FOOTNOTES:

The materials necessary for a sound judgment of facts are not found in the success or failure of undertakings; exact knowledge of the situation that has provoked them forms no inconsiderable element of history.—Metternich.

England was unconsciously on the eve of a violent break in the peace that had been her fortunate lot for nearly forty years. To the situation that preceded this signal event, a judicious reader may well give his attention. Some of the particulars may seem trivial. In countries governed by party, what those out of the actualities of the fray reckon trivial often count for much, and in the life of a man destined to be a conspicuous party leader, to pass them by would be to leave out real influences.

The first experiment in providing the country with a tory government had failed. That alliance between whig and Peelite which Lord John the year before had been unable to effect, had become imperative, and at least a second experiment was to be tried. The initial question was who should be head of the new government. In August, Lord Aberdeen had written to Mr. Gladstone in anticipation of the Derbyite defeat: 'If high character and ability only were required,youwould be the person; but I am aware that for the present at least this would not be practicable. Whether it would be possible for Newcastle or me to undertake the concern is more than I can say.' Other good reasons apart,it is easy to see that Mr. Gladstone's attitude in things ecclesiastical put him out of court, and though he had made a conspicuous mark not only, as Lord Aberdeen said, by character and ability but by liberality of view especially in the region of colonial reform, still he had as yet had no good opportunity for showing an independent capacity for handling great affairs.

Not any less impossible was Lord John. Shortly before the occasion arose, a whig intimate told him plainly that reconstruction on the basis of his old government was out of the question. 'Lord John's answer was a frank acceptance of that opinion; and he was understood to say that the composition of the next government must be mainly from the ranks of the Peelites; he evidently looked forward to being a member of it, but not the head. When various persons were named as possible heads, Lord Aberdeen was distinctly approved, Graham was distinctly rejected, Newcastle was mentioned without any distinct opinion expressed. We [Aberdeen and Gladstone] were both alike at a loss to know whether Lord John had changed his mind, or had all along since his resignation been acting with this view. All his proceedings certainly seem to require an opposite construction, and to contemplate his own leadership.'[278]

Lord Palmerston was determined not to serve again under a minister who had with his own hand turned him out of office, and of whose unfitness for the first post he was at the moment profoundly convinced. He told a Peelite friend that Lord John's love of popularity would always lead him into scrapes, and that his way of suddenly announcing new policies (Durham letter and Edinburgh letter) without consulting colleagues, could not be acquiesced in. Besides the hostility of Palmerston and his friends, any government with the writer of the Durham letter at its head must have the hostility of the Irishmen to encounter. The liberal attitude of the Peelites on the still smouldering question of papal aggression gave Aberdeen a hold on the Irish such as nobody else could have.

A HARASSED WEEK

Another man of great eminence in the whig party mighthave taken the helm, but Lord Lansdowne was seventy-two, and was supposed to have formally retired from office for ever. The leader of the Peelites visited the patrician whig at Lansdowne House, and each begged the other to undertake the uncoveted post. Lord Aberdeen gave a slow assent. Previously understanding from Lord John that he would join, Aberdeen accepted the Queen's commission to form a government. He had a harassed week. At first the sun shone. 'Lord John consents,' wrote Mr. Gladstone to his wife at Hawarden, 'and has behaved very well. Palmerston refuses, which is a serious blow. To-morrow I think we shall get to detailed arrangements, about which I do not expect extraordinary difficulty. But I suppose Palmerston is looking to become the leader of a Derby opposition; and without him, or rather with him between us and the conservatives, I cannot but say the game will be a very difficult one to play. It is uncertain whether I shall be chancellor of the exchequer or secretary for the colonies; one of the two I think certainly; and the exchequer will certainly come to Graham or me.'

