Professional Documents
Culture Documents
Full download Living with the Invisible Hand: Markets, Corporations, and Human Freedom Waheed Hussain file pdf all chapter on 2024
Full download Living with the Invisible Hand: Markets, Corporations, and Human Freedom Waheed Hussain file pdf all chapter on 2024
Full download Living with the Invisible Hand: Markets, Corporations, and Human Freedom Waheed Hussain file pdf all chapter on 2024
https://ebookmass.com/product/the-evolutionary-invisible-hand-
the-problem-of-rational-decision-making-and-social-ordering-over-
time-1st-edition-edition-matus-posvanc/
https://ebookmass.com/product/conquest-of-invisible-enemies-a-
human-history-of-antiviral-drugs-jie-jack-li/
https://ebookmass.com/product/nosql-essentials-navigating-the-
world-of-non-relational-databases-kameron-hussain-frahaan-
hussain/
https://ebookmass.com/product/living-ethics-an-introduction-with-
readings-russ-shafer-landau/
Living with the Party: How Leisure Shaped a New China
Yifan Shi
https://ebookmass.com/product/living-with-the-party-how-leisure-
shaped-a-new-china-yifan-shi/
https://ebookmass.com/product/human-nutrition-science-for-
healthy-living-3rd-edition-tammy-j-stephenson/
https://ebookmass.com/product/supernatural-death-meaning-and-the-
power-of-the-invisible-world-clay-routledge/
https://ebookmass.com/product/high-frequency-trading-with-c-a-
practical-guide-to-dominating-the-markets-bisette/
https://ebookmass.com/product/religious-freedom-in-islam-the-
fate-of-a-universal-human-right-in-the-muslim-world-today-daniel-
philpott/
Living with the Invisible Hand
OX F O R D P O L I T IC A L P H I L O S O P H Y
General Editor
Samuel Freeman, University of Pennsylvania
WA H E E D H U S S A I N
Edited by
A RT H U R R I P S T E I N A N D N IC HO L A S V R OU S A L I S
Oxford University Press is a department of the University of Oxford. It furthers
the University’s objective of excellence in research, scholarship, and education
by publishing worldwide. Oxford is a registered trade mark of Oxford University
Press in the UK and certain other countries.
ISBN 978–0–19–766223–6
DOI: 10.1093/oso/9780197662236.001.0001
Foreword vii
Editorial Preface ix
Author’s Preface xi
Acknowledgments xv
Introduction 1
1. The Institutional Perspective 12
2. Liberal Freedom Is Not the Issue 36
3. Social Coordination through a Dynamical System 56
4. Authoritarianism in a Coordination Mechanism 83
5. Reason Sensitivity, Transparency, and Trustworthiness 100
6. Does a Liberal Market Democracy Satisfy the
Anti-Authoritarian Ideal? 114
7. The Dynamical View of Business Corporations 137
8. An Intermediated Market Arrangement 167
Conclusion 202
For those of us who knew him, reading Waheed Hussain’s book brings a mix-
ture of sadness and pleasure: sadness at the loss of having his life cut short,
and pleasure in hearing again his unique voice and being guided by his dis-
tinctive mind.
The main aim of the book, and what I hope will be its important impact, is
to open up in a new way the discussion of the relation between freedom and
equality. In much discussion, particularly but not exclusively on the right,
freedom is understood in terms of the widest range of individual choice,
which, it is assumed, the pursuit of equality is bound to restrict. Waheed
takes seriously individuals’ reasons for wanting to have a choice about how
their lives go. He points out, however, that these values do not determine the
form that an economic system should take, since many different economic
systems can respect these values. These systems differ in the options they
make available to individuals and in the incentives that individuals have for
choosing among them. They are thus systems of social control that “steer”
individuals to lead their lives in certain ways. They are also dynamic systems
that change these options and incentives over time, and differ in the ways
that they do this. In a “free market” economy of the kind favored by classical
liberals, for example, the options and incentives are determined by supply
and demand. They therefore change with changes in technology and in ag-
gregate demand for products and services, disrupting individuals’ lives by
loss of employment. (The suggestion is not that this kind of change can be
avoided, but only that the cost it imposes on individuals needs to be taken
into account in justifying the system of control.)
