Evening Star Newspaper, November 6, 1921, Page 49

NATIONA ~EDITORIAL PAGE SPECIAL ARTICLES % rig L PROBLEMS Part 2—14 Pages - - ‘President Harding Has No Doubt’ Arms Conference BY N. 0. MESSENGER. RESIDENT HARDING s a close reader of the newspa- per and thé higher class “of the periodical press. They do say that he has been very much in- terested lately in noting that minor- ity proportion of the comment upon the forthcoming -armament confer- ence which takes a gloomy view of the outcome of the impending effort to limit armament. -And the President, it is said, won- ders where they get the idea that the conference can be a failure in any possible circumstances. He does not harbor & thought remotely con- templating such a possibility. He has warned the public against ex- pecting the impracticable and the obviously impossible, but he and all those about him in official life have not from the outset considered for an instant the suggestion of failure. ERE The Lord Lee of Fareham, head of the British admiralty, and a delegate to the conference, upon landing in New York last week, made this observa- tion: “I am not prepared even to con- template the possibilities of fallure. ‘To do so would be to assume that the world Is afilicted with an incurable insanity and could not be restrained from sulcide.” Now, didn't he put it in a nutshell? 1f one spoiled a ream of print paper, notwithstanding -the high cost of comq position, stereotyping and press work, <ould he say more and describe the situation better? While not pretend- ing to the right to speak for the President, it's dollars to doughnuts that he would say, “Those are my sentiments.” * K Kk * The crepe-hangers and pessimists are having uphill work with their mourntul prophecies in these days marking the near approach of the conference. Their forebodings are be- ing negatived by the frank and ob- viously sincers’ utterances of dele- gates as they near the shores and after they arrive, all breathing the same declaration of faith in tne out- come and determination to malke it successful. It would seem that they have caught some of the spirit of America in pre- posing the undertaking; that tiey have taken on the enthusiasin of the virile younger nation which has pro- posed to the old world, a war-w2aried old world, sick of centurizs of blood- shed and the burden of war, to get together and change the order of tlings; that they have acknowlvdged the practicability of the suggession as well as its altruistic spirit. Z President Harding and Secretary Hughes are unquestionably responsi- ble, by their utterances and their course, for creating the enthusiasm echoed by the delegates. * k% % : Back of all this, however, is the superdominant fact that the peoples of the countries of the world stand in s0lid array demanding what this con- ference proposes to seckh o accom- plish. This is not to be a meeting of the politicians of the worid dickes- ing for political advantigs, but a gathering of representatives of the millions of the inhabitants of the #eiyilized world with a mandate from “thelr constituents. 4 The delegates will not dare to re- fturn to their countries with a report of fallure. Just ponder that sugges- for a while. : * k ok ¥ It is noted that all the delegates who talk some time in the course of . their utterances put forth the suggestion, by way of qualification, itimight be said, of their forecasts of' some scheme of limitation, that 'whatever is agreed upon must stop sjort of imperiling national safety. Will Succee d timistic thanto the contrary, in'that gress to emact bonus legislation. It| it indicates determination to con-{was stated at thetimie in Congress sider thq question of limitation of|that the action was only deferred and armaments from a praetical stand- | that the near future would bring re- point, and not from dreamland? No-|newed activity by the proponents of body expects nor wants any nation |the legislation. to place others. itself at the mercy of Chairman Fordney of the ways and All that the peoples ask 18|means committee of the House has e e emad career of armamentlgiven notice that a soldier bonus bill | be checkea ana limited by common|wy) pe reported to the House early in agreement, to be of one mind that such a thing is possible and will be done. Secretary Hughes, in his frequent frank conversations with newspaper writers upon the subject—talks in which this heretofore Jeserved and cautious man has unbosomed him- self surprisingly —has emphasized ithe practicality and practicability of | the objects and purposes of the con- ference. And he is sincere in his belief that the conference can pro- duce practical results. * ok ok % President Harding isbeing felicitated upon the catholic spirit in Which he made . up the advisory council of twenty-one for the Ameérican dele- gates to the conference. Look over the ’ list — republicans, democrats, mugwumps, bull moosers, reaction- aries, men, women, theories, utill- tarlans—he doesn’t