The Speeches of John Enoch Powell POLL 4/1/1 Speeches ...

The Speeches of John
Enoch Powell
POLL 4/1/1
Speeches, November 1957-September
1965, 6 files
POLL 4/1/1 File 2, January-May 1965
Image The Literary Executors of the late Rt. lion. J. Enoch Powell
& content t, the copyright owner. 2011.

Index of speeches within archive.
1st May 1965 Untitled Nuneaton Page 3
2nd April 1965 Untitled Wolverhampton Page 16
31st March 1965 Untitled Caxton Hall Page 18
26th-29th March 1965 Toryism, past, present Swinton Conser Page 22
and future
College
19th March 1965 Untitled Beaconsfield Page 35
8th March 1965 Untitled Grosvenor House Page 46
7th March 1965 Untitled Folkestone Page 49
26th February 1965 Untitled Westbury-on-Trim Page 58
25th February 1965 Untitled Aylesbury Page 66
12th February 1965 Untitled Wolverhampton Page 73
15th January 1965 Untitled Edinburgh Page 79

•
'peech of the -.JP, to the Lidl3nd
•1-reat of Junior Oh--J:.::bers u 1301-,:merce,
Council Ohsr.bere, :rune-3ton,'‘3p.m.3-Itur5tv 1 1.J.--3y 1e65.
Durin: the lnst -.leeks the foret-:rtund f -,-na3.116 Jimm
mee.1 if not nonotolised 2-“te
occupied ince:Lesn " or, to ;i\L,... the
full,..nr title , "tolicy for 7.)21CCJS ":;.af, incomes". Our.:3e-.. den tl,/-
little 3ttention to ;3-33=re for n-Jition-i economic
pirsn Id is oain-2.29,.'in Up in t rc ent ofEcono..-Lic
A.rf airs,
_
I like ernoon to redre,s- to Lnco bi considerino,
the theorj tlic u ili a of ;hie econoL-ic
for the nncns or indunstr,•
into it, -3nd zutner u2 tsr tnere 3iO recnonen.
'The ject, et.lted s0 r...).vo.Jn in -.L-.2-ibm..nt l-;Jt ;ur-
"to e7roduce -e-Jlen for fiie rm to Auo
the neleloornen't t-.ie
it :r.1137, jr e t...n of the
Lt it 'Jr induced to tJke
-71fferent decieions - on rod...lotion, met: -.ne, ent etc
- f2on t use 10 t-nen oeser_fee.
In Is resso tI o2C is riu
ord ir lon: c is

•
0
o infLuence ctio. z2:J:tsc
the intenti on LO imuu se the colupaision, H.11
kinds of he r rifl1n6* eL)res sions, sac
consent, co - or, era ti cunr2,dit3tron, re current. In ,
en the a ssa:-.:p tions uridein the Dieir tion, theie is
3 SCItO".:...S -..,1e.E3.K:1e3s bOU t" pic3n td.._ is not co:LitalsorilJ
imosed. F2esan. 1 the restecti:ze, p'.3.rts of the ..7)1'3112e to be
!Tic 11: re I t d o oneruer. If to, it is ess ti 3 1.
e --. te d ; i e
ic rt 2C)IL so.:te ;Jo- c 1,, e
s t'n.e
others dno re it .r,,oia ust, rrd ro-
Liniti 3 ed st3 te
tc it is intend e 7:1.3 ss.persecle.
H07eier volunt-.:Ir -tLe
for t ii dc Cre to -,:iter peo e Deb Yititur
3 0 SLu confonct oith it. Let 3o
ents 01 t e rL.i L2O._:n th • ic : e cluse
si Cie IrLIeflo Lu co7..2)1y.
Department ul C LurLic reoenuli
strj- to s 72,i1;,- u iLf r:L-3 tL 11 e S
un Ci1orLs r::“.„ 1970. „uestion:i.-)ires h: o Jeen
i s t:a e tc-,6 e ILL.duITiuC,
z:ent so -c L0 "ii ttle t...e se
i 3 t nI e re nt , L. . 3 i
so IIILIfiC

•
ans-e-erin:;,7
the euestionna ire ere to -eesdri:e u,e J;ross
dornestic -roduct in 1970 ;Jill be ,2re:at.:. 02th -en in 1964
otherriise tT1 1970 i1 be Lien-Lel or e re 'ear .
The, -ere then re: :re o truiidie, fur ea.c.- ;ears •iiiE0
1965 to 1967 and, in c,ese, for 1970., the foLrcein;ji; estimates:
total troduction, e-Le,e,rts02n1 il.nc.) 2LS re'.:uiralents
rriterials, fuel and labour( Iitalyse-e-, into c --teizories) , and
in iest:7.-:ent, 1j tjpes nrni resio..es.
The -.:0e0tionnaire stresses n tLe enediri
little or no i:lue" if th_e; inforil.etion Ia so:, died, '3;
least in tot.els, -PO2 the ;ear 1970.
t:)0 uuufl 3L10 cue. letin,i1 the oestionnaire,
71: ter 02 !u•—d Dein tne sec eni,
of the :/.--r-lode reeilee -..it =....nother Itheste..._:tes
fin-d de,--end .31-ed t no reirnt:e of 31 e3IC3
-en dnutu ladjus tm t" . L C 0 for3e-]2 to -.1u Ge le2J t.
obser ietion u f e 302 of ..--._;tclo2e1c
timete;ble:"li,
dee_ s th.,.::;e concerned Hith the consult-3tions
end roiooi iiee in
t". is en-;diry. there is ar,„±:ent need fur
-.,hion .xu-lelenTient nsor0 cen .crk court.
ai LJor 31"..an-=-....,;ere:, direct u23, 5 0
02 nelised inddsries,
11edlies' 2020 mu :u02•uu 022 0 t

-T
'T 7 :T, (-v.) •
g T-I0 D
GT3.0 7;77
: T
P ,r,p,IT701! 0 T
9qa 'TLI0Tsci=on 'TTou700
6c6T TIT Tiel:LT
e7.7:1 ITs'rnJoTprT UGO,JO
,To, To 0ATJ.
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,7 ET
cri7,7-,
PU C1TssGTGLI0---i, @a. ITT Lueu.q „To
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1,77r4EnpUT ui T-T='Tj
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G7CC T.:-.SGTOC
"LTC; fr47.77=j „TO 901(.. ET ci:„9rTE.t. 0'; .10 "Eqr-L-TT
To, norr ^-,7 n Tfl 'ET' : 0 ,GnTa.A ou a0 aTTT
=7,0 ITT,", ILITT'L:ue 0/.46T. .10J)LT-rf"c„:-
4 -:;a-rgo E'u77.1.131-C 7 4
IT an 0730-4bF:
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- FuT-J,0i,Tp.inegc. 940 o.ru-Te!'c: 7-9CB.]:01-4
0011 0Pt.t 0"- 111 SIT— 7-T,T Tplae G.INE1,7,10 7,4ea 11-, 9

•
by en" CI-..ancs, oo 2GO million tons, end if so
I.
But eri-raps it is un12 air to :Dion on
ndustries, bee Tuse the," '-31.e L31f •:Dolitico1 re ther
thsn com_nerciel entities, 1i331e -to be orders-1, b2o-na.e,aten
oo1itici3ns into iceepin: :)rices 3.:y;:n or their -.Lebo or
force up, or to be f therbedUeU Int 060 L.-5:o3tii -des or is-
Crin1nor, sn ion oi their coin -)stitors. .TE O-- se,
-.nnterd enoul;h, 3 =Eon/ -2in:ent a o.c7_ "vice
Co2:le r i„;ht for el n]tione1ised industry. ,3o le:t
at the- steel, incr:astri, for
the ste,e1 firo , ererione •
territl"nt. If -r)e Est tL.Los t'ne
P13n 120 2 1970,'na-.2.-12L,"- s- o liu to be 2i:2:Lt.
:--- , he,26 , -7,h-3 1 7.,
the -form book. 1 oar s :aEo t'ne 12f_.
iederation ireC o steel -:rodaction in 1953
3 S 24.7 rni.Jlion ons. -. fortni Jl
oeir estL:i 'ate n1 fore° inste rsccr 00. , 1i0 Lro,-,t-at
lin(-_ely to be 26 or Jô million tons. umm en t3t or :•2e",
"o so-onor ! Jn'e 2.- in :2:Li:it,
21 ,:zniary
3'-'17,53 rue—, is -1 3
c:i f;._1; re j_
:..31

— 6 —
rid -.T.31-,Y ": 7. the Irn ni . jteel d na the Zef.ers—
ion bre c 1 .e in 1964 s s'le indas try be
lucky to be, schin; 30m. tons 7ir in 1970. Jusbici6n
on both it'ne short—r3nEe steel roduction fo2ecests for 1963
lung—rane forecests for 1970."
"1::othi_n.," the cor.i:.e:its tor cnntinuPd, e
t: e 6oard or 5 e inc73ustry bu t 7,11 e )erfcri.::nco,
steel. The ides of -3 7r ductioL Leieo onlj 6c; djrn
tons 3 I-E-32 oj 1970 bec,..3):..e.3333 erediole .•:ith each OLL.-3
fes, indeed; .3n:d 7.onder fi ore u e indastri
- :rote into its L.destionnsire for 1970. 1
_1_4,,
c ance, bc 30 naiilion tons 2here is, of Course, rct dif—
ferece fluctuations in i e se f
-nacity nd on3 terJ-o trens, es-oeciaili if
cre.7ition of ne c s citj. :E'en .33L) i ertJnenti',/
on se o
eu3r_-.ence fi.ve y:rs hence
If this is ;13icl-3 -::chss
..J;t for ti
feide:Hti s;.•
t, -
littleies nI z riu
ill e.:33, c bil3t iun
2,:-.,ferrin.h s bL321ci ic c,!ul

- 7 -
ensin.serinz industries )ici C---mpri se
0 ser.y.-3r9t e in no
estirri:.] Ie 111 int ent1on-r-2.11,
032 .1.3.3,Zh 1e3rtedly, en I of -3
c,111e..i. !J.:2sn ,2 -
o-,-,-:sointsin i7L ill not, , c3nnol, 10 so under 1,-;.:H.e:
Coriditi
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3 13 ;.71-r3Ti_
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SUCh t 3 31: i33c,H3osf 0 313 in.',..uitri.es
oe const-2-des-..:Jf.
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de 7J:2i
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e rtrrient of"
3*2 - 7:3 30 22 -
ssd.....i.ed to 7220-1201 C
31-.01: it, c ;
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teris to indiiidul ninn, nent c-]nnot
(-, nifl t C °ZS:. ere ] c 3 c 3
j • fined LI_ e2.] s s 3 n./- 2.]]de is
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zi•-323 ";111 uns ce t.he
co.urse
not
31.11C:3 t'-]e :J2 0 i
cl-]n not be d ch ]:=;li e ]o- :Le re SOL:
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L3ible tells rie , he is )1,rin,_;o
ef]:=....,rt; 33
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— 4.74,11' ,e,

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'233
,

CONSERVATIVE AND UNIONISI LOFFItu
•
RELEASE TIME
9323 19.30hours/2nd Yoril, 1955.
PL-72,-17] OT-17ca C31,7C7ULLY FOR ANY 217-it-.7-07c 1-7:7 7.77TT77v
7Eztract from a speech by The Rt. Hon. J. Enoch 70-7=
(Thlverhampton) at the Institute of Thlding
Dinner, —ulfrun Hall, 7olverhampton, on Friday,
2nd 4fil, 1965.
'o seem to have a positive mania for interesting ourselves
in areas and industries which are doing badly, and ignoring or
even sneering at thos,- which a-oe successful, even while tho
nation accepts the fruits of their success ° without gratitude''.
This is not the attitude of mind best suited to a country
engaged in a fierce international race. Helping lame dogs over
stiles is a generous ard humane occupation; but those engaged
in training greyhounds -will do it strictly in their spare time.
therefore rejoice, as a Black Country man, representing
what a stranp-er has recently called the woliest town in England,
to pronounce a -oanegTric upon this place. The whole of this
area is one great workshoP, a highly effirdont and a highly
successful workshop. —e may not be easy to mistake for
Athena, eithp-0 the -0-ni Y_thens or the Lthens
-P
-L 7orth;
but it is be^ause of what we manufacture and sell that not only
our own people but many of thoir fellow citizens elsewhere enjoy
a standard of living which includes access to the beauties of art,
the beauties of nature hero !trid abroad, and th.e L:70 ,0d things of
life, on a scale never known hefore.
T cluestinn whothar it is wise that me here in - Olyerhampton
should be laid under contribution, and the e::ranson of our
Nlach Conntrv enterprises orm a ed, in ordel- to sharo, ulD other
aroas and industries whom prowress snd change has passed by.
Tt mould be better to say to them, if they have hnds and
brains to spare: "come and join us here; here thane is no
no in,7- n,
/The it.eaia not
Issued by the Press Department, Conservative Central Office, 32 SMITH SQUARE, 'A estminster. SA1.1. (Telephone:

1r
•
9:523 70"TELL - 2 -
The idea is not a new one, somo strange new fansied riarado::.
It is how the 7Ka.ck Country, and this town itself grew: to be one
of thc, grflat Do-7er hous-s -^onomy. In years gone
by
:Deople came here from 7:11 over tho country - perhaps above
all from 'ITales, as my own forefathers did - because there was
o-oportunity, because-though
they did rot know the jargon thenit
was a ugrowth a ea-.
It is a ''gro,T:th area:' still.
say, let it gro-.

Extract from a
3peech by the t on. J.Enoch PoeJ.l , 1,1*F. to the
Annual •.:Teneral Leetin_: of the Cities of 'London -:estieinster
Conserle tive Asuc13tion Liestminster :tssociation
Caxton Hall, J. 7 p.m. Jednesday, , áls; 1,3Cch,1965.
ikre ot,t 1.4.-crz4
sessott. of the year r is t'ick
the iuics of the e,xe ..rt and the i ex tisbn the Chencellor
of the ceier ho much. dereand Lu "t.-',..e out of -..;he
econo_ny" or "put into tile economy". ih e co armtor en-press
their fa/earii hs•.,-Jers in Dere.s cef -precise fi
i',100 million
interilinably yhether 4:14)C5.9.32.- more 02 ZeCtmillion iore
*-
Or i100 million less is"right7 :hen -3..e Gb ncJor fil'arieu
sceech ne spends leaden `)'31-332a7,1-is :Er '.';ur_;_in; throu,:;t
11133.3 of sta tistics and predic tions to the cim Lere
conb_udes that this or t'Lat fi ire .L.n his judinent is the
"rirrht " one and that therefore he is m•etin7 th e follo'.dn6
bud.rEet crotosals . I bet ;le shall ha ie it 01.3U
Call,.,-han this yea'r.
in ef Co.. chs ore euej.
.
. . . .
ti,reugh lobeiestanst i
t-:eoee h-..re seen ihiented
or incresed, the ninis ire in soir ufeic es scribbline
3y to eei. in :LUC 000 litle tt)
"put ino or "teite oat of the ece:_umy .
i j. 'are tey slnin ii on t eu ttem
line of the 13 st a of the bu..1;et 3tete:_ent. I L. t1'.e
surilus cr eficit or, jris e.ere recenti./ cee_e Do

•
be called, the "net borro-,-dng reriairment". (As
of fect, it is not -the true ne; borroin„ re- airme.ot of
Cr'overnment, beceuse ;here re o er iimbortent su::4'ices of
or dem.snas for casn .ich do nos -e oer in the eud:zet stetoment
ot 1.1; for ixamale, te xchneE- Account,
. _ .
mus; halo tor nea ±3.s.-L_ ()_ sterdin..- to ;he , Exchequer
this jeer, -bith ;!-,e bound so -ber-3k..) dlo the in-portunt
f3ct -ioout this fiure, „:7ich ezerybel, eres esuot, 011
ehich the Ch :nceli_or of the Exc ioguer bujis I.ie Ou:12,et
reasoning, shich i eu LU be t_ho .i;heel for ..-o-vernent
to "steer the econony ni th, is t';'.'.-at it is usuelly niliJ
- the error is usuelly f =Jr .-re:3;er t the 1-itudes
•cen.'its en the J 3110ellor he io boen ar oinp
.2;re.te-,‘ than the diff•e-ence betvieen the extreme 'Toints of -ii•-oA
in either ,:',irection-r,don::st tIde co...onteto .'1.rdd the funbics;
t in i o- -t-e• boh-'•iir of t-1-- economy bo-LL's 11urele-t'i
either to •-•,ha; coo Jo =:ncellor in-sende.1 to do to ne; oerro'.ing
re- uirez.ent or t-,t) the riri b hi cone
trget.
'ear' bud]et deb,Jte - firs ; fch h;d1
free to sp-E'.• Since l966 Nt. I cam7)-r,r-, e
c /e2-31_1 surplus ur deficit .i ;1.! '
h. economy to di :tcli-le c n , • tdins
J.; 11 jitins o .ndle , undete_;re:]. b: 1 CI;

