1. If we carry out the plan I have advocated, the British taxpayer, as soon as he ceases to contribute to the diminishing subsidy suggested at p. 284 in order to meet the initial deficit in the national Irish balance-sheet, will cease to contribute anything towards the running costs, landlord's bonus, and flotation losses of a Purchase operation for the necessity of which Great Britain, in the past, was in reality responsible. Great Britain is under a moral obligation to continue to support Land Purchase with her national credit, which is indispensable. She is also entitled to demand whatever reasonable conditions she thinks fit, for example, a share in the nomination of Land and Estates Commissioners; while any new legislation will, in the ordinary course, need her assent. The security, as I said above, will be impregnable. The purchasing tenant would become the tenant of the Irish State. The Irish Government, as a whole, instead of the individual annuitants, would, of course, be responsible to the Imperial Government, would collect the annuities itself, and bear any contingent loss by their non-payment. To repudiate a public obligation of that sort would be as ruinous to Ireland as the repudiation of a public debt is to any State in the world.
In point of fact, the Irish Government would find it good policy to popularize Irish Land Stock in Ireland. At present prices the 3 per cent, stock is among the cheapest and safest in the world, and would return to the farmer thrice as much interest as the average bank deposit which he now favours.
Mercifully, there is no exact historical precedent for such a case as Ireland, though, on a small scale, Prince Edward Island is an instructive parallel.[163] But if precedents, in the shape of guaranteed loans to self-governing Colonies, are needed, they exist. The most relevant and recent is the Imperial guaranteed loan of 35 millions made to the Transvaal by Mr. Balfour's Government in 1903 after the great war. Why it should be a heresy to do for Ireland what we did for the Transvaal, I am at a loss to conceive. The loan became, of course, an obligation of the Colony when it received Home Rule, and in 1907 a further guaranteed loan of 5 millions was authorized, of which 4 millions has been issued. Like Irish Land Stock, these loans are secured on the Consolidated Fund; but I do not think a fear is now suggested that the Consolidated Fund is in danger on that account. Prophecies of that sort were common enough in the mouths of those who opposed Transvaal Home Rule, but they did not long survive its enactment.
Another precedent is a guaranteed railway loan to Canada in 1873 of £3,600,000, which is just now becoming redeemable, while the Crown Colony of Mauritius received a guaranteed loan of £600,000 in 1892. The British and Irish taxpayers have also made themselves responsible for £9,424,000 on account of Egypt; £6,023,700 on account of Greece; and £5,000,000 on account of Turkey. The total nominal amount of the guaranteed loans to countries, colonial or foreign, outside the United Kingdom is £63,647,700. The total amount outstanding on March 31, 1911, was £59,474,200, and the Government holds securities only to the value of £4,800,556 against these liabilities, leaving the net liability of the taxpayer at £54,673,644.
The net liability of the taxpayer at the same date on account of Irish Guaranteed Land Stocks of all descriptions was £65,764,054.[164] Ireland has a claim to Imperial credit far superior to any of the Colonies, dependencies, or foreign Powers mentioned, and the credit should not entail control, or the representation of Ireland at Westminster.
Incidentally, it goes without saying that Ireland, in common with the Colonies, should receive the very valuable privilege of having independent loans raised by herself inscribed at the Bank of England, and made trustee securities.
2. It may be argued that the Congested Districts Board and the Land Commission, and through them Irish statesmen, may be subjected to local pressure hostile to the landlord's interests, and that the Irish Government would feel itself more free for social and other reforms if the land question were placed legally outside their purview. My answer is, in the first place, that Great Britain would cease to lend if her conditions were unfulfilled; in the second place, that in this, as in all matters, we are bound to place faith in the self-respect and sense of justice of a free Ireland—in its common prudence, too; for it would be a disaster whose magnitude is universally recognized in Ireland if any course were to be taken which prevented the landlord class from joining in the great work of making a new Ireland. Fair treatment of the landlords by a free Ireland, as distinguished from fair treatment at the hands of an external authority, would do more than anything else to bring about a reconciliation. That is human nature all the world over.
II.
MINOR LOANS TO IRELAND.
It remains only to refer briefly to two other cases where Ireland benefits from Imperial credit.