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* * * * *

LIBERALISM AND THE

SOCIAL PROBLEM

BY

THE RIGHT HONOURABLE

WINSTON SPENCER CHURCHILL

M.P.

SECOND EDITION

HODDER AND STOUGHTON

LONDON MCMIX

PREFACE

These are the principal speeches I have made within the last four

years. They have been chosen and collected with the idea of presenting

a consistent and simultaneous view of the general field of British

politics in an hour of fateful decision. I have exercised full freedom

in compression and in verbal correction necessary to make them easier

to read. Facts and figures have been, where necessary, revised,

ephemeral matter eliminated, and epithets here and there reconsidered.

But opinions and arguments are unaltered; they are hereby confirmed,

and I press them earnestly and insistently upon the public.

We approach what is not merely a party crisis but a national

climacteric. Never did a great people enter upon a period of trial

and choice with more sincere and disinterested desire to know the

truth and to do justice in their generation. I believe they will

succeed.

WINSTON S. CHURCHILL.

33 ECCLESTON SQUARE.

_October 26, 1909._

CONTENTS

PAGE

PREFACE vii

INTRODUCTION xiii

I

THE RECORD OF THE GOVERNMENT

THE CONCILIATION OF SOUTH AFRICA 3

THE TRANSVAAL CONSTITUTION 16

THE ORANGE FREE STATE CONSTITUTION 45

LIBERALISM AND SOCIALISM 67

IMPERIAL PREFERENCE--I. 85

IMPERIAL PREFERENCE--II. 106

THE HOUSE OF LORDS 124

THE DUNDEE ELECTION 147

II

SOCIAL ORGANISATION

THE MINES [EIGHT HOURS] BILL 173

UNEMPLOYMENT 189

THE SOCIAL FIELD 211

THE APPROACHING CONFLICT 225

THE ANTI-SWEATING BILL 239

LABOUR EXCHANGES AND UNEMPLOYMENT INSURANCE 253

III

THE BUDGET

THE BUDGET RESOLUTIONS 277

THE BUDGET AND NATIONAL INSURANCE 297

LAND AND INCOME TAXES IN THE BUDGET 318

THE BUDGET AND THE LORDS 344

THE SPIRIT OF THE BUDGET 357

THE BUDGET AND PROPERTY 384

THE CONSTITUTIONAL MENACE 405

INTRODUCTION

The series of speeches included in this volume ranges, in point of

time, from the earlier months of Sir Henry Campbell-Bannerman's

Government to the latest phase in the fortunes of Mr. Asquith's

succeeding Ministry, and forms an argumentative defence of the basis

of policy common to both Administrations. The addresses it contains

deal with nearly all the great political topics of the last four

years--with Free Trade, Colonial Preferences, the South African

settlement, the latest and probably the final charter of trade

unionism, the Miners' Bill, the measures for establishing Trade Boards

and Labour Exchanges, the schemes of compulsory and voluntary

assurance, and the Budget. They possess the further characteristic of

describing and commending these proposals as "interdependent" parts of

a large and fruitful plan of Liberal statesmanship. Of this scheme the

Budget is at once the foundation and the most powerful and attractive

feature. If it prospers, the social policy for which it provides

prospers too. If it fails, the policy falls to the ground.

The material of these speeches is therefore of great importance to the

future of democracy in this country. Let me say a word as to their

authorship. To a friendly critic they appear to present not only rare

and highly trained qualities of statement and persuasion, but a unity

and sincerity of thought which give them a place above mere party

dialectics. Mr. Churchill's distinguished service to Liberalism has

not been long in point of years, but it opened with the first speeches

he ever delivered in the House of Commons. No competent observers of

political activities, and of the characters and temperaments which

direct them, can have doubted from the first moment of Mr. Churchill's

appearance on the stage where his moral and intellectual sympathies

lay and whither they would lead him. It is a true and, indeed, an

obvious comment on his career to say that he began where his father

left off--as a Democrat and a Free Trader, and that on these inherited

instincts and tendencies he has built what both his friends and his

enemies expected him to build. Mr. Churchill came to Liberalism from

the same fold as Gladstone, and for the same reason--that it presented

the one field of work open to a political talent of a high stamp, and

to a wide and eager outlook on the future of our social order.

Liberalism and Mr. Churchill have both had good reason to congratulate

themselves on that choice, and the party which failed to draw him into

a disastrous and reactionary change of view has no reason to resent

it. Before he became a Liberal Mr. Churchill had taken the broad views

of the South African problem that his father's later opinions

commended to him, and he was properly chosen to expound to the House

of Commons the plan of self-government that embodied them.