The problem that Waheed identifies with such dynamic systems of coor-
dination and social control is that they direct individuals’ choices in ways
that are independent of the individuals’ own rational faculties. The book is
addressed to the question of how such “judgment-bypassing” systems of
control can be justified; Waheed’s answer, developed at length, is that they
must satisfy the three conditions of reason-sensitivity, transparency, and
trustworthiness.
viii Foreword
T. M. Scanlon
Editorial Preface
Waheed Hussain passed away in January 2021. The book at hand, which was
his main philosophical vocation, provides a philosophical account of the pos-
sibility of reconciliation between human freedom and market institutions.
The market plays a central role in the lives of most people in the world
today. More importantly, according to Hussain, the market represents one
central mechanism of governance, which plays a pivotal role in shaping how
we live our lives. When the market arrangement works as it should and when
members of a community adhere to its requirements, they take part in an en-
terprise that draws them into a certain pattern of conduct—i.e., an efficient
pattern of production and consumption. However, the arrangement draws
individuals into the pattern without regard for their private judgments about
that pattern. An arrangement that bypasses individual judgments to main-
tain a certain pattern might not, Hussain thinks, be consistent with an appro-
priate respect for human freedom.
In this book, Hussain argues that markets, much like states, are systems
of governance. Their justification must therefore meet similar standards of
moral scrutiny, despite the fact that their authoritarian structure is imper-
sonal. The book’s central contribution to the literature consists in fleshing
out and defending an account of market governance that is consistent with
respect for persons as free and equal.
In order to achieve this reconciliation, Hussain provides a philosophical
account of market institutions. Shared social institutions, he argues, define
a framework for how members of a political community should think about
and behave toward one another, consistent with the entitlement of each to
guide her activities in light of her own practical judgments. The market is
one of these shared institutions, so its rules must also be consistent with mu-
tual respect. This perspective “represents a fundamentally different way of
thinking about economic life, a way that rejects both the view of economic
actors as disconnected individuals in a state of nature (Lockeanism) and
the view of economic actors as mere vessels of preference orderings that are
inputs in a giant social welfare function (Utilitarianism).’’ Hussain argues
that we need to formulate a deeper framework for thinking about economic
x Editorial Preface
life that can displace the family of moral ideas underpinning neoliberalism
and finance capitalism. His book contributes to this wider project by working
out the implications of equal citizenship for economic life, such that appro-
priately regulated markets and workplaces elicit respect for one another as
free persons.
We would like to thank Waheed’s many friends and colleagues who pro-
vided comments on the manuscript: Chiara Cordelli, Peter Dietsch, Andrew
Franklin Hall, Joseph Heath, Louis- Philippe Hodgson, Martin O’Neill,
Hamish Russell, Eric Shoemaker, Gabriel Wollner, two anonymous reviewers
for Oxford University Press, our editor Peter Ohlin, and Waheed’s depart-
ment chairs, Martin Pickavé and Sonia Sedivy. We are especially grateful to
Tina Ghosh for her support throughout this process.
When I was in high school, I had a lot of menial jobs: cold calling people as a
telemarketer, prepping cars at a car dealership, delivering Chinese food, sel-
ling clothes in a jeans store, and lots of others. One thing all these jobs had
in common was a boss: someone told me what to do, and I almost always did
what I was told.
One job I had was at a lunch counter. The assistant manager was a par-
ticularly mean-spirited young woman who basically yelled at me and made
my life miserable. She tried to fire me a few times, but the manager kept me
on—probably because I accepted the abuse. In any event, leaving the lunch
counter one day, it dawned on me that almost everyone I knew had a boss.
My mother had a boss. My father had a boss. My aunts and uncles had bosses.
My neighbors, teachers, and friends had bosses. This seemed incredible to
me. How could we live in a society that cared about freedom, and yet almost
everyone spent most of their waking hours following orders? The whole
thing seemed so unbelievable; I couldn’t understand why people were going
along with it.
At the time, I didn’t have any clear ideas about how society worked. But
if you had asked me, I think my intuitive idea was something like this: I
answered to the assistant manager; the assistant manager answered to the
manager; the manager answered to the regional suit; the regional suit to the
head office suit; then there were a bunch of suits at the head office. The chain
of command basically went up and up until there was a group of people at the
top who told everyone what to do.
Fast-forward 10 years. After college, I went to work at an investment bank,
with some of the same questions about authority in the back of my mind. The
bank had large positions in several public-private ventures, mostly building
airports and other public works projects. Part of my job was to listen in on
conference calls where CEOs and CFOs would answer questions from other
banks, hedge funds, and other institutional investors.