seem to have overlooked any class in his selec- tion. It; was made clear in official circles that this advisory board is not to be a perfunctory body, but that it will have important duties to perform, whose 8cope and seriousness will increase as the work "of the conference broadens. Secretary Hughes and the American delegates to the conference will count heavily upon them to bting to the American delegation the reaction _of public -sentiment and opinion upon the subjects before the conference In which they.are supposed to be particularly in- terested. The American delegates will be more or less cloistered and out of 'contact with the public, while thesa men and women will come fresh from the people, 80 to speak, and will keep in touch with the public feeling. The members of the advisory board will not i and the delegates appear|ing regular session and declared that he will propose to raise money to carry out the plan through a sales tax. Ga the same day that he made this an- nouncement the American Leglon at' its convention in Kansas Clty-adopt- ed strongly worded resolutions fa- voring legislation and deploring the delay thus far occasioned. When the regular session com- mences it is expected that the lines will be sharply drawn in Congress between the advocates of a bonus and those who foresee embarrassment to the flnances of the country, govern- mental and general, in additional tax- ation for the proposed purpose. Tk ko ok Praises be, it will not be long now until there will be something to write about except arms limitation, taxes and tariff. Politics will soon be the thing. It has seemed a long time since November/ 1920, and it would not be surprising if the public is gotting an appetite for politics. The reorganization of the demo- cratic national committee is believed in political circles at the National Capital to forecast an early revival of democratic' political militancy. The new chairman, Cordell Hill, has promised that such shall be the case, and it is believed the rank and file of the democrats are ready for it. The judgment of political sharps here is that the reorganization of the committee will throw the lists open for the various aspirants for the presidential nomination in 1924 and out of candidates. It {s not intended to be insinuated that the democratic organization i{s to be used for or against any particular candidate, but that party spirit and hope are to be stimulated by the reorganization. Chairman Hull is a fighter, a good partisan, and an all around clean-cut man. He may have his preierence for a candldate, but it can be safely pre- dicted that he will not allow the party organization to be used by men deeking the nomination. l:l!s first idea, it i» said, is to get the party to- gether again; formulate some definite principles, attack the republicans with vigar, arouse interest in the gemdcragy - and _opposition to the enemy—and let the candidates be set- tled In due time - (Gopyright, 1921, by The. Washingten.8tar.) upon the delegates to the conference, but have been speclally commissioned by President Harding to assist-and ad- vise. They are expected to be here to attend the first meeting of the advisory board, called by Secretary Hughes for next, Wednesday. * % ok % The soldiers’ bonus will loom agaln when Congress convenes in rdgular session next month. President Hard- ing ana Secretary of the Treasury Mellon_ by their arguments wup -the condition of the government's finan- cizl affairs caused’ suspension of ef- forts at the current session of Con- have the rank of ambassadors, bnluwedl CAFETERIA OWNER TAKES CENT 'PROFIT ON PATRON: GETS RICH A Chlcago woman who owns two cafeterias in the “loop" district is making a fortune from a cent profit on each meat served. So convinced is she that she can feed people at 2 minimum of profit-that she is about to open on ‘the north side another self-service eating place, the largeat in the world. It will provide seats for 1,250 persons. - The largest cafe- teria at present is in Los Angeles, where 1,200° persons can eat at once. The Chicago woman will pay a rent of $35,000,"taking a fifteen-year lease. Ten years ago she opened a cafeteria having a capacity of ninety-six per- sons. Her capital was only $1,000. But the food she served was so ap- petizing that financial success fol- lowed. In 1920 she fed in her two establishments 2,500,000 persons. At a cent profit on each she made $25,000. She brought to her work enthusiasm which has been shared by her asso- good-will will not insure a profit. Every department_of the cafeteria .is managed by & wom3n who not only maintains a rigid scrutiny of her. de- partment; but goes to other citles every few months in eearch of new ideas in cafeteria operation. All her man- agers have been with her for more than five years, and soon they will be taken in a8 partners. - The little $1,000 cafeteria of ten years ago, with seats for ninety-six persons, has grown inte two large establishments, one