If, therefore, the political groundwork of these speeches is sound

Liberal principle, their meaning and purpose, taken in connection with

the Budget, and the industrial reforms for which it provides, signify

a notable advance into places where the thinkers, the pioneers, the

men in the advanced trenches, are accustomed to dwell. Let us

acknowledge, with a sense of pleasure and relief, that this is new

territory. New, that is to say, for this country; not new to the best

organisations of industrial society that we know of. New as a clearly

seen vision and a connected plan of British, statesmanship; not new as

actual experiment in legislation, and as theory held by progressive

thinkers of many schools, including some of the fathers of modern

Liberal doctrine, and most of our economists. What is there in these

pages repugnant to writers of the type of John Mill, Jevons, and

Marshall? How much of them would even be repelled by Cobden? In the

main they preach a gospel--that of national "efficiency"--common to

all reformers, and accepted by Bismarck, the modern archetype of

"Empire-makers," as necessary to the consolidation of the great German

nation. An average Australian or Canadian statesman would read them

through with almost complete approval of every passage, save only

their defence of Free Trade. Nay more; the apology for property which

they put forward--that it must be "associated in the minds of the mass

of the people with ideas of justice and reason"--is that on which the

friends of true conservatism build when they think of the evils of

modern civilisation and the great and continuous efforts necessary to

repair them. Who does not conclude, with Mr. Churchill, that "a more

scientific, a more elaborate, a more comprehensive social

organisation" is indispensable to our country if it is to continue its

march to greatness? Back or forward we must go.

Mr. Churchill, indeed, has thought it wise to raise the specific point

at which, in the process of seeking a finer use and adaptation of the

human material which forms society, the progressive and reforming

statesman parts company with the dogmatic Socialist. There is no need

to labour a distinction which arises from the nature and the

activities of the two forces. British Liberalism is both a mental

habit and a method of politics. Through both these characteristics it

is bound to criticise a State so long as in any degree it rests on the

principles of "Penguin Island"--"respect for the rich and contempt for

the poor," and to modify or repeal the rights of property where they

clearly conflict with human rights. But its idealism and its practical

responsibilities forbid it to accept the elimination of private

enterprise and the assumption by the State of all the instruments of

production and distribution. Socialism has great power of emotional

and even religious appeal, of which it would be wise for Liberalism

to take account, and it is, on the whole, a beneficent force in

society. But as pure dogma it fits the spirit of man no more exactly

than the Shorter Catechism. As Mr. Churchill well says, both the

collectivist and the individualist principles have deep roots in human

life, and the statesman can ignore neither.

In the main, therefore, these speeches, with all their fresh

brilliancy of colouring and treatment, hold up the good old banner of

social progress, which we erect against reactionist and revolutionist

alike. The "old Liberal" will find the case for Free Trade, for peace,

for representative government, stated as powerfully and convincingly

as he could wish. Their actual newness consists in the fact that not

only do they open up to Liberalism what it always wants--a wide domain

of congenial thought and energy, but they offer it two propositions

which it can reject only at its peril. The first is that there can and

must be a deep, sharp abridgment of the sphere of industrial life

which has been marked out as hopeless, or as an inevitable part of the

social system.

Here the new Liberalism parts with _laissez-faire_, and those who

defend it. It assumes that the State must take in hand the problems

of industrial insecurity and unemployment, and must solve them. The

issue is vital. Protection has already made its bid. It will assure

the workman what is in his mind more than cheap food--namely, secure

wages; it affects to give him all his life, or nearly all his life, a

market for his labour so wide and so steady that the fear of forced

idleness will almost be banished from it. The promise is false.

Protection by itself has in no country annulled or seriously qualified

unemployment. But the need to which it appeals is absolutely real; for

the modern State it is a problem of the Sphinx, neither to be shirked

nor wrongly answered. And the alternative remedy offered in these

pages has already, as their author abundantly shows, succeeded even in

the very partial forms in which it has been applied. The labour market

can be steadied and equalised over a great industrial field. Part of

its surplus can be provided for. What Mr. Churchill calls "diseased

industries" can be cut off from the main body, or restored to some

measure of health. The State can set up a minimum standard of health

and wage, below which it will not allow its citizens to sink; it can

step in and dispense employment and restorative force under strictly

specified conditions, to a small body of more or less "sick" workers;

it can supply security for a far greater, less dependent, and more

efficient mass of labourers, in recurring crises of accident,

sickness, invalidity, and unemployment, and can do so with every hope

of enlisting in its service voluntary forces and individual virtues of

great value.

