To this Sir Henry Campbell-Bannerman replied bluntly by declaring that the story was from beginning to end a lie. Mr. Rhodes then wrote a letter which appeared in the Spectator of October 12, 1901:—
Sir,—I have been appealed to upon the controversy that has arisen in your paper between a correspondent signing himself “C. B.” and Sir Henry Campbell-Bannerman. I may say that the letter of “C. B.” was written without my knowledge or approval, still, as his statement has been characterised as “a lie,” it is my duty to send you the facts.
I made the acquaintance of Mr. Schnadhorst when he was visiting the Cape for his health early in 1890. I saw a great deal of him in Kimberley, and found that his political thoughts were in the direction of what would now be called Liberal Imperialism; and his views as to Empire were no doubt enormously strengthened by his visit to Africa.
I told him that my ideas were Liberalism plus Empire, and I added that I thought the Liberal party was ruining itself by its Little England policy, my thoughts being then on the point of their desire to scuttle out of Egypt.
I subsequently met Mr. Schnadhorst in London, and he asked me whether I would be willing to subscribe to the party funds. I said I was prepared to do so provided that the policy was not to scuttle out of Egypt, and that in the event of a Home Rule Bill being brought forward provision should be made for the retention of Irish Members at Westminster, as I considered the first Home Rule Bill of Mr. Gladstone’s simply placed Ireland in a subject position, taxed for our Imperial purposes without a voice in the expenditure; and it was hopeless ever to expect