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Francisco “Pancho” Fierro, Sigue la procesión cívica (1821) [civic procession
celebrating Peruvian independence]. Courtesy of the Pinacoteca Municipal
Ignacio Merino, Lima, Peru. Francisco “Pancho” Fierro Sigue la procesión cívica
de 1821 Pinacoteca Municipal Ignacio Merino. Municipalidad Metropolitana de
Lima
 Re-imagining Democracy in Latin America and the Caribbean, 1780-1870
Eduardo Posada-Carbo (ed.) et al.

https://doi.org/10.1093/oso/9780197631577.001.0001
Published: 2023 Online ISBN: 9780197631607 Print ISBN: 9780197631577

FRONT MATTER

Copyright Page 
https://doi.org/10.1093/oso/9780197631577.002.0004 Page iv
Published: June 2023

Subject: Latin American History

Collection: Oxford Scholarship Online

Oxford University Press is a department of the University of Oxford. It furthers

the University’s objective of excellence in research, scholarship, and education

by publishing worldwide. Oxford is a registered trade mark of Oxford University

Press in the UK and certain other countries.

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Library of Congress Cataloging-in-Publication Data

Names: Posada-Carbó, Eduardo, editor. | Innes, Joanna, editor. | Philp, Mark, editor.

Title: Re-imagining democracy in Latin America and the Caribbean, 1780–1870 /

Eduardo Posada-Carbó, Joanna Innes, Mark Philp.

Description: New York, NY : Oxford University Press, 2023. |

Includes bibliographical references and index.

Identi ers: LCCN 2022062197 (print) | LCCN 2022062198 (ebook) |

ISBN 9780197631577 (hardback) | ISBN 9780197631607 |

ISBN 9780197631591 (epub)

Subjects: LCSH: Democracy—Latin America—History—18th century. |

Democracy—Latin America—History—19th century. | Democracy—Caribbean

Area—History—18th century. | Democracy—Caribbean Area—History—19th

century. | Latin America—Politics and government. | Caribbean

Area—Politics and government.

Classi cation: LCC JL966 .R3834 2023 (print) | LCC JL966 (ebook) |

DDC 320.4729—dc23/eng/20230124

LC record available at https://lccn.loc.gov/2022062197

LC ebook record available at https://lccn.loc.gov/2022062198

DOI: 10.1093/oso/9780197631577.001.0001

Printed by Integrated Books International, United States of America

 Maps

1. Colonial North, Central, and South Iberian America, circa 1800 ix

2. The Colonial Caribbean, 1803 x
3. Mexico, 1824–​1867 xi
4. Central America, “Gran Colombia,” and the Greater Caribbean, 1830 xii
5. Emergent Powers around the Former Viceroyalty of the River Plate: The Era of
Independence (c1800–​1830s) xiii
6. South America, 1862 xiv
Map 1. Colonial North, Central, and South Iberian America, circa 1800
Map 2. The Colonial Caribbean, 1803
Map 3. Mexico, 1824–1867
Map 4. Central America, “Gran Colombia,” and the Greater Caribbean, 1830
Map 5. Emergent Powers around the Former Viceroyalty of the River Plate: The
Era of Independence (c1800-1830s)
Map 6. South America, 1862
 Re-imagining Democracy in Latin America and the Caribbean, 1780-1870
Eduardo Posada-Carbo (ed.) et al.

https://doi.org/10.1093/oso/9780197631577.001.0001
Published: 2023 Online ISBN: 9780197631607 Print ISBN: 9780197631577

FRONT MATTER

Preface and Acknowledgments 

Published: June 2023

Subject: Latin American History

Collection: Oxford Scholarship Online

The present and future of democracy now arouse more anxiety and apprehension than they did in 2004
when we rst began work on the larger “Re-imagining Democracy” project, to which this book contributes.
At that time, prevailing attitudes were still colored by the triumphalism of 1989. Perhaps this shift has been
less disconcerting for us than for some, because it has always been a premise of our project that democracy
is not one given thing, still less a cast-iron formula for success, but rather a cluster of related ideas, fears,
aspirations and practices associated with the ever-challenging task of enabling people to live together
without doing too much damage and to some mutual bene t. Looking at how people have struggled with
these challenges in the past is not always encouraging, but it does provide perspective.

Historiographically, we are guided by three main ambitions. First, to explore ways of conceptualizing the
history of democracy—a challenge, when the concept is so mutable. Our solution to that (further explained
in our rst introductory chapter) has been to take the word as a guide to what we should be writing about—
to follow the word where it takes us, all the while paying attention to the kinds of work that the word was
used to do, and to the environments in which it was employed. A second ambition is to illuminate more
particularly the history of “democracy” and its applications through the late eighteenth and rst part of the
nineteenth century—the period in which (as we think) the ancient Greek, subsequently medieval Latin word
was “re-imagined” for modern use, in which the word and its cognates came to be employed relatively
routinely and consistently, in signi cant parts of the world, to assess features of the contemporary political
scene. Third, building on our early research ndings, we aim to show that this process of re-imagining
democracy took place roughly simultaneously across Europe and both Americas. These were regions in
which the word was known at the start of the period, at least to an educated few, then was employed in
attempts to describe, understand, and shape contemporary events, and as a result passed into more general
use. We do not think that “democracy” was comprehensively re-imagined in one part of this region and this
p. xvi understanding thence disseminated elsewhere. Rather, we think what unfolded were a series of
intercommunicating, but to a signi cant extent independent, learning processes, eventuating in varied
patterns of understanding and use. In this volume, we aim to explore how those learning processes were
worked through in Latin America and the Caribbean.

Eduardo Posada-Carbó was part of the support team for the previous Mediterranean book in the Re-
imagining Democracy series, and this volume has also been the product of teamwork, though di erent
members of the team have played di erent roles. Eduardo has provided intellectual leadership, recruiting
 specialists for a variety of workshops and conference panels, forging links with contributors, and then
supplying expert input at all stages of the book’s production. Joanna Innes and Mark Philp have learned
most of what they know about the region from attending these events (and doing associated reading). They
have also played important roles in shaping the book, intellectually and presentationally. Joanna in
particular has kept the project on track and ensured that the essays achieve coherence and sustain dialogue
with each other. Joanna has also done most of the editorial work on the chapters, though always in
consultation with Eduardo and Mark.

Our funders have helped to make this book possible. Thanks to the Oxford John Fell Fund and the History
Faculty’s Sanderson Fund, we were able to conduct our rst conference to discuss plans for the book, in
Oxford, on March 23–24, 2017. Thanks to the Astor Fund, we held a seminar on our project with Jeremy
Adelman (Astor Visiting Professor) in October that year. Thanks to a research grant from Brasenose College,
we were able to host a book seminar with the contributors on January 24–25, 2020.

The Latin American History seminar at the University of Oxford has provided a venue for many helpful
presentations and discussions—and we are grateful for the funding provided by the Latin American Centre
at the Oxford School of Global and Area Studies on those occasions. Panels at the annual Latin American
Studies Association studies conference also supplied opportunities to bring together contributors and other
interested parties over several years, and we are grateful to the Association for providing the organizational
framework for these meetings, and to all those who gave papers and joined in discussion. The Oxford
Maison Française hosted one of our reading-group sessions, and we are grateful for its hospitality. Thanks
to the Journal of Iberian and Latin American Studies, in particular to its editor Gregorio Alonso, we were able to
publish a “dossier” on the subject comprising some early contributions. We were fortunate to hold our last
p. xvii planned contributors’ meeting in January 2020, before the onset of the pandemic, though some of our
work on the volume was disrupted by its e ects.

