BY THE RIGHT HON. GERALD BALFOUR

"_For the last two and twenty years, at first a few and now a goodly

company of rural reformers with whom I have been associated, and on

whose behalf I write, have been steadily working out a complete scheme

of rural development, their formula being better farming, better

business, better living."_--SIR H. PLUNKETT, letter to the _Times_,

December, 1911.

"_Ireland would prefer rags and poverty rather than surrender her

national spirit."_--MR. JOHN REDMOND, speech at Buffalo, September 27,

1910.

It should never be forgotten that the maintenance of the legislative

Union between Ireland and Great Britain is defended by Unionists no less

in the interests of Ireland than in that of the United Kingdom and of

the Empire. That the ills from which Ireland has admittedly suffered in

the past, and for which she still suffers, though in diminished measure,

in the present, are economic and social rather than political, is a

fundamental tenet of Unionism. Unionists also believe that economic and

social conditions in Ireland can be more effectively dealt with under

the existing political constitution than under any form of Home Rule.

Ireland is a poor country, and needs the financial resources which only

the Imperial Parliament can provide. She is, moreover, a country divided

into hostile camps marked by strong racial and religious differences. As

Sir George Trevelyan long ago pointed out, there is not one Ireland,

there are two Irelands; and only so far as Ireland continues an

integral part of a larger whole can the antagonism between the two

elements be prevented from forming a dangerous obstacle to all real

progress.

Nationalist politicians, of course, diagnose the situation very

differently. Apply suitable remedial measures, say the Unionists, to the

social and economic conditions of the country, and it is not

unreasonable to hope that political discontent--or, in other words, the

demand for Home Rule--will gradually die away of itself. Give us Home

Rule, say the Nationalists, and all other things will be added to us.

The main object of the present paper is to give a bird's eye view of

Unionist policy in relation to rural development in Ireland during the

eventful years 1885-1905. It does not pretend to deal with the larger

issue raised between Unionism and Nationalism; but incidentally, it will

be found to throw some interesting side lights upon it.

The Irish Question in its most essential aspect is a Farmers' Question.

The difficulties which it presents have their deepest roots in an

unsatisfactory system of land tenure, excessive sub-division of

holdings, and antiquated methods of agricultural economy.

Mr. Gladstone endeavoured to deal with the system of land tenure in the

two important Acts of 1870 and 1881; but the system of dual ownership

which those Acts set up introduced, perhaps, as many evils as they

removed. It became more and more evident that the only effectual remedy

lay in the complete transference of the ownership of the land from the

landlord to the occupying tenant. The successful application of this

remedy with anything like fairness to both sides absolutely demanded the

use of State credit on a large scale. The plan actually adopted in a

succession of Land Acts passed by Unionist Governments, beginning with

the Ashbourne Act of 1885, and ending with the Wyndham Act of 1903, is

broadly speaking as follows:--The State purchases the interest of the

landlord outright and vests the ownership in the occupying tenant

subject to a fixed payment for a definite term of years. These annual

payments are not in the nature of rent: they represent a low rate of

interest on the purchase money, plus such contribution to a sinking fund

as will repay the principal in the term of years for which the annual

payments are to run. The practical effect of this arrangement is that

the occupier becomes the owner of his holding, subject to a terminable

annual payment to the State of a sum less in amount than the rent he has

had to pay heretofore.

The successful working of the scheme obviously depends on the credit of

the State, in other words, its power of borrowing at a low rate of

interest. In this respect the Imperial Government has an immense

advantage over any possible Home Rule Government: indeed, it is doubtful

whether any Home Rule Government could have attempted this great reform

without wholesale confiscation of the landlords' property. Here then in

Land Purchase and the abolition of dual ownership, we have one of the

twin pillars on which, on its constructive side, the Irish policy of the

Unionist party rests. But to solve the problem of rural Ireland--which,

as I have said, is _the_ Irish problem--more is required than the

conversion of the occupying tenant into a peasant proprietor. The sense

of ownership may be counted on to do much; but it will not make it

possible for a family to live in decent comfort on an insufficient

holding; neither will it enable the small farmer to compete with those

foreign rivals who have at their command improved methods of production,

improved methods of marketing their produce, facilities for obtaining

capital adequate to their needs, and all the many advantages which

superior education and organised co-operation bring in their train.

Looking back to-day, the wide field that in these directions was open to

the beneficent action of the State, and to the equally beneficent action

of voluntary associations, seems evident and obvious. It was by no means

so evident or obvious twenty years ago. At that time the traditional

policy of _laisser faire_ had still a powerful hold over men's minds,

and to abandon it even in the case of rural Ireland was a veritable new

departure in statesmanship. The idea of establishing a voluntary

association to promote agricultural co-operation was even more remote;

and, as will be seen in the sequel, it was to the insight and devoted

persistence of a single individual that its successful realisation has

been ultimately due.

So far as State action was concerned, a beginning was naturally made

with the poorest parts of the country. Mr. Arthur Balfour led the way

with two important measures. One of these was the construction of light

railways in the most backward tracts on the western seaboard. These

railways were constructed at the public expense, but worked by existing

railway companies, and linked up with existing railway systems. The

benefits conferred on those parts of the country through which they

passed have been great and lasting.

Mr. Balfour's second contribution to Irish rural development was the

creation of the Congested Districts Board in 1891. The "congested

districts" embraced the most poverty-stricken areas in the western

counties, and the business of the Board was to devise and apply, within

those districts, schemes for the amelioration of the social and economic

condition of the population comprised in them. For this purpose, the

Board was invested with very wide powers of a paternal character, and an

annual income of upwards of £40,000 was placed at their free disposal, a

sum which has been largely increased by subsequent Acts.

The experiment was an absolutely novel one, but no one who is able to

compare the improved condition of the congested districts to-day with

the state of things that prevailed twenty years ago can doubt that it

has been amply justified by results.

Every phase of the life of the Irish peasant along the whole of the

western seaboard has been made brighter and more hopeful by the

beneficent operations of the Board. Its activities have been manifold,

including the purchase and improvement of estates prior to re-sale to

the tenants; the re-arrangement and enlargement of holdings; the

improvement of stock; the provision of pure seeds and high-class

manures; practical demonstration of various kinds, all educational in

character; drainage; the construction of roads; improvement in the

sanitary conditions of the people's dwellings; assistance to provide

proper accommodation for the livestock of the farm, which too frequently

were housed with the people themselves; the development of sea

fisheries; the encouragement of many kinds of home industries for women

and girls; the quarrying of granite; the making of kelp; the promotion

of co-operative credit; and many other schemes which had practical

regard to the needs of the people, and have contributed in a variety of

ways to raise the standard of comfort of the inhabitants of these

impoverished areas.

It will be noticed that among the other activities of the Congested

Districts Board, I have specially mentioned the work of promoting

co-operative credit by means of village banks managed on the Raffeisen

system. The actual work of organising these co-operative banking

associations has not been carried out directly by the Board, but through

the agency of the Irish Agricultural Organisation Society (generally

known by the shorter title of the I.A.O.S.), to which the Board has for

many years past paid a small subsidy--a subsidy which might well have

been on a more generous scale, having regard to the immense advantages

which co-operation is capable of conferring on the small farmer.

The I.A.O.S. is a voluntary association of a strictly non-political

character. "Business, not politics," has been its principle of action;

and partly, perhaps, for this very reason it may claim to have

contributed more than any other single agency towards the prosperity of

rural Ireland. To its work I now turn.

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