Hirst wrote to the new Liberal Prime Minister, Sir Henry Campbell-Bannerman on 29 December 1905, claiming that depression in trade and social distress could be explained by over-taxation and wasteful government expenditure on armaments. The outcome of this was "dear money, lowered credit, less enterprise in business and manufacturers, reduced home demand and therefore reduced output to unemployment". He told Campbell-Bannerman that "to restore credit and to lower taxes is the first great remedy for unemployment and the first great mission of the Liberal government". Hirst wrote again to Campbell-Bannerman on 9 November 1907, claiming that his government would only regain popularity by pursuing the traditional policy of retrenchment in expenditure.