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case, and Great Britain was plunged in the worst and most painful period of the South African war; and both nations—conscious as we are of one another's infirmities—were inclined to express their opinion about the conduct of the other in unmeasured terms, and keen antagonism resulted. What a contrast to-day! Ever since the King, whose services in the cause of international peace are regarded with affection in every quarter of his dominions, ever since by an act of prescience and of courage his Majesty went to Paris, the relations between Great Britain and France have steadily and progressively improved, and to-day we witness the inspiring spectacle of these two great peoples, the two most genuinely Liberal nations in the whole world, locked together in a league of friendship under standards of dispassionate justice and international goodwill. But it is absurd to suppose that the friendship which we have established with France should be in any degree a menace to any other European Power, or to the great Power of Germany.

      If the prospects on the European continent are bright and tranquil, I think we have reason to feel also contentment at the course of Colonial affairs. We have had unusual difficulties in the Colonies; but in spite of every effort to excite Colonial apprehension for Party purposes against a Liberal Ministry through the instrumentality of a powerful press, the great States of the Empire have felt, and with more assurance every day, that a Liberal Administration in Downing Street will respect their rights and cherish their interests.

      But I am drawn to South Africa by the memory that to-night, the 11th of October, is the anniversary of the declaration of war; and I think it is in South Africa that we have especial reason to be satisfied with the course which events have taken, since we have been in any degree responsible for their direction. One great advantage we have had—a good foundation to build on. We have had the Treaty of Vereeniging, by which peace was established between the Dutch and British races in South Africa upon terms honourable to both. We have had that treaty as our foundation—and what a mercy it is, looking back on the past, to think that the nation followed Lord Rosebery's advice at Chesterfield to terminate the war by a regular peace and a regular settlement, and were not lured away, as Lord Milner would have advised them, when he said that the war in a certain sense would never be over, into a harsh policy of unconditional surrender and pitiless subjugation.

      The work of giving these free Constitutions to the two Colonies in South Africa, so lately independent Republics, is in harmony with the most sagacious instincts, and the most honoured traditions of the Liberal Party. But I notice that Lord Milner, who, as we remember, was once a Liberal candidate,—and who now appears before us sometimes in the guise of a silent and suffering public servant, sometimes in the aspect of an active, and even an acrid, political partisan, haranguing his supporters and attacking his Majesty's Ministers,—Lord Milner describes all this improving outlook as "the dreary days of reaction." Progress and reaction are no doubt relative terms. What one man calls progress another will call reaction. If you have been rapidly descending the road to ruin and you suddenly check yourself, stop, turn back, and retrace your steps, that is reaction, and no doubt your former guide will have every reason to reproach you with inconsistency. And it seems to me not at all unnatural that to one who regards three years' desolating civil war as a period of healthy and inspiring progress, a good deal of what his Majesty's Government have lately done in South Africa must appear very dreary and reactionary indeed.

      But I would recommend you to leave this disconsolate proconsul alone. I do not agree with him when he says that South Africa is passing through a time of trial. South Africa is emerging from her time of trial. The darkest period is behind her. Brighter prospects lie before her. The improvement upon which we are counting is not the hectic flush of a market boom, but the steady revival and accumulation of agricultural and industrial productiveness. Soberly and solemnly men of all parties and of both races in South Africa are joining together to revive and to develop the prosperity of their own country. Grave difficulties, many dangers, long exertions lie before them; but the star of South Africa is already in the ascendant, and I look confidently forward to the time when it will take its place, united, federated, free, beside Canada and Australia, in the shining constellation of the British Empire.

      When we have dealt with subjects which lie outside our own island, let us concentrate our attention on what lies within it, because the gravest problems lie at home. I shall venture to-night to make a few general observations upon those larger trendings of events which govern the incidents and the accidents of the hour. The fortunes and the interests of Liberalism and Labour are inseparably interwoven; they rise by the same forces, and in spite of similar obstacles, they face the same enemies, they are affected by the same dangers, and the history of the last thirty years shows quite clearly that their power of influencing public affairs and of commanding national attention fluctuate together. Together they are elevated, together they are depressed, and any Tory reaction which swept the Liberal Party out of power would assuredly work at least proportionate havoc in the ranks of Labour. That may not be a very palatable truth, but it is a truth none the less.

      Labour! It is a great word. It moves the world, it comprises the millions, it combines many men in many lands in the sympathy of a common burden. Who has the right to speak for Labour? A good many people arrogate to themselves the right to speak for Labour. How many political Flibbertigibbets are there not running up and down the land calling themselves the people of Great Britain, and the social democracy, and the masses of the nation! But I am inclined to think, so far as any body of organised opinion can claim the right to speak for this immense portion of the human race, it is the trade unions that more than any other organisation must be considered the responsible and deputed representatives of Labour. They are the most highly organised part of Labour; they are the most responsible part; they are from day to day in contact with reality. They are not mere visionaries or dreamers weaving airy Utopias out of tobacco smoke. They are not political adventurers who are eager to remodel the world by rule-of-thumb, who are proposing to make the infinite complexities of scientific civilisation and the multitudinous phenomena of great cities conform to a few barbarous formulas which any moderately intelligent parrot could repeat in a fortnight.

      The fortunes of the trade unions are interwoven with the industries they serve. The more highly organised trade unions are, the more clearly they recognise their responsibilities; the larger their membership, the greater their knowledge, the wider their outlook. Of course, trade unions will make mistakes, like everybody else, will do foolish things, and wrong things, and want more than they are likely to get, just like everybody else. But the fact remains that for thirty years trade unions have had a charter from Parliament which up to within a few years ago protected their funds, and gave them effective power to conduct a strike; and no one can say that these thirty years were bad years of British industry, that during these thirty years it was impossible to develop great businesses and carry on large manufacturing operations, because, as everybody knows perfectly well, those were good and expanding years of British trade and national enrichment.

      A few years ago a series of judicial decisions utterly changed the whole character of the law regarding trade unions. It became difficult and obscure. The most skilful lawyers were unable to define it. No counsel knew what advice to tender to those who sought his guidance. Meanwhile if, in the conduct of a strike, any act of an agent, however unauthorised, transgressed the shadowy and uncertain border-line between what was legal and what was not, an action for damages might be instituted against the trade union, and if the action was successful, trade union funds, accumulated penny by penny, year by year, with which were inseparably intermingled friendly and benefit moneys, might in a moment have been swept away. That was the state of the law when his Majesty's present advisers were returned to power. We have determined to give back that charter to the trade unions. The Bill is even now passing through the House of Commons.

      We are often told that there can be no progress for democracy until the Liberal Party has been destroyed. Let us examine that. Labour in this country exercises a great influence upon the Government. That is not so everywhere. It is not so, for instance, in Germany, and yet in Germany there is no Liberal Party worth speaking of. Labour there is very highly organised, and the Liberal Party there has been destroyed. In Germany there exists exactly the condition of affairs, in a Party sense, that Mr. Keir Hardie and his friends are so anxious to introduce here. A great social democratic party on the one hand, are bluntly and squarely face to face with a capitalist and military confederation on the other. That is

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