In addition to the authors of the chapters, a good number of colleagues participated in the various meetings
we organized in the development of this project, or advised us in other ways, and we are grateful for their
valuable contributions. With apologies to anyone we have inadvertently omitted, we would like to thank
Jeremy Adelman, Cristóbal Aljovín de Losada, Israel Arroyo, Arthur Asseraf, Ben A Bollig, José Brownrigg-
Gleeson, Francesco Buscemi, Gonzalo Butrón Prida, Alvaro Caso Bello, Celso Castilho, Gonzalo Capellán,
Martin Castro, Martin Conway, Michaela Coletta, Joanna Crow, Laura Cucchi, Malcolm Deas, Rolando de la
Guardia, Michael Drolet, David Doyle, Rosie Doyle, Rebecca Earle, Marcela Echeverri, Lisa Edwards, John
Elliott, Andrés Estefane, Javier Fernández Sebastián, Ludovic Frobert, Luis Gabriel Galán Guerrero, Klaus
Gallo, Karina Galperin, Carrie Gibson, Peter Hill, Graciela Iglesias-Rogers, Iván Jaksić, Andre Jockyman
Roithmann, Halbert Jones, Maurizio Isabella, Vitor Izecksohn, Alan Knight, Raymond Lavertue, Fabrice
Lehoucq, Annick Lempérière, Marcus Llenque, Tom Long, Jorge Luengo, Giuseppe Marcocci, Brian McBeth,
Viviana Mellone, Pablo Mijangos, Alfonso Moreno, Isadora Mota, Je rey D. Needell, Juan Ignacio Neves,
Hussein Omar, Ana María Otero, Gabriel Paquette, Carlos Pérez Ricart, Frank Sa ord, Jesús Sanjurjo,
Frédéric Spillemaeker, James Sta ord, Cecilia Tarruell, Clément Thibaud, Victor Uribe-Urán, Rebeca
Viguera Ruiz, Sarah Washbrook, and Laurence Whitehead.

We are grateful to the Pinacoteca Municipal Ignacio Merino in Lima, Peru, for allowing us to reproduce
Francisco “Pancho” Fierro’s watercolor, Sigue la procesión cívica (1821), which serves as the cover for our
book—we want to acknowledge in particular the valuable assistance of Mary Takahashi Huamancaja, Katia
Miluzca Alzamora Arce and Jessica Adriana Clemente Tejada. The editors would also like to join Paula Alonso
and Marcela Ternavasio in thanking Erika R. Hosselkus, Curator, Latin American, Early Modern and Modern
European, and Map Collections, Rare Books and Special Collections, Hesburgh Libraries, University of Notre
Dame, for facilitating the selection and reproduction of some of the illustrations included in Chapter 8.
 Benjamin Rymer provided invaluable help with the index. We are also grateful to members of OUP’s New
p. xviii York editorial o ce and the production team for shepherding our book through to publication.
 Re-imagining Democracy in Latin America and the Caribbean, 1780-1870
Eduardo Posada-Carbo (ed.) et al.

https://doi.org/10.1093/oso/9780197631577.001.0001
Published: 2023 Online ISBN: 9780197631607 Print ISBN: 9780197631577

FRONT MATTER

Contributors 
Published: June 2023

Subject: Latin American History

Collection: Oxford Scholarship Online

José Antonio Aguilar Rivera is Professor of Political Science at the División de Estudios Políticos, CIDE
(Mexico City). He has been a visiting fellow at the Kellogg Institute for International Studies, University
of Notre Dame, and the Institute for Advanced Studies, Warwick University, and a visiting scholar at the
École des Hautes Études en Sciences Sociales, Paris, as well as a Fulbright Scholar. He is the author of,
among other books: El sonido y la furia. La persuasión multicultural en México y Estados Unidos; En pos de la
quimera: re exiones sobre el experimento constitucional atlántico; La geometría y el mito. Un ensayo sobre la
libertad y el liberalismo en México, 1821–1970; and Ausentes del Universo. Re exiones sobre el pensamiento
político hispanoamericano en la era de la construcción nacional, 1821–1850. He is the editor of Liberty in
Mexico: Writings on Liberalism from the Early Republican Period to the Second Half of the Twentieth Century
and Las bases sociales del crimen organizado y la violencia en México. He has also authored articles in the
Journal of Latin American Studies, Historia Mexicana, Revista de Occidente, and Cardozo Law Review, among
others. He publishes regularly in Nexos, a leading Mexican intellectual magazine.

Paula Alonso is Associate Professor of History and International A airs at the George Washington
University and (correspondence) member of the Argentine National Academy of History. A historian of
Latin American politics and print culture, her publications include Between Revolution and the Ballot Box.
The Origins of the Argentine Radical Party in the 1890s (translated into Spanish); Jardines secretos,
legitimaciones públicas. El Partido Autonomista Nacional y la política argentina de nes de siglo XIX (2010);
(ed.) Construcciones Impresas: Pan etos, diarios y revistas en la formación de los estados nacionales en América
Latina, 1820-1920; and co-editor of El sistema federal argentino. Debates y coyunturas (1860-1910). Her
articles have also appeared in the Journal of Latin American Studies and the Hispanic American Historical
Review. She is currently writing a book-length history of Argentina, and is working on a research project
on the history of democracy in Argentina and the Atlantic World, 1860–1930.

Nancy P. Appelbaum is Professor of History and Latin American and Caribbean Studies at Binghamton
University, State University of New York. Her research asks: How have Latin Americans de ned and
experienced race, region, and migration? How have inequalities been inscribed on landscapes and in
national imaginaries? How have race and gender played into the formation of Latin American nations and
regions? Her book Mapping the Country of Regions: The Chorographic Commission of Colombia examines
p. xx how mid-nineteenth-century geographers envisioned the racial and territorial composition of the
country that would become Colombia. An earlier monograph, Muddied Waters: Race, Region, and Local
 History in Colombia, examines agrarian and regional history from the perspectives of a multiracial
community in Colombia’s co ee region over the late nineteenth and early twentieth centuries. She also
co-edited Race and Nation in Modern Latin America. Her books and articles have received prizes and
honorable mentions from the New England Council on Latin American Studies, the Latin American
Studies Association, the Berkshire Conference of Women Historians, and the Conference on Latin
American History. She received her PhD from the University of Wisconsin.

Joanna Innes has retired from her Oxford teaching post but holds the status of Senior Research Fellow at
Somerville College Oxford, and Professor of Modern History at the University of Oxford. She was the
originator, with Mark Philp, of the Re-imagining Democracy project, and has co-edited with him related
books on America, France, Britain, and Ireland (2013), and the Mediterranean (2018). Her other research
and publications have mainly concerned British social policy and more broadly political culture in the
eighteenth and early nineteenth centuries. Some of her work on the eighteenth century was collected in
Inferior Politics: Social Problems and Social Policies in Eighteenth-Century Britain; she is at work on a new
book on changes in the social policy agenda and policymaking processes in the very late eighteenth and
early nineteenth centuries.