Within a few hours angry squalls all but capsized the boat. Lord John at first had sought consolation in an orthodox historical parallel—the case of Mr. Fox, though at the head of the largest party, leading the Commons under Lord Grenville as head of the government. Why should he, then, refuse a position that Fox had accepted? But friends, often in his case the most mischievous of advisers, reminded him what sort of place he would hold in a cabinet in which the chief posts were filled by men not of his own party. Lord John himself thought, from memories of Bishop Hampden and other ecclesiastical proceedings, that Mr. Gladstone would be his sharpest opponent. Then as the days passed, he found deposition from first place to second more bitter than he had expected. Historic and literary consolation can seldom be a sure sedative against the stings of political ambition. He changed his mind every twelve hours, and made infinite difficulties. When these were with much travail appeased, difficulties were made on behalf of others. The sacred caste and their adherents were up in arms, and abitter cry arose that all the good things were going to the Peelites, only the leavings to the whigs. Lord John doubtless remembered what Fox had said when the ministry of All the Talents was made,—'We are three in a bed.' Disraeli now remarked sardonically, 'The cake is too small.' To realise the scramble, the reader may think of the venerable carp that date from Henry iv. and Sully, struggling for bread in the fish-ponds of the palace of Fontainebleau. The whigs of this time were men of intellectual refinement; they had a genuine regard for good government, and a decent faith in reform; but when we chide the selfishness of machine politicians hunting office in modern democracy, let us console ourselves by recalling the rapacity of our oligarchies. 'It is melancholy,' muses Sir James Graham this Christmas in his journal, 'to see how little fitness for office is regarded on all sides, and how much the public employments are treated as booty to be divided among successful combatants.'

From that point of view, the whig case was strong. 'Of 330 members of the House of Commons,' wrote Lord John to Aberdeen, '270 are whig and radical, thirty are Irish brigade, thirty are Peelites. To this party of thirty you propose to give seven seats in cabinet, to the whigs and radicals five, to Lord Palmerston one.' In the end there were six whigs, as many Peelites, and one radical. The case of four important offices out of the cabinet was just as heartrending: three were to go to the thirty Peelites, and one to the two hundred and seventy just persons. 'I am afraid,' cried Lord John, 'that the liberal party will never stand this, and that the storm will overwhelm me.' Whig pride was deeply revolted at subjection to a prime minister whom in their drawing-rooms they mocked as an old tory. In the Aberdeen cabinet, says Mr. Gladstone, 'it may be thought that the whigs, whose party was to supply five-sixths or seven-eighths of our supporters, had less than their due share of power. It should, however, be borne in mind that they had at this juncture in some degree the character of an used up, and so far a discredited, party. Without doubt they were sufferers from their ill-conceived and mischievous Ecclesiastical Titles Act. Whereas we, thePeelites had been for six and a half years out of office, and had upon us the gloss of freshness.'

CHANCELLOR OF THE EXCHEQUER

Lord Palmerston refused to join the coalition, on the honourable ground that for many years he and Aberdeen had stood at the antipodes to one another in the momentous department of foreign affairs. In fact he looked in another direction. If the Aberdeen-Russell coalition broke down, either before they began the journey or very soon after, Lord Derby might come back with a reconstructed team, with Palmerston leading in the Commons a centre party that should include the Peelites. He was believed to have something of this kind in view when he consented to move the amendment brought to him by Gladstone and Herbert in November, and he was bitterly disappointed at the new alliance of that eminent pair with Lord John. With the tories he was on excellent terms. Pall Mall was alive with tales of the anger and disgust of the Derbyites against Mr. Disraeli, who had caused them first to throw over their principles and then to lose their places. The county constituencies and many conservative boroughs were truly reported to be sick of the man who had promised marvels as 'looming in the future,' and then like a bad jockey had brought the horse upon its knees. Speculative minds cannot but be tempted to muse upon the difference that the supersession by Lord Palmerston of this extraordinary genius at that moment might have made, both to the career of Disraeli himself, and to the nation of which he one day became for a space the supreme ruler. Cobden and Bright let it be understood that they were not candidates for office. 'Our day has not come yet,' Bright said to Graham, and the representative of the radicals in the cabinet was Sir William Molesworth. In their newspaper the radicals wrote rather stiffly and jealously. In the end Lord Palmerston changed his mind and joined.

It was three days before the post of the exchequer was filled. Mr. Gladstone in his daily letter to Hawarden writes: 'At headquarters I understand they say, “Mr. G. destroyed the budget, so he ought to make a new one.” However we are trying to press Graham into that service.' The next day itwas settled. From Osborne a letter had come to Lord Aberdeen: 'The Queen hopes it may be possible to give the chancellorship of the exchequer to Mr. Gladstone, and to secure the continuance of Lord St. Leonards as chancellor.'[279]Notwithstanding the royal wish, 'we pressed it,' says Mr. Gladstone, 'on Graham, but he refused point blank.' Graham, as we know, was the best economist in the administration of Peel, and Mr. Gladstone's frequent references to him in later times on points of pure finance show the value set upon his capacity in this department. His constitutional dislike of high responsibility perhaps intervened. Mr. Gladstone himself would cheerfully have returned to the colonial office, but the whigs suspected the excesses of his colonial liberalism, and felt sure that he would sow the tares of anglicanism in these virgin fields. So before Christmas day came, Mr. Gladstone accepted what was soon in influence the second post in the government,[280]and became chancellor of the exchequer.

