164. The Liberals in Office: the Elections of 1906.—Hesitating long, but at the last bowing somewhat abruptly before the gathering storm, Mr. Balfour tendered his resignation December 4, 1905. The Government had in the Commons a working majority of seventy-six, and the Parliament elected in 1900 had still another year of life. In the Lords the Unionists outnumbered their opponents ten to one. The administration, however, had fallen off enormously in popularity, and the obstacles imposed by the fiscal cleavage appeared insuperable. Unable wholly to follow Mr. Chamberlain in his projects, the premier had grown weary of the attempt to balance himself on the tight rope of ambiguity between the free trade and protectionist wings of his party. Not caring, however, to give his opponents the advantage which would accrue from an immediate dissolution of Parliament and the ordering of an election which should turn on clear issues raised by the record of the ten years of Unionist rule, he chose simply to resign and so to compel the formation of a new government which itself should be immediately on trial when the inevitable elections should come.
On the day of Mr. Balfour's resignation the king designated as premier the Liberal leader, Sir Henry Campbell-Bannerman, who forthwith made up a cabinet of rather exceptional strength in which the premier himself occupied the post of First Lord of the Treasury, Sir Edward Grey that of Foreign Affairs, Mr. Herbert H. Asquith that of the Exchequer, Mr. Richard B. Haldane that of War, Lord Tweedmouth that of the Navy, Mr. David Lloyd-George that of President of the Board of Trade, Mr. John Burns that of President of the Local Government Board, Mr. Augustine Birrell that of President of the Board of Education, and Mr. James Bryce that of Chief Secretary for Ireland. January 8, 1906, the "Khaki Parliament" was dissolved, a general election was ordered, and the new parliament was fixed to meet at the earliest legal date, February 13. The campaign that followed was the most animated, except that of 1910, in recent British history. The Unionists, being themselves divided beyond repair on the question of the tariff, pinned their hope to a disruption of the Liberal forces on the issue of Home Rule. The Liberal leaders, however, steadfastly refused to allow the Irish question to be brought into the foreground. Recognizing that Home Rule in the immediate future was an impossibility, but pledging themselves to a policy contemplating its establishment by degrees, they contrived to force the battle principally upon the issue of free trade versus protection and, in general, to direct their most telling attack upon the fiscal record and fiscal policies of their opponents. The result was an overwhelming Liberal triumph. In a total of 6,555,301 votes,[223] 4,026,704 were cast for Liberal, Nationalist, and Labor candidates, and only 2,528,597 for Conservatives and Unionists. There were returned to the House of Commons 374 Liberals, 84 Nationalists, 54 Laborites, 131 Conservatives, and 27 Liberal Unionists, assuring the Liberals and their allies a clear preponderance of 354.[224] Prior to the elections careful observers believed the return of the Liberals to power inevitable, but a victory of such proportions was not dreamed of by the most ardent of the party's well-wishers.[225]
VI. The Rule of the Liberals, 1906-1912
165. The Liberal Mandate.—The Liberal ascendancy, made thus secure by the elections of 1906, has continued uninterruptedly to the date of writing (1912), and the years covered by it have been in many respects the most important in the political history of modern Britain. The significance of the period arises principally from the vast amount of social and economic legislation that has been attempted within it. A considerable portion of this legislation has been successfully carried through and is now in effect. Some important portions, however, have failed of eventual adoption, chiefly in consequence of the opposition of the Unionist majority in the Lords; and a direct outcome of the series of clashes between the Liberals and the Lords has been the important constitutional readjustments comprised within the Parliament Act of 1911 already described. Speaking broadly, the Liberals were restored to power in 1906 because the nation desired the doing of certain things which the Unionists seemed unable or disinclined to do. Most important among these things were: (1) the reduction of public expenditures and the curbing of national extravagance; (2) the remission of taxation imposed during the South African war; (3) the reform of the army; and (4) the undertaking of an extended programme of social reform, embracing the establishment of old age pensions, the remedying of unemployment, the regulation of the liquor traffic, and the liberation of education from ecclesiastical domination. The nation was solicitous, too, that the system of free trade be maintained without impairment. To all of these policies, and more, the Liberals were committed without reserve when they entered office.
