improve, if it provoke that honest criticism which leads to a firmer grasp of truth, I shall be more than satisfied.

{x}

{xi}

CONTENTS

CHAPTER I. PAGE INTRODUCTION 1 CHAPTER II FEDERATION 31 CHAPTER. III DEFENCE 59 CHAPTER IV. THE UNITED KINGDOM 103 CHAPTER V. CANADA 115 CHAPTER VI. FRENCH CANADA 153 CHAPTER VII. MR. GOLDWIN SMITH 163 CHAPTER VIII. AUSTRALIA. TASMANIA. NEW ZEALAND. .192 {xii} CHAPTER IX. PAGE SOUTH AFRICA. THE WEST INDIES 232 CHAPTER X. INDIA. 243 CHAPTER XI. AN AMERICAN VIEW 253 CHAPTER XII. FINANCE 271 CHAPTER XIII. TRADE AND FISCAL POLICY 278 CHAPTER XIV. PLANS. CONCLUSION 296 MAP Commercial and Strategic Chart of the British Empire, on Mercator's Projection ..End of book.

{1}

THE PROBLEM OF NATIONAL UNITY

CHAPTER I.

INTRODUCTION.

THE glory of the British political system is often said to lie in the fact that it is a growth; that it has adapted itself, and is capable of continuous adaptation, to the necessities of national development. The fact is proved and the boast is justified by British history, but behind them, no doubt, is a race characteristic. A special capacity for political organization may, without race vanity, be fairly claimed for Anglo-Saxon people.

The tests which have already been, or are now being, applied to this organizing capacity are sufficiently striking and varied. In the British Islands themselves a gradual and steady process of evolution, extending over hundreds of years, has led up from the free but weak and disjointed government of the Heptarchy period to the equally free but strong and consolidated government of the United Kingdom. In the United States, within little more than a hundred {2} years, we have seen one great branch of the race weld into organic unity a number of loosely aggregated provinces under a system which now extends over half the area of a great continent. Twenty-five years ago the process was repeated on the other half of the American continent. In the face of difficulties, by many believed to be insuperable, Canada, stretching from ocean to ocean a distance of nearly 4000 miles, has become a political unit, and already exhibits a cohesion which small European States have often only gained after long periods of internal and external conflict.

On another continent Australians, dealing with provinces larger in area than European empires, are grappling courageously with the problem of political combination, and the universal confidence felt in the ultimate success of their efforts shows what reliance is put upon the strength and efficiency of the race instinct. In South Africa and the West Indies the considerable intermixture of coloured races complicates the question, but here too the forces which make for unity are more or less actively at work.

Speaking generally we may say that in the long course of Anglo-Saxon history whenever the need of combination has arisen the political expedient has been devised to match the political necessity. This capacity for adequate organization has been the keynote of distinction between the democracy of our race and all the democracies by which it has been preceded.

There is reason to think that this organizing quality {3} is one which has given effectiveness to all others. The steadiness of the advance which the race has made in social and industrial directions has depended upon the security given by political organization at once comprehensive, flexible, and strong. No other branch of the human family has ever been so free to apply itself to the higher problems of civilization.

All the conditions of the world at the present time point to the conclusion that further progress must be safe-guarded in the same way. On the one hand, we see an extraordinary organization of military power and a widening of military combination among European nations to which the past furnishes no parallel, and which suggest hitherto unheard-of possibilities of conflict or aggression. On the other hand, the vast extension of industrial and commercial interests among British people, without any parallel in the previous history of the world, seems to demand a corresponding widening of the political combination which is required to give them security.

Meanwhile the amazing spread of the race has become the main fact of modern history—the one which assuredly will have the most decisive influence on the future of mankind. Only within the last hundred years, one might almost say within a still narrower limit of time, has this been fully realized. The tentative efforts of Spaniards, Portuguese, Dutch, and French to dominate the new continents opened up by the discoveries at the end of the fifteenth and the beginning of the sixteenth centuries did not {4} receive a decisive check till towards the end of the eighteenth. Then the new tide fairly began to flow. The flux of civilized population, by which new and great centres of human activity are created, has since that time been so overwhelmingly Anglo-Saxon that nearly all minor currents are absorbed or assimilated by it. Teuton, Latin, Scandinavian, with one or two limited but well-defined exceptions, lose their identity and tend to disappear in the dominant mass of British population which has flowed, and continues in scarcely abated volume to flow, steadily away from the mother islands to occupy those temperate regions which are manifestly destined to become in an increasing degree centres of the world's force.

With abundant space on which to expand, increase has been rapid, and it would seem that in mere mass of numbers English-speaking people are destined at no distant date to surpass any other branch of the human stock.

That an expansion so vast should bring in its train a new set of political problems, with a range wider than any that had gone before, is only natural. That new hopes should be conceived from this wonderful change in the balance of the world's forces; that new plans should be devised to utilize it, as other expansions have been utilized, for the good of our race and of mankind, is equally natural.

It is almost needless to point out that the conditions incidental to this expansion were at first misunderstood. The ignorance of public opinion as to the true {5} relations between mother-land and colonies, seconded by the blindness and obstinacy of politicians waging a bitter party fight, produced in 1776 the great schism of the Anglo-Saxon race. Chatham, Burke, and many of the clearest minds of England, believed that the American Revolution was unnecessary—in America itself there was a large, and for a long time a preponderant party, which held that in constitutional change a way of escape could be found from Revolution. The worse counsels prevailed, and Revolution took the place of Reform and Readjustment. It is, no doubt, idle to speculate upon the results which might have followed from a different line of action; if the statesmen of that day had proved equal to the task of dealing with the political problem with which they were confronted. The idea that the separation of the United States from Great Britain was a pure gain to either country or to the world may, however, be distinctly challenged.

It may easily be imagined that the earlier ripening of public opinion in England upon the question of slavery, and the earlier solution found for it on peaceful lines, might have helped to solve the problem at an earlier stage in America as well, and thus prevented the frightful catastrophe of the War of Secession in 1865. The close and intimate political reaction upon each other of