I think I see a very pretty problem awaiting Labour in the near future. As the Trade Unions become more powerful and show their determination to take the mines and factories into their own hands, capitalists will turn to Asia and Africa. The exploitation of the native is just beginning. At a time when Britain is a Socialistic State all the evils of capitalism will be reproduced with ten-fold intensity in India and China and Africa. I see an Asia ruled by lash and revolver; the profiteer has a short way with the striker in Eastern climes. The recent history of South Africa is sinister. A few years ago our brothers died presumably that white men should have the rights of citizenship in the Transvaal. What they seemed to have died for was the right of profiteers to shoot white strikers from the windows of the Rand Club. If white men are treated thus I tremble for the fate of the black man who strikes. Yes, the present profiteering system is a preparation for an exploited East. Margaret Steel and her fellows are slaving so that a Persia may be "opened up," a Mexico robbed of its oil wells. * * * To-day I gave a lesson on Capital. "If," I said, "I have a factory I have to pay out wages and money for machinery and raw material. When I sell my cloth I get more money than I paid out. This money is called profit, and with this money I can set up a new factory. "Now what I want you to understand is this:--Unless work is done by someone there is no wealth. If I make a fortune out of linen I make it by using the labour of your fathers, and the machinery that was invented by clever men. Of course, I have to work hard myself, but I am repaid for my work fully. Margaret Steel at this moment standing at a loom, is working hard too, but she is getting a wage that is miserable. "Note that the owner of the factory is getting an income of, say, ten thousand pounds a year. Now, what does he do with the money?" "Spends it on motor cars," said a boy. "Buys cigarettes," said a girl. "Please, sir, Mr. Bruce gives money to the infirmary," said another girl. "He keeps it in a box beneath the bed," said another, and I found that the majority in the room favoured this theory. This suggestion reminded me of the limitations of childhood, and I tried to talk more simply. I told them of banks and stocks, I talked of luxuries, and pointed out that a man who lived by selling expensive dresses to women was doing unnecessary labour. Tom Macintosh showed signs of thinking deeply. "Please, sir, what would all the dressmakers and footmen do if there was no money to pay them?"