Now, we are not concerned here to follow up the devious windings of modern Conservatism. We have to note only that what modern democracy has to face is no mere inertia of tradition. It is a distinct reactionary policy with a definite and not incoherent creed of its own, an ideal which in its best expression—for example, in the daily comments of the Morning Post—is certain to exercise a powerful attraction on many generous minds—the ideal of the efficient, disciplined nation, centre and dominating force of a powerful, self-contained, militant empire. What concerns us more particularly is the reaction of Conservative development upon the fortunes of democracy. But to understand this reaction, and, indeed, to make any sound estimate of the present position and prospects of Liberalism, we must cast a rapid glance over the movement of progressive thought during the last generation. When Gladstone formed his second Government in 1880 the old party system stood secure in Great Britain. It was only a band of politicians from the other side of St. George’s Channel who disowned both the great allegiances. For the British political mind the plain distinction of Liberal and Conservative held the field, and the division was not yet a class distinction. The great Whig families held their place, and they of the aristocratic houses divided the spoil. But a new leaven was at work. The prosperity which had culminated in 1872 was passing away. Industrial progress slowed down; and, though the advance from the “Hungry ’Forties” had been immense, men began to see the limit of what they could reasonably expect from retrenchment and Free Trade. The work of Mr. Henry George awakened new interest in problems of poverty, and the idealism of William Morris gave new inspiration to Socialist propaganda. Meanwhile, the teaching of Green and the enthusiasm of Toynbee were setting Liberalism free from the shackles of an individualist conception of liberty and paving the way for the legislation of our own time. Lastly, the Fabian Society brought Socialism down from heaven and established a contact with practical politics and municipal government. Had Great Britain been an island in the mid-Pacific the onward movement would have been rapid and undeviating in its course. As it was, the new ideas were reflected in the parliament and the cabinet of 1880–1885, and the Radicalism of Birmingham barely kept on terms with the Whiggery of the clubs. A redistribution of social forces which would amalgamate the interests of “property” on the one side and those of democracy on the other was imminent, and on social questions democracy reinforced by the enfranchisement of the rural labourers in 1884 stood to win. At this stage the Irish question came to a head. Mr. Gladstone declared for Home Rule, and the party fissure took place on false lines. The upper and middle classes in the main went over to Unionism, but they took with them a section of the Radicals, while Mr. Gladstone’s personal force retained on the Liberal side a number of men whose insight into the needs of democracy was by no means profound. The political fight was for the moment shifted from the social question to the single absorbing issue of Home Rule, and the new Unionist party enjoyed twenty years of almost unbroken supremacy. Again, had the Home Rule issue stood alone it might have been settled in 1892, but meanwhile in the later ’eighties the social question had become insistent. Socialism, ceasing to be a merely academic force, had begun to influence organized labour, and had inspired the more generous minds among the artisans with the determination to grapple with the problem of the unskilled workmen. From the Dockers’ strike of 1889 the New Unionism became a fighting force in public affairs, and the idea of a Labour party began to take shape. On the new problems Liberalism, weakened as it already had been, was further divided, and its failure in 1892 is to be ascribed far more to this larger cause than to the dramatic personal incident of the Parnell divorce. In office without legislative power from