3
the su, still rises even if 'Tis blo-.-Js out. I -ooinu
0
4.t that in the fin -:nC1T.'.1 year t en ,ust ended 1.,_riud1in had
.d.ceted to -put million extr a into the econon7,-;nd tha t
the e.-21.7•ert,,,' had oj their 11,-.:,,send seld not enouEh,
,ihereas j fcu there had. been a loveli boom but the intended
£260 million Li Miti on to t net borro--.-iin:7re .,..isaLT t I-rad not
3li3ed3 O. In o-,-;:er ...s;o2ds,
c andle , s it -,-.Jer h'ad been absent, „DLL:, conse-
,.:.uence 7: beautiful sunrise) had dui' errived.
to
esiered t t1 tte444.1 be a 2 -ither bizarre ,
or umi rate tactless, excuzsion on my -,art into lo :ic )nd
corn- onsense. O let us see h-J.7)ened then.
In that buda'et las: the :nctlior rroceooeu to ith
dra7J fr,, the econu:,.:/' million of d2C
bi increased atxe ti on, so t t the ne borroin re rent
.3- .._,0:1
un4'-/
800 r;i1rion,I.i
=.1-1 esin.-1:
tel
900 million if hn rn 'on. bes c
E3 old , io th::.t ste the eco-
3 7, lie definite check
ot
t
)
c on toLu or,
,
I 3
e er-i; of the a , o onin, no

ak"/11,.4.-t,et
ment had turned out to be not ci ICmillion ar ;::;900
but just over Z400nhidion -au-y-)ose had 3nnuan-
--
ed thet he cs sud,2etin.s. for an overall
2:6-31
/million. All the corri:- en tat ors, folla:Jed b the,
the rest, ie rent Le..1.1.. 1.Lurea
dust on their he3ds 3nd scre-3ned blue :-:urder. iu
th]t fin-=anci:9.l ye,r 1964-55 _.neo e
aepression bat one e2 cont.i.:_uef& in
terMs.
All the -2,=.:aoc Of e ranne :.)f ink, dc :ere
discu.--sin,g r 1-1 s ZO milli on 3 di
t3x.Ition tOO .muc- or too little, -:nd etThr net
r Tairement of 8..O milli - e'aff-lbt ontly
or de--)ressi to the econo:::y, cr r_, ccci,
to e 1o 21 ,1 as if t been e
medicine L. c _ndle too too I ,te
Bu•._; inej oil ill be _;",t it a n ti
just to e , ,e; if r_LL thf_nf,
144-, /c-o14d4A.
A,fr aati 4-1"-t-4-/
Giv,txpel
h'erc
I'

SWINTON CONSERVATIVE COLLEGE
MPrch 26th-29th 1965 Course No. 12/65
week-end
COURSE MAINLY FOR BIRMINGHAM
Theme: Tor-rism ast present and future
TIE THEE
BALFOUR TO IlmILLAN
-WHAT SORT OF SOCIETY
WHff SORT OF ECCNONY
The Principal
. A. J. L. Barnes
Mr. T. L. Higgins, M.P.
Mr.illiam Clark, M.P.
AUGUST 1961 TO OCTOBER1964 The Rt. Hon. J. EnochPowell,
M.B.E., M.P.
THE CONSEQUMICES OF rt-TE GENE,A.T.,
ELECTTOIT
TORY PARTY ORGYITISATION
THE TORY PARTY'S ROLE DI TIE
POLITICS OF arE FUTURE
The Rt. Hon. J. Enoch Powell,
M.B.E., M.P.
Sir Michael Fraser, ••B.E.
Mr. John W. 7T.Peyton, M.P.

THE =LE The Principal —
A study of party history shows that from time to time we come to the crossroads;
for instance after the fall of Peel when it took from 1E46-1874 to get another secure
Tory government. On each occasion Toryism has been revived by a return to the source
of our faith; and now that we are all thinking about future oolicy, we should also
think about what our party stands for.
The movement of ideas is now twaway and it is no longer a matter of policy being
handed dawn from above. But we cannot produce policies out cf a vacuum; neither shoure
we put forward pclicies simply to catch votes. We can best produce policies as the
result of an interpretation of a basic philosophy in terms of the facts and circumstanceof
a particular tisae. The main aim of policy is to propose what the nation needs.
Principles are not dogas. or creeds; they are more a way of looking at things, and what
the Conservative Party exists for is to defend the values which we have developed over
the years. Such values existed leng before the Conservative Party, and this might
prcvoke us to ask anew the question3 which Disraeli answered, what meaning do the
principles developed in a rural society have for an industrial Britain
Whilst policies change the principles behind them do not. Our society is an
organic ane; in other words we act both with the past and the future in mind.
Continuity has a very real meaning in Britain; similarly there has always been a Tory
emphasis cn 'One Nation', as Disraeli put it. The Tory party is a national party or it
is nothing. If the Conservative Party does stand for the middle class it does so only
in the sense that it stands for it as part of the nation as a whole. Leadership muet
be open to those of industry and ability, irrespective of their background. Equality
of opportunity is the important thing, not equality, which is neither possible nor
desirable. Tories have always seen the merits of diversity and variety instead of
uniformity, and have stood for a society in which weslth, power and responsibility are
diffused; that is why we want to see an industrial democracy in which every family has
its own house and owns shares. In such a society co-operation and responsibility are
encouraged; self-reslisation comes through groups like the family, which has the same
flexibility as our institutions. These have always bent in the face of change; that is
why we have had a society in which continuity has been preserved and in which evolution
and not revolution has taken place.
While Tories recognise the importance of authority they realise that if society is
to be healthy there must be the maximum opportunity for individual freedom of choice.
What matters is the individual; as Lord Eustace Percy said 'The Conservative finds the
motive force of human progress not in the power of the State but in the individual's
conscience and sense of duty. It is the individual human heart and not the Government
which is shaken by the wind of the Spirit'. 'The laws go but a little way' as Burke
put it; more recently Calitin Hogg has stressed that the Conservative does not believe
in the unlimited power of government to put things right.
At this point it may well be that we need someone to, interpret anew Conservative
policies in terms of modern conditions. This will involve keeping certain things
firmly in mind. There is a cardinal need to avoid carrying arguments through to their
logical conclusion. We have to remeMber that although we owe our higher standard of
living to what the scientist has developed, the business of change involves risk of loss
as well. Disraeli saw that change was inevitable, and constant, but that it should be
carried out not in deference to any abstract or arbitrary doctrines but in accordance
with the manners, customs, laws and traditions of the people concerned. In other words
we have to be careful to see that change ouses out of our nature as a people.
Conservatives need to remember the value of balance. Bolingbroke summed up the
meaning of the balance between freedom and order when he said " Because popular liberty
without government will degenerate into licence as government without sufficient liberty
will degenerate into tyranny they are mutually necessary to each other". In modern terms
this explains why Conservatives should reject both Socialism and laissez-faire. As far
as Socialism is concerned J. h . Keynes remarked that it was 100 years out af date, and
he said that thirty years ago. It is inefficient as is anything run by theorists.
The great clanger is that already 2q4 of our economy is socialised. Far from thinking of
undoing socialism, we are forced to realise that further socialisation will bring us to
the point of no return, when socialisation has to be extended simply In order to keep
the economy going. But Socialism has greater dangers than the purely material, since
its centralisation threatens the ba7snce between material, moral and spiritual values;
and because the two sets af values are interdependent on elbowing out of spiritual and
moral values might well destroy the source of materialwell being.
Conservatives must eeually reject laissez-faire. It Has no relevance to the Social
Services, 1e all accept that there are certain things that are best left to the
government or which only the government can carry cut; while at the same time seeking to
keep these to the minimum. This is not to sugsest that we should cease to think how
the Secial Serviees can be improved or insist that they shoud be exclusive as well as
universal. For instance at the moment there is the need for more attention to pensions;
while in the lon- run private scheees will probably eake the State T)ension less importu-

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to people, there is a need for more selective help. As for the economic spheres
we have to recognise that it is possible for the State to intervene too little as well
as too much. It is doUbtful nhether there has been adequate programming in the nublio
sector or whether the public and private sections have been sufficiently in touch
with one another. But State intervention should not be undertaken without good
justification, and since no economy cae work effectively unless it is based on market
considerations, the best kind of State intervention being that kind which will help to
make the market work more effectively. A move towards the Common Market could help
to make us ncre coepetitive; the same could be achieved by certain changes in Company
Law and in taxation.
We can be feather-bedded too much; and we have to look forward and outward;
Socialists are not capable of looking outwards. One of the problems we have to think
about is Sterling and its future. Once we have an international currency then we will
find that existing groupings such as the Common :Jarket may be too small. But this
kind of world will not cone of its aan accord.
There never was a time when Britain needed the Tory Party more than it does today,
and there never was a time when the world needed Britian more than today. But first
we as Tories have to go to the sources of our faith:
'All our past proclaims our future;
England yet shall sto.nd again'
D.S.A.
BA:FOUR TO LACI.all-LN
hr. A. J. L, Barnes
The Conservative Party at the beginning of the Balfour administration was still
essentially the party of the landed interest. There was also, of course, the movement
of Radical Imperialism, advocating the use of the profits of Empire for social
imorovement, which was the chief contribution of Josenh Chaeberlain and the Birmingham
Unionists to Conservative thought.
The Balfour Government was not without its achievements. Three of them are
Particularly significant. The firstwas the 'entente', the beginning of our long
love-hate relationship with France; this marked the end of "splendid isolation" and
the first sign that interdependence was to be Britain's future role. The second were
the great army reforms, the key step of which was the foundation of the Committee of
Imperial Defence; from this was to derive the modern Cabinet structure. The third
achievement was the realisation that education was going to be of enormous importance
to this country, and the establishment of public education. The work that Balfour
began, and took a personal interest in, was to be canpleted by R. A. Butler in the 1944
Education Act.
Another achievement of the Balfour Government was the Land Purchase Act for
Ireland, which put an end at least to sone of the economic grievances of Ireland;
onfortunately it was too late. One other measure which might be sipqled out is the
first move towards Labour Exchanges and towards treating unemployment as an economic
problem, the work of Balfour's brother at the Local Government Board.
The significant point about the Balfour administration however, was its failure to
concentrate on economic problems, and above all to conciliate the rising power of the
Trade Unions and of labour as a political force. Disraeli had recruited the force of
labour into the Conservative Party; the Taff Vale decision of 1901 destroyed the whole
basis of trade unionism, and paved the -way for many of the economic and social problems
of the following years. It is not without significance that Stanley Baldwin grunted
about forty years later that the Conservatives cannot talk about the class war: they
started it. To the Taff Vale decision can be traced the real emergence of the Tabour
Party, which up to then had been not very much more than a pressure groun.
. In the inter-war years, during which unemployment ran at an average level of around
lq,„ Conservative Governments were compelled to make a choice between three economic
The first, isolationism, was rejected. The second, ameire Free Trade, was
impossible because of the attitude of the Dominions; this became clear at Ottawa.
Finally there was the policy followed by Churchill in 1924.
The Conservative Government af 1924-25 has been very much underrated. The first
contribution it made was a tremendous expansion of National Insurance. By the end of
the 1920's much of the basis cf the Welfare State was already laid; much of what the
1945-50 Labour administration did was not so much pioneering as the consolidation of
what had already been done. Chamberlain consolidated public health legislation, he
completely reformed the powers of Local Government, he swept away the old Poor Iaw, he
consolidated the rating system, and set the pattern for all subsequent welfare reforms,
In addition, this Gover=ent made very serious effor',,s tu grapple with the
economic problems. One of the stories always told against Baldwin is that he stood up

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in one of the economic debates and said that the right way to tackle our economic
difficulties was to reduce our exports; there was a loud cry from his benches of
"irlports!". He said, no, he meant exports. Everyone has told -Lhe story against him,
But what he was referring to was the extreme dependency of the British economy on the
old, basic industries, which was leading to maladjustment and to unemployment. 'Alat
we had to do was to switchour production into new growth industries, and to this end
came the first Tory nationalisation Leasure, the creation of the Central Electricity
Generating Board.
At the sarE time, Churchill at the Treasury - who has been underrated as an
economist, and overrated as a nolitician - sought to cheapen our imports by bringing
back the Gold Standard. This was by the need to revive world trade, upon which the
British economy has always depended; the Gold Standard was seen as a way of providing
a stable currency framework. A second reason was that a return to the Gold Standard
would increase our invisible earnings. Churchill's policy was to get both British
industry and world trade "on the move", and was linked with that of the Ministry of
Labour, which was to get labour out of the declining industries.
It is thus unfair to say that the Conservatives did not have an economic policy in
the inter-,war years. The great Depression - which was caused by a coMbination of
French selfishness and American incompetence - meant that the far-reaching long-term
plans could never be implemented.
The policy of Appeasement has also been misjudged. The motives behind it have
always been thought of as being political, whereas in reality they were economic in
origin. Very largely it was inspired by the desire to promote the economic reconstruction
of Eurone and the expansion of world trade.
As Britain was forced to turn away from Empire, the problems inEurope became more
acute. There was a sad division of policy between ourselves and France over the
Versailles legacy, which contributed to the Ineffectiveness af the League of Nations.
Appeasement began as an attempt to bring Germany back into thefamily of nations and to
rectify sone of the injustices of Versailles towards the Germans. France prevented
any effective economic co-operation between Austria and Germany, thus creating, by way
of reaction, the pressure for "Anschluss".
Churchill realised the danger of Hitler to European peace, but unfortunately
overestimated the extent of German re-armament. Hence Baldwin and Chamberlain, who
had the figures, and who were in any case getting British re-armament under way,
preferred to see whether a re-drawing of boundaries in Europe would not lessen tension
there. There was quite a good case against Czechoslovakia aver the Sudeten Germans.
Also it must be remembered that the Commonwealth was not prepared to fight over that
issue. Once, however, Hitler had taken in the Czechs, as well, the Commonwealth rallied
to Britain's determination to resist, which can be seen in nany ways as a triumph of
ChaMberlain's policies.
14emories of the Depression and of Appeasement have done the Conservative Party a
great deal of harm. Consequently, after the war, we were defeated by Labour. Far
from planning the economy, however, the Labour Governments rarely looked more than a year
ahead. Instead, they maintained in being a complex and inefficient system of controls,
which Butler was able to sweep away to advantage when the Conservatives were returned to
power in 1951.
It has been said that R. Le Butler only understood 24-'—/of what was going on in
the economy; but that later Chancellors only understood 2V, Certainly Butler
understood the political implications of policy, and resisted restrictionist pressure.
Later Chancellors did not sufficiently realise that our recurring economic crises were
not caused so much by pressure of demand as by the structural weaknesses of the economy.
The 1957/8 crisis was misread by Thorneycroft as one of internal inflation, whereas it
was in fact a crisis of external confidence. There were two years of expansion under
Heathcote-Anery, but in 1960 Selwyn-Lloyd went to the Treasury and was eventually
persuaded to adopt restrictionist policies once again.
Very few Chancellors appear to ha-m realised that the fluctuations of the British
economy cannot be controlled in the way which was attempted. The effects of both
"brake" and "accelerator" tend to come only after a considerable time-lag. ',7e also
allowed the Trade Unions too much rope, and tended to fall back continually into a wageprice
spiral. Mereover, although the result was a cost Inflation, we tried to solve it
by cutting back an demand. This tended to penalise the growth industries, with the
result that we found ourselves lagging behind our competitors by 1960. It was then that
Macmillan decided that a "wind of change" should blow through British industry and
applied to join the European Co=en 'Market. There were also political reasons for
this application: the fact that the "three circles" concept of the British position in
the wbrld was no longer tenable.
After the collapse of the Common Market negotiations, the Conservative Party was
without a sense af direction, 7re did, hewei,er, make considerable efforts to define the

