At the time, however, it seemed possible that this affray, coupled with the dispute over the Amending Bill, might bring about complications delaying the establishment of Home Rule; and an enthusiastic demonstration of Liberals, Labour men, and Nationalists, held at the London Opera House on July 29, demanded that the Government should complete their legislative programme and thus secure the effective operation of the Parliament Act. Sir James H. Dalziel (Kirkcaldy) presided; Mr. Neil Primrose (Cambs, Wisbech), Mr. Rowlands (Dartford), and Mr. Devlin (Belfast, W.) were among the speakers, and there were 50,000 applications for admission. Incidentally the Chairman mentioned—what soon became obvious—the very grave effect produced on the international situation by the reports that civil war was impending in Ireland.

In the interval before the resumption of the debate on the Amending Bill, the House dealt, more briefly than usual, with the Colonial Office Vote and the Education Vote (July 28) as well as with other non-contentious subjects needing no special notice here. On the Colonial Office Vote the points raised were dealt with by the Colonial Secretary in his reply as follows: He must decline to give information as to future policy in Somaliland which would be useful to the Mullah; but they were getting 450 camel constabulary and 400 of the Indian contingent, of whom 150 would be mounted and would strengthen the camel corps. Burao would be occupied by the new commandant early in September, and they would then enable the friendlies to reoccupy their grazing at the mouth of the Ain Valley. He would not decrease the existing native reserve lands in East Africa. As to Tasmania, he had only laid down the rules generally regarded as binding on a Governor, and Sir W. Ellison-Macartney's appointment was based on his work as a Civil Servant and irrespective of politics. The incident, he thought, was closed. The South African Native Lands Act was the outcome of a commission appointed by Viscount Milner, and was temporary; Parliament ought not to intervene except on proof of gross injustice to natives, and there had been none. The Malaya Dreadnought was not a tribute, but a voluntary gift from allies; the taxation of the Malay people was practically nil. He gave encouraging figures as to the decreasing consumption of opium in the British possessions in the Far East, but it was ominous that large quantities of cocaine and morphia had been seized. As to the Ceylon excise, the Government proposed to put up an experimental distillery in each district to get rid of the existing distilleries, but they might be directed by private enterprise, though not at the cost of creating vested interests. The supposed increase in the consumption of arrack was due to the gradual cessation of illicit drinking. He suspended his decision as to the Chartered Company's Charter pending consultation with Lord Gladstone.—The Vote was agreed to.

On the Education Vote, after criticisms and comments had been passed on various points in the Board's policy by several members, the President of the Board of Education paid a tribute to the memory of Sir William Anson, and bore testimony to the efficiency of the staff of the Department. Among other matters of interest, he touched on school hygiene, mentioning that 317 education authorities had established medical inspection, in which 1097 medical men, eighty-four women, and 300 specialists were engaged. Half the children needed dental treatment, and the expenditure on the medical service had increased from 47,000l. in 1912-13 to 175,000l. in 1914-15. For mental and physical defectives there were 365 schools, and the grants were increased. They had 945 places in open-air schools for ailing children, but 500,000 children needed them. Provision was made for feeding 358,000 children, but they hoped to be able to contribute half the cost to local authorities by a supplementary grant of 77,000l. Physical training was invariably part of the course, and England was behind no nation in providing for it. He mentioned also schools for mothers, play-grounds, and a projected grant in 1915-16 of 50,000l. to aid local authorities to deal with epidemics. There was no evidence that the teaching of the three R's had generally deteriorated; the children were more alert and responsive, and happier at school than ever. The wastage of teachers could only be met by making the career more attractive. Lodgings for women teachers were a difficulty, and hostels for teachers were the only solution. The State would find two-fifths of the cost. Children left school just when a good teacher could do most for them, but he thought the prosperity of the country from the point of view of education was assured.

