The vigorous and continued efforts of the Nationalist leaders to promote enlistment were unfortunately opposed by small and virulently hostile bodies of extremists—Sinn Fein (A.R., 1907, p. 266), the Irish Labour party, led by Mr. Larkin, and entirely separate from the Labour party in Great Britain, some of the original promoters of the Irish Volunteer movement (A.R., 1913, p. 267), and other small groups. These bodies published papers, among them Irish Freedom, Sinn Fein, the Irish Volunteer, and the Irish Worker, distributed them and quantities of leaflets gratuitously, posted up seditious placards, sent out emissaries to discourage recruiting, and started or spread a rumour that the Government intended to institute compulsory military service, which caused a considerable emigration of able-bodied men to America in the autumn from certain areas in the West. They attempted a counter-demonstration to the Premier's meeting in Dublin (p. [215]); and Sir Roger Casement, an Antrim man and a Liberal Home Ruler, who had honourably served Great Britain as a Consul and had exposed the atrocities on the Putumayo (A.R., 1912, p. 489; 1913, p. 493), was reported in November to have gone to Berlin via the United States, and to have obtained satisfactory assurances from the German Government, particularly with regard to the conduct that might be expected from a German invading force in Ireland. A prominent Irish American even stated that the Kaiser had promised Sir Roger that he would free Ireland if Germany were victorious. Sir Roger had previously tried to dissuade Irishmen from enlisting in the British Army. It was charitably suggested that, if these reports were true, his mental balance had suffered from his arduous and perilous work on the Putumayo. The extremists generally argued that the war was England's affair, that Ireland should be neutral, and that its Nationalists should co-operate with those of India and Egypt to exact favourable terms for themselves from Great Britain after her defeat, and join the Irish Volunteers against the day of reckoning.
It was suspected that this propaganda was supported by German money through Irish-American channels, and its real effect was probably not great. In parts of Ireland the "Sinn Feiners" had to retire from the Volunteer corps; many of the rural labourers who enlisted were found to be physically unfit, and it was stated that the maintenance of the Volunteers was hampered through the enlistment of their drill instructors, and that enlistment was further discouraged by the refusal of the War Office to sanction the presentation of Colours to Irish regiments or to encourage the formation of an Irish Brigade. The Government for some months ignored the seditious papers, taking the view that suppression would only advertise their efforts; but at the end of November their publishers were warned, with satisfactory results. The Labour party, however, held a street demonstration of protest in Dublin (Dec. 6) which only numbered about 600. It was overlooked by a body of the "citizen army" equipped with rifles, and stationed in "Liberty Hall," Mr. Larkin's headquarters; and it was stated that these would have been used against police interference. But the Government wisely took no notice. Mr. Larkin himself was in the United States collecting arms and money for his followers; and Professor Kuno Meyer, the eminent Keltic scholar, who had lived much in Wales and Ireland, and whose former friendships with Keltic students in the United Kingdom were repudiated demonstratively on both sides after the outbreak of war, stated in an interview that an Irish (probably Irish-American) regiment was being formed in Germany. But the whole of this seditious movement was probably of slight significance.
It was suggested that Sir Roger Casement's attitude might partly be due to disappointment at the abandonment of the projected call at Queenstown of the Hamburg-American steamers from Hamburg to Boston, which had been arranged, partly at his instance, early in the year, and was alleged to have been discouraged, for political reasons, by the British Government. More probably the reasons were commercial. The Cunard calls were definitely abandoned on February 28. In November a partial resumption was announced, but it was not kept up.
Legislation for Ireland was scanty, and a Land Purchase Bill was introduced, but withdrawn. A Labourers Act, however, was passed increasing the amount which could be expended under the Act of 1906, and an Intermediate Education Act, improving the position of teachers in the statutory schools and securing them some degree of fixity of tenure. The statistics of crime showed a considerable decline; but there were some cases of cattle-driving during the year.
