'"The House of Lords must go, or you must establish a separate
Second Chamber for each legislature.
'"It is impossible to suppose that the authority of the Crown could survive these changes for long. One or other of the local legislatures would refuse to pay the expense, and, as it would have some kind of local militia at its back, it is not likely that the other legislatures would engage in civil war for the sake of reimposing the nominal authority of the Sovereign.
'"As a Radical all these changes have no terrors for me, but is it conceivable that such a clean sweep of existing institutions could be made in order to justify the Irish demand for Home Rule? Yet this is the only form of federal government which offers any prospect of permanence or union for Imperial purposes.
'"If English Liberals once see clearly that indefinite talk about Home Rule means either separation or the entire recasting of the whole system of English as well as Irish government, they will then be in a position to decide their policy. At present they are being led by the Daily News and Morley and Co. to commit themselves in the dark."
'Next day, December 27th, Chamberlain wrote:
'"The situation (Irish) is now as follows:
'"(1) The Government have been informed that Mr. Gladstone thinks this great question should not be prejudiced by party feeling, and that he will support them in any attempt they may make to give Home Rule to Ireland.
'"(2) Mr. Gladstone has been informed that the Government will see him damned first.
'"(3) The Irishmen have been informed that Mr. Gladstone will not move a step till the Government have spoken or until the Irish have put them in a minority.
'"(4) In either of these events he will do his best to effect a thorough settlement. 'He will go forward or fall.'