This is not a problem of "relief," it is a method of humanity, and its

aim is not merely to increase the mechanical force of the State, but

to raise the average of character, of _morale_, in its citizens. Nor

do these speeches represent only a batch of platform promises. The

great scheme of social betterment preached in these pages is already

embodied in half a dozen Acts of Parliament, with corresponding

organisations in the Board of Trade and elsewhere; and if the Budget

passes, the crown can be put upon them next year or the year after by

measures of insurance against invalidity and unemployment.

Mr. Churchill's second proposition is the correlative of the first.

How shall this imposing fabric of industrial security be reared and

made safe? The answer is, by modifying, without vitally changing, the

basis of taxation. The workman cannot be asked to pay for everything,

as under Protection he must pay. In any case, he must pay for

something. But if he is asked for too much, the sources of physical

efficiency are drained, and the main purpose of the new

Liberalism--the ideal of an educated, hopeful, and vigorous people--is

destroyed. Now Liberalism, in ceasing to rely on indirect taxation as

its main source of revenue, has opened up for contribution not merely

the superfluities of society, the "accumulations of profit," as Mr.

Churchill calls them, but those special forms of wealth which are

"social" in origin, which depend on some monopoly of material agents,

on means not of helping the community but of hindering it, not of

enriching its powers and resources, but of depleting them for private

advantage. In other words, the State in future will increasingly ask

the taxpayer not only "What have you got?" but "How did you get it?"

No one contends that such an analysis can be perfect; but, on the

other hand, can a community desirous of realising what Goethe calls

"practical Christianity," ignore it? And if in this process it enters

the sphere of morals, as Ruskin long ago urged it to do, as well as

the path of economic justice, is the step a wrong one? Has it not

already been taken not only in this Budget, but in its predecessor, in

which the Prime Minister made the memorable distinction between earned

and unearned income? Those who answer these questions in the Liberal

sense will find in these speeches a body of vigorous and persuasive

reasoning on their side.

It is therefore the main purpose of these speeches to show that

Liberalism has a message of the utmost consequence to our times. They

link it afresh with the movement of life, which when it overtakes

parties condemns and destroys them. They give it an immediate mission

and an outlook on the wider moral domain, which belongs to no single

generation. This double character is vital to a Party which must not

desert the larger ways in which the spirit of man walks, while it

quits at its peril the work of practical, everyday service to existing

society.

A word as to the literary quality of these addresses, widely varied as

they are in subject. The summit of a man's powers--his full capacity

of reason, comparison, expression--are not usually reached at so

early a point in his career as that which Mr. Churchill has attained.

But in directness and clearness of thought, in the power to build up a

political theory, and present it as an impressive and convincing

argument, in the force of rhetoric and the power of sympathy, readers

of these addresses will find few examples of modern English

speech-making to compare with them. They revive the almost forgotten

art of oratory, and they connect it with ideas born of our age, and

springing from its conscience and its practical needs, and, above all,

essential to its happiness.

H.W. MASSINGHAM.

I

THE RECORD OF THE GOVERNMENT

PAGE

THE CONCILIATION OF SOUTH AFRICA (April 5, 1906) 3

THE TRANSVAAL CONSTITUTION (July 31, 1906) 16

THE ORANGE FREE STATE CONSTITUTION (December 17, 1906) 45

LIBERALISM AND SOCIALISM (October 11, 1906) 67

IMPERIAL PREFERENCE--I. (May 7, 1907) 85

IMPERIAL PREFERENCE--II. (July 16, 1907) 106

THE HOUSE OF LORDS (June 29, 1907) 124

THE DUNDEE ELECTION (May 14, 1908) 147

THE CONCILIATION OF SOUTH AFRICA

HOUSE OF COMMONS, _April 5, 1906_

We have travelled a long way since this Parliament assembled, in the

discussion of the Transvaal and Orange River Colony Constitutions.

When the change of Government took place Mr. Lyttelton's Constitution

was before us. That instrument provided for representative and not

responsible government. Under that Constitution the election would

have been held in March of this year, and the Assembly would have met

in June, if the home Government had not changed. But just at the time

that the Government changed in December two questions arose--the

question of whether or not soldiers of the British Army in garrison

should be allowed to vote; and the question whether it would not be

better to have sixty constituencies instead of thirty; and, as both

questions involved necessary alterations in the Letters Patent, the

time was ripe, quite apart from any difference which the change of the

men at the helm might make, for a reconsideration and review of the

whole form of the government which was to be given to the two

Colonies.

The objection that must most readily occur in considering Mr.

