But if Mr. Balfour had not felt inclined to begin his reign by an act of abdication, he was still less disposed to have power wrested from his grasp. Moreover, he regarded a Party split as the worst of domestic catastrophes, and responsibility for it as the unforgivable sin. He therefore laboured with amazing patience and coolness to preserve a semblance of unity, to calm the tempest, and to hold on as long as possible in the hope of its subsiding. With the highest subtlety and ingenuity he devised a succession of formulas designed to enable people who differed profoundly, to persuade themselves they were in agreement. When it came to the resignation of Ministers, he was careful to shed Free Trade and Protectionist blood as far as possible in equal quantities. Like Henry VIII, he decapitated Papists and burned hot Gospellers on the same day for their respective divergencies in opposite directions from his central, personal and artificial compromise.

In this unpleasant situation Mr. Balfour maintained himself for two whole years. Vain the clamour for a general election, vain the taunts of clinging to office, vain the solicitations of friends and the attempts of foes to force a crucial issue. The Prime Minister remained immovable, inexhaustible, imperturbable; and he remained Prime Minister. His clear, just mind, detached from small things, stood indifferent to the clamour about him. He pursued, as has been related, through the critical period of the Russo-Japanese War, a policy in support of Japan of the utmost firmness. He resisted all temptations, on the other hand, to make the sinking of our trawlers on the Dogger Bank by the Russian Fleet an occasion of war with Russia. He formed the Committee of Imperial Defence—the instrument of our preparedness. He carried through the agreement with France of 1904, the momentous significance of which the last chapter has explained. But in 1905 political Britain cared for none of these things. The credit of the Government fell steadily. The process of degeneration in the Conservative Party was continuous. The storm of opposition grew unceasingly, and so did the unification of all the forces opposed to the dying regime.

Late in November, 1905, Mr. Balfour tendered his resignation as Prime Minister to the King. The Government of Sir Henry Campbell-Bannerman was formed, and proceeded in January to appeal to the constituencies. This Government represented both the wings into which the Liberal Party had been divided by the Boer War. The Liberal Imperialists, so distinguished by their talents, filled some of the greatest offices. Mr. Asquith went to the Exchequer; Sir Edward Grey to the Foreign Office; Mr. Haldane became Secretary of State for War. On the other hand the Prime Minister, who himself represented the main stream of Liberal opinion, appointed Sir Robert Reid, Lord Chancellor and Mr. John Morley, Secretary of State for India. Both these statesmen, while not opposing actual war measures in South Africa, had unceasingly condemned the war; and in Mr. Lloyd George and Mr. John Burns, both of whom entered the Cabinet, were found democratic politicians who had gone even farther. The dignity of the Administration was enhanced by the venerable figures of Lord Ripon, Sir Henry Fowler, and the newly returned Viceroy of India, Lord Elgin.

The result of the polls in January, 1906, was a Liberal landslide. Never since the election following the great Reform Bill, had anything comparable occurred in British parliamentary history. In Manchester, for instance, which was one of the principal battle-grounds, Mr. Balfour and eight Conservative colleagues were dismissed and replaced by nine Liberals or Labour men. The Conservatives, after nearly twenty years of power, crept back to the House of Commons barely a hundred and fifty strong. The Liberals had gained a majority of more than one hundred over all other parties combined. Both great parties harboured deep grievances against the other; and against the wrong of the Khaki Election and its misuse, was set the counter-claim of an unfair Chinese Labour cry.


Sir Henry Campbell-Bannerman was still receiving the resounding acclamations of Liberals, peace-lovers, anti-jingoes, and anti-militarists, in every part of the country, when he was summoned by Sir Edward Grey to attend to business of a very different character. The Algeciras Conference was in its throes. When the Anglo-French Agreement on Egypt and Morocco had first been made known, the German Government accepted the situation without protest or complaint. The German Chancellor, Prince Bülow, had even declared in 1904 that there was nothing in the Agreement to which Germany could take exception. “What appears to be before us is the attempt by the method of friendly understanding to eliminate a number of points of difference which exist between England and France. We have no objection to make against this from the standpoint of German interest.” A serious agitation most embarrassing to the German Government was, however, set on foot by the Pan-German and Colonial parties. Under this pressure the attitude of the Government changed, and a year later Germany openly challenged the Agreement and looked about for an opportunity to assert her claims in Morocco. This opportunity was not long delayed.

Early in 1905 a French mission arrived in Fez. Their language and actions seemed to show an intention of treating Morocco as a French Protectorate, thereby ignoring the international obligations of the Treaty of Madrid. The Sultan of Morocco appealed to Germany, asking if France was authorised to speak in the name of Europe. Germany was now enabled to advance as the champion of an international agreement, which she suggested France was violating. Behind this lay the clear intention to show France that she could not afford in consequence of her agreement with Britain, to offend Germany. The action taken was of the most drastic character. The German Emperor was persuaded to go to Tangiers, and there, against his better judgment, on March 31, 1905, he delivered, in very uncompromising language chosen by his ministers, an open challenge to France. To this speech the widest circulation was given by the German Foreign Office. Hot-foot upon it (April 11 and 12) two very threatening despatches were sent to Paris and London, demanding a conference of all the Signatory Powers to the Treaty of Madrid. Every means was used by Germany to make France understand that if she refused the conference there would be war; and to make assurance doubly sure a special envoy[[1]] was sent from Berlin to Paris for that express purpose.

France was quite unprepared for war; the army was in a bad state; Russia was incapacitated; moreover, France had not a good case. The French Foreign Minister, Monsieur Delcassé, was, however, unwilling to give way. The German attitude became still more threatening; and on June 6 the French Cabinet of Monsieur Rouvier unanimously, almost at the cannon’s mouth, accepted the principle of a conference, and Monsieur Delcassé at once resigned.

So far Germany had been very successful. Under a direct threat of war she had compelled France to bow to her will, and to sacrifice the Minister who had negotiated the Agreement with Great Britain. The Rouvier Cabinet sought earnestly for some friendly solution which, while sparing France the humiliation of a conference dictated in such circumstances, would secure substantial concessions to Germany. The German Government were, however, determined to exploit their victory to the full, and not to make the situation easier for France either before or during the conference. The conference accordingly assembled at Algeciras in January, 1906.

Great Britain now appeared on the scene, apparently quite unchanged and unperturbed by her domestic convulsions. She had in no way encouraged France to refuse the conference. But if a war was to be fastened on France by Germany as the direct result of an agreement made recently in the full light of day between France and Great Britain, it was held that Great Britain could not remain indifferent. Sir Henry Campbell-Bannerman therefore authorised Sir Edward Grey to support France strongly at Algeciras. He also authorised, almost as the first act of what was to be an era of Peace, Retrenchment, and Reform, the beginning of military conversations between the British and French General Staffs with a view to concerted action in the event of war. This was a step of profound significance and of far-reaching reactions. Henceforward the relations of the two Staffs became increasingly intimate and confidential. The minds of our military men were definitely turned into a particular channel. Mutual trust grew continually in one set of military relationships, mutual precautions in the other. However explicitly the two Governments might agree and affirm to each other that no national or political engagement was involved in these technical discussions, the fact remained that they constituted an exceedingly potent tie.