'The existence of immense . . . combinations . . . formed for the purpose of limiting production and fixing prices is inconsistent with the fair field which ought to be open to every independent activity. Legitimate strife in business should not be superseded by an enforced concession to the demand of combinations that have power to destroy. Nor should the people . . . lose the benefit from the cheapness which usually results from wholesome competitions. These . . . combinations frequently constitute conspiracies against the interest of the people 1.

'When we proclaim that the necessity for revenues to support the Government furnishes the only justification for taxing the people, we announce a truth so plain that its denial would seem to indicate the extent to which judgement may be influenced by familiarity with the perversion of taxing power. When we seek to reinstate self-confidence. by discrediting abject dependence on governmental favours, we strive to stimulate those elements of the American character which support the hope of American achievement.'

SIR WILLIAM HARCOURT.

I have already pointed to the growth of expenditure in the last seven years, and I have nothing to say on the subject of that expenditure. I am not going to enter into any controversy with reference to it, or to condemn it, but this, at least, I may say that those who have authorized, encouraged, and insisted upon it-I am speaking now entirely without distinction of party, for it has not been one party alone—are bound to provide the means of defraying it. I know there was once in this country an economical party (laughter); but there is no economical party now, and I believe that the Prime Minister and myself are the only survivors of it (laughter). There has been attributed to me a saying

1 Mr. Cleveland here refers to the great trusts and monopolies which have ruled the markets for some years past; but his words are equally applicable to combinations in this country

which have attempted and, to some extent, succeeded in forcing the Government to conform to their demands.

I do not know that there are no economists

that every one is a Socialist now. I ever said it; but this I will say now. Financial economy has gone the way of political economy (ironical cheers). A chancellor of the exchequer preaching against extravagance is nowadays a voice crying in the wilderness. We hear much of the stinginess of the treasury; I only wish the treasury had power to be more stingy than it is. A chancellor of the exchequer may hold up his hands in despair, like the old steward in The Rake's Progress; the money is spent, or, as the French say, the wine is drawn, and you must pay for it. After all, the causes of this are not far to seek. Economy was possible, and even popular, in former days. Governments were compelled to be economical, for the people demanded it, and the House of Commons supported it. Sir Robert Peel was an economical minister. At that time the country was poor, capital was deficient, trade was bad, the weight of our debt was crushing, and taxation relating to the resources of the people was enormously heavy.

The people were obliged to attend to the pence because they had no pounds to look after. Now the nation has grown rich, taxation, compared to the resources of all classes, is relatively light, and probably, in proportion to its wealth, this is the most lightly taxed country in Europe. Therefore, it is not unnatural that when any one comes forward with a proposal for increased expenditure he should be received as if he were the discoverer of a new pleasure (laughter). Private members with large hearts and small responsibilities take up favourite schemes for some favoured class of the community. They demand higher wages and greater pensions, and they desire that the State should undertake new duties, fresh responsibilities and larger expenditure. We create new empires here, and annex fresh territories there; we are anxious to reduce postal charges all over the world, to relieve more rates, to undertake lifeboats, &c. For these things the country is well agitated, and interests are well organized, the House of Commons is well canvassed, and one afternoon, in the gaiety of our hearts, we pass a resolution unanimously

which is to cost a few millions when it comes into operation a few years hence. This is the cause of the increase of public expenditure.

'I pointed out the other night, with reference to a motion of this kind, that it meant £25,000,000; but the House of Commons said, Only £25,000,000! How cheap! Let us have it at once (laughter and cheers). I do not condemn these things—they are all excellent in their way, there is a great deal to be said for them, and very little to be said against them; but the time comes, and it has come, when you must pay for them.... I belong myself to the old school, and I would gladly see a good deal less spent, for, in fact, a good deal of it is wasted (cheers); and, if I might reverse the old saying, I would say that those who call the tune must pay the piper. The wealth of this country has increased, and is increasing, year by year. You may find yourselves in temporary straits, but there is no occasion for apprehension and disquiet. The condition of your affairs is sound, solid and prosperous. The resources of the country are ample, and they are always at command.