Lyttelton's Constitution is that it was unworkable. It proposed that

there should be from six to nine nominated Ministers in an Assembly of

thirty-five, afterwards to be increased to sixty elective members. The

position of a Minister is one of considerable difficulty. He often has

to defend rather an awkward case. When favourable facts are wanting he

has to depend upon the nimbleness of his wits, and, when these fail

him, he has to fall back upon the loyalty of his supporters. But no

Minister can move very far upon his road with satisfaction or success

if he has not behind him either a nominated majority or an organised

Party majority. Mr. Lyttelton's Ministers had neither. They would have

been alone, hopelessly outnumbered in an Assembly, the greater part of

which was avowedly in favour of responsible and not of representative

government. These Ministers, with one exception, had no previous

Parliamentary experience and no ascertained Parliamentary ability.

They would have been forced to carry their Bills and their Estimates

through an Assembly in the main opposed to them. All this time, while

we should have given to these Ministers this serious duty, we should

ourselves have had to bear the whole responsibility in this country

for everything that was done under their authority; and their

authority could only be exerted through an Assembly which, as things

stood, they could not control.

The Committee can easily imagine the telegrams and the questions which

would have been addressed from Downing Street and the House of Commons

to these Ministers on native matters, on the question of the

administration of the Chinese Ordinance, on all the numerous intricate

questions with which we are at the present moment involved in South

Africa. And what would have been the position of these Ministers,

faced with these embarrassments in a hostile Assembly in which they

had few friends--what possibility would they have had of maintaining

themselves in such an Assembly? Is it not certain that they would have

broken down under the strain to which they would have been exposed,

that the Assembly would have been infuriated, that Parties differing

from each other on every conceivable question, divided from each other

by race and religion and language, would have united in common hatred

of the interference of the outside Power and the government of

bureaucrats. Then we should very speedily have got to the bottom of

the hill. There would have been a swift transition. The Legislative

Assembly would have converted itself into a constituent Assembly, and

it would have taken by force all that the Government now have it in

their power to concede with grace, distinction, and authority. On

these grounds his Majesty's Government came to the conclusion that it

would be right to omit the stage of representative government

altogether and to go directly to the stage of responsible government.

It is the same in politics as it is in war. When one crest line has

been left, it is necessary to go to the next. To halt half-way in the

valley between is to court swift and certain destruction, and the

moment you have abandoned the safe position of a Crown Colony

government, or government with an adequate nominated majority, there

is no stopping-place whatever on which you may rest the sole of your

foot, until you come to a responsible Legislative Assembly with an

executive obeying that Assembly. These arguments convinced his

Majesty's Government that it would be necessary to annul the Letters

Patent issued on March 31, 1905, and make an end of the Lyttelton

Constitution. That Constitution now passes away into the never-never

land, into a sort of chilly limbo that is reserved for the disowned or

abortive political progeny of many distinguished men.

The Government, and those who support them, may rejoice that we have

been able to take this first most important step in our South African

policy with such a very general measure of agreement, with, indeed, a

consensus of opinion which almost amounts to unanimity. Both races,

every Party, every class, every section in South Africa have agreed in

the course which his Majesty's Government have adopted in abandoning

representative government and going at once to responsible government.

That is already a very great thing, but it was not always so. Those

who sat in the last Parliament will remember that it was not always

so. We remember that Lord Milner was entirely opposed to granting

responsible government. We know that Mr. Lyttelton wrote pages and

pages in the Blue Book of last year proving how futile and dangerous

responsible government would be; and the right hon. Member for West

Birmingham, who took the Government decision as a matter of course on

the first day of the present session, made a speech last session in

which he indicated in terms of great gravity and force, that he

thought it was wholly premature to grant responsible government to the

Transvaal. But all that is abandoned now. I heard the right hon.

Member for West Birmingham, in the name of the Party opposite, accept

the policy of his Majesty's Government. I heard the hon. Member for

Blackpool this afternoon say that he hoped that responsible government

would be given to the Transvaal at the earliest possible moment. In

regard to the Orange River Colony, it is quite true that the official

Opposition, so far as I gather their view, think that it should be

delayed, and should not be given at the same time as to the Transvaal;

but that is not the view of the right hon. Member for West Birmingham.

Speaking in the House of Commons on July 27, 1905, the right hon.

gentleman said:

"Objection has also been taken that the same government which is now

being given to the Transvaal has not been given to the Orange River

Colony. I think that the experiment might have been far better tried

in the Orange River Colony. It is quite true that in that Colony there

is an enormous majority of the Dutch or Boer population. But they have

shown by long experience that they are most capable and moderate

administrators--under the admirable rule of President Brand they set

an example to the whole of South Africa; and although I think there is

some danger in this experiment, it is in the Orange River Colony that

I myself would have been inclined, in the first instance, to take the

risk."

It is true the right hon. gentleman was speaking of representative

government; but it cannot be disputed that if an advance were to be

made in associating the people of the conquered Colonies with the

government of those Colonies, the right hon. gentleman thought that it

had better be in the Orange River Colony first. But at any rate now it

is incontestable that there is no Party in this country or in the

Transvaal that opposes the grant of responsible government to the

Transvaal. That is a great advance, and shows that we have been able

to take our first step with the approbation of all concerned.

