The South Wales miners gave notice to terminate on June 30, 1915, the peculiar agreement under which, since March 1910, their wages had varied within a minimum of 35 per cent. and a maximum of 60 per cent. above the basis rate of 1879, according to the selling price of large coal f.o.b. in Welsh ports. When coal sold between 14_s._ and 14_s._ 9_d._ per ton, wages were 50 per cent. above the 1879 basis, and they were raised or lowered by negotiation for each 1_s._ up or down in the price. In March 1913, wages had reached the maximum and had remained there. The prices of Welsh coal in 1915 on yearly contracts, on which the bulk of the business was done, were 18_s._ to 19_s._ per ton, prices for other coal being up to 35_s._ per ton. The South Wales miners demanded a new standard 50 per cent. over the 1879 basis; abolition of the maximum; a new minimum 10 per cent. above the new standard to be paid when the average selling price of large coal was at or below 15_s._ 6_d._ A selling price of 15_s._ 6_d._ meant, under the 1910 agreement, wages 57 per cent. above the 1879 basis—and under the claim meant wages 65 per cent. above that basis. The rest of the miners in Great Britain had claimed a war bonus of 25 per cent. on earnings, and Lord St. Aldwyn had awarded 17½ per cent., which was accepted. The South Wales miners’ chief purpose was to establish a higher minimum as against a post-war depression in trade, and to secure during the war higher wages as coal mounted in price. Negotiations between owners and miners broke down—the former agreed to, the latter refused arbitration—the Navy relied on South Wales for coal—a strike was imminent. Mr. Runciman, the President of the Board of Trade, offered the South Wales Miners’ Executive generous terms which the Executive accepted “as the basis of negotiations,” viz., a new standard 50 per cent. above 1879 provided that the alteration of the standard should not in itself effect an immediate change in wages; abolition of the maximum and minimum of 1910; and the levelling up of rates of certain men. The men rejected these terms—Mr. Runciman very properly would go no further. Mr. Lloyd George then secured the issue of a Royal Proclamation under the Munitions of War Act, 1915, making it an offence punishable under that Act to take part in a strike in the South Wales mining industry, whereupon 200,000 men promptly struck work by way of reply. Mr. Lloyd George himself went to Cardiff and the strike was settled by the Government giving to the miners practically all they had asked, with full indemnity against their breach of the Munitions Act. It was the first time the Government had, measured its strength against organized Labour and the Government’s capitulation had a far-reaching repercussion. Compulsory arbitration was discredited and by the Government. Government War-time Control