Here I felt I was looking at things from above. The executives on these calls
were at the top of the hierarchies that I remembered from high school. They
gave the orders to the suits, who gave the orders to the managers, who gave
xii Author’s Preface
the orders to ordinary workers. The executives were giving orders, and ulti-
mately they answered to us, the banks, hedge funds, and other institutional
investors.
I realized quickly, however, that things were not so simple. The investment
bank where I worked was not itself outside of the system: the bank also had
shareholders, and our CEO and CFO had to get on conference calls every
quarter, answering questions from the bank’s institutional investors. Most
of these institutional investors were also like us: they too had institutional
investors with voting rights, and their executives too had to get on confer-
ence calls every quarter, answering questions from their investors. Even the
private equity funds that did not have shareholders had to answer, at some
level, to the investors who entrusted them with their money. The idea of a
military-style hierarchy with a chain of command leading up to the ultimate
decision-makers was too simple. Everybody had to answer to somebody: you
could be demanding answers from some people in one meeting, and then be
answering to some of the same people in the next. We were all enmeshed in
something more sophisticated than a straightforward hierarchy.
Fast-forward another 10 years. After graduate school, I took my first job as
an assistant professor at the Wharton Business School. There I taught classes
to MBAs and sophisticated business undergraduates, and I came to under-
stand the financial system at a higher level of abstraction. I could see that all
of the people in the system I had been a part of were under pressure to make
money. Every conference call was about money: shareholders wanted higher
share prices, bondholders wanted more secure repayment, private investors
wanted higher returns. Many people were making many demands, but really
there was one underlying thing that everyone was asking for.
The pressure to make money itself unfolded within a deeper structure.
This structure was more fundamental but more difficult to locate: the market.
Not the financial market, but the real market, where real people make real
things to sell to real people. All of the hierarchies and relations of authority
that I knew from before were aimed at making money in the market. And
in an important sense, these hierarches and relations of authority developed
and persisted precisely because they kept people and resources moving in
ways that were profitable.
The question that I started with was: How can we, as a society, be serious
about freedom and yet allow a situation to persist in which most people
spend most of their waking hours subject to the authority of another person?
How can we reconcile a commitment to freedom with a vast system of daily
Author’s Preface xiii
subjugation? Once you abandon the naïve view of a hierarchy and appreciate
how hierarchies can be part of a more impersonal system of social control,
the question changes form. The question now is: How can we as a society
reconcile our commitment to freedom with a social arrangement in which
the market, along with the hierarchies that develop within it, plays a funda-
mental role in directing our lives? I think that a reconciliation is possible,
but we have to think much more carefully about the relationship between
markets and freedom.
Acknowledgments
I would like to thank the many colleagues and friends who read parts of
the manuscript and gave me valuable feedback: Nicholas Vrousalis, Arthur
Ripstein, Joe Heath, Samuel Freeman, Tom Christiano, Christopher
McMahon, Patricia Mareno, David Ciepley, John Gardner, Hamish Stewart,
Rosa Cao, Nick Barber, Dan Butt, Sophia Reibetanz, and Jappa Pallikkathayil.
Tim Scanlon and Joshua Cohen supervised my dissertation at Harvard many
years ago, which was my first attempt to work out some of these ideas. They’ve
both had a lasting impact on my work.
The Ethics and Economics Network in Europe and the Toronto Area
Political Philosophy Workshop were important venues for working through
new material. Thanks especially to Sandrine Blanc, Rutger Claassen, Peter
Dietsch, Andrew Franklin-Hall, Kerah Gordon-Solmon, Louis Philippe
Hodgson, Nien-he Hsieh, Michael Kessler, Hasko von Kriegstein, Rahul
Kumar, Martin O’Neill, Julie Rose, Juri Viehoff, Andrew Walton, and Karl
Wilderquist. For logistical and financial support, my thanks to the University
Center for Human Values at Princeton, the Social Sciences and Humanities
Research Council of Canada, the Department of Philosophy at the University
of Toronto, and the Department of Legal Studies and Business Ethics at the
Wharton School. Thanks also to the many audiences that heard this material
at various talks and conferences.