But the Opposition, having abandoned their resistance to the grant of

responsible government, now contend that on no account must the basis

of the Lyttelton Constitution be departed from. I am not convinced by

that argument. The Government are to pursue a new purpose, but to

adhere to the old framework. We are to cut off the head of the

Lyttelton Constitution, but are to preserve the old trunk and graft a

new head on it. I do not believe that any Government, approaching this

question from a new point of view, uncompromised and unfettered, would

be bound by the framework and details of the Lyttelton Constitution.

It may be that that Constitution contains many excellent principles,

but the Government have a right to consider things from the beginning,

freshly and freely, to make their own plans in accordance with their

own ideas, and to present those plans for the acceptance of the House.

The noble lord the Member for South Birmingham spoke of the principle

of "one vote, one value," which was embodied in the Lyttelton

Constitution. The principle of "one vote, one value" is in itself an

orthodox and unimpeachable principle of democracy. It is a logical,

numerical principle. If the attempt be made to discriminate between

man and man because one has more children and lives in the country, it

would be arguable that we should discriminate because another man has

more brains or more money, or lives in the town, or for any other of

the many reasons that differentiate one human being from another. The

only safe principle, I think, is that for electoral purposes all men

are equal, and that voting power, as far as possible, should be evenly

distributed among them.

In the Transvaal the principle of "one vote, one value" can be made

operative only upon a basis of voters. In nearly every other country

in the world, population is the usual basis of distribution, for

population is the same as electorate and electorate the same as

population. On both bases the distribution of the constituencies would

be the same. There is, for instance, no part of this country which is

more married, or more celibate, or more prolific than any other part.

It is only in the Transvaal, this country of afflicting dualities and

of curious contradictions, where everything is twisted, disturbed, and

abnormal, that there is a great disparity between the distribution of

seats on the basis of voters and on the basis of population. The high

price of provisions in the towns restricts the growth of urban

population, and the dullness of the country districts appears to be

favourable to the growth of large families. It is a scientific and

unimpeachable fact that, if you desire to apply the principle of "one

vote, one value" to the Constitution of the Transvaal, that principle

can best be attained--I am not sure that it cannot only be

attained--on the basis of voters, and that is the basis Mr. Lyttelton

took in the Constitution he formed.

But Mr. Lyttelton's plan did not stop there. Side by side with this

basis of voters, he had an artificial franchise of L100 annual value.

That is a very much lower qualification in South Africa, than it would

be in this country, and I do not think that the franchise which Mr.

Lyttelton proposed could be called an undemocratic franchise, albeit

that it was an artificial franchise, because it yielded 89,000 voters

out of a population of 300,000, and that is a much more fertile

franchise, even after making allowance for the abnormal conditions of

a new country, than we have in this country or than is the case in

some American and European States. So that I do not accuse Mr.

Lyttelton of having formulated an undemocratic franchise, but taking

these two points together--the unusual basis of distribution with the

apparently artificial franchise--acting and reacting, as they must

have done, one upon the other--there was sufficient ground to favour

the suspicion, at any rate, that something was intended in the nature

of a dodge, in the nature of a trick, artificially to depress the

balance in one direction and to tilt it in the other.

In dealing with nationalities, nothing is more fatal than a dodge.

Wrongs will be forgiven, sufferings and losses will be forgiven or

forgotten, battles will be remembered only as they recall the martial

virtues of the combatants; but anything like chicane, anything like a

trick, will always rankle. The Government are concerned in South

Africa not only to do what is fair, but to do what South Africa will

accept as fair. They are concerned not merely to choose a balance

which will deal evenly between the races, but one which will secure

the acceptance of both races.

* * * * *

We meet unjust charges in good heart. The permanence and security of

British sovereignty in South Africa is not a matter of indifference to

his Majesty's Ministers. Surely no honourable Member believes that we

could wish to cheat the British race in the Transvaal of any numerical

preponderance which may properly belong to them. Equally with our

political opponents we desire to see the maintenance of British

supremacy in South Africa. But we seek to secure it by a different

method. There is a profound difference between the schools of thought

which exist upon South African politics in this House. We think that

British authority in South Africa has got to stand on two legs. You

have laboured for ten years to make it stand on one. We on this side

know that if British dominion is to endure in South Africa it must

endure with the assent of the Dutch, as well as of the British. We

think that the position of the Crown in South Africa, and let me add

the position of Agents and Ministers of the Crown in South Africa,

should be just as much above and remote from racial feuds, as the

position of the Crown in this country is above our Party politics. We

do not seek to pit one race against the other in the hope of profiting

from the quarrel. We hope to build upon the reconciliation and not

upon the rivalry of races. We hope that it may be our fortune so to

dispose of affairs that these two valiant, strong races may dwell

together side by side in peace and amity under the shelter of an equal

flag.

