There are those, it may be contended, who are not, and never will be, worth a full efficiency wage. Whatever is done to secure them such a remuneration will only involve net loss. Hence it violates our standard of economic justice. It involves payment for a function of more than it is actually worth, and the discrepancy might be so great as to cripple society. It must,[Pg 206] of course, be admitted that the population contains a certain percentage of the physically incapable, the mentally defective, and the morally uncontrolled. The treatment of these classes, all must agree, is and must be based on other principles than those of economics. One class requires punitive discipline, another needs life-long care, a third—the mentally and morally sound but physically defective—must depend, to its misfortune, on private and public charity. There is no question here of payment for a function, but of ministering to human suffering. It is, of course, desirable on economic as well as on broader grounds that the ministration should be so conceived as to render its object as nearly as possible independent and self-supporting. But in the main all that is done for these classes of the population is, and must be, a charge on the surplus. The real question that may be raised by a critic is whether the considerable proportion of the working class whose earnings actually fall short, as we should contend, of the minimum, could in point of fact earn that minimum. Their actual value, he may urge, is measured by the wage which[Pg 207] they do in fact command in the competitive market, and if their wage falls short of the standard society may make good the deficiency if it will and can, but must not shut its eyes to the fact that in doing so it is performing, not an act of economic justice, but of charity. To this the reply is that the price which naked labour without property can command in bargaining with employers who possess property is no measure at all of the addition which such labour can actually make to wealth. The bargain is unequal, and low remuneration is itself a cause of low efficiency which in turn tends to react unfavourably on remuneration. Conversely, a general improvement in the conditions of life reacts favourably on the productivity of labour. Real wages have risen considerably in the last half century, but the income-tax returns indicate that the wealth of the business and professional man has increased even more rapidly. Up to the efficiency minimum there is, then, every reason to think that a general increase of wages would positively increase the available surplus whether that surplus goes to individuals as profits or to the State as[Pg 208] national revenue. The material improvement of working-class conditions will more than pay its way regarded purely as an economic investment on behalf of society. This conclusion is strengthened if we consider narrowly what elements of cost the "living wage" ought in principle to cover. We are apt to assume uncritically that the wages earned by the labour of an adult man ought to suffice for the maintenance of an average family, providing for all risks. It ought, we think, to cover not only the food and clothing of wife and children, but the risks of sickness, accident, and unemployment. It ought to provide for education and lay by for old age. If it fails we are apt to think that the wage earner is not self supporting. Now, it is certainly open to doubt whether the actual addition to wealth made by an unskilled labourer denuded of all inherited property would equal the cost represented by the sum of these items. But here our further principle comes into play. He ought not to be denuded of all inherited property. As a citizen he should have a certain share in the social inheritance. This share should be his support[Pg 209] in the times of misfortune, of sickness, and of worklessness, whether due to economic disorganization or to invalidity and old age. His children's share, again, is the State-provided education. These shares are charges on the social surplus. It does not, if fiscal arrangements are what they should be, infringe upon the income of other individuals, and the man who without further aid than the universally available share in the social inheritance which is to fall to him as a citizen pays his way through life is to be justly regarded as self-supporting. The central point of Liberal economics, then, is the equation of social service and reward. This is the principle that every function of social value requires such remuneration as serves to stimulate and maintain its effective performance; that every one who performs such a function has the right, in the strict ethical sense of that term, to such remuneration and to no more; that the residue of existing wealth should be at the disposal of the community for social purposes. Further, it is the right, in the same sense, of every person capable of performing some useful social [Pg 210]function that he should have the opportunity of so doing, and it is his right that the remuneration that he receives for it should be his property, i. e. that it should stand at his free disposal enabling him to direct his personal concerns according to his own preferences. These are rights in the sense that they are conditions of the welfare of its members which a well-ordered State will seek by every means to fulfil. But it is not suggested that the way of such fulfilment is plain, or that it could be achieved at a stroke by a revolutionary change in the tenure of property or the system of industry. It is, indeed, implied that the State is vested with a certain overlordship over property in general and a supervisory power over industry in general, and this principle of economic sovereignty may be set side by side with that of economic justice as a no less fundamental conception of economic Liberalism. For here, as elsewhere, liberty implies control. But the manner in which the State is to exercise its controlling power is to be learnt by experience and even in large measure by cautious