Amid all the prevalent excitement, little attention could be paid to the Report of the Welsh Land Inquiry Committee (July 27). This body, of which Sir A. Mond (L., Swansea) was chairman, had been appointed at the request of the Chancellor of the Exchequer to inquire into and report on the special circumstances of Wales in respect to land tenure and agricultural conditions, and the Report, which claimed, fairly enough, to be judicial and dispassionate, contained some 350 pages of documents and comment, leading up to the following main conclusions. Legislation was urgently needed in the interests of agriculture; the crops, except in roots, were much poorer than in England, partly from the inferior productiveness of the soil, but largely through insecurity of tenure, and also because of high rents, fear that rent would be charged on tenants' improvements, inadequate compensation, and onerous conditions of tenants' agreements. The Committee recommended absolute fixity of tenure, and the establishment of a Land Court with power to fix fair rents and settle reasonable conditions of tenancy. The rural housing conditions were deplorable; there were often not enough cottages, and in no district was there an ample supply of suitable cottages large enough for an average family. The effect was bad for health and morals. The administration of the Small Holdings and Allotments Acts was unsatisfactory and varied greatly in different counties, and the machinery was too cumbersome. At the end of 1912, 1,100 approved applicants were still waiting for land.

The Amending Bill was to be taken on July 30; and its prospects had been perhaps improved by the remarkable pamphlet published a week earlier by Sir Horace Plunkett, announcing his conversion to Home Rule (post, Chap. VI.). But all domestic difficulties were rapidly being obscured and effaced by the rapid gathering of war-clouds in Central Europe. The news of the Dublin shooting was published the same day as that of the rejection by Austria-Hungary of the Serbian reply to her ultimatum; and between question time in the House of Commons and the excited debate on the affray later on that day (July 27) party strife was visibly suspended in both Houses, while substantially identical statements on the European situation were made respectively by Sir Edward Grey and the Marquess of Crewe. The former, replying to a question by the leader of the Opposition, stated that, after hearing of the Austro-Serbian rupture, he had asked the French, German and Italian Governments, through the respective British Ambassadors in their capitals, if their Ambassadors might meet in Conference in London; he had also asked the Austro-Hungarian and Serbian Governments to suspend operations meanwhile. It appeared next day that Italy and France accepted at once; but Germany refused the British invitation, alleging that negotiations between the several Governments would be preferable; Austria-Hungary declared war on Serbia and seized Serb vessels at Orsova; and Russia prepared (July 28) to mobilise fourteen Army Corps. Under these circumstances The Times (July 29) urged British parties to "close ranks" and suspend their strife, that the Government might devote all its energies to limiting the area of the war. Sir Edward Grey, it declared, was indispensable as Foreign Minister; and the Ulster question might be provisionally settled by the exclusion of Fermanagh and Tyrone from the Home Rule area. That day, however, the situation became graver; seven Stock Exchange firms failed; and the Prime Minister could only tell the Commons that the Government were doing their best to "circumscribe the area of possible conflict." But on the day following (July 31) he announced that the Amending Bill must be postponed. In an impressive speech to a profoundly attentive House, he stated that the issues of peace and war were hanging in the balance, and with them the risk of a catastrophe of which it was impossible to measure either the dimensions or the effects. It was, therefore, of vital importance in the interest of the whole world, that Great Britain, who had no interests directly at stake, should present a united front and be able to speak and act with the authority of an undivided nation. Hence they would deal with necessary non-controversial business. Mr. Bonar Law agreed, saying that it should be made clear that British domestic differences did not prevent members from presenting a united front in the councils of the world; and that he spoke not only for the Unionists, but for the Ulstermen.

Next day, however (Aug. 1), the situation became worse. German troops were preparing to invade France; Russia had proclaimed a general mobilisation; martial law was consequently proclaimed in Germany; in Great Britain steps were taken to guard magazines, railway bridges and tunnels, and dockyards; the booms defending British naval ports were placed in position; and telegrams from the Dominions exhibited their eagerness to aid the mother country by sending troops. In London, the Stock Exchange, an hour after its opening, was closed sine die; business was active at Lloyd's in insurances against war risks; the Cabinet met in the morning, and the Prime Minister in the afternoon was received by the King. Ministers cancelled their week-end engagements, and, just before the House rose, the Prime Minister stated that the news from Germany indicated that she would follow Russia in mobilisation. Next day the bank rate was advanced to 10 per cent.—its highest point since the Overend-Gurney crisis in May, 1866; the Cabinet met twice, and a conference was held between some of its members, including the Chancellor of the Exchequer, on the financial situation; and the King, as a last effort to preserve peace, sent a direct personal telegram to the Tsar, offering mediation, which arrived, however, after Germany had declared war on Russia.

