reduced the constitutional status of the Admiralty and the War Office. Why should we, for instance, change the name of the War Office to that of the Army Office? It would be none the less necessary to realise that, whatever you may call it, Army Office or Peace Office, it has only one duty to perform, and that is to prepare for war. If you call it anything else but the War Office you deceive yourselves.

There is a great deal more that I would like to say, but I am anxious that many other opinions should be expressed. Therefore I will not go further into the matter except to say that so far as the Admiralty is concerned it is necessary for us constantly to realise—I am not suggesting that we do not, but I do think that the British public and the House of Commons must realise—that the problems that lie before the Admiralty never change; they are extremely complicated and extremely difficult. Think how we may, the Admiralty have the final and ultimate responsibility for the safety of the Empire. The enormously important questions which they have to consider are ever-present; and we must not do anything, such as combining the Admiralty under one head with other Fighting Services in a Ministry of Defence, which would make the consideration of these problems any more difficult than they are at the present time. I do very strongly urge that the present system of retaining the Admiralty and the War Office shall continue and that, at the most, the absorption of the Air Ministry shall be effected, thereby improving the efficiency of the Army and the Navy.

I should like to join in the congratulations to the hon. Member for East Dorset (Mr. Glassey) on his maiden speech, and to the Mover for a very admirable speech on the general question of disarmament. I do not intend to follow them on that particular side of the Motion. I would only say that I heartily support their views with regard to disarmament. I would like to deal with the more detailed question that has been raised by the hon. and gallant Member for Lewes (Rear-Admiral Beamish). It struck me that the hon. and gallant Member seemed to have a very remarkable knowledge of what foreign countries are thinking. He was very positive that no foreign country views disarmament in the way that we do. I could not help thinking that he was falling into that pit into which popular novelists so often fall, in which they make their characters speak exactly with their own voices. It seemed to me that the other nations spoke with the voice and sentiments of the hon. and gallant Member. We have had some weighty arguments against a Ministry of Defence by the hon. and gallant Member, but his argument dealt with one particular proposal, namely, the setting up of one Minister to control the three Departments. That is not necessary when one considers co-ordination of defence. I thought that he supplied in his own person a valuable argument for a Ministry of Defence, because I think he illustrated that the conservative attitude—I am not using it in a political sense—is apt to creep into the great Fighting Services. Perhaps it is not yet in the Air Force, because it is too young, but I am quite sure it can be found in the Army and in the Navy.

We must look at this question from the point of view of the co-ordination of defence. If you look at it quite apart from old traditions, the first thing that surprises one in the matter of defence is that there are eight Ministers of the Crown; three for the Army, three for the Navy and two for the Air Force, and no co-ordinating Minister at all. It might be said that it is. quite obvious that this country is mainly concerned with war and fighting. That would be quite wrong, because the position of these Ministers is really a matter of history. If you look back you will find that the functions of the State were far less extended than they are to-day and matters of defence naturally bulked much larger, but it is ridiculous to-day, when our problems are so different, with all respect to the hon. and gallant Member for Lewes, from the problems which faced us in the past, that we should have three distinct and separate services linked together only very slightly by the Committee of Imperial Defence.

What we want to-day is to have expert assistance not merely on the matter of making war but on the matter of keeping the peace. There is nothing more ridiculous than to see various statesmen meeting each other about the world, followed by little groups of experts drawn from one single Department. If you cannot get anything better then have a pact on one subject, and a pact on another, but if you want advice on the whole matter of the defence of the British Empire you do not want advice on naval defence, or air defence, or army defence entirely uncorrelated. You want a defence advice which will take into account the operation of all these arms; and, in fact, in modern warfare war is carried on by all three. The difficulty to-day in the Cabinet and in the Committee of Imperial Defence is that those who have knowledge of the Fighting Services are almost necessarily advocates for a particular Department. They have been brought up in one particular Service. You can see this at once if you look at the hon. and gallant Member for East Sussex. He has been brought up in the Navy, and he wants to scrap the Air Service. It is nothing to him. It is a little insignificant thing.

I have no desire to scrap the Air Service. What I have said is that we should absorb it in the Army and in the Navy.

I apologise, but the hon. and gallant Member is somewhat like the tiger and the lady of Riga. The tiger did not want to scrap the lady but to absorb her. That is quite a characteristic attitude, and when you follow it out you find almost inevitably that Ministers sooner or later tend to absorb the atmosphere of their particular service; they are more or less advocates of that service, and unless there is one Minister who is expert in all these matters, and a General Staff expert in the matter of all these Services, there is no one who can decide between their conflicting claims. An hon. Member has said that battleships should be scrapped. That is one point of view; but it would be very difficult to convince the Admiralty to that point of view. It is perhaps just as difficult to convince the Army that perhaps horses are out of date. There is no one Minister to-day who, looking at the defence of this country, can say that so much shall go to the Navy and so much to the Army, and so much to the Air Service. It is no good seeking out your superman. I do not want to see the right hon. Member for Epping (Mr. W. Churchill) put in the position of a superman over all these Services. I quite recognise the danger which was pointed out by the hon. and gallant Member, and I am quite sure it is felt in many other quarters.

We want to build up a General Staff that will think in terms of all these Services. Secondly, a General Staff that will think in terms of defence, not warfare. And, thirdly, a General Staff that will think not only of these particular islands, or even of the British Empire, but which will have a world outlook and will think in terms of peace. I do not think you can get that by a Minister who is necessarily being advised by members of a particular Service. What you want is something outside the War Office, the Admiralty and the Air Ministry, which will consider all defence problems together. It is no good having a separate war plan Department in the War Office, and a separate war plan Department in the Admiralty, or in the Air Force, all making plans against different potential enemies. You must have one thinking organ of defence. I should like to see a Minister set apart to preside over the Committee of Imperial Defence. It is quite obvious that no Prime Minister has a chance of really going into the details of defence properly. If he goes to the Committee of Imperial Defence he is not in a position to judge between the experts or between the conflicting claims of his own colleagues, each of whom represent a particular Department.

If you had a Minister without portfolio, like the President of the Council, or Lord Privy Seal, and set him up with an expert defence staff drawn from all these services, which would be planning ahead something beyond mere questions as to what is right for this particular arm and the other particular arm, you would have someone who, without being a superman, would have sufficient information and experience to be able to look at the defence problem as a whole and who would be a valuable support, not rival, to the Prime Minister. The machinery of government to-day is overloaded with Service Ministers. I hope they will not think that I am trying to do them out of their jobs, but it is wrong to have seven Ministers of the various fighting departments. It is wrong that the Cabinet should contain three members of the Fighting Services, because to-day, thank goodness, the Cabinet is not always thinking about war and defence. The trouble is that you cannot deal with one without the others becoming jealous. If I suggested that the First Lord of the Admiralty should be retained in the Cabinet and the others cut out, the other Ministers might be jealous. You cannot cut out one without cutting them all out. I should like to see them made subordinate to one Minister charged with defence.

The hon. and gallant Member has referred to my speech and has complimented me upon it. May I point out to him that there is a vice-chairman of the Committee of Imperial Defence who takes the place of the Prime Minister and relieves him of the direct labour of the position. That is in accordance with the Report of the Committee which considered the subject.

I am quite aware of that, but the trouble is that a Minister without office and without a staff cannot function efficiently. As a matter of fact, he has to function now with a staff which are adherents to three separate departments. I do not want to detain the House at great length, but let me just refer to the fact that from the point of view of efficiency and the saving of money, one can urge this co-ordination of defence. I will make one point only and it is this. We are reaching a very curious position in the organisation of defence in the British Empire. More and more the Empire is becoming a rather loose federation in which the various parts of it take a greater or larger part of their own defence. Sooner or later we shall have to have some co-ordination. We still try to carry on defence under the old method of the ruling branch, Great Britain paying most and controlling most. I doubt whether that will last, and in view of the gradual development in the British Empire, in view of the gradual world development by the League of Nations, and in view of the need that when we go into the question of disarmament we should go in with trained brains that have been thinking on broad defence lines, not the lines of a particular technical department, we should have a co-ordination of defence. I hope the present Government will take it in hand.

The time will come when it will be noted that this Debate on a subject upon which future civilisation may depend is being conducted in practically an empty House. It reminds one of the many Debates which occurred before the late War on matters which turned out to be of vital interest to the whole civilised world, but in which the House of Commons and the country took practically no interest. The Motion has been moved and seconded in most admirable speeches, upon which I should like to congratulate both hon. Members, and I desire to say one word about the last sentence, which refers to a proposal which has been considered by many Cabinets, but which no Cabinet up to the present has had perhaps the time or disposition, I will not say courage, to tackle—that it is desirable to co-ordinate the Defence Forces of this country.

I have always been strongly in favour of co-ordinating the Defence Forces and I am perfectly certain that, whatever may have been said against it before the War, there is every reason at the present moment why it should be done. Anyone who has had any experience of Cabinets will agree that the problem of defence as a whole has never really been considered. What happens is that the First Lord comes and says, "Here are my Estimates." The Secretary of State for War comes on later. The two right hon. Gentlemen agree among themselves—I am not referring to the present Cabinet because they would not do it—that if one of them supports the Estimates which come up, the same kindness will be extended to the other when his Estimates come up. There are three of them, three members of the Government who, you can depend upon it, will back each other's Estimates up, whatever the merits may be. That is thoroughly bad.

No Government that I know of has ever sat down to consider the problem of defence as a whole. It is considered, it is true, by the Committee of Imperial Defence, but it considers merely certain aspects of the matter and never considers expenditure. No doubt it is a very valuable body, but, as the last speaker has said, the Prime Minister, who presides over it, has no staff. There are certain resolutions on the Minutes, which are agreed to and are passed on to the Cabinet, and are never read by any member of the Cabinet. Of course every member of the Cabinet, even in the old days, had simply cartloads of paper to peruse and consider. I know that the volume was growing then at a rate which was making it a burden to the messengers, apart altogether from the poor Minister who is supposed to read the documents. He does not read them and cannot read them; he certainly cannot apply his mind to them. There is, therefore, no consideration in any Cabinet of the problem of defence as a whole. Here is another thing which, I have no doubt at all, one of the Ministers will discover in the course of the next two or three years: It is not the best case that wins as between Admiralty and War Office and Air Force. It is the best wangler every time. I have seen men in one of the fighting Services assisted partly by wangling and partly by sheer aggressive force. They must not be mentioned, but I know perfectly well that when they brought forward proposals they generally got their way because out of sheer exhaustion the Cabinet gave in. But you never consider a thing on its merits. The good Minister, however good at his work, has not the necessary pertinacity and pugnacity and seductiveness of manner.

The problem of defence is really one problem; it is not three problems. It is time that it was considered as a whole. Anyone who has been engaged in the task of conducting a war knows perfectly well how much we suffered during the last war from the fact that there was not merely a war in Flanders and another in Gallipoli, but a great departmental war going on in Whitehall, and it was far and away the greatest problem we had to deal with—the fight between the Departments for one thing and another. It would have been far better if you had had one man whose business it was to look after the fighting Departments of the country, instead of having the Admiralty grabbing for this and the War Office grabbing for that, for men, for material, for chemicals, for iron and steel, and competing even in strategy. There is no doubt at all that when the full story of the Dardanelles is told failure will be very largely due to the lack of co-ordination, without blaming anyone in particular. Those who were in it at the time know that there were delays to begin with, and delay was fatal in that business. But, apart from delay, there was the inevitable lack of co-operation, yet it was preeminently a strategical problem that could be solved only by the most perfect harmony and co-operation between the Forces.

This question is really a question of economy. You might have a far more efficient Defensive Force with less money spent upon it. You have, first of all, to consider what is likely to be the position of the Air Force in future, in relation to the Admiralty to begin with. If you make up your mind that your danger is in the air, very well, you ought to concentrate more upon it. But you cannot concentrate upon it by a sort of case fought out on the floor of the Cabinet as a sort of Court of Chancery, with one Minister as the leading counsel for one side, and another Minister for the other. The Minister must consider it with his experts inside there, and come first of all to a decision himself. I know perfectly well that no Minister at the present time is considering the problem of defence as a whole, because it is not his business. He is most anxious not to interfere with other Departments. The jealousy of the fighting departments of each other is something which is inconceivable. It is far more than the jealousy of the two branches of my profession, the barristers and solicitors. The barristers are what I call the working branch of the profession.

This matter is a vital one from the point of view of economy. What have you now? You have competition without any of the check which a profit and loss account gives to competition. Each one is at it, milking the Treasury cow, and if they each get hold of a different teat they are perfectly happy. That is really what is happening now, and the result is that you have this gigantic expenditure without the best that can be produced in the way of Defence Forces. I am certain that at this moment there is no Government which has come to a definite conclusion as to which of the branches of the Services it is most vital for the country to concentrate upon and develop. I am certain that they have never faced the question because it is not the business of any individual Minister to think out the problem, and every Prime Minister in these days is really too busy, with all the multifarious demands upon him, to be able to devote his time and thought to the solution of the problem. Therefore, I am strongly in favour of the latter part of the Motion.

But I intended rather to speak upon the major part of the Resolution, which is a very serious one. I regret that it is impossible for the Prime Minister and the Secretary of State for Foreign Affairs to be here. I know they must be busy. But this is really not a departmental issue at all. I have no doubt that the right hon. Gentleman on the Front Bench will deal with it very effectively, but he cannot deal with that part that really matters, and that is the question of the relaions with Foreign Powers. It is not merely a problem of reduction here. I agree with my hon. Friend that you cannot reduce in this country until you know that other Powers are doing the same thing. It is a problem of foreign affairs, and a general problem.

I wonder whether right hon. and hon. Gentlemen have read the speeches of President Hoover? I think they are very remarkable. He is a man who has a very remarkable grip of facts. He has no delusions or illusions. In his speech on Armistice Day he made one of the most notable speeches ever delivered on this problem. He did not cry "Peace" when there was no peace; he declined to do so. He said: "If you have peace at the present time, you have armies." Frankly he is not proceeding on the assumption that, after the last war, war is henceforth impossible—and no one has the courage to say that that is not so, except President Hoover, who is essentially a man of peace by training, by conviction, and by his early associations. He has pointed to all the elements that make it possible that you may have war in this generation. He points out another fact, which I ventured in a very feeble way to bring to the notice of this House. But I was only contradicted by some official on the Front Bench, who just said what he was told by some other officials in the War Office. I do not mean the present Government; it was in the late Parliament.

President Hoover refers to the men under arms, including reservists. I could not get the War Office in the late Parliament even to take cognisance of the fact that reservists are what matter, that the moment you have war four-fifths of the men under arms are reservists. I am under-estimating. The peace armies of the world are only a nucleus, except in this country, though even in this country they are a nucleus to a certain extent. As President Hoover said in his speech, to-day even in America they are a nucleus. But when you come to France and Italy and Czechoslovakia, and these other great countries, including Russia, reservists are what matter. You have a nucleus army of a few hundred thousands, but behind them you have millions of trained men, and as I shall show, what matters most of all is that each of them has a gun all ready for him, and equipment all ready for him, the necessary cannon to back him up, and machine guns and trench mortars. President Hoover said:

I cannot go into that question now. It is a very difficult problem on which I should not like to pronounce an opinion. Let us avoid the next war anyhow. Here you have 10,000,000 more men trained to war than you had before the Great War, and President Hoover is the first official representative of a great nation Who has had the courage to point that out. Every time any of us try to point it out, statistics carefully cooked in the League of Nations are hurled at our heads—statistics simply giving peace establishments, which mean nothing, covered up in verbiage which obscures all the vital facts about reserves, guns, machine guns, aeroplanes and all the other factors which any man who has made war knows are what matter. Now I want to know what the Government are going to do about that? Are they going to take the lead for which my hon. Friend the Mover has asked, in pressing that these things should be considered? I am going to give other figures. There is the fact that you are spending £720,000,000 according to the League of Nations—as a matter of fact it is much more, it is certainly £800,000,000—upon preparations for war throughout the world. President Hoover to-day gives very striking figures about his own country. He is not afraid to do so. He points out how the army of the United States has trebled in comparison with 1914 and how the cost has gone up since 1924 in the United States by 118,000,000 dollars. He is not afraid to say so, and if we had leaders in every country who would do the same thing I think the problem would be solved. He faces the facts and faces them quite fearlessly.

But the question is, what is going to be done in order to force the Disarmament Commission of the League of Nations to deal with it? Before I come to that point I am going to give what I consider to be a very much more vital consideration and that is material. I am very glad that my hon. Friend the Mover has called attention to that matter. Why do I say that material is more important? I would like to give some figures to the House, and I apologise for giving figures, but all these things work out in actual figures. Anybody who knows anything about war knows that owing to the perfection of the machinery it does not take as long now to train a man for war as it used to do. I remember very well when the terrible task was cast upon me of manufacturing guns. I felt, after the experience which I had had in seeing things in France, and examining some French officers and after the information which they gave me, that it was necessary to manufacture on a very great scale. Objection was raised—I am not going to give names—by very important generals. They said it was no use manufacturing guns for the simple reason that we could not man them. It took, I think, they said, two or three years to train gunners. Well, I asked real gunners and they said, "No." They said the machine was so perfect that anybody with an elementary knowledge of mathematics could become a gunner in about three months and that turned out to be the case.

I have been very interested in reading all these war books which have come out from Germany and which I think are very striking. They are very remarkable books. It is the one country where people can write freely—where soldiers can write freely, because the old machine has been shattered and old idols have been smashed and therefore young officers can talk with perfect freedom. I am not disparaging the books written on this side—not in the least. Some of them are very able and brilliant books, but from the point of view of giving real information, without any regard to the reputations of generals or of the old War Office the only books that can give you that are these books written by the Germans. I was very interested to find out what the effect of our artillery was and if anybody will read the books written by these German officers they can find how little justification there was for the criticism that our improvised artillery was not effective. It was terribly effective. What I want to point out is this. The manufacture of guns takes very nearly two years. It is a very slow process; I will not go into the reasons. The same thing applies to machine guns. You have first of all to get the necessary machinery in order to manufacture small gadgets and all sorts of things and that takes time. It takes four times as long to manufacture your gun as to train your gunner.

Therefore the fact that there are certain countries with overwhelming material of war at their disposal now makes a more formidable fact, because if a country goes to war and has to wait for 18 months before it provides its machinery, there is some time at any rate for reason to prevail. Just see what happens. I look at the number of guns in order to show what has happened in the late War and it is something that remains to the present moment. We had, at the beginning of the War, something like 127 heavy guns and we manufactured in the War 11,000 heavy guns. The light guns are incomparably more numerous but it was the others that caused most devastation. We had, at the beginning of the War, 2,000 machine guns. We manufactured 240,000 machine guns, and this process was going on in every one of the great countries of the world. Many of these guns were shattered; some of them were captured, but the majority are still there—and still here. We manufactured over 5,000,000 rifles. They are still here.

If that is the case here, what is happening elsewhere? We are not training new men it is true, but other countries are. Germany had, I forget how many guns which she surrendered, but the number was something terrible and many, or most of them, were manufactured during the War. One thing that developed in the War was that the light gun was practically discarded except for one particular purpose and the whole of the armies of the world concentrated upon the heavier and more formidable machinery of destruction. Before that nobody ever imagined that you could take these very heavy guns into battle. It was one of the surprises of the War when even the 5.9—I think that is the German gun—was taken into action. Why, we were taking 9-inch guns and 14-inch guns into action. In Germany what happened? Between mine-throwers and cannon they surrendered 83,000, mostly manufactured in the War. What is happening in the other countries—France, Italy, Poland? The Russian guns were practically destroyed by the German Army and then surrendered to us. We broke them up into scrap and such guns as the Russians have now are those which have been manufactured since. But the French guns are there.