THE TRANSVAAL CONSTITUTION

HOUSE OF COMMONS, _July 31, 1906_

It is my duty this afternoon, on behalf of the Government, to lay

before the Committee the outline and character of the constitutional

settlement which we have in contemplation in regard to the lately

annexed Colonies in South Africa. This is, I suppose, upon the whole,

the most considerable business with which this new Parliament has had

to deal. But although no one will deny its importance, or undervalue

the keen emotions and anxieties which it excites on both sides of the

House, and the solemn memories which it revives, yet I am persuaded

that there is no reason why we should be hotly, sharply, or bitterly

divided on the subject; on the contrary, I think its very importance

makes it incumbent on all who participate in the discussion--and I

will certainly be bound by my own precept--to cultivate and observe a

studious avoidance of anything likely to excite the ordinary

recriminations and rejoinders of Party politics and partisanship.

After all, there is no real difference of principle between the two

great historic Parties on this question. The late Government have

repeatedly declared that it was their intention at the earliest

possible moment--laying great stress upon that phrase--to extend

representative and responsible institutions to the new Colonies; and

before his Majesty's present advisers took office the only question in

dispute was, When? On the debate on the Address, the right hon. Member

for West Birmingham--whose absence to-day and its cause I am quite

sure are equally regretted in all parts of the House--spoke on this

question with his customary breadth of view and courage of thought. He

said: "The responsibility for this decision lies with the Government

now in power. They have more knowledge than we have; and if they

consider it safe to give this large grant, and if they turn out to be

right, no one will be better pleased than we. I do not think that,

although important, this change should be described as a change in

colonial policy, but as continuity of colonial policy."

If, then, we are agreed upon the principle, I do not think that

serious or vital differences can arise upon the method. Because, after

all, no one can contend that it is right to extend responsible

government, but not right to extend it fairly. No one can contend that

it is right to grant the forms of free institutions, and yet to

preserve by some device the means of control. And so I should hope

that we may proceed in this debate without any acute divergences

becoming revealed.

I am in a position to-day only to announce the decision to which the

Government have come with respect to the Transvaal. The case of the

Transvaal is urgent. It is the nerve-centre of South Africa. It is the

arena in which all questions of South African politics--social, moral,

racial, and economic--are fought out; and this new country, so lately

reclaimed from the wilderness, with a white population of less than

300,000 souls, already reproduces in perfect miniature all those dark,

tangled, and conflicting problems usually to be found in populous and

old-established European States. The case of the Transvaal differs

fundamentally from the case of the Orange River Colony. The latter

has been in the past, and will be again in the future, a tranquil

agricultural State, pursuing under a wise and tolerant Government a

happy destiny of its own. All I have to say about the Orange River

Colony this afternoon is this--that there will be no unnecessary delay

in the granting of a Constitution; and that in the granting of that

Constitution we shall be animated only by a desire to secure a fair

representation of all classes of inhabitants in the country, and to

give effective expression to the will of the majority.

When we came into office, we found a Constitution already prepared for

the Transvaal by the right hon. Member for St. George's, Hanover

Square.[1] That Constitution is no more. I hope the right hon.

gentleman will not suspect me of any malevolence towards his

offspring. I would have nourished and fostered it with a tender care;

but life was already extinct. It had ceased to breathe even before it

was born; but I trust the right hon. gentleman will console himself by

remembering that there are many possibilities of constitutional

settlements lying before him in the future. After all, the Abbe

Sieyes, when the Constitution of 1791 was broken into pieces, was very

little younger than the right hon. gentleman, and he had time to make

and survive two new Constitutions.

Frankly, what I may, for brevity's sake, call the Lyttelton

Constitution was utterly unworkable. It surrendered the machinery of

power; it preserved the whole burden of responsibility and

administration. Nine official gentlemen, nearly all without

Parliamentary experience, and I daresay without Parliamentary

aptitudes, without the support of that nominated majority which I am

quite convinced that the right hon. Member for West Birmingham had

always contemplated in any scheme of representative government, and

without the support of an organised party, were to be placed in a

Chamber of thirty-five elected members who possessed the power of the

purse. The Boers would either have abstained altogether from

participating in that Constitution, or they would have gone in only

for the purpose of wrecking it. The British party was split into two

sections, and one section, the Responsibles, made public declarations

of their intention to bring about a constitutional deadlock by

obstruction and refusing supplies, and all the other apparatus of

Parliamentary discontent. In fact, the Constitution of the right hon.

gentleman seemed bound inevitably to conjure up that nightmare of all

modern politicians, government resting on consent, and consent not

forthcoming.