Words can’t do justice to the people who kept my head above water, es-
pecially at the end of the writing process. Thanks to my doctors and nurses
at the Johns Hopkins Hospital, Sibley Memorial Hospital, and Georgetown
University Hospital. Thanks to my wonderful and caring friends: Steve
Naplan, Puspa Mohanty, William Bryant, Joanne Liou, Steve Smith, Wendy
Jastremski, Anthony Coleman, Paul and Laura Pirocanic, Rajib Chanda,
Kathie Legg- Chanda, and Chi Leng. Thanks to my family: Dr. Sajida
Hussain, Samira Hussain, Yusra Siddiquee, and my precious Afsi and Zayn.
And thanks most of all to Tina Ghosh, the truest friend a person could ever
hope for.
January 2021
Introduction
The market plays a central role in the lives of most people in the world today.
One reason is that millions of people have money invested in stocks, bonds,
houses, and other assets, so most everyone’s financial future depends signif-
icantly on what happens in the market. But more important than this is the
fact that the market represents one of our most important mechanisms of
governance: the market plays a pivotal role in shaping how we live our lives.
Figure 1 presents Yale economist Robert Shiller’s (2006) now famous chart
of housing prices over the past 100 years.
What stands out, of course, is the huge run-up of home prices in the early
2000s and the collapse in 2006. The housing bubble was obviously an im-
portant financial event, one whose consequences many people are still
Living with the Invisible Hand. Waheed Hussain Edited by Arthur Ripstein and Nicholas Vrousalis, Oxford University Press.
© Oxford University Press 2023. DOI: 10.1093/oso/9780197662236.003.0001
2 Living with the Invisible Hand
feeling today. But the housing bubble was also an important social phe-
nomenon: the bubble redirected huge stockpiles of raw materials from
other worthy projects to the project of building new homes; it turned large
stretches of uninhabited land into housing developments; it forced residents
out of older neighborhoods to make room for new high-rises and condos;
and it shifted thousands of workers from other fields into the housing sector.
A vast social effort to increase the housing stock in the United States was es-
sentially coordinated and directed by the market.
The market is, in effect, all around us, working all the time to guide us into
certain jobs, certain investments, and ultimately certain ways of life. And
when we see the market directing enormous resources and energies in ways
that are unjustifiable in light of the underlying facts—as was the case in the
housing bubble—we naturally question market governance; we may wonder
whether we have made the right decision, handing such an important form
of control over our lives to the market process.
judgment, and even if a certain pattern of activity is a good one, this pattern
should not be imposed on us in a way that bypasses our rational capacities.
D’s influence would be all the more objectionable if he were categorically op-
posed to explaining the reasons behind his decisions to us, the people whose
lives are shaped by these decisions.
Market governance has some of the same features as a benevolent dic-
tatorship. The market exercises a powerful and pervasive influence in our
lives, leading us into certain patterns of production activity and consump-
tion activity. But the market does not always involve us in the right way in
generating these patterns, and it does not explain the reasons behind the
patterns that emerge from the process. So even if the market tends to gen-
erate attractive patterns of production and consumption, critics are right to
question whether market governance is consistent with a proper respect for
the value of freedom.
Many people feel the tension between market governance and freedom most
viscerally in connection with business corporations. Corporate executives
exercise a power to determine how people live their lives, and the scope of
this power is often breathtaking. For example, along with a small cadre of
executives and board members, Darren Woods, the CEO of ExxonMobil,
commands the efforts of over 80,000 people employed by the company
worldwide and controls assets worth over US$340 billion. These assets in-
clude refineries in 21 countries, which together produce more than 3% of the
global supply of oil. Woods commands the efforts of 80,000 Exxon employees
at work, and the pricing strategies and climate change policies that he adopts
significantly shape the context in which everyone must act.
The power of corporations and corporate executives raises fundamental
questions about the relationship between corporations and freedom. But in
order to understand this relationship, it is important to situate corporations
and corporate executives in the context of a broader system of governance.
Woods has significant leeway to direct workers and to shape corporate
policies as he sees fit, particularly in less competitive markets. But Woods
is also subject to market discipline. If he chooses manufacturing strategies
and corporate policies that are significantly at odds with market imperatives,
ExxonMobil will lose market share. If he sticks to his guns, the company will
Another random document with
no related content on Scribd:
that a Great Heart? and is it to be wondered at that he was so
Popular?