So you have this state of things. You have, according to President Hoover, 10,000,000 more men trained to war than you had at the beginning of the late War and you have weapons of destruction which, in number and in power, are five times more shattering than those which the whole of the armies had when they went into battle on 4th August, 1914. What is to be done? We have a Commission in Geneva sitting. Sitting! What has it done? Absolutely nothing. It is the greatest farce—and we promised that we would reduce our armies to the lowest level compatible with security. One is ashamed to be constantly reading Article 8 of the Covenant of the League of Nations—an Article drafted by the Conference. There was no representative of the defeated Powers on the Committee that drafted it, or on the Council that carried it. It was imposed upon the defeated and this is what we wrote and this is what we signed. I did not sign for myself. I signed for Great Britain. Every Prime Minister in the Empire signed for his own Dominion, and India signed, and the Parliaments of the Dominions, and this Parliament approved it without a single dissentient voice and this is what we signed:

Are 30,000,000 trained men the lowest figure compatible with national safety? Are scores of thousands of cannon necessary for national safety? But this is a worse breach of our national obligations. We wrote a letter to the President of the German delegation covering the reply of the Allied and Associated Powers. It was signed by a very distinguished French statesman who has just passed away; a man of unexampled gifts and of courage. There has never been a man less open to the charge of being a pacifist than M. Clemenceau and there has never been a man less open to the charge of being an idealist. He was a realist in every fibre of his body and yet he wrote: Versailles. I have made this appeal to right hon. Gentlemen on this side in the days when they were Ministers; I am making it now for the first time to the Ministers of a Socialist Government. They have it in their power, with President Hoover behind them—because he clearly is—to insist upon something being done. There was a motion in Geneva, moved by Viscount Cecil, very largely on these lines. I wish, by the way, he would not convert meetings of the League of Nations into meetings in favour of Empire Free Trade. That is the one way to break up the League of Nations, to introduce controversial matter of that kind into their meetings—[ Interruption. ] I saw it in the paper this morning, and I hope it is an inaccurate report, because it is a very dangerous thing to introduce controversial matters of that kind into a meeting of the League of Nations Union.

At any rate, he moved a resolution at Geneva in favour of giving an instruction to the Disarmament Commission to consider numbers and material. The Prime Minister was not there, and the Foreign Secretary had gone home. I think that is a pity. Viscount Cecil, with all his influence, after all, had no official position, and I wish the members of the Government had been there to enforce his appeal. It was far and away the most important resolution at that meeting. Without that disarmament, war is, in my judgment, inevitable. You cannot avoid it. The League of Nations has been going on for 10 years. You get great meetings there, with most eloquent speeches in favour of peace and disarmament and arbitration.

The League of Nations is in danger of being run by flapdoodlers, not coming to business, thinking you can settle great problems merely by perorations. I am not against perorations—in their proper place. [ Interruption. ] They help business. After all, rhetoric is the petrol, but you must have the machine. But this is all petrol and no machine, and the result is that it goes up in the air and there is nothing but the perfume. When you pass through Geneva after the meetings it fills the air and chokes you, but nothing is ever done; and armaments are going up, the cost of armaments is going up, the number of armaments is going up, armaments are being perfected year by year, by nations that signed the Covenant and that signed the Kellogg Pact, to say, "There shall be no more war; it is outlawed," and the next thing they do is to lay down new programmes of building. They perfect their bombs, they increase their guns, they train their men. It shows they are not relying in the least upon arbitration or upon pacts. They are still in the same mind of relying entirely upon force.

I agree with my hon. Friend here, that if you have there the machinery for war, and one of these countries thinks that it is better than any other country, it is no use asking it to arbitrate—none. There is nothing that conduced more to war than the conviction of the German people that they had the best war machine in the world, and, as Marshal Foch once said to me, the best war machine that the world ever saw. He said to me: "The German army that marched across the frontier was the greatest army, not merely in numbers, but in equipment, in leadership, in training, that the world has ever seen." They knew it. Everybody else knew it. I remember talking to a very distinguished general when I was Chancellor of the Exchequer, and he said to me: "The moment the German army marches it will walk through the French like partridges." I heard the same simile used by a great European. That was the conviction, and Germany believed it.

I do not believe—and I think this will be controverted—that those who were at the head of affairs in Germany meant war. That will be controverted by many, but I do not believe they meant war. What they meant was this: With Bosnia and Herzegovina they had threatened war, and Russia, feeling that she could not face this terrible army, collapsed. It was the great day of the mailed fist. The same quarrel, this time with Serbia, and they tried the same thing again, thinking that the mere threat of this powerful army was sufficient; and, having done it, they could not get out of it. Now that is the danger of great armaments. It gives an arrogance, it gives an insolence, war becomes the short cut of diplomacy. That is the danger. I have always thought that the wrong moral was deduced from the story of George Washington and his axe. It is not a moral of veracity; it is a moral that you should not give an axe to people who may use it mischievously. The man who ought to have been thrashed was not George Washington, but his father. [ Interruption. ] Now that the hon. Member is paying £34,000,000 to America, he might as well know something about her history.

President Hoover has given the lead, and there is another gentleman who has given the lead—I hesitate from the Liberal Benches to quote him or to think that his name will carry any weight on the Labour Benches—and that is Mr. Mussolini, who is also a realist. Here is a thing which he wrote, in reply, I think, to the right hon. Member for West Birmingham (Sir A. Chamberlain)—and I cannot make out why so little notice was taken of it—in 1928; that is last year. Listen to what he wrote:

Here is another thing which I do not think will appeal to hon. Members above the Gangway on this side of the House. I think it was a great mistake to have treated the Soviet proposals with the scorn with which they were treated. There were declarations made the carrying out of which could have been tested. It was not a question of trusting their word. Until you disarm Russia you will not get disarmament in Central Europe, and I do not blame Poland and Czechoslovakia and Rumania because they do not disarm, when there is a formidable force on the other side holding doctrines which they regard as ruinous and destructive and devastating, and which may at any moment pour its armies across the frontier. They have done it once in Poland; they might do it again, so that I quite realise it is impossible to disarm until Russia is disarmed. [ Interruption. ] I do not mean disarm Russia by force, but I mean that until there is disarmament in Russia, you cannot have disarmament. I do not want anybody to make use of that phrase that I used in the way that I did not intend. What I mean is that until Russia disarms, Poland and Rumania and Czechoslovakia cannot.

But here comes Russia and proposes definitely a scheme, and a practical scheme, a scheme based on the destruction of material, which is really the vital thing. What happened? Everybody scoffed, everybody treated it as a joke, they hardly gave it civil consideration. It was civil enough, courteous enough, but there was no real consideration given to it by the Powers, and I have even heard very responsible Labour Ministers take rather a derisive view of that proposal. I think it was a mistake, a definite mistake. Any proposal for disarmament that comes from anybody ought to be considered on its merits, and not on the merits or demerits of the proposer.

I apologise for having taken up so much time, but I feel deeply on this, and I feel deeply as one who had a good deal to do with the manufacture of arms and who, in the name of Great Britain, appended my signature, as Prime Minister, on behalf of this country, to obligations which have been trampled upon up to the present by all the Allied Powers. You are not going to get peace with thirty millions of armed men and gigantic armaments. The chariot of peace cannot advance along a road cluttered with cannon. You must break up the machinery of hatred, and convert it into the mechanism of peace and progress.

Hon. Members on all sides of the House will congratulate the hon. Members who have raised this discussion. It is one of the most interesting discussions that we have had during this Session, and I am sure that we are grateful to them for giving us the opportunity which we have had this afternoon. The right hon. Gentleman the Member for Carnarvon Boroughs (Mr. Lloyd George) has dealt with both the questions raised in the Motion, and I propose to follow him, and to begin with the second subject with which he has just dealt—that of disarmament—and then to say a word or two at the end upon the subject of the Ministry of Defence. As I am just as anxious as he is to see some advance made in the matter of disarmament, I am very anxious to avoid entering into a controversy with him, but I wish to deal with certain observations in his very interesting speech. For instance, I shall be quite prepared to defend the position of this country against certain charges that he seems to make that, while we have compelled Germany to disarm, we have done nothing to fulfil our part of the obligations of the Treaty of Versailles.

We have done more than any other country. I am very glad that the right hon. Gentleman has given me the opportunity of saying this. We have abolished conscription, we have reduced our Army below what it was in 1914, and we were the first people to reduce the Navy after the Washington Conference.

I am glad to hear the right hon. Gentleman say that. I have the figures, and, after what he has said, it is unnecessary for me to deal with them. He had some observations to make about the Russian proposals. At that time, I was responsible for one of the defence services, and I went fully into these proposals. We did not turn them down off-hand, but because they were really quite impracticable. I will give a single instance. The proposals were based upon existing figures, and every country was expected to make a reduction, quite irrespective of whether or not it has made reductions during the last 10 years. The result of that would have been that a country like this would have been compelled to reduce its Defence Force far below the limit of safety, for the obvious reason that we had already made many reductions during the last 10 years, while other countries that had made no such reductions would have gained under the arrangement. I give that as an instance of the way in which these proposals were definitely impracticable, and I should be very much sur- prised to hear any right hon. Gentleman who speaks from the Government Benches take a different view of the Russian proposals from that which we took three years ago.

Then, again, the right hon. Gentleman made a very powerful appeal for including in any discussions upon armaments every aspect of the problem—reserves, material, battleships, officers and men, and so on. I agree with him that, in theory, that is absolutely right. Quite obviously, all these aspects of the problem ought to be included in any disarmament settlement. The question, however, that I asked myself during the last few years was, Are we likely to get any advance if we try to include everything at once? Is it not really better, as a matter of practical politics, to begin with the simpler aspects of the problem, to make a success of the simpler aspects, and then, when you have shown that something can be done, when public opinion in the various countries is intensely interested in what you have done, to make a step further and include these many other aspects to which the right hon. Gentleman has alluded.

Let me give the right hon. Gentleman a concrete example of what is in my mind. I take the case of air armaments. I do not think that half enough has been said about air armaments in these discussions about disarmament. I regard the growth of air armaments as the greatest of all the dangers with which the future is faced. I had ample opportunity, during the years I was at the Air Ministry, of seeing almost day after day the development of this terrible weapon, which has this sinister peculiarity over other armaments and other weapons, that, in the very nature of the thing, it acts speedily and without warning; that is to say, the period of delay that is contemplated under the Covenant of the League of Nations, during which efforts at conciliation may be made, during which every effort may be made to make peace between the aggressors, has no opportunity of taking effect. The air arm in the hands of an unscrupulous aggressor might be brought into play in the course of a few hours, and long before this moratorium period could be made use of, irreparable damage could be done to the civil population of some neighbouring country. That, in itself, makes the development of the air arm the most sinister of all the developments in the disarmament question, and particularly sinister, obviously, for a country like ours, in which the capital is in proximity to the frontier, and in which the civil population is concentrated between the capital and the sea.

It is very sinister that, year after year, the expenditure upon air armaments is increasing in a very remarkable manner in most of the countries of the world. I have here the figures of the last five years. I take the year 1925 as the basic year, and I compare the figures of that year with those of to-day. I find that during this time the air expenditure of Italy has risen 28 per cent.; that of France has risen 92 per cent., and that of the United States—a country that is totally immune from this form of attack—has risen by no less than 126 per cent.

No, I was going to say a word about that. If civil aviation national and municipal be taken into account, the expenditure in America upon aviation in 1929 amounts to the colossal figure of £50,000,000, that is to say, £30,000,000 on the Air Forces of the Army and Navy, and about £20,000,000 on civil aviation. These are very sinister figures, and the House would do well to give most careful attention to them. [HON. MEMBERS: "What about Britain? "] As far as the British figures are concerned, we have a record which is wholly in keeping with the admission just made by the right hon. Gentleman for Carnarvon Boroughs. There, in spite of the fact that we are in a very vulnerable position, in spite of the fact that our. Air Force to-day is only about half the strength of the French Air Force—to take a neighbouring air force as a basis of comparison—our expenditure from 1925, so far from going up, has actually gone down 10 per cent. We can claim, therefore, that in the matter of air armaments, we have a very fine record in disarmament.

These figures bring me back to the argument of the right hon. Member for Carnarvon Boroughs. He said, "Include in your disarmament discussions all the various aspects of the problem." I am afraid that the complexities are so great that, if you include in your initial discussions about air disarmament every kind of aspect of the problem—for instance, civil aviation machines, reserves, and the possibilities of industrial expansion—although I quite admit that all these questions are very relevant to the ultimate problem of disarmament, I believe that the only result of it will be that you will get no advance at all, and that you will find yourselves at Geneva entangled in every kind of complexity, the kind of complexity with which we were faced during the last four years, when, with the best will in the world, we could make no progress whatever. We were snowed under by a mass of technicalities and of complexities. With that experience behind me, I should say that it is much better, taking air armaments as my example, to move step by step, and to start by making a reduction in the machines that are within reach of the great capitals of Europe and to restrict them—the machines actually in commission about which we already know, for we know where they are, their size and their character.

I believe that if we were to begin by restricting these machines, which, in the nature of things, can be used for aggressive purposes, we might come to some agreement soon; and, having made a simple agreement of this kind, we might then go on and consider all the many other important aspects of the problem suggested by the right hon. Member for Carnarvon Boroughs. I would try, in dealing with the problem of air armaments, to work for the proposal thrown out by Signor Mussolini in 1928, to which the right hon. Gentleman alluded. I believe that the basis for an agreement, at any rate in Europe, for the restriction and reduction of air armaments might be found in parity between England, France and Italy. I believe that, if the present Government took up that proposal, and if they could keep the problem as simple as possible, and not allow it to be complicated by a mass of technicalities, a definite step forward might be made, and we might avoid the terrible risks that I foresee growing up as a result of competition in air armaments.

I would apply that principle to other branches of the problem, too. I would begin with the various arms that may be primarily used for aggressive purposes. For instance, in the Navy there are the battleships, submarines and the heavily armed cruisers—weapons that could be used principally for aggressive purposes—and I believe that the first line of advance should be made in restricting these aggressive weapons. The House will see from what I have said that, while I do not in the least dispute the fact that all aspects of the problem should be included in a consideration of disarmament. I believe, as a practical man, that we should do best to keep it simple at the start, and to advance step by step and not try to do everything at once. If only we advanced step by step, public opinion would be mobilised behind any Government and would insist on a further step being taken afterwards.

I now have a few words to say about the first part of the right hon. Gentleman's speech, the portion of it that dealt with the Ministry of Defence. He gave a very diverting and rather damaging account of the Service Ministers in the Cabinet.

He must have been thinking of the Coalition Government. I fail to recognise any great similarity between the position he described and the position that I occupied during recent years. So far from the Service Ministers entering into a conspiracy to support each other's Estimates, while I do not know what the experience of right hon. Gentlemen opposite is, I did not myself notice any marked alacrity of that kind during the years that I was in office. But be that as it may, I do not want to exclude the possibility at some time or other of a Ministry of Defence being created. With armaments developing as quickly as they are, no one can say what will happen in five or 10 years' time; but I venture to suggest that there is not at present a sufficient body of common thought between the three Services to justify the initiation of a Ministry of that kind here and now. If I may again, without being egoistical, take my own practical experience, it seems to me that considerable advances have obviously already been made towards a better centralisation in the field of the three Fighting Services. At any rate, when we were in office, we were very anxious to avoid overlapping and the triplication of Services. We had in operation what is called the "agency system," under which the Service that buys the largest quantity of some commodity or performs the greatest amount of duties in a certain sphere of defence, undertook those duties for the other two Services. Let me give a single illustration to show what I mean. The Army, being the biggest buyer of military clothing, was responsible for all the uniforms for the Air Force; and so, again, with other Services of the same kind. Year by year this system has been developing, and I believe that if constant pressure is put upon the three Service Departments to make the fullest possible use of it, the old charge of waste and triplication will cease to have any real foundation.

So much for the administrative side of the problem. What is much more important than their administrative services is the question of policy. After all, it is policy that involves the many millions of expenditure. I agree with every word the right hon. Gentleman said about the necessity of having the closest possible co-operation between the three Services in the matter of policy. Considerable advance in that respect has been made even since he went out of office. During the last Parliament there was organised the Chief of Staffs Committee. I do not think hon. Members have yet realised how very important this new Committee is. It means that every question of importance in the field of defence is now referred almost automatically to the three chiefs of staff for the purpose of getting, not their individual opinions upon it, but their joint opinion upon it. The right hon. Gentlemen opposite must know, from the records which are at their disposal, how constantly we, when we were in office—and no doubt it is so now they are in office—made use of this very valuable opportunity of obtaining a joint opinion from the three Chiefs of Staff.

These are advances in the right direction, they are advances in the direction envisaged by the right hon. Member for Carnarvon Boroughs. I am not sure my- self exactly how it will end. He thinks it should end in a Ministry of National Defence. I am not quite sure that a Ministry of National Defence is not really out of date. I believe it touches only half the argument. I believe that recent developments have necessitated a closer co-operation, for instance, in the use of certain arms, and so far that has gone in the direction of a Ministry of Defence; but I believe that side by side with that the whole problem of defence is progressing much further than the scope of the three Service departments. War now is a national effort, not simply the effort of trained armies and navies and air forces. I believe that defence is to-day a problem that goes far outside the boundaries of the three Defence Services and that a Ministry of Defence would merely create a super-bureaucracy, whereas what is really wanted is the closest possible cooperation not only between the three defence departments but between the three defence departments and the other great departments concerned in modern problems of defence—the Foreign Office, the Dominions Office, the India Office, the Board of Trade, and so on.

This makes me think that very likely we shall find in actual experience that the future will bring not a Ministry of Defence but something much more in the nature of the War Cabinet, that is to say a Committee in which all the various departments dealing with these many new implications of national defence will have their part. If that is so, I think that in the meanwhile the line of advance is not to attempt to amalgamate the three Services but rather to rationalise them, if I may use an expression of which we have become almost weary at this time of day. By that I mean that all possible waste should be eliminated by the fullest use of the "agency system," and that no department should undertake duties that can be better performed by one or other of the other departments. I think that by rationalisation we should get a much freer substitution of one arm for another where it can be shown that one arm can undertake a duty of national defence more efficiently and more economically than the existing arm which is undertaking it.

If I had the time, I could give the House many illustrations of what is in my mind. Let me give them a single example, that of Iraq and the Middle East. The right hon. Gentleman the Member for Carnarvon Boroughs was Prime Minister at the time and will remember the history of that question, and how it was decided, in order to save large sums of money, to substitute a certain number of squadrons of the Royal Air Force for the then existing troops—a very large number of them in the garrisoning of Mesopotamia. That substitution has proved so successful that while at one time we were spending £30,000,000 a year upon the garrison of Mesopotamia, we are now, by making use of this new arm for a purpase for which it is eminently well fitted, spending less than £1,000,000 a year. I suggest to the House that that is the real line of advance—not by amalgamating three Services which are not yet ready for amalgamation, not by means of creating a super-Minister, not by means of creating a super-Department, but rather by insisting that there should be no waste in the administrative services as between the three Departments and by also insisting that, wherever possible, one arm shall be employed in place of one of the other arms if it can be shown that that arm can carry out the duties more efficiently.

I hope I have made my own views on these two points clear to the House, and that in doing so I have not been egoistical. I have quoted only my own personal experience, because it seemed to me that in a debate of this kind, where we really are acting as a Council of State, where there are no party cleavages, what is really wanted is not a repetition of generalities that lead nowhere but an attempt to face the facts and see how we can make a real advance, first of all in the direction of greater economy and in making a better use of the limited defence resources that we have at our disposal, and, secondly—and this is more important—take a step forward in the great cause of the reduction of armaments, disarmament and a better peace for Europe and the world.

As this is the first occasion on which I have ventured to address the House, I trust I may receive kindly treatment; and as I find that words and ideas do not flow quite so freely as I should like, I hope that will also be taken into consideration. The matter we are discussing is probably the most important one the House can consider, and, as we have been reminded in the speech of the right hon. Member for Carnarvon Boroughs (Mr. Lloyd George), it is not only an extremely important matter, but also an extremely urgent one. I have never been one of those who believed that the peace of the world was secured by the coming into existence of the League of Nations. I realised that if the peace of the world is to be secured, it can only be in and through strenuous efforts being made by the people and nations who utilise the machinery of the League of Nations to secure mutual understanding and an abiding peace between the people. The remarkable thing that appeals to me in considering the question of peace and war is that the ordinary common people of the world, of all the nations of the world, have no desire for war, but have their hearts and hopes set on the continuance of peace. If war breaks out, the responsibility will not be the responsibility of the common people. They will bear the burden, they will fill the graves, but the responsibility for war must be shared by this House and other Houses of Parliament throughout the civilised nations. Therefore, the most solemn responsibility is laid upon all of us, not only on the Government but on hon. Members on both sides of the House, so to use whatever opportunity and influence they have as to prevent war occurring again. No one of us will have the right to hold up his head if by some lukewarmness in the cause of peace in this House another war should break out.

The old story that Carlyle tells so graphically in his "Sartor Resartus" is still true. The House will remember the picture he drew of the peasants from the English village of Dumbdrudge being fitted out with uniforms and sent to some foreign battlefield to meet the peasants from some Continental Dumbdrudge, fitted out with different uniforms. They faced each other, and blew themselves into eternity. Busy as the Devil is, not one of those peasants was in any way responsible, or had the slightest feeling of hatred or dislike of the people they were confronting in battle. We have been told by the right hon. Gentleman the Member for Bewdley (Mr. S. Baldwin) that one more war in the west and the civilisation of the ages will fall with a shock as great as that of Rome. Consequently, this problem is obviously one of enormous importance, and the solution of all other problems is conditioned by finding a solution to this problem. Some of us on this side of the House and some on the other side have dreams of the future of a world in which men and women shall be free and adequately cared for. We also have dreams of civilisation spreading to the dark places of the earth and of a general uplifting of the standard of comfort and intelligence round the whole of the globe. Those dreams are all conditioned by the wisdom and intelligence of the people discovering how they can stem back the possibility of war breaking out in the future.

