Great Speech on Free Trade
BY THE
PRESIDENT of the BOARD OF TRADE,Reprinted from the Liverpool Daily Post and Mercury, of 25th December, 1905.
MR. LLOYD GEORGE ON FREE TRADE.
MAGNIFICENT SPEECH.
SMASHING ARGUMENTS.
THE SOUTH AFRICAN WAR.
A STRONG INDICTMENT.
The old Tabernacle Chapel at Bangor rang last night for an hour with enthusiastically sung and oft-repented renderings of topical political songs pending the arrival there of the President of the Board of Trade, the Right Hon. D. Lloyd George, M.P.'.
Mr. Lloyd George, opening in Welsh, said that he had just donned the livery of the King (cheers, and Mr. Stephen Jones, a tailor, cried: 'How does it fit ?"). Mr. George instantly replied. shaking with laughter, "You see how the handicraft comes out," and the crowd roared again. Proceeding, Mr. George said:- Take the question of Free Trade. I can conceive of no question more important for the country to decide rightly, and let me tell you that democracy is on its trial when it judges a question like Free Trade, for the desire to hit hack is natural when you are hit, and that sentiment, narrow as it is, is in favour of protection. To the superficial mind the argument seems conclusive. The Tariff Reformers say France and Germany will not allow your goods into their country without taxing them; why should you allow their goods into your country without taxing them? It is very simple, and that is why most of the simple minds are on the other side (laughter). Therefore, when you are dealing with a democracy which has not time to read the papers, let alone books on the subject, it is good test of the shrewdness, the commonsense, and the reliability of that democracy to decide which way it is going. Why did I say
IT WAS A SUPERFICIAL ARGUMENT?
There are two departments of the Government specially affected by trade, first the Board of Trade and second the Treasury. The income of the land depends entirely upon the prosperity of its trade, and the Board of Trade has to consider the subject in all its details. We have had during the last twenty years four Presidents of the Board of Trade, all of them men of ability. It is very remarkable that when Mr. Chamberlain raised this controversy the whole four of them declared themselves Free Traders (loud cheers). Do you really think that if these men knew that Protection would benefit the country they would not at once have jumped at it? But these able men, who knew all about the subject, came to the conclusion that Free Trade was the best for the commerce of this country (cheers). Take the Treasury: During the last twenty years there have been four Chancellors of the Exchequer, the last was Mr. Austen Chamberlain (laughter). Well, I don't blame any man for sticking to his father (laughter), but the considerations that made him a Protectionist are not fiscal but filial (loud laughter and cheers). So, if you do not mind, I will rule him out for the moment (laughter). I am not making any reflection on his ability, but he has got a bias of kinship which has upset the balance of his judgment (laughter). But, take the other three Chancellors. Mr. Chamberlain says "you want money to run the country for old age pcensioners" (laughter). He says, "Why do you tax yourselves for this purpose; why don't you tax the foreigner?" "Capital idea," says everybody - that is every shallow man - in the country. "Why didn't we think of that before (laughter)? Let's tax France and Germany and the Yankees" (laughter); and all these simple people say "what a great man, Chamberlain is" (laughter). Gladstone missed this solution (laughter). Sir Robert Peel never thought of it (laughter). Bright and Cobden passed it by. But Chamberlain said
"LET THERE BE LIGHT,"
and at once by the simple expedient of taxing the Germans there
was plenty of money; and when the income tax collector comes round you refer
him to Germany (great laughter). And I believe there are men in these Carnarvon
Boroughs simple enough - at least there are imported men simple enough (laughter)
- to believe that, and they are simple enough to believe that they can persuade
you to believe it (laughter). You can depend upon it that a Chancellor of the
Exchequer likes to lighten taxation and not increase it, and if the gentlemen
I have mentioned thought they could do so by taxing the foreigner, would they
have hesitated? Not at all. But they knew it was the simple, shallow talk of
unthinking men. It cannot be done. That is the argument from authority. Now,
the Prime Minister, the late Prime Minister (laughter), has been arguing the
subject. He says he is not a Protectionist and belongs to the Free Trade section
of the party, and is against a general tariff. I should like to know, and you
should insist upon knowing, where he really stands, because if a blunder is
made in this matter it will be a very serious thing and you ought to know from
every candidate for Parliament what he will do in this matter if returned (cheers).
