In 1904 a new principle was introduced into the licensing system in England, and this, too, was due to change in public opinion. Between 1830 and 1869, under the influence of the legislation described above, a continuous increase in the number of public-houses took place in England; but after 1869 they began to diminish through stricter control, and this process has gone on continuously ever since. Reduction of numbers became a prime object with many licensing benches; they were reluctant to grant new licences, and made a point of extinguishing old ones year by year. At first this was easily effected under the new and stringent provisions of the legislation of 1869-1872, but it gradually became more difficult as the worst houses disappeared and the remaining ones were better conducted, and gave less and less excuse for interference. But the desire for reduction still gained ground, and a new principle was adopted. Houses against which no ill-conduct was alleged were said to be "superfluous," and on that ground licences were taken away. But this, again, offended the general sense of justice; it was felt that to take away a man's living or a valuable property for no fault of his own was to inflict a great hardship. To meet the difficulty the principle of compensation was introduced by the act of 1904. It provides that compensation shall be paid to a licence-holder (also to the owner of the premises) whose licence is withdrawn on grounds other than misconduct of the house or unsuitability of premises or of character. The compensation is paid out of a fund raised by an annual charge on the remaining licensed houses. This act has been followed by a large reduction of licences. _State of the Law in 1910._--In consequence of the long history and evolution of legislation in the United Kingdom and of the innumerable minor changes introduced, only a few of which have been mentioned above, the law has become excessively complicated. The differences between the English, Scottish and Irish codes, the distinction between the several kinds of liquor, between consumption on and off the premises, between new licences and the renewal of old ones, between premises licensed before 1869 and those licensed since, between excise and justices' licences--all these and many other points make the subject exceedingly intricate; and it is further complicated by the uncertainty of the courts and a vast body of case-made law. Only a summary of the chief provisions can be given here. 1. The open sale of intoxicating liquor (spirits, wine, sweets, beer, cider) by retail is confined to persons holding an excise licence, with a few unimportant exceptions, including medicine. 2. A condition precedent to obtaining such a licence is permission granted by the justices who are the licensing authority and called a justices' licence or certificate. Theatres, passenger boats and canteens are exempted from this condition; also certain dealers in spirits and wine.