It may not be out of place to reproduce in this connexion the text of two accounts dealing with the situation in England which Ballin wrote in the spring and in the summer of 1910 respectively, when he was staying in London, and which he submitted to the Kaiser for his information.
In the early part of 1910 he wrote:
“If I were to say that London was completely dominated by the election campaign, this would be a very mild way of characterizing the situation as it is. The whole population has been seized with a fit of madness. The City men who, until quite recently, had preserved an admirable calm, have now lost their heads altogether, and are the most ardent advocates of Tariff Reform. Every victory of a Conservative candidate is cheered by them to the echo. Under these circumstances, even in the City, the fear of war has grown. If we ask ourselves what it is that has brought about such an extraordinary change in the attitude of commonsense business people, we find that there are several reasons for it, viz. the general slump in business; the unfortunate policy cf Lloyd George with regard to the Irish Nationalists; the advances he made to the Labour Party, and the effects of his social legislation which are now felt with increasing seriousness.
“Business is bad in England, and up to now very little has been seen of the improvement which is so marked in Germany. It is but natural that, in view of the extended trade depression which has so far lasted more than two years, a people endowed with such business instincts as the British should feel favourably disposed towards a change of the country’s commercial policy. This disposition is further strengthened by the constant reiteration of the promise that it will be possible to provide the money needed for new warship construction and for the newly inaugurated social policy by means of the duties which the foreigner will be made to pay.
“It seems pretty certain that the present Government, in spite of the great election successes gained by the Conservative party, will still retain a slight majority if it can rely on the Nationalist vote. That is what I had always predicted. But the majority on which the Liberal Cabinet depends will doubtless be a very uncomfortable one to work with, and the opinion is general that it will hardly take more than a twelvemonth before another dissolution of Parliament will be necessary. It is said that the elections that will then be held will smash up the Liberal party altogether, but I consider this is an exaggeration. In this country everything depends on the state of business. If, in the course of the year, trade prospects brighten up again, and if everything becomes normal once more, the Tariff Reformers in the City will turn Free Traders again and will take great care not to kill the goose that lays the golden eggs. I am quite convinced that everything hangs on the future development of trade and traffic. To-day, as I have said before, Tariff Reform and a Zollverein with the Colonies are the catchwords that are on everybody’s lips, and the anti-German feeling is so strong that it is scarcely possible to discuss matters with one’s oldest friends, because the people over here have turned mad and talk of nothing but the next war and the protective policy of the near future. Large crowds are spending hours every night in the principal squares such as Trafalgar Square, where they have come to watch the announcements of the election results in the provinces. Their behaviour is exemplary. It is a curious thing that in this country the election game is spread over several weeks, in consequence of which the political excitement of the masses is raised to boiling-point. Within a few months’ time, I am sure, things will look entirely different again.”
From the second report, in the summer of 1910, the following is the salient extract:
“I am now returned from England, and it may not be out of place to report the impressions I received of the political and economic conditions over there.
“My previous visit to London coincided with the big election campaign, and I have already described the fit of mad excitement which had taken possession of the people, and which was directed against Germany.
“The situation has now undergone a complete change, which is noticeable everywhere and which is caused by the close of the election campaign, by the death of the King, and, finally, by the visit of the Kaiser on the occasion of the Royal funeral. Everyone whom I met in London—Liberals and Conservatives alike—spoke in terms of the highest praise of the Kaiser’s sympathetic attitude displayed during his stay in England, and which was all the more commendable as it was not denied that he had suffered many slights during the lifetime of his late uncle.
“The attitude of the people towards the new monarch is one of reserve, but also—in conformity with the national character of the English—one of loyalty and good faith. The situation with regard to home politics is as difficult now as it has been all along. Unless a compromise between the parties is arrived at new elections will be unavoidable in the spring or even before. I have met a great many persons of political experience who are of opinion that, even if a compromise is made, it will be necessary to submit such an arrangement to the decision of the electorate by an appeal to the country. It is difficult to predict the result of such new elections. The views held by large sections of the Press and of the public bear out the truth of the remarks in my previous letter when I emphasized the fact that the British are a nation of business men who act on the principle of ‘leave well alone,’ and who will refuse to have anything to do with Tariff Reform as soon as there is an improvement in trade.