The problem is whether it is possible for the elected and responsible representatives of the people to discover some means of preventing the mass suicide which another great war would involve. There has been growing up, and it is a common characteristic of the development of mankind, a sort of twin development, each of which is contradictory of the other. We have inventors producing machinery which has lifted some of the burdens from human hands and backs. We have had scientists in their laboratories trying to discover means by which they can allay human suffering. We have had men in all walks of life doing their utmost to lead mankind forward to a better condition of affairs. At the same time, side by side with all these efforts we have had in laboratories, workshops and engineering sheds other people utilising their great powers to produce means whereby in the future there will occur this mass suicide. Chemists are busy producing invisible poison gas and gas heavier than air. These developments in the history of mankind have been going on for some time and the need is for humanity to discover a means of harmonising the activities of all sections of workers in order that all their efforts may conduce to the common good and to all that is noble in mankind.

A good deal has been said by right hon. Gentlemen opposite with reference to the use of the aeroplane and how deadly a weapon that will become in the event of another war taking place. I was very much struck to read the opinion expressed by no less an authority than Sir Hugh Trenchard, who said that if he could have his own way, airman though he is, he would abolish aviation altogether because the harm it might do in time of war would be infinitely greater than any service it could render in time of peace. I was rather struck with the remarks made by the right hon. Gentleman the Member for Carnarvon Boroughs about the peace proposals which emanated from Russia. The right hon. Gentleman said that those proposals ought to have been dealt with differently. I wish that the right hon. Gentleman had given expression to an opinion of that kind at the time the proposals were first brought forward, because that would have enabled some of us to understand exactly how the right hon. Gentleman stood with regard to this matter. I take it that that means that the right hon. Gentleman the Member for Carnarvon Boroughs and his colleagues are prepared to support the present efforts of the Prime Minister in the direction of peace up to the very hilt.

In the Prime Minister we have one who, judging from his utterances on this question, is certainly committed to do everything that he and his Government can do to prevent another war taking place. I think the best thing that both sides of the House can do is to give their unanimous support to the proposals which the Prime Minister brings forward for ratification and consideration, so that throughout the nations of the world, there may be created the conviction that the people of Britain, whatever their political opinions may be, are completely unanimous so far as taking their place in the leadership of the nations of the world is concerned in the direction of disarmament and peace.

I want, first of all, to congratulate the last speaker on his very excellent maiden speech, which was good both in matter and expression, and we look forward with interest to his future interventions in our debates. He has said quite truly that there is no bigger question before the country than peace, and peace depends very largely on a reduction of armaments. Unless we get peace, all our social reforms and the hopes that many of us have of a better world will all go by the board.

I wish to say a few words about the Ministry of Defence. I do not agree with all that the right hon. Gentleman the Member for Chelsea (Sir S. Hoare) has said. The right hon. Gentleman said that they had to consider wider matters than the three Fighting Services. They had to consider trade and foreign policy. Surely in the War Cabinet envisaged by my right hon. Friend it is essential that defence should come in as one unit. You cannot have conflicting units. At one time it fell to my lot in quite a humble capacity to attend meetings of the War Cabinet, and I remember that on more than one occasion a large part of the discussions was taken up by unhelpful differences between the Admiralty and the War Office. I would like someone to tell us upon what the defence of the Empire depends. I should also like to know how we can settle these interminable and insoluble quarrels between different branches of the Fighting Services?

My right hon. Friend the Member for Chelsea mentioned the fact that the Air Ministry was able to keep the peace in Iraq far more cheaply than the Army. I see that in America the question has arisen whether the aeroplane and the airship are the masters of the battleship. The defence of these islands is shared in certain proportions by the Navy and the Air Service. I would like to know whether the money which we vote each year for defence purposes is being spent to the best advantage. When we vote more money for the Air Force, the Admiralty, instead of saying that that means a reduction of their commitments, insist upon having more money as well. I think we ought to have financial control over these matters. We ought to have a single Vote for defence, and we ought to lay down that a certain amount should be spent on the defence of these islands. Of course, we cannot say how it should be spent, and nobody can say unless he has control of all the three Services. In that case we could allot the money voted between those three Services in a way that would best suit the defence of these islands. I disagree with my hon. and gallant Friend the Member for Lewes (Rear-Admiral Beamish), who said that he would have none of these things. I do not think the House will agree with that view. I think that we shall have a Ministry of Defence, and I believe that that view is going forward with increasing momentum.

7.0 p.m.

I come now to the speech of the right hon. Gentleman the Member for Carnarvon Boroughs (Mr. Lloyd George). I agree with a good deal of what the right hon. Gentleman said, but I disagree profoundly with the attack which he made on the League of Nations, because I consider that it was most unfair to the statesmen of all nations who, during the last 10 years, have assisted in keeping the peace of the world, and have prevented more than one war breaking out. But I leave that behind. Perhaps the right hon. Gentleman was referring to the work of the League of Nations on disarmament and not to their general work. Well, I am quite prepared to meet him on that, too. I think a large amount of work has been done, and the fact that there has not been more is due to the immense difficulties. You cannot get a country to disarm beyond what that country considers to be the limit of national security. If you try to do so, you get yourselves up against a perfectly insoluble problem. Take ourselves, or France, or Italy. We should claim to settle what is our bare necessity for national defence, but in settling this question we should always be prepared to go in for concurrent reductions with other nations who will follow the same lines. We did that at Washington, and I hope and believe that we may. do something of the same sort with regard to the Air Forces on the lines so clearly put forward by my right hon. Friend the Member for Chelsea.

I am a passionate believer in civil aviation. I believe it is a great commercial force and a great peace force, but I recognise that all the civil aeroplanes can in a short time be converted into weapons of war. I hope as time goes on that will be a smaller danger than it is now. I hope we may have a European agreement. That has two advantages. It would limit the class of fighting material and the region in which it applies. At present there is a bargain of limitation of armaments that extends over a large part of South America. We sometimes do not appreciate the advantages these countries have. We think ourselves superior to these countries, which have a tempestous past and change governments by shooting the previous Cabinet, a process I have nearly witnessed. They have come to a bargain for territorial limitation of armaments. Cannot we do it? Take the Air Force first. It is a new service, not so ingrained in the mind of the people of Europe as are the Army and Navy. France could consent to a limitation in the air with much less objection than to a limitation of her army, because the army holds in French minds and hearts a stronger position than does the Air Force. The present position of the Preparatory Commission at Geneva is one of tangle. We have got into a maze of problems and conflicting ideas on all sorts of subjects, a maze of controversy on trained reserves, on material, on personnel, on money and all sorts of questions, and I do not see much prospect of a way being cut through that tangle at present.

I want to see disarmament, and I want to see it come now. I am impressed day by day more deeply by the immense dangers we are running by allowing all these armaments to be piled up, and unless we limit in the air we shall have the same competition there as we have in the Navy and the Army, and we shall start a race in armaments in aircraft just as expensive, more deadly and more destructive of peace than was the race that culminated in 1914. We should do something there, and I believe there is a better way for us to do it than is now being done in Geneva. I had the pleasure and honour of sitting for some time on a large Commission that discussed this question and I saw its extreme difficulty. I saw that you met countries whose problems are very different from our own, and I saw how real a thing defence is for some countries. In this country we do not want to attack anybody, and nobody wants to attack us, but in some countries in Europe you get a quite different temper, and I should like to see a part of this question isolated and settled.

The right hon. Gentleman has said that civilian and military air services are closely related. He has also said that he would like to see a European bargain. Does he refer to the military or civilian services?

I refer to the military air services alone, because I do not think you can limit the civil air forces. The business is so big that I do not think any country would agree. Limitation would be immensely in favour of this country as regards civil aviation, because we run our air services on infinitely fewer machines than anybody else, but I do not think other countries will accept this. That is my first point. My second is this: I look forward with expectation and hope to the London Conference next month. I believe that it will result in substantial reduction in the navies of the world. I see indications that it will not be an easy conference. I see it hinted that some countries in Europe may make objections, but I believe that the fundamental point, that the biggest factor in the conference, will be the agreement between this country and the United States. If we agree, and if Japan agrees, as I believe she will, you have the peace of the Atlantic and of the Pacific assured, and I put that much higher than European disagreement. I hope it will not occur, but if it does, if we have the great fact of a bargain between ourselves and the United States and Japan we can safely reduce our Naval Forces. We can economise and the Chancellor of the Exchequer may have to tax us less than I fear he will tax us now, and we shall have more money to spend on social services. We shall have given a lead to the world. We, a great naval nation, with the sea and the Navy very much in our hearts, shall reduce in a way the world thought we never should reduce. That will be a great lift up to the cause of peace and a great example to the world.

Governments sometimes view with a different mind the various Motions which are selected for discussion in parliamentary time, but I am quite sure the House will recognise that the present Government express no regret at all that the time should have been chosen by a private Member to discuss the question before us this afternoon. In the present state of the Government's negotiations and the efforts of the Prime Minister, it is all to the good that there should be an opportunity for the House to show as far as possible the solidarity of the opinion it brings to bear in respect of the Government's efforts in this direction, The hon. Mem- ber for Luton (Dr. Burgin) who moved this Motion—and I think it is only fair to him to say this—was not unmindful of the efforts already made in this direction by the Government, and by the Prime Minister in particular. Otherwise, I should be tempted, looking at the Motion, to ask whether it was really necessary. He has made it plain to the House, however, that he recognises the way in which the Prime Minister has initiated new conversations to secure the good fellowship of America in the cause of disarmament and cement our general friendship. I accept entirely the spirit in which this Motion is proposed. It asks that the Government should stimulate international action

The Five-Power Conference, which is to meet in London at the invitation of the present Government, will, we hope, in the words of the right hon. and gallant Member for Ripon (Major Hills), lead to a very substantial advance in international action in this direction, although I hope that what he has just said will not be taken as the general opinion of the House, namely, that, in any case, whatever comes from European countries, it is very essential to get agreement by, say, two or three. I want the agreement of two or three, but I think it would be a great mistake if we were to enter into a Conference of that kind giving the impression that it would be all right if we could get agreement by two or three of the parties to the Conference. That is just the kind of partial arrangement that we ought to make it clear to the Powers coming to the Conference is not what we desire; we want a general agreement between all the nations who come to the Conference. It is perfectly plain, from some references made to-day by the right hon. Gentleman the Member for Carnarvon Boroughs (Mr. Lloyd George), that, even if the right hon. and gallant Member for Ripon secured what he had in mind, namely, an agreement in the East, and an agreement in the West, there would still be a great danger if no agreement were reached on the part of the European parties to the Conference. Therefore, while I appreciate the spirit in which the right hon. and gallant Member made that remark, I hope that the point I have mentioned will not be lost sight of.

The right hon. Gentleman the Member for Carnarvon Boroughs made a speech to-night which will, I think, have appealed to the House very strongly. I remember him making a similar speech somewhere about March, 1928. There can be no question at all that the main fact which the right hon. Gentleman laid before the House to-night is not in dispute, namely, that there is at the present time, unless the nations get together, a grave risk, and I think the Prime Minister is entitled to say, not only to our people here but to the peoples of the world, that it is time we began to consider undertaking the risks of peace as well as the risks of war. As long as there is such a reserve of possibly, and, indeed, immediately inflammable material in the world, so long shall we be in constant danger of the outbreak of a conflagration. The right hon. Gentleman asked what the Government are going to do to bring about an improvement in that direction. I think it will be agreed that the Government have made headway. The right hon. Gentleman spoke of the Resolution which was moved by Viscount Cecil at Geneva this year, and said he was sorry that the Secretary of State for Foreign Affairs could not be present. I am sure, however, that he will agree, if he casts his mind back over the events of that period, that it would have been most difficult for my right hon. Friend to have been present at that time; but we must not detract from the authority of the statements of any British delegate who was appointed to represent the British Government, because the fact is that the delegate who speaks on behalf of the Government at that time does actually represent the views of the Government.

I also want to assure the right hon. Gentleman that he is pushing an open door when he asks the present Labour Government to devote their time and attention to doing all that they possibly can to expedite a settlement, and a satisfactory settlement, in that direction. I am bound to say, with great respect to the right hon. Gentleman, who is a much older and more experienced Member of the House than myself, that I agree with the words uttered just now by the right hon. and gallant Member for Ripon. I hope that undue weight will not be attached to his description of what the League of Nations might become. I am sure that he, who had a great deal to do with the bringing of the League of Nations into being, would be one of the first to say that a great deal of the work already accomplished by the League has been of very considerable value, and has actually avoided conflicts in some parts of the world. While, undoubtedly, he may be disappointed with the rate of progress of the Preparatory Commission on Disarmament, which, no doubt, he had prominently in mind during the Debate to-night, I trust that he will allow me, in the most respectful and helpful way, to express the hope that he will not use language of that kind, if he can avoid it, with regard to the general operations of the League, which we should all like to see consolidated and used to help the cause of peace in the world in general.

Many things have been said to-night with regard to the last part of the Resolution on the Paper, referring to the question of co-ordinating the Defence Forces of the country. The right hon. Gentleman the Member for Carnarvon Boroughs was very humorous in his references to co-ordination, with regard to his own personal experience of Cabinet operations in connection with the Fighting Services. I expect that, on every occasion on which such a point is raised, every existing set of Service Ministers would assure anyone speaking from the other side that that was not the case, and I expect that, if I said that to-night, there would be quite as broad a smile as there always is. Nevertheless, I am bound to say that I do think we have made a beginning as regards the co-ordination of the Services. We have already the Committee of Imperial Defence, which must provide a co-ordination of effort, and we recognise the need of giving proper and due weight to the opinions of the Dominions and other parts of the British Commonwealth.

There is also the point mentioned by the right hon. Baronet the Member for Chelsea (Sir S. Hoare), namely, the use of the Chiefs of Staffs Sub-Committee, and the possibility of getting advice given to the Cabinet upon questions of policy and strategy, not as the conflicting views of this or that Chief of Staff, but as the considered view of the Chiefs of Staffs as a whole upon any given problem. That is an enormous advance upon the position which the right hon. Gentleman found when he began to apply himself to the question of intensive War operations during the War. I think we are likely to see an improvement in that direction. The Cabinet, not because of the Resolution which is now on the Paper, but as far back as last June, decided that it was exceedingly important that there should be inside the Cabinet somebody who could really work together to co-ordinate, for the purpose mainly of economy, the control of the Fighting Services, and the Cabinet appointed a Fighting Services Sub-Committee, the constitution of which I am quite willing to give to the House. The Prime Minister sits in the chair, and we have the heads of the three Fighting Services, the Chancellor of the Exchequer—who is not anxious to throw away too much money—and also the Secretary of State for Foreign Affairs, because, as the right hon. Gentleman quite rightly says, and as, indeed, the hon. Member who moved the Resolution pointed out, the larger questions affected here are not merely national questions, but are international questions, and it seems to us that the Secretary of State for Foreign Affairs should always be available for consultation in regard to these matters.

Having regard to these points, I can say that we have not the slightest objection to, and in fact we welcome, the passing of this Resolution, and I am encouraged to hope, from another passage in the speech of the right hon. Gentleman to-night, that we are going to have for a sufficiently long time the same kind of support on the question of disarmament which has been evinced to-night, so that we may do really intensive work which will show really fruitful results, not merely in regard to the disarmament position here, but in regard to the disarmament position in the world generally. I think it must be recognised in all quarters of the House, as, indeed, it was by the Mover of the Resolution, that disarmament by one country alone will not solve the main problem. It is only when the world can be got to co-operate in cutting down armaments to the very minimum required for peace purposes that the problem which confronts us will be really solved. I want to say to the hon. Member who moved the Resolution, to the hon. Member who made his maiden speech in seconding it, and to my hon. Friends who have spoken in the Debate, that we are obliged to them for their contributions; and I want to say to the House in general that, although I have been given very little time in which to reply, we have listened with very great interest to all the contributions that have been made, and the Government will most certainly take into account all that has been said.

My right hon. Friend may not have had much time, but he said a great deal, and said it very lucidly, in the few minutes that he had. In the still fewer minutes that remain at my disposal, I want to make two suggestions. My right hon. Friend, perhaps naturally, rather brushed aside the strength of the movement for greater co-ordination. We may not be able to get a Ministry of Defence at once, but, as was said by the right hon. and gallant Member for Ripon (Major Hills) and others, it is coming in time; nothing can stop it. In the meantime I do not think my right hon. Friend is quite right in thinking that the Sub-Committee of Chiefs of Staff is sufficient. Chiefs of Staff are far too busy, they have far too many administrative duties, and what is really needed is a combined General Staff. You have the beginning of it in the College of Imperial Defence, and from that college you could make a combined General Staff, including Dominion and Indian representatives. I believe that that would do something, at any rate, towards co-ordination of strategy. It is not so much a question of administrative economy as the right hon. Baronet the Member for Chelsea (Sir S. Hoare) seems to think; while we are spending £120,000,000 on preparing for the possibility of war, we should, if war does come, have co-ordination of strategy, which is far more important than anything else.

My other point is this: With regard to the air, it is a fact to-day that, if the expenditure of more money be advocated for the greater encouragement of civil aviation, there are perfectly sincere people who think that this is an alternative system of armaments. Therefore, I would make the suggestion very seriously, and I think it should be considered, that civil aviation should be taken away from the Air Ministry altogether, and turned over to the Ministry of Transport. I think that in France that has been done, and that it is under the French Ministry of Commerce, or some corresponding Department—

If that be so it is a retrograde step. At any rate, there is no reason why in this country it should not be under the Ministry of Transport. Then it would be possible for us to develop this wonderful service for Imperial purposes, without suspicion that we were camouflaging armaments.

Question put, and agreed to.

Resolved,

"That, in the opinion of this House, it is desirable that His Majesty's Government should use its utmost efforts to stimulate international action for the study and eventual preparation of a treaty for the comprehensive reduction and limitation of naval, military and air armaments, including war material as well as personnel; and that it is desirable to co-ordinate the Defence Forces of this country."

Economy in State and Local Expenditure

I beg to move,

The Motion comes at an exceedingly appropriate time. For the past few days this House has been engaged in discussing a Measure which, if placed upon the Statute Book, would entail an additional cost of some £12,000,000 a year upon the resources of the nation. Prior to this Measure, we had, indeed, passed through all its stages in this House another Bill materially to add to the expense of providing pensions to the widows, the aged, and the orphans. Both these Bills will very materially add to our national expenditure. Over and above these two, there are other bills which we shall surely have to foot. We are told that in the near future the Government are going to produce legislation raising the school-leaving age. What that is going to cost the country is not quite clear to me at the moment, but that it must entail a bill of several millions of pounds is quite clear, and, even beyond this, we have to look forward to the cost of meeting the bill for the proposals which the Lord Privy Seal has on foot for the relief of unemployment.

It is idle for us to pretend that, to meet these obligations, there is any real expectation of being able to cut down our expenditure. We have no right to expect in the near future any return to the Treasury of receipts to any large extent, except perhaps in the direction of war pensions, and so it is not surprising that a great body of opinion in the country is growing that the direction in which we are now heading is a very dangerous one, and that the financial position in which we shall find ourselves in a year or two will, if not critical, indeed be very difficult. Up to now we have had no pronouncement whatever from the Government as to what their policy is so far as expenditure is concerned, and I think a good many others who sit on these benches believe that a few hours may well be spent by the House of Commons in considering exactly how we stand and how we shall stand unless some halt is called. I hope the result of this Debate will be that we shall get some expression from whoever is going to speak from the Treasury Bench of what the policy of the Government is so far as finances are concerned.

The Motion deals with the need for economy in expenditure. I am using the word economy more in the sense of not adding to our financial commitments—not so much of reducing our expenditure as in the sense of not adding to our existing expenditure. If we examine the revenue that was raised in the last Budget, we find that the expenditure on the obligatory, or statutory, services absorbed nearly £618,000,000 out of an expenditure, excluding the balancing services, of roughly £741,000,000, leaving a field for economy, or reduction, of only about £120,000,000. It must therefore be plain to all of us that the sphere open to us for economy on our present figures is not a very large one. That makes it the more important that we should be very chary indeed of adding to our expenditure and makes it still more difficult to economise. Even the ingenuity of the late Chancellor of the Exchequer did not altogether succeed in bringing about substantial economies. If that fruitful brain did not succeed, I very much doubt whether the brain of the present Chancellor will. There is one fact which seems to me to be very often lost sight of when we are discussing this subject. It is all very well to add to our commitments, hut it is difficult, if not well-nigh impossible, at a future stage to reduce those commitments. It is very easy for the Government to bring in legislation which increases our expenditure. Past experience has shown that it is almost impossible, however desirable it may be, for succeeding Governments, or even for the same Government, to reduce that expenditure once it has been voted.