We have got, I believe, a Protectionist candidate for these boroughs. I should
like to know whether he, like Mr. Balfour, belongs to the Free Trade section
of the party or to the Chamberlain section (a Voice: "He knows nothing at all
about it," and laughter). I think that is very likely (more laughter). But let
me put the argument from experience before you.. Every country in Europe is
Protectionist except ours. I am not going to conceal a single fact. We are alone
in the world, standing by the flag of Free Trade (loud cheers). Alone, and there
is nothing greater to the history of Britain than that one small country, just
the size of a single American State, a little island in the seas, stands alone
by the flag, defending it against a world armed with tariffs (load cheers).
It is still greater that, standing alone, it beats them all (tremendous cheering).
That gives me pride in the British Empire (cheers). But I have no pride in it
but shame when I see it trampling upon the weak, grabbing property belonging
to others; and I will say that, though you turn me out (tremendous cheering).
But when I see my Country doing a deed like that, standing alone for freedom,
a deed which will redound to its honour, it may be thousands of years hence
- who knows? - it may be the greatest deed that will be recorded to its honour,
that it stood alone for freedom, and by its example brought peace in the human
race (loud cheers). But, like most British virtues, this adherence alone against
the world to Free Trade has had substantial rewards. What are they? Take all
the countries of Europe. If there is a tariff reformer here, will he name a
country in Europe that is doing better than this old, effete, worn out, ruined
country of ours! I do not include new countries, because the conditions are
different, for there the inhabitants get the land for nothing, they have no
rent to pay, they are free from rates even, because the land belongs to the
people; and, therefore, it is no use comparing them with the old countries.
But name me, in Europe, which is doing better than ours. If any tariff reformer
here does that, then I have another question for him (laughter).
A pause, during which no one spoke; after which the audience laughed and cheered.
I will ask that question again (continued Mr. George), for the tariff reformers
appear to be very shy (laughter), and I will ask it in every borough in the
constituency (cheers). Well, take England. In this Free Trade country we pay
better wages to our workmen, the hours of labour are shorter,
FOOD IS CHEAPER,
raiment is cheaper, the shelter of our homes is cheaper,
there is greater freedom for the working man, than in any Protectionist country
in Europe (loud cheers). I will tell you what I will do. If there are tariff
reformers here, as I said before, they are shy, and I will give them time to
think, and I will put this to them - I will put this challenge to them - since
challenges are flying about (tremendous and prolonged cheering). I will say
this, that in England, the Free Trade country, wages are better, the hours of
labour shorter - be sure and follow what I am saying - what I say is: Food is
cheaper, raiment is cheaper, and rent is cheaper than in any Protectionist country
in Europe. And I will tell you what I will do. I will not ask you to accept
that from me. I am willing that the question shall be put either to the late
Prime Minister or Lord Lansdowne (a Voice: "Chamberlain," and laughter).
Mr. George - Well, I think I will draw the line there (laughter);
but any President of the Board of Trade during the last twenty years, or to
any gentleman who has not taken a leading part in advocating the other side.
I am willing the question should be put to any of these, and I will abide by
the answer (cheers). What better test do you want than that? Let us proceed
a step further. They say - But stop a minute. You have got unemployment in this
country. So you have; but so they have in every country. Take a highly Protectionist
country like France, where the tariffs are high. The unemployment is greater
there than here. It is almost
IMPOSSIBLE TO PREVENT UNEMPLOYMENT.
