§ One of the first concerns of the Chancellor of the Exchequer is the position of trade and industry; and I am glad to say that the trade and industry of 1902, although not so good as in 1900, which, as the Committee knows, was a bumper year, were still in many respects better than in 1901. In some respects they were not so good. For instance, there is, so far as the returns show, a rather larger percentage of unemployed, al though the percentage is by no means great, and will compare favourably with the average, yet it is somewhat larger than in both 1900 and 1901. Wages are also somewhat lower than they were in 1900; but the Committee will remember that the wages of 1900 were at a very high level; and it is not therefore surprising that, trade not being so brisk as it was then, wages have to some degree suffered. What is a very satisfactory feature of the case, I think, in a falling market for wages, is that there have been, comparatively, very few trade disputes. Both employers and employed have dealt with this question of wages in a conciliatory manner; they have met together in a friendly way to discuss the situation, and, as is the case in the great majority of instances where employers and employed can be got together to discuss the situation, they have been able between themselves to arrive at a conclusion with regard to wages which has been comparatively satisfactory to 231 both—at any rate, it has been reached without any strikes or serious trade disputes. The foreign trade of the country, I am glad to say, shows an increase both in imports and exports. The home trade of 1902 also shows an improvement; and there has been an increase in the production of coal and iron. Railway traffic itself, which is important as an indication of the state of trade, has shown an increase of receipts both in goods and passengers. Bankers' clearances show considerable increases; and the tonnage of vessels entered and cleared with cargoes shows an increase of over 1,500,000, equal to 4 per cent., and I am glad to say almost the whole of that increase has been in British bottoms. I claim, therefore, that this state of things is not only satisfactory in itself, but that it may be considered fairly satisfactory when we come to compare it with the depression which, exists elsewhere. The figures for 1903, as far as they have gone, are encouraging; and, while I do not think there is any great scope for jubilation with regard to our trade figures, I think there is much to inspire courage. But there is also much which should entail caution upon us; and I think the lesson we have to learn is in the direction which I have just hinted, that capital and labour should endeavour to draw closer together with a view to mutual understanding, knowing as they do that what is in the interest of one is in the interest of the other, and by friendly conferences and putting shoulder to shoulder they should strengthen their power of competing with foreign countries.