David Lloyd George

Chancellor of the Exchequer.

For 1909-1910 a consider able deficit, of about ii6,000,000, was in prospect. Lloyd George and Winston Churchill were conspicuously in alliance in advocat ing the use of the budget for introducing drastic reforms in regard to licensing and land, which the resistance of the House of Lords prevented the radical party from effecting by ordinary legislation. When Lloyd George, on April 29, introduced his budget, its trenchant character, however, created widespread dismay in the City and among the propertied classes. In a very lengthy speech, which had to be interrupted for half an hour while he recovered his voice, he ended by describing it as a "war budget" against poverty, which he hoped, in the result, would become "as remote to the people of this country as the wolves which once infested its forests." The excitement over the budget entirely monopolized public attention for the year, and while the measure was defended by Lloyd George in parliament with much suavity, and by As quith, Grey and Haldane outside the House of Commons with tact and moderation, the feelings of its opponents were exas perated by a series of denunciatory public speeches at Limehouse and elsewhere from the chancellor of the exchequer, who kindled the passions of the working-classes against the landed classes and the peers. When the Finance Bill went up to the House of Lords, Lord Lansdowne gave notice that on the second reading he would move "that this House is not justified in giving its consent to this bill until it has been submitted to the judgment of the country," and on the last day of November this motion was carried by an overwhelming majority of peers. The government passed a solemn resolution of protest in the House of Commons and appealed to the country; and the general election of January 1910 took place amid unexampled excitement. The Unionists gained a hundred seats over their previous numbers, but the constitutional issue undoubtedly helped the government to vic tory, won indeed the votes of the labour members and Irish nationalists.

Events had now made Lloyd George and his financial policy the centre of the liberal party programme; but party tactics for the moment prevented the ministry, who remained in office, from simply sending the budget up again to the Lords and allowing them to pass it. There was no majority in the Commons for the budget as such, since the Irish nationalists only supported it as an engine for destroying the veto of the Lords and thus preparing the way for Irish Home Rule. Instead, therefore, of proceeding with the budget, the government allowed the financial year to end without one, and brought forward resolutions for curtailing the powers of the Lords, on which, if rejected by them, another ap peal could be made to the people. (See PARLIAMENT.) Hardly, however, had the battle been arrayed when the King's death in May upset all calculations. An immediate continuance of hostil ities between the two Houses was impossible. A truce was called, and a conference arranged between four leaders from each side— Lloyd George being one—to consider whether compromise on the constitutional question was not feasible. The budget for 1909-10 went quietly through, and before the August adjournment the chancellor introduced his budget for 1910-11, discussion being postponed till the autumn. It imposed no new taxation, and left

matters precisely as they were. (X.) The 1910 conference of British party leaders lasted from June till November. The conferring leaders nearly arrived at a very comprehensive and far-reaching scheme of agreement, affecting all the disputed issues—the House of Lords, Home Rule, tariffs and conscription. But the six months of secrecy ended in detach ing the leaders from their followers. While the leaders had passed into a mood of conciliation, the followers were still living in an atmosphere of party warfare. On both sides the proposals put forward were regarded as surrenders.

It is a fit reflection now that, but for the World War, this con ference presented to Great Britain at that moment the last solid alternative to Irish civil war. Lloyd George was ready to come to very bold settlements if they would save the country from civil strife. He and Balfour agreed in this attitude, but party tides still ran too strong.

National Insurance.

In December there took place the second of the two 1910 general elections. The Liberal Government had refused to go to the polls until they obtained the promise of the King that, if they were successful, he would consent to employ his prerogative of peer-making in order to carry the Parliament bill. That promise was reluctantly given by King George V. Lloyd George was returned for Carnarvon Boroughs for the seventh time with an enhanced majority (1,208). But a second national campaign within one year proved too much for his strength, and he was struck down by serious throat trouble for some months. During this compulsory retirement he prepared the National Insurance bill of 1911. This was the first of a series of measures for improving the condition of the British working class by the method of social insurance. The idea was first applied by Bismarck, and Lloyd George had made a study of the German insurance system during a holiday visit to Central Europe in the autumn of 1908. Old age pensions had been al ready passed into law before that visit; and thus it was that the British system of old age pensions originally took a non-contribu tory form.

Lloyd George's first general application of the contributory insurance principle was to sickness and invalidity, and the pro posal produced a formidable social and political crisis in the autumn of 1911. Lloyd George was proposing a new habit to the British people, and at the first shock it was profoundly unpopular.

All classes rose against it. There followed a succession of political revolts; and it seemed as if the combination of forces—of the conservatives—of the press and the public—opposed to the bill would be sufficient to swamp it. By-election after by-election was lost by the Liberal Government. The party managers were in favour of postponement; but Lloyd George held on. He eased the passage of the bill by a series of conferences with all the disturbed parties, and achieved its third reading early in De cember 1911. This was followed by Lloyd George with an Unem ployment Insurance bill which broke new ground. It was extended in subsequent years over the whole working class, and did much to carry the country through the dark years of unemployment which followed the World War.