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problems that faced us. This was the great period of Reports. In addition,
however, quite a lot of modernisation did take place. It was, after all, a great
achievement to have made ourselves aware of our position, in particular of our
international interdependence.
GoB.R.
THAT SORT OF SOCIETY
a‘. T. L. Hi Tins H.P0
The recent Socialist tactics over the Bill to give a pension to the very old
provides a starting point for considering the political side of the society we wish
to see. The Government blocked the Bill althouFh showing no sign of arranging the
Income Guarantee promised in the election. This episode should be eUblicised since
it underlines the urgent need to get rid of the Government; this kind of action
threatens to bring Parliament into disrepute and emphasises that what we have to be
careful above all else to preserve in the future is a democratic society. But then
whereas the Conservative Party is a centre party shadinginto the right, the Socialist
Party ranges to the extreme left. We do need to remember the continuing danger from
Communism; it is similarly that we tend tu forget what happened in the thirties.
None af this means that we want a middle of the road alliance;
we woo3d
either have to continue indefinitely with such an alliance or sooner or la•. r have to
have an extreme party developing on one flank or the other. We should demolish the
idea that the Liberals can in any sense provide such a middle of the road alternative.
They have exploited local issues without regard to consistency owr the country and
they make it necessary to affirm the great tradition of Burke that M.P.'s are not
delegates but representatives, voting for the good of the country as a whole and not
any particular group.
The current series of C.R.C. pamphlets, New Conservative Tasks, illustrates Some
of the thinking being done on our policies. As far as the eccnomy is concerned we
have to do something to forecast what the basic economic trends are likely to be;
though reaembering that economic forecasting has its awn dangers. This brings us to
the changes in our economic structure; in place of mass unenployment we have a
constant knife edge situation. It is now emerging that this is basically a regional
problem; when demand is increased to mpp up unempleyment in the North East it brings
inflation in Birmingham and London. We have to balance up the regions so that we can
run the economy on a steadier platform and at a higher level of utilisation. Wage
agreements and pricing policies on a national rather than regional basis both tend to
discourage investment in those areas which need it and we should also think more about
regional investment allowances. To complement the econcmic measuren, urban decay need;
to be tackled; otherwise there is little hope of attracting people to these areas.
Abetter regional pattern means social and cultural as well as industrial balance.
We must aim towards a commetitive economy. Transferring the decision to
investigate mergers to a separate Registrar as we weuld have done would not have
threatened to prevent desirable mergers as the Socialist Bill cn Monopolies does.
This introduces clauses against big business as such instead of tackling the dominating
firmswhich are in a position to raise prices to the detriment of the consumer. There
is a great danger of the Socialists falling back on a 'Little Englander' policy,
blocking our imports rather than helping to make us competiti*e enough to meetthena
Being competitive also involves reforming action on the structure of the trade unions
and ensuring that voting, bcth for the election of officers and on strike action,
should be by secret ballot and subject to some qualifications about minimum nuMbers.
Yet the actians of the Socialist Government only postpones action.
Turning to sociological changes, the increase in the standard of living, for whic
the Conservative Party stands far more than the Socialist, has accellerated the change
in the structure of incomes; the pyramid shape has given way to the diamond, and after
tax, the onion. Another consequenee is the need to substitute machinery for the
labour that is becoming increasingly expensive; hence it must be made easier for
people to change jobs. People are no longer worried where the next meal is coming
from; however they are worried about mortgages and hire purehase and we ought to give
them incentives through tax changes to work and to earn more. To complement this
there is the need for a society which is mere discriminating and better informed about
choice and opportunities.
Turning to the wider question of 1.41rope, we have to rethink our attitude very
carefully and consider what the move towards Europe will involve. Az far as
agriculture is concerned we must ask whether we want to renain an agricultural country
to the same extent that we have been in the past. If productivity on the land
contInues to rise we are going to need fewer people in agriculture. The main
difficulty has been that the European systen of support is Quite different. It seems
that the British farmers are now realising that because they are more ccmpetitive they
in fact stand to gain; the disadvantage of the European system is that it involes
controlling supply, restrt7pting imports nnd raising the price to the consumer, whereas
we know exactly hew much our systen costs tne taxpayer. As far as industry is

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concerned, we should welcome the competition cf a bigger earket. We should anyway try
and work towards a lower level of tariffs to ensure a greater choice for the consumer.
The quality of life that we have is likely to depend very largely on how suocessfu
we are in managing the economy; Conservative policies are much more likely to raise
the standard of living and enable people to have better opportunities than the
dogmatic Labour Party. But as far as what peonle do with their lives we in the
Conservative Party have faith in the individual and, given the framework, the ability
of people to choose for themselves.
";Te want above all else a democratic society, because this means that the true
wishes of society can be reflected in the structure of the country. We want a
regionally balanced society, for cogent social and economic reasons. We want a more
competitiee society and we should not be afraid of greater affluence; this in turn
may mean appraising our political links with Europe. We are very much on the crossroads
here in the Conservative arty; we have to consider what our relationship with
Europe is going to be politically because if we do decide to join the Common Market we
shall find a move towards political integration and this may have very radical implications
for the Parliament af this country. If the Common Market =es towards political
integration the Council of Hinisters will have to be replaced by the European Parliament
which presumably will have delegated to it certain decisions which would normally be
taken in the countries concerned.
D.3.-.
WHAT SORT OF ECOHC= Hr. William Clark, m,p,
The first answer to the Question; what kind of economy do we want, is of course
an easy one, heall want it to be prosperous. Unfortunately it is also too often
true that we wart someone else to pay for it.
The Socialists are getting away too easily with the charge that the Conservative
Government left the econcey in a eess last year. To begin with we must point to the
record over the whole previous 13 years. During that time taxation feal; under the
previous Socialist Government it rose, and now we are seeing it begin to rise once more.
Prices rose very much more slowly than under Socialism; now we are beginning to see
them rise more rapidly once again, host important to remember, the balance of payments
over the whole period was in surplus.
At the beginning af last year Mr, Maudling pointed out that there was likely to be
a balance of payment deficit for that year because of stock-building and an exceptional
outflow of investment abroad. He also pointed out that we had adecuate resources to
cover the deficit. Clearly, when the Socialists took office there was no crisis. The
Pound was stable until after the General Election.
After the Labour Government was in power, however, a Sterling crisis very rapidly
developed. This was alecst entirely their aan fault. In order to justify the manner
in which the 153 surchargehad been introduced, they painted as black a picture of the
economy abroad as they could, with the result that overseas holders of Sterling began to
fear that a devaluation was on the way. In aq.dation, Mr. Callaghan introduced a Budget
which put 6d. on petrol (and hence en costs),/ich envisaged taking money from people
who might have saved and disbursing it to people who would almost certainly consume.
He thought it was a deflationary Budget; chroad it was seen as an inflationary one.
Another criticism of us is that we left the reserves at a lower level than in 1951.
But we did not borrow from the United States, as did the previous Socialist Government.
George Brown has been on television and has said that the 15 surchanije provided
no excuse for putting up prices. This merely shows how little he understood its
purpose. The object of the 15/6 was to put up the prices of imports so that people would
be deterred from buying them;
If inflation is to be avoided it will be necessary for Kr. Callaghan in the Budget
to increase taxation by about &C200 million. He should do this by using the regulator
to the extent of about 5, and taxing other consumption. Thds would be a quick way of
reducing the pressure of consumer demand. The Archilles heel of the Government, however,
is the Labour Left wing. This has already become militant over Pensions and Over -Viet
TnTam. In the Bnriget Callaghan will have to do something against "Capitalism" in order
to pacify them.
Already we have two axamples of siich measures in view. The first is the Corporation
Tax. If this were fixed at about 35 , it is said, the same revenue would be produced
as under the present system of Profits Tax and Income Tax. Unfortunately, it is by no
eeans certain whether 35/6 will be the eventual rate. The tax has one anomaly above all
others, which is that it is likely to eenalise companies which remit divddends from
abroad. This could have a serious effect upon our invisible exports. Corporation Tax
also has the effect of anceuraa.ing the retentien rather than the distributien of profits,
which uan only lead to Increasing inflexibility in the capitni market, and consequently
investment.

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The shareholders in companies which retain rather than distribute profits: of
course, receive their dividends in the form of increased share prices. For this
reason there is also to be a Capital Gains Tax, probably- at a fairly stringent rate.
The complexities and anomalies involved in this, however, are vast. It is not clear,
for example, whether there is to be tax on the gains made by institutional investors
like pension funds, unit trusts, etc. Conservatives should probably accept the idea
of some form of Capital Gains Tax, but make a pledge to reverse Labour's measures where
these are clearly unjust.
Our long-term objective must be to increase the efficiency of Capitalism In
this country. Perhaps we did not visibly do enough in the years before election to
increase share-ownernhip, and competition. 1::e must set out to persuade the electorate
that the anlyway the British economy can be made internationally competitive, and
hence the only wtly in which ccmfidence in the Pound can be assured,is the return of a
Conservative Government.
G.B.P.
AUGUST 1961 TO OCTOD1R 1964 The Rt. Han. J. Enoch Powell, e.B.E.,
In July 1961 occurred one of our periodic Sterling crises• It was the
revaluation of the German Mark rather than anything directly attributable to Sterling
which precipitated the outflow of gold and reserves from this country. However, as
on previous occasions, this vas widely believed, not only by the Gevernment, to be a
symptom only possible because of a genuine doubt about the long-term internal value of
our currency. The strong measures which followed the preceding similar crisis of
1557 had been succeeded in 1958 and 1959 by a period of heavy Government spending, whice
had contributed to the boom of those years, and to the overheating of 1960. Hence the
1961 crisis was diagnosed both here and abroad as the sign of a much deeper malaise.
The continuing phenomenon of inflation had of course been reflected in the fact
that total money incoees rose considerably faster than the output af goods and services,
than real income. In addition, in recent years the rise in our real income had been
compared unfavourably with the rise in real income in continental economies. Thus
the problems which presented theaselves to the Government in July 1961 were first of
all those relating to the behaviour of money incoaes, and secondly those relating to
the behaviour of real incomes.
Yr. Selwyn Lloyd accordingly put forward the propositions that: first, unless
inflation was to continue, money incomes as a whole ought not to rise faster than real
incomes as a whole; secondly, that, unless this was tobe risked, public expenditure
ought to bear no more than a constant relationship to total national income; and
thirdly, that it would be a good thing if the national income itself were to increase
at a somewhat faster rate than had previously been the case. He went on to say that in
recent experience the national income had been rising at a rate of 2 to 2i- per cent a
year. Accordingly, ve should find ourselves in diffieulties if total money incomes,
and Government expenditure also, rose by acre than 2.7-% a year, until that underlying
rate of growth became higher.
Unfortunately no-one knew how to arrange individual moveeents of incomes in such a
way that total income moved at any particular rate. Everyane knaw that increases of
the total above 2:±70 would have inflationary consenuences; no-one knew how you could teD
whether any particular increase was inflationary er not. hr. SelwTn Lloyd accordingly
announced that he intended to seek machinery for solving this conundrum; and until
the conundrumwas solved it woull be better if money incomes did not rise at all.
This was the Pay Pause, initiated in Au,cmst 1961.
There was of course no machinery for ensuring tne -7-)ray Pause either. The
Governeent, in so far as it was paymaster, could refuse to pay its own employees any
more; though there existed in many cases arbitration procedures which had been regarded
as binding. Therefore the Government announced that it dia not intend to sUbalt to
arbitration the date of implementation of any nay incroases awarded. So far as the
rest of tho economy was concerned the Pay Pause depended upon asking employers 'not to'.
Parliament rose therefore with the Government comaitted to discovering some means
of regulating money incomes, and, in addition, to finding ways of obtaining a faster
growth rate than 27%. This WEIS the classic aistahe of announcing an intention without
having discovered whether it could in fact be carried out. But one has to pay, in the
end, for issuing this kind of promissory note. ';:hen the new session began in November
1961, no-one was any nearer to discovering what an incoaes Policy could possibly mean;
and with the continuing rise in prices there wae groeing impatience aaong those whose
incomes had been 'paused'. The Goverme-ent was increasingly emlarrassed by the task of
moving from a Pay f7ause, in which no-one 7:as supposed to be paid any more at all, to the
theoretical situation in which individual chanees would be harmoniously regulated so that
they all added up together to a 2-2 increase a year. .Joreover,when people had been
acsustcaed to getting increases like 2e, looked very small indeed.

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By the beginning of 1962 it was clear that something had to give way; and so in
February was published a ';Thdte Paper entitled 'Incomes, the Next Step'. This said that
we had had the Pay Pause (which was Quite true!) and thnt it would be all right now if
incomes started to rise over-all at 2. Individually, of course, there would be
exceptions: for example, where firms needed to attract more labouz, or in the case of
those groups with whom a lot of voters had a lot of syerpathy. But ndbody yet had any
idea what this was the next step to - what exactly one was to do when faced with particulae
cases, each claiming to be "an exception". In the Budget that April a tax on Capital
Gains was introduced in order to facilitate the acceptance by the trade unions af an
Incomes Policy. ByMET, so many pay claims had been satisfied at a rate far in advance
af 2%, that it became clear the Government had ended up in a 'cul de sac'•
Accordingly, it was decided to set up a body which could carry on the search for an
Incomes Policy inderendent of the Government. At the saee time, as a diversionary
exercise, attention was turned towards such pclicies as planned revival of the North-East,
contracts of employment, wage-related benefits and severance payments. On the 13th July
1962.seven cabinet ministers were dismissed so that the diversion in policy should be
marked by a change of personnel.
By the winter of 1962/63 the National Economic Development Council was 'examining the
implications of a growth-rate of 4; per annum, and the National Incomes Commission was
set up. Before the 1963 Budget the N•E.D•C• had produced a model of the British economy
growing at 4. Inevitably 4 became the "target rate cf growth", and the Chancellor was
asked to announce that 3:22-'; rather than 2 would he a reasonable "guiding light" for
increases in money incomes. But no-one could explain what relationshdp existed between
the model set up by the N,E.D,C, and the reality.
Meanwhile a nuMber of major political events had taken place: the Nassau agreemont
the rebuff which ended this country's hopes of joining the Common Larket and, in June/JulytheTrofuno
Affair". Then came the events of October, 1963, and the consequences of
"the usual processes of consultation". In Noveeber the Government published its
projections for public expenditure over the following five years. In 1961 it had been
determined that this shoeld not increase by more than 2i% a year until it was certain
that national income would be rising faster. But by Noveeber 1963 we had accepted a
commitment to a 4 growth rate, which provided the besis for the estimates of Government
expenditure - tnough it was quite uncertain whether this rate would in fact be achieved.
There was no escape from the consequences af having set up the N.E.D.C.; there was no
means of stepping off the travelling band - at least not voluntarily!
And so, by 1964, the Conservative Party found itself committed to the following
major items of policy; first, an incomes policy, whieh everyone was conmitted to finding
but no one knew how to discover; the planning of the North-East, and indeed of every
region as a consequence; the planning of the economy as a whole in order to produce, as
a minimum, a specific rate of growth @AA; and finally, increases in public expenditure
of over 4% per annum for at least five years ahead. It was with these comeitments that
we entered the General Election.
G.B.P.
TEE CONSETCES OF THE GETER!LL ELECTION The Rt. Hon. J. Enoch Powell, '.B.E L.P.
The most obvious, and yet a very profound conseeuence of the 1964 Ceneral Election
was that the continuing chain of responsibility which haa stretched through without a
break franNovember 1951 to October 1964 was broken. It is a consequence, and a necessary
consequence of the principle of collective Cabinet responsibility that as long as one
Government cf the same party succeeds another, nothing which has been done or said during
the whole cf the lengthening period can ever explicitly be disavowed or even criticised.
Since in a period of thirteen years, there are immense changes in the very nature of the
problems which the country is facing, this continued piling-up of an ever larger roll of
baggage - the acts and the words of previous years - becomes more and more oenressive.
The process wns imeensely accelerated in the last three years before the election.
The continuity has now been broken. Of course this does nct mean that it is easy or
even possible to draw the sponge across the board and start afresh. One starts with the
responsibility still, though now dirdnished and f:Lirmore modifiable, for one's own past
stataments and positions. For those who were continuously in office it is not possible
overnight to unravel the trains of thought, to retrace the stees ito whichever cross-roads
one thinks eight have offered a different course of action. Only time, added to the loss
of office, can graduelly make it possible for the Party to find a new position.
The nation has an unforeulated, perhaps an unconscious need, which the Conservative
Party is celled upon to eeet if it can.
This kind of thing is terribly difficult to identify, still mere to define. It is
also terribly easy to exaegerate the ieeortance of the point of tine at which one haerens
to find oneself - one never goes into an election without pretesting that there never was
an election in the history of the country more fraught with the profoundest consequences!
It is also terribly easy to strike attitudes in eelitics. But in the weeks after the

- 8 -
election, when the sterling crisis was upcn us, somebody said to me: "_Are we never going
to escape from this It seems that we climb up the greasy pole, and always slip back
to where ve were. Whyhas there been this procession of crises over the years, sterling
crises, crises of the balance of payments, crises of the reserves; 1955, 1957, 1961,
1964"
There is a profound longing in our people for achievement. It is perfectly true,
and we were right in claiming, that whatever the international comparisons - and many of
them are pretty bogus - we have enjoyed in these last thirteen years a steady growth in
prosperity, widely diffused, at a faster rate than has characterised any previous recorded
sinilnr period of our economic history. This is all true; but it does not alter the
aching feeling that other nations know where they are going, and that somehow ve do not.
It is true that when we are called the Sick 1.1nn of Europe, you can disprove it by chapter
and verse. But we ask ourselves: how did anybody get around to calling us The Sick Han
of Europe When with all our pride and all our refusal to take so many things too
seriously, we look at the fantastic surge forward of Europe, Japan, and at the way in whicn
the U]Bited States, for all its faults, has achieved a combination of stabilitr of currenc;
with/rate of growth which no other country can rival, we do all feel that something has
escaped U.S.
This country has passed through a period of immense transition, nearly all of its
practically realised in the last thirteen years. If anyone in 1951 had said that in 1964
there would be scarcely any dependent British territories anywhere on the face of the
earth, we should have wondered what sort of Communist he was. But so it has been. As
a historical fact much cf what wo believe about the glories of the British Emoire is a
subseeuent construction,existing more in the imaginativa than in the reality. The British.
Empire, in more senses than one, was 'Brummagem'. The historical reality was different
from the construction with which we grew up. But we did grow up with it. We were all
born into a world where we had been taught to believe that Britain had an Empire on which
the sun never set. Today the visible, undeniable reqlity is utterly different.
One can never truly resolve in the span of a human lifetime that kind of a revolution
without the marks being left af the struggles.
Something which we believed to be our coin-Jon achievement, something which filled the
need of people to believe that they had a life and significance extending beyond their own
immediate place and time, has gone. In the period which now succeeds October 1964, the
Conservative Party has to discover whether it can furnish to this country the structure of
thought, the structure of policy,.which can fill that void.
If we are to do that we have to set out from an unsparing analysis of our own
position. We have to be ruthlessly straight with ourselves. Oppositions do not have a
great deal of impact on what the Government does from day to doy. But a Party in
Opposition does decisively influence what it can do if and when that Party next forms a
Government.
What sort of achievement in the modern world is there.for Britain It must consist
of the exploration and exploitation of what we have here in these islands, and wthat we can
make the rest of the world want from us in terms of goods, services and ideas. The rest
of that world is engaged on the same business. There is a constant comparison and
competition going on between the nations. This is one of the great forces in the world;
the economists call it the international division of labour.
On what principles are we to set about discovering what it is that wo particularly
can offer this world Again it must be those same principles of comparison and
conuetition, the constant discarding of whatever fails to meet the etest of comparison,
the reinforcement of excellence, the removal of the inferior. We have to decide whether
we do this better if it is the State which directs this effort, or if, to use a metaphor,
we "do it ourselves" (or, to get nearer to that French Oxpression, if we let people do
it themselves: whether we let people invest where they thiEk there will be the biggest
profit, work where they think they will be given the highest remuneration, spend on what
they_think will give them the most satisfaction, and allow this to work itself through
in the belief - and it is only a belief, only a theory, in the same way that Socialism is
only a theory - that for us this is the way most likely to achieve success.
If this be so, then we have to ensure that the actions and policies of Government are
consistent with that belief; that they aim at giving people as a framework for this
process, for the taking of these decisions, stable terms of reference. We have to decide
whether the function of the State is to be restricted te areas of the national life where
the process of co[soarison and competition cannot operate, or whether it is to extend
potentially or actually over the whole.
Until we have settled those questimns for marselves, we cannot make a policy. Until
we have a policy, we have nothing to say to our countryment - we hove no bread to give then,
You can't do this suddenly. You need the healing and oblitorating effects of tire
and the rising object-lesson provided by the worlmings of the other system. Thus if we
fight an election this year, it is quite clear on what basis we fight. We say: 'we told

