Lloyd George: The Man and His Story

by Frank Dilnot

Lloyd George went before the public and explained it all with a clearness and potency which made it apparent that money was as important as soldiers. It was in his first big speech on these lines that he coined the phrase "silver bullets" and made the nation understand that among his other operations was that of raising a huge war loan, to which every patriot must subscribe. "We need all our resources, not merely the men, but the cash. We have won with the 'silver bullet' before. We financed Europe in the greatest war we ever fought, and that is how we won." It was in this speech that he showed clearly the importance of giving British finance stability, and how that stability was threatened. A boy at school might have followed his explanation. "We have not only our own business to run; we are an essential part of the machinery that runs the whole international trade of the world. We provide capital and raise produce. We carry half the produce, not merely of our own country, but of the whole world. More than that, we provide the capital that moves that produce from one part of the world to another, not merely for ourselves, but for other countries. I ask every one to pick up just one little piece of paper, one bill of exchange, to find out what we are doing. Take the cotton trade of the world. Cotton is moved first of all from the plantation, say to the Mississippi, then down to New Orleans, then it is moved from there either to Great Britain or to Germany or elsewhere. Every movement is represented by a paper signed either here in London or in Manchester or Liverpool; one sender is practically responsible for the whole of these transactions. Not only that, but when the United States of America buys silk or tea from China, the payment is made through London. By means of these documents accepted in London New York pays for the tea bought in China. What has happened? All this fine, delicate paper machinery has been crashed into by a great war affecting more than half, and nearly two-thirds, of the whole population of the world. Confusion was inevitable. It was just as if one gave a violent kick to an ant-hill. The deadlock was not due to lack of credit in this country; it was due entirely to the fact that there was a failure of remittances from abroad. Take the whole of these bills of exchange. There were balances representing between 350,000,000 pounds and 500,000,000 pounds. There was that amount of paper out at that time with British signatures. Most of it had been discounted. The cash had been found at home from British sources, and failure was not due to the fact that Britain had not paid all her creditors abroad: it was due entirely to the fact that those abroad had not paid Great Britain."

That was the position as Lloyd George presented it, and the position with which he proceeded to deal, in a matter of hours, handling hundreds of millions with the confidence with which an enterprising tradesman handles dollars. A temporary moratorium for debts was established, balances were placed at the disposal of bankers, and guarantees given for the payment of bills accepted by British houses. There were other arrangements carried out equally swiftly. "An estimate of our national assets," said Lloyd George, in explanation of his action, "is 17,000,000,000 pounds. To allow the credit of the country to be put in doubt for twenty-four hours in respect of 350,000,000 pounds, most of it owing to our own people, would have been a criminal act of foolishness."

The financial houses cried blessings on Lloyd George's head. Even the Daily Mail gave him a careful word of praise. As for a great part of the country, it somehow got the impression that finance, under Lloyd George, was at least as important as military operations, and indeed the glowing speeches of the Chancellor of the Exchequer almost gave the impression that it was more important. When the Welsh statesman flung himself into an endeavor the business of the moment was to him the most important thing in all the world, and his own supreme belief made other people think so, too. By general consent Lloyd George did extremely well in his bold, rapid, and unconventional financial policy. He was, nevertheless, one of the first to realize that a new strong policy in directions other than finance was necessary if ultimate victory was to be achieved. Indeed, before the end of that fateful five months of 1914, during which a sturdy British army of less than two hundred thousand men had, under the pressure of the German hosts, been fighting a retreat, yard by yard and mile by mile, in a way which will live forever in British military history, there had been forced upon Lloyd George as one of the principal members of the Cabinet that there were grave deficiencies at the front in equipment, that the British soldiers, unsurpassable for valor, for their individual skill, and their contempt of death, were being, not only overwhelmed by German numbers, but swept down by gun-fire which was in extent and in power tremendously superior to that of the British. It was a deadening, horrible thought. All the fighting spirit of Lloyd George rose to meet the emergency. His financial arrangements were in train and going well. He was, it is true, Chancellor of the Exchequer, but he was also Lloyd George, and with the whole impetuosity of his nature he turned his attention to the needs of the British army in the field. His colleagues in the Cabinet were patriots and were able men, but they had not his lively imagination. Some of them had more technical knowledge, but their pedestrian processes of mind took very different channels from his lightning intuitions. I imagine sometimes that he was not very tactful. It is impossible to doubt that this was the time when he first became impatient with the methods of his chief, Mr. Asquith. It is equally impossible to doubt that at this time, also, he was moved sufficiently to challenge the policy of those in charge of the War Office, those on whose advice the Prime Minister naturally relied.

