In April, 1908, Sir Henry Campbell-Bannerman resigned the premiership and was succeeded by Mr. Asquith and a Liberal Cabinet, in which David Lloyd-George held the position of Chancellor of the Exchequer, and soon began to push the most radical financial and social measures which have ever been advanced in England. In May, 1908, Great Britain, together with France, Russia, and Italy, withdrew her troops from the island of Crete, and in October joined France and Russia in preventing the outbreak of war in the Balkans. After the Franco-German agreement in regard to Morocco had been signed in February, 1909, a conference was held between the German Chancellor, Prince von Bülow, and Sir Charles Hardinge, with the result that the German-English relations, which had been far from cordial for a number of years, were adjusted. The refusal of the House of Lords to pass Lloyd-George's budget, containing revolutionary provisions for taxation, resulted in the dissolution of Parliament by King Edward in February, 1910. The election of the new Parliament clearly showed that the country was in favor of the Liberal Government, which shortly after the opening of the new Parliament showed its disapproval of the rejection of its budget by the House of Lords by the introduction of a Parliament Reform Bill. The budget was passed by the Upper House in April, 1910, but not until after the Commons had passed a resolution limiting greatly the veto power of the House of Lords. King Edward VII died on May 6, 1910, after a short illness and was succeeded by his son as George V.
Just how much King Edward's personal influence was responsible for the shaping of his country's foreign politics during his reign it is hard to determine. Much has been written about this question, and more undoubtedly will be said in the years to come. The fact remains, however, that he had a strong dislike of his nephew, the German Emperor, and an almost equally strong aversion of German customs and ideals. On the other hand he had long been an admirer of French culture and life, and he was a frequent visitor in the French capital. The rapid growth of the Franco-British friendships undoubtedly was helped along by him to his best ability. Naturally he was influenced in this matter, not only by personal prejudices, but chiefly by a conviction that his country's interests were endangered by Germany's wonderful growth, and that they could be preserved and improved more by strong alliances with other great powers than by reaching an understanding with Germany herself.
The latter half of 1910 witnessed again violent parliamentary dissensions in connection with the attempted reduction of the powers of the House of Lords, resulting finally in another general election in November, 1910, which gave to the Government a majority of 126. That month also brought an announcement that English banks had signed an agreement with German and French financial institutions to join an American syndicate in advancing $50,000,000 to China, one of the few instances of a joint financial undertaking by German and British interests.
The greater part of 1911 was taken up with the settlement of the difficulties between the Commons and the Lords, resulting finally in the surrender of the latter and the adoption by them of the Commons' bill depriving the Upper House of much of its former power. Hardly had this troublesome question been adjusted when the question of Home Rule for Ireland caused new difficulties of the severest nature. So strong was the opposition of one part of Ireland to Home Rule, and so strong the demand of the other part for it, that the dissensions gradually reached the point where open revolution seemed to be imminent. In July, 1911, the Anglo-Japanese alliance was renewed for a period of ten years. During the Franco-German dispute about Morocco, which threatened to disrupt the peace of Europe, Great Britain's influence was thrown on the side of France, a fact which, of course, resulted in increased bitterness against Great Britain on the part of Germany. In November the king and queen left England on a trip to India in order to be crowned as Emperor and Empress of India. In common with other countries, England experienced in 1912 a great deal of social unrest, which found expression in strikes as well as in extremely radical legislation. The Irish question and the agitation for woman suffrage continued to occupy public attention in 1912. In August of that year, 1912, Great Britain joined with France and Germany in accepting Austria-Hungary's invitation to confer on the Balkan situation, which was rapidly assuming grave importance. In conjunction with these powers, as well as Italy and Russia, it maintained a strict neutrality during the Balkan Wars of 1912 and 1913, just as it had done during the Turko-Italian War of 1911 and 1912. At England's invitation the ambassadors of the powers met in London in December, 1912, to discuss the Balkan question while the representatives of the Balkan States and Turkey conferred concerning peace.
Almost coincident with Germany's increased efforts to upbuild its navy, a change had been made in the incumbency of the admiralty. One of the younger and most active members of the Liberal party, Winston Churchill, a member of the House of Marlborough, became First Lord. He created a sensation by a speech made in the Commons in March, 1913, suggesting that Germany and Great Britain should agree to stop naval construction for a period of a year. Although this proposal received a great deal of attention, it had no tangible result, and the race for increased armament continued. Neither 1913 nor 1914 brought about any diminution in the difficulties regarding the Irish question, in fact rather the opposite, and the Government even went so far as to prohibit the importation of arms into Ireland. Armed resistance against Home Rule on the part of Ulster seemed to be unavoidable. Agitation in England and Ireland over Home Rule had become so violent that the murder of the heir to the Austro-Hungarian throne in June, 1914, did not arouse as much interest and attention in England as it would have done otherwise. Revolution in Ireland was a matter that England expected at that particular moment, rather than a general European war. Not until the British fleet, assembled at Portsmouth for maneuvers, left there on July 29, 1914, under sealed orders, was the country aroused to the possibility of a world war, which had been considered for so many years impossible by some and inevitable by others, and which was now about to break out.
CHAPTER VI
ITALY
In the middle of the nineteenth century the position of Italy was somewhat analogous to that of Germany. It consisted of a number of separate states, and, in spite of the fact that all of these states were inhabited by people speaking the same language and having the same ideals and customs, they seemed to be unable to combine. One of the results of this was the fact that the country adjoining on the north, Austria, was meddling continually with Italian affairs and attempting to gain a lasting influence over them. There were too many racial differences, however, between the two countries to permit an arrangement of this nature to continue for any length of time without causing serious conflicts. Statesmen in the various Italian states finally became convinced that it would be only a question of time before some foreign nation would succeed in dominating them unless they would be able to consolidate and show a united front to any and all outsiders.
The difficulties in the way of Italian unification were manifold. For our purposes, however, we are not interested in them or in the means by which they were overcome beyond the fact that they finally were overcome, and that as early as 1859 a large number of the different Italian states had been united with the assistance of Napoleon III under the rule of Victor Emmanuel II, originally King of Sardinia and Piedmont. In that year, however, after Austria had been driven out of Lombardy through the combined efforts of Italian and French troops, Napoleon III suddenly arrived at an understanding with Francis Joseph, and peace was concluded between France and Austria. This left in the hands of the Austrians still an important part of northern Italy known as the Quadrilateral. Rome, too, and a considerable territory surrounding it, known as the Papal State, was not included in the newly formed kingdom of Italy, the pope refusing to give up his temporal powers and Napoleon III supporting him in that refusal to the extent of maintaining French troops in Rome.
The Austro-Prussian War of 1866, as we have already shown, had important results for Italy. For previous to its breaking out Prussia had concluded a treaty with Italy, and when hostilities began between Austria and Prussia, Italy immediately attacked her old enemy. When peace