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112] ENGLISH HISTOEY. [may

admitted, however, that if imperialism meant a policy which is the wisest and best for the empire, he and all others were in that sense imperialists; and he went on to describe the wise and sane imperialism which had made Britain great. With this he contrasted " the policy of expansion/' describing it as the policy of inflationists, who thought the more paper money they issued the richer they were. In his judgment it was wiser to build than to boom an empire, but he did not attempt to show that Lord Salisbury had in any way laid himself open to the reproach of doing the latter, although he was surrounded by less scrupulous and less far-seeing colleagues.

The bye-election at Southport occurring at this juncture showed that in Lancashire at all events the Jingo feeling was not strong enough to recover the seat which Sir H. Naylor-Leyland a year before had snatched from the Conservatives. On the present occasion the Liberal candidate, Sir George Pilkington, increased the Liberal majority from 272 to 535 upon an in- increased poll on both sides. Sir G. Pilkington had the advantage of being universally popular in the neighbourhood, and had formerly sat for the constituency. The contest was chiefly interesting as being the first which had occurred since the Eitualist question had Deen brought into the field of politics. Several Eitualists, considering that Mr. Balfour had shown them scant favour in his speech on the Clergy Discipline Bill, abstained, while at the same time the extreme Protestants, de- siring to remind the Government of their power, also declined to support Mr. C. B. Balfour, the Ministerial candidate.

The meeting of President Kruger and Sir Alfred Milner at Bloemfontein (May 31), coinciding with the hopeful proceedings of the Peace Congress at the Hague, led many to hope that an understanding would be reached between the Transvaal and Great Britain without the sacrifice of independence on the one part or of the rights of British immigrants on the other. Although the chief point in dispute was that of the franchise, which one member of the Transvaal had described "as the only weapon they could use against their enemies," and therefore important to keep in the hands of its actual possessors, yet it was generally admitted that there were other grievances which needed redress. President Kruger himself at the outset of the conference was prepared to admit this, and declared himself ready to discuss all subjects except the independence of the republic.

The hopes generally entertained at home and abroad that these negotiations might pave the way to a better understanding between the Boers and the Outlanders of the Transvaal, and between the British and Dutch elements throughout South Africa, were disappointed. No bridge could be found by which either negotiator could retire from his standpoint, — President Kruger's insistence that all British differences with the Transvaal should be referred to the arbitration of a foreign Power, and Sir

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