As I told the House in May, his Majesty's Government thought it their

duty to review the whole question. We thought it our duty and our

right to start fair, free, and untrammelled, and we have treated the

Lyttelton Constitution as if it had never been. One guiding principle

has animated his Majesty's Government in their policy--to make no

difference in this grant of responsible government between Boer and

Briton in South Africa. We propose to extend to both races the fullest

privileges and rights of British citizenship; and we intend to make no

discrimination in the grant of that great boon, between the men who

have fought most loyally for us and those who have resisted the

British arms with the most desperate courage. By the Treaty of

Vereeniging, in which the peace between the Dutch and British races

was declared for ever, by Article 1 of that treaty the flower of the

Boer nation and its most renowned leaders recognised the lawful

authority of his Majesty King Edward VII, and henceforth, from that

moment, British supremacy in South Africa stood on the sure

foundations of military honour and warlike achievement.

This decision in favour of even-handed dealing arises from no

ingratitude on our part towards those who have nobly sustained the

British cause in years gone by. It involves no injustice to the

British population of the Transvaal. We have been careful at each

point of this constitutional settlement to secure for the British

every advantage that they may justly claim. But the future of South

Africa, and, I will add, its permanent inclusion in the British

Empire, demand that the King should be equally Sovereign of both

races, and that both races should learn to look upon this country as

their friend.

* * * * *

When I last spoke in this House on the question of the South African

Constitution, I took occasion to affirm the excellence of the general

principle, one vote one value. I pointed out that it was a logical and

unimpeachable principle to act upon; that the only safe rule for

doing justice electorally between man and man was to assume--a large

assumption in some cases--that all men are equal and that all

discriminations between them are unhealthy and undemocratic. Now the

principle of one vote one value can be applied and realised in this

country, either upon the basis of population, or upon the basis of

voters. It makes no difference which is selected; for there is no part

of this country which is more married, or more prolific than another,

and exactly the same distribution and exactly the same number of

members would result whether the voters or the population basis were

taken in a Redistribution Bill. But in South Africa the disparity of

conditions between the new population and the old makes a very great

difference between the urban and the rural populations, and it is

undoubtedly true that if it be desired to preserve the principle of

one vote one value, it is the voters' basis and not the population

basis that must be taken in the Transvaal--and that is the basis which

his Majesty's Government have determined to adopt.

The right hon. gentleman the Member for St. George's, Hanover Square,

had proposed to establish a franchise qualification of L100 annual

value. That is not nearly such a high property-qualification as it would

be in this country. I do not quarrel with the right hon. gentleman's

Constitution on the ground that his franchise was not perfectly fair, or

not a perfectly _bona fide_ and generous measure of representation. But

it is undoubtedly true that a property-qualification of L100 annual

value told more severely against the Boers than against the British,

because living in the towns is so expensive that almost everybody who

lives in the towns, and who is not utterly destitute, has a

property-qualification of L100 annual value. But in the country

districts there are numbers of men, very poor but perfectly respectable

and worthy citizens--day labourers, farmers' sons, and others--who would

not have that qualification, and who consequently would have been

excluded by the property-qualification, low as it is having regard to

the conditions in South Africa. Quite apart from South African questions

and affairs, his Majesty's Government profess a strong preference for

the principle of manhood suffrage as against any property-qualification,

and we have therefore determined that manhood suffrage shall be the

basis on which votes are distributed.

It is true that in the prolonged negotiations and discussions which

have taken place upon this question manhood suffrage has been demanded

by one party and the voters' basis by the other, and there has been a

tacit, though quite informal agreement that the one principle should

balance the other. But that is not the position of his Majesty's

Government in regard to either of these propositions. We defend both

on their merits. We defend "one vote, one value," and we defend

manhood suffrage, strictly on their merits as just and equitable

principles between man and man throughout the Transvaal. We have

therefore decided that all adult males of twenty-one years of age, who

have resided in the Transvaal for six months, who do not belong to the

British garrison--should be permitted to vote under the secrecy of the

ballot for the election of Members of Parliament.

Now there is one subject to which I must refer incidentally. The

question of female suffrage has been brought to the notice of various

members of the Government on various occasions and in various ways.

We have very carefully considered that matter, and we have come to the

conclusion that it would not be right for us to subject a young

Colony, unable to speak for itself, to the hazards of an experiment

which we have not had the gallantry to undergo ourselves; and we shall

leave that question to the new Legislature to determine.