accommodating 514 persons at once and the other 600 Falrness to the patrons has been the rule by which the busi: has been duilt up. As food costs are lowered por- tions for. the customer are increased and prices are reduced. - But mere cheapness does not account for the throngs that pour .into these two “loop” cafeterias every day. Good cooking and attractlve accessorles, Though Germany Is Impotent BY FRANCESCO NITTI, = Former Premier of Italy. ERMANY has : disarmed | completely. Austria, Hun- -gary and Bulgaria only possess those diminutive armles which have been allowed them by the treaties; as a matter of fact, Austria, being reduced to extreme poverty, has an army far less numerous than that which she would be entitled to maifitain, according to the treaty of Saint- Germain-en-Laye. ~.The treaty of Versailles imposed complete disarmament on = Ger- many. Even the military commis- sions,. presided over by Marshal Foch, had recognized the necessity for Germany, in order to maintain order at home, to have an army of 200,000 men, serving one year with the colors; a generdl staff with five army staff corps, fiftten divi- sions, 180 pleces of heavy artillery and 600 pleces of field artillery. This is what the leading military authorities of the entente regarded as an irreducible minimum for the safeguard of law and -order in Germany. ¥ ok kK But the supreme council and the prime ministers who, together with President Wilson, drew up the peace treaty, afterward known by the name of the treaty of Ver- salllgs, at Clemenceau's request reduced Germany's army almost to a nonentity. Indeed, it may be re- garded, in its present condition, as a police force, deprived of all military character and value. It has been cut down to only 96,000 men, with 4,000 officers. The gen- eral staff has been abolished, mili- tary schools are forbidden, nor fis there any kind of military training allowed efther in the universities or in the schools. Heavy artillery has been suppressed, as also tanks, “military aviation and gas gener- ators. Factories for the production of arms have been destroyed. Only 228 pleces of fleld attillery have been allowed, to be made in works chosen by the allies and under their supervision. Compulsory service being suppressed, the sol- diers are mercenaries, who enlist for'a period of twelve years, and are commanded by officers who are not allowed to leave the army before having attained the age of forty-fiye years. All trade in arms is prohibited, military training is forbidden, the left bank.of the Rhine -is- under -control, shd: zone of fitty kilometers to the east" is regarded as an absolutely non- military belt. Besides these pré- cautions, the interallied missions have the widest powars of investi- gation. No German mobilization can, therefore, take place to the west, but must be restrioted be- tween the Elbe and the Weser. ., * % ¥ % Tardleu has had to recognize that the allies have heaped up against Germaoy “des garanties telles. que jamais I'histoire n'en a enregistre de pareilles.” Under the pressure of her in- ternsl democratic movement and of ‘her ex-enemles, Germany has carried out-the military clauses of the treaty with surprising prompt- ness. - She-1s now.completely unarmed, and has to tolerate even the vio- lence of the Poles, who tread un= der foot: all treaties and obliga- “tions both' toward Germany and other countries, both in respect to Upper Silesia and to Wilna., Can Germany represent a danger of war for. many years to come? The .statements recently made by It took many months for the TUnited States, at the height of - their wealth and prosperity, to or- ganize an army of one -million men and to fit it with artillery and aviation. During this preparatory stage, moreover, the ocean acted as a safeguard against any hostile interruption. Germany, on the other hand, is not only deprived of this advane tage, but has her former foes per= manently established on_her ter- ritory. In order to enter the fleld against a modern army with any hope of success, the German army should be able to base itself on a great German war industry, which cannot obviously be improvised or carried on in secret. Even if a third power were will- ing to arm Germany (and what power could it be?) it would beim- possible to equip and mobilize a large army quick enough to pre- vent even a small enemy contin- gent from obtaining an immediate and decisive success. Only if stricken with sulcidal mania, therefore, could Germany be-tempted to embark on a mili- tary adventure. * ok ok ¥ Summing up the situation, Ger- many, Austria, Hungary and Bul- garia have now less than 180,000 men under arms, with very little artillery. Hardly anything has re- mained of the two most power- ful armies on earth. The fourth of Wilson's famous points lald down that, after the war, “adequate guarantees should be given and received” for the re- duction of armaments-to the mini- mum compatible with internal curity and order. At that time everybody