Say what they would, the parliamentary majority was unstable as water. His own analysis of the House of Commons gave 270 British liberals, not very compact, and the radical wing of them certain to make occasions of combination against the government, especially in finance. The only other party avowing themselves general supporters of the government were the forty Peelites—for at that figure he estimated them. The ministry, therefore, were in a minority, and a portion even of that minority not always to be depended on. The remainder of the House he divided into forty Irish brigaders, bent on mischief; from fifty to eighty conservatives, not likely to join in any factious vote, and not ill-disposed to the government, but not to be counted on either for attendance or confidence; finally, the Derby opposition, from 200 to 250, ready to follow Mr. Disraeli into any combination for turning out the government. 'It thus appears, if we strike out the fifty conservatives faintlyfavourable, that we have a government with 310 supporters, liable on occasions, which frequently arise, to heavy deductions; with an opposition of 290 (Derbyites and brigaders), most of them ready to go all lengths. Such a government cannot be said to possess the confidence of the House of Commons in the full constitutional sense.'

EARLY POSITION OF THE MINISTRY

The general course seemed smooth. Palmerston had gone to the harmless department of home affairs. The international airs were still. But a cabinet finally composed of six Peelites, six whigs, and a radical, was evidently open to countless internal hazards. 'We shall all look strangely at each other,' one of them said, 'when we first meet in cabinet.' Graham describes them as a powerful team that would need good driving. 'There are some odd tempers and queer ways among them; but on the whole they are gentlemen, and they have a perfect gentleman at their head, who is honest and direct, and who will not brook insincerity in others.' The head of the new government described it to a friend as 'a great experiment, hitherto unattempted, and of which the success must be considered doubtful, but in the meantime the public had regarded it with singular favour.' To the King of the Belgians, Aberdeen wrote: 'England will occupy her true position in Europe as the constant advocate of moderation and peace'; and to Guizot, that 'the position which we desired so see England occupy among the nations of Europe, was to act the part of a moderator, and by reconciling differences and removing misunderstandings to preserve harmony and peace.'

I have seen no more concise analysis of the early position of the coalition government than that by one of the ablest and most experienced members of the whig party, not himself a candidate for office:—

'It is strong,' Sir Francis Baring wrote to his son, 'in personal talent; none that I can remember stronger, though the head of the government is untried. It is strong in one point of view: as to public feeling. The country, I believe, wanted a moderate liberal government, and a fusion of liberal conservatives and moderate liberals. It is weak in the feelings of the componentparts: Palmerston is degraded, Gladstone will struggle for power, Lord John cannot be comfortable. It is weak in the discordant antecedents of the cabinet; they must all make some sacrifices and work uncomfortably. It is weak in the support. I do not mean the numbers, but the class of supporters. The Peelites are forty; they will have the liberals on the one side and the conservatives on the other. The whigs of the cabinet will be anxious to satisfy the former; the Peelites (Gladstone especially) the other. They are weak in their church views. The protestants look on those who voted against the Aggression bill with distrust; the evangelicals on Gladstone and S. Herbert with dislike. I don't pretend to be a prophet, but it is always well to put down what you expect and to compare these expectations with results. My conjecture is that Gladstone will, before long, leave the government or that he will break it up.'[281]

Long afterwards Mr. Gladstone himself said this of the coalition:—

I must say of this cabinet of Lord Aberdeen's that in its deliberations it never exhibited the marks of its dual origin. Sir W. Molesworth, its radical member, seemed to be practically rather nearer in colour to the Peelites than to the whigs. There were some few idiosyncrasies without doubt. Lord Palmerston, who was home secretary, had in him some tendencies which might have been troublesome, but for a long time were not so. It is, for instance, a complete error to suppose that he asked the cabinet to treat the occupation of the Principalities as acasus belli. Lord Russell shook the position of Lord Aberdeen by action most capricious and unhappy. But with the general course of affairs this had no connection; and even in the complex and tortuous movements of the Eastern negotiations, the cabinet never fell into two camps. That question and the war were fatal to it. In itself I hardly ever saw a cabinet with greater promise of endurance.

