ly meant bankruptcy for the one, and probably, in the
end, also ruin for the other. Taking the nineteenth century as a whole,
the fundamental financial error has been this--that Ireland has been
taxed on the theory of equality with England in point of wealth. That
equality has not existed. What was a light burden for the one country
has proved for the other a burden too heavy to be borne.

The result has been that Ireland, being continually overtaxed, has sunk
steadily in her resources, and has gradually become less and less of a
taxable country. The taxes have returned less and less, and have had to
be returned in the form of relief of poverty. A crisis in that
situation is now reached, and it is quite clear that we stand at the
parting of two roads. Now that the balance is beginning to work against
England, it is certain that the only alternative to the restoration of
Ireland is the gradual dragging down of England.

It is useless and unjust to argue, in answer to this great Report, that
Ireland ought not to have been regarded as a financial unit at all. Any
country that is an island, and possesses a social organisation of its
own, with a definite relationship between rich and poor, must
necessarily be a financial unit. But even if that were not so, it is
too late to argue the question with any honour. For we must never
forget that the whole financial legislation of the United Kingdom in
regard to Ireland is based upon the Act of Union, which was practically
a solemn treaty between the two countries, passed--we will not say
how--by both the British and the Irish Parliaments. It is the essence
of that treaty that Ireland entered into it upon certain financial
terms, and among those terms was the condition that she should be
treated as a separate financial unit.

This Report, therefore, immensely strengthens the claim of Ireland to
more generous financial terms in 1912 than in 1886 or in 1893.

We want to set up in Ireland a high and strong sense of financial
responsibility. The control therefore, as well as the expenditure, must
be placed as far as possible in Irish hands, and for that purpose the
management, as well as the collection, of Irish taxes ought to be left
as far as possible with the Irish Exchequer that must be set up.

The tendency is started by the principle of the Bill of 1912, and the
policy of the next decade will be to place in Irish hands as rapidly
as possible both the collection and the adminis