English imperialists were intensely interested and intensely hopeful. 'I cannot conceal from myself,' declared Mr Chamberlain in his opening address, 'that very great anticipations have been formed as to the results which may accrue from our meeting.' The enthusiasm of Canadian and Australian and New Zealander for the cause of the mother country in the war had led many to believe that the time was ripe for a great stride toward the centralization of the Empire. The policy of autonomy as the basis of union was attacked as obsolete. According to the new imperialism, the control of the Empire should be centralized, should be vested in the British Government, or in an Imperial Council or parliament sitting at London, in which numbers and the overwhelming force of environment and social pressure would give Great Britain unquestioned dominance. Mr Chamberlain himself shared these hopes and these limitations. He was, indeed, more popular in the colonies than any other British statesman, because he had recognized more fully than any other their strength and the value of their support. Yet he, too, laboured under the delusion that Australia and Canada were simply England beyond the seas. He not only looked at imperial questions from the point of view of one who was an Englishman first and last, but expected to find Australians and Canadians doing the same.

These expectations were destined to be rudely shattered. The new imperialism did not give scope for the aspirations of the Dominions. Its apostles had failed to recognize that if the war had stimulated imperial sentiment in the Dominions it had also stimulated national consciousness. The spectacular entry upon the world's stage involved in sending troops half-way across the globe, the bravery and the steadfastness the troops had displayed, had sent a thrill of pride through every Dominion. The achievement of federation in Australia and the new-found prosperity of Canada gave added impetus to the national feeling. And, as a cross-current, opposed alike to the rising nationalism and to any kind of imperialism, there was still the old colonialism, the survival of ways of thought bred of the days when Englishmen regarded the colonies as 'our possessions' and colonials acquiesced. These three currents, colonialism, nationalism, and imperialism, ran strong in Australian and Canadian life, and none of them could be disregarded. A free imperialism, consonant with and allied to national ambitions, the Dominions would have, had indeed already, but the idea of Mr Chamberlain and his followers, which contravened both the new nationalism and the old colonialism, could not prevail.

As before, the chief subjects dealt with by the Conference fell into three fields—political relations, commercial relations, and defence.

In opening the Conference Mr Chamberlain declared that the problem of future political relations had been simplified by the federation of the Australian colonies and the coming closer union of South Africa. The next step would be the federation of the Empire, which he believed was within the limits of possibility. This might come by sending colonial representatives to the existing House of Commons at Westminster, but perhaps a more practical proposal would be the creation of a real Council of the Empire, which in the first instance might be merely advisory but in time would have executive and perhaps legislative powers. Elsewhere Mr Chamberlain had made more clear the extent of the power which he hoped this central council would in time acquire: he had defined it as 'a new government with large powers of taxation and legislation over countries separated by thousands of miles.'

The appeal met with little response. The prime ministers seemed in no haste to abandon the policy by which they had already acquired powers so many and so wide. No resolution was moved in the direction Mr Chamberlain urged. Instead, a step was taken towards making the Conference itself a more organic body by providing that it should meet at intervals not exceeding four years. The vital difference between the Conference and the Imperial Council which Mr Chamberlain desired, was that the Council when full-fledged should be an independent government exercising direct control over all parts of the Empire, and with a dominating representation from the United Kingdom; whereas the Conference was simply a meeting of governments in which all the countries met on an equal footing, with no power to bind any Dominion or to influence its action otherwise than by interchange of information and opinion.

As to defence, a determined attempt was made to induce the colonies to contribute to the support of the British army and navy. Mr Chamberlain submitted a memorandum showing that the United Kingdom spent annually for military and naval purposes 29s 3d per head—while Canada spent 2s, New Zealand 3s 4d, and Australia 4s—and urged that it was inconsistent with the dignity of nationhood that the Dominions should thus leave the mother country to bear the whole or almost the whole cost of defence. He trusted that no demands would be made which would appear excessive, and that something would be done to recognize effectually the obligation of all to contribute to the common weal. Lord Selborne for the Admiralty followed by urging contributions of money as well as of men to the navy. And Mr Brodrick for the War Office proposed that one-fourth of the existing colonial militias should be specially trained and earmarked for service overseas in case of war.