OPPOSITION AT OXFORD

Acceptance of office vacated the Oxford seat, and the day after Christmas a thunderbolt fell upon the new chancellorof the exchequer from his friend, the militant archdeacon of Taunton. 'I wish to use few words,' Denison wrote, 'where every word I write is so bitterly distressing to me, and must be little less so, I cannot doubt, to yourself and to many others whom I respect and love. I have to state to you, as one of your constituents, that from this time I can place no confidence in you as representative of the university of Oxford, or as a public man.' Mr. Gladstone's protestations that church patronage would be as safe in Lord Aberdeen's hands as in Lord Derby's; that his own past history dispensed with the necessity of producing other assurances of his own fidelity; that his assumption of office could not shake it—all these were vain in face of the staring and flagrant fact that he would henceforth be the intimate and partner in council of Lord John Russell, the latitudinarian, the erastian, the appropriationist, the despoiler; and worse still, of Molesworth, sometimes denounced as a Socinian, sometimes as editor of the atheist Hobbes, but in either case no fit person to dispense the church patronage of the duchy of Lancaster. Only a degree less shocking was the thought of the power of filling bishoprics and deaneries by a prime minister himself a presbyterian. No guarantee that the member for Oxford might have taken against aggression upon the church, or for the concession of her just claims, was worth a feather when weighed against the mere act of a coalition so deadly as this.

It was an awkward fact for Mr. Gladstone's canvassers that Lord Derby had stated that his defeat was the result of a concert or combination between the Peelites and other political parties. Mr. Gladstone himself saw no reason why this should cause much soreness among his Oxford supporters. 'No doubt,' he said, 'they will remember that I avowed before and during the last election a wish to find the policy and measures of the government such as would justify me in giving them my support. That wish I sincerely entertained. But the main question was whether the concert or combination alleged to have taken place for the purpose of ejecting Lord Derby's government from office was fact or fiction. I have not the slightest hesitation instating to you that it is a fiction. Evidence for the only presumption in its favour was this—that we voted against the budget of Mr. Disraeli in strict conformity with every principle of finance we had professed through our political lives and with the policy of former finance ministers from the time of Mr. Pitt, against the “new principles” and “new policies” which Mr. Disraeli declared at Aylesbury his intention to submit to the House of Commons—a pledge which I admit that he completely redeemed.'[282]

All this was true enough, but what people saw was that the first fruits of the victory were a coalition with the whigs, who by voting with Villiers had from the first shown their predetermination against ministers. As Northcote humorously said, Mary Stuart could never get over the presumption which her marriage with Bothwell immediately raised as to the nature of her previous connection with him. It is hard to deny that, as the world goes, the Oxford tories clerical and lay might think they had a case. Lord Derby was the tory minister, and Mr. Gladstone had been a chief instrument in turning him out. That was the one salient fact, and the political flock is often apt to see a thing with a more single eye than their shepherds.

A candidate was found in Mr. Perceval, son of the tory prime minister who had met a tragic death forty years before. The country clergy were plied with instigations and solicitations, public and private. No absurdity was too monstrous to set afloat. Mr. Gladstone had seceded to the episcopal church of Scotland. He had long ceased to be a communicant. He was on close and intimate terms with Cardinal Wiseman. He had incited the pope to persecute protestants at Florence. In this vein a flight of angry articles and circulars descended on every parsonage where there was an Oxford master of arts with his name still on the university books. At the beginning the enemy by a rush were in a majority, but they were speedily beaten out of it. At the end of six days, in spite of frenzied efforts, no more than 1330 votes out of a constituency of 3600 had been recorded. Still the indomitable men insisted on the legal right of keeping thepoll open for fifteen days, and learned persons even gloomily hinted that the time might be extended to forty days. In the end (Jan. 20) Mr. Gladstone had 1022 votes against Perceval's 898, or a narrow majority of 124. The tory press justly consoled themselves by calculating that such a majority was only six per cent. of the votes polled, but they were very angry with the failure of the protestant electors in doing their patriotic duty against 'the pro-romanist candidate.' The organ of the Peelites, on the other hand, was delighted at the first verdict thus gained from the most influential constituency in Great Britain, in favour of the new experiment of conservative-liberalism and wise and rational progress. Graham said, and truly, that 'though Gladstone's defeat at that precise juncture would have been a misfortune, yet for his own sake hereafter, emancipation from the thraldom of that constituency would be a blessing. It is a millstone under which even Peel would have sunk.'