Emmanuel Lachaud is an Assistant Professor of History at the City College of New York, City University of
New York. He received his PhD from Yale University in 2021, where his thesis focused on the origins of the
second Haitian Empire and the politics of freedom in the mid-nineteenth-century Caribbean and
Atlantic. His current manuscript builds on this initial research, bringing light to the relatively under-
studied imperial moment through a dialogue with the rich elds of emancipation studies, Latin American
studies, and Atlantic studies. He explores the pan-island state-building processes of Haiti and the
Dominican Republic, as well as post-slavery sociopolitical culture among peasant and urban poor
populations in the region.

Anthony McFarlane is Emeritus Professor of History, University of Warwick. His research has focused on
the history of Spanish America during the period c.1700–c.1850, especially the regions of Colombia and
Ecuador. It includes studies of Colombia’s economic history in the late colonial and early republican
periods, the history of rebellions, slave resistance, and crime in the late colonial period, and the
movements for independence in the early nineteenth century. He has published extensively on these
subjects, on the comparative history of late colonial Spanish America, on British American colonial
history, and on the history of violence and warfare in Spanish America. His books include Colombia before
Independence: Economy, Society and Politics under Bourbon Rule; The British in the Americas, 1480–1815; and
War and Independence in Spanish America.

p. xxi Nicola Miller is Professor of Latin American History in the History Department at University College
London and currently director of the UCL Institute of Advanced Studies. She recently held a Leverhulme
Trust Major Research Fellowship to work on a history of nation-building knowledge in Spanish America
during the century after independence. Her ndings were published as Republics of Knowledge. She has
also worked on the intellectual and cultural histories of Latin American countries from a transnational
perspective, for example in America Imagined: Explaining the United States in Nineteenth-Century Europe
and Latin America (ed. with Axel Körner and Adam I. P. Smith), and “Reading Rousseau in Spanish
America during the wars of independence (1808–1826),” in Engaging with Rousseau (ed. Avi Lifschitz).

Juan Luis Ossa has worked at the Centro de Estudios Públicos (Santiago, Chile) as a full-time researcher
since March 2020. He obtained his BA in History from the Ponti cia Universidad Católica de Chile, and his
DPhil in Modern History from St Antony’s College at the University of Oxford. Between 2011 and 2018, he
was the executive director of the Centro de Estudios de Historia Política at the Universidad Adolfo Ibáñez
(Santiago, Chile). His research has focused on the political history of nineteenth-century Chile and Latin
America, with special emphasis on independence and the process of state-building. He has published in
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 the passing of this Act, existing in, to, or in respect of,
any dignity, title of honour, or property, and no act or thing
lawfully done or omitted before the passing of this Act shall
be prejudicially affected nor shall any will be deemed to have
been revoked by reason of any marriage heretofore contracted
as aforesaid being made valid by this Act.

"3.
(1) Nothing in this Act shall remove wives from the class
of persons adultery with whom constitutes a right, on the
part of wives, to sue for divorce under the Matrimonial
Causes Act, 1857.

"(2) Notwithstanding anything contained in this Act or the

Matrimonial Causes Act, 1857, it shall not be lawful for a
man to marry the sister of his divorced wife, or of his
wife by whom he has been divorced, during the lifetime of
such wife.

"4. Nothing in this Act shall relieve a clergyman in holy

orders of the Church of England from any ecclesiastical
censure to which he would have been liable if this Act had not
been passed by reason of his having contracted or hereafter
contracting a marriage with his deceased wife’s sister.

"5. In this Act the word ‘sister’ shall include a sister of

the half-blood."

ENGLAND: A. D. 1907.
Probation of Offenders Act.

See (in this Volume)

CRIME AND CRIMINOLOGY: PROBATION.

ENGLAND: A. D. 1907.
French testimony to the good work of the English in Egypt.
 See EGYPT: A. D. 1907 (JANUARY).

ENGLAND: A. D. 1907 (April-May).

Conference of Imperial and Colonial Ministers at London.
Discussing Preferential Trade, Imperial Defence, and other
subjects.
Resolutions adopted.

See (in this Volume)

BRITISH EMPIRE: A. D. 1907.

ENGLAND: A. D. 1907 (May).

Proposed Councils Bill for Ireland rejected by the Irish
National Party.

See (in this Volume)

IRELAND: A. D. 1907 (May).

ENGLAND: A. D. 1907 (July).

Capture of Kaid Sir Harry MacLean in Morocco for ransom, by
Raisuli.

See (in this Volume)

MOROCCO: A. D. 1904-1909.

ENGLAND: A. D. 1907 (August).

Convention with Russia containing arrangements on the
subject of Persia, Afghanistan, and Tibet.

See EUROPE: A. D. 1907 (AUGUST).

ENGLAND: A. D. 1907 (August).

Establishment of a Court of Criminal Appeal.

See (in this Volume)

LAW, AND ITS COURTS: ENGLAND.
{237}

ENGLAND: A. D. 1907 (August).

Qualification of women for election to County and
Borough Councils.

See (in this Volume)

ELECTIVE FRANCHISE: WOMAN SUFFRAGE.

ENGLAND: A. D. 1907 (August).

Patents and Designs Act.

See (in this Volume)

PATENTS.

ENGLAND: A. D. 1907 (November).

Abortive Compromise Education Bill.

See (in this Volume)

EDUCATION: ENGLAND: A. D. 1907 (November).

ENGLAND: A. D. 1907 (November).

Treaty with France, Germany, Norway, and Russia guaranteeing
the integrity of Norway.

See ENGLAND:
EUROPE: A. D. 1907-1908.

ENGLAND: A. D. 1907 (November).

Treaty with France concerning Death Duties.

See (in this Volume)

DEATH DUTIES.

ENGLAND: A. D. 1907-1908.
Institution of the Territorial Force.
 See (in this Volume)
WAR, THE PREPARATIONS FOR: MILITARY.

ENGLAND: A. D. 1907-1908.
Proposals in the House of Lords of Reform in its Constitution.

Consequent, no doubt, on the increase of popular hostility to

the House of Lords which it had provoked by its dealing with
the Education Bill of 1906, and the serious threatenings of an
undertaking in the House of Commons to "end or mend" it as a
branch of Parliament, the Lords, in 1907, gave thought among
themselves to the expediency of a constitutional reformation
of their House. In February, a bill was proposed to them by
Lord Newton which provided in its first two articles as
follows:

"1.
(1) After the termination of the present session of
Parliament a writ of summons to attend and to sit and vote
in the House of Lords shall not be issued to any temporal
peer of the peerage of England entitled by descent to an
hereditary seat in the House of Lords (in this Act referred
to as an hereditary peer), unless he is a representative or
a qualified hereditary peer within the meaning of this Act,
nor to any lord spiritual, unless he is a representative
lord spiritual within the meaning of this Act."

"2.
For the purposes of this Act the expression ‘qualified
hereditary peer’ means an hereditary peer who possesses any
of the qualifications specified in the First Schedule to
this Act."

The schedule referred to was as follows:

"QUALIFICATIONS ENTITLING AN HEREDITARY PEER TO A

WRIT
OF SUMMONS:
I. The holding at any time of any of the following Offices:—

1. High judicial office, within the meaning of the

Appellate Jurisdiction Acts, 1876 and 1887.

2. The office of First Lord of the Treasury, Secretary of

State, Chancellor of the Exchequer, President of the
Council, or Head (not being a permanent Civil Servant) of
any other Government Department.

3. The office of Lord Lieutenant of Ireland, and Secretary

to the Lord Lieutenant.

