My dear Sir,—I am extremely obliged to you for your interesting letter, with a great deal of the contents of which I am disposed to concur.

I think it would not be difficult to find a good many Conservatives willing to make a considerable step towards a restrictive regulation of the sale of alcoholic liquor.

The party with which you are connected ought, however, in my opinion, to consider practically the question of compensation in some form or other to the retail trader. I exclude compensation to the brewers and distillers as an impracticable and impossible demand. The retail trader stands on a very different footing, and any glaring injustice towards him would alienate many who would otherwise join the Temperance movement.

One good result of buying up retail liquor interests by charges on the rates would be to give a permanence to any local decision in favour of largely diminishing the number of or even abolishing public-houses.

The community would be most indisposed, by any reversal of its Temperance policy, to run the risk of having again to face fresh compensation liabilities.

Caprice in popular decisions is a danger to be guarded against.

I shall continue from time to time to urge the importance of strong dealing with the Licensing Question. I only trust that your party will not take up the position of ‘everything or nothing,’ but, if good proposals are made, will accept them—reserving to themselves, of course, the right to continue their agitation for more.

We shall, however, not effect much against the publicans unless we act vigorously in the direction of better houses for the poor. As long as we allow such an immense portion of our population to live in pigsties, the warmth and false cheerfulness of the public-house will be largely sought after.

The two questions appear to me to be inseparable.

I shall always be very glad to talk over these matters with you should you feel disposed for conference.