Was Mr. Gladstone right in his early notion of himself as a slow moving mind? Would it be true to say that, compared with Pitt, for instance, he ripened slowly? Or can we accurately describe him as having in any department of life, thought, knowledge, feeling, been precocious? Perhaps not. To speak of slowness in a man of such magical rapidity of intellectual apprehension would be indeed a paradox, but we have seen already how when he is walking in the middle path of his years, there is a sense in which he was slow in character and motion. Slowness explains some qualities in his literary and oratorical form, which was often, and especially up to our present period, vague, ambiguous, and obscure. The careless and the uncharitable set all down to sophistry. Better observers perceived that his seeming mystifications were in fact the result of a really embarrassed judgment. They pointed out that where the way was clear, as in free trade, colonial government, dissenters' chapels, Jewish disabilities, catholic bishoprics, nobody could run more straight, at higher speed, or with more powerful stride. They began to say that in spite of Russells, Palmerstons, Grahams, Mr. Gladstone, after all, was the least unlikely of them 'to turnout a thoroughgoing man of the people.' These anticipations of democracy there is no sign that Mr. Gladstone himself, in the smallest degree, shared. The newspapers, meanwhile, were all but unanimous in declaring that 'if experience, talent, industry, and virtue, are the attributes required for the government of this empire,' then the coalition government would be one of the best that England had ever seen.

III

Mr. Gladstone's dislike and distrust of the intrusion not only of the rude secular arm, but of anything temporal into the sphere of spiritual things, had been marked enough in the old days of battle at Oxford between the tractarians and the heads, though it was less manifest in the Gorham case. In 1853 he found occasion for an honourable exhibition of the same strong feeling. Maurice had got into trouble with the authorities at King's College by essays in which he was taken to hold that the eternity of the future torment of the wicked is a superstition not warranted by the Thirty-nine Articles. A movement followed in the council of the college to oust Maurice from his professorial chair. Mr. Gladstone took great pains to avert the stroke, and here is the story as he told it to his brother-in-law, Lord Lyttelton:—

To Lord Lyttelton.

Oct. 29, 1853.—I remained in town last Thursday in order to attend the council of K.C., and as far as I could, to see fair play. I was afraid of a very precipitous proceeding, and I regret to say my fears have been verified. The motion carried was the Bishop of London's, but I am bound to say he was quite willing to have waived it for another course, and the proceeding is due to a body of laymen chiefly lords. The motion carried is to the effect that the statements on certain points contained in Maurice's last essay are of a dangerous character, and that his connection with the theology of the school ought not to continue. I moved as an amendment that the bishop be requested to appoint competent theologians who should personally examine how far the statementsof Mr. Maurice were conformable to or at variance with the three creeds and the formularies of the church of England, and should make a report upon them, and that the bishop should be requested to communicate with the council. For myself I find in different parts of what Maurice has written things that I cannot, and I am quite certain the council had not been able to, reconcile. This consideration alone seemed to me to show that they were not in a condition to proceed with a definite judgment. I do not feel sufficiently certain what his view as a whole may be, even if I were otherwise competent to judge whether it is within or beyond the latitude allowed by the church in this matter. And independently of all this I thought that even decency demanded of the council, acting perforce in a judicial capacity, that they should let the accused person know in the most distinct terms forwhathe was dismissed, and should show that they had dismissed him, if at all, only after using greater pains to ascertain that his opinions were in real contrariety to some article of the faith. I also cherished the hope, founded on certain parts of what he has said, that his friends might be able in the meantime to arrange someformula concordiæ; which might avert the scandal and mischief of the dismissal. Sir J. Patteson, Sir B. Brodie, and Mr. Green supported the amendment, but the majority went the other way, and much was I grieved at it. I am not inclined to abate the dogmatic profession of the church—on the contrary, nothing would induce me to surrender the smallest fraction of it; but while jealous of its infraction in any particular, I am not less jealous of the obtrusion of any private or local opinion into the region of dogma; and above all I hold that there should be as much rigour in a trial of this kind, irrespective of the high character and distinguished powers of the person charged in this particular case, as if he were indicted for murder.[283]

DEFENCE OF MAURICE

Long afterwards, when the alleged heretic was dead, Mr. Gladstone wrote of him to Mr. Macmillan (April 11, 1884): 'Maurice is indeed a spiritual splendour, to borrow the phrase of Dante about St. Dominic. His intellectual constitution had long been, and still is, to me a good dealof an enigma. When I remember what is said and thought of him, and by whom, I feel that this must be greatly my own fault.' Some years after the affair at King's College, Maurice was appointed to Vere Street, and the attack upon him was renewed. Mr. Gladstone was one of those who signed an address of recognition and congratulation.

