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- Ira. RITCHIE & LORD GEORGE…

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Ira. RITCHIE & LORD GEORGE HAMILTON ALSO RETIRE. SHAREABLE SITUATION IN UNIONIST POLITICS. lit. Chamberlain has retired from the Cabi- ^nd Mr. Ritchie and Lord George Hamil- have also handed back their eeala of Mr. Balfour's formal adoption of the IIoltcy of retaliation had prepared the pub- *0r the retirement of Mr. Ritchie and Lord Hamilton, both of whom have avowed Free Traders of the severe Cob- School. But the resignation of Mr. *dberlain was wholly unexpected, and has upon the country as a complete eur- *• The information was officially com- plicated to the news agencies in London before ten o'clock on Thursday night, cam# to hand in the following form:— -Jtr. Chamberlain, Mr. Ritchie, and Lord J*°r*e Hamilton have resigned their seats t 'the Cabinet. Their resignations have accepted by the Premier and the I ^ETTEB FROM MR. CHAMBERLAIN. »»accompanying correspondence has between the Prime Minister and Mr. 'it»erlain £ Highbury, Birmingham, Sept. 0, 1903. dear Balfour,—In anticipation of ths Cabinet which is to meet on Mon- I have most carefully considered the Ø8tnt situation as it affects the Govern- and also the great question of fiscal 4j^«n you, in replying to the deputation on •*itn^°rU tax> ancl- *Q addressing my con- ^ats at Birmingham, called attention to to changes that had taken place in our *«S»ercial position during the last fifty and suggested an inquiry into the sub- I do not think that either of us intended \f'. Provoke a purely party controversy, failed, not for the first time, a quefl- the greatest national and Imperial djJj^tance in the hope that it would be Jjj^sed with a certain impartiality by both ant* oPPonentB, and that the inquiry frj*8 initiated might lead to conclusions ^Pted by a majority of the people of this jJ~j*try and represented accordingly in the ^J*ts of the next general election. *ether our view was reasonable or not, qj certainly not shared by the leaders •coh liberal party. From the first they °ttted the idea that a system which was **ally accepted in 1846 could possibly re- any modification in 1903, and the whole £ ^*°Urces of the party organisation were ^jt^Sht into play against any attempt to Hon*" or even to inquire into, the founda- J1' of our existing fiscal policy. U the advocates of re-considera- *0 tKwere at a sreat disadvantage owing tin- Emitted differences of opinion in the W tv party. The political organisations the party were paralysed, and our op- £ jjjenU have had full possession of the J They have placed in the forefront of their Of fUmenta their objections to the taxation e °?d, and even to any re-adjustment of the "ting taxation with a view of securing C e lllutual advantage of ourselves and our r.olonies and the closer union of the dif- parts of the Empire. A somewhat un- 0.r,^Pulou8 has been made of the old cry dear loaf, and in the absence of any 1 Public discussion of the question I Cr«nise that serious prejudice has been ar.ated> and tliat wbile the People generally alive to the danger of unrestricted com- triftfion on the °* those foreign ooun- fijitr that clo8e their markets to us, while BQri S *n onr mar^et an outlet for their ciatl Pro^ncti°n' they have not yet appre- the importance to our trade of Colon- 1te Markets, nor the danger of losing them if »nd not meet *n 60016 way their natural Patriotic desire for preferential trade. rat76 result is that, for the present, at any Colo* •a Pre^erential agree ment with our •Hiav^68 involving any new duty, however j8 on articles of food hitherto untaxed, ta' even if accompanied by a reduction of tUivt^°n on otlier articles of food of equally Uj ersal consumption, unacceptable to the *'ity in the constituencies. However *>si> we may regret their decision, and how- « r mistaken we may think it to be, no 6rnment in a democratic oountry can »°re it. *Hdtherefore, that as an immediate ejwSfactical policy, the question of prefer- aDj, V> the Colonies cannot be pressed with aitjj "°*>e of success at the present time, there is a very strong feeling in j >v- of the other branch of fiscal leform, Go would rive a fuller discretion to the °vernment in negotiating with foreign ~°intries for freer exchange of commodities, *&d would enable our representatives to re- flate if no concession were made to our just ^aims for greater reciprocity. If. as I believe, you share these views, it seems to me that you will be absolutely ^stifled in adopting them as the policy of onr Government, although it will neces- t»only involve some changes in its constitu- tnits Secretary of State for the Colonies dtrr- la6t eisht years I have been in a o; sense the representative of the policy „c „ er nnion, whicsh, I firmly believe, is l?y necessary in the interests of the It .