4. Office of Viceroy of India, or a Governor of the

Presidency of Madras or Bombay, or of Lieutenant-Governor
of any Province of India.

5. Office of Governor-General of the Dominion of Canada or

of the Commonwealth of Australia, or of High Commissioner
of South Africa, or of Governor of any Colony.

6. The Office of Parliamentary Under Secretary,

Parliamentary Secretary, or permanent Under Secretary, in
any Government Department.

7. Office of Lord of the Admiralty or member of the Army

Council.

8. Office of Minister plenipotentiary, or any higher

office, in His Majesty’s Diplomatic Service.

9. Office of Vice-Admiral, or any higher office, in His

Majesty’s Naval Forces, or of Lieutenant-General, or any
higher office, in His Majesty’s Land Forces.

"II. Election to serve in the House of Commons on not less

than two occasions before succeeding to the peerage."

In addition to the hereditary peers thus qualified to sit in

the House of Lords as proposed to be reformed, the Bill
provided for the election by the peers, from their own number,
of representatives, to the extent of one-fourth of their whole
number; and likewise for the election by the lords spiritual,
from their ranks, of representatives in the same proportion of
number; such representatives to form part of the House of
Lords in Parliament. It authorized, further, the appointment
by the King of peers for life, to be "peers of Parliament,"
these never to exceed one hundred in number.

Debate on the Bill in May resulted in the substitution for it

of a resolution, that "a Select Committee be appointed to
consider the suggestions which have from time to time been
made for increasing the efficiency of the House of Lords in
matters affecting legislation, and to report as to the
desirability of adopting them, either in their original or in
some modified form." The report of the Committee (twenty-five
in number, having Lord Rosebery for its elected chairman) was
not brought in until near the close of the following year. Its
recommendations were considerably on the lines of the Bill
described above. It suggested that the reformed House of Lords
should be made up of three classes of members, namely,
hereditary peers who had held certain high public offices—
much the same as those scheduled in Lord Newton’s Bill; two
hundred representative "Peers of Parliament," elected from the
whole body of the peerage, not for life, but for a single
Parliament, and ten lords spiritual, to include the two
archbishops and eight bishops to be elected. The
self-governing colonies, in the judgment of the Committee,
should be represented in the House of Lords, and twenty years
of service in the House of Commons should entitle an Irish
peer to a seat in it.

The plan submitted by the Committee would reduce the House

 from 617 members to about 350. No action has been taken on the
report.

ENGLAND: A. D. 1907-1908.
The Small Holdings Act.
The first year of its operation.

In 1907 an Act passed Parliament which provided for the

acquisition by local authorities of land to be divided into
small holdings for sale or lease to buyers or tenants who
could not otherwise be placed on it for self-support. The
results from the first year’s operation of the Act was
reported in September, 1909, by the Board of Agriculture and
Fisheries, which administers the law. The following are
statements from the report of the Board:

"Stated shortly, the result, so far as small holdings are

concerned, of the first year’s work since the Small Holdings
and Allotments Act, 1907, came into operation has been that
23,285 applications have been received by county councils for
373,601 acres, that 13,202 applicants have been approved
provisionally as suitable, that the estimated quantity of land
required for the suitable applicants is 185,098 acres, that
21,417 acres have been acquired by county councils, of which
11,346 acres have been purchased for £370,965, and 10,071
acres leased for total rents amounting to £11,209, that the
land acquired will provide for about 1,500 of the applicants,
and that 504 of them were in actual possession of their
holdings on December 31, 1908.

{238}

"It may seem at first sight that the progress that has been
made in satisfying the keen demand for small holdings which
the Act has disclosed has been small, but the figures do not
give at all an adequate idea of the amount of work that has
been actually done. It must be remembered that practically the
 whole of the first six months of the year were occupied in the
preliminary work of constituting committees, issuing forms,
receiving and tabulating applications and holding local
inquiries, and that until this work was completed little
progress could be made in the acquisition of land. … The rate
at which land is being acquired is now increasing rapidly, and
we have little doubt that by Michaelmas, 1909, not less than
50,000 acres will have been obtained. In addition to the
holdings which have been provided by county councils, the
returns we have obtained show that over 700 applicants have
been supplied with holdings by landowners direct, mainly
through the intervention of the councils.

"In considering the results already accomplished it must also

be borne in mind that the problem is to fit particular men to
particular land, and not merely to acquire whatever land may
be in the market and to offer it in small holdings. The great
majority of the applicants desire land in close proximity to
their homes, and it is obviously more difficult to acquire a
large number of detached plots than to take a whole farm or
estate and divide it into a number of small holdings. …

"A striking feature of the applications made under the Act has
been the small extent to which the applicants desire to
purchase their holdings. Out of the 23,295 applications
received during the year, only 629, or 2.7 per cent.,
expressed a desire to purchase. … The Act imposes no direct
obligation on councils to provide houses, but we are of
opinion that where an applicant desires a holding to which he
will devote his whole time and from which he will get his
whole living councils should be prepared to erect a house and
the necessary buildings."

ENGLAND: A. D. 1907-1908 (December-March).

Appeals to other Powers for effective measures to
rescue Macedonia from its dreadful state.
 See (in this Volume)
TURKEY: A. D. 1905-1908.

ENGLAND: A. D. 1907-1909.
Anglo-Russian action in Persia.

See (in this Volume)

PERSIA: A. D). 1907, and after.

ENGLAND: A. D. 1907-1909.
The Campaign of the Militant Woman Suffragists or Suffragettes.

See (in this Volume)

ELECTIVE FRANCHISE: WOMAN SUFFRAGE.

ENGLAND: A. D. 1907-1909.
The disaffection in India.
Its character, causes, and meaning.
Hindu and Moslem feeling.
The past of British Government and its fruits.

See (in this Volume)

INDIA: A. D. 1907-1909.

ENGLAND: A. D. 1907-1909.
Negotiation by the President of the Board of Trade of a
General System of Conciliation and Arbitration Boards for
Settlement of Labor Disputes in the Railway Service.

See (in this Volume)

LABOR ORGANIZATION: ENGLAND: A. D. 1907-1909.

ENGLAND: A. D. 1908.
Estimate of King Edward VII. as a Diplomatist.

Mr. Isaac N. Ford, the American newspaper correspondent in

London, has much well-informed opinion in Europe and America
 to support him in the following estimate of the diplomatic
influence exerted by King Edward, which he expressed in
January, 1908:

"At the opening of King Edward’s reign Berlin was the center
of European diplomacy, as Paris had been when Bismarck entered
upon his series of machinations and triumphs. The personal
ascendency of the German Emperor was unchallenged in Europe. …
In the course of seven years conditions have been transformed.
London is now the diplomatic capital of Europe. Resentful
enemies like France have been reconciled; friendships with
America, Austria-Hungary, Italy, and Spain have been
strengthened; strained relations with Russia and Germany have
been eased; and by the alliance with Japan forces have been
readjusted for the maintenance of existing order in the
Pacific. A new balance of power has been established in
Europe, and the diplomatic resources of the British Empire
have been reinvigorated and enlarged. While there have been
eminent statesmen in the British Foreign Office—Lord Lansdowne
and Sir Edward Grey—these transformations have been mainly
King Edward’s work. Fifty years hence there may be a true
sense of proportion, so that his services as an empire-builder
and a peace-maker can be judged aright."

