I have taken office with two objects; to see whether something cannot be done to bring the self-governing Colonies and ourselves into closer relations, and to attempt the development of the resources of the Crown Colonies, especially to increase our trade with those Colonies.

For my own part I believe in a British Empire, in an Empire which, although it should be its first duty to cultivate friendship with all the nations of the world, should yet, even if alone, be self-sustaining and self-sufficient, able to maintain itself against the competition of all its rivals; and I do not believe in a Little England which shall be separated from all those to whom it would in the natural course look for support and affection, a Little England which would then be dependent absolutely on the mercy of those who envy its present prosperity, and who have shown they are ready to do all in their power to prevent its future union with the British races throughout the world. (Loud and continued cheers.)

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If foreign nations are determined to pursue distant colonial enterprises we have no right to prevent them. We cannot anticipate them in every case by proclaiming a universal protectorate in every unoccupied portion of the globe's surface which English enterprise has hitherto neglected. But our fellow subjects may rest assured that their liberties, their rights, and their interests are as dear to us as our own; and if ever they are seriously menaced the whole power of the country will be exerted in their defence (cheers), and the English democracy will stand shoulder to shoulder throughout the world to maintain the honour and integrity of the Empire. (Cheers.)

During the last 100 years, the House of Lords has never contributed one iota to popular liberties or popular freedom, or done anything to advance the common weal; but during that time it has protected every abuse and sheltered every privilege.

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What is the whole problem as it effects the working classes of this country? It is all contained in one word—employment. Cheap food, a higher standard of living, higher wages—all these things, important as they are, are contained in the word employment. If this policy will give you more employment, all the others would be added unto you. If you lose your employment, all the others put together will not compensate you for that loss.

He heartily agreed with Dr. Smuts when he said they must stand together in the work of resettlement and restoration. The hope of South Africa lay in closer intercourse between the two races. They were not really separated either in interest or character. If they went back to their history they found that in centuries long ago they were kinsfolk, and now, although they had been separated, the resemblances between them were greater than the differences. The characteristics which the British admired they had—namely, patriotism, courage, tenacity, and willingness to make sacrifices for what they believed to be right and true. He believed that with a little consideration on both sides and readiness to give as well as take before many years, probably before many of them could anticipate, they would be one free people under one flag.

We, in a spirit of humanity of which I entirely approve, have passed legislation—to which I may say I have without boasting myself contributed very largely—to raise the standard of living amongst our working people, to secure to them higher wages, to save them from the competition of men of a lower social scale. We have surrounded them with regulations which are intended to provide for their safety. We have secured them, or the majority of them, against the pecuniary loss which would follow upon accidents incurred in the course of their employment. There is not one of those things which I have not supported... But they have all entailed expense, they have all raised the cost of production; and what can be more illogical than to raise the cost of production in this country in order to promote the welfare of the working classes, and then to allow the products of other countries—which are not surrounded by any similar legislation, which are free from all similar cost and expenditure—to allow them freely to bring each country in competition with our goods, which are hampered in the struggle?

The interest of true democracy is not towards anarchy or the disintegration of the Empire, but rather the uniting together kindred races with similar objects. You have a portion in the great path that lies before us. It may yet be that the federation of Canada may be the lamp lighting our path to the federation of the British Empire. (Cheers.) If it is a dream—it may be only the imagination of an enthusiast—it is a grand idea. (Hear, hear.) It is one to stimulate the patriotism and statesmanship of every man who loves his country; and whether it be destined or not to perfect realisation, at least let us all cherish the sentiment it inspires. Let us do all in our power to promote it, and enlarge the relations and goodwill which ought always to exist between sons of England throughout the world and the old folks at home. (Prolonged cheering.)

The great programme of our civilization is still not solved. We have to account for and to grapple with the mass of misery and destitution in our midst, co-existent as it is with the evidence of abundant wealth and teeming prosperity. This programme some men would put aside by reference to the eternal laws of supply and demand, to the necessity of freedom of contract, and to the sanctity of every private right of property. But these phrases are the convenient cant of selfish wealth... Our object is the elevation of the poorer of the masses of the people, a levelling up which shall do something to remove the excessive inequalities in the social condition of the people.

If employment is falling off, what is the lesson? The lesson is that our home trade, our domestic consumption, must have decreased in a larger proportion than our foreign trade has increased. (Hear, hear.) The competition from abroad has grown more and more severe, and, on the whole, taking our trade as a whole, it must have declined if the employment in trade has decreased. (Hear, hear.) Wages have been reduced. You have only to read the papers to see almost daily some trade or another has to submit to a reduction. That, then, is not a proof of boundless prosperity. It is a proof of comparative decline, and, in my judgment, the handwriting is on the wall, there to be read by every impartial man; and, though I contemplate no immediate catastrophe, I say the situation calls for preparation while there is still time to find a remedy. (Cheers.)

Greenock was one of the great centres of the sugar trade... Then came foreign competition, aided by bounties; and your trade declines so seriously that only the very best, the very richest, the most enterprising, the most inventive can possibly retain their hold upon it. If there had been no bounties and no unfair competition of this kind what would have happened? In the last 20 or 30 years the consumption of sugar throughout the world has increased enormously. The consumption in this country has increased enormously; and you would have had your share...if normal conditions and equal fairness had prevailed; and at this moment in Greenock, quite independently of the other industries you may have found to occupy you, there would have been in sugar alone ten times as many men employed as there were in the most palmy days of the trade. But normal conditions have not obtained. You have been the sufferers; and, as I have said, a great number of your refineries have been closed, have disappeared altogether. The capital invested in them has been lost, and the workmen who work in them—what has become of them?