The Prime Minister, less assured than his subordinate at the Board of Trade that "King Carson" was negligible, also displayed a somewhat chastened spirit at Ladybank on the 25th of October, when he acknowledged that it was "of supreme importance to the future well-being of Ireland that the new system should not start with the apparent triumph of one section over another," and he invited a "free and frank exchange of views."[[52]] Sir Edward Grey held out another little twig of olive two days later at Berwick.

To these overtures, if they deserve the name, Mr. Bonar Law replied in an address to a gathering of fifteen thousand people at Wallsend on the 29th, in the presence of Sir Edward Carson. Having repeated the Blenheim pledge, he praised the discipline and restraint shown by the Ulster people and their leaders, but warned his hearers that the nation was drifting towards the tragedy of civil war, the responsibility for which would rest on the Government. He expressed his readiness to respond to Mr. Asquith's invitation, but pointed out that there were only three alternatives open to the Government. They must either (1) go on as they were doing and provoke Ulster to resist—that was madness; (2) they could consult the electorate, whose decision would be accepted by the Unionist Party as a whole; or (3) they could try to arrange a settlement which would at least avert civil war.

There had been during the past six or eight months an unusual dearth of by-elections to test public opinion in regard to the Irish policy of the Government, and it must be borne in mind that the Unionist Party in Great Britain was still distracted by disputes over the Tariff question, which in January 1913 had very nearly led to the retirement of Mr. Bonar Law from the leadership. Nevertheless, in May the Unionists won two signal victories, one in Cambridgeshire, and one in Cheshire, where the Altrincham Division sent a staunch friend of Ulster to Parliament in the person of Mr. George C. Hamilton, who in his maiden speech declared that he had won the contest entirely on the Ulster Question. Even more significant, perhaps, were two elections which were fought while the interchange of party strokes over the Loreburn letter was in progress, and the results of both were declared on the 8th of November. At Reading, where the Unionists retained the seat, the Liberal candidate was constrained by pressure of opinion in the constituency to promise support for a policy of "separate and generous treatment for Ulster." At Linlithgow, a Liberal stronghold, where no such promise was forthcoming, the Liberal majority, in spite of a large Nationalist vote, was reduced by 1,500 votes as compared with the General Election. There were signs that Nonconformists, whose great leaders like Spurgeon and Dale had been hostile to Home Rule in Gladstone's time, were again becoming uneasy about handing over the Ulster Presbyterians and Methodists to the Roman hierarchy. A memorial against Home Rule, signed by 131,000 people, which had been presented to the General Assembly of the Presbyterian Church in June, had no doubt had some effect on Nonconformist opinion in England, and it was just about the time when these elections took place that Carson was described at a large gathering of Nonconformists in London as "the best embodiment at this moment of the ancient spirit of Nonconformity."[[53]]

Meanwhile the people in Ulster were steadily maturing their plans. The arrangements already mentioned for setting up a Provisional Government were confirmed and finally adopted by the Unionist Council in Belfast on the 24th of September, and the Council by resolution delegated its powers to the Standing Committee, while the Commission of Five was at the same time appointed to act as an Executive. Carson, in accepting the chairmanship of the Central Authority, used the striking phrase, which precisely epitomised the situation, that "Ulster might be coerced into submission, but in that case would have to be governed as a conquered country." The Nationalist retort that the rest of Ireland was now being so treated, appeared forcible to those Englishmen only who could see no difference between controlling a disaffected population and chastising a loyal one.

At the same meeting of the Ulster Unionist Council on the 24th of September a guarantee fund was established for providing means to compensate members of the U.V.F. for any loss or disability they might suffer as a result of their service, and the widows and dependents of any who might lose their lives. This was a matter that had caused Carson anxiety for some time. He was extremely sensitive to the moral responsibility he would incur towards those who so eagerly followed his lead, in the event of their suffering loss of life or limb in the service of Ulster. His proposal that a guarantee fund of a million sterling should be started, met with a ready response from the Council, and from the wealthier classes in and about Belfast. The form of "Indemnity Guarantee" provided for the payment to those entitled to benefit under it of sums not less than they would have been entitled to under the Fatal Accidents Act, the Employers' Liability Act, and the Workman's Compensation Act, as the circumstances of the case might be. The list was headed by Sir Edward Carson, Lord Londonderry, Captain Craig, Sir John Lonsdale, Sir George Clark, and Lord Dunleath, with a subscription of £10,000 each, and their example was followed by Mr. Kerr Smiley, M.P., Mr. R.M. Liddell, Mr. George Preston, Mr. Henry Musgrave, Mr. C.E. Allen, and Mr. Frank Workman, who entered their names severally for the same amount. A quarter of a million sterling was guaranteed in the room before the Council separated; by the end of a week it had grown to £387,000; and before the 1st of January, 1914, the total amount of the Indemnity Guarantee Fund was £1,043,816.