I want to consider the effect that a high rate of expenditure has upon industry for, after all, that is one vital thing which we have to consider. I have no doubt that hon. Members opposite will refer to the findings of the Colwyn Committee and base their arguments upon those expressions of opinion. Indeed, I had already assumed that even before seeing the terms of the Amendment which it is proposed to move from the other side of the House. It is a fact that the Colwyn Committee came to the conclusion that to extract money from the pockets of the direct taxpayer and to redistribute it in the form of pensions, unemployment benefit, and social services did not, in effect, injure trade, but that, in point of fact, it benefited it to this extent, that it increased the purchasing power of the people and created an additional demand for the necessities of life. That opinion seems to me to be so specious and so vicious that I propose to challenge it at once.

In the first place, it assumes that those to whom this revenue is distributed will spend it more economically and more advantageously than if it were left in the pockets of those from whom it is taken. [HON. MEMBERS: "Hear, hear!"] Hon. Members opposite seem to support that view. We often hear it said on the benches opposite what a pity it is that so much extravagant spending on luxuries is indulged in by what are called the idle rich. Are those same critics so sure in their own minds that it is only the idle rich who indulge in luxury and wasteful expenditure. While I, for one, would not condone it in any section of the community, I say that it is not a symptom which is confined to any one class of the community. Whether it be spent in such amusements as attending football matches or betting at similar amusements, whether it be spent in cheap entertainments at the cinema or elsewhere, it is all luxury expenditure, and the Government have no more control as to how the recipient of unemployment relief spends that money than it has over the maner in which the Income Tax payer would spend the money if it were left in his pocket. Let us get out of our heads immediately that luxury expenditure is confined to one class of the community. Surely, those same critics will admit that the process of extracting money from one section of the community and passing it on to another costs money, and, in effect, what you are doing is that for every pound that you extract from the pockets of the direct taxpayer you are only paying to those who benefit under various forms of social service a sum less than that which you have originally extracted, and you are spending the difference upon salaries of Government officials and soon, none of whom to my mind can be classed as productive labour.

To get back to the effect of high expenditure on industry, I want to quote an extract from the Balfour Committee which inquired into the question of trade and industry. I presume, if we are to place reliance on the findings of the Colwyn Committee, it is just as logical to place reliance on the findings of the Balfour Committee. There is a passage in their report dealing with Imperial taxation which reads as follows:

I often think that it is a pity hon. Gentlemen opposite do not apply to matters of State the same arguments which they apply to their own private domestic concerns. We had a startling expression of opinion from the right hon. Gentleman the Minister of Health the other day. He said, in his own wisdom, that whether or not a nation could afford a thing depended upon how much it wanted it. I could not help wondering whether the right hon. Gentleman applies that principle to his own domestic life. Does he, when he is wandering down the street—as I presume he sometimes does—and sees in a shop window something which peculiarly appeals to his fancy and which he would like to possess, decide to buy that particular article according to the degree that he wants it? He does nothing of the kind. If he did, he would very soon find himself in the Bankruptcy Court. But hon. Gentlemen opposite are quite content to apply that reasoning to the expenditure of money which does not belong to them. Do not let us forget, as sometimes we are apt to do, that money raised by the Exchequer in the form of revenue belongs to nobody else than to those people from whose pockets it is taken.

I want for a moment to turn to one other aspect of this matter. If we are going to spend large sums of money on social services and in other directions, let us at least be sure that the money spent in those directions yields a proper return. The amount of money which we are now spending in those directions seems to be having the very opposite effect from that which it was intended to produce. No one supports more than I do the idea that it is eminently desirable that the working people of this country should insure against, not only the dangers and risks of employment, but suitably insure against the ordinary risks of life, health and so on. Are we achieving that object if we allow expenditure upon this one item to run away with us to such an extent that, whereas we provide that form of protection for one section of our community, the cost is so great that we are lessening the chances of employment for another section of the community? Owing to the enormous cost to the country which these services entail, it is becoming more and more difficult to maintain as many of our population in employment as we should like to see employed.

I am going to give figures to the House which, I believe, will startle hon. Members a great deal. The net cost of the National Debt, after all deductions are made, amounts, roughly, to between £250,000,000 and £260,000,000 a year. In 1928, the revenue raised from the taxpayers in this country in order to pay for our social services amounted to a sum of £379,000,000. In other words, to-day we are spending upon social services alone 50 per cent. more per year than the cost of the National Debt. It is as well that we should ponder for a moment upon the significance of those figures. It may well be that hon. Gentlemen will say that we are getting value for our money. I am beginning to grow more and more doubtful as to whether this form of expenditure is having the effect which we all in this House desire. I have said enough, at least, to make most unbiassed people realise that if we proceed along this road very much further and do nothing to curb our expenditure, we are soon going to find ourselves in very great pecuniary difficulties.

In the summer it is my hobby, when Parliamentary duties permit, to spend my time sailing the waters round our coast and in navigating those waters. One of the elementary principles of navigation is so to plan the course of your ship that you give a wide berth to all dangers, both visible and invisible. There is a large rock which bears the inscription, "National Bankruptcy," looming ahead of the ship of State. If I may, with great respect, give a word of warning to the watchkeepers—there are two of them only—who sit on that front Treasury Bench at the moment, I would say that, if they pilot the ship of State upon that rock, not only will they receive the condemnation of the public as a whole, but they will for certainty receive the sack from their own supporters.

I beg to second the Motion.

8.0 p.m.

I hope that the very interesting and weighty speech which my hon. Friend has made will draw an authoritative reply from the Front Bench opposite and that we shall get this evening something quite definite as to what the Government's financial policy, if they have one, may be. In the course of these last few weeks, there have been various utterances from Members on the benches opposite which make the present position one of very considerable uncertainty. The Chancellor of the Exchequer has used language which encourages the country to believe that his financial views are those of the very old-fashioned Radical with which the public are supposed to agree—strictly orthodox, mid-Victorian financial views. Some of his colleagues have expressed the view that finance is not really a thing that matters very much, and that what matters is whether you want a thing or not; you need not bother about the effect on taxation. Others, again, have quite definitely expressed the view that taxation, is an end in itself and that, by means of taxation, it is possible satisfactorily to re-distribute the national income. Those three views are sharply divergent, and I hope, before the House rises to-night, that we shall get some indication as to which view is held by the Treasury representatives on the Front Bench opposite

I shall return to the Government's attitude, but, before doing so, I should like to ask the House for a few moments to consider some more of the facts with regard to taxation as they exist to-day. We are by far the most heavily taxed country in the world. The comparative figures show that the English people pay per head in rates and taxes 396s. per annum, compared with 191s. in France, 166s. in Sweden, 162s. in Germany, and 113s. in Italy. These are the next most heavily taxed countries, with the exception of America. I have not been able to obtain any sufficiently recent figures as regards American taxation to be of advantage, but it is fair to say that the indications are that America is, after us, the most heavily taxed country in the world. It is also a fact that we are spending on public assistance alone very considerably over £1,000,000 a day compared with £55,000,000 a year in 1911 and £308,000,000 in 1926.

I would remind the House that that increase is really more rapid than it appears to be because it has been accompanied by a rapid decrease in the cost of war pensions. The Government have already very largely increased the commitments of the taxpayer and at present they seem to be disposed to apologise to their supporters for not having done very much more. It is also a fact that the hopes which have been expressed on various occasions that the increased expenditure of the Government would enable the local authorities to reduce their expenditure have invariably proved disappointing. When the Old Age Pensions Bill was first brought in 20 years ago, the view was then expressed that the real cost would be far less than the apparent cost, because of the very large relief which the payment of pensions would give to the burden of Poor Law expenditure. That hope has been completely disappointed. We were spending £14,000,000 a year on the Poor Law in 1908, when old age pensions came in, and we are spending over £40,000,000 a year to-day, while the number of persons in receipt of relief from the rates has steadily expanded. It may be the case, and there may be some hon. Members opposite who are prepared to say that it is the case, that the fact that we are doing so enormously more than any other country in the world in the direction of expenditure, and especially expenditure upon what are grouped together as the social services, and the fact that we are a country with the largest burden of unemployment in the world, are coincidences. That view may possibly be held, but he will be a very bold man who will seriously argue that proposition, because it is undoubtedly the case that there is some connection between the enormous burden which our industries have to bear in taxation and the great body of unemployment that afflicts our industrial centres.

There is another aspect of the matter to which I would like to draw the attention of the House, and as it is an aspect which was very ably dealt with in an extremely interesting maiden speech by the hon. Member for Cirencester and Tewkesbury (Mr. W. S. Morrison) a few days ago, I do not want to detain the House by talking about it at any length. It is a fact that whilst these large increases in expenditure upon our social services have been taking place, there has also been taking place a great expansion in the prosperity of what one may call the minor luxury trades, which depend for their prosperity upon the purchasing power of the great mass of the people of this country. Taken by itself, there is no one on any side of the House who would not be delighted at that evidence of purchasing power, and that expansion of what I may call the minor luxury trades, but we must bear in mind that that expansion has been accompanied by a great decline in the prosperity of the great basic trades upon which, in the long run, the permanent prosperity of our people must depend.

I suppose that no one would be prepared to deny that the increase in the prosperity of the minor luxury trades is closely connected with the increase of expenditure upon social services. I do not think right hon. Gentlemen opposite would deny that for a moment. The great prosperity of the cinematograph industry, the artificial silk industry, the tobacco industry is directly connected as cause and effect with the very large amount which is spent in one form or another upon social assistance. He would be a very bold man who would be prepared to deny that the burden of taxation and the great volume of money spent upon the social services has no connection with the grave burden of unemployment, the grave depression that afflicts our great basic industries, vitally important industries, which are going through at the present time and have for some time past been going through a period of very acute depression.

There is one more aspect of the situation to which I would refer before I come to the question of the Government attitude. It is usual in this House or even outside for anyone who is rash enough to talk of the effect upon the moral fibre of the nation of the expenditure upon the social services, to be greeted with ironical cheers or, in some cases, with mocking laughter. I am not going to refer to the effect upon the moral fibre of the nation. It is probably the case that most people would exchange a good deal of moral fibre for an assured income, and that most people are not nearly so much interested in moral fibre as they are in the purchasing power of their wages; but the figures show that the great burden of taxation which the industries of the country have to carry has a very adverse effect upon the real wages which the people of this country enjoy. The apparent wages have gone up very considerably but the real wages, the purchasing power of those wages, have not expanded during these years of heavy taxation. They have, on the contrary, gone down. There, again, there can be no doubt that it is a case of cause and effect.

It is by no means fully realised by the majority of the voters in this country who vote light-heartedly for increases in expenditure, directly or indirectly upon themselves, realise what a disastrous effect both upon wages and upon employment is produced by the taxation which they are rash enough and foolish enough to believe, and which they are deluded by hon. Members opposite to believe, are paid, not by themselves, but by others. They realise, of course, that the various pensions and insurance schemes do to some extent come out of their own pockets. They realise, for instance, that in regard to the Unemployment and Health Insurance the State asumes control of a certain proportion of a man's wages, and spends it for him upon out-of-work benefits and health benefits, or whatever the case may be. The working men of this country realise fully enough that under that system they are in many cases paying for benefits enjoyed by others.

As my hon. Friend has just said, and I think all of us will agree, the insurance system has produced immense benefits, and I think the people are quite content that their wages should undergo a weekly deduction for the benefit not perhaps directly and immediately of themselves, but for the benefit of the insured population as a whole, but I do not think that it is realised that the working man's contribution to social insurance does not by any means end with his own contribution. In very many cases the man supposes that when there has been the deduction made from his wages, that is all that is done. He will realise before very long, if things continue as they are at the present time, that not only does his employer's contribution come to some extent out of his pocket, but also that the very large burden of taxation which falls upon his employer is affecting directly his wages, and his chance of securing employment.

Yes, and lost the election by 10,000 votes. The capacity of the employer to pay wages, his capacity to put down plant, his capacity to extend his works are very greatly imperilled by the crushing weight of taxation which industry has to carry to-day. The hon. Member for Bridgeton (Mr. Maxton) said the other day that it is no good saying that industry is over-taxed when it is so obvious that there is plenty of money available for rash speculation and for expenditure by the idle rich. It is true that there is plenty of money available for rash speculation, and I believe that that is one of the evil effects of rash legislation. It is inevitable, when taxation is as high as it is now, and when the security of savings is so obviously precarious, as it must be precarious when one of the parties in the State, the party which commands the largest number of votes, or the party which com- mands the second largest number of votes, is advocating a programme which will involve an addition of £200,000,000 or £300,000,000 a year burden upon the taxpayer. The country has begun to realise that the pledges of hon. Members opposite do not, perhaps, always mean what they say, but it is obvious that when one party in the State is pledged to such vast expenditure, as is the party opposite, there can be no real security of saving. One of the inevitable effects of that falling security is that people will be attracted to speculative rather than sound investment, and that the short view will be more attractive than the long view. That is one of the disastrous effects of heavy taxation and the threat of heavy taxation.

There is another way in which hon. Members opposite and their supporters are mistaken in their view of the incidence of taxation. They take it almost as gospel that those who are most severely hit by taxation are the people whom they are pleased to call the idle rich. I believe that the power of taxation to damage the so-called idle rich is very greatly exaggerated. It can and no doubt it does inflict hardship upon them in some cases, particularly upon those people who have all their eggs in one basket. What is called the landed interest has been very heavily hit by high taxation, but in the aggregate the so-called wealthy people are not so severely affected as some people believe. The effect of high taxation is to reduce the supply of capital available. Even the Colwyn Committee found that the real savings of the Nation had diminished through high taxation from £150,000,000 to £200,000,000 a year.

It is quite inevitable that when you decrease the supply of any commodity its price will rise, and it is a fact that money to-day can and does command a very much higher rate than it commanded in the pre-War days of lower taxation. There, again, we have a case of cause and effect. Although I do not want to put it forward as a general fact that wealth is not affected by high taxation, because it is, I do say that wealth is far less adversely affected than many people suppose; but the conditions of labour, the real purchasing power of wages, the chances of getting employment are very much more severely affected than is commonly realised. The chief sufferer from heavy taxation is not the so-called rich man; the persons who are really suffering from such taxation to-day are the hundred of thousands of men who want jobs and cannot get them, the hundreds of thousands of men whose wages have a far less purchasing power than they had not many years ago.

I turn now to the Government and their attitude to this question. I will put one or two simple questions to the Financial Secretary to the Treasury, and I hope that he will be able to give an answer. Do the Government share the view expressed by some of their supporters that there is still an ample margin of taxable wealth available, and that large additional sums can be extracted from the taxpayer without doing any serious harm? Do the Government or do they not regard taxation as an end in itself, or as a necessary evil, to be kept as small as possible? Do they adhere to what I understand is the orthodox Socialist view, that it is undesirable to leave wealth in private hands; that wealth can be far better directed by a Government than by private individuals; that it can be directed in more remunerative channels by a Government than it is by private individuals? I should like the right hon. Gentleman to deal with the question as to whether he does regard it as desirable to take the power of investment out of the hands of individuals and transfer it to the Government? Hon. Members on this side of the House believe, as I do, that England lives and must live by trade. Trade is already suffering severely from the fact that taxes are too high, and the programme of the present Government, even in the attenuated form it is, is one which can only make the position of the people worse by damaging our trade. If they pursue that policy they are condemning themselves, and future Governments, to the barren and hopeless task of making efforts to relieve a volume of poverty which will be constantly increased by the very efforts they are making to stem it.

I beg to move, in line 1, to leave out from the word "That" to the end of the Question, and to add instead thereof the words:

The main gravamen of both speakers was the principle of taxation in general; taxation as it is now and as it has been established by a Conservative Government, with no reference to what we might do; indeed to no specific question whatever. I am not quarrelling with that. We cannot anticipate the Budget discussion, and all I propose to do is to try and to explore the general basic principles which underlie the Motion, which, I think, reveals very important differences between ourselves and hon. Members opposite. It is to this fundamental difference that the Amendment addresses itself. There is, I think, in the first place, a fundamental opposition of view as to what is the function of a Govern- ment. Is it to be the watch-dog of private interests or is it to be the enlightened pioneer along the path of social progress and national good? We take the second view. Hon. Members opposite, I gather, take the first view. Connected with that and with the principle which underlies everything that has been said in this Debate and in previous Debates on widows' pensions or unemployment insurance, there seems to be in. the minds of hon. Members opposite an assumption of a profoundly pessimistic character as to the amount of wealth in this country or even in the world. They seem to me to take the view that there is a lump of wealth, and that if people use it in one direction it is not available for anybody's enjoyment or service in another. To that assumption we object in toto. We regard taxation, wisely placed in its incidence and wisely administered as to its results, not only as an instrument of social betterment, readjusting the gross inequalities which at present exist, to our grave economic loss, in the distribution of wealth, but as a means whereby the available total of wealth can, in fact, be increased. That is a point of view to which we have striven to give expression in our Amendment. I want to come back to a sentence from the Colwyn Committee, because I cannot take seriously the rejection of the findings of that Committee by the hon. Member. Anyone who glances down the list of names of the members of that Committee must feel a great deal of hesitation in setting their own individual opinions, however well founded, against the considered judgment of men of so much experience and knowledge.

The sole object of Debates in this House is that hon. Members should express their own opinions.

In that case I will leave the matter as it stands, because it is open to hon. Members to revise their recollection as to the personnel of the Colwyn Committee. I have not the courage to dissent from it on a matter so technical. They say that they are quite satisfied that: minds revert from the narrow, limited and false conception of national economy which has been accepted too long, and to take their minds back to the true interpretation of the word "economy" itself. We stand for economy on these benches, provided economy is interpreted as it should be interpreted to mean wise national housekeeping. That is the true meaning of the word; and in that sense we accept it. We take it to mean a wise adjustment of our national means to desirable national ends. If I may put it in the sense of the idea conveyed by the phrase "wise housekeeping," we regard the human or national family as the object of our economy, and we seek to use the national resources so as to promote the wealth not of some selected members of that family but of the whole of that family. A mother in ordinary life who definitely prefers some child who happens to be prettier and gives to it all that the household can afford at the expense of the other children, who does not mind whether the other children are starved and ragged, poorly fed, under nourished, untrained, while one favourite child receives all the advantages, we should call a thoroughly bad housekeeper. A nation which treats its children with that degree of inequality is also guilty of being a bad housekeeper.

Looking at our traditional national Budget from that point of view there are items in it which we certainly think should be reduced. A wise mother does not keep a large quantity of firearms lying about the house. I am not going to dwell upon the fact that we spend over £112,000,000 a year on armaments, because that aspect of the subject has been thoroughly and most helpfully explored in the previous Debate. It is not necessary to emphasise that point. Economy in that direction every Member of the House without exception supports in his heart, though the test question is how far the impulses of our hearts are going to be carried into action. The other main and outstanding item upon which I would like to present a suggestion to hon. Members opposite is this question of the National Debt. Those who courageously take the view that the Colwyn Committee is wrong when it decides, after very careful examination, that the burden of taxation, even the burden of taxation necessitated by the payment of interest on the National Debt, is not in fact a heavy burden on industry, those who take the view that the debt is a heavy burden upon enterprise because of the taxation which it necessitates, have open to them a course of genuinely unselfish and patriotic action.