The Home Rule controversy and the tension in Ulster did not seem appreciably to interfere with Irish industry and trade. It was stated, indeed, in the spring that the banks were restricting their advances to traders in view of a crisis, and that securities were at one time being transferred to London. But pauperism in March was less than in 1913 and much less than in 1910. In Belfast the huge shipbuilding output of 1913 was actually surpassed. Twenty-three vessels were launched aggregating 246,370 tons, as against twenty-four vessels of 131,916 tons in 1913. Messrs. Harland & Wolff's output from their Belfast and Clyde yards together amounted to 182,759 tons, the largest yet achieved in one year by any firm in the world. The six ships they launched at Belfast comprised the White Star liner Britannic of 50,000 tons, and five others, respectively for the Holland-Amerika, Red Star (Belgian), Aberdeen, Pacific Mail, and Royal Mail lines. Messrs. Workman, Clark & Co. built three Ellerman, two Royal Mail, two Shire and two other liners—in all nine vessels of 75,188 tons. At Londonderry four vessels were launched aggregating 12,225 tons. Among other trades, linen, previously depressed by general and local causes, was gravely interfered with by the stoppage through the war of Russian and Belgian material, and, in the case of white linens, by the loss of the German and Austrian markets; but in this trade, as in rope and twine, Government war orders were some compensation for losses in other ways. The minor industries of Belfast were vigorous. Foot-and-mouth disease again interfered occasionally with the cattle traffic to Great Britain.
SUPPLEMENTARY CHAPTER.
Finance and Trade in 1914.
From the observer's point of view the second half of 1914 was the most interesting period through which the City has passed. Other times had seemed difficult when the country was in the midst of labour crises, when foreign politics threatened, and when the prices of securities drifted steadily downwards; but the City has never before had to cope with so vast an upheaval as has been caused by the present conflagration in Europe. The City, at any rate, had not been organised to meet the consequences of the clash of arms, and when the blow fell not a market was unmoved. The machinery and functions of the money market and the banks, the Stock Exchange, Lloyd's and the insurance companies, the Baltic and the shipping lines, the Corn Exchange and the Commercial Sales Rooms had all to be adjusted to meet the unprecedented conditions. Just as the fighting forces had to be mobilised, so had the industrial organisations to be cleared for action, for finance and commerce have been and are destined to play a great part in the mighty struggle. All the British leaders of industry were animated by two objects only: how best to assist the nation to withstand the shock of war, and how to emerge victorious. It will be interesting to consider briefly how the different sections rose to the occasion.
The eventful year opened with money becoming easy and before the end of January the Bank of England minimum rate was 3 per cent. The decline in Bank rate was accompanied by a fall in the open discount market and early in February rates dropped to 1-11/16. Then began a renewal of a demand for gold from the Continent, and the discount rate rose to 2-15/16. In March the position was again easier and with the payments of the dividends in April the rate was as low as 1¾. In May the absorptions by Continental countries were on an abnormally large scale (though their significance was not fully appreciated) and the discount rate rose to 2-15/16 per cent. After the end of the half-year the rate was easier again, but it soon advanced steadily on the reports of strained relations between Austria and Serbia.
On July 28 the fear of war involving this country became definite, and on July 30 the Bank rate was raised from 3 to 4 per cent.; on July 31 it was advanced further to 8 per cent., and on the following day again to 10 per cent. The market discount rates were nominal at from 5¼ to 5½ per cent.
Consultations took place between the Government and financial leaders, and on Sunday, August 2, a proclamation was issued providing that all bills accepted before August 4 should not be payable on their due date but should be deferred for one month. The next day an Act was passed prolonging the Bank Holiday for three more days, and on August 6 a general Moratorium was declared. This extension of the Bank Holiday was considered desirable in order to give the banks and discount houses time to consider their position and to discuss the question of currency. As an emergency measure an issue of Treasury notes in denominations of 1l. and 10s. was offered to the banks up to 20 per cent. of their deposit and current accounts. For these notes interest at Bank rate had to be paid. The first issue was made on August 7, when the banks reopened. On that day large deposits were made by the public and there was little sign of any nervousness. At first the banks took nearly 13,000,000l. in notes, but the bulk of these were soon returned, and by the end of the year the amount held by them had been reduced to only 169,000l. Postal orders, without poundage, were also made legal tender, but were soon withdrawn from circulation. [The arrangement was formally terminated on February 4, 1915.] On August 7 the Bank rate was reduced to 6 per cent. and on the next day to 5 per cent., at which it remained.