The day before the Chancellor of the Exchequer had appeased the single-taxers, the Foreign Secretary had again disquieted the Liberal advocates of naval reduction at a dinner given him by the Manchester Chamber of Commerce (Feb. 3). Beginning with a reference to the Lancashire cotton industry and the promotion of trade by the Consular service, he said that one duty of the Foreign Office was to keep open the world's markets; but further difficulties might be raised by the effort to do so--in Persia, for example--and the Great Powers could not as yet interfere to prevent war without the danger of an outbreak of war among themselves. Happily in the Balkan War the Great Powers had left the settlement in the main to the States concerned, and had preserved peace among themselves. British policy, throughout, had made for peace. But trade was damaged, not only by war, but by the waste involved in armament expenditure. A slackening by one country, however, would rather stimulate the others than cause them to slacken; British naval expenditure was a great factor in that of Europe, but the forces making for increase were beyond control. To reduce the British naval programme would probably produce no response in Europe; at any rate, it would be staking too much on a gambling chance. England, though she felt the financial strain the least, was calling out against this expenditure, because, as business men, Englishmen were shocked by the waste and apprehensive of its effect on the credit of Europe. She had several times proposed reduction by consent, but had met with no response. The only schoolmaster for other Powers was finance, and he thought at no distant date it might begin to be effectual. He closed with a reference to the great traditions of the Manchester School, and an expression of hope for the solution of the current problems of industrial discontent.