— 9 -
you what the consequences would be, and there they are'. We don't need a policy to do
that. But this is triviality comared to what we rust provide wnen we have the time.
By the end of 1964 we were saving and doing things which were inconsistent with any
intelligible view, Socialist or non-Socialist, of the future destiny of this country.
Our first task, therefore, is to recognise this among ourselves.
If a nation is to have faith in what it is doing it must sense that this can be
argued cut and stand up to the most rigorous analysis. A nation must have a good
conscience to its policies, Surely if the use of price, of profit, of market forces and
competition are the processes by which a free nation discovers what it alone can give
the world, we cannot use these processes effectively if we do so with half our minds
looking the other way, in fear that someone will point the finger of scorn at us•
Difficult things will have to be dcne if the habits of this nation - in so far as
legislation can chanEe habits - are to become truly and fearlessly competitive. You
cannot do these difficult things unless you bring to them a conviction, not only that they
do not have to be apologised for, but that you can commend them and all their implications
confidently to your countrymen.
G.B.P.
TORY NRTY ORG,NISL.TION Sir Michael Fraser, C. .nn,.
Our Party has had an almost continuous existence for some three hundred years, and
this explains the major difference in origins and development between it and the Labour
Party. The Conservative Party existed as a Party in Parliament long before the extension
of the suffrage made it necessary to have any organisation in the country; on the.other
hand the Labour Party, being of much more recent origin, developed as an organisation in
the country which later achieved Parliamentary representation. Consequently, whereas our
organisation is biassed in the direction of assuring that we are going to be in office,.the
Labour Party tends to be organised on the basis that it is more likely to be in opposition.
The Reform Act of 1832 first made organisation outside Parliament necessary, since it
required the registration of electors on an electoral roll by a certain date annually, and
this gave scope for ingenuity in ensuring that supporters were inscribed and opponents
excluded. The Conservative Registration societies which Sir Robert Peel encouraged were
the first Conservative constituency associations often employing solicitors as agents;
there was the beginnings of a central organisation around the Chief alio and Peel's
organiser, F. R. Bonham, while the Carlton Club, founded in 1831, provided an informal
headquarters. This concerted organisation broke down the huge Whig majority of 1832 in
three successive elections and put the Tories into power in 18a1 until the split over the
Corn Laws in 1846, which shattered the organisation as it then existed.
184.6was the first of the big defeats in =dein party history. Restoring the unity
of the Parliamentary party was naturally the first priority, but after the fall if the
Derby-Disraeli government in 1852 attention was again turned to organisation outside
Parliament. Disraeli's lawyer Philip Rose was Principal Agent, followed by Markno2o
Spofforth (1859-70) who rebuilt the system of local agents. However, the election cf 1868
was not won even though Disraeli had enfranchised the townworking-man, and there was a need
for a more professional organisation. Anew system was therefore started in 1870 under
J. E. Gorst, who was-told by Disraeli that every constituency should have a candidate and
an association to support him in advance of the next General Election. 7reviously
candidates had been supplied to constituencies; these now began to choose their own, with
the help cf what was now recognisable as Central Office. Working ren's associations were
encouraged, local associations strengthened and bribery abandoned. The snap election of
1874 found the Party perfectly prepared. After this brilliant victory the ora,anisation lost
its edge, until the defeat of 1880 brought further reorganisation, which took a not
uncomplicated form. Lord Randolph Churchill, in pursuit of Tory Democracy, tried to convert
the National Union,which had been formed In 1867, into an instrument for controllinc! the
Party. His success would have meant a weaker position for the leader and policy determined
by the conference, but he was reconciled with Salisbury in 1885. A golden age of Party
organisation followed under Captain Middleton and much started then which continues today.
Hn nas Principal Agent from,1885-1903, and secretary of the National Union, and tied
together the Parliamentary Party, the mass organisation and Central Office.
Organisations are liable to deteriorate and the defeat of 1906 - the second great
defeat - showed up various weaknesses and was followed by reorganisation. Tao results were
enlargement of the Central Council and the foundation of the Junior Imperial League. The
tao defeats of 1910 resulted in the decision to have a nhairman of the -Party organisation,
and that of 1929 in the foundation ae the Research Denartment.
The third great defeat in 1945 was mainly caused by a feeling that we were as a Party
out of touch with the mood of the nation and intent on a return to pre-war conditions.
What had to be done in the years of opposition was to get back into the rain stream of the
nation's political thi.ndng and not only to get up-to-date but to be seen to be up-to-date.
In the process of modernisation many important cnanges were made, many resulting from the
report of the :,axwell-Fife Comnittee published in 1548, and in particular:

- 10 -
The foundation of the Young Conservative Lbvement.
The decision to liElt the contributions that a candidate could be asked
to make to his constituency organisation.
The setting up of a separate advisory cosmittee on policy representative of both
Houses and the National Union with ir Butler as chairman.
.
The setting up of the C.P.C., the two way movement of ideas, and of Swinton.
The institution of the constituency oucta system of finance•
The building of an effective trade union organisation.
The closer integration of the women's organisation.
The amalgamation in 1948 of the Research Department, the Parliamentary Secretariak
set up in 1945 and the Information Department of Central Office.
The organisation which exists today consists of those elements. First there is
the ParUamentary Party which consists of all those -1-10 take the whip and has a weekly
meeting in the '1922' committee where all matters of general business are transacted.
There are 'tactical' committees which meet weekly or fortnightly in the upstairs committee
rooms. The important thing is that their membership has always been flexible; while ti-le
officers form a regular nucleus all reMbers have the right to attend any session of any
committee so that they can go where the interest lies.
In Opposition, the front bench spokesmen, members of the Leaders' Consultative
Committee, are the chairmen. In Government the committees are entirely run by backbenchers
and ministers only attend by invitation.
The basic unit cf the Party in the country, the constituency, has complete control
over the management of its own affairs which are run by a representative executive council
and it employs a professional organiser. Constituencies are voluntarily federated into
the provincial areas of which there are 11 fcr England and VTales, and which are useful in
conveying views to the centre, in matters of finance and mutual aid. Each constituency
organisation is affiliated to the National Union and is represented on the central council
and at the Annual Conference. The National Union is administered by an Executive
Committee, composed of representatives cf all area councils and of the leaders and Chief
officials; a smaller General purposes committee transacts day-to-day business on behalf
of the Executive. A series of advisory committees renort to the Executive.
The Central Office, founded in 1867, was originally under the control of the Chief
Whip, but since 1911 has been run by the Chairman of the Party Organisation appointed by
the Leader of the Party. The job of Central Office,together with its offices in the
areas, is to guide, co-ordinate and encourage the work of the Party, to advise and
assist constituencies and area councils and provide such services as can best be organised
centrally. In addition to its specific departments there is the Conservative Political
Centre in charge of political education, the Overseas Bureau, a voluntary body - the
Conservative Commonwealth Council, and the physically separate Research Department• This
had its own chairman, responsible directly to the Leader of the Party, from its foundation
by Neville Chamberlain until the last election. Its functions are to do long-term
research and help in the formulation of policy, to provide official secretaries for the
Party's Committees in the House, as well as briefs for debates, to provide political
information to the Party as a whole, and to assist departments of Central Office with
factual information. It is divided into five sections, dealing with economic affairs,
home affairs, foreign affairs, the Commnnwealth and defence.
In turning to consider action now and in the future it is necessary to realise that
we did not suffer a great defeat in October. Though our Party organisation is good in
relation to organisations in other countries, there is always bound to be room for
improvement in organisations of this kind• The Labour Party organisation has been
getting better since their defeat of 1955, so that we must imnrove in order to keep ahead.
But while we do not need another Woolton or Butler as after 1945, because we have lived in
an electioneering atmosphere over the last years we have not until now been able to
tackle various long-term problems. W'erk started on these immediately after the
election; the list of candidates is being revised; thought is being given to Laking
Party finance more broad based, reducing the gar between the 2i-3 million subscribers
and the 11 million voters and getting at other unexploited sources. The Party ought to
think about getting a capital fund, doubling its income and making the sources of this
income less 7.ulnerable; electioneering is going to become increasingly exnensive. A
committee is looking at the status, recruitment, remuneration and training of agents and
this is particularly important in view of the difference a good agent can make in a
marginal situation. There is a need for the professionals in politics to be much more
fully aware politically now that with television etc. political ideas, albeit muddled,
penetrate much further. Attention is being paid to publicatims, to ensure they are
what is wanted and get where they aro needed. The C.P.C. is basing its efforts for
political education on being an independent publishing house, making impact at the level
of national thought and as the channel within the Party for the tgo-way movement of ideas,

The Youn Conservatives are working to build ur their meMbership and broaden their appeal
across the classes and at both ends of the age group; though the movement has been a
great success it is still too exclusive. .As far as policy is concerned there are to be
20 groups; the type of group is not new but the scale of the anterprise is and whereas
in their past there has been a maximum of six there are 14. operatingalready. There are
8-12 members on each, generally half from the Parliamentary Party; a new feature is that
their work is being backed up by research 'being done by outside bodies and this is
Particularly important for international comparisons. With the prospect of a snap
election there is emphasis on immediate problems and there is a new manifesto etc. in
readiness.
A final word about aims. "There is much to regret in the modern world; what is
not dangerously old appears to be dangerously new", and we have to understand both these
feelings without pandering to either. Whatever our personal leanings we have to deal
with realities, and at this time it is important for Britain to continue the work begun
in the last decade of carving out a new role in the world. We have to understand the
nature of the evolutionary changes going on; yet the Labout Party have all the wrong
attitudes. While some are revolutionaries,the majority wish only to preserve the• status
quo. In a period of rapid change a medern and progressive Conservative Government is
wanted; it alone can make use of the opportunities while still having regard for the
individual, and it alone will preserve the best of the old in the scraMble for the new•
To get the present Government out we need to be ready, with improved organisation and
relevant policies, and this can be achieved only through the co-operation of the centre
and the Party throughout the country.
THE TORY RIRTY'S ROLE L THE POLITICS OF THE FUTURE Mr. John W. W. Pe ton M.P.
History, continuity and growth are at the basis of the Tory Party. John Stuart
n11 described it as the stupid party, and there is a certain measure of safety in not
being too clever; the present Government is much too clever.
'Go, teach eternal wiadom how to rule
Then drop into thyself and be a foolt
The Tory Party must continue to avoid the dogmatic approach shown by Socialists. One of
the characteristics of the Conservative Party is a willingness to accept facts coupled
with a lazy but resolute process of hoping for the best, and the ability to digest a
Disraeli or a Churchill. In a changing world, the less we are the intellectual masters
the greater will be the need for a coMbination of pragmatism and history. We have no
political dogma; attitudes have always been more important than policies, which can
become a considerable embarrassment as they becoee out of date.
Looking back over the years of Conservative Cevernment it would seem that we were too
timid in our approach, to Socialist controls, to nationalisation and to rent control.
We were surprised by our successes, even though their root was deep in Conservative
thinking, and were not encouraged to go on and tackle restriction elsewhere• If the
Conservative Party has a role to play in the future it will not be as a pale sMdow of
the Socialists.
How far can we expect these characteristics to be important in the future
Attitudes remain more important than policies. We have to make things work; this does
not mean that we have to worship the idol of Planning which the Socialists have set up.
We do not have to have loa,confidence in Noddy and its outpourings simply because it was
set up to be a Conservative Government. Many industrialists are unimpressed by it, by
what it asks and the premises behind its questions. The importance of arranging our
affairs properly brings us on to the machinery of government, which is still recognisably
of the last century. For a start we have a Cabinet which is much too large; commonsense
should not allow any comnittee, such as a Cabinet, which has to take decisions, to be
larger than a dozen. Not only has Wilson kept his Cabinet the same size as the last
administration,he has increased the nuMber of departments, and this only increases the
difficulty of any gcvernment in keeping in touch with what its various parts are doing.
Not unly is there a Ministry of Technology but a Ministry of Land and Natural Resouroes,
with powers to do nothing. Turning to Parliament, this is not a remote body, it is
an almost uncanny reflection of the Britiah people. Very little has been done about
Parliar:entary procedures for a long time. 'Much is entrenched in that procedure for very
good reasons, and particularly to protect the right of the minority to make its voicie
heard. But Parliament today is far mere formidable when it has gone through some
Processes of informing itself; the reports of the Select Committees are taken notice of
in the way that a good deal of its discussions are not. ';:e should remenber that it is not
designed to act as a Board of Directors, it is a sounding board of opinion and an
alternative to civil war. Decisions are ierertant, and hard to get, and we should
welcome those whe are prepared to make them rather than always playing safe. We must
always be ready to distinguish between useful institutions and sacred cows; there are
few of our institutions which have not been under fire since the war, and yet very iliac
has been done to reinforce theraand it is too easy te take them for grantJd.

-12-
"It is hard for those who live near a bank to fear for the security of their money
Equally we should be wary of the expert and of the pressure group, since we have suffered
at the hands of both.
We should try to make sense of progress. How many people believe that their work
is of any consequence The chill plans of buxeaucratic socialism will not do anything
to help. What is needed is greater thought about the aims behind education and an
awareness that 'human history is a race between education and population' (H. G. Wells)
Education should'aim to raise the tastes and aMbitions of everyone and for a start people
need to realise that politics are the concern of all. They must be made to see that they
cannot contract out of politics; it is extraordinary that many people who have a large
stake in the country can take so little interest.
We must stand ngainst excessive concentrations of power. There is first of all the
danger of inefficiency; secondly, in the case of the Governmant, the fact that it always
aims for the best makes concentration of power in its hands the more dangerous. We have
not given sufficient attention to monopolies and trade unions, and the recent reversal
of Rookes v. Barnard has tilted the balance of power back against the individual.
Instead we should stand for the encouragement and reward of enterprise, and we should
remember in this context that excessive taxation is no cure for greed. We must seek to
preserve as much individual liberty as possible, against whoever threatens it. We must
realise what Aldous Huxley pointed out, that 'organisation men and some scientists are
anxious to reduce the maddening diversity of men to some kind of manageable uniformity'.
If we are not careful we will find that we have lost freedom almost without noticing it.
We have, therefore, to be ready to say unfashionable things and risk unpopularity and
recognise that electoral bidding is not the best basis for politics.