'He (Mr. Goschen) then proceeded to show that while public attention was fixed on the great staple industries of the country-the cotton, coal and iron industries—there is a mighty trade going on, there is wealth being rolled up-wealth of which no public statistics exist, but which is nevertheless accumulating and adding to the capital of the country. He pointed out that the profits of the cotton trade were less than the aggregate profits of the medical profession, and that the profits of the coal mines were still less than those of the lawyers (laughter).'-(SIR WILLIAM HARCOURT, Budget Speech, April 25, 1893.)

MR. ARNOLD MORLEY.

'The market rate of wages referred to was not a standard a government, or any other large employers of labour, ought to be guided by, and, he thought, the Post Office ought to set an example to other large employers of labour.'—(Reply to Deputation of the Unemployed. December 2, 1892.)

SIR JOHN GORST.

'The principle he was anxious to lay down was, that, whenever the public was the employer of labour, and the workers were working either for the general public or for the public in any division of the United Kingdom, the employers should so regulate all the conditions of the employment as to make themselves model employers of labour. . . . The whole matter was in the hands of a Government department, who were under no obligation to make any profit out of the work which they turned out; who had no foreign competition to rival them, and who were only under the necessity of seeing that the work was good. It really did not much matter what it cost.'-(Debate on Labour in Dockyards, March 6, 1893.)

MR. CAMPBELL-BANNERMAN.

'With regard to wages, the Government did not shut their eyes to the change that had come over the public mind in this matter. A very few years ago it would probably have been regarded on both sides as a perfectly sufficient answer if he had said, "We get men enough at the wages we offer. If our doors are open, there is a constant stream of men coming in; and, if they are shut, there is a mob outside wishing to come in; therefore, why in the name of common sense should we wish to raise our wages?" He did not use that answer, he did not believe in it.'-(Debate on Labour in Dockyards, March 6, 1893.)

MR. JOHN BURNS.

'No better method of attempting to solve the question of the unemployed, which grew more serious every year, could be found in large districts where Government establishments existed than for systematic overtime to be abolished, a week of forty-eight hours established, and men from the ranks of the unemployed engaged in the arsenals and dockyards on reproductive work,' &c.-(Debate on Labour in Dockyards, March 6, 1893-)

These quotations show how wide apart the lines of divergence already are; and I propose to consider, in the first place, how the United States will be affected by this new departure. Briefly stated, Mr. Cleveland declares that the government of the country must be carried on with extreme thrift and frugality, and that all taxation beyond what is actually required for revenue is alike impolitic and unjust. Protection, therefore, will gradually disappear; and those who believe that this step will give us a monopoly of the American markets, will, if they are right, see their desire consummated. I am of opinion, however—and I write with a long experience of America-that they will be grievously disappointed, and that the very reverse will be the case. Americans are at least as good manufacturers as we are; and, so far from protection having aided in the development of their industries, its effect has been to restrict them. I am not going to discuss here whether protection may not, in the first instance, have helped to establish these industries; that is now beside the question; for all the most important of them are now firmly established, and are ready for any further development. Many may feel inclined to dispute my assertion that Americans are as apt manufacturers as ourselves; but, if they will remember that the first consequence of protection is to raise the cost of production, and that of free trade to lower it, and that, notwithstanding this, there are already many articles in the production of which the United States not only compete with us, but in which we are quite unable to compete with them, they will find it difficult to explain this fact on any other hypothesis.

It is interesting to examine the cause of this exceptional position of some articles, as it has a very direct bearing on the future of industry in the United States. It will be found that when a very large home demand for any article has existed in America, a demand as great as, or perhaps greater than, the whole of the home and export demand of any other country, the manufacture of that article has been in the end confined to America, the extra cost of production there being met by improvements in labour-saving