The existing methods were subsequently criticised as slow, conventional, unillumined by modern experiences. Our soldiers, it was said, were being swept out of action by an intensity and plenitude of new high-explosive shells, while we proceeded in the use of ordinary shells in ordinary quantities. We needed immensely greater numbers of shells, enormously improved shells, vast amounts of high explosive, new big guns, indeed a score of things, which were afterward obtained. Lloyd George at this period saw that, as usual, Britain was just "muddling through," relying on her stolidity and her power of endurance, rather than on her initiative and striking strength. His efforts to improve matters within Government circles could not have endeared him to his Government colleagues. But his blood was up, and he cared as little for their good opinion as he did for the good opinion of the squires and clergymen when he started professional life in Wales.

A movement was made to increase and better equipment, but it was slow and, in Lloyd George's view, it was ineffective. He fought on. At length he succeeded in impressing the seriousness of the situation on the Government, and it was just about this time that he became possessed of a powerful ally. The Daily Mail, in past years the most vindictive foe of Lloyd George, swung around to his support, took up the cry of insufficient shells, attacked Lord Kitchener, raised a scandal in the country. The Times, which now, like the Daily Mail, was under the proprietorship of Lord Northcliffe, joined in the fray. Extravagant and unjustifiable condemnation of Lord Kitchener shocked the public, but, at the same time, there was revealed an undoubtedly grave state of affairs in the insufficient provision of shells and explosives and other war material. A political upheaval followed. The Liberal Government was replaced by a Coalition Government, with Mr. Asquith still in command, but with Conservatives in the Ministry and with Lloyd George no longer Chancellor of the Exchequer, but Minister of Munitions, a new post created for him, that he might organize the country for the supply of needed war material for our soldiers at the front. At the same time started that informal, but effective, alliance between those sworn enemies of old, Lloyd George and Lord Northcliffe, an alliance between the two most powerful men of action in Britain in our generation.

IX

THE ALLIANCE WITH NORTHCLIFFE

I regard Lloyd George as the most interesting man in public life in Britain to-day. There is, however, another very interesting man in the country, though on a different plane from the Prime Minister. I mean Lord Northcliffe—the Alfred Harmsworth who started life for himself without help at seventeen, was a rich newspaper proprietor at thirty, and at forty was a national figure with wealth which would satisfy the wildest visions of any seeker after gold. He is about the same age as Lloyd George, and he has reached his zenith at about the same time. He is the principal owner, not only of the popular Daily Mail, but also of the famous Times, to say nothing of some forty other journals of various kinds. He is the inspiring spirit of all his publications, and I should think the papers which he controls convey their message, good, bad, or indifferent, to not less than six millions of people every day. The range of his influence is obvious, and though it is an influence primarily of the middle classes, it reacts upward and downward, and makes itself felt even on those who dislike his policies. Northcliffe is undoubtedly patriotic and is sincere, but he is, above all other things, a newspaper man. The huge circulations of his papers tell their story of his mind. He is a genius in knowing what will interest the common intelligence. He has labeled himself, sincerely enough, a Conservative in state affairs, though in his highly successful business he has never hesitated in trampling down conventions. I have to say this, moreover, that those who are brought into personal touch with Northcliffe, whether they agree with his opinions or not, find in him an appreciative employer, a generous-hearted friend, and a man always with big impulses. He is essentially a practical man. He has no dreams of improving the race, no gleaming visions of a community relieved of poverty and kindred ills.

Northcliffe was for years Lloyd George's most bitter public critic. He has now become his ally in the government of the British Empire. Despite the difference in their outlook on life, there are wonderful resemblances between the two men. There are sympathies, too. Northcliffe early recognized that Lloyd George was a person to be watched, not because of his speeches, but because he was a man of action and a man who got things done. On the other hand, Lloyd George, under cruel attacks, once said, reflectively: "What a power this man Northcliffe might be if he chose! He could carry through a political project while we were thinking about it. We talk of tackling the question of housing the poor people of this country. He could do it single-handed." To this a companion pointed out that he was asking too much of Northcliffe; he had not it in him.