3peech by the 2t Hon.J.Enoch one1 , LP
at the 2,.=unl (.3-eneol Leetin-.! of the Beaccsf4,:o:id 3ranch
of the .3ockin:fhamshire Gonseria five :,ssn.
Council CarrIbers, 3eacopsfield, 8,3L p.m.14-7-idey 19 -...qrch,
1955.
!
There is oree1ent suberstjtion that te:e ritioh eccnomy
is plasued by .---,trikes. T.17is su:erstitLon is
3ritain it nowilhere near u.le uop of the internutionel
table of dvs lost by strikes in broportibn to size of 1=E-,bour
fnrce. Arlonz, ths '.rery top nations in t is ieeoue table ho,ie
been, quite steadily for a nunber of ,le,91.'s -oast, frle United
3tates and ,T.:3pan; , the rignest neti,Jn on earth,
unrivalled record for combined. crsi. uh arid stability ,
andithe fastet ronin industrial nati..")n in te on v:hose
dsz:l±n oci-j evements in -oroduction dro,1 ministers e.lTd indutrialists
to Cokyo like moths to oone die , to try to find nut
it is done.
In the fsce of facts like t'ese one is Un net te:::7-tbd 'uo
)pel.
enquire ether, ->erh_ab 3, our troule -445,T thot h,o,:e too
str'kes in ritain rather t'yen -Jpo many. I 7rnmis;
the peradoT too far; but it I r o o im exa:rlin7;tion.
2he econom4c co nseouences ofe strike te does
;much fro ,rce serious t ri t .ose of e doss.
"T‘a-3-_.her the one; nor the oter con ce :accarasly fr±,,.sured.
the k-ne "cse indeed .e count the number of I3
tae. other (...Hse t°er is netbir suscaptible to otetiST3i.e31
t _ at cll. Bat strik.e c:Of o oo_lnen
bet',,oeri

employers and unil)ns at the eLbense of the public may - I
do not say necessarily or aL.:ays does, tut may - cause
ore misuse of economic resources than a strikei#fought out
over -.Teeks.
.
One may susbect, t)Ugh it can!,rrree be pro red,
that re W/J)uld have lost, no t rai ue , if Mamm-finlipowitam!, t.here
1-lod been no steel sttik.e in ....3routh les la.:37- year.
1"rlose no dc7lore the T._1770Sed are ía larice of strikes in
Brtain often also - especially I think, the,/ are Con.:,=rv-s
2ivac - Tproceed to do olore -_-ilDryv. .E2 are cal led "un-
„- • • •
official strikes”. For 7ood
scribed as "7;ildcat strikes". I -;onder c invented thi,,t adjectile
for them': it m.i71-1; hyle been a journalist; for iJd—
,---
ca$t"is a 7ood flamboyant v:ord. I r--thar line ho,.'ever to
think it f140.4.iy ha v e be en a trade union •.fficial, for '',Nildcat"
is also a splendid smear norJ. Jat decent, re'a:sonao le person
co'ild possioly hale the least sympa ith anythinj c.a
.
e..Ty.3.ilitst it str-.3i7hta:,,ey. int as ri.uuly a
stri..e supcorted by national trade uninn is to hale
r,,lorse economic consenuences tari stri'Ke rot Jo ..,..pported, if
only because te firah is bac'K ed by. a ireater po...er of coi,-.3ination
tiTan the second.
Th a ord "offic ial" is itself crejujic
It cerries te plica tic f cur t1in cdblicly 91
he a nin:: te arr,i of n9 ti nal a pp ro . d(::. no t
e ,Dn'tents of en velo Pe c. ich cn out t

3
the !.00d citizen feels himself duti-bound to heed them.
But the difference bet,!Jeen an "official" strile,:e and an
unofficial"strike is essentially rrivate diffarE ce, s=ethin
relates to the internal 9-f'''9ir" of
on. 'feu can see this 7,1en 9 strike is , a s thei ,
off4 ci al". The econo: ic conseose'net.ts fes. me and eieryone
,..1se are not thereby altered, certainly not for the better.
..17he -.,;orst sriue f all t'ne officiel st:rike
not r 1 e.
.'Cfficial" is fic;" re rr,ane the onl:i -;-ord used in the field
•
of industrial relPtions in 9 ",2:9.,;- cr,:atea Prejudice end
fostrif misund :"-i.no:ther of these is "eeace". .;hen
38",/ over to ;o:ursalf ase 1ke 'industrial it
ricatez does it r.cf-_
'71r! ran he called "pe'
ha a st,r-t teat t a -,^e et of riry he
1-7a That Theac-,'",- ttere is"co-operqtion'.
c.n-o-herative sort of cha7,, 3nd indeed it i3
7E7 hfl, felfao-n,:,
t1-7,3 n2.1,3 builet4ns e-o7aounce -_ -.
•- ,'
or -te;
:Pour or tat 'Ishe.3 ef 7,-ace" are tie in;17
-T
fan d„. ,:.,7)11t."..,.lie tr. alLu r
';hen,ead"no of .Loinyers

4
37-7reeinz to "co-operate"f.n raisilirr rrodactjvit orat rot
we tn to ourselves,"dhat excellent people these Irluqt ba
9
Butco-opera.tion 9re ,,,Jordscconceal
very !..Inthisiraole things indeed. Peace in era aerniarhets is
not 3 sloan aLich no iii a t;tract toe ho:,seife; on t`-.e con 1.2321
she bs.efers to hear of 7-. nrrioe 7:;ar•', which nften mean:: •.,aha t
scnone'o little racket h,as bro",7on do= ,7-3t last arLd e are LLoinz
to get frle benefit of ccmpetiti ie prices. 14'en ere -::orried
because ttere is no "co-e.)eration" beteen the seops
Jtreet ,dnd their custo_ ers for t.:-e urnasa of fzlirtfing
retail trading. On the contrary, ne :3r miL;hty anxious that
our alternative sc=ces of not be "co-c-')eratin
and -in:e su li be alarmed if ne he 9 rd the t a naouo of theo: acre
in chouts nith a 07re:.;.p of their a,z.c-Jliers.
Coytination to fix the price of ai tide or a ber7 ce
- cr, , for thiit nisoter, 1074er - than te price fL.t:.nan
co:: and in o7en c,,Lapetition is sons ich a are .3-7,reed to
:o try and ')relent as far u z)ossiale, aco ara e .are
conrinced t:.-2at the re:2'J, lts cf unc a coo tina tlon are to -;e Lee
all-oce-se off than co 'aid :otheri.se be.
There is no thin:,7 :special 0: beris :Liar ha Lhis :eseec nbout
the price of Ia anon - a 2,:.;ter lhfuha,aae. ter ., t, a.,
be .177.,H27td btand for bkill
or pro,:orti on th:-nt. aru an. rite ef fect

•
5
ndtion to fix tte nrice of 1 et,..-,L1r i: e7-3rtics.lar
mcntcrestrini...rf, tnogercHci oe
P°more
c r sccept le - j CeC tive
=•
if it ns nyti - is the seme tl-e effect of L„ny
other restrictive :prctice: it ri- s e;er:eody "Jorse off Ln
elent,o911y t'oce o beneit in the 3 L,
run. muet be fe7; :c-b o eon to Do e:Lf.of
en economy is L.de =re efficitnt
nrice of the fe.c tnrs ctedectlon '.ijT en 0: 113-,'er
ht"; cm.--)Ation. ho r zty
thanselree, tne C otE.;
repodi9e!. snellei: ent, c...ric.:Ltly, in it: PPnlicat.ion
17,:: 14 lstoor. the contrsr;, ehe bre.=..the thr---3teninze
nDi siee

•
:ihatsoever. fut ira=testwee- collsoti/e 0e;r:.;ainini2: does succeed
in tistorting cos ts , it rrAst rniarrp.:,n,,=,' the o`osto cis s
oarimoro
rement in thP stsndard of ion
„
of tl-o • 3ritLsh .
"
,
ker; 'and the :I-lore e:fecti-le it is,
e 2he iritish
industrial h;ofrer -:;o.'"'-.31oner --wiurs for l es s real
h!olEas thesi his coanter,mart in ',lest , and t',Iat •Yj..11 soon
true , if it is not e.lready, , of 'his counter-nrts in a nurnber
of' otber
-.L--;uro,Deen countries. 2'lis is not Ceceu,3e e 3ritish
trade unions iire not stro nL1.h, 'my more thin is is because
the munocolies -and restrictive cractices -:rr:on;o7 buyers
SEC
sell
,
of other goods an:a ser ric es are not ti,Eht erioa... It is beceus
industrial effort is tein.s. more effici ently used else,:here thiAn
'nere . 7:'nt gives the i
rlhole uest on of e tr,E.de un' ors.
urenc si tie
co untry
can ot ford to allon t'hesrlsei_ves the lax,urj of orecticss snd
he:oits, hisiejer encrusted -hi.fr sentiment an'l Oen,,,00 lent s ser—
sti tian , 7:hicl: -,lace obit cl,-3:3 in the of nore offi_cint use
of oar
11.) pric finind is inere,nt in the toit
is n l'eso.Jnei e i2f,' nt,entfL:ri:., 0 -2
sense of t to eneocieed.
;; idea of "res 117,!;-:Lt io
,pf thrse
.n tr*le on 'Dn le i(i.ers.
t'7,1,n of
e

•
7
splendid chaps, :actin", oo fio..,bt in, the int.er,ots of th..ar
mern'.),-ars, .!:ho afte- cii e:rnioy them, oct -;' t;:-. 7e9ther
c,;)Je nnen th the natisn.-il interest , the $ont of poso,:,le r'to)
fiodel husbnds and fathers; r:hen o:e find the:n haired
off -;:ith "reshonsible" e.hojers, then ccrei , the 1.1.:;91.1caltiz)n
the cso) of rjr ctisfcoticn ts be fufl ts run[1 n:7
'; •
n.f raid I eannot t'alte this !ie cil. i
tJe " rssoonsible ifn2 hat,
9naf, to I do not . res-Donei Ole fn:r
or lo t-.±: an the ele .rnt crooli ud tteamid
Ler:.nine th err .
0-2 I rtt.73'
ls eH indicate::: tio tr: em fne •:::riricipl,=;s Li -,coford-
-. .:ftnt t-i: ti dim 'trio a a: ro--- •
For ice:el f, I no t re-:tire -tns st tone , e:e-r t
tH- contr-ihr,r, ccr ere tff
00, is .-,onJr0o nce ,
h
; tr.
for
Trij:; t -iifi:oe -
c 11. he cels, 6:i. •n , H-H
1 : ts th t effett, :itnn

:iri'-.c C tYt.t:•.-,c-_ts it-, la tc
----1
'H:
--— r• "
-.1.7
3.1-' a 11''.: _ ''
', --
t;
f:-..71';':
S:-L-•.c)2,.rts
f.' k , er e:-.. a
tc
a...._,.,_ T -- -7, 2-' v ,±Z...-.., ,:-
st •nci, ! iv; Ls*...____, .• s...-
trsie-orro- En'7.1 -1
;•es ts on
-~-_-••:•: , isn ii
anion
1-.••
Le-nos:aro •ttn ereSt, On S're to
tra
Ss
c.s7.„ c.2.f cfteiftiarsbe-7,s
marnbe-23
7..o,11-_1
';i2C):1-,Tdirect', cn r,
erisrer-c;-:
utiC 3,-incsi0n to collccsiiec
itself, .
,
oisSI
e
etetitI:-.,
_
;;.' arsere:oc
also.-i/o
•
r_-
-0+9-
tiC91 scjecticn,s. If anion: tc contre_cs 73 d'E:,siTe2 Ti
sti-;•.11-3sef.
laCco,t-r
oti c0e d 'trice , she t•;-e; ELO
Ci r -rs- their 1Cenb10231Ciot 0.7-72.e.r C s eca -
c ss
saSj best des shs •::-ener So of 222i r•2
code. Svc de an-11.,n ce ts.e so t•••-Jt• Ee-:Lse Tc,j:Jr17,0:2,.;
on.4 -1 47,.insa Se rs, and sh,'E,
cific tre anion, coI in-)occtice e
to
f2 tiot,n e ro9Si ft) ac i , sc."-
ecGnc.T - nd of s ordiviaal
'1 r stns2 0Cs nion s I:-
•

•
9
tne private combinations of e=.loyers 4--crployeeo oith
czte.A.-P
tne -c.,4A-4.14..t.4... of orsans of ,+-;--e :tate.
Considerable experience hoc Peen zaine'j in the _last ton
or fifte.,n ye rs in t nis Poontrjr. in dealins ocoof
of collective price fixins. coo surensi ly the methods to 'se
adopted dePer, d on the form -;inion te co _Leo tive actior takes.
ceses it is Practicable .ind necessary to outl,i.:v tne restrictive
arement itse:_f; in otners it is only necessery to
dorive t'Pe parties to it of t're co-,er to enforce IL by bozrcion.
ITo enforceas7e lot cen prelent persons from coriouloino to Q:ether
.D.OLI'L; the ter.ocs n blot they :re prepored to offer 02 contract
to seil their goods or th et: labour. But t'oe ir. c :-.;-Tek_ to
tre lent oh err, done,-, from proceerlin-J_! to overe:)e ,-e
or iictimise t use o s arr-i le at a different conclusion..2'.o.e
of the coiled isreerrent lint lot t'7-e csercive nfo cement
because it is _qnlikely Lh ut It out coerci sn se=s dtffnorri'cly
from_ t. use -ss ob;
conditions
cc _C_LP for I on:; he m..-i:_tUned.
I belie onoS direct."-1-, in
seek to mi -/.3 nee. 2he free.1,,:'3sction,
on tett elf of cD llective price fixir, 0: tro 1- 'onions, moon.
not unless the: a is 'in e nol ri'!-..t of nc,ii-eo,$ociJatio" is
controry r•._.11, of lot that of:L-
:ens e-Lerbi se, le' sne Se

•
10
tse
the ostiie poer to e.xe-7cise , coercion over nti7Trn
do not c ose to 'eel L;n,7 to it, 00
7,o'r;er of coercion derives orirril foot the le. - 21
privileges 7.,ihich tbde onions, 3nd trcde unions anicl'uel.j,
h'37e enjcyed for the ze5rs, priiileges
en3o1P them to in for 2,n, ; oth ,c, r
7400.LdCo.unlefu1 :n1 -:f2,'..;_ 1(.1 rosit lema gee for t-hos
suffered injur.,- _3t.; their 2L3ni.e. I 3r'L not o;oinz, to enter ton$t.ht
into th str • lge on1 cumplic3ted stor: of na.; thf.7:se
privile7es come to be conferred in first :7;i.-3.ce.
I ocen the cuestion, 7o.hich is noo: onl: sf C demic ,
..,;hethe r ot sor.:.:e paso erio(.,, of time cc erc-on ono.
tr3de unions e on t-tL-]nce Ceneficil to their mem S 0-2
the cormianity - thou.,;h t'hc-o Is a ste'3c-ij-irii resc:-...ilDle bo(77.,/
of o72inion fro:t tiTes ef.fct th•-3t
rf,r,0.
dc, -3rt t t no ono h7is ou.cceeded in
t ose corc :o po:ers e er
vs; re t orofob
t 17± c2, Com-
mission, r -
r. Ocnser,-;tive c....=!n r C
t,t f tho--::
rebt 71.2
rrr 1^ tr,
n i=
c. mem not e r in t+,.!.•!!!!!!

*
in
11
1/k
;.::..i.i...14-/R econc;inic ecnseencee .,;hen :-:;u:r, ir a t -:.,.,n
the price or I;.b oar enjc:s ,-,.:c privile.Ees ,.: icl- e re denied to
con-lbintiono, fo-t- tht; ',Dwrnose of fixin:-: otf-er prioPs, t:.:n
the r i;.:ht of free a s prociati on ';11 be 73 7.'e.ilf. t,/ '3nd n-Dt
one of -t-:-1 e :-. cet ser_o .:',3 C be: t ,2,1e.3 0ill h :lie
t,------' en L--ITio's;:2,..11 '.',:.-'en irr:.pectre ,ao 77.7-3 -:ent th...,--: 03 of ti[
2,3eo.Jrcee for t'7-:e Denefit of -311 '..- e:::' :-.,...-_-;::--,le,

•
•
3peec. by the _it to the
Ar—nuel .1.)inner of the sspoi ti on
(1...etronoliten j.outh—Eastern 3r-mtth)
-„
u;!f-J svenor -3.m.u.ondy,
But for s'-_e 22....nsport, .;c t, 19:72, th:. ,.re —d 0 e,
no iud Hralte ssothition, tee s:,;;SE; t are -;old be no :-)2 i—
v t e enterprise road haul ths 3 1 zs!..e.rson
or firm rni,ht ecto'.":1 317 CI.:ed to carri 3nn-rer r7:erson' .3
gocis for ,a1d by no-; he le seemed t' J•r‘.H .71317
S the ide. thst 'body excect
to di co 31 or ins tel a tele -.)1-..one. In ft ot moot re ople
hsze"7,.s.":_.;:_tmed t;---.7ft is so ir:poordble for an:one ta t the st-3 te
to ,do it. Fortunately —St UL rStb , for tan3tel; in
otinion of some of as —tt:is •'qiU not bs neon nre3alt,
firo'r, 9nd indivi Iasi:: are sole to m:Le profits _:trld s-:rn
li;ing by prov'idinr ser-rice ibh , no r.,he orice, t eir
customers find :2refere3leclni alternt..tIve
3ut t',e 1932 1,ct ,,n1; fre e-:7ression of. 3 b edioi,
be lief in t'-e iirtae of corotetit com-:Detiti on bet-.%eer ros
form. of tr3n 3-9or. t
sn 0 eti-A. on bet .:oer_ 3 z:,.
t-e =3.21e forff. of trt.r. s t . is tn.;
'Lion th.S isE3C, ci -,n iThe
iittsotr it reipresen'., ,-_-es its existence.
;NA r
°el-lei-Lis n o reoo -E;rou.
• '
tnd an -or,. les .
,
07
nere:ecc,.on