Business is as difficult to understand and appreciate in its fluctuations as the weather. It is almost as difficult to predict its course. All you know is that it is like the tide - one moment it surges up and seems as if it would cover the aend with wealth and prosperity; the next moment it recedes, leaving a high and vast muddy bank. You can hardly tell why. Well, when things are going with a swing there is more employment than men, and people work overtime and make money. When things go badly there is less employment than hands waiting for it. These things you cannot possibly prevent; at least, no one has yet suggested a means of preventing them. The only thing you can do is to mitigate the distressful consequences or provide against them, and the business of a sensible Government is not to try and regulate matters by empirical methods, but to provide against unemployment when it comes. I know a great deal has been made here of the state of the slate trade. I would not object to that argument being used if the whole truth were told. There is no worse form of falsehood than the withholding of a material fact. From what has been said you might imagine that the present
DEPRESSION IN THE SLATE TRADE
is due to the fact that foreign slates are coming to this country.
The real fact is that it is due to the depression in the building trade in the
country. I have gone into the matter very carefully with skilled officials,
and I may tell you there are fewer foreign slates coming into this country this
year than last year by a very considerable quantity (a Voice: "Say that in Welsh").
Having repeated his statement in Welsh, Mr. George proceeded: - On the other
hand, looking at the quantity of timber imported into this country, I find there
is this year less material imported into this country during the first nine
months by over one million tons than in the previous year. Why? because the
building trade is depressed - not the building trade abroad. It is not that
we are extracting fewer slates, but the building trade at home is depressed.
Why do you have this depression? You can't spend
&163;250,000,000 ON GUNPOWDER
(loud cheers) and not pay for it. Somebody has got to pay the
price. The people who earned, the people I warned - well, I never like to say
"It told you so" (a Voice, "But you did").
Mr. George. - Did I really? (laughter). It was not the people at the head of
affairs, who were getting the glory and obtaining the decorations, the people
who were cheered by huge crowds as models of patriotism, who were the men who
would have to pay. I know the people who will have to pay, for whom I am most
concerned. They are the people who had to work for their daily bread, and who
were deluded by these great patriots (cheers). Do you knew what that job cost
you here in Bangor? £80,000 to begin with, out of that there is £5,000 to pay
by Bangor alone. What you could have done with that! If you had £80,000 to work
your College! (loud cheers). What have you for your College when your £80,000
has been spent on building compounds for slaves in South Africa (loud cries
of "Shame")? Eighty thousand pounds! More than that. The taxation which you
in Bangor alone have to bear as the result of the extravagance of the late Government
is £13,000 per annum. You are paying out of Bangor, per annum, £13,000 more
then you did when the Liberal Government went out of power in 1895. You cannott
eat your cake and have it. That is the cause of unemployment. I am a lawyer
(laughter), and you forgave me that sixteen years ago (cheers). Well, have you
ever seen an estate in Chancery? The gates are not painted every year, the buildings
are not in the best state of repair. You will not find the lawns cleared every
morning of fallen leaves, and you will have grass-grown instead of gravelled
paths. There is a dissipated look about the place. Why? The produce of that
estate is squandered in litigation instead of being spent in its upkeep. What
did you do with £250,000,000?
YOU PUT THE EMPIRE IN CHANCERY.