An Australian wrote a book of his first visit to England. He was on
a horse omnibus sitting alongside the ’Bus Driver—suddenly he
pulled up the horses with a jerk! The Australian said to him, “What’s
up?” The Driver said, “Don’t you see?” pointing to a single mounted
policeman riding in front of a one-horse brougham. The Australian
said, “What is it?” The ’Bus Driver said, “It’s the King!” The Australian
said, “Where’s the escort?” thinking of cavalry and outriders and
equerries that he had read of! The ’Bus Driver turned and looked on
the Australian with a contemptuous regard and said: “Hescourt? ’e
wants no Hescourt! Nobody will touch a ’air of ’is ’ead!” The
Australian writes that fixed him up as regards King Edward!
His astounding memory served King Edward beautifully. Once he
beckoned me up to him, having finished his tour round the room, to
talk about something and I said: “Sir, the new Japanese Ambassador
is just behind you and I don’t believe your Majesty has spoken to His
Excellency.” The King instantly turned round and said these very
words straight off. I remember them exactly; he took my breath away:
“My dear Ambassador, do let me shake you by the hand and
congratulate you warmly on the splendid achievement yesterday of
your wonderful country in launching a ‘Dreadnought’ so completely
home-produced in every way, guns, armour engines, and steel, etc.
Kindly convey my admiration of this splendid achievement!”
I remembered then that in the yesterday’s paper there had been
an account of the great rejoicings in Japan on the launch of this
“Dreadnought.” The sequel is good. The Japanese Ambassador
sought me later in the evening and said: “Sir John! it was kind of you
to remind the King about the ‘Dreadnought’ as it enables me to send
a much coveted recognition to Japan in the King’s words!” I said: “My
dear Ambassador, I never said a word to the King, and I am truly and
heartily ashamed that as First Sea Lord it never occurred to me to
congratulate you on what the King has truly designated as a splendid
feat!”
I expect the Ambassador spent a young fortune in sending out a
telegram to Japan, and do you wonder that King Edward was a
Cosmopolitan Idol?
Another occasion to illustrate his saying out of his heart always
the right thing at the right time. I was journeying with His Majesty
from Biarritz to Toulon—I was alone with him in his railway carriage,
there was a railway time table before him. The train began
unexpectedly to slow down, and he said “Hulloa! why are we
stopping?” I said, “Perhaps, your Majesty, the engine wants a drink!”
so we stopped at a big station we were to have passed through—the
masses of people shouted not “Vive le Roi!” but “EDOUARD!” (As the
Governor of the Bank of France said to a friend of mine, “If he stays
in France much longer we shall have him as our King! When’s he
going?”). Sir Stanley Clarke I saw get out and fetch the Prefect and
the General in Command to the King—the King got out, said
something sweet to the Prefect and then turned to the General and
said with quite unaffected delight, “Oh, Mon Général! How delightful
to meet you again! how glorious was that splendid regiment of yours,
the —th Regiment of Infantry, which I inspected 20 years ago!” If I
ever saw Heaven in a man’s face, that General had it! He was
certainly a most splendid looking man and not to be forgotten, but yet
it was striking the King coming out with his immediate remembrance
of him. Well! that incident you may be sure went through the French
Army, and being a conscript nation, it went into every village of
France! Do you wonder he was loved in France? And yet the King
had the simplicity and even the weaknesses of a child, and
sometimes the petulance thereof. He gave me a lovely box of all
sizes of rosettes of the Legion of Honour adapted to each kind of
uniform coat, and he added, “Always wear this in France—I find it
aids me very much in getting about!” As if he wasn’t as well known in
all France as the Town Pump!
These are the sweet incidents that illustrate his nature!
He went to a lunch at Marienbad with some great swells who
were there who had invited His Majesty to meet a party of the King’s
friends from Carlsbad, where I was—I wasn’t asked—being an
arranged snub! A looker-on described the scene to me. The King
came in and said “How d’ye do” all round and then said to the Host,
“Where’s the Admiral?” My absence was apologised for—lunch was
ready and announced. The King said, “Excuse me a moment, I must
write him a letter to say how sorry I am at the oversight,” so he left
them stewing in their own juice, and His Majesty’s letter to me was
lovely—I’ve kept that one. He began by d——ing the pen and then
the blotting paper!—there were big blots and smudges! He came
back and gave the letter to my friend and said, “See he gets it directly
you get back to Carlsbad to-night.”
