SIR WILLIAM HARCOURT.

'I have already pointed to the growth of expenditure in the last seven years, and I have nothing to say on the subject of that expenditure. I am not going to enter into any controversy with reference to it, or to condemn it, but this, at least, I may say—that those who have authorized, encouraged, and insisted upon it—I am speaking now entirely without distinction of party, for it has not been one party alone—are bound to provide the means of defraying it. I know there was once in this country an economical party (laughter); but there is no economical party now, and I believe that the Prime Minister and myself are the only survivors of it (laughter). There has been attributed to me a saying Edition: current; Page: [55] that every one is a Socialist now. I do not know that I ever said it; but this I will say—there are no economists now. Financial economy has gone the way of political economy (ironical cheers). A chancellor of the exchequer preaching against extravagance is nowadays a voice crying in the wilderness. We hear much of the stinginess of the treasury; I only wish the treasury had power to be more stingy than it is. A chancellor of the exchequer may hold up his hands in despair, like the old steward in The Rake's Progress; the money is spent, or, as the French say, the wine is drawn, and you must pay for it. After all, the causes of this are not far to seek. Economy was possible, and even popular, in former days. Governments were compelled to be economical, for the people demanded it, and the House of Commons supported it. Sir Robert Peel was an economical minister. At that time the country was poor, capital was deficient, trade was bad, the weight of our debt was crushing, and taxation relating to the resources of the people was enormously heavy.

'The people were obliged to attend to the pence because they had no pounds to look after. Now the nation has grown rich, taxation, compared to the resources of all classes, is relatively light, and probably, in proportion to its wealth, this is the most lightly taxed country in Europe. Therefore, it is not unnatural that when any one comes forward with a proposal for increased expenditure he should be received as if he were the discoverer of a new pleasure (laughter). Private members with large hearts and small responsibilities take up favourite schemes for some favoured class of the community. They demand higher wages and greater pensions, and they desire that the State should undertake new duties, fresh responsibilities and larger expenditure. We create new empires here, and annex fresh territories there; we are anxious to reduce postal charges all over the world, to relieve more rates, to undertake lifeboats, &c. For these things the country is well agitated, and interests are well organized, the House of Commons is well canvassed, and one afternoon, in the gaiety of our hearts, we pass a resolution unanimously Edition: current; Page: [56] which is to cost a few millions when it comes into operation a few years hence. This is the cause of the increase of public expenditure.

'I pointed out the other night, with reference to a motion of this kind, that it meant £25,000,000; but the House of Commons said, Only £25,000,000! How cheap! Let us have it at once (laughter and cheers). I do not condemn these things—they are all excellent in their way, there is a great deal to be said for them, and very little to be said against them; but the time comes, and it has come, when you must pay for them.... I belong myself to the old school, and I would gladly see a good deal less spent, for, in fact, a good deal of it is wasted (cheers); and, if I might reverse the old saying, I would say that those who call the tune must pay the piper. The wealth of this country has increased, and is increasing, year by year. You may find yourselves in temporary straits, but there is no occasion for apprehension and disquiet. The condition of your affairs is sound, solid and prosperous. The resources of the country are ample, and they are always at command.

'He (Mr. Goschen) then proceeded to show that while public attention was fixed on the great staple industries of the country—the cotton, coal and iron industries—there is a mighty trade going on, there is wealth being rolled up—wealth of which no public statistics exist, but which is nevertheless accumulating and adding to the capital of the country. He pointed out that the profits of the cotton trade were less than the aggregate profits of the medical profession, and that the profits of the coal mines were still less than those of the lawyers (laughter).'—(SIR WILLIAM HARCOURT, Budget Speech, April 25, 1893.)