166. The Party's Performance.—During the years intervening between the elections of 1906 and those of 1910 the Liberal governments presided over successively by Mr. Campbell-Bannerman and Mr. Asquith[226] made honest effort to redeem the election pledges of the party. They stopped the alarming increase of the national debt and made provision for debt reduction at a rate equalled at but two brief periods since the middle of the nineteenth century. They repealed approximately half of the war taxes which were still operative when they assumed office. In the matter of national expenditures they accomplished a momentary reduction, although the normal increase of civil outlays, the adoption of old age pensions, and, above all, the demand of the propertied interests for the maintenance of a two-power naval standard brought about eventually an increase rather than a diminution of the sums carried by the annual budget. In accordance with a scheme worked out by Mr. Haldane they remodelled the army. They maintained free trade. They made no headway toward Home Rule, but they enacted, in 1909, an Irish Universities bill and an Irish Land Purchase bill which were regarded as highly favorable to Irish interests. Above all, they labored to meet the demand of the nation for social legislation. The prevalence of unemployment, the misery occasioned by widespread poverty, the recurrence of strikes and other industrial disorders, the growing volume of emigration, and other related aspects of England's present social unsettlement, have served to fix unshakably in the public mind the idea that the state must plan, undertake, and bear the cost of huge projects of social and industrial amelioration and of democratization and reform. In the realization of those portions of their programme which relate to these matters the Liberals have been only partially successful. They enacted important labor legislation, including an eight-hour working day in mines, a Labor Exchanges act, and a Trades Disputes act, and they established, by act of 1908, an elaborate system of old age pensions. By reason of the opposition of the House of Lords, however, they failed to enact the bill of 1906 for the abolition of plural voting, the hotly contested measure of 1906 providing for the undenominationalizing of the schools, the Aliens Bill of 1906, the Land Values Bill of 1907, the Licensing Bill of 1908, the London Elections Bill of 1909, and, finally, the Finance Bill of 1909, whose rejection by the Lords precipitated a dissolution of Parliament and the ordering of the elections of January, 1910.
167. The Liberals Versus the Lords: the Elections of January, 1910.—Four years of conflict with the overpowering Opposition in the upper chamber brought the Liberals to a place from which they neither could nor would go on until certain fundamentals were settled. The first was the assurance of revenues adequate to meet the growing demands upon the treasury. The second was the alteration of the status of the Lords to make certain the predominance of the popular branch of Parliament in finance and legislation. During the two years (1909-1911) while these great issues were pending the nation was stirred to the depths and party conflict was unprecedented in intensity. On the side of finance, Unionists and Liberals were in substantial agreement upon the policies—especially old age pensions and naval aggrandizement—which rendered larger outlays inevitable; they differed, rather, upon the means by which the necessary funds should be obtained. The solution offered in the Lloyd-George budget of 1909 was the imposition of new taxes on land and the increase of liquor license duties and of the taxes on incomes and inheritances. The new burdens were contrived to fall almost wholly upon the propertied, especially the landholding, classes. To this plan the Unionists offered the alternative of Tariff Reform, urging that the needed revenues should be derived from duties laid principally upon imported foodstuffs, although the free trade members of the party could not with consistency lend this proposal their support. The rejection of the Finance Bill by the Lords, November 30, 1909, sweeping aside as it did three centuries of unbroken precedent, brought to a crisis the question of the mending or ending of the Lords, and although the electoral contest of January, 1910, was fought immediately upon the issue of the Government's finance proposals, the question of the Lords could by no means be kept in the background. The results of this election were disappointing to all parties save the Nationalists. The final returns gave the Liberals 274 seats, the Unionists 273, the Nationalists 82, and the Laborites 41. The Asquith government found itself still in power, but absolutely dependent upon the co-operation of the Labor and Nationalist groups. Upon the great issues involved there was no very clear pronouncement, but it was a foregone conclusion that the tax proposals would be enacted, that some reconstitution of the House of Lords would be undertaken, and that free trade would not yet be in any measure abandoned.[227]
168. The Liberal Triumph: the Elections of December, 1910.—The developments of the ensuing year and a half have been sketched elsewhere.[228] They comprised, in the main: (1) the re-introduction and the enactment of the Finance Bill of 1909: (2) the bringing forward by Mr. Asquith of the Government's proposals relative to the alteration of relations between the two houses of Parliament; (3) the adoption by the House of Lords of the principle of Lord Rosebery's projected scheme of upper chamber reform; (4) the interruption and postponement of the contest by reason of the death of Edward VII.; (5) the failure of the Constitutional Conference in the summer of 1910; (6) the adoption by the second chamber of the reform resolutions of Lord Lansdowne; (7) the dissolution of Parliament, after an existence of but ten months, to afford an opportunity for a fresh appeal to the country on the specific issue of second chamber reform; (8) the elections of December, 1910, and the assembling of the new parliament in January, 1911; and (9) the re-introduction and the final enactment, in the summer of 1911, of the Government's momentous Parliament Bill. At the December elections the contending forces were so solidly entrenched that the party quotas in the House of Commons remained all but unchanged. Following the elections they stood as follows: Liberals, 272; Unionists, 272; Nationalists, 76; Independent Nationalists (followers of William O'Brien), 8; and Laborites, 42. The Unionists gained substantially in Lancashire, Devonshire, and Cornwall, but lost ground in London and in several boroughs throughout the country. Still dependent upon the good-will of the minor parties, the Government addressed itself afresh to the limitation of the veto power of the Lords and to the programme of social amelioration which during the recent months of excitement had been accorded meager attention. Effort in the one direction bore fruit in the Parliament Act, approved by the crown August 18, 1911; while upon the other side substantial results were achieved in the enactment, December 16, 1911, of a far-reaching measure instituting a national system of insurance against both sickness and unemployment.[229]