applaud- ed this maxim, in which, however, I have never had the slightest falth, it being inevitable that the victors should wish to maintain their supremacy over the van- quished. But what has actually happened in Europe exceeds the most pessi- mistic forecasts, for. these thirty- odd states of which Europe is now composed - have altogether more men under arms than before the world war. Great Britain alone, while in- creasing her enormous fleet, has immediately cut down her army, which now only amounts to 15,030 officers and 186,097 men, alto- gether, 201,127, to which must be added the Aviation Corps and the . troops in-India, 3}04% officers and 78,852 men. Great Britain is the only coun- try in Europe which has greatly out down public expenditure and reduced its bureasucracy. Italy had started in the same good direc- tion, but.subsequently stopped on the way or proceeded too slowly and timidly. * % ¥ % The example set by Great Britain is all the more important inas- much as she is confronted with - grave military problems not only in India and Egypt, but in Ireland itself. If any otner continental country were faced with the same military snd internal difficulties it would maintain under arms not less than one million men. I have already said in a preced- ing article that France, thres years - after the termination of the war, has still 810,000 men under arms, namely, the most numerous army in the world, - But even more paradoxical is the fact that Jugoslavia has under arms 160,000 men, - namely, more than ‘Germany, Austria ‘and Hun- _ gary put together; that Czechoslo- EDITORIAL SECTION. e Sunday A. C, SUNDAY MORNING, NOVEMBER' 6, '1921. Europe Still an Armed Camp, |Uncle Sam Plans to Go-Gunning St “For Billions of Slacker Money BY WILL P. KENNEDY. OW much money is there:in the family sock? That's what government officials and members of Congress are trying to find out. This question has come up in connection with hearings before the House post office commit- tee on Postmaster General Hays' pro- posal to make the postal savings sys- tem more attractive, so as to draw in this “slacker” money that is now ly- ing idle and should be at work. Eugene Meyer, jr., managing direc- deprived of the use in a legitimate way of the amount which is’ being used for covering up illegitimate transactions. There is no doubt but that this has had considerable in- fluence on the present condition of monetary affairs.” * % ¥ % Asked for a suggestion as to how this situation can be relieved, Rep- resentative McFadden sald that the surest way as he sees it is for a more careful scrutiny of such transactions to be made through the bureau of in- tor of the War Finance Corporation.|ternal revenue, by examining closely estimates that there is in the sock something more than a billion dol- lars. Representative Lucien W. Par- rish of Texas. who is author of a bill somewhat different from that of Post- master General Hays, seeking to modernize the entire postal savings system, estimates that there is at least $500,000,000 in the sock. It is pretty accurately determined that there is several billion dollars whose activitles cannot be traced, and which ought to be doing an hon- est day's work. * ok Kk K Representative Louis T. McFadden the records of properties bought and sold. He argues that less than ever before is now held in stockings because of ?he fact that foreigners are depositing in the postal savings bank and in- vesting in United {itates government bonds to a greater' xtent than here- tofore. The savings' ousiness of both national and state banks, he also points out, has become very popu- lar, and extensive advertising cam- paigns have brought the service to the attention of tre people, who, in turn, availed themselves of the opportunity to deposit thelr ready money and draw of Pennsylvania, chairman of the |interest upon it. House committee on banking and cur- The thrift campaigns conducted by rency, points out that much of this|the Treasury Department have also vast slacker fund is being used for |2 Strong influence purposes — bootlegging | People not to let money lie idle, but illegitimate in inducing the and covering up large real-estate|!0 deposit in interest-paying institu- deals, 80 that they will not have to | tions. pay taxes on the transaction. Chairman McFadden says that there is probably more money being used for illegitimate purposes in the hands of offenders today than at any period in the history of our country. believes there is less money today in the family sock—hidden away * k ok x The banks generally are opposing the Steenerson bill, which compre- hends Postmaster General Hays' plan He for enlarging the postal savings sys- tem, on the ground that it is unfair competition and tends to keep the under the carpet, in tin cans and|S°Vérnment in the banking business. sugar bowls, ever before. In discussing the activities “bootleggers,” Representative McFad- really hoarded—than Spokesmen for the banking