As it is, Income Tax taxation in toto, plus the whole produce of the Super-tax and half the produce of the Estate Duties, are required for nothing but the service of the Debt, since, in fact, that part of the Debt which is held internally is largely held by the social group represented on the benches opposite, they have a great opportunity. If they take the view that this Income Tax burden, the tax burden generally necessitated by the service of the Debt, is in fact crushing enterprise, let them make a patriotic gesture and tear up their holdings. Indeed, if they have the temerity to challenge the view so clearly expressed by the Colwyn Committee, I think that that is the least that they can do. I want, however, to return to the Colwyn Committee and to what is, after all, a leading sentence of theirs which sums up their general argument. This is the Majority Report that I am quoting: a great deal of general evidence, the sum total of our findings had to be that the burden is not considerable. But let me return to my quotation and complete it:

I recommend hon. Members to refer to the passage in the Majority Report of the Colwyn Committee, in which an exceedingly ingenious argument, put before the Committee by a very distinguished Member of this House, is, after very careful examination, rejected—the argument derived from the reduction in the volume of national savings. The argument was that a certain volume of national savings is required to place people in industry. That capital sum was estimated rather pessimistically at £400 a year. That sum was required to place people in industry and equip them with capital goods. In examining the figures of national saving in relation to this estimate, the Colwyn Committee found that the sum required for that equipment of works amounted, for the next quinquennial period, to £50,000,000 a year. The sum drops year by year after that owing to the movement of population. As to the £400,000,000 to £500,000,000 of national savings they say:

I want, in conclusion, to remind hon. Members opposite that the pessimism about the future of this country from which there is a great temptation to suffer now, bears a striking resemblance to the pessimism which was felt and expressed about the beginning of the 19th century when this country, as now, was emerging from a long and crushing war. Then, as now, we had persons saying that the population was growing out of all proper relation to the means, of subsistence. Dr. Malthus was filling one section of the population with forebodings and Ricardo was holding out the most terrible prospect of industrial conditions; the iron law of wages was then enunciated with as much emphasis as the rigid limitation of the fund from which the cost of social improvement can be met is now enunciated. Then, as now, the way out lay in the utilisation, on the basis of natural resources, of the splendid creative powers of the human mind, powers which can only be used fully when they are used co-operatively, but powers which, when they are released for the enlightened direction of the community, can be applied for social benefit and industrial expansion.

I beg to second the Amendment.

It is my duty to congratulate my hon. Friend upon her very successful maiden speech. I could wish that the business of congratulation was in more experienced hands, but it could scarcely be in more sympathetic hands because it is but a few short months ago since I myself, with very much less success, underwent that ordeal. I am very glad to think that such a contribution to this Debate should have been made by the hon. Lady who is the senior representative of a very important industrial constituency adjacent to that which I have the honour to represent. We are glad to have an opportunity of debating this important subject. It scarcely lends itself to humorous or emotional treatment, and yet it is a subject on which we all feel very much. When our pockets are touched the tenderest part of our anatomy is usually reached. This is not unnatural because the first tax ever laid upon man was one which directly affected him, when in the quietude of his rest—perhaps his last rest—there was taken from him that from which woman was formed. Then was a tax laid upon man which has persisted ever since, and that, more than anything else, justifies the fact that this Amendment should be moved by a very distinguished descendant of that first important tax.

I do not wish to trespass on ground which has already been well covered, but I would remind the House of the order of the catalogue of taxation which was approved of in the Report of the Colwyn Committee. This is rather important as regards the Amendment. The Committee revised the order suggested by Mr. W. T. Layton, and the order approved by the Committee was as follows: service of external Debt; interest on internal Debt; repayment of internal Debt; pensions; defence; social expenditure and other services. I was not surprised to hear the hon. Member for Grantham (Sir V. Warrender) say that economy in his view would not mean a reduction of present expenditure on unemployment, pensions, and the like, but rather would mean no further addition to expenditure. I doubt if any Member, even if he felt in favour of it, would dare to advocate a reduction of present expenditure. That is the extraordinary thing. These threats are held out. The word "economy" is used largely, and sometimes loosely, when we are facing up to the present necessities, but once those necessities have been met there is a complete alteration in the meaning of that simple word. The hon. Member spoke of the £12,000,000 extra which is being spent on unemployment and the increased expenditure of pensions, and he seemed alarmed at the cost likely to be incurred by the raising of the school age.

He then went on to make a statement which ought not to be passed over. He said that the question of the effect of the high rate of expenditure upon industry is one of vital necessity. But there is a necessity other than that involved in the effect of expenditure on industry. There is the vital necessity of the people engaged in industry, and I wonder how we sometimes persuade ourselves to forget that there is an investment of capital in industry apart from the investment of £ s. d. There is the capital of men's lives, which is more seriously at stake, as I conceive it, than even the capital in the form of money which is invested in industry. At any rate one who has invested money has hopes of receiving an adequate return in dividends and ultimately getting back as much capital as was put in, or perhaps more, but that does not apply to those whose only investment in industry is the investment of their bodies and minds —sometimes more of one than the other but always a combination of the two. That is the capital upon which there is a daily demand and, as I understand the generality of employers, at the end of 30 or 40 years of such investment there is no suggestion made to these people that they should receive any sort of compound sum as a return for their investment and their years of hard work.

When it is suggested that they should receive adequate pensions, when measures are brought forward to supplement the meagre savings which some of these people can make, we are met with the statement that such expenditure ought not to be persisted in and that, as the noble Lord the Member for West Derbyshire (Marquess of Hartington) has suggested, it might have a serious effect upon the moral fibre of the people. I cannot conceive that at all. I should like to feel that I was wrong, but sometimes it is proved to us that those who are born with an assured income do not develop the moral fibre that is always a useful and a necessary thing. It is a fact that silver spoons are often to be found in wooden heads. When one compares the scholastic attainments of those boys who come from the working homes of this country, who fight against adversity, and who go to the universities, with what is, very often, the failure to attain of those who have had every opportunity, I think the proof of what I have said is to be found, that very often those people who are born with silver spoons in their mouths have fairly wooden heads.

I read out just now the list of taxation approved by the Colwyn Committee. Economies there may be in some directions. The hon. Lady, I thought, most effectively suggested to hon. Members opposite where they might, with great patriotism and a voluntary movement, create a very substantial reduction for us, and we have had to-day in this House adequate pointers as to where other reductions might be made, on the question of defence. I hope that that reduction will still further continue. When I contrast the expenditure at present upon certain forms of social service, say, expenditure upon maternity welfare, with the expenditure upon war—the most dangerous occupation in this land is not that of soldiering or coal-mining, but the holy vocation of motherhood—the figures are staggering and perfectly appalling. We spend something like 5d. in the pound of our taxation upon the care of mothers at that most critical time, and their children. We might well, before we commit ourselves to agreement with Motions such as that proposed from the opposite side, consider relevant facts like that.

I do not desire to refer in detail to the finance of the Colwyn Committee, because my hon. Friend who moved the Amendment has placed before the House all that was necessary in that connection, but I would suggest that there is such a thing as wise expenditure, as we suggest in the Amendment. I was rather surprised to hear so calmly enunciated the doctrine that economy could be interpreted merely by a refusal to add to expenditure. That is not wise housekeeping. There is an economy of additional expenditure, and the people whom we, on this side, represent know very well that they find again and again that an increase in certain departments is more than counterbalanced by a saving in other departments. It is a common axiom of working-class homes, and a very wise one too, that it is far better to pay increased bakers' bills than presently to meet a heavy doctor's bill.

Wise expenditure will be expenditure in proper directions, and why it should be thought that social services are unproductive I do not know. Wise expenditure on social services is bound to mean better productive capacity, better minds, better fibre, better moral fibre too, better in every way, and that has its effect in better production and in increased consumption; and I should imagine that one of the things which we in this House are being forced to believe, whatever our views may have been before this particular Parliament assembled, is that there will be no real solution of the unemployment problem until we have been able very vastly to increase the home demand for and the home consumption of what is produced. I am still hopeful that somewhere in that direction an attempt will be made at exploration, but social services wisely spent and administered will, I believe, increase productive capacity and the demand for necessary things.

We are continually faced in our industrial centres with difficulties that have no direct relation to the incidence of taxation at all, and I wish to draw at- tention to a very significant statement made during the recent arbitration proceedings in the cotton trade. When the workers' representatives called attention to the fact that some of the employers negotiating were paying very large dividends, they were met with the answer that that money was derived from investments in mills abroad. I am not calling in question the right, the propriety, and the wisdom of investing abroad, but I suggest that to put before us the contention that our industrial difficulties and unemployment are due to taxation at home is to view the thing from an exaggerated as well as a wrong perspective.

The Amendment was so amply and competently put before the House that my task was made a comparatively simple one, and I do not desire to stand in the way of other hon. Members who ought to make contributions to this Debate, and who will. It is one of the pleasures, I think, as well as one of the privileges, of being here to find that upon every question brought before this House there are some experts. I do not claim to be among that category upon this particular matter, but I am very glad to second the Amendment and to direct the attention of the House rather to the question of wise expenditure on social purposes than to a mere ruthless economy which might deprive us of useful social services and also affect seriously the moral and the well-being of the people of this country.

I hope that nothing further will be said to-night about working people who go to football matches and cinemas. I have now entered employment which very effectively keeps me from matinées and evening performances too. It is the first time that I have come to London to undergo such total deprivation, and I can only hope the results will have made it well worth while, but, if I were a working man, in danger of a daily monotony of toil, I think I would be very glad to have an opportunity of even the psychological expression of interest which attendance at football matches affords. It is not all gambling or merely spending an hour. When I have been in football crowds, I have learned how effectively many people, always bigger than I am, play the game, while the 22 people on the field are also playing. It is that real expression of interest which is so valuable a safety valve for these people. Perhaps I have taken a more serious view of the statement that was made than was intended, and, if so, I am sorry, but I felt obliged to put that point of view.

Even after that is said—and this is my final word—working men who go to cinemas and theatres for their enjoyment and their recreation are taxed infinitely higher than the rest of us, who may be able to afford better seats. Those who go to 6d. seats in the cinema pay a tax equivalent to 2d. upon their seats; those of us who go more rarely, and therefore in a more classical manner, and who go into the 5s. seats, pay a 9d. tax. People who spend 5s. in the cheaper seats spend actually something like three times as much in taxation in reaching the figure of one seat that we may take. They have their recreation, and they are entitled to it. Unfortunately, at present, the incidence of taxation is such that they pay very much more heavily, even in revenue to the State, for their simple and necessary amusements than we do who perhaps work less hard and who certainly work under very much less strain from the point of view of monotony, for there can be no monotony here, however exacting our duties. I hope this House will be able to give its support to the Amendment.

The House thoroughly enjoyed the speech delivered by the hon. Lady the Member for Black-burn (Mrs. Hamilton), not only for its charm of manner, but for its profundity of thought. The general statements which were made by her were those that obviously came from a mind well-exercised in the problems of political economy, and the House must recognise that its debating strength and skill is heightened by the election of the hon. Lady. She expounded the general effect on trade of taxation, but her Amendment is not precise, for I observe that she uses the word expenditure when I presume she means taxation, and she uses the word income when I understand that she means revenue. If she is lacking in precision in the drafting of her Amendment, I hope that she will not mind my saying that it is precision in matters of taxation which really matter, and really count. We want to know whether in her doctrines she really believes that taxation imposes a burden upon industry. I gather from the Amendment, as it is drawn, that there is an admission of that fact. We are entitled, if there is an admission of that fact, to discuss what effect direct taxation, apart from indirect taxation, has upon industry. I am sure that the Financial Secretary to the Treasury will not get up at that Box after I have sat down, and inform the House that he believes that the Income Tax, the Super-tax and the Death Duties have no effect upon industry. He knows only too well that they have a very serious effect upon industry, and he will never think of justifying the statement of my hon. Friend above the Gangway, who asserted that our depression was due almost entirely to high taxation. I do not believe that doctrine, but I should not be so rash as to say that direct taxation of any kind is not a burden upon industry.

9.0 p.m.

I am not going to quote from the Colwyn Report or the Balfour Report. Both reports are the result of compomise, and compromises can always be quoted by both sides. The hon. Lady knows what went on in the Balfour Committee. For months they sat trying to reconcile the irreconcilable, and they produced a report that can be read two ways on a good many of the topics which we are discussing. Let us see the actual effect that a high Income Tax has upon industry. With an Income Tax of Is. in the £, there would be left over more dividends; it does not matter whether they go to rich or poor people. I am speaking of dividends as a whole. Let us not imagine that all companies, even the joint stock companies, are owned by the idle rich. It is wonderful how wide now is the possession of interest in public concerns of one kind and another. That dividend, when it is paid out, would be minus 1s., and the shareholder would receive 19s. If the tax is 4s. 6d. the shareholder would probably receive 20s. less whatever proportion of the 4s. 6d. for which he is liable because of his stage in the scale. He would have left, say 15s. How is that to be disposed of? The hon. Lady puts her finger on an important item of this problem when she says that wise spending is not to, be deplored; it is unwise spending which she has in her mind. We shall all differ as to what is wise and unwise spending, but one thing is certain: If the shareholder is a saving individual, if he wants to accumulate his shillings, and then his pounds, and put it on deposit at the bank, and ultimately to buy some stock and shares somewhere else, so that he can add to his capital interest to which he is morally as well as financially entitled, he will obviously have a larger amount available with a low Income Tax than with a high Income Tax. I should like to have heard the hon. Lady on that important point, because it has a direct bearing on the industry of this country. There are some shareholders who throw their money away and do foolish things. They buy very expensive motor cars when cheap ones would do quite as well, or they go for expensive holidays, and throw their money about freely on the Continent when their health would not have suffered if they had gone to the Cornish Riviera.

There are individuals in every class who will spend foolishly, but, on the whole, it may be said that the people of this country, at all events in the Northern half of it, retain a very large amount of their annual income each year with the idea of increasing their savings. Their savings do not all necessarily go into War Loan; they go into all sorts of things. The sum total of capital is increased, even if they leave the money on deposit in the bank, which a great many wise people do. I remember a distinguished Member of this House, no longer with us, who, before the War, put the whole of his savings into the bank on deposit. He said that he knew nothing about investments, and was satisfied with the security of the bank; and when the War was over, he was worth, so far as we could tell, twice as much as his equally wise neighbours who put their money into investments and War Loan. If money is put on deposit, it means that there is much more money for the banks to finance various industries, and for people to borrow so that they may extend their operations at home and abroad. If a bank has £200,000,000 on deposit, and is a very cautious institution, it will be able to lend about £100,000,000 to its various customers. It is true that it is its customers' money, but that is the whole point; it is the customers' money which has accumulated from deposits, and they must of necessity be high if the Income Tax be low.

I know that my hon. Friend the Financial Secretary to the Treasury is one of the most distinguished economists ever produced in Cambridge; he is one of the very few men in this House who, I believe, crowned his career with three Firsts, and one of them, I am sure, must have been for economics, because he speaks with such facility on that subject. Let him, when he comes to the Box, show how he would avoid a diminishing sum total of national savings by keeping the Income Tax at a high level rather than at a low level. I am not going to argue the point whether Income Tax enters into the cost of production; it is an arguable point, and is one of the problems always set in economic circles. I do not care whether it enters into cost of production or not. I make my simple illustration that, in so far as you diminish the savings of the people, you diminish the power to extend and to finance industry; and, unless we have that power constantly on the increase, we cannot keep pace with the requirements of the population. That is the first point that I would make, namely, that to assert that direct taxation does not constitute a burden upon industry is in practice un-provable. On the contrary, I believe that we can prove the opposite to be the truth.

The next point is: How are you to spend the national money to the best advantage—I will come to the sum total of expenditure before I have finished—because the right hon. Gentleman has got a very difficult task before him in the next six months? He and his colleagues have got to make ends meet, a mightly difficult job. But let us first of all deal with expenditure. During the last few weeks we have been committing the country to very considerable expenditure. I do not hold the view of some of my hon. Friends upon the Conservative Benches that that is going to be an unmixed burden upon the industry of the country. I have seen the expenditure on the social services having a very direct effect upon some of our basic industries I remember when we first started old age pensions—it was a comparatively small payment then—that there were those in this House who urged that even that amount of expenditure would be a burden. As far as one can trace how money goes when it is distributed through a million channels instead of through a thousand, I should say that the money distributed in old age pensions went almost entirely into the basic industries. Those people could not go to cinemas—there were no cinemas in those days; but they could not go to anything of the kind. They did not want to squander their money. They found it difficult to make ends meet and provide themselves with the prime necessities of the day out of their 5s. It probably bought them a bit of meat.

You have only to multiply one instance a million times over, and you have an increased demand for home-grown meat, or at all events, meat which has been chilled, let us hope in the Empire. If it did not go in increasing their meat ration it probably went on clothes which otherwise they could not have bought, and the effect of that was to multiply a million times an increased demand in the cotton trade and in the woollen trade. By making that distribution you were, it is true, withdrawing the money from the use of a thousand spenders and distributing it amongst a million spenders, but the million spenders were bound in the circumstances of their lives to spend the money in the basic industries of this country, So that when we speak of the harm that is done by national expenditure on social services we must always qualify it by the fact that in some degree—I do not know exactly where you reach the point where it ceases to be true that the money that is to be spent on these social services is distributed on the whole amongst the great basic industries—it is spent mainly on the necessities of life.

What have we been doing in the last few weeks? I know it must have been uppermost in the minds of my hon. Friends of the Conservative party. They have been a little nervous about the social expenditure. They share the feelings of the Chancellor of the Exchequer. They are a little alarmed at the Labour party. May I say to them, if they will allow me to encourage them, that the Labour party are much less costly in this House than they were on the hustings? The hon. Member and his right hon. colleagues have got to find £19,000,000 in this current financial year because of the legislation they have passed, and they have to find it at a time when their revenue is down by £120,000,000. That is a very serious problem for them to solve. There are two sides to it. In the first place, was the expenditure worth while? If you take the net expenditure from the Exchequer, my view is that it was worth while.

I have very grave doubts when one is talking about the distribution of these funds of the wisdom of the method which has been adopted by the Government for distributing unemployed benefit amongst children. I have very grave doubts about that; but I have no doubt whatever about the necessity, the right, which lies behind the distribution of unemployed benefit among adults, and particularly the increase in the amount given to the dependants. It is no use telling us that that money is going to be used in unwise spending. It will be in some cases. Some people will probably drink the whole lot, but who on earth dare say they are typical of the working class? There are some who will fritter it away on silly embellishments, but there are very few of us who are not inclined to do that at one time or another; if we do not do it for ourselves, we do it for our families. Do not let us be the first to cast a stone. The truth is that on the whole the money that is spent on such social services as have been adopted by the House this. Autumn is well spent national money. There I agree with the Movers of the Amendment. I could not take the extreme view that money spent on social services is all a burden cast upon industry, from which there is no return.

Le me come to the actual problem which the Treasury has to face. It is no use discussing this thing with extracts from the Colwyn Committee's Report—that will bring no comfort to the Chancellor of the Exchequer. It is no use giving him two or three selected paragraphs from the Report which was indited by Sir Arthur Balfour. He will get no money out of that. The Chancellor has to find a very large amount of money. What is the position? His floating Debt is gigantic. It shows an increase already of £39,000,000 over the corresponding figure of 1928. Then the flotation of the recent Conversion Loan is not going to give him a very great deal of relief. His floating Debt has got to be dealt with. When we are talking about the burden on industry I am sure the hon. Gentleman will agree that a very large floating Debt is a bad thing for industry. It is a very expensive way of borrowing, especially when the Bank Rate goes up to 6½ per cent. It is almost entirely due to that that the cost of interest alone has risen enormously during the last few months. He has had to pay a very heavy price for borrowing with his Treasury Bills. His floating Debt has become a very costly engine of finance.

What is the first duty the right hon. Gentleman ought to perform? I do not apologise for mentioning the technicalities of finance in the House, because it is our business to deal with it, and unless the Treasury gets support I do not think they will be able to carry through the necessary steps in putting finance and industry on a sound basis. I ask, what are the first steps to take? He ought to reduce the floating Debt. There are two ways of doing it. One is by funding it. When an attempt was made to do that with Conversion Loan it was done on an expensive basis. I hope he will forgive me for saying that the £150,000 which was distributed by way of commission was an unnecessary expenditure. The Conversion Loan would have been just as popular without the distribution of that commission.

The second point I make is that it appears to be an admission that there is not to be a drop in the rate of interest below 5 per cent. in the next 14 or 15 years. The Loan is to last for that period on that basis. It may be that the right hon. Gentleman had hopes of a lower rate of interest, but if he had such hopes why should he have paid 5 per cent.? He has undertaken to pay 5 per cent. over that long period, and it will require a good deal of justification—for him to get up at that Box and declare that the Government are not binding us down for a period of 14 years for a loan of unlimited dimensions—and he may have to do it over and over again on the basis of 5 per cent.—when many of us were hoping that by frugality, by economising on the national services, by the cutting down of expenditure on arma- ments and by making the expenditure keep well down below the level of the revenue, which is far better than raising the revenue far above the level of the expenditure, he would have been able to effect a reduction of Debt in large blocks.