ENGLAND: A. D. 1908.
Invitation of an International Naval Conference preliminary
to the establishment of an International Prize Court.

See (in this Volume)

WAR, THE REVOLT AGAINST: A. D. 1907
(appended to account of Second Peace Conference
at The Hague).

ENGLAND: A. D. 1908.
Municipal and County Offices opened to Women.

See (in this Volume)

 ELECTIVE FRANCHISE: WOMAN SUFFRAGE.

ENGLAND: A. D. 1908.
North Sea and Baltic agreements.

See (in this Volume)

EUROPE: A. D. 1908.

ENGLAND: A. D. 1908.
Passage of the Coal Mines Eight Hours Act.

See (in this Volume)

LABOR PROTECTION: HOURS OF LABOR.

ENGLAND: A. D. 1908.
Rejection of the Liberal Licensing Bill by the House of Lords.

See (in this Volume)

ALCOHOL PROBLEM: ENGLAND: A. D. 1908.

ENGLAND: A. D. 1908 (March).

Communication to the Belgian Government respecting obligations
involved in its proposed annexation of the Congo State.

See (in this Volume)

CONGO STATE: A. D. 1906-1909.

ENGLAND: A. D. 1908 (April).

Resignation and Death of Prime Minister
Sir Henry Campbell-Bannerman.
Succession of Herbert H. Asquith.

Sir Henry Campbell-Bannerman was forced by ill health to

resign the premiership on the 5th of April, 1908, and his
death occurred on the 22d of the same month. He was succeeded
in the headship of the Government by Mr. Herbert H. Asquith,
previously Chancellor of the Exchequer, whose place in the
 latter office was filled by Mr. David Lloyd-George. Mr.
Lloyd-George had been President of the Board of Trade, and
that office was now filled by Mr. Winston Churchill, while Mr.
Reginald McKenna became First Lord of the Admiralty.

ENGLAND: A. D. 1908 (April).

Treaty with Denmark, France, Germany, the Netherlands, and
Sweden for maintenance of the Status Quo on the North Sea.

See (in this Volume)

EUROPE: A. D. 1907-1908.

ENGLAND: A. D. 1908 (April).

Treaty with the United States respecting the Demarcation of
the International Boundary between the United States and Canada.

See (in this Volume)

CANADA: A. D. 1908 (APRIL).

{239}

ENGLAND: A. D. 1908 (September).

Withdrawal of intervention in Macedonia.

See (in this Volume)

TURKEY: A. D. 1908 (JULY-DECEMBER).

ENGLAND: A. D. 1908 (December).

Passage of "The Children Act."

See (in this Volume)

CHILDREN, UNDER THE LAW: AS DEPENDENTS AND
OFFENDERS.

ENGLAND: A. D. 1908 (December).

The Shipbuilding Agreement between Employers and
Trade Unions to prevent strikes and lockouts.
 See (in this Volume)
LABOR ORGANIZATION: ENGLAND: A. D. 1908.

ENGLAND: A. D. 1908-1909.
Attitude on the question of the Austrian annexation of
Bosnia and Herzegovina.

See (in this Volume)

EUROPE: A. D. 1908-1909 (OCTOBER-MARCH).

ENGLAND: A. D. 1908-1909.
Old Age Pensions Act.
Its working.
Its disclosures of poverty.

See (in this Volume)

POVERTY, PROBLEMS OF: PENSIONS, &c.

ENGLAND: A. D. 1908-1909.
Passage of the Indian Councils Bill.
Its provisions for popular representation in the
Legislative Councils of India.

See (in this Volume)

INDIA: A. D. 1908-1909.

ENGLAND: A. D. 1909.
Chief source of Food Supplies.

See (in this Volume)

ARGENTINE REPUBLIC: A. D. 1909.

ENGLAND: A. D. 1909.
Concentration of Wealth.

See (in this Volume)

 WEALTH, THE PROBLEMS OF.

ENGLAND: A. D. 1909.
Development and Road Improvement Funds Act.

See (in this Volume)

CONSERVATION OF NATURAL RESOURCES: GREAT BRITAIN.

ENGLAND: A. D. 1909.
Naval questions.
"Dreadnought" building.
Distrust of Germany.
The Territorial Force, etc.

See (in this Volume)

WAR, THE PREPARATIONS FOR.

ENGLAND: A. D. 1909.
Official reports and statements concerning Public Education.

See (in this Volume)

EDUCATION: ENGLAND: A. D. 1909.

ENGLAND: A. D. 1909.
Passage of the Housing and Town-planning Act.

See (in this Volume)

SOCIAL BETTERMENT: ENGLAND: A. D. 1909.

ENGLAND: A. D. 1909.
Principal Socialist organizations.

See (in this Volume)

SOCIALISM.

ENGLAND: A. D. 1909.
Report of Royal Commission on the working of the Poor Laws
 and Relief Systems, and the existing pauperism of the
United Kingdom.

See (in this Volume)

POVERTY.

ENGLAND: A. D. 1909.
Summary of the total prospective military defensive strength
of the Empire.

See (in this Volume)

BRITISH EMPIRE: A. D. 1909.

ENGLAND: A. D. 1909 (January).

The Waterways Treaty with the United States, concerning
waters along the Canadian boundary.

See (in this Volume)

CANADA: A. D. 1909 (JANUARY).

ENGLAND: A. D. 1909 (February).

The Opening of Parliament.

The session of Parliament was opened by the King with due form
and ceremony on February 16. "The Royal procession from
Buckingham Palace to Westminster," says a report of the
occasion, "took place in the dim grey light of a typical
February afternoon, and the pageant lost much of its beauty in
consequence. In spite of the cold wind and the absence of the
genial sunshine which is such a valuable asset on occasions of
spectacular display, there appeared to be as many people as
ever along the route of the procession. These formal openings
of Parliament, which have become customary since the beginning
of the present reign, are clearly popular with those of the
King’s subjects who know nothing, except by hearsay, of the
impressive scenes which are to be witnessed in the House of
Lords. The immense crowds who assembled to watch the King and
 Queen pass yesterday, waiting patiently for hours in order to
enjoy a few minutes’ ecstatic sight-seeing, welcomed their
Majesties with a cordiality of the meaning of which there
could be no doubt. The King and Queen, in their wonderful gold
coach, with its sides of glass, must have been gratified with
the respect and affection which were manifested from all
quarters."

ENGLAND: A. D. 1909 (February).

Debate in Parliament on the annexation of the
Congo State by Belgium.
Recognition of the annexation dependent on reforms.

See (in this Volume)

CONGO STATE: A. D. 1906-1909.

ENGLAND: A. D. 1909 (February).

Represented in International Opium Commission at Shanghai.

See (in this Volume)

OPIUM PROBLEM.

ENGLAND: A. D. 1909 (March).

Representation of the People Bill.
Proposed Universal Suffrage, including women.
Its second reading.

On the 20th of March, 1909, the second reading of a bill

described as "the Representation of the People Bill" was moved
and seconded in the House of Commons. Its provisions were
substantially for universal suffrage, including women. In
explaining the measure, the member who moved the second
reading—a representative of the Labor party, Mr. Howard—said:

"It was difficult, if not almost impossible, to deal with a

reform of the franchise without at the same time dealing with
woman suffrage, and it was difficult to deal with woman
enfranchisement without at the same time making some
alteration in the existing franchise law which should meet the
condition of the new elements proposed to be placed on the
register. The House must face the situation as a whole and
handle the two reforms in one scheme, because by a
coordinated Bill there would be a better chance of getting
nearer a settlement. In the Bill that he submitted to the
House there was no abolition of any old franchise. It proposed
to create a residential franchise in order to do away with the
hardships which any one with a knowledge of registration knew
to exist in connexion with the occupation vote of men. The
second clause provided for a restriction of plural voting, and
the third clause related to the removal of the sex
disqualification."