interests have argued before the committee ot | that by advertising the fact that the government stands behind the de- den polnts out that their transac-|Positors In the postal savings bank tions are carried along on a strictly | th® 8overnment gives notice of un- cash basis. “My attention was re- cently called to the arrest of one fair competition. Eugene Meyer, jr., in making his of these notorlous characters in the|éStimate of more than a billion dol- city of Washington, when $50,000 in|1aTs in the family sock, urged that cash was found on his person. The|!h!s money might be brought into next day when ofiicers were search- | ¢ Postal savings system. Secre- ing the home of one of the ‘boot-[!4y Hoover. Otto Kuhn and miany legging’' crowd a bureau drawer was other noted financiers and economists puiled open and it was found to be|Nave been quoted before the hearing jammed full of currency which had|@S Teciting that during the liberty been accumulated and hastily hidden, | 1020 rallies throughout the country “My attentlon was also called the fact of vast quantities of money several large purchases of liquor,4n.- |2Ctually hoarded away in socks and volving hundreds of thousands if not|!il ¢ans and other receptacles was millions of dollars. s0 that there would be no record of | °f these transactions.” * X %X * Caall Chairman McFadden then calls at- actually moldy, -damp and tention to the fact that this is only |S™elly from having laid in close cap- one phase of the accumulation of [tVItY: cash for unlawful uses. “Another| TheSe varying estimates as to the important phase is brought about by |3Mmount of “slacker” money in this the present high tax laws” he ex-|COUNtrY are made by taking the these meetings old bags, etc. was plains. “It has been brought to my amount actually in circulation, de- attention that a great many people in | ducting the amount on deposit i this country today are avoiding | Panks, etc, making allowance for a taxes by closing transactions with|certain amount carried around in cash rather than In the usual method | Pockets and then finding that there with check or draft. are billions that cannot be accounted “We are In the midst of a big real [ for. estate and building boom,” he con- tinued, “in which much property is changing hands and with large profits in many cases. Settlements in these large transactions are being made in cash, which is stored In safe-deposit boxes, the home stocking or other receptacles where there will be no record of the transaction. The gov- ernment thus loses a great deal in needed revenue. “Such transactions also entail the use of a very large amount of cash. Through these two channels it is estimated by government officials and by prominent bankers that something in the neighborhoed of $2,000,000,000 of the circulating medium is kept out of the usual channels. * k k% Advocates of modernizing the postal saving system say that it will bring this money out of the hiding places and put it to work. They say that there are many forelgners who dis- trust all private banking institutions and so hide their money away, but that if they are assured that the government stands behind their sav- ings placed In the postal savings bank they will deposit there, because they had learned to do that same thing at home. It is probable that the House com- mittee will not report out the bill, fathered by Chairman Steenerson, representing Postmaster General Hays' | Cash was paid|Proved. When aroused by the fervar| i many. persons|PUTPOses Would result in increasing brought in their hoards in tin cans,|the market value of liberty bonds Some of this manes, | fTOM 5 to 10 per cent. It would have thesHearings are being conducted in 2:brgad way. “The Hays plan would knock off the minimum age limit of ten years and accept depositors at any age. It would also raise the maximum on de-’ posits from $2,500 to $3.000. It would increase the interest rate from 2 to 3 per cent. Where heretofore mo in- terest was allowed unless the money had laid on deposit for a year, the bill proposes to allow interest to all depositors after their funds have been in for three months. * K x % Under the old iaw there is provision that the money (except 5 per cent retained in the Treasury as a reserve fund) is to be redeposited in the banks, except that the board has dis- cretion to put 30 per cent of it in government bonds or other security, and that the President in times of emergency may place all of it in government bonds or other security. The Parrish bill provides for the retention of the 5 per cent reserve fund and that then all the remainder shall be invested by the board of trustees in government bonds or other government securities. His argument is that the original act passed June 25, 1910, providing for redeposit under the conditions cited, was passed be- fore the federal reserve system and the federal farm loan acts were pass- ed. The redeposit was very necessary then, but not now, Representative