The hon. Gentleman has before him the task of getting the Floating Debt down. It is a very grave disadvantage to industry. It is a floating burden on the State and it is altogether bad finance. One of the reasons why we criticised the late Chancellor of the Exchequer was that in our opinion he paid too little attention to the real reduction of Debt. I had better hopes of his successor, and I shall be very sorry to hear, either tonight or at any time, that the Government were not far-seeing and acting on the assumption that they would so be able to redeem Debt as to improve the national credit. During the last six months the national credit has not improved. It is a very serious matter for all of us, and particularly for those engaged in industry, so delicate is their adjustment to any change in the financial atmosphere which may make them prosperous or depressed according to the time and the volume of its influence.

I would say only two other things, in conclusion. One is that when we are thinking of burdens on industry we must remember that of all the peoples in the world we are more dependent on export trade than any other. The export trade may employ only one quarter of our population, but the truth is that the whole of our population are dependent upon it. The only way in which we can get our enormous supplies of food from abroad, and the great amounts of our raw materials, is by our export trade. We cannot pay for those things in any other way. Even my right hon. Friend the late President of the Board of Trade will agree with me, although we have often crossed swords about imports and exports, that the only possible way in which we can pay for the food and raw materials that come into this country is by an abundant export trade. The Lord Privy Seal was not always correct in his economics, but he was quite correct when he stated that the only solution of the unemployment problem was the extension of our foreign trade. If at the present time we were experiencing the export trade of 1913 we should not see the numbers of unemployed going up week by week. Our ships would be more largely employed, our shipyards would be full of orders, and we should not be suffering from the depression in trade which now prevails in Lancashire and in Yorkshire.

When we are discussing the burdens of industry we must not overlook the fact that every particle of taxation on the machinery of industry is to the detriment of our export trade. A very narrow margin of competition in our coal export trade means that our miners are idle. It may be that one halfpenny per yard in the price of cloth may make all the difference between getting and losing orders, and, if in these small items the cost of production is increased as a result of taxation then it is a burden on industry. The easiest way to bring about a recovery is to reduce the number of those who are supported by increasing the number of those who support. The only way for us to provide more employment is to increase our export trade in the markets of the world, because it is upon that trade that we have to depend largely for the employment of our people.

The Motion sets forth that it is the burdens on industry which exclude us from our foreign markets, and I agree with that contention. I also agree that we may benefit by the distribution of money through the social services. Under these circumstances, I am inclined to support both proposals. I hope the Chancellor of the Exchequer will take a sound view of this question and not allow class considerations to creep in; and, if he does that, I am sure that he will receive the support of all classes of the community. I hope the Chancellor of the Exchequer will not allow what has been put forward by the hon. Member for Oldham (Mr. Lang) to interfere with his financial judgment, because, I am sure that in that he will have the country behind him.

When we have before us a Motion which raises many of the problems which press upon us at the present time, a new Member may very well feel diffident in addressing the House, especially when another speaker has just made a maiden speech and addressed the House with great brilliancy. I cannot claim to be an ex- pert on the subject of economics, and I must ask the House to accord to me that kind indulgence which they are always ready to accord to one who addresses the House for the first time. There can be only one rule for a maiden speech, and that is that it should be very brief, and I hope I shall not transgress in that respect.

I desire to address myself to one small portion of this large subject. In this House, we have listened, during the last three or four weeks, to a succession of speeches made by hon. Members opposite, in which they affect to be sure of the callousness of the party to which I belong towards the problem of unemployment. They accuse us of battening on the miseries of the unemployed and not caring how much they suffer so long as we ourselves do not go short of the luxuries to which we have been accustomed. I can assure hon. Members that that is absolutely untrue, because we have a good deal of sympathy with the unemployed, and quite as much as hon. Members opposite have themselves. If hon. Members are shocked by what they call our callousness we, on our part, are a little shocked by a certain amount of levity on the part of the Government with regard to national finance.

A great deal of comment has been made about the state of employment in the country. It is said that trade is not improving and that the measures which have been taken are not sufficient to meet the difficulties of the situation. Then we hear, in reply to those arguments, that more money is going to be spent. As far as one can see, there seems to be no realisation on the part of hon. Members opposite that there is any connection between unemployment and the burdens on industry. All these commitments have to be paid for by taxation, and that taxation must increase the evils which we all deplore. Hon. Members opposite do not seem to realise that there is any connection between employment and taxation.

A reference has been made to a remark made by the Minister of Health on this point, and it has been so often quoted throughout the country that I am almost ashamed to mention it again. I would like to say a word or two about it, because it shows the attitude which is taken up by a certain section of hon. Members opposite, who seem to regard the State as a kind of Father Christmas, who does not come once a year, but comes every day with a large sack distributing all that they require. There is another and very different school represented by the hon. Member for West Wolverhampton (Mr. W. J. Brown). He admits that taxation causes a disturbance of capital, but he think that that is a very good thing. The hon. Member for West Wolverhampton said that the only result of this heavy burden on taxation would be to transfer wealth and capital from the luxury trades to the basic trades of the country. I do not suppose that many hon. Members on this side of the House will quarrel with that argument. Our contention is that this heavy burden of expenditure is not merely going to hurt the luxury trades, but it is going to hurt the basic trades, too. I feel a certain amount of diffidence about stating this. The hon. Lady who spoke before me rather brandished the Colwyn Committee over our heads. I got the impression from her that it did not much matter what we said as the Colwyn Committee had expressed their opinion, and that was all there was to be said about it. In spite of that, hon. Members on this side will prefer to stick to their own opinion, however bad she may think it.

We believe that a heavy burden of taxation really does touch every industry in this country, and that it is quite impossible to say that we will tax the rich and not hurt the poor. In a state of society as complicated and elaborate as ours, it is quite impossible when you levy taxation to say who eventually is going to pay it and who eventually is going to suffer by it. In putting forward that point of view, I am emboldened by having the support of a great statesman, who is not a member of my own party, but has the admiration and affection of all parties alike, Lord Grey of Falloden. Speaking the other day, Lord Grey used these words:

I mention this example, because I have a particular case in mind which came to my knowledge in connection with my own constituency. There is a very large store of this type which the other day added a. large stone-faced wing. That wing gave employment to a very large number of quarrymen and stoneworkers in the Island of Portland. It would be quite untrue to say that those stoneworkers would otherwise have been employed, as the hon. Member for West Wolverhampton has suggested, in building cottages or factories. If I may say so with pardonable local pride, Portland stone may be the best in the world and is certainly the most beautiful in the world, but it is very expensive and is therefore not suitable for any work except ornamental work. If these beautiful buildings were not put up, those men would be unemployed. Nor were they the only men employed on that wing. There were the wood workers and carpenters, the men who felled the trees from which the wood was made, the transport workers who brought the materials, the steel workers who made the girders, the iron miners and the smelters who made the ore into steel, and the textile workers to whom that building gave employment. There was not a single one of the basic industries of the country which would not have suffered if that wing had not been built and that expansion of business had not taken place.

I do not mean to argue that there should be no taxation of any kind. There obviously must be taxation, but at the same time it would be quite untrue to say that taxation is a good thing. Taxation is a very bad thing, and the object of the Government must be to reduce taxation as far as possible in every direction. As we understand it, the aim of government is not to diminish but to increase the total capital of the country. That will help the working-class much more than Members opposite imagine. Let me take a simple argument. In 1913, Professor Bowley, the statistician, argued that three-quarters of the national income went to people with less than £500 a year in this country. Now the national income is only the yield on the national capital, and, if you increase the national capital, you will increase the yield upon it, and consequently increase the three-quarter share which goes to the poorer section of the community. Everybody will then share in the general prosperity.

That may seem a somewhat doctrinaire idea, but it is not really, because we have before us the concrete example of America. There is the richest country in the world, a country with the largest accumulation of capital any country has ever seen, with a large number of rich men, so rich that our millionaires seem to be paupers by the side of them. You can extract from the argument from hon. Members opposite the proposition that the reason the poor are so poor here is that the rich are so rich. If that were the case, then in America the poor would be destitute, but in America the opposite is the case. Instead of being destitute their standard of living is much higher. One would have thought that the result of that would have been to have given hon. Members opposite a slight twinge of doubt and to have made them feel not quite so certain that their ideas are as true as they imagine. Not a bit of it. They seem to be quite unconvinced.

I heard in the House the other day a speech by the hon. Member for Bridgeton (Mr. Maxton) which he delivered with all that single-minded sincerity and charm which wins the sympathy even of those who most disagree with him. In the course of his remarks he entreated the Government not to try to shore up the tottering structure of capitalism, and he went on to say that the political representatives of capitalism had tried every device to solve the problem and had failed. We, on the other hand, might quite clearly say that the hon. Member for Bridgeton and his friends have tried every device in their power—ca' canny, a general strike, strikes of all descriptions—in order to smash capitalism, and they have failed. I must honestly say that, when I heard the hon. Member speaking, it seemed a little like a man who, having been employed to manage a great, delicate machine which he did not very much like, took a sledgehammer and hit it long and hard, and then went back to his employer and said, "I am afraid this machine is showing great signs of wear and tear, and perhaps it ought to be replaced by another; it is not fit for this work."

The present industrial system is the most delicate instrument in the world, but, though it is very severely battered, it does still function, it does give to the vast majority of the people of this country a higher standard of life than there is in any other country in Europe, than there is in any other country in the world except America, and it brings great benefits which are enjoyed by no other country. I do not think we can expect, on these matters, a lightning conversion of hon. Gentlemen opposite; I am afraid they are steeped too deeply in error for that; but I think we might expect just this from them, that they will face facts, that when, as winter comes on, the unemployment figures go up in proportion as they pour out million after million in payment for different schemes of relief, they will just look with open eyes and see if there is not something in what we on our side say.

The prosperity of this country is entirely dependent upon the accumulation of capital. I am afraid that that sounds a very provocative remark, but I do not mean an accumulation of capital in any particular hands, but the general aggregate accumulation in this country. That accumulation of capital is absolutely impossible without rigid economy, so far as it can be attained, in local and in national affairs. Therefore, rigid economy is absolutely essential to the prosperity of the country. That is the creed in which I think we on this side, and in which I certainly believe, and for that reason I am very glad to support the Motion.

I rise to deal only with one or two points that have been made in the speeches of hon. Gentlemen on the opposite benches, but, before doing so, may I, as a very new Member, congratulate the Noble Lord who spoke last on performing a very difficult task in connection with a very complex subject in a very lucid and courageous way; and may I also say that I trust that, when he criticises the proposals that come from these benches, and from the Front Bench particularly, in the light of the discussion that we have had this evening, he will be as courageous and at the same time as courteous towards us as he has been this evening.

We have been accused this evening of deceiving the electors, and especially the working-class electors, by telling them that the taxation that we may propose in order to meet social services will be met by some fund provided by the idle rich, and that they, the working people, themselves will not have to pay the cost of that taxation for these social services. May I be allowed to tell hon. Members on the other side that no Member of the House on this side has ever been guilty of such an extraordinary economic heresy? We never suggested for a moment that any wealth in the country, whether it be capital or whether it be wealth used in expenditure, can be created in any other way than by the application of labour to natural resources. We say that whatever income is derived by the nation, for whatever purpose, must come ultimately out of the pockets of the people who work by hand or brain. If, perhaps, in the process, we may stop a certain amount of money which might otherwise have gone to the people whom we, in our more expansive moments, call "the idle rich," then we look upon that in very much the same manner as a very distinguished statesman who came from Birmingham once used to look upon certain contributions that he expected from certain other portions of the community, when he described those contributions as "ransom."

We not only declare that this taxation about which we have had a discussion this evening is paid by the working people, but we say that it is absolutely necessary for the efficient working of our social system. If you look back during the 19th century, and visualise, as some of us have had to visualise, the kind of income that was made by the philosophy of the 19th century which has been so ably expounded on the other side of the House, it will be easily understood why these social services have had to be called into being and have had to be paid for. Take social services in housing. Nobody can pretend, who knows anything about the housing conditions in our great industrial towns, and in the Metropolis itself, that, if we as a party had not called again and again for public expenditure on housing, any betterment would have taken place.

I would point out that a most distinguished statesman belonging to the same party as the hon. Gentleman who has just exclaimed "Nonsense!" was one of the first to state that it was absolutely necessary for the community to take over the question of the housing the working classes, because private enterprise had failed completely. One of the things that I have heard from the platforms of gentlemen standing for the party opposite, one of the claims that they have made, is that they have used the capital of the community in order to promote the better housing of the working people. We are not, I venture to suggest, dealing with a set of circumstances for which we ourselves are responsible. We have inherited, and we have to face a heritage which is in some ways, I admit, appalling. We have this great unemployed problem, created primarily by the after-effects of the War, for which this party was not responsible. We have to meet these problems arising from this aftermath of the War. No solution of these problems other than that which we are attempting has been put forward by the other side. Generalities have been spoken about economy which, I presume, means saving on the social services, but when the other side was in office they found, and it was to their credit that they found, that they could not cut down the social services. In their own despite they had to increase them. They did not increase them enough, in our opinion, but they found they could not exercise the economy or the saving which they have been advocating this evening, and which they want us to adopt.

We have also heard in this Debate, which has covered a large amount of ground, that the real reason why we have so much unemployment, around which the Debate has gone to a considerable extent, is the condition of our basic industries, and it has been argued on the other side that that is due to heavy taxation. There is really nothing in that argument at all, because the facts came out very clearly in a discussion that we had only a few days ago. It is quite clear that there is nothing peculiar to us in the position in which our coal industry finds itself. The coal industry in America is in a bad way and in Germany it is not particularly flourishing. In Poland, from the point of view of the workers, it is not in a very favourable situation. The reason is the competition of new forms of fuel and the swamping of markets by the over-production of coal, and the only way the industry can be put on a sound level is by some form of international action, which the Government will attempt to carry out in connection with the League of Nations and the International Labour organisation. With regard to other basic industries we had a very interesting discussion the other night upon that very valuable, perhaps at one time the most valuable industry in England, the cotton industry, and it was pointed out that one of the reasons why that industry was in the situation in which it finds itself is the extraordinary madness that swept over Lancashire after the War.

That brings me to this point. We have been reading in the newspapers very interesting and important accounts of the revival of industry and trade in Germany, and comparisons between that revival and the position of this country. I have no time to give details, but probably one of the reasons why Germany is recovering comparatively rapidly from the effects of the War is the fact that she lost it instead of winning it. After the War we thought we were going to have an easy time. We thought Germany was going to pay for the War and we were not going to pay anything at all towards it. We were led to believe at a celebrated election that that was going to be the case, and I am afraid that feeling ran right throughout the community, from the captains of industry down to some sections of the working people, who were led astray by the promises then made. But Germany was not misled. Before the War I had a considerable knowledge of that very interesting country and one of my friends, a prominent member of the Social Democratic party, whom I met at Copenhagen, said to me, "I have no fear for the future of my country. My countrymen are always at their best when they have been beaten and humiliated." What has happened in Germany is that the shock of that defeat, the effect of the blow to their arrogance and pride, has been turned to good purpose. If you go to Germany now and go through the industries and see the re-organisation which has taken place, you will realise that it is not low taxation which has rehabilitated and revived German trade, industry and commerce. It is the turning into trade, industry and commerce of the brains that we ought to have been turning into it directly the War was over. Our party is quite alive to that side of this problem, and we are not going to content ourselves with simply providing by taxation, insufficient allowances for unemployed men and women and their children. I am certain, from what I know of my leaders, that we are going to put what brains we may possess, however lightly they may be thought of by the other side, into the task of making our country as prosperous and as happy for the working people, on whose behalf we speak as the leaders of industry, trade and commerce in Germany have made their country.

I think the House will agree that we are all indebted to my two hon. Friends for initiating this Debate, for the general interest of the Debate, for the excellence of their own speeches, and also of the maiden speeches which have been called for, either in opposition or in support of the Motion. I rather regret the absence of the Chancellor of the Exchequer. It would, perhaps, be expected by the country that in the first financial Debate we have had after the Recess he should have been here to make some statement as to the position in which the country finds itself. [An HON. MEMBER: "Where is your Chancellor?"] I do not think the hon. Member need interrupt. We are not in office. It is a very proper request to be made and one that was very often made when we were in office. When the late Chancellor of the Exchequer happened to be out of the House for a few minutes, we were asked why he was not there. If there is a good reason why the right hon. Gentleman is not here to-night, I at once withdraw, but I think it would have been convenient to the House—I will not say more—that on a very important question, when the country is gravely anxious as to the financial position in which it finds itself, the Chancellor should have been here. We are always delighted to see the Financial Secretary, and, in the absence of the Chancellor of the Exchequer, we look with confidence to the Financial Secretary to give us an accurate account of the position.

The hon. Gentleman the Member for North Battersea (Mr. Sanders), in an interesting speech, asked us not to deal in generalities, but to concentrate on the particular. I will at once comply with that request. I would, particularly, ask the Financial Secretary to the Treasury to tell us where we stand at the present moment and where we are going? I ask him: What is the actual position at the present time? What deficit does he contemplate he will have to face at the end of this financial year? [ Interruption. ] We certainly know that there will be a deficit. [ Interruption. ] I think that when the hon. Gentleman who is interrupting has been longer in this House he will find, and he must forgive me for saying so, that the process of Debate is more conveniently conducted by speeches following each other. Undoubtedly, there will be a deficit, and we are entitled to know what that deficit is expected to be. I understand that the amount of new expenditure to which we are being committed in this year is something like—I think my right hon. Friend said £19,000,000, but I do not think it is as much as that—£8,000,000 or £9,000,000. The right hon. Gentleman is more generous in his figures than his Leader.

It is even worse than I thought and worse than is generally reported outside. In addition to that, there must unquestionably be a considerable falling off in revenue. The results of the slump will have taken effect, and I shall be surprised if the hon. Gentleman does not tell us that he will expect very considerably less revenue than the Treasury expected a few months ago; certainly I should say in Death Duties—someone said rather ironically that this would be a wonderful moment to die if you are a very rich man, because your fortune would have shrunk considerably—and also in Stamp Duties. We are entitled to know what is the deficit which will be encountered at the end of this financial year. We are certainly also entitled to ask what are the liabilities next year which are already in sight, and which we know will have to be met in the Budget? There, I understand, we are already committed to new expenditure of at least £20,000,000 by Measures already introduced into this House. As to possible further commitments, I shall have a word to say later. Presumably, there will be some fresh shrinkage in ordinary revenue, and I presume, if there is a heavy deficit this year, a great financial purist like the right hon. Gentleman would wish to make some provision to meet that in the Sinking Fund next year.

10.0 p.m.

I would ask the hon. Gentleman to give the country the information to which we are clearly entitled at this time. What is the financial deficit which we are likely to have to face at the end of this year, and what are the commitments which already we know we have to face in the coming financial year? It really would not be reasonable for the hon. Gentleman to say, "I must not anticipate the Budget statement." Events are already anticipating the Budget statement for him. It is not fair to this House to bring in Bill after Bill piling up commitments in the way that is being done at the present time, and then when we come to a financial Debate of this kind, not to give us an accurate indication of our liabilities. I would further ask, when that statement is made, is it a statement of our final commitments or is it merely the prelude to much more expenditure? The right hon. Gentleman the Chancellor of the Exchequer has always said in this House that any prudent financier will not look to the Budget of one year but will look ahead to a series of years. I am sure the hon. Gentleman would support that sound financial view. What is it to which we have to look forward?

What are the future commitments? We have had nothing for housing yet. We have nothing for education. There are the major schemes of pensions to which the Minister of Health has referred. We have been told by another Minister that there are to be large and complete unemployment insurance schemes, and presumably the Lord Privy Seal will, at any rate, before the end of the next financial year, have produced some scheme of work, the Bill for which the right hon. Gentleman the Chancellor of the Exchequer will be asked to foot. Therefore, I ask—and it is a perfectly reasonable question, and a question which has been put in the country—is this £40,000,000 or whatever the figure may be, which we know we have to contemplate of extra expenditure in the coming Budget, a figure which is set as the limit by the Chancellor of the Exchequer, or is it merely an instalment? There have been occasions in which this country has tried not very successfully to buy off its enemies by payments. The Chancellor of the Exchequer finds himself in the unique position of trying to buy off his friends by payments, and as cheaply as possible. I am bound to say that he seems even less successful in doing a deal, if I may so put it, than those who have gone before him, for he is still attacked by the Picts and Scots on every possible occasion.