Once at a very dull lunch party given in his honour I sat next King
Edward and said to His Majesty: “Pretty dull, Sir, this—hadn’t I better
give them a song?” He was delighted! (he always did enjoy
everything!) so I recited (but, of course, I can’t repeat the delicious
Cockney tune in writing, so it loses all its aroma!). Two tramps had
been camping out (as was their usual custom) in Trafalgar Square.
They appear on the stage leaning against each other for support!—
too much beer! They look upwards at Nelson on his monument, and
in an inimitable and “beery” voice they each sing:
Postscript.
It suddenly occurred to me to send these notes on King Edward
to Lord Esher as he had peculiar opportunities of realizing King
Edward’s special qualities as a King, and realized how much there
was in him of the Tudor gift of being an autocrat and yet being loved
of the people!
Lord Esher to Lord Fisher
Roman Camp,
Callander, N.B.
July 30, 1918.
My dear Admiral,
The pages are wonderful, because they are you.
Not a square inch of pose about them.
Tears! that was the result of reading what you have to say
about King Edward. But do you recollect our talk with him on
board the Royal Yacht about France and Germany? Surely that
was worth recording.
I have kept many of his letters. They show him to have been
one of the “cleverest” of men. He had never depended upon
book-learning—why should he?
He read, not books—but men and women—and jolly good
reading too!
But he knew everything that it was requisite a King should
know—unless Learning prepares a man for action, it is not of
much value in this work-a-day world: and no Sovereign since the
Tudors was so brave and wise in action as this King!
Your anecdotes of him are splendid. Add to them all that you
can remember.
It was a pleasure to be scolded by the King for the sake of
the smile you subsequently got.
The most awful time I ever had with him was at Balmoral
when I refused to be Secretary of State for War. But I beat him on
that, thank God!
Ever yours,
My beloved Admiral,
Esher.
Letter from Lord Redesdale
1 Kensington Court, W.
May 24, 1915.
My Dear Fisher,
Do me the favour of accepting this little attempt to render
justice to the best friend you ever had. (King Edward the
Seventh.)
You and he were worthy of one another. Your old and very
affectionate friend,
Redesdale.
The more the German Admiralty looked into her qualities the
more convinced they became that they must follow suit, and the
more convinced they were that the whole of their existing Battle
Fleet was utterly useless because utterly wanting in gun power!
For instance, half of the whole German Battle Fleet is only about
equal to the English Armoured Cruisers.
The German Admiralty wrestled with the “Dreadnought”
problem for eighteen months, and did nothing. Why? Because it
meant their spending twelve and a half million sterling on
widening and deepening the Kiel Canal, and in dredging all their
harbours and all the approaches to their harbours, because if
they did not do so it would be no use building German
“Dreadnoughts” because they could not float! But there was
another reason never yet made public. It is this: Our Battleships
draw too much water to get close into the German Coast and
harbours (we have to build ours big to go all over the world with
great fuel endurance). But the German Admiralty is going, is
indeed obliged, to spend twelve and a half million sterling in
dredging so as to allow these existing ships of ours to go and
fight them in their own waters when before they could not do so.
It was, indeed, a Machiavellian interference of Providence on our
behalf that brought about the evolution of the “Dreadnought.”
To return to Mr. Reich. He makes the flesh of the British
public creep at page 78 et seq., by saying what the Germans are
going to do. He does not say what they have done and what we
have done.
Now this is the truth: England has seven “Dreadnoughts” and
three “Dreadnought” Battle Cruisers (which last three ships are,
in my opinion, far better than “Dreadnoughts”); total, ten
“Dreadnoughts” built and building, while Germany, in March last,
had not begun even one “Dreadnought.” It is doubtful if, even so
late as May last, a German “Dreadnought” had been
commenced. It will therefore be seen, from this one fact, what a
liar Mr. Reich is.
Again, at page 86, he makes out the Germans are stronger
than we are in torpedo craft, and states that England has only 24
fully commissioned Destroyers.
Again, what are the real facts? As stated in an Admiralty
official document, dated August 22nd, 1907: “We have 123
Destroyers and 40 Submarines. The Germans have 48
Destroyers and 1 Submarine.”
The whole of our Destroyers and Submarines are absolutely
efficient and ready for instant battle and are fully manned, except
a portion of the Destroyers, which have four-fifths of their crew on
board. Quite enough for instant service, and can be filled up
under an hour to full crew. And they are all of them constantly
being exercised.
