PRESIDENTIAL ADDRESS. 501 



the profits of our shipping and the income on capital invested abroad and in 

 the colonies. The aggregate of the former is likely to be reduced through the 

 war, and there may be a temporary reduction in the latter through the same 

 cause. Also there are our visible exports and some minor items. Thus it 

 follows that the situation demands as large as possible a production of goods 

 consisting first of supplies for the forces produced at home, secondly the home 

 supply of the necessaries and simpler comforts of life, and thirdly goods to 

 export to pay for our imports of military supplies and of food from the colonies 

 and abroad. And this leads to an important conclusion — namely, that, after 

 the maximum demands both of the naval and military forces for men have been 

 met, there is a plain duty before those that are left. The exigencies of the 

 times demand that there should be no idle class, whether of idle rich or idle 

 poor. We have called out some of our reserves of fighting men, and we must 

 draw also upon our reserves of workers. In the expressive language of our 

 brothers from the Dominions overseas, ' it is up to the non-combatant at home 

 not to let the fighting forces down,' but by his steady and sustained industry 

 to help in providing, directly or indirectly, all the supplies which are required, 

 either in helping to produce these or in making those goods which are exchanged 

 for them. Thus there is a definite duty for every one of us, according to our 

 varied capacities, to take part in a great national endeavour. This is plain 

 common-sense. From the specially economic point of view, war is waste and 

 loss. Therefore it is obvious that we cannot work too earnestly or too im^- 

 sparingly to bring about as soon as possible the cessation of that loss and a 

 return to normal conditions. No doubt, here again organisation is required. 

 The people are not in a position to judge as to the balancing of the needs for 

 reinforcement, for labour for military supplies produced in this country and 

 for labour to produce goods to be exchanged for supplies or food imported. 

 All the more it becomes necessary for the authorities to strike a balance and to 

 issue clear and unmistakable directions. 



All this must seem far removed from the principle of laisscz faire, the 

 operation of which has become more and more restricted by the mass of govern- 

 mental regulations and emergency measures. But the people assent to the 

 restriction of their liberty of action under an imperious necessity. Because 

 sacrifices are made in a national emergency, without complaint or murmuring, it 

 by no means follows that the public is learning to love its chains. Unless the 

 war makes a radical change in the national temperament, it would be a political 

 mistake of the greatest magnitude to retain restrictions upon commerce even 

 a week longer than these are unavoidable. In the confused issues of warfare 

 we have the unshakable conviction that we are staking the lives of our soldiers 

 and the whole resources of the British Empire in defence of liberty. It would 

 be a tragedy if, in the defence of liberty, freedom of enterprise and labour 

 were sacrificed, for victory in war would be tantamount to the defeat of our 

 national ideals. 



In all the long history of this Association, it has never before fallen to the 

 one who presided in this Section to survey such a scene of ruin and devastation. 

 To the economist war must ever be the pre-eminent instance of wicked waste. 

 One is almost tempted to discuss again that old problem, debated by Bishop 

 Butler — namely, whether whole nations may become temporarily mad. Yet out 

 of all the suffering and all the loss, something that is necessary to the progress 

 of the world must emerge — something that, as things are, can only be won by 

 sacrifice and sorrow. It has happened before in the history of civilisation, and 

 it has now unfortunately occurred again, that it is needful to defend existing 

 institutions from attacks which menace not only these but the possibility of 

 future development. The sanctity of a nation's plighted word must be main- 

 tained as a basis for the stability of international relations. One issue which is 

 involved in the present war is the whole basis of international contract. Without 

 being unduly optimistic, one may hope that some compensation for the vast 

 destruction it has caused may be found first in the establishing of treaty rights 

 on a secure foundation, and then that a way will be opened for international 

 agreements which will lessen the risk of future wars. Moreover, the inviola- 

 bility of public faith is not only of supreme importance in the political sphere, 

 it lies at the root of the whole mechanism of foreign trade and the international 

 money-market. The new ' scrap of paper ' theory constitutes a bankruptcy of 



