olution of industrial problems lies in that direction, should in
proportion as he considers the psychological factors in production and
investigates the means of realizing his ideal, find himself working back
along the path to a point where he will meet the men who are grappling
with the problems of the day on the principles here suggested, and will
find himself able to move forward in practice in the front ranks of
economic Liberalism. If this is so, the growing co-operation of
political Liberalism and Labour, which in the last few years has
replaced the antagonism of the 'nineties, is no mere accident of
temporary political convenience, but has its roots deep in the
necessities of Democracy.

FOOTNOTE:

[12] It is true that so long as it remains possible for a certain order
of ability to earn L50,000 a year, the community will not obtain its
services for L5,000. But if things should be so altered by taxation and
economic reorganization that L5,000 became in practice the highest limit
attainable, and remained attainable even for the ablest only by effort,
there is no reason to doubt that that effort would be forthcoming. It is
not the absolute amount of remuneration, but the increment of
remuneration in proportion to the output of industrial or commercial
capacity, which serves as the needed stimulus to energy.

CHAPTER IX

THE FUTURE OF LIBERALISM

The nineteenth century might be called the age of Liberalism, yet its
close saw the fortunes of that great movement brought to their lowest
ebb. Whether at home or abroad those who represented Liberal ideas had
suffered crushing defeats. But this was the least considerable of the
causes for anxiety. If Liberals had been defeated, something much worse
seemed about to befall Liberalism. Its faith in itself was waxing cold.
It seemed to have done its work. It had the air of a creed that is
becoming fossilized as an extinct form, a fossil that occupied,
moreover, an awkward position between two very active and energetically
moving grindstones--the upper grindstone of plutocratic imperialism, and
the nether grindstone of social democracy. "We know all about you,"
these parties seemed to say to Liberalism; "we have been right through
you and come out on the other side. Respectable platitudes, you go
maundering on about Cobden and Gladstone, and the liberty of the
individual, and the rights of nationality, and government by the people.
What you say is not precisely u