, ; I
trick teoph into 3 STIIT:117 th3ttil.e.:Q.aio,wria.' - imner._ .e e t ,)
.:%,,t"..il,-,A a' Ga lt /
fc-tition ,is 7,,orse thell no connetition C.,hich 1-„; not true) .
Th3y 9ttach ousive joiJes to corneetit i on , rJ cii it
"cut-thro.9.t" corrpetit' on, or "--.•:93:te-ful" curt-oetitiun, or
"unfeir" ouneoiLiofl. uiou, b t; , nut L'-a, ;el,/
sor sarT"-t t'ecnle su :ot1n tt the c iion b e e en
ros i tr'ans7nrt 3nd tr-msport is net "I.Thir"
those o use the ro.p,rde snor E._:71.0L12",h f
2hqraii; :to eelieve in coff-2-.)etiti on need tt,
2hel r s tchu, or. d cnH te
he 7, the hi est of 31 .0 osit' bori : 'Du
u• tre .f. 1.t,/ 2"--e one a, c
.;11 h`) 1116
isto in,,,,Lst that ----Co:
C.;
freeilon -"nd tur tunl •^:3
thc.--nu,sives. 21,1c e er
others' 21:-..ht,ci.--Tete , e thou ::;1-isere
te3TeU , e o E 1oic
03i- ti
,
'
e
041, ••• • ••HA,:,,
/0-
-er •Y..") t
nee-, not teinr° !,et
„

•
esserico -t1 71. 03
t c> e ‘,!-] r_t tcr Le
eff: "313', --Ell 33 t"he,-
i =.7 0 23 ft-, 2 C Off - 3 t
tkc co - 7"=`,-) e•=31-, t '7! ace:3
-T.rd e e
t1:.^0J ;ii , Cri
ie .1 I. if. -.- 1 :,.. -2 ij iht,c=
If Jou '.'") C ff. JZ-1"-- '77' 1 I 3' ' •"-=
f o - •' tc r y
t cte.-1
I
•, '
P%--'4 f, -
A p

cru-i:
• 73--r: or _C2 3G
_
c U r g • • ,2 • ;
;
j0C,77,
r
7i.TAI=4"7 '
7,..TJE41 Tr T.:T. p ..,TC.0,24C,
„J-
A."
rr e:ECT

t e i
(11er" c'r ,
t
7.;.;;; -
-
-"-It 1,7 701' r":7: :2-17, .
ha T '‘L'2
_
- T..
11 2
'1 .11:...„;" _123. •••3

etinz,
tointhe triz,ht ' iort sreo; :au
tea
:zat sort
.-..rac re or 1..-o >is --D-af6-.0
meke u it"--e tct13 7.,he of 017.7 '.'e2T'o et hcl.re
ho -"minis't.ea. E..a-f_obrtez erc t-,003
Procei 4 11 5.:toorto nbr
t.l."eSe
co.st. Of C,-)J.2-30, ideqs; bo,t
7).7e1
re ido-a13 7.°3 lien"' 93 -oobsible
the 'ri.;:hti i=orto .:n t
t
,
r4- 7:f3,7.7 -1I 7;1- time,
-111 neler be 0'o , ioti on
2eriocis toFseth,ear. t e
-end heoit3, th:te 3 , o of'
oiroir ch.;an::::e in en"- rt . or: .-1
or if.1.a7ht e of
eo.,.p,-.)-L-st..-3. :I; • I t
the c b:a.bo on; it tha one , er,,-
illu3trtion, J:abboo,e v-; -art
eners; -at preeen . int:or:ea" :-..;E:trcleaza
ee-) en fit .1re of eff
:doh r t s s fr: n T.'. fa-a r
a I
to
'er --
, '
-:

_
'ihis is ij the sroporti on of t•e niti one effort
to ssyin-2.. fur IlApsr Ls not only is ries =:t ,,different ti:feo
for -r)-,s. ssme country , Dot frOM one country to 9notner.
Honsna/otes o=. third of her effort tois ouroose,
7;e d.eJotefienderics imentistlt.2hqt, eles,
does not mefour times 33 oroepe2003
n i1
1
•
niJ o:on better Afqn
me 9ns th tY circ=tces n eech country
en: s.nrticuier ,-.;ne fix ts tilt een imiqor ts Ind
home proauction t differen t toint . TT'
7:me imp or tserf-2 'ext.) or to of C 9c1- 2 oEi on Dr ....;2e
:on uoi f irft ex 9 ctij the s
eedie ss to se:, it is nut e esti ,qn of •-'ret c on ,
c-inrot , se medte or 2ro iidedYi home. At s price eno tinch,
slmost thIon imtorted cen be mede ot ',o)me 9
replsced b, 9 ho-:,s-ms7e ,su.bstitate. itise
tbe r the 're lue f ore:27one nroducihl the e cle
substitute tl'.ome is ',ter Dr less ten the
erticie. ere h-s been 2reet
OrtatiCli LC, t:r1is country of v2iinery menuf
.-35t e f9ct thst Lo-icrts st nib nr;rtico,ler
fi zar e , iS undJ e r
sY.1.bsosin,..; ot 1J q not riht . n:Hc - hof6his
Too is no ur,:of - such ere e fer sm oro portion
bf our netiono,1 sroduct ter. uf -It of en,, e Cdom,:-on

1rke t countries: in :;estern CTermany. the •Drupor tion
ss large ein , in lrnce it is over tice s la_rEe.
7.2here are t-!:o , enc only t.,-;o , of tryin::. to ec 9 S
near as possible to the ioort iflLi eoorts t
,rorn =mt. One mathod is to sc eore Bro'rm .3nd s ci
servants (permanent or ta-nporary ) , his bi3 n-11 little T.:Teddies)
his c orrnit tees anP'. councils and the rest, to -fin-, out , and
havincr, done so , to 009x, bribe , threaten, --:bb.se, -and try to
compel de to :4 ct accordin.21y. ..2his netod resenolet noth in7 so
much cc i iponot3nus try to catch fleas. :T.ot hI sin:: the 07,:0
eeentiJ paeliictiDfls for t7-ie job, 7,-.;hich. re (uicicness and
!art
)
],,Lno7.) hereti-oe fless :rej ,tn:1 fie
not cstch thern if aid . : 27et.pre 37rion rid Cc. d3 not
311 eh cliFlnes ire - here s. throl,unut
-If -
could not catch un them if they (tlid. :Zhe only r.t)pe of
.7ettin:27 any-here s.r tT-ie tu nf,fe er rbody on the :ot
.7:11 the time, comparia,7: t Jis. e one coarse onen
to
-- 1.th every other course dipen p9sin
firmly on ,..-hat oe or2e consumer ntu. -nder this 'stem it
till nay people to b r ona orci: end t sell ciroli c•-3 r '3, 3
oosiblt tho.3a '..),..inrUes of uos nd 3erlices hca re
imports, '::nd ths rijt ex oort,4 to for Jou 'V2)n
to ru.sr..,. peuple h ,Tao eyLL,Dr-ing ,
ben:edallin7 t!PerL ci E::t on )i.th t is
intc-::rest
.

-6—
don't ha..'e to threaten, 9.bat,,,e or denirete the citi',en
r buiinz .anci selii nd;:_;•oin.,-.7 business in the
a'ay tInet makes best sense to him.
this eoint somebody is sure; to say: "V ry ell , but if you
jast leaJe imnorts 'and exports to be fixee by these marl,:et forces
s!nat 1-97)7,,ens to oar balance, of nayments%; It ....Heald to oabt or
rizht -!ith the nre-l914 Eola standara, s,17ichi reduced ,:lexiond
if imeorts rose eboie the trignt'leiel, and increased it if they
fell belo). t d ls0 ork if the .)era free to fr..:(xie up
in ;nT3 of other currencies so as to maintain
betsen the sunply end deman(f'., for pounds to 'nay oar ennerts 3,na
for other currencies to bay oar imports. ,,ut
;€ out
tod3." is a currency neFsed externally at AO.co, or
cents, and a currenc io intern9lly te ..,;-0ernment is ree
to increase, sr rermit ee increase, ara lib. .rm thenY'
Of course, tee t=itements "7,.-;2t'i true
. the
fact tleat s;e cannot bac"K 1'j14 is no re ,3 s ..t.:or triin J...)
beck to 17th century france Cr mediieval -Lurone, I en rtonriirchs
or roilL3 decided °.,:r-Ht -their outjents and c-itj-oens s'nesHd
allreo. to T.cie o, ṯo '-;J"c sell. .hmcir else
o tered, t e eifficalty economic C`7"" d
r e Itin r3 e.r," t 1 complex ec trni se as ()ear
th an: 'r as not din in i t atlt
7r7,!r'Ket o 7-)=-5rfor.:n its reolace.7.ble b
sibie anJ:er t'Ite ne.o conUitions.

-7-
2he i.-Jloe ofcurrencyoe ,neLled at a ie Tel
- hich does not corresnond tin: one ",-ar oioh another,
444 rahP sunnly and dern.--,nd for it in relati on to .-;ne sub-31]
-and lemand for the other currencies in terms of -:;htch it is
ber.p:ed. I do not proro=e to enter irto the r:uestion -of -;hether
ytk
a need currency is, or is not, desirable at ell thoult
doubt if this nuestion, -.,,fhich hes been battened ao7An under
hatches for t-„Nenty Jeers, can be kept there mach lonEer.
simply ooserve that, as this country' 3 talance of nayments on
current account has until recently been oeil"in t'-,e black",
takin one y,=-ar -41 th nother, there is no re.ason 3t r)res.ent to
--spnose that the existin:: tyrrity ot the round sterlin. is out of
line ith fundamental economic realitiies.
:e mill assume then that the iscr.a.intained at its bresent
parity. •L'het beinP: so, if dArn.:n d a t home outstrips pro bc ti on
41T so much that prices ri,=,-e faste,7. here thr_n in ouuOsriEs
th hiob e trade, the reS'j7 t ill te tht it
m more'.adv.-:ntaeous to import, less ..adcrint-,....eous to -tomrrt,
than it real _Ly is. • :market deprifed of it-- bo.-.er to
fr-f
determine the tri.ht imnorts., the. ts to T)ay
them; toadthis in trn manifests itself in "3 balance
deficit and - hen foreiraers stop sendint os ut ts it CO 10 -
d

:;`-• r-- 2, 777T
7.; c:ruT77-pTscs
9Tdo7E,
c,-,9u7srcE,G, TrTo'a;.j 97T 7T_7:7
sT as -1..T3Tc3 r7 ,To
oi su O 30333 I-•JOOT
'aEl;TTo(7:r 1-17:ToGdstT ,,00,
—,112TdE0E9 Jo
TJOJ 7-107JP UT 3:-Thja 3 1 ()= 3101 ST s7T74.7
.7,./7uTap 3TC. O1 OC
c a,;..Tr.,Jodur 17,7 :J= 3In01JJ-1T. 2 :TTC4 27-1 TO'P-TTC-1
0 0 TTī r•L n p rOT 3 0>3 rz±
„
arooj, — c3n7 JOJ ETTp:p
77'17.7;;47r, -7 77.:T 3t-97..1 JO 3-517; 311
uoToT,TTasrC 103 aT sT
313C oa :=uT:TJ aou 33J uoT;E:oTJTaErc ou oT
ao,T,T'af7,77.3J1 1--csosT,Tp sa0um0a701 a=„-,;a •
.:ToATT,TuT ITau-LasuT YToor
333 Yq.Eric"p`c, ETUC. 010J1 aoj
7177-291 T0 'IDGauGruT u;sq q., 9/7 5124 pol4a97 ,0
-ITT
'IEG sT nç
75 09t9 1100,0 .7.57rTJqvunte
,T) 03T9 00 0". - ITrpun Garaanlj r.4.0u 170(rp squa71;1d
Jo 90u6Tc, 2uTTJ9aE Jo J12C. 43 4C1xaual2TE- 7.uoo
30 , ITT- T.9PGT
a os op oa o.
10,r17, bb-t rc sflxiTTOT
uT pG;rdsTc
1.011 ST sTLiag Nlou.i. I53 OE oz. :,9-11o4 12 u3T0OP J,".) TGAGT
GouGTITJurT 03 00303 2742. I
J9AGGI.1 ( qt_l@zuaataf_. e412,7

- 3-
en incolies ..7,nd prices policy: e foredcoaned ettept to tr
to set eleryone el a to beh7,-;e in s,ich y the-, the
ai-o.lernment cen shirk it 0 respcnsibilit;, hith
If the totl lelel of 1.3:r] ,J cor:esponds -LiLn neutrel
balence of bojments ott'n-a present
parity of tterlins, then
Ind the '-i=zht' imlaorts, end
people their c-n efforts ill —
the eprorts to Pei fur the", eaahorted
ble,Led, re,Jerded Dr pdraished, :and the: Jo 30 -2,1thoat onyone
hevin: to 4/e thi.nstrLIctions. LI' the Thierrient
in coshin s.the level of demend hishea: thin
koeciraL;
it
hi:3-17. aer then thet, tLe';' nothin,-: else th3t they or anyone ben 'do
s-31e the bal.ance of 'o.-7;yTient and It'ie

.3t3ect by the iit Hon. J. Lnoch , tc th
T4ri3to1 17:orth :03t Consoriti ',.3.soci tne
H11, ;esttu2y-on-'22i^b, t .45
28t1' .0'eb2u3ry ,
-
30 no',.; kno':: S'-overnmen t ci itt expendi tor e to
intenr-ie tc ri 39 in the next fin-3nbi a] je a7" b 3 'Der cent - 02
5 nP7' bont if one iEnores, the inbebse in orit-is sihce :e
2heolernor of the 3ork of nnd tho ejer:
le3 of :To/err-tent en7o
tare , let -1.iono the, 7brotose1
:el,
is aod tin tt oc sll 3h'a/C :nli0iii lor*, 3
(-:22‘; on like tin3. ":Tot Choncellor
he -iuer: 'if the nati onsl incbfne ,A7) T:z fist 1_ intent'.
to r:foe i'xIL:-crnment 37) ent' inc„ e;erj, thin
i
before. On thp other han d, if t
nFltionod. incur,:e Uues
-,..Z7) '3 foot then so muc'r-. the 2.....-3e fu2 else. I intend
to see th--3 the' ,17t11 or-Jend
.H:30
-nend' tire -
jern:Tlent ez7'eri-Jit„Ard - is
cons trac ,i/e exr)enditu re , eu:ionUi tht, is nor e
than I ould c.26 to s.b, boot yoozrs. 2:TeferC.2e 1113C,
necessbry , rt,b'ke roof:: for
;e3_2_ th'3,..t' ol'An
e nioD ^cce. 5'3ck bre benti,- to-see --h.b t
, 1O 2rime iflit 2 3 3: riclIsensc
Ltr'd Cromec h been talin eJ_:-.)endtts ;fit's
the ,.Iifforence bet-:een 7ttie.
71d
it 3 loolic of
t' 32 te deciJe 0',3_e on -11 ech.

Let Lord Cromer confille cbser/-tions, if he must make
them st '311, to the totol.'
-.L-q the Primel,inister is -o2ons
nd ord Cromer is
ri -ht Public =and private exPeniture ure not the same Ln their
tent
financidl and ecunomic effects. fhere is s ver,
difference Peta,Jeen your expenditure and mine dri, the -zovernment's
expenditure.
If you -'!nd I intend tp spend -cut firZi e e nut
enou6h money, hsie no choire bat to .-,hliank 'patter uf i.e. 1,Tot so
the /_iovernment: if they dre short, they can either make ;Du -and me
pdy more in t,ax.ation, or else they cdn actudlly cred,te additionel
.money - C facility 7:hic nn7: those of as enjoy sh
iery
skilful dnd unscrubuleus enP.ravers. _7-,nd note: th-t jolernment3
have nut or'y the po-!Jer but t:e incentile to hach on redess.
en you -.bn I ;rii our budets, e don't ha:e to tell -any.y
else or apoluire for it in Pdrliament or ifoe Thniatatio.ns fro
outraed loters anC. Jested intoreste. A volerment does.
Politicians to increase 1-) Jio eKpenaiture is e'lei
to
refrain from increasini-T it, lt alon to reduce it, is hend and,.
ancomfo rts ole . 2flus it is th t Jo etnTen t Lhtenti
' _17etcsrried throuh, irrespectile of -
,1.str oh be e3j.1
bein„: ore-,ted f3=3ter r;-.7-!n 000ie ull senT ces
- irreo ecti:e in
other ",)ords, of -rte infltIon
riCjne-17
ne2fectl0
1'77rei 2 _colic
nditure cd,Jses

-
It me.y be soi'f, th tt I h.ave o verlooked one other
bossibility: theovernment could meet some of its
expenditure by torroinE from you Tm37.1me - ch min the
money out of our pockets, instesid of for cin,,2 it from us of
.3 •
fhis is the re3son the bud,r3..et deficiP - the
excenditure not ProPosed to be met by toxation - is no,':.3ds
described bi Chs,ncellors of the Exci-eciuer Gs their 'Tnet bp rrorAxiE
reiuirement I im so rry to*rs3 le to di so.V)01.11,-., you over this ,
but I an Croiu I must. Eo7; mach do you think. the EL Jeri-a-Lent
succee;'Jed in borro-:inE from the 7u-lic hy- the ssle of securitie s
the,, t')hole of the iid 0tOJ th e Cons cr1501
/T/J:t • • ;!., • 1:t
cffice he onsoer fHd:drscticolij j 3t-,
million or so. Even more rem s rks Ole - dnd inbtracti ie - is th.e
thiP h oene-d. .hrin the fir st hs' f of oh t period the
Eorernmentsuccee— in OorroinE substsicti;]l toms on t
re-:if from 1;31- to inciusi •Te
th e
seconf. I-Hif of the period , 136.!.-34.1 ell thi e so
revers -3nd t±e, 3o,/ernmorit :331 to :)se...co me 3 nst purc-f3ser of its
o-,/Jn securities on s .:r. 3nd sc -31e , u to so t'ce
so rro7;in.,3- o tie orecetimie ee /en -3. Dot ii sl SEen
-pattern nt 00000 lieS :,nd sus: oG sent
- t'olerc.:'!.; no ounoomoj in '.,!Ito in/ehti,3n
L.1.71.7 --072ds - co-L.re;sn'on. It -nor
:clic e/m3er_ditu0e ie
:,ropisrt's -on oe 0:0 St :rE It