experiment. We have sought to determine the [Pg 211]principle which should guide its action, the ends at which it is to aim. The systematic study of the means lies rather within the province of economics; and the teaching of history seems to be that progress is more continuous and secure when men are content to deal with problems piecemeal than when they seek to destroy root and branch in order to erect a complete system which has captured the imagination. It is evident that these conceptions embody many of the ideas that go to make up the framework of Socialist teaching, though they also emphasize elements of individual right and personal independence, of which Socialism at times appears oblivious. The distinction that I would claim for economic Liberalism is that it seeks to do justice to the social and individual factors in industry alike, as opposed to an abstract Socialism which emphasizes the one side and an abstract Individualism which leans its whole weight on the other. By keeping to the conception of harmony as our clue we constantly define the rights of the individual in terms of the common good, and think of the common good in terms of the welfare of[Pg 212] all the individuals who constitute a society. Thus in economics we avoid the confusion of liberty with competition, and see no virtue in the right of a man to get the better of others. At the same time we are not led to minimize the share of personal initiative, talent, or energy in production, but are free to contend for their claim to adequate recognition. A Socialist who is convinced of the logical coherence and practical applicability of his system may dismiss such endeavours to harmonize divergent claims as a half-hearted and illogical series of compromises. It is equally possible that a Socialist who conceives Socialism as consisting in essence in the co-operative organization of industry by consumers, and is convinced that the full solution of industrial problems lies in that direction, should in proportion as he considers the psychological factors in production and investigates the means of realizing his ideal, find himself working back along the path to a point where he will meet the men who are grappling with the problems of the day on the principles here suggested, and will find himself able to move forward in practice in the front ranks of economic Liberalism. If this is so, the growing co-operation of political Liberalism[Pg 213] and Labour, which in the last few years has replaced the antagonism of the 'nineties, is no mere accident of temporary political convenience, but has its roots deep in the necessities of Democracy. FOOTNOTE: [12] It is true that so long as it remains possible for a certain order of ability to earn £50,000 a year, the community will not obtain its services for £5,000. But if things should be so altered by taxation and economic reorganization that £5,000 became in practice the highest limit attainable, and remained attainable even for the ablest only by effort, there is no reason to doubt that that effort would be forthcoming. It is not the absolute amount of remuneration, but the increment of remuneration in proportion to the output of industrial or commercial capacity, which serves as the needed stimulus to energyMuch more difficult in principle is the question of the more general elements of social value which run through production as a whole. We are dealing here with factors so intricately interwoven in their operation that[Pg 194] they can only be separated by an indirect process. What this process would be we may best understand by imagining for a moment a thoroughgoing centralized organization of the industrial system endeavouring to carry out the principles of remuneration outlined above. The central authority which we imagine as endowed with such wisdom and justice as to find for every man his right place and to assign to every man his due reward would, if our argument is sound, find it necessary to assign to each producer, whether working with hand or brain, whether directing a department of industry or serving under direction, such remuneration as would stimulate him to put forth his best efforts and would maintain him in the condition necessary for the life-long exercise of his function. If we are right in considering that a great part of the wealth produced from year to year is of social origin, it would follow that, after the assignment of this remuneration, there would remain a surplus, and this would fall to the coffers of the community and be available for public purposes, for national defence, public works, education, charity, and the furtherance of civilized life. [Pg 195] Now, this is merely an imaginary picture, and I need not ask whether such a measure of wisdom on the part of a Government is practically attainable, or whether such a measure of centralization might not carry consequences which would hamper progress in other directions. The picture serves merely to illustrate the principles of equitable distribution by which the State should be guided in dealing with property. It serves to define our conception of economic justice, and therewith the lines on which we should be guided in the adjustment of taxation and the reorganization of industry. I may illustrate its bearing by taking a couple of cases. One important source of private wealth under modern conditions is speculation. Is this also a source of social wealth? Does it produce anything for society? Does it perform a function for which our ideal administration would think it necessary to pay? I buy some railway stock at 110. A year or two later I seize a favourable opportunity and sell it at 125. Is the increment earned or unearned? The answer in the single case is clear, but it may be said that my good fortune in this case may be balanced by ill luck[Pg 196] in another. No doubt. But, to go no further, if on balance I make a fortune or an income by this method it would seem to be a fortune or an income not earned by productive service. To this it may be replied that the buyers and sellers of stocks are indirectly performing the function of adjusting demand and supply, and so regulating industry. So far as they are expert business men trained in the knowledge of a particular market this may be so. So far as they dabble in the market in the hope of profiting from a favourable turn, they appear rather as gamblers. I will not pretend to determine which of the two is the larger class. I would point out only that, on the face of the facts, the profits derived from this particular source appear to be rather of the nature of a tax which astute or fortunate individuals are able to levy on the producer than as the reward which they obtain for a definite contribution on their own part to production. There are two possible empirical tests of this view. One is that a form of collective organization should be devised which should diminish the importance of the speculative market. Our principle would suggest the propriety of an attempt in that direction[Pg 197] whenever opportunity offers. Another would be the imposition of a special tax on incomes derived from this source, and experience would rapidly show whether any such tax would actually hamper the process of production and distribution at any stage. If not, it would justify itself. It would prove that the total profit now absorbed by individuals exceeds, at least by the amount of the tax, the remuneration necessary to maintain that particular economic function. The other case I will take is that of inherited wealth. This is the main determining factor in the social and economic structure of our time. It is clear on our principle that it stands in quite a different position from that of wealth which is being created from day to day. It can be defended only on two grounds. One is prescriptive right, and the difficulty of disturbing the basis of the economic order. This provides an unanswerable argument against violent and hasty methods, but no argument at all against a gentle and slow-moving policy of economic reorganization. The other argument is that inherited wealth serves several indirect [Pg 198]functions. The desire to provide for children and to found a family is a stimulus to effort.

THE FUTURE OF LIBERALISM

The nineteenth century might be called the age of Liberalism, yet its close saw the fortunes of that great movement brought to their lowest ebb. Whether at home or abroad those who represented Liberal ideas had suffered crushing defeats. But this was the least considerable of the causes for anxiety. If Liberals had been defeated, something much worse seemed about to befall Liberalism. Its faith in itself was waxing cold. It seemed to have done its work. It had the air of a creed that is becoming fossilized as an extinct form, a fossil that occupied, moreover, an awkward position between two very active and energetically moving grindstones—the upper grindstone of plutocratic imperialism, and the nether grindstone of social democracy. "We know all about you," these parties seemed to say to Liberalism; "we have been right through you[Pg 215] and come out on the other side. Respectable platitudes, you go maundering on about Cobden and Gladstone, and the liberty of the individual, and the rights of nationality, and government by the people. What you say is not precisely untrue, but it is unreal and uninteresting." So far in chorus. "It is not up to date," finished the Imperialist, and the Socialist bureaucrat. "It is not bread and butter," finished the Social democrat. Opposed in everything else, these two parties agreed in one thing. They were to divide the future between them. Unfortunately, however, for their agreement, the division was soon seen to be no equal one. Whatever might be the ultimate recuperative power of Social Democracy, for the time being, in the paralysis of Liberalism, the Imperial reaction had things all to itself. The governing classes of England were to assert themselves. They were to consolidate the Empire, incidentally passing the steam roller over two obstructive republics. They were to "teach the law" to the "sullen new-caught peoples" abroad. They were to re-establish the Church at home by the endowment of doctrinal education. At the same time they were to establish[Pg 216] the liquor interest—which is, after all, the really potent instrument of government from above. They were to bind the colonies to us by ties of fiscal preference, and to establish the great commercial interests on the basis of protection. Their government, as conceived by the best exponents of the new doctrine, was by no means to be indifferent to the humanitarian claims of the social conscience. They were to deal out factory acts, and establish wages boards. They were to make an efficient and a disciplined people. In the idea of discipline the military element rapidly assumed a greater prominence. But on this side the evolution of opinion passed through two well-marked phases. The first was the period of optimism and expansion. The Englishman was the born ruler of the world. He might hold out a hand of friendship to the German and the American, whom he recognized as his kindred and who lived within the law. The rest of the world was peopled by dying nations whose manifest destiny was to be "administered" by the coming races, and exploited by their commercial syndicates. This mood of optimism did not survive the South African War. It received its death-blow at Colenso[Pg 217] and Magersfontein, and within a few years fear had definitely taken the place of ambition as the mainspring of the movement to national and imperial consolidation. The Tariff Reform movement was largely inspired by a sense of insecurity in our commercial position. The half-patronizing friendship for Germany rapidly gave way, first to commercial jealousy, and then to unconcealed alarm for our national safety. All the powers of society were bent on lavish naval expenditure, and of imposing the idea of compulsory service on a reluctant people. The disciplined nation was needed no longer to dominate the world, but to maintain its own territory.

Now, we are not concerned here to follow up the devious windings of modern Conservatism. We have to note only that what modern democracy has to face is no mere inertia of tradition. It is a distinct reactionary policy with a definite and not incoherent creed of its own, an ideal which in its best expression—for example, in the daily comments of the Morning Post—is certain to exercise a powerful attraction on many generous minds—the ideal of the efficient, disciplined nation, centre and dominating force of a powerful, self-contained,[Pg 218] militant empire. What concerns us more particularly is the reaction of Conservative development upon the fortunes of democracy. But to understand this reaction, and, indeed, to make any sound estimate of the present position and prospects of Liberalism, we must cast a rapid glance over the movement of progressive thought during the last generation. When Gladstone formed his second Government in 1880 the old party system stood secure in Great Britain. It was only a band of politicians from the other side of St. George's Channel who disowned both the great allegiances. For the British political mind the plain distinction of Liberal and Conservative held the field, and the division was not yet a class distinction. The great Whig families held their place, and they of the aristocratic houses divided the spoil. But a new leaven was at work. The prosperity which had culminated in 1872 was passing away. Industrial progress slowed down; and, though the advance from the "Hungry 'Forties" had been immense, men began to see the limit of what they could reasonably expect from retrenchment and Free Trade. The work of Mr. Henry George awakened new interest in[Pg 219] problems of poverty, and the idealism of William Morris gave new inspiration to Socialist propaganda. Meanwhile, the teaching of Green and the enthusiasm of Toynbee were setting Liberalism free from the shackles of an individualist conception of liberty and paving the way for the legislation of our own time. Lastly, the Fabian Society brought Socialism down from heaven and established a contact with practical politics and municipal government. Had Great Britain been an island in the mid-Pacific the onward movement would have been rapid and undeviating in its course. As it was, the new ideas were reflected in the parliament and the cabinet of 1880-1885, and the Radicalism of Birmingham barely kept on terms with the Whiggery of the clubs. A redistribution of social forces which would amalgamate the interests of "property" on the one side and those of democracy on the other was imminent, and on social questions democracy reinforced by the enfranchisement of the rural labourers in 1884 stood to win. At this stage the Irish question came to a head. Mr. Gladstone declared for Home Rule, and the party fissure took place on false lines. The upper and[Pg 220] middle classes in the main went over to Unionism, but they took with them a section of the Radicals, while Mr. Gladstone's personal force retained on the Liberal side a number of men whose insight into the needs of democracy was by no means profound. The political fight was for the moment shifted from the social question to the single absorbing issue of Home Rule, and the new Unionist party enjoyed twenty years of almost unbroken supremacy. Again, had the Home Rule issue stood alone it might have been settled in 1892, but meanwhile in the later 'eighties the social question had become insistent. Socialism, ceasing to be a merely academic force, had begun to influence organized labour, and had inspired the more generous minds among the artisans with the determination to grapple with the problem of the unskilled workmen. From the Dockers' strike of 1889 the New Unionism became a fighting force in public affairs, and the idea of a Labour party began to take shape. On the new problems Liberalism, weakened as it already had been, was further divided, and its failure in 1892 is to be ascribed far more to this larger cause than to the dramatic personal incident of the Parnell divorce. In office[Pg 221] without legislative power from 1892 to 1895, the Liberal party only experienced further loss of credit, and the rise of Imperialism swept the whole current of public interest in a new direction. The Labour movement itself was paralyzed, and the defeat of the Engineers in 1897 put an end to the hope of achieving a great social transformation by the method of the strike. But, in the meanwhile, opinion was being silently transformed. The labours of Mr. Charles Booth and his associates had at length stated the problem of poverty in scientific terms. Social and economic history was gradually taking shape as a virtually new branch of knowledge. The work of Mr. and Mrs. Sidney Webb helped to clear up the relations between the organized efforts of workmen and the functions of the State. The discerning observer could trace the "organic filaments" of a fuller and more concrete social theory.

On the other hand, in the Liberal ranks many of the most influential men had passed, without consciousness of the transition, under the sway of quite opposite influences. They were becoming Imperialists in their sleep, and it was only as the implications of Imperialism[Pg 222] became evident that they were awakened. It was with the outbreak of the South African War that the new development of Conservative policy first compelled the average Liberal to consider his position. It needed the shock of an outspoken violation of right to stir him; and we may date the revival of the idea of justice in the party as an organized force from the speech in the summer of 1901 in which Sir Henry Campbell-Bannerman set himself against the stream of militant sentiment and challenged in a classic phrase the methods of the war. From the day of this speech, which was supposed at the time to have irretrievably ruined his political career, the name of the party-leader, hitherto greeted with indifference, became a recognized signal for the cheers of a political meeting, and a man with no marked genius but that of character and the insight which character gave into the minds of his followers acquired in his party the position of a Gladstone. This was the first and fundamental victory, the reinstatement of the idea of Right in the mind of Liberalism. Then, as the Conservative attack developed and its implications became apparent, one interest after another of the older[Pg 223] Liberalism was rudely shaken into life. The Education Act of 1902 brought the Nonconformists into action. The Tariff Reform movement put Free Trade on its defence, and taught men to realize what the older economics of Liberalism had done for them. The Socialists of practical politics, the Labour Party, found that they could by no means dispense with the discipline of Cobden. Free Trade finance was to be the basis of social reform. Liberalism and Labour learned to co-operate in resisting delusive promises of remedies for unemployment and in maintaining the right of free international exchange. Meanwhile, Labour itself had experienced the full brunt of the attack. It had come not from the politicians but from the judges, but in this country we have to realize that within wide limits the judges are in effect legislators, and legislators with a certain persistent bent which can be held in check only by the constant vigilance and repeated efforts of the recognized organ for the making and repeal of law. In destroying the old position of the Trade Unions, the judges created the modern Labour party and cemented its alliance with Liberalism. Meanwhile, the [Pg 224]aftermath of Imperialism in South Africa was reaped, and Conservative disillusionment unlocked the floodgates for the advancing tide of the Liberal revival.

The tide has by no means spent itself. If it no longer rushes in an electoral torrent as in 1906 it flows in a steady stream towards social amelioration and democratic government. In this movement it is now sufficiently clear to all parties that the distinctive ideas of Liberalism have a permanent function. The Socialist recognizes with perfect clearness, for example, that popular government is not a meaningless shibboleth, but a reality that has to be maintained and extended by fighting. He is well aware that he must deal with the House of Lords and the Plural vote if he is to gain his own ends. He can no longer regard these questions as difficulties interposed by half-hearted Liberals to distract attention from the Social problem. He is aware that the problem of Home Rule and of devolution generally is an integral part of the organization of democracy. And, as a rule, he not merely acquiesces in the demand of women for a purely political right, but only quarrels with the Liberal party for its tardiness in[Pg 225] meeting the demand. The old Liberal idea of peace and retrenchment again is recognized by the Socialistic, and indeed by the whole body of social reformers, as equally essential for the successful prosecution of their aims. Popular budgets will bring no relief to human suffering if the revenues that they secure are all to go upon the most expensive ship that is the fashion of the moment, nor can the popular mind devote itself to the improvement of domestic conditions while it is distracted either by ambitions or by scares. On the other side, the Liberal who starts from the Gladstonian tradition has in large measure realized that if he is to maintain the essence of his old ideas it must be through a process of adaptation and growth. He has learnt that while Free Trade laid the foundations of prosperity it did not erect the building. He has to acknowledge that it has not solved the problems of unemployment, of underpayment, of overcrowding. He has to look deeper into the meaning of liberty and to take account of the bearing of actual conditions on the meaning of equality. As an apostle of peace and an opponent of swollen armaments, he has come to recognize that the expenditure[Pg 226] of the social surplus upon the instruments of progress is the real alternative to its expenditure on the instruments of war. As a Temperance man he is coming to rely more on the indirect effect of social improvement on the one hand and the elimination of monopolist profit on the other, than on the uncertain chances of absolute prohibition.

There are, then, among the composite forces which maintained the Liberal Government in power through the crisis of 1910, the elements of such an organic view as may inspire and direct a genuine social progress. Liberalism has passed through its Slough of Despond, and in the give and take of ideas with Socialism has learnt, and taught, more than one lesson. The result is a broader and deeper movement in which the cooler and clearer minds recognize below the differences of party names and in spite of certain real cross-currents a genuine unity of purpose. What are the prospects of this movement? Will it be maintained? Is it the steady stream to which we have compared it, or a wave which must gradually sink into the trough?

To put this question is to ask in effect whether democracy is in substance as well as[Pg 227] in form a possible mode of government. To answer this question we must ask what democracy really means, and why it is the necessary basis of the Liberal idea. The question has already been raised incidentally, and we have seen reason to dismiss both the individualist and the Benthamite argument for popular government as unsatisfactory. We even admitted a doubt whether some of the concrete essentials of liberty and social justice might not, under certain conditions, be less fully realized under a widely-extended suffrage than under the rule of a superior class or a well-ordered despotism. On what, then, it may be asked, do we found our conception of democracy? Is it on general principles of social philosophy, or on the special conditions of our own country or of contemporary civilization? And how does our conception relate itself to our other ideas of the social order? Do we assume that the democracy will in the main accept these ideas, or if it rejects them are we willing to acquiesce in its decision as final? And in the end what do we expect? Will democracy assert itself, will it find a common purpose and give it concrete shape? Or will it blunder on, the passive subject of[Pg 228] scares and ambitions, frenzies of enthusiasm and dejection, clay in the hands of those whose profession it is to model it to their will.

First as to the general principle. Democracy is not founded merely on the right or the private interest of the individual. This is only one side of the shield. It is founded equally on the function of the individual as a member of the community. It founds the common good upon the common will, in forming which it bids every grown-up, intelligent person to take a part. No doubt many good things may be achieved for a people without responsive effort on its own part. It may be endowed with a good police, with an equitable system of private law, with education, with personal freedom, with a well-organized industry. It may receive these blessings at the hands of a foreign ruler, or from an enlightened bureaucracy or a benevolent monarch. However obtained, they are all very good things. But the democratic theory is that, so obtained, they lack a vitalizing element. A people so governed resembles an individual who has received all the external gifts of fortune, good teachers, healthy[Pg 229]surroundings, a fair breeze to fill his sails, but owes his prosperous voyage to little or no effort of his own. We do not rate such a man so high as one who struggles through adversity to a much less eminent position. What we possess has its intrinsic value, but how we came to possess it is also an important question. It is so with a society. Good government is much, but the good will is more, and even the imperfect, halting, confused utterance of the common will may have in it the potency of higher things than a perfection of machinery can ever attain.

But this principle makes one very large assumption. It postulates the existence of a common will. It assumes that the individuals whom it would enfranchise can enter into the common life and contribute to the formation of a common decision by a genuine interest in public transactions. Where and in so far as this assumption definitely fails, there is no case for democracy. Progress, in such a case, is not wholly impossible, but it must depend on the number of those who do care for the things that are of social value, who advance knowledge or "civilize life through the discoveries of art," or form a narrow but effective public[Pg 230] opinion in support of liberty and order. We may go further. Whatever the form of government progress always does in fact depend on those who so think and live, and on the degree in which these common interests envelop their life and thought. Now, complete and wholehearted absorption in public interests is rare. It is the property not of the mass but of the few, and the democrat is well aware that it is the remnant which saves the people. He subjoins only that if their effort is really to succeed the people must be willing to be saved. The masses who spend their toilsome days in mine or factory struggling for bread have not their heads for ever filled with the complex details of international policy or industrial law. To expect this would be absurd. What is not exaggerated is to expect them to respond and assent to the things that make for the moral and material welfare of the country, and the position of the democrat is that the "remnant" is better occupied in convincing the people and carrying their minds and wills with it than in imposing on them laws which they are concerned only to obey and enjoy. At the same time, the remnant, be it never so select, has always much to learn. Some men[Pg 231] are much better and wiser than others, but experience seems to show that hardly any man is so much better or wiser than others that he can permanently stand the test of irresponsible power over them. On the contrary, the best and wisest is he who is ready to go to the humblest in a spirit of inquiry, to find out what he wants and why he wants it before seeking to legislate for him. Admitting the utmost that can be said for the necessity of leadership, we must at the same time grant that the perfection of leadership itself lies in securing the willing, convinced, open-eyed support of the mass.

Thus individuals will contribute to the social will in very varying degrees, but the democratic thesis is that the formation of such a will, that is, in effect, the extension of intelligent interest in all manner of public things, is in itself a good, and more than that, it is a condition qualifying other good things. Now the extension of interest is not to be created by democratic forms of government, and if it neither exists nor can be brought into existence, democracy remains an empty form and may even be worse than useless. On the other hand, where the capacity exists the[Pg 232] establishment of responsible government is the first condition of its development. Even so it is not the sole condition. The modern State is a vast and complex organism. The individual voter feels himself lost among the millions. He is imperfectly acquainted with the devious issues and large problems of the day, and is sensible how little his solitary vote can affect their decision. What he needs to give him support and direction is organization with his neighbours and fellow workers. He can understand, for example, the affairs of his trade union, or, again, of his chapel. They are near to him. They affect him, and he feels that he can affect them. Through these interests, again, he comes into touch with wider questions—with a Factory Bill or an Education Bill—and in dealing with these questions he will now act as one of an organized body, whose combined voting strength will be no negligible quantity. Responsibility comes home to him, and to bring home responsibility is the problem of all government. The development of social interest—and that is democracy—depends not only on adult suffrage and the supremacy of the elected legislature, but on all the intermediate organizations which link the[Pg 233] individual to the whole. This is one among the reasons why devolution and the revival of local government, at present crushed in this country by a centralized bureaucracy, are of the essence of democratic progress.

The success of democracy depends on the response of the voters to the opportunities given them. But, conversely, the opportunities must be given in order to call forth the response. The exercise of popular government is itself an education. In considering whether any class or sex or race should be brought into the circle of enfranchisement, the determining consideration is the response which that class or sex or race would be likely to make to the trust. Would it enter effectively into the questions of public life, or would it be so much passive voting material, wax in the hands of the less scrupulous politicians? The question is a fair one, but people are too ready to answer it in the less favourable sense on the ground of the actual indifference or ignorance which they find or think they find among the unenfranchised. They forget that in that regard enfranchisement itself may be precisely the stimulus needed to awaken interest, and while[Pg 234] they are impressed with the danger of admitting ignorant and irresponsible, and perhaps corruptible voters to a voice in the government, they are apt to overlook the counterbalancing danger of leaving a section of the community outside the circle of civic responsibility. The actual work of government must affect, and also it must be affected by, its relation to all who live within the realm. To secure good adaptation it ought, I will not say to reflect, but at least to take account of, the dispositions and circumstances of every class in the population. If any one class is dumb, the result is that Government is to that extent uninformed. It is not merely that the interests of that class may suffer, but that, even with the best will, mistakes may be made in handling it, because it cannot speak for itself. Officious spokesmen will pretend to represent its views, and will obtain, perhaps, undue authority merely because there is no way of bringing them to book. So among ourselves does the press constantly represent public opinion to be one thing while the cold arithmetic of the polls conclusively declares it to be another. The ballot alone effectively liberates the quiet citizen from[Pg 235] the tyranny of the shouter and the wire-puller.