VII. The Parties of To-day
169. Significance of "Liberal" and "Conservative."—Of the four political parties of Great Britain to-day one, the Irish Nationalist, is localized in Ireland and has for its essential purpose the attainment of the single end of Irish Home Rule;[230] another, the Labor party, is composed all but exclusively of workingmen, mainly members of trade-unions, and exists to promote the interests of the laboring masses; while the two older and more powerful ones, the Liberal and the Conservative or Unionist, are broadly national in their constituencies and well-nigh universal in the range of their principles and policies. It is essential to observe, however, that while the programme of the Nationalists is, at least to a certain point, perfectly precise, and that of the Laborites is hardly less so, there is no longer, despite the heat of recurring electoral and parliamentary combats, much that is fundamental or permanent in the demarcation which sets off the two major parties the one against the other. Even the names "Liberal" and "Conservative" denote in reality much less than might be supposed. During the generation which began with the Reform Act of 1832 the Liberals, indeed, extended the franchise to the middle classes, reformed the poor law, overhauled the criminal law, introduced a new and more satisfactory scheme of municipal administration, instituted public provision for elementary education, enacted statutes to safeguard the public health, removed the disabilities of dissenters, and assisted in the overthrow of the protective system. But if the Conservatives of the period 1830-1870 played, in general, the rôle implied by their party designation, their attitude none the less was by no means always that of obstructionists, and in the days of the Disraelian leadership they became scarcely less a party of reform than were their opponents. Beginning with the Reform Act of 1867, a long list of progressive and even revolutionizing measures must be credited to them, and in late years they and the Liberals have vied in advocating old age pensions, factory legislation, accident insurance, housing laws, and other sorts of advanced and remedial governmental action. The differences which separate the two parties are not so much those of principle or of political dogma as those of policy respecting immediate and particular measures, and especially those of attitude toward certain important organizations and interests. The Liberals assert themselves to be more trustful of the people and more concerned about the popular welfare, but the Conservatives enter a denial which possesses plausibility. It is probably true that the Liberals have fostered peace and economy with more resoluteness than have their rivals, yet so far as expenditures go the Liberal administration to-day is laying out more money than was ever laid out by a Conservative government in time of peace. The Liberals are seemingly more regardful of the interests of Scotland, Wales, and Ireland, but the difference is not so large as is sometimes supposed.
170. Present-day Issues.—Aside from the tariff question (and the Conservatives are far from united upon the Chamberlain programme), the principal issues which separate the two leading parties to-day are those which arise from the Conservative attitude of friendliness toward the House of Lords, the Established Church, the landowners, and the publicans. Most of the political contests of recent years have been waged upon questions pertaining to the constitution of the upper chamber, denominational control of education, disestablishment, the taxation of land, and the regulation of the liquor traffic, and in all of these matters the Liberals have been insisting upon changes which their opponents either disapprove entirely or desire to confine within narrower bounds than those proposed. In the carrying through of the Parliament Bill of 1911, providing a means by which measures may be enacted into law over the protest of the Conservative majority in the Lords, the Liberals achieved their greatest triumph since 1832. The party stands committed to-day to a large number of far-reaching projects, including the extension of social insurance, the revision of the electoral system, the establishment of Home Rule, and, ultimately, a reconstitution of the second chamber as promised in the preamble of the Parliament Act. At the date of writing (October, 1912) there are pending in Parliament a momentous measure for the granting of Home Rule to Ireland[231] and another for the overhauling of the electoral system,[232] an important bill for the disestablishment of the Church in Wales, a measure virtually annulling the principle involved in the Osborne Decision,[233] and several minor Government proposals. The recent victories of the Liberals have been won with the aid of Labor and Irish Nationalist votes, and the concessions which have been, and are being, made to the interests of these auxiliary parties may be expected to affect profoundly the course of legislation during the continuance of the Liberal ascendancy.[234] There are, it may be said, indications that the Liberals possess less strength throughout the country than they exhibited during the critical years 1910-1911. At thirty-eight by-elections contested by the Unionists since December, 1910, the Liberals have suffered a net loss of eight seats; and one of the contests lost was that in Midlothian, long the constituency represented by Gladstone, which returned, in September, 1912, a Conservative member for the first time in thirty-eight years. There is a tradition that when a Liberal government is defeated in Midlothian the end of that government is not far distant. Prophecy in such matters, however, is futile. Meanwhile the Unionists continue to be divided upon the tariff, but in the main they are united in opposition to the overturning of the ancient constitutional system, although they no longer generally oppose a moderate reform of the House of Lords. In a speech delivered at Leeds, November 16, 1911, the new parliamentary leader of the party, Mr. Bonar Law,[235] enumerated as the immediate Unionist purposes (1) to oppose the Government's Welsh Disestablishment scheme, (2) to resist Home Rule, (3) to labor for tariff reform as the only practicable means of solving the problem of unemployment, and (4) to defend at all costs the unity of the Empire.