That is why there is unemployment. The money is not there to keep the Empire spick and span (lead cheers). It is not there to keep up manufactures and industries. All that money would have gone into trade. Ask any man in the City of London. I am not saying that the City of London has had the blackest eye in the kingdom, although I am a lawyer there, and am hit as hard as anybody. I am willing to eat bread and water to see these stockjobbers doing the same thing (loud cheers). They howled and yelled for slaughter, so that they could job upon it on the Exchange. Now they are paying the penalty. No great industrial concerns are being floated, no additional capital being required in order to develop concerns already going. Where has the money gone? Gone in luddite shells, in burning homes in Africa, in blackening the veldt, in slaughtering children. Do you really think that things like this can be done and not pay? That's why unemployment is come (great cheering). Half-rations for women and children! You ought to thank God every day of your lives that, at any rate, one voice was raised in Westminster in protest against it (cheers). At any rate, that wrong is not at your door, and I am glad that I, at any rate, was able to
SPRINKLE THE BLOOD ON THE LINTEL POSTS,
so that the destroying angel should pass you (cheers). You cant do these deeds of wrong without their coming home, and we are suffering - and I am sorry, though I predicted it - half-rations for women and children. They have crossed the veldt, they have settled in British homes. I am sorry for it. Let it be a lessen for the future for the people. That's why there is all this unemployment (cheers). But we are getting out of it (cheers). I am very glad to be able to tell you that. The reports of the Board are brighter every week (applause). Trade is improving. We are lifting out of the morass, and in time, especially with the advent of a fairly sane Government (laughter), things will be better. And what is happening this year? I should like those gentlemen who happen to be bitten with the theories of Protection to listen to this. What did Mr. Chamberlain say some years ago? 'You have reached the climax of prosperity 'nevermore,'" quoth this raven (laughter), and he croaked it at every door and window throughout the kingdom. "Nevermore! England's glory is departed! Ichabod!" (loud laughter). Not yet, so long as she sticks to sound principles of trade (loud cheers!) "Nevermore," quoth the raven (laughter). "We have nothing to do now but buy German goods" (loud laughter). Now, I have got here a very valuable document. It gives details of the business of this country. It is the report of the Board of Trade, and you will understand that there is not a ton of anything that comes into or goes out of this kingdom which does not pass under my hands now (great laughter and cheering), so that when Mr. Chamberlain makes such statements as I have referred to, he knows he is making them to one man, at any rate, who knows they are not true (laughter and cheers). Now, if any of you ever feel depressed about the condition of Great Britain, I have got a suggestion to make to you, and that is, that you should at once become monthly subscriber to the reports of the Board of Trade (laughter and cheers). You will be astonished to find to what a prosperous country you belong (laughter). And our prosperity is growing (cheers). Mr. Chamberlain said we should "never more" (" never more! ") do well. What's happened! This year, instead of going down we are simply rushing up. We have in the course of the present year increased our exports of British merchandise by an enormous sum of money. But
MR. CHAMBERLAIN WON'T HAVE IT
(laughter). In the course of eleven months we have increased by over £12,000,000! It is an enormous sum (Voice: "Imports or exports!"). I will give you both. I am glad of that question, and I may say I shall be glad to answer any others that may be asked. The increase in imports is £13,000,000 for eleven months. The increase of exports - that is, what we sell to other people - is £21,000,000 (tremendous and prolonged cheering). 'That's not bad (laughter). But I beg your pardon. The case is still better. The increase in imports is £28,000,000; the increase in exports is £35,000,000 (renewed cheers). Let me tell you another thing. Our increase in imports is an increase of raw material. We buy some wool, we haven't enough in this country, to make up the goods we want. We get it from elsewhere. Cotton, again. We had not enough raw cotton, so we are increasing the quantity, and we have also increased the quantity of food. And you will notice that when a man is very prosperous he generally increases his imports (laughter), and when he is not he increases his exports - the furniture begins to go (laughter) - and you can have no better test really of the prosperity of a man or of a nation than the fact of his increasing the imports to his own house. Let me give you one fact which
NO PROTECTIONIST WILL TELL YOU,
even if he knows it, The more prosperous a foreign country, the greater its imports. The imports of Germany are just leaping up since the war, and they are greater than their exports. Why? Because they have plenty of money to buy things with - after we have had our pick (loud laughter). We are the wealthiest country. Germany comes next. Italy is poor, and does not do so well. We have grown in the matter of imports because we have bought more food and some material. How have we grown in exports, which I do not think anyone has mentioned yet? Manufactured goods are divided into sixteen classes in the Board of Trade. During this year our exports have grown in every one of these sixteen classes (loud cheers). And this is the country that has been ruined by Free Trade! Well, let that sort of ruin go on (laughter and cheers). And let me tell you another thing. We talk as if we really were a very big country. Why? Because Free Trade has enabled us to give ourselves these airs (laughter). As a matter of fact, we are a very small country - just one thirtieth the size of the United States, and very small compared with Germany. Now, there are a great many things we cannot grow in this country. We cannot grew enough wheat, even if you put the highest tax imaginable on corn. We cannot grew cotton. We cannot get enough wool for our manufacturers. And here's a thing I want you to remember.