°nifea and ol ourselves, and I believe that Vq Possible to-day—and may be impossible 0, make arrangements for such tje8 n* I have had unexampled opportuni- watching the trend of events, and of bè; reclating the feelings of our kinsmen 1 ond the seas. to stand therefore, in a different position 1 of my colleagues, t nd I think I Ofj» be justly blamed if I remained in and thns formally accepted the excln- k. from my political programme of so im- a part of it. qtaink that with absolute loyalty to your 110 and its general policy, and with k r of embarrassing it in any way, I promote the oaase I have at heart bt In outside, and I cannot bnt hope that XU a Perfectly independent position my argu- "nts may be received with less prejudice 7° Would attach to those of a party leader. u;Ccordingly, I suggest that you should tq the present policy of the Government be assertion of our freedom in the case of tM "niercial relations with foreign coun- and that yon should agree to my len- my resignation of my present office >o v Maie6ty, and devoting myself to the jp.r« of explaining and popularising those *n ac*Ples of Imperial union which my cxperi- bas convinced me are essential to our welfare and prosperity. Tours very sincerely, (Signed) J. CHAMBERLAIN. Irr THE PREMIER'S REPLY. • forwarded the following reply:— 10. Downing-street, Whitehall, S.W., j. September 16, 1903.% dear Chamberlain,—I did not answer he?r letter of the 9th, which I received Bhortly tit ore my departure from Scotland for bv Cabinet meeting, as I knew that we within a few hours have an oppor- of talking over the important issues b which it deals. The reply, therefore, tjj I am now writing, rather embodies tQ results of our conversations than adds tnem anything which is new. Seeing, as I do. with you that the time t^8 °ome when a change should be made in o«e ^cal canons by which we have bound ()t.J:¡tsel\>es in our commercial dealings with dJ^r Governments, it seems paradoxical in- that you should leave the Cabinet at same time that' others of my colleagues leaving it, who disagree on the very point us both. Yet I cannot but admit, how- \v p reluctantly, that there is some force in with which you support that B' based as they are upon your special Personal relation to that portion of the *er Tersy wbich deals with Colonial pre- have done more than any man, living )5j. to bring home to the citizens of the the consciousness of Imperial oblige Vnw and the interdependence between the fragments into which the Empi^fMfe higJ^^Phically divided. I believe you to be •io i *n folding that this interdependence j>ej find expression in our commeroia-1 tjt^ong, as well as in our political and mili- j^reiations. believe with you that closer fiscal union jaj ^^n the Mother Country and her Oolo- Would be good for the trade of both, that if much closer union could be to s^ed on fitting terms its advantages h parties would increase as the years ^°^l°n- aD(* Colonies grew in wealth and ^he«. ever has been any difference be- I h^en us in connection with this matter, it °nly been with regard to the practic- of a proposal which would seem to re- Uj f? °n the part of the Colonies a limitation all round development of a protective and on the part of this country the I nt of a preference in favour of O^'tant Colonial products. Hot?. these requirements I say but if the second involves, as it light certainly does, taxation, however vPon foodstuffs, I am convinced with 8t,cv "*at public opinion is not yet ripe for arrangement. The reasons may hr6s y be found in past political battles and political misrepresentations. then, this branch of fiscal reform is Present within the limits of practical you are, surely, right in your advice 9» isdiseoiubly-ooxmectsd with that other branch of fiscal reform to which we both attach importance, and which we believe the country is prepared to consider without prejudice. I feel, however, deeply concerned that you should regard this conclusion, however well- founded, as one which makee it difficult for you in your very special circumstances to remain a member of the Government. Yet I do not venture in a matter so strongly personal to raise any objection. If you think you ca.n best serve the interests of Imperial unity, for which you have done so much, by pressing your views on Ookmial pre- ference with the freedom which is possible in an independent position, but is hardly compatible with office, how can I criticise your determination? The 103B to the Government is great indeed, but the gain to the cause you have at heart may be greater still. If so, what can I do but acquiesce? Yours very sincerely, ARTHUR JAMES BALFOUR. P.S.—May I say with what gratification, both on personal and public grounds, I learn that Mr. Austen Chamberlain is ready to re- main a member of the Government? There could be no more conclusive evidence that in your judgment, as in mine, the exclusion of taxation on food from the party programme ie in existing circumstances the oourse best befitted practically to further the cause of fiscal reform.

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"FVE GOT YOU NOW."