Parrish argues, since these new sys- tems have decentralized the money system and no valid reason any longer exists for putting the funds In local depositories. * % % % Ukder the old law, Representative Parrish points out, the government pai 2 per cent to postal savings de- positors. Then it let this money go to the banks at per cent and bor- rowed the money back at 5% and 6 per cent by the sale of Treasury cer- tificates, which are tax exempt. This means that the government has been paying 61 per cent to get the money back. If the government is going to have anything at all to do with the postal savings system it ought to use the money to relieve the floating in- debtedness of the nation, which now amounts to about $2.000,000,000, Rep- resentative Parrish argues. In 'so doing it would relieve the banks of carrying these Treasury cer- tificates and would turn the money loose into communifies for local en- terprise or for investment in govern- ment bonds. It is estimated by Eugene Meyers, that the carrying out of these e a stabilizing effect on the market value of the liberty bonds if any ap- preciable amougt of hoarded money would be brought into the postal savings system and invested in gov- ernment bonds, the Treasury offi- cials and many members of Congress are urging. AIDE TO PRESIDENT. Capt. McMorris Also Assigned as Assistant to Col. Sherrill. Capt. Watson L. McMorris, Coast Artillery Corps, has been detailed as an assistant military aide to Presi- dent Harding, and also as an assist- ant- to Col. Clarence O. Sherrill, in charge of public buildings and grounds and co-ordinator for motor transportation in the District of Co-~ lumbia. Capt. McMorris is a native of this city and was- graduated from the Washington high schools and the Na- tional University Law School. Dur- the war he saw service with the 1st Division as platoon commander of in- fantry and as a captain in the Trans- portation Corps. For the past fifteen mhonths he has been on duty at Fort Monroe, commanding the Machine Gun Company of the 1st Anti-aircraft that Now, when one comes to analyze |ciates. thought i3 it not rather op- Of course, II—The Assault on Wealth and Privilege. ' N 1905 the conservative party resigned and the liberals were returned to power by an immense majority. Lloyd George was marked out for office of some kind, as the most notorfous and elequent of the younger liberals. But nobody expected that the appar- ently reckless youns Welsh lawyer would be offered, and still less accept, the presidency ef the board of trade—the ministry which dealt with trade and labor at home and abroad, and which seemed to require qualities of persistent industry and business experience. But Lloyd George did accept and made an immediate success. e brought %o an ancient department, full of able men but tisd up with the traditions of the Victorian age, the very freshness aad fearlessness which had wom him his position in Wales. In a short time he had added to his reputation as a politiclan that of being a first-class negotiator and settler of dis- putes. And his methed was always the same— to bring the partiss face to face, allow direct eontact to correct exaggerated grisvance and prejudics, casefully weigh their cases and then propose a settlement which it was possible for both to accept. People often attribute his suc- @ess to a peculiar guile. The real seoret is his ‘capacity for understaading other pecple’s points ©of view and his power for geiting past phrases and so-called principles to realities and facts. % %k % X Lloyd George, however, did not confine his efforts to the settlement of railway strikes and industria! disputes; he plunged with equal energy Into the fleld of legislation. Though a strong free trader and convinced that if a na- tion were to compete in the markets of the world she must not artificially heighten her costs of production by protection, he was ut- terly against a doctrinaire interpretation of the principle of free trade which would artificially impede the activities of his own countrymen. In this ‘spirit agid with characteristic bold- mess he put.tbrongh a -patents act, though it meant sesuring thé doubtful and grudging as- went of the liberal free trade majority, Then Be found that British shipping was being handl~ capped hegause high standirds of safety and mere . enthusiasm and such as spotless table linen and shin- ing silverware, have be seamen’s comfort were being imposed upon it ‘which were not imposed upon foreign shipping. He ¢id not, 2s most people of the time would have done, attempt to solve the problem by cutting down the protection afforded te travelers and seamen {n British shippings He did exactly the opposite. Ha.set te work to induce foreign countries to insist en proper standards of safe- ty and proper treatment of seamen in their own ships, with the result that everybody benefited all round. At the same time he tackled the shipowners by foroing through parliament an act conferring upen