Unwonted and varied excitement characterised Sunday, August 2. Throughout the country prayers for the preservation of peace were offered in the churches, in accordance with a suggestion made some days earlier by the Archbishops, and also in Nonconformist places of worship. In Trafalgar Square a "war protest meeting" organised by Mr. Hyndman, Mr. Ben Tillett, Mr. Keir Hardie, Mr. Barnes, M.P., and other prominent representatives of Socialism or Labour, passed a resolution calling on the Government to take every step to secure peace, and on the workers of the world to use their industrial and political power to avert war; but it was interrupted by a large dissentient element, which, however, ultimately seceded peacefully and held a "patriotic" meeting at the Admiralty Arch. During the day the Cabinet met twice, and frequent informal conferences were held between Ministers; and it was stated that the divisions of opinion previously existing among them disappeared in the course of the day almost entirely. The King held a Council at 4.30 P.M., and it was announced, first, that the Government had taken control of all wireless telegraphy, next that a "moratorium" of a month was established for certain bills of exchange; and the Admiralty called out the Naval Reserves, including naval and marine pensioners under the age of fifty-five, and the Royal Volunteer Reserve. On the announcement of this last step, through the medium of special late Sunday editions of various newspapers, a crowd of some 6,000 people marched up the Mall to Buckingham Palace, where it sang the national anthems of Great Britain and France. The King and Queen were called for, and came out to acknowledge the greetings of their enthusiastic subjects.

Next morning London awoke to a new kind of Bank Holiday. The morning papers announced the Germans' violation of the neutrality of Luxemburg and their invasion of France and their ultimatum to Belgium; many of the railway excursion arrangements had perforce been cancelled; and the streets were thronged by disappointed excursionists, reinforced by others who had come in from the country for further news. Miniature British and French flags found a ready sale in the streets; special editions were issued of the evening papers; crowds gathered outside Buckingham Palace and Whitehall, impartially cheering Ministers and Unionist leaders. In the City a conference of bankers and merchants invited the Government to extend the Bank Holiday for three days by proclamation; the House of Lords had been hastily summoned; but interest centred in the Commons.

Here, indeed, as in the country, the attitude of a large section of the Liberals was still uncertain. Many of them condemned all wars, or almost all, as criminal; many more held that the Foreign Office was prejudiced against Germany, and abhorred the notion of fighting to preserve the balance of power in Europe, or to strengthen Russia, reputed a far less civilised Power than Germany, and the historic foe of the British Empire in India. Protests against any departure by Great Britain from neutrality were specially noticeable in the Manchester Guardian and the Daily News; and manifestoes in a similar sense were issued by various groups of important personages; the Bishops of Lincoln and Hereford, the British Neutrality Committee, and others. A group of learned men, chiefly belonging to Cambridge University, declared that war against Germany in the interest of Russia and Servia would be "a sin against civilisation"; and the Labour Leader appealed to "the organised workers" to demonstrate everywhere that the war must be stopped. But these views were greatly modified, not only by the news of German action in Luxemburg and Belgium, but by a statement published on the Monday afternoon with the authority of the German Embassy, intimating that, if Great Britain remained neutral, Germany would undertake not to attack France in the north by sea, nor to make warlike use of the Dutch or Belgian coasts. Thus, it was contended, Great Britain, as a neutral, could aid France as well as by going to war. This offer was felt to be ridiculous; and the conversion of the vast majority of those Liberals who were still adverse to war was completed by the speech delivered in the House of Commons by Sir Edward Grey. It was described by Lord Lansdowne as "of rare courage," and The Times declared that it would remain memorable in the history of the world.

The centre of interest lay in the Commons, and Sir Edward Grey's speech practically served for both Houses. All questions to Ministers were postponed, and the Chancellor of the Exchequer introduced, without notice, a Postponement of Payments Bill, supplementing the Moratorium proclamation (p. [169]) by empowering the Government to declare a general moratorium on occasion. By agreement, it was passed through all its stages at once; indeed, but for a protest from Mr. McCallum Scott (L., Glasgow, Bridgeton) it would not even have been read. The Bank holiday was prolonged for three days; but the stoppage was not to involve a general suspension of work and wages.