"In the realm of practical politics, two things must happen - both of which are likely. There must be one more General Election to disillusion Labour optimists as to the measure of their political strength, standing by themselves. But equally on our side there must be a certain change.

The Liberal Party is divided between those who, if the choice be forced upon them, would vote Conservative, and those who, in the same circumstances, would vote Labour. Historically, and on grounds of past service, each section has an equal claim to call itself Liberal. Nevertheless, I think that it would be for the health of the party if all those who believe, with Mr. Winston Churchill and Sir Alfred Mond, that the coming political struggle is best described as Capitalism versus Socialism, and, thinking in these terms, mean to die in the last ditch for Capitalism, were to leave us.

The brains and character of the Conservative Party have always been recruited from the Liberals, and we must not grudge them the excellent material with which, in accordance with our historic mission, we are now preserving them from intellectual starvation. It is much better that the Conservative Party should be run by honest and intelligent ex-Liberals, who have grown too old and tough for us, than by Die-Hards. Possibly the Liberal Party cannot serve the State in any better way than by supplying Conservative Governments with Cabinets, and Labour Governments with ideas," - J.M. Keynes, in a speech given to the Manchester Reform Club in February 1926.