WE HAVE NOT GOT ENOUGH IRON ORE
in this country for our own manufacturers, nor enough timber. But we are getting it, and although we have got to go to the ends of the earth for it, we beat every country in the world in export trade. I will tell you more than that. We beat the two best countries put together (loud cheers). Let any Protectionist take the two best countries, and I will give him figures which show that in the sale of manufactured goods abroad we beat both of them put together (loud cheers). What of that? We get our iron ore from Spain and Sweden, we get our copper from Italy and the Cape, and we get our timber from Sweden, Norway, Russia, Canada, the United States. We have to seek the ends of the earth for materials for our workshops, and yet - iron from one land, copper from the other side of the earth, timber from as far as the hand of man can reach - and yet we build in this land a cheaper and a better ship than can be produced in any other land (loud cheers). "Oh yes, that's because we pay poorer wages," it is said. Do we? We pay
BETTER WAGES TO OUR SHIPPING ENGINEERS
than any country, and their hours of labour are shorter, and we beat the very countries where these materials are produced (cheers). I have seen the same thing about motor-cars (laughter). What is the story of the motor-car? I will tell you, We are a pretty slow people (laughter). At least some of us are (more laughter). We are very conservative about changing things (a Voice: "Hear, hear"), and when any country preduces a new thing we like to look at it, and we say, "Let these chaps experiment a bit; there is plenty of time" (laughter). And so we were beaten in electrical appliances and other things by the Americans and others, and we are beaten in motor-ecars, simply because we did not bother shout them. (laughter). We like to go slow; but when we start we just wipe up the best things (laughter). Now, some of these things were failures in America and Germany. We let them pay for those, and we just picked up the successes (laughter). What happens? We begin to pull up, to build; and we build enough for ourselves - and for them too, and the Americans have been obliged to come to this country in connection with their electrical enterprises because they can do them better here (cheers).
THAT IS THE WAY OF BRITAIN,
and this is what will happen to motor-cars. We could not make them; we bought them in France and Germany; But by degrees the Briton is coming up, and he makes a good job of it, and turns out a better machine, and gradually our exports are growing month by month, and the last month was the best of the lot in selling motor-cars abroad, and in every short time I predict we shall drive the others out of the market. That is what Free Trade does (loud cheers). We have not get corn here. We have to go to the ends of the earth for it, and yet corn is cheaper in this land that does not produce it. That is because we get the pick of their markets. That is Briton (loud cheers). And another thing about corn. They want us to close the gates to foreign corn. Do you realise what that means? They say we can get plenty from Canada in a few years time, but a man cannot wait six years for a loaf of bread. Let Mr. Chamberlain come to us ten years hence when he can supply us. But what if all your food came from Canada? But it does not. We get corm from Russia and the Argentine. And what is the result? A deficit in Canada is more than made up by abundant supplies from the other countries, and the price of corn hardly rises. Oh, yes; Heaven never blighted corn the harvest in Canada without providing corn in Egypt (cheers). And that is where Free Trade comes in. Every market pours its store here, and the very moment a blight destroys the harvest in Canada the farmers of the Argentine start at once to prepare to pour their crops into Britain. This is their market-the centre for all the good things of the world (great cheering). No; it is folly, it is wicked folly, on the part of men who know, to make a political gamble with
THE CUPBOARD OF THE POOR.