There is one more piece of information I have to give:
Admiral Tirpitz, the German Minister of Marine, has just stated, in
a secret official document, that the English Navy is now four
times stronger than the German Navy. Yes, that is so, and we are
going to keep the British Navy at that strength, vide ten
“Dreadnoughts” built and building, and not one German
“Dreadnought” commenced last May. But we don’t want to
parade all this to the world at large. Also we might have
Parliamentary trouble. A hundred and fifty members of the House
of Commons have just prepared one of the best papers I have
ever read, shewing convincingly that we don’t want to lay down
any new ships at all because we are so strong. My answer is: We
can’t be too strong. Sir Charles Dilke, in the United Service
Magazine for this month, says: “Sir George Clarke points out that
the Navy is now, in October, 1907, stronger than at any previous
time in all History,” and he adds that Sir George Clarke, in
making this printed statement, makes it with the full knowledge of
all the secrets of the Government, because, as Secretary of the
Committee of Imperial Defence, he, Sir George Clarke, has
access to every bit of information that exists in regard to our own
and foreign Naval strength.
King Edward VII. (who died
May 6th, 1910) saying
Good-bye to Lord Fisher,
First Sea Lord, 1910.
(Lord Fisher 69, so also the
King.)
N.B.—The King thought the
1841 vintage very good.
Certainly good men were born
that year!
Nelson’s Copenhagen
In May, 1907, England had seven “Dreadnoughts” ready for
battle, and Germany had not one. And England had flotillas of
submarines peculiarly adapted to the shallower German waters when
Germany had none.
Even in 1908 Germany only had four submarines. At that time, in
the above letter I wrote to King Edward, I approached His Majesty,
and quoted certain apposite sayings of Mr. Pitt about dealing with the
probable enemy before he got too strong. It is admitted that it was not
quite a gentlemanly sort of thing for Nelson to go and destroy the
Danish Fleet at Copenhagen without notice, but “la raison du plus fort
est toujours la meilleure.”
Therefore, in view of the known steadfast German purpose, as
always unmitigatedly set forth by the German High Authority that it
was Germany’s set intention to make even England’s mighty Navy
hesitate at sea, it seemed to me simply a sagacious act on England’s
part to seize the German Fleet when it was so very easy of
accomplishment in the manner I sketched out to His Majesty, and
probably without bloodshed. But, alas! even the very whisper of it
excited exasperation against the supposed bellicose, but really
peaceful, First Sea Lord, and the project was damned. At that time,
Germany was peculiarly open to this “peaceful penetration.” A new
Kiel Canal, at the cost of many, many millions, had been rendered
necessary by the advent of the “Dreadnought”; but worse still for the
Germans, it was necessary for them to spend further vast millions in
deepening not only the approaches to the German Harbours, but the
Harbours themselves, to allow the German “Dreadnoughts,” when
built, to be able to float. In doing this, the Germans were thus forced
to arrange that thirty-three British pre-“Dreadnoughts” should be
capable of attacking their shores, which shallow water had previously
denied them. Such, therefore, was the time of stress and
unreadiness in Germany that made it peculiarly timely to repeat
Nelson’s Copenhagen. Alas! we had no Pitt, no Bismarck, no
Gambetta! And consequently came those terrible years of War, with
millions massacred and maimed and many millions more of their kith
and kin with piercèd hearts and bereft of all that was mortal for their
joy.
Yes! King Edward’s hands were held steady till the setting of his sun
on May 6th, 1910, and so did he “discomfit his enemies by their aid.”
For over forty years Lord Knollys played that great part in great
affairs which will occupy his Biographer with Admiration of his Self-
Effacement and unerring Judgment. Myself I owe him gratitude
inexpressible.
For myself, those Great Three ever live in my heart and ever will.
There are no such that I know of who are left to us to rise in their
place.
CHAPTER II
“THE MOON SWAYS OCEANS AND
PROVOKES THE HOUND.”
The hound keeps baying at the moon but gets no answer from
her, and she continues silently her mighty influence in causing the
tides of the earth, such a mighty influence as I have seen in the Bay
of Fundy, and on the coast of Arcadia where the tide rises some 40
feet—you see it like a high wall rolling in towards you on the beach!
It exalts one, and the base things of earth vanish from one’s
thoughts. So also may the contents of this book be like-minded by a
mighty silence against baying hounds! I hope to name no living
name except for praise, and even against envy I hope I may be
silent. Envy caused the first murder. It was the biggest and nastiest
of all Cæsar’s wounds: