MR CHAMBERLAIN'S REASONS.

Press, Volume LX, Issue 11692, 19 September 1903, Page 8

MR CHAMBERLAIN'S REASONS.

LETTER TO MR BALFOUR. (Received September 18th, 10.58 p.m.) LONDON, September 18. Mr Chamberlain, in a letter to Mr Balfour on the 9th, in anticipation of Monday's Cabinet meeting, said: "I have most carefully considered the situation, as it affects the Government and the great question of fiscal reform. When you, in replying to a deputation in reference to the corn tax and I at Birmingham, called attention to the changes in the commercial position during the last half-century, and suggested an inquiry into the subject, I do not think cither ot us intended to provoke a purely party controversy. We raised, not for the first time, a question of the greatest national and Imperial importance, in the hope that it would be impartially discussed by friends and opponents, and tha* an inquiry would be initiated which would lead to conclusions accepted by a majority of the people, and represented accordingly by results in the next general elections. Whether that view is reasonable or not it is certainly not shared by the Libera! leaders, who scouted the idea that a system generally accepted in 1846 could possibly require any modification in 1933, the whole party organisation being directed against any attempt to alter or even inquire into the foundation of the fiscal policy. Tin- advocates of reconsideration", meanwhile, have to grant them the advantage. Owing to admitted differences

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of opinion among the Unionists the party's organisation is being paralysed, and our opponents are in full possession of tho field. They have placed in the forefront of the arguments their objection to the taxation of food, or even to any readjustment of existing taxation towards the mutual advantage of ourselves, and the colonies and the Empire's closer union. Unscrupulous use is made of the old cry of the clear loaf, and i:i the absence oi ft;!' public discussion a serious prejudice is eivated. People iire generally alive to th« danger of uurestiVeted competition oh the part of foreigners, who close their markets against us, while they find in ours an outlet for their surplus productions. Still th y do not appreciate the importance of the colonial markets to our trade, m,r tho danger losing them unless we meet in some way their natural patriotic desire for preference. The result for the present at any rate is that preference to the colonies fnvoWing any new Jury, however small, on articles of food, even if accompanied by a reduction of taxation on other articles of food of equally universal consumption, is nor acceptable to the majority of the constituencies. However regrettable or mistaken this decision, no Govei'nment of a democratic country can ignoro it."

Mr Chamberlain, in his letter, further says:—"Therefore I feel as if an immediate practical policy of preference cannot be. pressed hopefully at present, although there is a very strong feeling in favour of the other branch of the policy, that of giving fuller discretion to the Government to negotiate with foreigners for freer exchange, enabling us to retaliate in the absence of concessions and just claims to greater reciprocity, and as I believe you share with me these views, it. seems to me you are absolutely justified in adopting them as tho policy of your Government, although they involve some changes in its constitution. As Secretary of State for tho Colonies, 1 have been in a special sense the representative of the policy of closer union. I believo it. is possible to-day, and it may be impossible to-morrow, to make arrangements for such union. I have bad unexampled opportunities of watching the trend of events and appreciating the feeling'; of our kinsmen beyond the seas. 1 stand in a different position to my cotleagues, and I would be justly blameable if I remained in office and accepted the exclusion of so important a part of my programme.

"I think, therefore, that, with absolute loyalty to the Government and its general policy, and with no fear of embarrassing it, I can best promote the cause from outside. I cannot but hope that in an independent position my arguments will meet with less prejudice than from a party leader. Accordingly 1 suggest that you should limit the Government's present policy to the assertion of our freedom in connection with all commercial relations with foreign nations, and agree to my resigning. I will devote myself to explaining and popularising the Imperial union, which experience has convinced mo is essential for our future welfare and prosperity."