These suggestions met with a limited measure of success. Cape Colony agreed to grant £50,000 a year and Natal £35,000 to the maintenance of the navy, while Australia[[3]] and New Zealand increased their grants for the maintenance of the Australasian squadron respectively to £200,000 and £60,000 a year. Canada declined to make any grant or promise of the kind desired. Her representatives stated that their objections arose, not so much from the expense involved, as from a belief that acceptance of the proposals would entail an important departure from the principles of colonial self-government, which had proved so great a factor in the promotion of imperial unity. They recognized, however, the need of making provision for defence in proportion to the increasing wealth and population of the country. They were prepared, in the development of their own militia system, to take upon Canada the services formerly borne by the Imperial Government, and would consider the possibility of organizing a naval reserve on the coasts.

Mr Brodrick's proposal to have a special body of troops earmarked for imperial service was endorsed by the small states, New Zealand, the Cape, and Natal, but strongly rejected by the nation-states, Australia and Canada. The latter countries were of the opinion 'that the best course to pursue was to endeavour to raise the standard of training for the general body of their forces, leaving it to the colony, when the need arose, to determine how and to what extent it should render assistance.... To establish a special force, set apart for general imperial service, and practically under the absolute control of the Imperial Government, was objectionable in principle, as derogating from the powers of self-government enjoyed by them, and would be calculated to impede the general improvement in training and organization of their defence forces.'

Thus, so far as the Dominions had awakened to the need of greater outlay for defence, they desired to make that outlay as they made all other expenditure, under the direction and control of their own Governments. It may be asked, Why then did not Canada, in the succeeding decade, make better progress along this line? The reasons were many. One was the engrossment in the tremendous task of opening up and subduing vast continental wildernesses, a task more costly than outside opinion often realized, a task which rose to such proportions that the per capita burden of taxation on the Canadian became decidedly greater than that borne by the Englishman for navy, army, social reform, and all other expenditure. Then, too, there was the old colonialism, the habits of thought acquired under different conditions, which, by force of momentum, persisted after these conditions had passed away. Though Canada had ceased to be a 'possession' and was emerging into nationhood, she awoke but slowly to the idea of taking up her own burden of defence. There was the lack of any pressing danger. The British navy was still unchallenged in its supremacy. Canada had only one near neighbour; and with that neighbour war was fast becoming unthinkable. In fact, the United States was regarded by some as being as much a protection in case of German or Japanese attack as a menace in itself, though doubtless most Canadians, if put to the test, would have refused to accept such patronizing protection as that afforded by the Monroe Doctrine; the day had not yet come, however, when the similar refusal of the South American states to be taken under any eagle's wing, however benevolent, was to lead to the transformation of that relationship into a self-respecting quasi-alliance of pan-American republics. There was the view strongly advanced by Sir Charles Tupper and others, that if Canada were independent the United Kingdom would require not a ship the less to protect its world-wide trade. True; and few Canadians saw the equal truth that in such a case Canada would require many a ship the more. And if it seemed probable, or even as certain as reasoning from the experience of others could make it, that an independent Canada would have been involved in wars of her own, it was also certain, as an actual fact, that through her connection with Britain she had been involved in wars that were not her own. All such ideas and forces not only ran counter to Mr Chamberlain's new imperialism, but set a stumbling-block in the path of any rapid progress in defence upon national lines. The unwillingness of the British authorities to sanction Dominion fleets equally blocked progress along the most promising path.

As to commercial relations, Mr Chamberlain stated that his ideal was 'free trade within the Empire,' presumably with a common customs tariff against all foreign countries. This proposal met with no support. None of the colonies was prepared to open its markets to the manufacturers of the United Kingdom. For the present, protection was their universal policy. It was recommended, however, that those colonies which had not done so should follow Canada's example in giving a preference to British goods, and that the United Kingdom should in turn grant a preference to the colonies by exemption from or reduction of duties then or thereafter imposed. Mr Chamberlain belittled the value of the preference already given by Canada. The Canadian ministers had no difficulty in showing the unfairness of his conclusion. The preference, which had been increased to thirty-three and a third per cent, and made to apply specifically to Great Britain and to such other parts of the Empire as would reciprocate, had not only arrested the previous steady decline in imports from Great Britain, but had led to a substantial growth in these imports. Canada would agree, however, to go further, and grant some increased preference if Britain would reciprocate. These proposals for reciprocal preference turned upon the fact that, as a war revenue measure, the British Government had recently imposed a duty of a shilling a quarter upon wheat. A few months later the tax was abolished, and reciprocal preference again became merely an academic topic.