0
take s1e of '3 3.":.'3110 - not thio o tpe, e ier
• -
for rictory. . rom to 13b-'7-'3' the -,Dropor ef
expenditure to natio091 o:ne f e.17 contin.i.ccus'• e,r fr. ter
ros:.a. •_c;,rain, antil by the end of 0c0 13 J-,7:32s in office it
obout 33hih F-3 it 1"-
beto• pen t0 mo:rerrent:3 ic nut, cc foier3t31; itI a one of e
effect. .2hile oobic expendituro in a-e1_ te.0)n.0
oeieLiJeiJf31.1in•1, t 0 3 Te0)O0t
and 133 therety in less •dal-.E.er uf
to :'.e,et it'nett
-4 3
f :fluff 0O3uol
borroinur. 7-2'-:u1r'ements" 'pi ot itself , .z-re,:•-•..n.TE, in
ic
t'ee
,pointin_;
Inc resed its c:1-3iLIS t._ e
borro-:; 13.7 e d-ane7er of infl'ation
2Pre lit netirt,neci01 3cryd-1-3 eoen;.iro
oe
,
jr, :
to
th zoo. end rye
2he op!. ec t4 o'F'
"ihint ti ri - hih on '.--: er„, :•-•.u.
Di the l'Ioe
Toliciele then
•
e2 "
oreda.5t:00
n t .ee 0.
n-5,ot' •fecu r••
t
•
:C)t
;t
f -ec,c e e of: .• e.n

•
,
- •
r o--,-e-f2 the next d r f cc) '1 .3oz.E.,-131-1
uddeni‘i ch-anes, onc' the no.ti3n,e1 i'JCOILO
o end of th,- dece(1e -et e coi:-.7-ound te
s ,c3st -]-.• I n 9.3 15:'•f:: e to2Lberiend el, then
e:-K2b enidita re -.;:.1.1‘.1 ine-r-eeerit in22e-:1,-P in OJnden . t
no r.3cct eniscx c-r=ito hixeifto fu t i to re on. the
Jr:suoborted essuolotion theJt his,inclooLe
2:3ster then it s zer done before; non esen„,‘ rud ont on.
2ho ,bnlysxe cc urte end 3e e inco:rb nit
olon our ;2nlic exnenditore in fne i ,fht of reolibe,',,
7_0n n:ish-fuanril:r:erit nropheoie,.
2he snenct4 on fnn tin other-:ibe ix bri,rete
'eon; on'. the ot-rIcruritoj court. 2h nirco it cDon ;ion
on,:" ()rider hon h,eo r eefil .„!
s-.9nction ohis is J-et n.e do nne r -o inn. c icumo-our.d intereo
ie hoen dise,„ibsi.„_ no tes terz u of 3C, 21c.CIT
'ter •;nnur:--:. Let us loo--ri t ixfcin innt,•
rrentionea, this „io'r:Ir's LTins i1for - inonn .2nrico3
fr; -7; e of ne ni: inn o brit . int
-
contolnued t this re Toe icon tris
f if to;in inc 01^ pok tin„z:; n b the r , one. -fluex in
1-1-----lveT1 to; ur Jet -3,no leco finn
7.'1.4
no int er:,,3'.o in th eir o u n
40-
of tocil otroct-:J,re eiaio ith t in.tne effect of ihfition
on en;tnin:: tcele, in fonl,inuf,u :Jr
j

-6-
But !Je; are 310 entitled to con-siOer 7.hat effect 3
, otiracuclly ris1n broportion of ablic e:ispenditure is
r unon the efficienny of tho econom;. It is
be;rgin:-.: the 7uestion to describe public
expeniita-,, es tcretile'
or 'const,'uctive'. Obriousi: there •hole sectors of
exreniture, such es clefenne, ich hoe:er ne3ess33 could not
co02t1v9b1y be described in
reistributiie expenditures of the -y, ieifcre
shon thdt the net benefit of the sociaL
those terms. 2hen tLare ere the
state. It has been
serlices
fsniij, hen offset e.„7,ainst p_coIes3D1J9 t
eurprisin,71y loT leiel of income - onl; aeeL in t-e c-se of
3 11..rriedcouble. .;urel; -_aentitatirely thero_e, list
-amount o_ this refs,ribu.-Lre en.
the 3erise thst it 'Joss no7, re=ult in increasin te net
nurchosimz
bc,::er of t.r.se -;hu are supoted
to ce 163 L-: enefici-
On th otlher hana, lie ;ed .-u31i7etlie1y, it im.--)Jses
bundle of cl-.oices anon ell or ne-_:cly nll, -:;31,- e3 the et,te
far-reechin; influence on the ,dttern
enterprises
2hen a --in, t'here ,:re the exoer.,:aitos dodu odolic
c.,f
ir
t_oese . dre intended to
cc prodactire; tut j 3t oecaue:e te interest anon
it u-,e.-.7.uernteed bj the stdte,O uod in hr.D
eff-lcienti," resourtes 2C oein.. 7 used 2Cfl te ';;S:there
short, nu eft -F.,ctile copetitien,
eite-2 for c..popi,„d er
/be iJ ,eoL,--:;r7_,d on

-7-
priiate account,-:(-Jald hs:e been 13id out to produce ;:reate'.
satisfaction.
T.hose of us '::ho belive
the anser is in the
'affirmative, oecoase the salin
hale been applied to
Produce a profit and the consumption oulf, .fe. corresponded
the pattern of pa:alio -i.shes, ere reinforced b;!- notic1n2 that
throui:hout the countries east of the Iron Curtain these qr,--rj teots
3re
hCflEi introduced and deieloPed ir order to improie
4
r.).n)(:“.1c4- e efficiency. it 13 one cr the supre!-bs 1ronies of our
time that the communist economies, after nadind throuj-_ oceans of
blood and ii iin for decades under brutl uocressiun, are findin:7.
thcir a)•a.y for-:ard t. the methods of• cacit-ilism at t:e precise
moment 7Jher 3ritain hesitates on the brink_ bf stanionin them.
Even on the moot indalent
licd of the n-He-ap of drit31:'3
present and brojected pdatic ennenditare, it is impossible op
er:.7.ue t'nat i- its :ro-.,)t17 in tota
3he rete
at 'nich /,:ce national income
hit):ferto been ri:=ing, she ,‘esult
be to reduce the productiie el:ficiency of this coanl...ry.
-o one can Clain tht tn cr three ncr cent off Thi s I enS -1
oald mean any iLnit-ation of 0=.1r
'.;11'to sell odr ei.purt
inlest in the forms of production
HenS brosbects fur T.:e
future, or to incre-se tee efficiency ani acCesS of the
022.
,uite the contr:.ry. jo let us O4e
this car resolie: •
te or fsi tened, so culei into tarnir_•.. aode fene -)U2
claim Let,. and common-sense la,acesit
to con.-oril and
and

-5-
:zuide our -oublic ex7penditure tYiti no loner
ur_lon this countri the recurrent menlce fp:' inflationary
crises or the fr,ore insidious 'out in te lono run r-Lore
d2nerous otror)hy of 3n incre9sin:E1y stte-r)Irlited economy.
'
°

( 3
speech bsy. the :It Hon.(T.Enoch ceii,ILZ",
to the Aylesbury 3onservativa :;omen 6 Ottee
at the 3xcoub Asseoly Hall, Aylesbury,
10.30 a.m.Tbursdsys25th rZeb. 1965.
Last October ere diiided fram victory by narracJ
line. Only t he thinnest of m3 rins decreed that the r)eriod
of 13 years contonuous Conse-rvative ad!Linistrtion under
four Prime Yinisters 7.:as not to be extended for oerhecs
AMTeral years more. Th,-; narro-.'ines t1-. at margin can be
deceptive and even dsnerJus to you and me Ai 0 are daily
ensa2;ed in the -:ork of orzanisation, of canvassin, of -Preparation
of .;11 kinds, u7on Leh a future victor; -3t the
r)olls must be based. It coJ.l,±.'. tembt us to in ter-ns
line
of recrossin: tt narro; fin the reverse direction
art takin:: from ;rnere left off ':ifter a rief,
but not historic:lly sinnificant , interruption. '21.7e IDIIrsa
"p...ettny back in to ha:3er", rhic 7;c 1i h-;:bitully use,
could easily rrisad- us in this .-•_:ntext into belierinz t'rat
,:-±ctually is a c,uestion of bJ,k.
.:A.sh ale cou..d V.:a -1 7 :ha e 3nd t inasa a
--- ITeitber id(IFilE! nor -laticras
cn a:Jar zzo back. fe ol(.11 ,bil aatant r of h,ao,s tss't to
.re.21indna he,rere Jt rLD
7:1 ri in t t;:e 7.:ne
ri er ce' t e ri ver as o n If' • .7..tilre ,
cf 9ii aba71-7-

co.T.e to 7o,....Jer ot t,77e te•-7,innin-E of thi
perio,.9. of office. 2'ne'eafter, t rj,7
se, !.2..ent ch on:2e s ond c 91-Ices, orzt":7-ten int by_lt
umbili cal al.. ord continued to fircily•
01 to thIct oc of co 1 le o te fCio
indtcd ri infoicten-3:abLe on•o•
it tieii ccoll'.:1 be. rip ‘f_e_n-.Hocrotic -2et.t:onci t-si •
jT
-.1be •Tetis t thttt- :iiuco.o•-1
one- r) t ri„: o'• n
don.. ,c,ler be
fic ti on c cc e
rte 22foot o re0ort 2 .:.sh e the
7. aria °,-rot'otort.i _o-,t.t• t-.7
.•
n
•
'
,tt
Lt;

e r e t i ree. •;
o rs for lo e3 n e d
be in ea rb Lae , th g9E their necks
ill r Eeist the te.:..tetio-_-). tr. on: Ti pro-
1 17 .7} ":;E: er
ea to t c or. n tt 1
tic the eape oo2.ino fth.e the (..;:pec 17, -
t i ono of el eci one of ,de .„ --ore ref a te e.2 E reality
1213 t ".r;e :Par ty 2:n t oc 7-1d. o do to- d'i.7./
sho:ildb
sa :3 fresh in obiri t 72.e 1,9
of 1965 io dirent fron t1 e. orld of 1951. Unieee it io
to see' nee'J inife J t do ne-r4 er
and 07).--)ozturait-J, t the 11 riot
rth fleTin. u oo:ct be tied to et.,.-,!t emento , i-
tudee, to noldbtes 3erc,er .=.0.1-'',=.2n.m..etA mieili:=:3.Er
1-.171 en to he." 2."od E' e'.°,7. -L.- bz J. et 02.20 tho:
t.!ere Conser.L.:3til3 OVO2. 2 =-!.1-1,7d t
c1..T.itted 1 ••• bet.-
1984, s1i bu:Telple.-3:3 to do DJ t'e
The t rd tt
the r ti 1 r notice. :7,e, , flI
, is tt..stified t.ecedoe ere oommitted
Ice:..st. The onl: '.tion for ele.,-:ent
ri;r:o.Jrode ezelmin.Htien Ifl. debr3tea ieliele it
co:reeponds toehe preeent c out 32-i7:lin J3 e
em in 1935 -r.' 3 a fu t.oure e c dn

.11 111•11
•
otand
0\
Z
Toint of thot Tyr es Prl t .
142 t oresent poses a stern but zirr_ole -..oesti on :o -r.; -
peop.ee of these isl'ands. Have -:.:e the 000ra2.e to ' ccept
thh.:•-t it is out of our o':_ n '3 silizi es 'in'f, resources hsre , such
a s t hey are , tha t our future must be fashioned '',:ind if so,
have 7e th,1 courJJe to -,-D:17, 1-, . ete b i li es end resources co
the only truthful, the only acid test - th.,:t of competition,
be te; e en Insn and man , comT; any and cof.:nany , industry and indu
s try , co untr,-,,. and country
The Conserva tive Forty, , if it 'r.2 es,..imE , ....i 1 r tha n-:rle of t he
ni tion to '3!-Is'i've-.2 Yes to the se -_ue sti ors mus t ;_-7ubmit e ;ery debar
trleT t of Ito ilejt and of the n3 t Lon-_Il life to 'i]. un To a
1
rin6
analysis in the iz,1- t of th at .,n s'er before i t dare cl'lic: th e
op',)orta -_ity to ,...,bv ern. Nothing ':ihich ,',,e ha ze UJne o r per-
:flitted to be done in the bast, nothin; -,'-' -Leh hie pc.-..e like
to -;;rite into uur --)lans for the fu tore, can be alio -,e,,d te
stand unLass it -:ill -abide this test. For my o',.:Ja 7: ',Tr, i I
ha ze tentu rerJ to -:ay tht I ',io not see h c—, , re,: ireT.eht
can be oonsistenl, 7.Ji.t7 the beloterirac so bsidi sir. uncompetitite
industries and tnouLpetitive rei4ons ; or .-'„Hith
nrevent..in.7 ,s.cods ari.d ser iic es , includiniz .13nd and - omes,
ff'om findi ;--- fl-air Trice in the open fri'" i I ' .c!, 5; 01' ,iith a couiescence
in the ste te o;iner ship ''= l':!2 . 2 .: ":. J ,"., U 2 ')ur infcs tl',.;
C Lit of combetiti .,, for cseit a'n,.1 cost:IL; or ,-,i ;h the ps:na-

5
isin.,7 or denigrtion of ,health and nrofits, inclufltng
spital .s .ains; or ,Ath the pretesion of governments or
commissions to clan the economic future and adjudicate
uthe ritt relative v:.7ilues of men and t'-ins;
or mith 1as Ahich 'bertetuate the privileges of restrictionism
it labour, brins and skill.
i
Inyone ':Lho peeps under these headings can :c17iimpse
To move a sinle ste-p in ony
of tY.o:-,c directions
to disturb rested interests, to court t 1ne loss of votes,
rut,'
to a:front old prejudices, to be ac2used of innumnity, even
tc eat t1-:at most diusting of meals - one s -,o-Ln
But if the dif:iculties are at, SO is tYe prize tlso.
It is not for tIte sake of adry-as-dust theory, or bec:_luse
of the ecedemic bos,,tj and or,7,-. cision of a market economy,
or from noterialistic clealatin of a point per cent. less
or more to be rained ere or there, tha e are calle'l -upon
to co=erfl tne test of comnetition to the 1- it.ion,
9nd to
submit our can oolicies and 'ctinns to tHat test fjrt. 21-le
.9e.mnd coes pasionate art direct fro& te heart of nat'nn1
pride itself. to-dai needs .des')ertely fOr its u7'n
sake, for bhe sake of its self-respect, to regain 1- ,e confi.
dence ma the contiction that it C9r:1Yold up its :1r, Comcetition
7,ith ai cofter,,, ia t a orid. it can geTer have
that ooniiction oni':ss it ie f,rst eilitn to face t s :e te.:t
of rombetition
atYom3.

6
Let Us not make the mistake of overestimitinj , any more
ham that o undar-estimetin, the difficalties Our riJ91S
in the ',;orld are not -,:ithout their ,eaknesses end their hanr3ice,t's.
'::hole sections of the "irnerican economy ay riO.dled
v:ith restriction and subsidy, ti e pork-barrel and Con;,,ession
log-roller jostle uneesily viith the brsh aaterorise of the
frontiersminand the Tresentillmilborlatist alministration pier
there 3h(Lns si,(77ns of espbusin su= of the sillier eacesses
crove=ent
of .&ft44.i(4,4by exhortation. Hgeie7-, A.merica, ith its
endless natural resources and rcltiTely tiny need for i=ort
- 3 mLere tentiett of the 1-itional broduct can berhans
,3_ford the luxtry of lsting H zD -rt of its prodiall substance.
Then look nearer home at lesbbrn Tx-In:any, SO dazalin2ly
successful in the envious eyes of its ersthile lictors. fhe
/
retention of labour in inefficient peasnt farmir:for pclitical
reasons is suffident to make t.;e 3h tish farer' mattress
look ty Comparison more like the f'Pkir's bd of niis
than tho proverbial fetherbed. If 3ritish
tens of million.s of pounds a year on onital :no cu.-feat Aocount37resources
aab io shoald be nut to be Star isa tan, in
pro;iding services -LrE , onn.itP(i nr under-usPl uhen
ta'r:e zlence at s a 7xeriTian I7odcrsi
,RnA still mon7:nt 1033'3a ar tha ,price a e jars an Toliibin
e pr pared to oay rater t,'ra "do
Am.