It gave Carson and the other leaders the greatest possible satisfaction that the response to this appeal was so prompt and adequate. Not only was their anxiety relieved in regard to their responsibility to loyal followers of the rank and file who might become "casualties" in the movement, but they had been given a striking proof that the business community of Belfast did not consider its pocket more sacred than its principles. Moreover, if there had been doubt on that score in anyone's mind, it was set at rest by a memorable meeting for business men only held in Belfast on the 3rd of November. Between three and four thousand leaders of industry and commerce, the majority of whom had never hitherto taken any active share in political affairs, presided over by Mr. G.H. Ewart, President of the Belfast Chamber of Commerce, gave an enthusiastic reception to Carson, who told them that he had come more to consult them as to the commercial aspects of the great political controversy than to impress his own views on the gathering. It was said that the men in the hall represented a capital of not less than £145,000,000 sterling,[[54]] and there can be no doubt that, even if that were an exaggerated estimate, they were not of a class to whom revolution, rebellion, or political upheaval could offer an attractive prospect. Nevertheless, the meeting passed with complete unanimity a resolution expressing confidence in Carson and approval of everything he had done, including the formation of the Ulster Volunteer Force, and declaring that they would refuse to pay "all taxes which they could control" to an Irish Parliament in Dublin. This meeting was very satisfactory, for it proved that the "captains of industry" were entirely in accord with the working classes, whose support of the movement had never been in doubt. It showed that Ulster was solid behind Carson; and the unanimity was emphasised rather than disturbed by a little handful of cranks, calling themselves "Protestant Home Rulers," who met on the 24th of October at the village of Ballymoney "to protest against the lawless policy of Carsonism." The principal stickler for propriety of conduct in public life on this occasion was Sir Roger Casement.

While the unity and steadfastness—which enemies called obstinacy—of the Ulster people were being thus made manifest, the public in England were hearing a good deal about the growth of the Ulster Volunteer Force in numbers and efficiency. As will be seen later, the anniversary of the Covenant was celebrated with great military display at the very time when the newspapers across the Channel were busy discussing Lord Loreburn's letter, and at a parade service in the Ulster Hall, Canon Harding, after pronouncing the Benediction, called on the congregation to raise their right hands and pledge themselves thereby "to follow wherever Sir Edward Carson shall lead us."

The events of September 1913—the setting up of the Provisional Government, the wonderful and instantaneous response to the appeal for an Indemnity Guarantee Fund, the rapid formation of an effective volunteer army—were given the fullest publicity in the English Press. Every newspaper of importance had its special correspondent in Belfast, whose telegrams filled columns every day, adorned with all the varieties of sensational headline type. The Radicals were becoming restive. The idea that Carson was "not to be taken too seriously," had apparently missed fire. It was the Ministerial affectation of contempt that no one was taking seriously; in fact, to borrow an expression from current slang, the "King Carson" stunt was a "wash-out."

The Nation suggested that, instead of being laughed at, the Ulster leader should be prosecuted, or, at any rate, removed from the Privy Council, and other Liberal papers feverishly took up the suggestion, debating whether the indictment should be under the Treason Felony Act of 1848, the Crimes Act of 1887, or the Unlawful Drilling Act of 1819. One of them, however, which succeeded in keeping its head, did not believe that a prosecution would succeed; and, as to the Privy Council, if Carson's name were removed, what about Londonderry and F.E. Smith, Walter Long, and Bonar Law? In fact, "it would be difficult to know where to stop."[[55]] It would have been. The Privy Council would have had to be reduced to a committee of Radical politicians; and, if Carson had been prosecuted, room would have had to be found in the dock, not only for the whole Unionist Party, but for the proprietors and editors of most of the leading journals. The Government stopped short of that supreme folly; but their impotence was the measure of the prevailing sympathy with Ulster.