I would put this question to the hon. Gentleman. Does he, or does he not, agree that it is at this time vital that you should have economy and that you should have certainty. Economy and certainty are vital to the national revenue, are vital to any tax revenue that he hopes to raise and are absolutely vital to trade. If the Government intend to raise anything like £40,000,000, and it seems that the prospect of raising £40,000,000 is the prelude rather than the final commitment, it must be perfectly plain that they have to contemplate direct taxation on a higher scale, which will cover a very wide range. I do not suppose there is anyone, certainly not the Financial Secretary to the Treasury, who has carefully considered the possible returns to be got from one or other source of taxation, no one acquainted with the facts, who would say that we can get this £40,000,000, much less a larger sum, out of Super-tax. It is well within the knowledge of the Financial Secretary, and within the knowledge of all who have studied the financial returns of the last few years, that the return from Super-tax has been falling. Super-tax is the easiest kind of tax to avoid. The Financial Secretary will agree with me in that statement. The higher you put the Super-tax, the more sure you will be that you are not going to catch the people you want to get by the higher Super-tax. The man who can easily realise his wealth, who has his wealth at call and can put it outside the country, the man who has not a fixed stake in the country, the one man who, if it is reasonable to put on heavy taxation, it is reasonable to tax, is the one man that you cannot be sure of hitting by high Super-tax. He is the one man you may be perfectly certain will find it easiest to avoid that taxation, and you cannot catch him.

On the other hand, the one man whom you will hit by the higher Super-tax is the man who has a stake in this country, whether in industry or in land, the man who is using his wealth in order to promote the industry of this country, and to promote employment. Not only will you in that way hit the wrong people, but, I think the Financial Secretary will admit, it is an elementary canon of finance that where you find the returns from a particular tax falling it is the worst thing that you can do from the tax-gatherer's point of view to increase that particular tax, because the law of diminishing returns will come into play. Therefore, the kind of statement that we have heard from hon. Members opposite, in recent Debates, that £40,000,000 and any other amount more can quite easily be found by putting Super-tax on to a few rich men, falls to the ground at once. It is not a question of raising the necessary revenue out of Super-tax alone, or primarily out of Super-tax. It is plain that this country will be faced with an increase in Income Tax, and an crease which will cover all Income Tax payers. While it is certainly true that the higher you put the Super-tax the more you tend to drive capital out of the country—[HON. MEMBERS: "Oh!"] Of course, you do. There can be no question about that.

I will ask the Financial Secretary, with the knowledge that he has at the Treasury, whether it is not the experience of the Treasury that when you put Super-tax high there is a very great tendency for those who can do so to avoid it by putting their money outside the country. If that be true of the Super-tax payer, it is true of Income Tax as well. Above all, when you leave the Income Tax payer in a great uncertainty as to whether one addition to the Income Tax is going to be the last, and when you hear from speeches of responsible Ministers views which disclose a vista of ever-increasing direct taxation, you will find that not only the Super-tax payer will put his money outside this country but there will be a general tendency for all classes of direct tax payers to put outside this country such parts of their wealth and savings as they can. So you inevitably come to a vicious circle, where the more you tax the more you drive wealth away and the less are the results which you get from your taxation. I do not think there is any economist who will deny that that is true. I am certain that the Financial Secretary will not deny it; although he may differ as to its rapidity, I am sure that he will not deny as a general proposition that what I have said is true. If it be true are you not then also in grave danger of reducing your national income.

If you drive investments abroad, and foreign investments, invisible exports, are no longer received in this country, you increase your adverse trade balance. And when you have a Government Which, rightly or wrongly—I do not propose to argue fiscal matters to-night—which is definitely committed to the most extreme form of Free Trade, a Government which stated yesterday, through the mouth of the President of the Board of Trade, that no matter how serious dumping might be in this country in no circumstances would they contemplate a tariff; when you have a Government which takes that extreme position, then it is all the more important that that Government should do all it can to increase the invisible exports and to improve the trade balance in order to pay for the imports into this country. So much for the effect upon the tax revenue and the national revenue. What about the effect upon industry?

I am not going to indulge in quotations from the Balfour Report or the Colwyn Report. It is quite enough for my purpose to say that both those reports recognise and emphasise a fact which is common knowledge to everybody who has ever engaged in business, that high direct taxation must have a damaging effect upon industry, because it reduces the amount of capital which is available, and damps down initiative. That is stated over and over again in both reports, and it must be common sense. As is pointed out, I think in the Colwyn Report, it has a peculiarly damaging effect upon what is called speculative industry. By speculative industry the Colwyn Committee do not mean things like greyhound racing. They mean ventures in industry. It is just that spirit of venture in industry, the willingness to make experiments, the willingness to launch out into new markets and to take risks, which is most needed to-day, and it is just that kind of venture for which if you go in for high taxation there will not be money available. [An HON. MEMBER: "Hatry!"] How absurd it is to say Hatry. It is just as absurd as for me to say that because some trade union official has been sent to prison for theft of trade union funds that it was typical of trade union organisation. I hope Mr. Hatry is not going to be set up in this House as typical of English finance or English business.

We have to consider a serious proposition, the case of industry, in which we are all partners. If it goes down it will carry everyone of us with it. It is perfectly clear that industry to-day needs ample capital and security. If the present Government refuse any direct help to industry then it is all the more important that they should avoid penalising industry. It is in a very difficult position at the moment. It has passed through a great slump and it will have to face keener competition in the markets of the world. It is a very remarkable contrast the way in which two countries are facing this difficulty. In the United States of America a reduction of taxation in order to stimulate industry; in this country the piling up of new taxation. The only thing that is uncertain is the amount that is going to be put on industry. If this Government are going to refuse to help industry; if no question of duties is to be considered; if such slight help as various industries enjoy to-day is to be a matter of uncertainty, to be taken from them at a moment's notice by the Chancellor of the Exchequer, however much he needs revenue and however much they need assistance; if the policy of Imperial Preference is to be jeopardised, then I say that it is the bounden duty of this Government more than any other Government to give industry some relief from these burdens and some certainty.

However much it may be argued that money spent on social services creates purchasing power—I am not going to argue whether people use their money badly or well, because there is not much difference between any of us—there is a most profound fallacy in the suggestion that you can increase purchasing power by taxation on industry. The only way you can do that is by increasing the aggregate wealth of the country. If you were using the national credit or the national taxes to make industry more efficient there might be something to be said for it. But you are not doing that. Not one of the schemes which have been produced, not one of the proposals which are going to add £40,000,000 to the burdens of industry, is going to make industry more efficient. On the contrary, you are going to add to the burdens upon industry, and this I am sure is perfectly true without any qualifications, that the only real way to increase the purchasing power of this country permanently is to make industry better able to compete, more prosperous, and able to enjoy a larger share of the trade of the world and, therefore, give more employment to our people. In that way our people in earning and spending their wages would add to the wealth of the country and increase our purchasing power. If that is true, then it is absolutely vital that industry should be able to command new capital. Our aim should be cheaper production.

If you add to the burden of industry—I do not think it will be denied that these taxes are going to add to the burden of industry—you handicap industry, you make production more costly. What is the result? Industry is less able to compete. Again, so long as you maintain your extreme Free Trade doctrine, the only result of taxing industry in order to provide doles is that the people who have that money to spend will not spend it on the products of this country, which you have made dearer by the charges that you have put on industry, but will spend it on imported products which come from industries in other countries that are better able to compete with us because, while you have added to the burdens of industry, wiser Governments in those other countries have reduced the burdens on industry.

The hon. Gentleman generally interrupts to some purpose, but he does not appear to have done so on this occasion. The result of this taxation inevitably will be that you will have as vicious a circle in industry as you have in taxation and in national revenue. You pile up the burden on industry and it becomes less able to compete, less able to sell in the market, which is a free market here, and less able to sell in the markets of the world. And you will get more unemployment. In fact you are getting it now. You will then say, "Well, we have to give more maintenance"; and as a result of that there will be more taxation, and at the end of a year or two you will find how far this vicious circle has revolved. All this at the moment when the Lord Privy Seal, in dealing with unemployment, is saying that the only possible way of curing unemployment is to improve trade. The Government really have a great opportunity of doing something to help the industry upon which this country depends and on the success or failure of which we all stand or fall. There can be no basis for social reform in this country except the prosperity of the industry upon which the country lives. The one thing which industry needs to-day from this Government is certainty as to its position. I beg the Government, at a time when industry is very unsettled, to give it some message of encouragement and some confidence in the difficult times that lie ahead.

I am in full agreement with the statement of the right hon. Gentleman who has just spoken, that we have had a most interesting Debate. The level and the matter of the speeches on all sides, from Members of long standing and from those who have made their maiden speeches, have been such that the House can feel proud. I certainly agree in thanking the Mover of the Motion for the interesting Debate to which it has given rise. It has been, not only an interesting, but a somewhat discursive Debate. I am not complaining of that, but when I have been appealed to by nearly all the Members who have spoken—all taking points of a different character—to reply to each in detail, I find myself rather embarrassed by the situation, particularly as I have no wish to occupy more than a reasonable amount of time. I think that a Private Members' Debate should be largely conducted by Private Members.

The hon. Baronet the Member for Grantham (Sir V. Warrender) who opened the Debate, firing over the heads of the Government, of which he was an honoured Member only a little while ago, attempted to attack the present Government for its policy of spending money. I shall deal more particularly later on with the subject-matter of his allegations against the Government. The right hon. Gentleman the Member for St. Ives (Mr. Runciman) asked me to deliver an economic discourse upon some of the fundamental issues involved in taxation—though I am bound to say that his speech was more strictly relevant to the subject of the Debate than many of the other speeches delivered. Finally, the right hon. Gentleman the Member for Hendon (Sir P. Cunliffe-Lister) asked me to depart so far from the usual practice as to give a complete announcement of the policy of His Majesty's Government in the next Budget, a statement of the commitments which His Majesty's Government has entered into, and an estimate of the probability of a surplus or a deficit at the end of the financial year—and, not only that, but he also asked me for a defence of the Free Trade policy.

I cannot possibly cover all that ground, and I can only deal shortly with the points to which my attention has been directed. I take the right hon. Gentleman the Member for Hendon first. He asked me to reassess the prospects of the financial year; to say whether revenue was coming in as we expected and whether, quite apart from the commitments of the Government, there was any reason to anticipate any great change. I must make it perfectly clear that, however willing I might be, I am unable, to accede to that request. It is quite impossible in the middle of the financial year to discuss the probabilities of any particular estimates of revenue or expenditure being realised, and all one can do and all that has ever been done is to indicate if there has been any striking change such as arose when the coal strike took place or when the subsidy was given to the coal trade by the late Government before the coal strike took place. [HON. MEMBERS: "Coal stoppage!"] When any such unusual event occurs, the Opposition is perfectly entitled to ask any representative of the Government who speaks on such matters to say what effect that particular event will have upon the national finances. As far as that is concerned, I am willing to comply with the right hon. Gentleman's request.

I am perfectly willing to tell him what effect upon the Budget prospects have been produced by the particular changes the Government have introduced by their policy. There was some discussion between the two right hon. Gentlemen, one below and the other above the gangway opposite, as to exactly what were the additional commitments, and the figure of £19,000,000 was spoken of. That, of course, is the commitment for the next financial year owing to the policy of the Government. The commitment for this year is £8,250,000, and if you add those together, you get £27,250,000. But I want the House to be perfectly clear that that excludes two factors which may be of some importance, but it is impossible yet to judge how much importance they may have. The first is the expenditure on the Road Fund. We have expressed our desire to accelerate road development as much as possible, partly because, with the growing motor industry, we regard it as of great importance to the trade of this country, and partly because it is one that is very necessary— and I am sure hon. Members below the Gangway will not disagree with me in this—in helping to solve the unemployment problem.

Further than that, there are the commitments which have been entered into in the Department presided over by the Lord Privy Seal. There the House is already in possession of the general lines of policy. They know roughly the capital expenditure which has up to the present been sanctioned, but it is not possible at this date to pre-judge exactly how much of that will fall in the current year and how much in the next financial year, either in capital or in interest which will be expended on it.

There was one question in this connection which was put by the right hon. Gentleman opposite. He said he had no indication of the cost of the housing policy of the Government. Of course, until the housing policy of the Government is developed in its entirety, no one can possibly express an opinion as to how much it will involve, but so far as that part of the problem is concerned which is comprised in the contributions under the Wheatley Act, the expected increase for the current year is £13,000, and the expected increase for the next financial year is £100,000, but, of course, those items are included in the aggregate totals of £8,250,000 and approximately £19,000,000 which I gave to the House a few minutes ago. I really must make it perfectly clear that beyond that I am not called upon to express an estimate of the financial position in which this country will find itself at the end of March, nor can I possibly enter into a discussion of the merits of tariff reform or of the particular kind of tariffs that the particular section of the party opposite to which the right hon. Gentleman belongs believes in. Our policy is quite well known. It was stated with admirable lucidity by my right hon. Friend, and I do not think anyone in this House really expects me to go beyond that.

Let me come to the interesting speech of the right hon. Member for St. Ives (Mr. Runciman), who was good enough to say some very nice things about me. He was kind enough to say I was a distinguished economist, and I recognise in him a very distinguished economist, and I am quite sure that if we differ anywhere, it must be more upon terminology than upon reality; but in the earlier part of his speech he appeared to me to be looking at only one side and not at both sides of the problem. Everyone agrees that if you take money out of the pockets of certain people, and you see only that transaction, that will to a greater or less extent injure the trade and prosperity of the country, and it will reduce the amount available for savings and the amount available for spending. It will reduce it by exactly the amount that is taken away, and no one can possibly deny that.

The real point is that you have to look at both sides, and, when you have got the money, what are you going to do with it? The question is whether, after the State has digested the money and disbursed it again, the use to which it will be put will be better or worse than if it had been left in the pockets of the original taxpayers. When you look at it from both sides, as the right hon. Gentleman did a little later in his speech—and that is why I do not think he substantially disagrees with me—you come to what is practically the wording of the Amendment, that the money may be used better after it has passed through the digestion of the State or it may be used worse. It may be used for saving or for expenditure; saving may be desirable, or expenditure may be desirable. In the Amendment, with which I am in full sympathy, it says that you cannot say in advance that all taxation—which is what the Motion does—is injurious to industry. What you can say is that, whether any particular taxation and the spending of the revenue derived for it is advantageous or disadvantageous, will depend in the first place on how you raise the money, and in the second place upon how you spend it. That seems to me common-sense, whereas the dictum of the Motion assumes a result which does not by any means follow.

The hon. Gentleman leaves out of account altogether the very large cost of the Government in collecting the money and redistributing it.

The right hon. Gentleman says that the cost of the Government in collecting the money is very large. Of course, "very large" is, as the right hon. Gentleman the Member for St. Ives said about something else, rather a vague term, but I do not think that in any sense the cost of collecting the money is very large; it would be between 1 and 2 per cent., and I do not think that that is a very large figure. [An HON. MEMBER: "What is the cost of administering?"] I cannot answer both questions at once. There is also the cost of administering to be taken into account. [ Laughter. ] There is nothing very funny about that; it is perfectly obvious. The cost of administration is, of course, an important item, but it is often very much exaggerated. The nomenclature used with regard to the Civil Service has led a large number of people to get an entirely erroneous idea of the cost of the actual administration of the Civil Service. I am rather glad that no one has put that forward in the Debate to-night, but outside, in the columns of the yellow Press, we are often told that the Civil Service costs hundreds of millions of pounds, and that, if only we could get rid of all the unnecessary people, we could bring the expenditure down by immense sums. What are the actual facts? Technically, of course, the Post Office employés are civil servants, but I do not think that anyone here grudges the expenditure of money on such a national service as the Post Office, particularly as it yields a substantial revenue to the State. Again, I do not think anyone would really take the term "the Civil Service" to include the industrial workers in the Army, the Navy, the Air Force, and elsewhere. The cost of the tax-collecting Departments I have already referred to. Putting these out of account and also the offices of the defence Departments the whole cost of the civil Departments is £17,500,000; a very considerable sum, of course, but, taking into account the valuable and important work which they have to do, a by no means excessive part of the expenditure of the State. Our civil servants are a devoted, able and faithful body of people who carry on their work with great success, and the attacks which have been made on the Civil Service in the past—they were not made to-night—were thoroughly unworthy of the traditions of this country. I think that meets, as far as I can without trespassing upon the time of other Members, the points raised by my right hon. Friend the Member for St. Ives.

I come now to the points raised by the Mover and the Seconder of the Motion. There was a good deal that was of interest in what they said, but behind it there was a kind of covert attack upon the policy of His Majesty's Government. The Noble Lord who seconded the Motion framed three questions, and I have no intention of running away from the task of answering them. He asked me whether it was my opinion that there was still a large margin of money available. The answer to that is that the limits of taxation certainly have not been reached. How far additional taxes should be imposed must depend upon the importance of the objects for which taxation is required. Then he asked me whether I regarded taxation as an end in itself. Of course not. Taxation is designed because the State requires a certain amount of money, and in the ordinary way no more than the State absolutely requires ought to be taken in taxation. In the third place, he asked me whether I considered it undesirable to leave wealth in private hands. I really do not quite know what he means by that. After all, we in this House are-realists

I do not know whether the Noble Lord holds the opinion that a realist and a Socialist are opposite things. If so, I do not think he can be very well acquainted with modern politics. We recognise what is the perfectly obvious fact, that some wealth must be in private hands and some wealth must be in national hands. How much is a matter which must be the discretion of those who have to decide the question—[ Interruption ]—and that is this House? That is what this House is here to decide. From the time when this House first existed as the Mother of Parliaments the first problem it had to decide was how much of the private wealth of this country should be left in private hands, and how much should be taken for corporate purposes.

That is the Government view. [ Interruption. ] I must not detain the House—[HON. MEMBERS: "Go on! "]—but before I sit down I must refer to the attack upon the policy of the Government. I am not complaining of it; the Debate has been conducted in a singularly friendly spirit all round; but I think it is desirable that I should say a few words in answer to the attack upon the policy of the Government which is involved in the spirit of some of the speeches in reference to this Motion. What is it that we are doing that is wrong, according to certain Members? Is it, in the first place, that we have decided to spend a good deal of money on the capital development of this country? I understood that so far as that was concerned we were carrying out not merely our policy and not merely the policy of the Liberal party, but, to a large extent, the policy desired by the main Opposition party opposite. Is it that we have dealt with the finance of unemployment insurance on a sound and not a fictitious basis? The way in which the late Chancellor of the Exchequer dealt with the unemployment problem was like the conjurer who places a pea on the table and hides it under a different thimble from that which the public expect. When the deficit was £7,500,000, the late Chancellor said that we were so prosperous that he could cut off £5,000,000 a year. At the time when the present Government came into office, the result of cutting off the Exchequer contribution was that that deficit had reached to over £35,000,000. The present Government dealt with that by a correct method of finance instead of by the peculiar method adopted by the late Chancellor of the Exchequer, and I think we have done what financial people would regard as sound policy.

It is said that we have spent additional money on unemployment benefit. I think hon. Members will agree that the great bulk of the additional benefits have been justified by the need of the cases, and I cannot imagine that we have erred in that. We decided to bring our schools up to the level of those on the Continent, and it cannot be denied that, as far as experience and knowledge go, when a child is taken away from school at the age of 14, he is not as capable as a child who has remained at school until he is 15 years of age.

Has the cost of increasing the school age been included in the figures which have been given?

If the hon. and gallant Member had exercised a little intelligence, he would have noticed that the school age is not to be increased until 1931, and therefore the main cost cannot have been included. But though there is no cost for this year—

Why does the Financial Secretary advance that as an argument against the Motion?

I have given way to the hon. and gallant Member, and I do not think he ought to interrupt any more. I was proceeding to say that a small amount of about £114,000 is allowed on this account for next year.

Is it charged against us that we have given a pension to widows of 55 years of age and upwards because they were left out of the original Act owing to the fact that their husbands died before the Act came into operation. It may be that that this is their objection. If that is their objection to the Labour policy, why did not they vote against the Bill? They did not vote against it, and they allowed it to pass through Second and Third Heading without casting their votes against it. Is the charge that the Chancellor of the Exchequer in this matter of expenditure is putting the reins on the horse's neck and allowing the House to go wherever it will in carrying additional expenditure? I do not think anyone who has sat through the last few days will think that that charge can be brought against him. He has taken a firm position, realising what is the money which can be spent, and, however much hon. Members in any part of the House may disagree with what he has done, I think they are bound to respect him for the determination that he has shown in defence of what he believes to be the right course.

So far as I am concerned, the original Motion seems to me to be a twisted and incorrect statement of the facts. The Amendment puts the case fairly and accurately without any bias as to what is or is not desirable expenditure. In these circumstances, I shall certainly vote for the Amendment, and I hope hon. Members, not only on this side, but in all parts of the House, will regard it as a sound economic expression of opinion and will support it.