Before debate began another member presented a monster

petition against the political enfranchisement of women, said
to contain 243,000 signatures.

The attitude of the Government toward the bill was explained

by Mr. Asquith, the Premier. It was well known, he said, that
on the issue whether women should be granted the suffrage
Ministers were not of one mind. But they were strongly in
favour of a wide reform of the existing suffrage. They desired
the abolition of plural voting, the disappearance of the
artificial distinctions between occupiers and lodgers, the
material shortening of the period of qualification, and an
effective simplification of the machinery of registration. But
any measure to bring about these reforms ought, in his
opinion, if it was to take its place on the Statute-book, to
proceed from the responsible Government of the day, and to be
carefully remoulded in the light of prolonged Parliamentary
discussion. For these reasons he thought it was not necessary
that the members of the Government should vote for the second
reading of the Bill under consideration.
 After some hours of debate the closure was moved and the
second reading of the bill was carried by 157 votes against
122.

{240}

ENGLAND: A. D. 1909 (March).

Defeat of the Progressives in the London County
Council Election.

See (in this Volume)

LONDON: A. D. 1909 (MARCH).

ENGLAND: A. D. 1909 (March).

Cession by Siam of suzerainty over three States
in the Malay Peninsula.

See (in this Volume)

SIAM: A. D. 1909.

ENGLAND: A. D. 1909 (March-July).

The question of " Dreadnought" building, with reference to
the accelerated expansion of the German Navy.
Debates in Parliament and excitement in the country.

See (in this Volume)

WAR, THE PREPARATIONS FOR: NAVAL.

ENGLAND: A. D. 1909 (April).

The National Debt of the United Kingdom.

The following official statement of the national debt of the

United Kingdom was published in April, 1909:

"On the 1st April, 1908, the aggregate gross liabilities of

the State amounted to £762,326,051. On the 1st April, 1909,
the corresponding figure was £754,121,309, showing a reduction
 of £8,204,742.

ENGLAND: A. D. 1909 (April).

Announced Governmental projects of Afforestation, and other
measures for Development of Natural Resources.

See (in this Volume)

CONSERVATION OF NATURAL RESOURCES: GREAT BRITAIN.

ENGLAND: A. D. 1909 (April-December).

Mr. Lloyd-George’s Budget.
Its features of taxation, denounced as Socialistic.
Seven months of vehement debate.
Adopted by the Commons and rejected by the Lords.
Warnings to the Lords against their action.
Preparation for appeal to the people.

The 29th of April, 1909, when the financial proposals of the

Government for meeting the needs of the coming year, called
"the Budget," were brought before Parliament, and the 30th of
the following November, when, after seven months of arduous
and angry debate, and after their adoption by a great majority
of the Commons, the Bill embodying them was overwhelmingly
rejected by the Lords, will be memorable dates in English
history if the consequences of the action of the Peers are
what, at this writing, they seem likely to be. Even failing
those consequences, the production of the Budget will be in
itself an event of no small moment, from what it signifies of
the development of democracy in Great Britain.

As a formulated "Finance Bill," the Budget was not submitted

to the House of Commons and to the public in print until the
28th of May. It was then entitled "A Bill to grant certain
Duties of Customs and Inland Revenue (including Excise), to
alter other Duties, and to amend the Law relating to Customs
and Inland Revenue (including Excise), and the National Debt,
and to make other provisions for the Financial Arrangements of
the Year." Until then its provisions were known only from the
statement of them made four weeks before by the Chancellor of
the Exchequer, Mr. David Lloyd-George, in a speech extended
through several hours, which even his opponents were forced to
characterize as "a wonderful effort."

The Chancellor’s explanation of the Budget rested primarily on

the fact that an anticipated deficit of £15,762,000 required
to be filled from new sources of revenue. Of the main causes
of the deficit he said: "Were I dealing with a shortage due
only to a temporary cause like forestalments, I might have
resorted to some temporary shift which would have carried me
over until next year when the revenue would resume its normal
course. But unfortunately I have to reckon not merely with an
enormous increase in expenditure this year, but an inevitable
expansion of some of the heaviest items in the course of the
coming years. What is the increase of expenditure due to? It
is very well known that it must be placed to the credit of two
items, and practically two items alone. One is the Navy, and
the other is old-age pensions. Now I have one observation
which I think I am entitled to make about both. … The
increased expenditure under both these heads was substantially
incurred with the unanimous assent of all political parties in
this House. There was, it is true, a protest entered on behalf
of honourable members below the gangway against increased
expenditure in the Navy, but as far as the overwhelming
majority of members in this House are concerned the increase
has received their sanction and approval. I am entitled to say
more. The attitude of the Government towards these two
branches of increased expenditure has not been one of rushing
a reluctant House of Commons into expense which it disliked,
but rather of resisting appeals coming from all quarters of
the House for still further increases under both heads. …

"We are told that we ought not to have touched old-age

pensions, at least not at the present moment, when heavy
liabilities were in sight in connexion with the defence of the
 country. I may point out that when we introduced our Old-Age
Pensions Bill that emergency had not arisen. But, apart
altogether from that, we had no honourable alternative left.
We simply honoured a cheque drawn years ago in favour of the
aged poor, which bore at its foot the signatures of all the
leaders of political parties in this country. They had all
promised pensions at election after election, and great
political parties have no right to make promises to poor
people in return for political support, valuable to them, and
all these people had to give, and then time after time return
the bill with ‘No assets’ written across it."

Proceeding next to survey the "inevitable expansion" of future

expenditure to which he had referred at the outset, and which
could be foreseen in connection with the navy and with social
reform, the Chancellor dealt at length on the demands that
were pressing from the latter side and would not be postponed.
"What the Government have to ask themselves," he said, "is
this: Can the whole subject of further social reform be
postponed until the increasing demands made upon the National
Exchequer by the growth of armaments has ceased? Not merely
can it be postponed, but ought it to be postponed? Is there
the slightest hope that if we deferred consideration of the
matter we are likely within a generation to find any more
favourable moment for attending to it? I confess that, as to
that, I am rather pessimistic. And we have to ask ourselves
this further question—If we put off dealing with these social
sores are the evils which arise from them not likely to grow
and to fester until finally the loss which the country
sustains will be infinitely greater than anything it would
have to bear in paying the cost of an immediate remedy?
{241}
There are hundreds of thousands of men, women, and children in
this country now enduring hardships for which the sternest
judge would not hold them responsible; hardships entirely due
to circumstances over which they have not the slightest
command—the fluctuations and changes of trade, or even of
fashions, ill-health, and the premature breakdown or death of
the bread-winner. … Last year, while we were discussing the
Old-Age Pensions Bill, all parties in this House recognized
fully and freely that once we had started on these lines the
case for extension was irresistible. The leader of the
Opposition, in what I venture to regard as the most notable
speeches he has probably delivered during this Parliament,
recognized quite boldly that, whichever party was in power,
provision would have to be made in some shape or other for
those who are out of work through no fault of their own, and
those who are incapacitated for work owing to physical causes
for which they are not responsible."