I come now to the question of electoral divisions. There are two

alternatives before us on this branch of the subject--equal electoral

areas or the old magisterial districts. When I say "old," I mean old

in the sense that they are existing magisterial districts. There are

arguments for both of these courses. Equal electoral areas have the

advantage of being symmetrical and are capable of more strict and

mathematical distribution. But the Boers have expressed a very strong

desire to have the old magisterial districts preserved. I think it is

rather a sentimental view on their part, because upon the whole I

think the wastage of Boer votes will, owing to excessive plurality in

certain divisions, be slightly greater in the old magisterial

districts than in equal electoral areas. The Boers have, however, been

very anxious that the old areas of their former Constitution, of

their local life, should be interfered with as little as possible, and

that is a matter of serious concern to his Majesty's Government.

Further, there is a great saving of precious time and expense in

avoiding the extra work of new delimitation which would be necessary

if the country were to be cut up into equal mathematical electoral

areas.

The decision to adopt the old magisterial areas, which divide the

Transvaal into sixteen electoral divisions, of which the Witwatersrand

is only one, involves another question. How are you to subdivide these

magisterial districts for the purpose of allocating members? Some will

have two, some three, some a number of members; and on what system

will you allocate the members to these divisions? We have considered

the question of proportional representation. It is the only perfect

way in which minorities of every shade and view and interest can

receive effective representation. And Lord Elgin was careful to

instruct the Committee as a special point to inquire into the

possibility of adopting the system of proportional representation. The

Committee examined many witnesses, and went most thoroughly into this

question. They, however, advise us that there is absolutely no support

for such a proposal in the Transvaal, and that its adoption--I will

not say its imposition--would be unpopular and incomprehensible

throughout the country. If a scientific or proportional representation

cannot be adopted, then I say unhesitatingly that the next best way of

protecting minorities is to go straight for single-member seats. Some

of us have experience of double-barrelled seats in this country; there

used to be several three-barrelled seats. But I am convinced that if

either of those two systems had been applied to the electoral

divisions of the Transvaal, it would only have led to the swamping of

one or two local minorities which with single-member divisions would

have returned just that very class of moderate, independent, Dutch or

British Members whom we particularly desire to see represented in the

new Assembly. Therefore, with the desire of not extinguishing these

local minorities, his Majesty's Government have decided that

single-member constituencies, or man against man, shall be the rule in

the Transvaal. But I should add that the subdivision of these

electoral districts into their respective constituencies will not

proceed upon hard mathematical lines, but that they will be grouped

together in accordance with the existing field cornetcies of which

they are composed, as that will involve as little change as possible

in the ideas of the rural population and in the existing boundaries.

The Committee will realise that this is a question with an elusive

climax. It is like going up a mountain. Each successive peak appears

in turn the summit, and yet there is always another pinnacle beyond.

We have now settled that the Members are to be allotted to

single-member constituencies based on the old magisterial districts

according to the adult male residents there. But how are we to apply

that principle? How are we to find out how many adult males there are

in each of the districts of the country, and so to find the quota of

electors or proper number of Members for each division? The proverbial

three alternatives present themselves. We might take the Lyttelton

voters' list revised and supplemented. We might make a new voters'

list, or we might take the census of 1904.

* * * * *

Lord Selborne has pointed out to us that it might take just as long a

time to revise the Lyttelton voters' list as to make a new voters'

list, which would occupy seven months. So that, with the necessary

interval for the arrangements for election, ten months would elapse

before the Transvaal would be able to possess responsible

institutions. I think we shall have the assent of all South African

parties in our desire to avoid that delay. I am sorry that so much

delay has already taken place. It was necessary that the Cabinet

should secure complete information. But to keep a country seething on

the verge of an exciting general election is very prejudicial to

trade. It increases agitation and impedes the healthy process of

development. We are bound to terminate the uncertainty at the earliest

possible moment; and we have therefore determined to adopt the census

of 1904.

Let me ask the Committee now to examine the sixteen magisterial

districts. I think it is necessary to do so before allocating the

Members amongst them. In all the discussions in South Africa these

have been divided into three areas--the Witwatersrand, Pretoria, and

the "Rest of the Transvaal." Pretoria is the metropolis of the

Transvaal. It has a very independent public opinion of its own; it is

strongly British, and it is rapidly increasing. It is believed that

Pretoria will return three, four, or five Members of the Responsible

Party, which is the moderate British Party, and is independent of and

detached from the Progressive Association. The "Rest of the Transvaal"

consists of the old constituencies who sent Boer Members to the old

Legislature. There will, however, be one or two seats which may be won

by Progressive or Responsible British candidates, but in general "The

rest of the country" will return a compact body of members of Het

Volk.

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