I conclude that an impression of existing inertness or ignorance is not a sufficient reason for withholding responsible government or restricting the area of the suffrage. There must be a well-grounded view that political incapacity is so deep-rooted that the extension of political rights would tend only to facilitate undue influence by the less scrupulous sections of the more capable part of the people. Thus where we have an oligarchy of white planters in the midst of a coloured population, it is always open to doubt whether a general colour-franchise will be a sound method of securing even-handed justice. The economic and social conditions may be such that the "coloured" man would just have to vote as his master told him, and if the elementary rights are to be secured for all it may be that a semi-despotic system like that of some of our Crown colonies is the best that can be devised. On the other side, that which is most apt to frighten a governing class or race, a clamour on the part of an unenfranchised people for political rights, is to the democrat precisely the strongest reason that he can have in the[Pg 236] absence of direct experience for believing them fit for the exercise of civic responsibility. He welcomes signs of dissatisfaction among the disfranchised as the best proof of awakening interest in public affairs, and he has none of those fears of ultimate social disruption which are a nightmare to bureaucracies because experience has sufficiently proved to him the healing power of freedom, of responsibility, and of the sense of justice. Moreover, a democrat cannot be a democrat for his own country alone. He cannot but recognize the complex and subtle interactions of nation upon nation which make every local success or failure of democracy tell upon other countries. Nothing has been more encouraging to the Liberalism of Western Europe in recent years than the signs of political awakening in the East. Until yesterday it seemed as though it would in the end be impossible to resist the ultimate "destiny" of the white races to be masters of the rest of the world. The result would have been that, however far democracy might develop within any Western State, it would always be confronted with a contrary principle in the relation of that State to dependencies, and this[Pg 237] contradiction, as may easily be seen by the attentive student of our own political constitutions, is a standing menace to domestic freedom. The awakening of the Orient, from Constantinople to Pekin, is the greatest and most hopeful political fact of our time, and it is with the deepest shame that English Liberals have been compelled to look on while our Foreign Office has made itself the accomplice in the attempt to nip Persian freedom in the bud, and that in the interest of the most ruthless tyranny that has ever crushed the liberties of a white people.

The cause of democracy is bound up with that of internationalism. The relation is many-sided. It is national pride, resentment, or ambition one day that sweeps the public mind and diverts it from all interest in domestic progress. The next day the same function is performed no less adequately by a scare. The practice of playing on popular emotions has been reduced to a fine art which neither of the great parties is ashamed to employ. Military ideals possess the mind, and military expenditure eats up the public resources. On the other side, the political[Pg 238] economic and social progress of other nations reacts on our own. The backwardness of our commercial rivals in industrial legislation was long made an argument against further advances among ourselves. Conversely, when they go beyond us, as now they often do, we can learn from them. Physically the world is rapidly becoming one, and its unity must ultimately be reflected in political institutions. The old doctrine of absolute sovereignty is dead. The greater States of the day exhibit a complex system of government within government, authority limited by authority, and the world-state of the not impossible future must be based on a free national self-direction as full and satisfying as that enjoyed by Canada or Australia within the British Empire at this moment. National emulation will express itself less in the desire to extend territory or to count up ships and guns, and more in the endeavour to magnify the contribution of our own country to civilized life. Just as in the rebirth of our municipal life we find a civic patriotism which takes interest in the local university, which feels pride in the magnitude of the local industry, which parades the lowest death rate in the country,[Pg 239] which is honestly ashamed of a bad record for crime or pauperism, so as Englishmen we shall concern ourselves less with the question whether two of our Dreadnoughts might not be pitted against one German, and more with the question whether we cannot equal Germany in the development of science, of education, and of industrial technique. Perhaps even, recovering from our present artificially induced and radically insincere mood of national self-abasement, we shall learn to take some pride in our own characteristic contributions as a nation to the arts of government, to the thought, the literature, the art, the mechanical inventions which have made and are re-making modern civilization.

Standing by national autonomy and international equality, Liberalism is necessarily in conflict with the Imperial idea