The speaker then developed at length the intentions of the

Government on these lines of social reform, which will have to
include undertakings of some system like the German, of
compulsory insurance against sickness, accident and
unemployment, and which will have to look to the organization
of labor exchanges and to the opening of wider fields for
employment, by development of neglected resources of the
country, through afforestation, through promotion of
agriculture, and the extension and improvement of roads.

And now, at last, he began to unfold his plans for raising the
means with which to deal with all these augmented demands on
the Government, and started them with a schedule of increased
taxes on automobiles. Further details of his scheme are
summarized in the following, from The Times "Review of
Parliament," next morning:

"The right honourable gentleman was listened to with intense

attention when he proceeded to announce an increase of the
income-tax and of the estate duty. He proposed that for earned
incomes under £2,000 the tax should remain at 9d. but that
between £2,000 and £3,000 it should be 1s., and that all other
incomes now liable to the shilling tax should pay 1s. 2d.
Holding that the family man was entitled to more relief than
the bachelor, he proposed that on all incomes under £500, in
addition to existing abatements, a special abatement should be
allowed of £10 for every child under 16 years of age. He hoped
to get £160,000 by the partial restoration of the shilling
duty and £3,000,000 from the additional 2d. on the higher
incomes. There was also to be a super-tax on incomes exceeding
£5,000, to be levied on the amount by which such incomes
exceeded £3,000. The tax would be at the rate of 6d. in the
pound. Exclamations denoting great disapproval arose from the
Unionist benches when this was announced. The yield from this
super-tax, Mr. Lloyd-George explained, would be in a full year
£2,300,000; but this year not more than £500,000. He next came
to the Death duties. There would be no change in the case of
estates up to £5,000, but between this limit and the limit of
two millions graduation would be steepened. The duty on
estates between £5,000 and £10,000 would be 4 per cent.;
"between £10,000 and £20,000, 5 per cent.; £20,000 to £40,000,
6 per cent.; £40,000 to £70,000, 7 per cent.; £70,000 to
£100,000, 8 per cent.; £100,000 to £150,000, 9 per cent.;
£150,000 to £200,000, 10 per cent.; £200,000 to £400,000, 11
per cent.; £400,000 to £600,000, 12 per cent.; £600,000 to
£800,000, 13 per cent.; £800,000 to £1,000,000, 14 per cent.,
and above £1,000,000, 15 per cent. This new scale was
estimated to yield £2,550,000 this year, £4,200,000 next year,
and afterwards £4,400,000. The settled Estate duty he raised
from 1 per cent. to 2 per cent. From this source he hoped to
get £50,000 this year and £375,000 in 1910-1911. The Legacy
and Succession duty was to be raised in some cases from 3 per
cent. to 5 per cent., and in all others to 10 per cent. The
yield from this next year would be £1,300,000, and would
increase in the course of time to £2,150,000. Property
alienated inter vivos within five years from death was
to be liable to duty. Objects of national and scientific
interest would only be chargeable for duty when they were
actually sold. There were to be increased duties in bonds to
bearer and in stock and share transfers. The estimated yield
from the increased Stamp Duties would be this year £650,000.
"It was at this point in his speech that the Chancellor of the
Exchequer required rest and that the sitting was suspended.
When in half-an-hour’s time it was resumed, the right
honourable gentleman continued his speech with renewed vigour.
He dealt at considerable length with the subject of licenses,
dwelling on the value of the monopoly granted to the liquor
trade and arguing that the toll exacted by the public was
ludicrously inadequate. He explained in detail a number of
changes which he proposed to effect, the chief being a uniform
charge of 50 per cent., subject to a minimum rate in
urban areas according to population. For clubs there would be
a poundage rate of 3d. on the amount taken for the sale of
liquor. The yield from his revision of the liquor licensing
law would be £2,600,000.

"Then he turned to land, drawing a marked distinction between

the agricultural landowner and the urban landowner, of whom he
spoke with some scorn. He proposed to levy a tax on the value
accruing to land in the future through the enterprise of the
community, taking the land apart from buildings and other
improvements. This duty of 20 per cent. on unearned increment
would be payable on two occasions—when land was sold and when
land passed at death. A preliminary valuation of the land at
the price which it might be expected to fetch at the present
time would be necessary; and as the tax was to be imposed only
on the unearned increment subsequently accruing on that
valuation, the yield would probably be only £50,000 in 1909,
but in future years it should prove a fruitful source of
revenue. It was further proposed to levy an annual duty of one
halfpenny in the pound on the capital value of undeveloped
land and undeveloped minerals. Until the proposed valuation of
the land of the United Kingdom on a capital basis was
completed, it would be impossible to estimate the yield of
this duty, but till then the duty would be calculated on the
declarations of the owners, and in the current year he
expected it to bring in £350,000. A 10 per cent. reversion
 duty was to be imposed on any benefit accruing to a lessor on
the termination of a lease, and from this source a yield of
£100,000 was anticipated. The three land taxes were,
accordingly, calculated to produce £500,000 in the current
year.

{242}

"He next dealt with indirect taxation. He proposed to raise

the present duty on spirits by 3s. 9d. per gallon. This would
justify an increase in the retail price of whisky of one
half-penny per glass, which would recoup the publican for the
additional duty and leave him something more to mitigate the
pressure of the new duties on licenses. The yield, during the
current year, he estimated at £1,600,000. He also proposed to
increase the duty on unmanufactured tobacco from 3s. to 3s.
8d. per lb., with equivalent additions to the rates for
cigars, cigarettes, and manufactured tobacco, the return from
which he estimated at £1,900,000 during the current year and
£2,250,000 for a full year.

"The total estimated revenue was £162,590,000 and the total

estimated expenditure £162,102,000, leaving a margin of
£488,000 for contingencies. In conclusion, the right
honourable gentleman—anticipating the charge that he was
imposing very heavy taxation for a time of peace—declared it
was a war Budget. The Government had declared implacable war
against poverty. It was 8 o’clock when the right honourable
gentleman finished, amid the cheers of his supporters."

That Mr. Lloyd-George’s Budget was a gage of battle and that

the fight over it was fierce is known to everybody, for the
din of the conflict penetrated to every corner of every land.
The key-note of the outcry against it was sounded in The
Times of next morning, which opened its editorial comment
with these words:
"One general impression will be very widely made by the
complicated and portentous Budget which Mr. Lloyd-George
expounded at enormous length yesterday. That is that the huge
deficit of nearly sixteen millions is to be raised almost
exclusively at the cost of the wealthy and the fairly
well-to-do. They are struck at in all sorts of ways, through
the income-tax, the legacy duties, the estate duties, the
stamps upon their investments, their land, their royalties,
their brewery dividends, and their motor-cars. So when Mr.
Lloyd-George exclaims rather theatrically—‘Mr. Emmott, this
is a war Budget,’ his words carry a meaning which he did not
intend. He talks of waging war against poverty, but that is
never really waged by unjust exactions from those whose custom
prevents a worse poverty than any we know; and whose brains
and capital count for at least as much as thews and sinews.
Unless men exempt from income-tax either smoke or drink, they
do not pay a single penny towards making up a deficit mainly
due to a pension scheme of which they reap the whole benefit.
The doctrine of social ransom has never been carried quite so
far."