People deserve the Government that they get, but the hardworking patriotic, honest people of this country do not deserve the present Government. A matter of very great national importance has been revealed to the House to-night by an hon. Member sitting opposite who told us that Germany is a happier and brighter country because she lost the War. Now we understand why our Prime Minister and the Chancellor of the Exchequer and about 50 per cent. of hon. Members opposite strove so hard from 1914 to 1918 to make England a bright and happy country by doing their best to lose the War.

Vast numbers of people are thinking very seriously at the present time of the terrible burden of taxation, both national and local, from which this country is suffering. I should be the last person to make any personal charge against hon. Members opposite, but had it not been for the pledges which they gave at the last Election, not 10 per cent. of them would be sitting there to-night. It is not their fault. They are the victims of the lying statements which were made by their supporters in the country and in the pamphlets which were published by their party, which they had never seen or read. But the fact remains that, but for those statements, hon. Members would not be here, and they would not be under the necessity of inflicting further taxation upon an already over-taxed country.

What hope has the country at the present time of relieving itself from this terrible burden of taxation? It is quite clear that we have no hope from hon. Members opposite, and we have even less hope from hon. Members below the Gangway. Hon. Members below the Gangway are shackled hand and foot to the time-worn policy of unfair Free Trade. Hon. Members on that side of the Gangway have long since ceased to

be entitled to be regarded as a serious party in politics. A party that comes before the country and tells the people that it can raise £200,000,000 to make roads, bridges, and so on, without increasing taxation, is a party which, in my opinion, is not entitled to the respect of any Member of this House. The one party to which the working classes, the unemployed workman, the underpaid workman, can look for better wages and better conditions, is the party which sits around me to-night. [ Interruption. ] Hon. Members opposite may endeavour to cast ridicule upon what I am saying, but, when the cotton trade of Lancashire is suffering in a way that it never has before, when the woollen trade is in an even worse condition, when the coal trade is suffering from the most acute political interference that has ever been known in this country, when the unemployment figures are rising, when the iron and steel trades are in a perfectly deplorable state—that is the time when a so-called Labour Government comes into office and puts upon the already overburdened people an additional £19,000,000 during the coming year. None of us can do without capital—[ Interruption. ]

rose in her place, and claimed to move, "That the Question be now put," but Mr. SPEAKER withheld his assent, and declined then to put that Question.

None of us can do without capital, and the only means whereby the working people of this country can get back to their own trades is by improving the export trade—a fact which has been recognised by the Lord Privy Seal himself. I see that the hour of Eleven is drawing near, and, therefore, I will only add that I shall have great pleasure in voting for the Motion.

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

The House divided: Ayes, 74; Noes, 187.

Division No. 76.]

AYES.

[11.0 p.m.

Allen, Sir J. Sandeman (Liverp'l., W.)

Bracken, B.

Crookshank, Cpt. H.(Lindsey, Gainsbro)

Amery, Rt. Hon. Leopold C. M. S.

Braithwaite, Major A. N.

Croom-Johnson. R. P.

Astor, Maj. Hon John J.(Kent, Dover)

Brown, Col. D. C. (N'th'I'd., Hexham)

Cunliffe-Lister, Rt. Hon. Sir Philip

Baldwin, Rt. Hon. Stanley (Bewdley)

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

Dairymple-White, Lt.-Col. Sir Godfrey

Balfour, George (Hampstead)

Cockerill, Brig.-General Sir George

Davidson, Rt. Hon. J. (Hertford)

Beamish, Rear-Admiral T. P. H.

Colfox, Major William Philip

Davies, Dr. Vernon

Birchall, Major Sir John Dearman

Colville, Major D. J.

Davies, Maj. Geo. F.(Somerset, Yeovil)

Bourne, Captain Robert Croft

Conway, Sir W. Martin

Dugdale, Capt. T. L.

Bowyer, Captain Sir George E. W.

Croft, Brigadier-General Sir H.

Edmondson, Major A. J.

Elliot, Major Walter E.

Llewellin, Major J. J.

Smith, R. W. (Aberd'n & Kinc'dine, C.)

Erskine, Lord (Somerset, Weston-s.-M.)

Locker-Lampson, Com. O. (Handsw'th)

Southby, Commander A. R. J.

Ferguson, Sir John

Macdonald, Capt. P. D. (I. of W.)

Stanley, Maj. Hon. O. (W'morland)

Fremantle, Lieut.-Colonel Francis E.

Macquisten, F. A.

Stuart, J. C. (Moray and Nairn)

Gault, Lieut.-Col. Andrew Hamilton

Marjoribanks, E. C.

Thomas, Major L. B. (King's Norton)

Grace, John

Mason, Colonel Glyn K.

Thomson, Sir F.

Graham, Fergus (Cumberland, N.)

Mond, Hon. Henry

Tinne, J. A.

Gunston, Captain D. W.

Morrison, W. S. (Glos., Cirencester)

Titchfield, Major the Marquess of

Hanbury, C.

Muirhead, A. J.

Todd, Capt. A. J.

Harvey, Major S. E. (Devon, Totnes)

Peake, Capt. Osbert

Wardlaw-Milne, J. S.

Henderson, Capt. R. R. (Oxf'd, Henley)

Penny, Sir George

Williams, Com. C. (Devon, Torquay)

Heneage, Lieut.-Colonel Arthur P.

Remer, John R.

Windsor-Clive, Lieut.-Colonel George

Hennessy, Major Sir G. R. J.

Rodd, Rt. Hon. Sir James Rennell

Winterton, Rt. Hon. Earl

Howard-Bury, Colonel C. K.

Ross, Major Ronald D.

Hudson, Capt. A. U.M. (Hackney, N.)

Salmon, Major I.

TELLERS FOR THE AYES.—

James, Lieut.-Colonel Hon. Cuthbert

Sandeman, Sir N. Stewart

Sir Victor Warrender and The

Leighton, Major B. E. P.

Simms, Dr. John M. (Co. Down)

Marquess of Hartington.

NOES.

Adamson, Rt. Hon. W. (Fife, West)

Hall, Capt. W. P. (Portsmouth, C.)

Phillips, Dr. Marion

Adamson, W. M. (Staff., Cannock)

Haycock, A. W.

Pole, Major D. G.

Aitchison, Rt. Hon. Cralgie M.

Hayday, Arthur

Potts, John S.

Alexander, Rt. Hon. A. V. (Hillsbro')

Hayes, John Henry

Pybus, Percy John

Alpass, J. H.

Henderson, Arthur, Junr. (Cardiff, S.)

Quibell, D. J. K.

Ammon Charles George

Henderson, Thomas (Glasgow)

Ramsay, T. B. Wilson

Arnott, John

Henderson, W. W. (Middx., Enfield)

Raynes, W. R.

Aske Sir Robert

Herriotts, J.

Richardson, R. (Houghton le-Spring)

Ayles, Walter

Hirst, G. H. (York W. R. Wentworth)

Riley, Ben (Dewsbury)

Baldwin, Oliver (Dudley)

Hopkin, Daniel

Ritson, J.

Barnes, Alfred John

Horrabin, J. F.

Romeril, H. G.

Batey, Joseph

Hudson, James H. (Huddersfield)

Rosbotham, D. S. T.

Bellamy, Albert

Hunter, Dr. Joseph

Runciman, Rt. Hon. Walter

Benn, Rt. Hon. Wedgwood

Jenkins, W. (Glamorgan, Neath)

Salter, Dr. Alfred

Bennett, Captain E. N. (Cardiff, Central)

John, William (Rhondda, West)

Sanders, W. S.

Bennett, William (Battersea, South)

Jones, F. Llewellyn- (Flint)

Sawyer, G. F.

Benson, G.

Jones, Rt. Hon. Leif (Camborne)

Scrymgeour, E.

Bentham, Dr. Ethel

Jones, T. I. Mardy (Pontypridd)

Scurr, John

Bevan, Aneurin (Ebbw Vale)

Jowett, Rt. Hon. F. W.

Sexton, James

Blindell, James

Jowitt, Rt. Hon. Sir W. A.

Shakespeare, Geoffrey H.

Bondfield, Rt. Hon. Margaret

Kedward, R. M. (Kent, Ashford)

Shepherd, Arthur Lewis

Bowen, J. W.

Kelly, W. T.

Sherwood, G. H.

Bowerman, Rt. Hon. Charles W.

Kenworthy, Lt.-Com. Hon. Joseph M.

Shield, George William

Brockway, A. Fenner

Law, A. (Rosendale)

Shillaker, J. F.

Bromfield. William

Lawrence, Susan

Simmons, C. J.

Bromley, J.

Lawrie, Hugh Hartley (Stalybridge)

Sitch, Charles H.

Brothers, M.

Leach, W.

Smith, Alfred (Sunderland)

Brown, Ernest (Leith)

Lees, J.

Smith, Ben (Bermondsey, Rotherhithe)

Brown, James (Ayr and Bute)

Lewis, T. (Southampton)

Smith, Frank (Nuneaton)

Brown, W. J. (Wolverhampton, West)

Lindley, Fred W.

Smith, Rennie (Penistone)

Buxton, C. R. (Yorks, W. R. Elland)

Lloyd, C. Ellis

Smith, Tom (Pontefract)

Buxton, Rt. Hon. Noel (Norfolk, N.)

Longden, F.

Smith, W. R. (Norwich)

Caine, Derwent Hall-

Lowth, Thomas

Snowden, Rt. Hon. Philip

Cameron, A. G.

MacDonald, Rt. Hon. J. R. (Seaham)

Spero, Dr. G. E.

Carter, W. (St. Pancras, S. W.)

McElwee, A.

Stewart, J. (St. Rollox)

Charleton, H. C.

McEntee, V. L.

Strachey, E. J. St. Loe

Church, Major A. G.

Mackinder, W.

Strauss, G. R.

Clarke, J. S.

McKinlay, A.

Sullivan. J.

Cocks, Frederick Seymour

McShane, John James

Sutton, J. E.

Daggar, George

Mansfield, W.

Taylor, R A. (Lincoln)

Dallas, George

Marcus, M.

Taylor, W. B. (Norfolk, S. W.)

Denman, Hon. R. D.

Marley, J.

Tinker, John Joseph

Dickson, T.

Mathers, George

Toole, Joseph

Dukes, C.

Melville, Sir James

Tout, W. J.

Duncan, Charles

Messer, Fred

Turner, B.

Ede, James Chuter

Middleton, G.

Vaughan, D. J.

Edmunds, J. E.

Milner, J.

Viant, S. P.

Edwards, C. (Monmouth, Bedwellty)

Morgan, Dr. H. B.

Wallace, H. W.

Edwards, E. (Morpeth)

Morley, Ralph

Watkins, F. C.

Foot, Isaac

Morris-Jones, Dr. J. H. (Denbigh)

Watson, W. M. (Dunfermline).

Gardner, B. W. (West Ham, Upton)

Mort, D. L.

Wellock, Wilfred

Gill, T. H.

Muff, G.

Welsh, James (Paisley)

Glassey, A. E.

Muggeridge, H. T.

Welsh, James C. (Coatbridge)

Gossling, A. G.

Murnin, Hugh

Westwood, Joseph

Gould, F.

Nathan, Major H. L.

White, H. G.

Graham, D. M. (Lanark, Hamilton)

Naylor, T. E.

Whiteley, Wilfrid (Birm., Ladywood)

Greenwood, Rt. Hon. A. (Colne)

Oliver, P. M. (Man., Blackley)

Whiteley, William (Blaydon)

Grenfell, D. R. (Glamorgan)

Owen, H. F. (Hereford)

Wilkinson, Ellen C.

Griffith, F. Kingsley (Middlesbro' W.)

Palin, John Henry

Williams, David (Swansea, East)

Groves, Thomas E.

Paling, Wilfrid

Williams Dr. J. H. (Llanelly)

Grundy, Thomas W.

Parkinson, John Allen (Wigan)

Wilson, R. J. (Jarrow)

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

Peters, Dr. Sidney John

Hall, G. H. (Merthyr Tydvil)

Pethick-Lawrence, F. W.

TELLERS FOR THE NOES.-

Mrs. Hamilton and Mr. Lang.

Question proposed, "That those words be there added."

rose —

It being after Eleven of the Clock, and objection, being taken to further Proceeding, the Debate stood adjourned.

The remaining Orders were read, and postponed.

Privy Council Appeals (Irish Free State)

Motion made, and Question proposed, "That this House do now adjourn."

I rise for the purpose of calling attention to the attitude adopted by the Prime Minister towards the right possessed by British citizens overseas of appealing to the final Court of Appeal—the Judicial Committee of the Privy Council. That right was, I believe, the valued right of every British citizen. It gave him a Court high above any consideration of class, colour, party or prejudice, in which he could secure a final and an authoritative interpretation of the law. It may be the case that there have been complaints against that Court. It may be that, with the expansion of the Empire, the composition of the Court could have been so amended as to secure an even greater measure of despatch and confidence than it enjoys to-day. The whole question is to be a subject of discussion at the forthcoming Imperial Conference. I believe the existence of the Court was also from the Constitutional point of view of very great value, in that it tended to consolidate together in one harmonious whole the volume of judge-made law throughout the Empire.

Within the last few days a responsible Minister of the Irish Free State has stated from his place in the Senate that the Government, on behalf of which he spoke, intended no longer to respect the jurisdiction of that final Court of Appeal. Several hon. Members, amongst whom was myself, immediately put down a question to the Prime Minister as being above all the member of the Government whose duty it is to protect the rights of British citizens and to see that Treaties are not mere scraps of paper. We know from the past that he has sided with those who take that view, but it seemed not unreasonable that in office he might have acquired some sense of responsibility. [HON. MEMBERS: "Withdraw!"] The Prime Minister's reply to our question was that he had no official cognisance of the utterance in question, that he answered questions as Prime Minister and not as a casual reader of the newspapers and that he had nothing whatever to say. In response to other questions, he said:

I feel bound to inform the Noble Lord that the Prime Minister had my support in the answer which he gave, as at that time I did not think that he had any responsible duty.

Tonight's Adjournment will allow the Prime Minister to take advantage of your ruling and to make, shall I say, a more dignified pronouncement

If it will suit hon. Members opposite, I will substitute the words "a more authoritative pronouncement."

The right hon. Gentleman cannot deny that the right of appeal exists. There cannot be any doubt whatever that Article 66 of the Treaty makes it clear that they have a right of appeal. The statement I have read makes it clear that there is unmistakable evidence of an inclination, not only not to observe an honourable undertaking, but to break a solemn and definite Treaty obligation. I think we realise here how difficult it is to discuss this subject in this House, but it seems to me that this is evidence which no Government of this country can possibly ignore. The words I have quoted, spoken in the Senate of the Irish Free State, do in themselves deprive British citizens in the Irish Free State of their right of appeal, and it must be obvious to the right hon. Gentleman that so long as these words stand no citizen can make use of his right of appeal. He may spend his money, but his appeal would be of no value. There is a great deal more in it than that. If the Government of this country accepts those words, as it does by ignoring them, if it makes no formal protest, then it, as well as the Irish Free State, becomes a Treaty breaker and fails in its definite obligation towards British citizens. I hope the right hon. Gentleman will make himself quite clear on that point. It seems to me a case in which the Prime Minister ought to act immediately. I understand that colleagues of his, speaking in another place, have said that they cannot take any notice of that utterance but must wait until some breach of the Treaty takes place and then they will see what they can do in the matter. I submit that there is nothing to be lost by making a definite and formal protest against that utterance. The position can in no way be made worse than it is by the Government taking action of that kind. I believe, moreover, that the Irish Free State Government would prove to be not unamenable to reasonable representations. It is quite possible that reasonable and strong representations such as can and ought to be made should be immediately made, and I submit that unless the Government do their duty and protect the rights of British citizens, they are guilty of a grave dereliction of duty. The Prime Minister will do one of two things if he ignores this utterance, either that he considers the utterance of no more account than the utterances of his own colleague, the Secretary of State for War—that would be grossly disrespectful to the Irish Free State—or that his own fine speeches of the last few months have nothing behind them, and that he is a man of straw.

I hope I shall always be ready to take advice from whatever corner of the House it may be offered. As I listened to the most valuable advice, tendered with such good taste, and in a manner which must carry considerable weight, more particularly considering the Noble Lord from whom it came, I thought of the remark once made by a public man who was attacked. He said:

"I am always happy in my enemies, and equally happy in my friends."

To-night, I am very happy in my critic. But this is not a question to be dealt with either in the manner, method, or substance of the Noble Lord. This is a matter of very great Imperial importance. I have read the speech delivered by Mr. Blythe in the Senate. In that speech he takes up this attitude, that, since the Articles of Agreement were accepted and the succeeding legislation was passed in this Parliament and in the Irish Free State Parliament defining the constitutional rights and liberties of the Irish Free State, our constitutional relationship had been developed, and he claims that that development must affect the Articles of Agreement. I am sorry to say that I cannot answer as to whether that was understood or not. The Noble Lord must address that question to his own Leader, because what Mr. Blythe was referring to was certain provisions agreed to by those responsible for the 1926 resolutions at the Imperial Conference of 1926. If he will be good enough to refer to the proceedings of that Conference he will understand the root of the trouble, and will understand that if there have been fine phrases used by any party in the House, to which he objects, because either they have no meaning at all or because they have far more meaning than was ever intended, the criminal is not a member of the Labour party, is not associated with this Government, but sits on the Front Opposition Bench. Mr. Blythe went on to put the question, How has the status of the Privy Council been affected by the resolutions carried at the Imperial Conference of 1926? There is a very short time available and I cannot fill up my argument. He went on to say that although it was not possible to dispose of the matter—that is the matter of appeal to the Privy Council—at the last Imperial Conference, he doubted whether there was anybody who would now want to maintain it. Then he went on further to elaborate, and said—I am reading from the OFFICIAL REPORT—

"I think all that remains is to persuade the British that in future there can be and should be no appeal to the Privy Council, that appeal to the Privy Council should be entirely abandoned, and that both sides should agree to any legislation that may be necessary to have the whole appearance of the right of appeal to the Privy Council wiped out."

That is Mr. Blythe. He then went on to comment on things that had arisen, and made the following statement:

"If the Council should still hear private litigants and decide on the suit of private litigants, and reverse the decision of the Supreme Court here, we would take whatever steps should be necessary, whether by legislation or otherwise, to make the effort of the Privy Council to reverse the decisions of the Supreme Court here ineffective; that is, pending the time when we can get agreement with the British Government to wipe out the appearance of the right of appeal, and to abolish the whole idea of appeal to the Privy Council."

That was the objectionable part of the statement. The Noble Lord, however, is most singularly misinformed. The Noble Lord, apparently, never heard of what happened in 1926, before we came into office, before our phrases had any political effect. Regarding the first appeal that was taken, the Irish Free State Legislature then passed a Bill which anticipated the decision of the Privy Council, by declaring that the law of the Free State was the law as declared by the Supreme Court of the Free State. That was in 1926 and, if my memory serves me aright, the Noble Lord's party was then in office. I have looked up the records and the late Lord Chancellor, Lord Cave, dealt with the matter in the House of Lords and he decided to do nothing in the matter at all. There are several very valuable extracts which I will not make from his speech, but I will give one:

"The Noble Lord asked what the Government meant to do"—

On a point of Order. May I ask what the right hon. Gentleman is quoting from?

Surely it is in order to read an extract when it is not in this Session of Parliament?

Undoubtedly at that interval of time, and on a question of policy, it is in order.

I really was not very sure myself. The quotation is:

"The Noble Lord asked what the Government meant to do. I do not think he would like us to go cap in hand to the Parliament and the Government of the Irish Free State and ask them withdraw their Bill."

The Noble Lord, I assume, is a great stickler for precedent. Is he going to ask me to do what his own Lord Chancellor declined to do? Our position is this: I was about to quote from the report of the proceedings of the Imperial Conference of 1926, but time does not allow me to give the quotation in full. The effect of the quotation, which I should have liked to give to the House, is that the whole question of the relation of the Privy Council to Dominion Judicatures was left unsettled. The effectiveness of the Privy Council in its relation to Dominions legislation was unsettled. There is no mistake about that. For that we are not responsible, and until the matter comes up at the next Imperial Conference it remains unsettled. That is the position, and the Government expects that if any Government of any Dominion desires in the meantime to go beyond the open and unsettled conclusions of the Imperial Conference that that Government should communicate with us. The Irish Free State Government was represented at the Imperial Conference. The Irish Free State Government agreed to the conclusion of the Imperial Conference. We know that the matter is unsettled and until the matter is settled at the next Imperial Conference, we stand by the extract which I should have read if there had been time. That is the position which I take up and that is exactly the same position as Lord Cave took up in 1926.

rose —[ Interruption ].

Question put, and agreed to.

Adjourned accordingly at Twenty-Nine Minutes after Eleven o'Clock.