seamen rights analegous to those which had been obtained by tradés unionists on land. In other ways he brought a new democratic energy into London official life. Lloyd Geerge saw {hat in England ag in Wales the domimance of the old Victorian order was o4 an end, and He did not care a rap for conven- mecensary. tions. He tried and poked into everything him- ° self. The press were treated:in a friendly and trustful manner. The board of trade, from he- ing a pentifical authority, began to sssume the role of the friend of everybody comcermed.in disputes which it has bscome tedsy, * ¥ XK PR But bigger work lay ahead for Lloyd George than the tasks of the board ef trade. Ia 1908 Campbell-Bannerman died. Asquith became prime - minister and offered te Lloyd George the second place in the ministry—the treasury, Almost at once he became the centsr of a cem- paign which convulsed the country and trans- formed its constitution. England before the war was the paradise of the well born and the well-to-do. Largely be- cause of her pesition external problems had played an excessive part in her political. life. On the edge of the volcano of Europe, and re- sponsible for the government of a vast empire all over the world, the English people were never able to give unremitting attention to their own soclal problems. Lloyd @eorge has often told me that the predominant issue i every genaral election in England for forty years was some foreign questlon. In consequence, two things Happened. The first was that the edu- cated. elasses and the aristocracy, who alome knew much sbout the outside werld, possessed £ that there will be a lively trotting Hindenberg and Ludendorft are supplied. dently nothing but the truth. an undue prependerance of politiesl @wlv. . There were no ‘popular parties in Ingland be- fore 1960. ' The educated classgs were divided . into two parties, and. the public were lsft to chaese which' of: the-two they' weuld return to power, -The. second was that the needs of . t! poer never got proper attentien from parlisment. Instead of heuwsing ind unsmployment and edu- cation being the primary preccoupation -of the _legislators, it was Russis and Indis, the South African war, the eternal questien of Irsland, and, latterly, the German military peril. 3 ok kik By the end of the century things had béyun to change. * The 1906 elsction returned for.the first time w strong popular representation, And it immediately set to work to deal with the great arrears of social reform. Its program included educational advances,’liquer reform, ald age pensions for the poer, insurance against unemployment; benefits for the aick, the widéws ang- the orphans, land reform and se en. The difficulty. was finance, - Nens of these referma could be carried -out witheut a large doubht whete the money was to coms frem, Hs had net been many. years in parliament before English life and seen the eontrast hetweem the eapg and, wenlth ef -the goveraing clasees ‘and the Jives of & gréit part of the industzisl pn- latieh, Nobody could travel throughthe mile of mean strests in the great industrial towas, could read the statistics ef unemploymant, and hear about - the.fearful want and-suffering in the homés of those Sir Henry Campbeli-Banner- man called the "submerged tenth™ without feel- ing the terrible contrast.; ° oyt Lioyd Gesage early made up his mind that the moReY to pay for the reforms must comie frem the 7ick. He went further. He appreached his task with enthusiasm because he saw that unless - the ‘'rich ‘shoulderedtheir burdens, will- ingly, unless there, was some . diminution. ef the 'growing guif between the rich.and peor, some: general ‘lmprovement in the let of. the 1 conseqiienices would ensue. poittical Bt Bt N A : Wien'he eime to maks Wp his frst bulget that ke a9 Wdansellor of fRe exeoguer ke found 2 \ vakia has an army of 150,000 men, (Continued on Third Page.) 2ad 0 provide for e deficls of some £13,000,000. Thie sum could just be obtained by various ad- justments snd extensions of the existing scale The reforms once started would lead to heavy expenditure in the future, and ho Ihd other reforms in view. He went down to his house by-the ses at Criceieth in North Wales to think out the problam. At dinner he was oppressed and baffled. He could not mee his way out. Early next morning his friends saw him walk- ing 4n the garden brimming ‘over with cheer- fulness and confidence. “Have you solved the problem?” they asked. “¥es,” ko sald, “I want twelve millions. I'm golng to ask for twenty- fouy.” And he went on to explain that not only wotld far more enthusiasm be aroused by 2 big scheme than a pettifogging one, but that it was vital te fight & campaign on the question of _ whether it was not the duty of the rich to con- tribute far mors largely to the national needs than they had-been accustomed to. do. e * % Xk % Be the great budget of 1908, known as the people’s budget, came to be prepared. To us todey its demands appear moderate, and