So it was branded by its opponents as a "Socialist Budget" and

its authors as allies of Socialism, throughout the campaign.
This denunciation was applied especially to the tax on
unearned increments of value in land, as such increments
should occur hereafter. On that point of opposition to the
Budget Mr. Asquith, the Prime Minister of the Government,
speaking at a public meeting in London, had this to say: "The
increment duty is a tax of 20 per cent. on the increase in the
capital value of certain kinds of land which is shown on the
occasion of its transfer or devolution, and which is not
attributable to the efforts or to the expenditure either of
the owner or the occupier. That is what the increment duty is.
Now what is it not? I spoke a few moments ago of certain
classes of land. Let me ask you to observe, first, what are
the kinds of landed property which are altogether exempted
from the scope of this taxation. In the first place, all
agricultural land which has no building value above its
agricultural value; next, small properties occupied by their
owners; thirdly, property belonging to local authorities;
again, property held for public or charitable purposes; and,
finally, property belonging to statutory companies, such as
railways, which cannot be used for other than statutory
purposes. …

"Now, suppose the case of land which does not fall within any
of those exempted categories, how is the duty charged? Here,
again, there is a great deal of misapprehension about it, so
it is better to state the case as clearly as one can. You
start with the site value of the land at the present moment,
and by site value—I am not going into technicalities—we mean,
roughly speaking, the value of the land divested of the
buildings. You do not go back into the past, you take things
as they are; you do not rip up the previous history; you do
not interfere with existing or past contracts. You give to
every man, however he has acquired it, the full and
undisturbed enjoyment of the rights, privileges, and property
which he at present possesses. Starting with that datum line,
you will see that in years to come, when that piece of land is
transferred by sale—it may be by lease—or devolves upon death,
the site value (you are comparing like with like, mind you) at
that date—that is to say, the value after giving the owner and
every one who has been interested in the land credit for all
expenditure they have made in the way of improvement and
development in the interval—comparing site with site, if you
find an increment in value there, you say that it is an
increment due to the community, to social causes, to causes
over which the owner was no more responsible than you or I,
and that it is not unfair in point of justice, and that it is
in the highest degree expedient in point of policy that the
State should be entitled to claim for itself in relief of the
necessities of the same community some part—not any
exaggerated or exorbitant part—but some part, of the increment
which has so accrued. I may point out that there is no duty
 chargeable at all. So tender has my friend Mr. Lloyd-George
(laughter and cheers) been to the interests concerned—he is a
man of a most sympathetic nature—sometimes I am disposed to
think he is of almost too impressionable a nature when appeals
of this kind are addressed to him—so tender has he been of all
these interests that he has agreed that no duty should be
chargeable unless the increment value amounts to at least 10
per cent., and where it is over, the first 10 per cent. should
escape free. That is the increment duty which Lord Rothschild
tells you—I think I am not misquoting him—is rank and
undiluted Socialism, and which Lord Lansdowne says is going to
shake the very foundations of civilized society. …

{243}

"The propriety and justice of taxing this kind of increment,

in the case of these classes of land, rests upon the most
solid ground both of authority and experience. It has been
advocated for generations by the most eminent economists. It
has been recommended in one shape or another by more than one
Royal Commission. It was approved in principle more than once
even by the late non-progressive House of Commons. It has been
put in practice in various forms for local purposes in not a
few Continental municipalities and in many of our own
Colonies, and, I believe, always with successful results. And
let me add, by way of climax to that catena of authority, that
it is at this moment, or at any rate was a few weeks ago, the
alternative proposal put forward by the Conservative party in
the Reichstag in Germany—an increment duty, not for local but
for Imperial purposes, was the alternative proposal to the
Budget of Prince Bülow put forward by the Conservative party
in the Reichstag in Germany, and this is rank Socialism!"

Next to the proposed land taxes, the most bitterly opposed

feature of the Budget was the increased revenue to be exacted
from the licensed monopolists of the liquor trade. Everything,
however, in its new taxation was denounced by the
Conservatives, who set against it their own project of
obtaining increased revenues by returning to the protective
tariff which England had abandoned three-quarters of a century
ago. The cry for what they preferred to call "tariff reform"
had been silenced since the election of 1906, when the
electors of the Kingdom rejected Mr. Chamberlain's revived
protectionism by an overwhelming vote. Now it was raised
again, and fully made the prime article in the Conservative
creed, as it had not been before.

It was not until the 4th of November that the Finance Bill was
brought to its third reading in the House of Commons, and was
passed, by the heavy majority of 379 to 149. From the
beginning it was known, of course, that the measure had few
friends in the House of Lords, and would go down in defeat
there if the Peers ventured to assume the right to negative a
money Bill. For many generations they had not disputed the
claim of the Commons to exclusive control of revenue
legislation; but a theory had now been mooted, that Mr.
Lloyd-George’s Budget Bill differed from a mere money Bill by
carrying Socialistic implications tacked on to it, which the
House of Lords was under no obligation to accept. Whether the
Lords would or would not be bold enough to act on this theory
and throw down the Bill, as they had thrown down so much of
the non-financial legislation of the Liberal Government, had
been a serious question throughout the debates. Sir Edward
Grey said of it, in a speech at Leeds, in August:

"As to the fate of the Budget—Is it going to be destroyed by

the House of Lords or is it not? The leaders of the Tory
party—with whom the decision rests—are very cautious in
expressing their opinions. Some of the rank and file have said
the House of Lords is going to destroy the Budget, or have
spoken as if it were so. But the leaders—Mr. Balfour, Lord
Lansdowne, and so forth—have been very cautious. They are
great partisans in this matter of the open door, or, perhaps I
should say, of two open doors. They have studiously kept two
doors open, and as far as Lord Lansdowne’s utterances go, he
has kept the door open for passing the Budget in the House of
Lords or rejecting it. He says the House of Lords is bound to
decide so that the people should be properly consulted, and
that that is the function of the House of Lords, to protect
the right of the people to have their say on the subject. A
very nice function if only it was performed impartially; but
when it is a function which has been in abeyance for the
greater part of the last 20 years, and is only to be erected
into operation when a Liberal Government comes into office, it
is not a function for which we can have much respect. But,
nevertheless, it is so in our Constitution at present that the
House of Lords is a weapon—a great gun, if you like to call it
so—which can be pointed only against Liberal measures—not
against Conservative measures—and which is in the hands of the
Conservative party. Now there is the Budget going presently to
the House of Lords; there is the gun pointing when it arrives
there; there is the Conservative finger on the trigger. Are
they going to fire the gun or not? They do not know themselves
yet. They are debating in their own minds what will happen if
they fire the gun. Will they destroy the Budget, or will the
recoil be more injurious to themselves? Or, perhaps, will the
gun burst altogether if they let it off? We know what their
wishes and inclinations are; what we do not know at the
present time is how much nerve they have got. But of this I am
convinced—whatever the House of Lords may do, when the time
comes for an appeal to the country, it will be an appeal on
this Budget as a Free Trade Budget, and against the
alternative of tariff reform.

Others among the prominent Liberals spoke with more temper of

the threatened action of the Lords. Mr. Winston Churchill, for
example, at Leicester, in September, said: "The rejection of
the Budget by the House of Lords … would be a violent rupture
of constitutional custom and usage extending over 300 years
and recognized during all that time by the leaders of every
party in the State. It would involve a sharp and sensible