7
„gr mey think it pretty ghastly that o,-.2d ',job ens and fred
Lee"accept the c ase for tryinp to motntain the Position of
oal ,3t eround its present le vel" and that t3x
nd is retkined on indu stryt s fuel oil in order to protect
a less efficient nd more costly source of lioter. B c33t
your eyes across the 1:orth 3e3, and you find not only Zrnce
end G.ermany but even Holland itself, unb:lieietly blest ith
n'tural s under its o-:Jri surface, ta:ing st ers to sloc don
proszress for the uske of the miners' votes end to create a
protected and Tirtificial envmronment for the coal indus trie s
of the Europ Zconor c Community. .
competitive 3ritn need fear n orternal oonament. The
only deneru us or '•2 o t is :iithin: our -o-An fears nd doubts
end ne sits t ions cod inhibitions. 2he dory 2 :2 ty is called
upon to e vole the nation' s sill to overcome th,a-t inser obby
ponent, 44+1*.4 sho,)ing tr:ret tJ)se very Chen fes end cnn,lleng.es
Ahic re fear e full: competitive economy -Jo J,Id bring, toLL;h t
to be a source of natio: el stren:t.1-'. end c onfidence.
"'here, is no, effol't tht i- rot -or th .mvking to reg-,in
if, , rhen regeined, it is to be de vot,ad to Tir c':ucz e.

1_ Z
J .
:,ten.,;oath-.;est
Coneerztive ;:eeien's
2:e:nold12
:01,rernston, et
11 12th 2etrori 195.
..inister of e're.nsport de , 14'3 :iinnoarcPnent
reek thst te-d to's:en on Lord Hinton
e teft.:eor
ser79nt to study the co-ordintion of tr3nsport,
used
siznificent sAerds. He se.id, ''71-think t5v3 ifust peos)le in the
countr; necicy3 tnpre 03-stefZ coff_eetitian in e'e:
7.:to-I131on of oar trnscort 3er/Ines'. 2nerfore,
:
is 9 very :e_rept nPed to Cchieve -:restPr
prick ape my esrs Tnlen S eer 0002S13iC1-!-2, like
'Pestefl oprn^otition" or'cat-trpst, coler,etition'. people
asP tkerms like these, it is
adre sin feet th.e." hete
cmpetition
jtsolf'Thd 7771rit tu --Pt rid of it ol00:17.
fore thev Pcply tjeese 000r0020oa3 e2thets to .
.941
helinthe osbd nsrLe, to lll be -.J1,med to strerH.Ie
Cert.7!in10 there is coinetition in 3._7.r trensport
becsa3e .oasseners end - sa-orq of poods t-
ii
choose beteen rosd rd roil ,
privete end. eablic
oJrfsce transort.
Certeinl,i0 ere i3
-!,aste in Od-2 trenseort serlices.
onertin deficit of on epitish in
72hich
7rolided
to be !let by the t,3x17;e:sr becm,3e Se2li303 -;ere
hic 73e07,1 'lid not 'T,nt et li'Pe price tn,H,
offere ia evidence of colossel -ste - Lisepelied effort ,71-1
ec7 ceitel on vest ceoie.:7-fl 30, ..rp-re been Je_iity

of un7lerstatement,ceccase t-.t deficit is before c rin
one penny of interest, not 'to 7-,cntion 7,201- it, upon c]p -ti.
But it does not follo that oec'adse t,el'e is Cotlcom_petition
and -Jests, therefore tl-e competition causes /-;le,
- Jaste or that it is '.:;asteful conetition'. 6n t-e contrary,
the -,:aste continues becauo.e there is not enou7h
because operations ore carrie on -:hich are not cortcetitive.
Burin4 the la-t decade or fficre this country :a.as been
rroidins itself 7ith a modern sistem, ander a road
prorcmme hic aongst other ttin:S ill i,re us c thouE3nd
miles of motor-Jay by the early 1,7o's. 1 havc not ho3rd
member of the public, certainl I hale not he•ard malT:cr of
the Ca,overnment, either before or since the last election, aruirl
thot this proramme is too b.L. ,;ather peociee tended to
suest that it is too smli. If have decided to
provide ourselves '.TAth this road system, v!e thri nave te
other forms of transport it is -,forth our yihile to orolii.e
„4.
There is only one to find this out. It i3 to ensure
competition,both in the use ot' t e fo9ds theselves its
rocd trananort n oter forlTls c' trnscort.
akcad trensoort 3t the 7720=t time it 3!.lbject to licensin-z:
end other restrictions 7:;hic dte from 'a -oriod
:iistnt, a time -.;.hen conditions +,e,-re ier," different f-r'off., t•op
to—cl,ay 'end -;hen it 79:3 c,coepted not
otil3lij 93 desirbie to reetrict '.nd limit copetition. des

estrictions are hard to justify in the l060's, and it may
o
,.., ,,..
ell prove that the report the Committee to examine them
o
o
z
Ernest Earples set uo under the chairmanship of Lord
\\--./I
,reddes-rill before long open the -Aay for a clean seep of outof-date
thinking and legislation in this field. It is to ce
hoped that when the Linister of 2ransport cryptically said in
an intervie
this week that "Lord Hinton e)ill eork closely edth
the Geddes Committee" it,does n97,;-- mean that pressure is gain,: t
s
be b ourtt to bear upon thevito modify their conclusions.
3ut the fact that there are still these limitations upon
competition on the roads is no justification for ncrnetuatinj 3
moment lo.ner than necessary a sttucture of the railays eJnich
is uneconomic and uncompetitive.
fie-orous action taken under
Conservetive -,;,overnment has knocked ell.ost 4U millions during
the lest to years ..lorie off the onerating losses c1(the rail-
-)ayslhich the taxpayer has to make rood.
2his represents the
result so far of the first phase of jr. beechirrE's plan for the
-,
reshaping of dritish haile:ays - ,i,44--kme-1-1 (let Us add in ell
,i
feirnessl the comirr=_: to fruition of scEhemes and iniestment
underteen eerlier. T.he next phase, for ehich Jr. 3eeching's
proposals, I understand, are elreaeey e;itl.. the L::irister, should
meke it possible over the next four or fife 'ears to eliminate
altoether the oertin.g del'icit of ..:67 riillions a Jeer e:hich
still reains,end so at last teke the deddeight of the raile
off the taxpeyer's beck ehd enoble them to break evei . on their

-4-
workin7 resultS. '2he capital lnitested in them would still
not be yielding a commercial return, and the ma tion ould
till have said good-bye to the e.1200 million which has had
o be written off. All the same, we could at least claim to be
v;e11 on our ,tJay to recovery from the disastrous experiment in
national ownership which 'JR3 inflicted on our transport system
and thus on the whole economy almost twenty years o. Jo high
is the p.Lice of error, and so hard and stony t e 7'oad back froz,
it.
This beins so, I ,Jas horrified to heir the nee I:linister of
Transport, within a month or taking office, declare in the
of Commons that "one cannot in tao foreseeable future ma e thP
- o• -
railways ,oay" and that in th e 49€rt Tran-nort -cti•raLliaenp
toe foolishly invited to ,Irite-in ti,ose provisions about
ensuring that the t il'Ays "Board should mo:ke t:_e railways pay".
Pe had folvotten that the Jocialist act of 1947 itself imposed
on the 3ritish Transport Comiliission the self-same recuirement to
break even, taking one year -rith another. Jut what is ropily
fnishtening is the attitude of mind thich thee k'nd of 1,3nu.:Le
reveals. It su7ests that the Government have no inter ion of
csrrinl the reshnapir1l of British ail-!Jays throuh, aOt naait
in tead to p t an extinuisher upon Dr. Beechin Is
lk about -ordina tion" only arned
people that it did, the objeci, of maint:inin n-tionalised

-5-
industry as a Permanent pensioner of the public., nut
re:luired to justify itself in open competition for capital
and traffic, but feec'in-g like a narasite on 6hose parts of
2:„te ef-ei /r
he economy -:;hich are competiti re. - in one
or poth of tv;o '.,;ays. Either the plolic iil 1ie to Se
nre/ented from choosin the-i4orn",-,- of transport h1ci± the.,” erefer,
or else the public 'Jill nie to se l3id under contriputi on tc
meet the reoil'Aaydeficits in persetuity. L con ::,;uess is t'Ict
both methods )re intended to Pe u.sed.
2he terms of -eference of Lord Finton' s stud,/ refer to
"the co-ordination of investment -olicies for p
reilays" and "the ri,zht balance beteen t'2.o u;:ye of -201
rail".
am 'afr,-;id His Lordship has joined the ez -rO o iny ranITs
of those om thi s 7.i-overnment anplcviss on t task of fillin
sieves; for all ';his talk about "co-ordination" TInd "ri!,ht
balnce" i3 the merest hocus-pocus.
Unless our roads are t3ll to be converted into toll roads,
there is no means of f.isPoverin ho mac. eKbenditure on them
is ju-tified by a2hat the Jeers are prepared to p3f . L.)n
rair:Jays, on. the oth er hand , it is ou ssib le toe iscov er just
th: t can have , and me nu ::.;ht to e , each a r
st em as i$ justifi :te pl-ofit out 0-1..° te
trdr.L'ichich uses it in ureferenc e to the a zai ebi Jo rne ti
outtin
it M3: be the jrrert con ten1.17)1 te/ rud

SAA- 0 -,-.1,--L.
It may be they intend to impose 444404W.Qa taxation upon
road users. If so, they may hold back the de1,3101:ment of
roal tr9nsport and force onto the ri_i_ays, or keep on the
railays, traffic vihich other-oise 'oL,C use the roads. ;:tet
they cannot cleiri is that bg doir,s2' 30 thPy --e achievin
"co-ordination' or strikind a "riht balance'. 2hey -::ill only
be perpetuatins a I7.ue :iJaste of nationi resources in obedience
to prejudice, spite,or obsolete -1-1dn). ,31.e(9 . thinkin.

3peech by the at Hon.J.Enodh Powell,YP
to the Edinburgh University L;onser;ative Club,
University Union, Edinburgh, 1 p.m.Friday 15th January
1965.
"Mind your own business" is the one and only correct reply
to the (luestion about prices and the reasns for increasing
them mhic':: irr.leorge 31,ivin is in course of addressing to the
representatives of various branches of commerce. No doubt
the reply could and should be phrased with more courtesy and
circumlocatiant but that is the gist of it.
I an not averse to the citizen dupplying the government,
on request, if he finds it convenien14 and not too laborious,
mith statistical information and even vvith gratuitous edvice,
mithout being under a statutory obligation to do 60. Liut that
is something entirely dif2erent from the operation on which 'LI.
Bromn and the .4,abo-r government are engaged. ;hat in effect
they are doing is to out the private Citizen into the dock,
to anser guestions bublicly '.--ibout the conduct of his orivate
affairs, in order that authority, if It thinks fit, may hold
him uc to obloquy and create brejudice a.F7.ainst him.
TI-Jis
government by smear. It is cleen contrary to the
Rule of LarJ. The citizen is entitled under the :Y.ule of 4..3,w to
know what it is that by law he is entitled to do or not to do.
If there dre particular ways in r.hicche ought nc. to act in
r;,7 rd to brices, then t ose must be efined by 21:7C:j, la.iLede
by yariient in tne pro er interbred end qIied by

2
the Courts in the proper :Nay. Unless dnd until the low is
thus changed., the citizen is entitled to conduct his of-
'id_thout critici-'s'e-i or houndg, io accordonce it
the lb-vv os it exis,,,s-. He is not required to hove regard to
vlhot Er Brown chooses to say on television Or Lr Cou3ins ot
by-election. Those men are in fact tr,ing to supersede the
holing
machinery of legislation and justice by the citizen
before the uncontrolled and. irresponsible trTbunal of their
p7;inprejudices ond dictums,_
,
This behaviour of the ;,3overnment '!'ouls1 be intol eroule eJen
if ';;hot these genA.emen bre sr3yinz obout prices oere econo:iic
sense.'As it is they ore tclking economic nonsense.
There is only one price 7Thich o firm or a person is ,ustifled
in tryin: to get for his goods or hi-4 ser.rices: that is
the prica htch he believes vdll bzlng im tjle best re7.;u.rn.
Of course I fio not mer h. that a hu-•=7,e tro fi t oiie month f ti
by t1Te coliaase ofhe ruiret t e
return over such eriod T2s e de em ,7 it rnt-., to tri loo
shod. Th ot -.;en-1-).t to 2.,et t'is ric,- is every so s
t is no t only is dst; to inriif, is • )
, .
, =,nd omploiEes , It i
Jo f a frOM ocirig a E iris 4 inconoi hai e otitudo
io 7, •:".'"_
ca or
fc-In '13 nri eo oc a-±oo d

;');
4G7 .1',c;TJo4.„ JO
Et4 377p2." CO MT/,TO, iq417=',117-1-:cr 3T. uT E.0 mTa
57:0T.1- ET 47,7 *9TIC .713],qoub-4cGT uco g4TCFJ 9T4q.
T.Jp JT 17.7
qt_mrwi.TTIJ *91T]Tg ooFoi—Topao iTuo :pooS
oE op oor pi`Op (.."
Gnu7T7.urJo =J..; OStOp 00 waoJ ,TG:foad
771 Er sLuTI:,00 p;oaT.2-4 linOAE1,;01 -,y(IGUJETTacT J1
7uTop sT
T 301 0^ T,TE41 "_:CITH;PUTOJUT 17Jess,930'u uJT soTT,JO
CU !SGOUGrb@CUrJO 9T.1 J0j ilumoo.:)e oq OU
1.2.77;73T-L7, Jo 7:::QGT
/7T73a77 t Tr,74-
'qUG7r1:09p J37_100
uoT,:;c7;7c,,TuT 19TJT-IiL;J cs;TT rzTg uT
or .suoTo,b-4.37-9VLLt271:20Td;Jci 77,G.TfOL
-COO '4c)u po,ro /01.:4
CJ74 0 E1,„1;
r_iT-.1;,72+OGL-_“ 1a;7.;LTp0 uoTqoL: I!7
Jori Iuu 2 0011EFJ0J10 9Tq1GTLoq
-11; Jo :=:TIToc„ c/77::011009 o SuT2s;oqus oroei,j;; uT
sT 9jr.T1U oTocq TG!,pT 1.1.11.Tqa-c emos O owd sTL:,
1:1:c.,40gTTGp 347:02,7i;j 177 dr7_,a-r.jae 00 J3LCqTJ
OUT 7,Ina7T7.E.-JJ C tTTs
•

•
4
By hoc much does he consider it to be in the general
interest to reduce his profit beITN the mSximum obtainableby
20, by 40, by C5C‘i He doesn't kno; he can't knu;J;
yet tl-e nresumption that he does knoii oust underlie his arrogant
claim to act on our behalf. Agin, should the price of all
goods end services be uniformly roduced 7hat can be obtained
for them, or some more, some loss end some not at all,
axie
end in ';Jhich cateory #Ea- HP doesilS kno; he can't 1.c.no;
yet he must be assuming that Heaven has somehop) told him. Are
ne to Play ttis game viith our exports, and to offer to sell i,hem
for less than ,Aiould maximise our gain';' If the re .9ly be,"Ot no,
those are for foreigners; no holds barred there; i.re ought
go out for the last penny", then. I sAall ask hiyv. anybody f=no's
,AhLLch goods and services are ultimately exported and v:hich consumed
at home.
I have been talKing about goods and services and profits; but
the same applies to brains and labour a)ild ages. rian has the
duty to sell his brains ,,nd his bra,! In in the best 1. mrKet
he can
find for them; that is, in the market -;*ere their use yields
him -hat he calculates to be t!ie greatest satisfaction. If he
deliberately does otherise, then he dinies his fello-citizens
the best he has to offer, by r)roventing them from indicating
7;hat serv:ices they most desire fr.m hiL and hat relative value
they place upon them. True, he does t'7"-e'Snlif ,a ,,:rong if he enter
into a cofl:Apination 7,!ith others in order, o prefenting comPe-

•
5
tition to obtain a er orice for his work than he
could get in an open marke , just like the tradesman
•ho in combination Tlith others tries to secure an artificially
hih price for his „.goods by restricting or preventing
competition. But who is defedinb that': It is as wrong to
try to get more than the market price as to try to get less.
the public
But peeotae still say - and this is the reason why Messrs
Brown and Cousins get a hearing 3t this m.ay be very
people try to put their prices
true, bat if 1,t4eee-Ifee-Re4e up, surely that means inflation":"
The anser is:"No, not at all, unless the governzient
deliberately
finances inflation; otherwise one set of prices can only go up
if another set goes down". This is why it is not a rude retort
but a sound and sober piece of advice to r Brawn and his
colleagues to "mind their own bisiness"; for the business of
government, which government alone can mind, is to reulate the
total level of money demand. The 1,abour Chancellor of the Exchecuer
himself has admitted that he can do this dnd even that
he is trying to do it. If government minds its own business
doing this job and doing it properly, then the citizen can
mind his osn business, secure in the knoledge that his effert
to make the very best of his capital or brains, His laocur or
enterprise is contributing to the giA)d of his country. If
:zovernment will not do its job, or fsils in it, we mu3t not let
them divert attention from the true mischief by finding scapegoat

•
0
and bogeys. That is tyranny and 1aw1essnes, of a kind
we have seen too often in too many countries in our own
generatione