(cheers). If I thought it was better for people, Carnarvonshire people to have Protection, why should I not say so? I am not an iron manufacturer, and what's best for you is best for me. And why should I not tell this? Because, if I told you that, I should tell you that which every fact would tell you is wrong. Let me say to those of you who read novels (and everybody reads novels nowadays), don't buy another novel till you have read this (holding up Board of Trade report). It is the greatest romance I have ever read. It tells you of Britain's commerce and argosies in every sea. At the end is a list of all the ports in the world - everything that enters into every port throughout the world. It is a wonderful story. Shall I tell it to you (cheers)? The tonnage of the cargoes that entered the ports of all the world during the first eleven months of this year amounted to 82,000,000 tons. There is not a seaport in any country in the world which is not entered here. There is a little country called Britain - ruined - (great laughter), absolutely a wreck, because of
THE FOLLY OF MAN CALLED COBDEN
(laughter), with a prophet called John Bright (cheers), men who knew nothing at all about this matter (laughter). And this country has a few ships (laughter) and they trade occasionally, with foreign ports (more laughter). And out of the 82,000,000 of tons which all the ports of the world transact, how much do you think is carried into those ports and out of them by this remnant of a mercantile Empire! Fifty-five million tons (tremendous and prolonged cheering). If you have any doubt about Free Trade, take a trip anywhere, and I shall be surprised if you do not come home a staunch Free Trader. You will see nothing but these black ships of Great Britain. If high tariff walls are built to keep them out, they sail over them on the crests of the waves, ramming through breakwaters of imports with freedom at the prow and you can't stop them (cheers). There are other countries in the world. There is that great country, for instance, which is the great example for patriots of the Brummagem type-Germany (laughter.) Tariffs to protect it. That is not the country to allow other countries to trample upon it (laughter). That is the sort of patriot who pays twice so much for a thing as it is worth. That's the Chamberlain patriot (laughter). They have got ships and we are constantly being bored with stories about the tremendous growth of their shipping, and their menace to ours. No mere Britain dare contemplate this formidable adversary (laughter). Well, what proportion of this 82,000,000 tons which represented the world's shipping trade does Germany carry? Four millions (great laughter and cheers). Britain has 5 out of 8, Germany l out of 20 (renewed laughter and cheers). Take the United States. Haven't you heard of
THE GREAT SHIPPING COMBINE ?
That was going to wreck this decrepit old mercantile marina of
ours (laughter)? Well. I believe the Ship Building Trust is now in the hands
of the Official Receiver (great laughter), and I would not advise any one to
buy any of its shares. 'Well how much of the 82,000,000 tons do the United States
of America carry? It carries just half a million (laughter). This little Britain
of ours is 14 times better than Germany. How much better is it than the United
States of America? Now, be quick, some of you lightning calculators.
A Voice: 110 times.
Mr. George -Yes, 110 times better than the United States of America (loud cheers
and laughter), and by so much is Free Trade better than Protection (loud and
prolonged cheers). There is not a country at which the miserable ships of this
miserable country do not call. There is not a breeze that blows in any corner
of the globe that does not fill British sails; there in not a storm that breaks
out whose waves do not dash against British iron; no clime where you do not
see the British flag wave over British ships; from the Sunny isles of the Pacific
to the frozen shares of Labrador you will find British ships wherever you go.
Why? Because they have
FREEDOM AT THE PROW.
And what I say to you is this-as once your member, as your candidate now, and as your fellow-countryman-
At this word the whole of the great audience sprang to their feet, cheering frantically far several minutes and waving hats and handkerchiefs with indescribable enthusiasm, whilst Mr. George, astounded at the effect his words had produced, gazed straight before him at the frenzied crowd. When silence was restored and the audience had resumed their seats, Mr. George continued his fine peroration. I am concerned only for the honour of my native land, anxious only far this thing, at any raate, that whatever billows may sweep away the democracy in any other part of the country, it shall be said that in Wales, at any rate, there was enough foresight, enough clearness of vision to see through all the intricacies of this great argument and to stand by the great flag of freedom whoever else deserted it. Again the audience rose as the orator resumed his seat, altar speaking for an hour and a half, and for several minutes the old chapel rang with peal after peal of enthusiastic and almost frantic cheering.
VOTE FOR HERBERT LEWIS.
[Printed and published by Lee and & Nightingale, 15, North John Street, Liverpool.]
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