almost - /inadequate, They .included a super-tax, a re- 'vision of the income tax, reyalties on coal mines, increased taxation on land. liquor and unearned of heralding new demands “~ ¥ils eppénents took up the challenge. described’ the budget as ‘confiscation and - pre- pared te fight it by every weapon in their power. Lloyd George's attitude throughout can be seen from his speeches. ° S * ¥ % ¥ In his introductory speech he said: “Y am told tiws no chamoeller of peech at Limehouse in de- he said: of-his budget, “Thus business and individuals are LLOYD GEORGE—The Man and His Times that are fertile, taxes that will bring forth fruit—the security of the country, which is para- mount in the minds of all; provision for the aged and deserving poor—is it not time some- thing was done? It {s rather a shame that a rich country like ours, probably the richest in the world, if not the richest the world has ever seen, should allow those which have toiled all their days to end in penury and possibly starva- tion. It is rather hard that an old workman should have to find his way to the gates of the tomb bleeding and footsore through the bram- bles and thorns of poverty. We are raisirig - money to pay for a new road—aye, and to widen it so that 200,000 paupers shall be able to join in the march.” “Some of our critics say: ‘The taxes them- selves are unjust, unfair, unequal, oppressive— notably the land taxes.’- They are engaged not merely in the house of commons, but outsidé the house of, commons, in assailing these taxes with a concentrated and sustained ferocity which will not allow even a comma to escape with its life. “All I can is this: The ownership of 1and is not merely an enjoyment, it is & stewardship. It has besn reckoned such in the past, and if the owners cease o disoharge thelr funotions in seelng to the security and defense * * ¢ We are placing the burdens upon the broadest shoul- ders, Why should I put burdens on the people? I am one of the children of the people. I was brought up among them. I know their trials, and God forbid that I should add one grain of trouble to the anxieties which they bear with such patience and fortitude. When the prime minister did me the honor of inviting me to take charge of the national exchequer at a time of great difficulty I made up my mind in fram- ing the budget which was in front of me, that at any rate no cupboard should be the barer, no lot should be harder. By that test I challenge you. to judge the budget.” = * % % %k . The debates on the budget in the house of " commons were prolonged. Their bitterness can perhaps be inferred from a story sbout Lloyd George's small daughter, Megan. Megan asked views, until after December 1, because Battalion. By Philip Kerr (His Secretary, 1917-1921) if the devil was not very wicked. “Yes” was the reply. “Then does he belong to the tory party?’ she asked. The answer again was “Yes.” After a long pause, Megan said, “But Mr. Balfour gave daddy a cup of beef tea when he was tired.” (Mr. Balfour was leader of the opposition.) b The story of the aftermath is well known. The house of lords, exceeding their strict con- stitutional functions, rejected the budget. The liberal government appealed to the country and were returned by a majority of 124. The lord™ then passed the budget. But Lloyd George and his friends were not satisfied. The power of the privileged classes to hold up legislation in- definitely—to throw out an education bill and a licensing bill as they had done in 1907 and 1908 —must be definitely broken. So came the strug- gle over the parliament act which provided that any bill passed by the house of commons three sessions in succession was to become law whether the. house of lords passed it or not. Again an appeal was made to the country. Again the liberal government was returned with a majority 120. The government announced that if the lords did not pass the parliament act they would advise the king to make the number of peers necessary to secure the passage, esti- mated at some 300. The lords, faced with the alternatives of surrrender or being swamped, gave way, and. the act became law. tk ok ok kX Thus the new democratic liberalism achieved ‘the same kind of triumph in Great Britain as it had achieved in Wales. The easy-going monop- oly of the rich had been attacked, the privileges of the aristocracy had been restrained and grest ‘measures for uplifting the condition of the poor had been passed into law. In both cases Lloyd George had made himself the spokerman and the leader by his energy, his oratory, his sagacious capacity for combining tolerance with hard hit- ting. He now began a campalgn for-a new series of reforms, this time dealing with the ownership of land. . But the progress of the movement was destined to be -held mp. by two shadows which now crossed the pa 2 O 1and, which wil{bé dehit with'Tater, a¥ Germany. (Copyright, 1921, by the McClure Newspaper Syndicate) NEXT SUNDAY—The War—The First Fhase.