FOOTNOTES:[278]Memo, by Mr. Gladstone of a conversation with Aberdeen.[279]The practical impossibility of retaining this learned man, the Derbyite chancellor, upon the coalition woolsack, is an illustration of the tenacity of the modern party system.[280]It was not until the rise of Mr. Gladstone that a chancellor of the exchequer, not being prime minister, stood at this high level.[281]From the Baring papers, for which I am indebted to the kindness of Lord Northbrook.[282]Times, December 23, 1852.[283]SeeLife of Maurice, ii. p. 195;Life of Wilberforce, ii. pp. 208-218.See also Mr. Gladstone's letter to Bishop Hampden, 1856, above p. 168.

[278]Memo, by Mr. Gladstone of a conversation with Aberdeen.

[279]The practical impossibility of retaining this learned man, the Derbyite chancellor, upon the coalition woolsack, is an illustration of the tenacity of the modern party system.

[280]It was not until the rise of Mr. Gladstone that a chancellor of the exchequer, not being prime minister, stood at this high level.

[281]From the Baring papers, for which I am indebted to the kindness of Lord Northbrook.

[282]Times, December 23, 1852.

[283]SeeLife of Maurice, ii. p. 195;Life of Wilberforce, ii. pp. 208-218.See also Mr. Gladstone's letter to Bishop Hampden, 1856, above p. 168.

ToC

THE TRIUMPH OF 1853

(1853)

We have not sought to evade the difficulties of our position.... We have not attempted to counteract them by narrow or flimsy expedients.... We have proposed plans which will go some way towards closing up many vexed financial questions.... While we have sought to do justice to intelligence and skill as compared with property—while we have sought to do justice to the great labouring community by further extending their relief from indirect taxation, we have not been guided by any desire to set one class against another.—Gladstone(1853).

Mr. Gladstone began this year, so important both to himself and to the country, with what he described as a short but active and pleasant visit to Oxford. He stayed at Christ Church with Dr. Jacobson, of whom it was observed that he always looked as if on the point of saying something extremely piercing and shrewd, only it never came. He paid many calls, dined at Oriel, had a luncheon and made a speech in the hall at Balliol; passed busy days and brisk evenings, and filled up whatever spare moments he could find or manufacture, with treasury papers, books on taxation, consolidated annuities, and public accounts, alternating with dips into Lamennais—the bold and passionate French mystic, fallen angel of his church, most moving of all the spiritual tragedies of that day of heroic idealists.

On February 3 he moved into the house of the chancellor of the exchequer in that best known of all streets which is not a street, where he was destined to pass some two and twenty of the forty-one years of the public life that lay before him. He had a correspondence with Mr. Disraeli, his predecessor, on the valuation of the furniture inthe official house. There was question, also, of the robe that passes down under some law of exchange from one chancellor to another on an apparently unsettled footing. The tone on this high concern was not wholly amicable. Mr. Gladstone notes especially in his diary that he wrote a draft of one of his letters on a Sunday, as being, I suppose, the day most favourable to self-control; while Mr. Disraeli at last suggests that Mr. Gladstone should really consult Sir Charles Wood, 'who is at least a man of the world.' Such are the angers of celestial minds.

At an early cabinet (Feb. 5) he began the battle that lasted in various shapes all the rest of his life. It was on a question of reducing the force in the Pacific. 'Lord Aberdeen, Granville, Molesworth, and I were for it. We failed.' What was the case for this particular retrenchment I do not know, nor does it matter. Fiercer engagements, and many of them, were to follow. Meanwhile he bent all the energies of his mind to the other front of financial questions—to raising money rather than expending it, and with unwearied industry applied himself to solve the problem of redistributing the burdens and improving the machinery of taxation.

For many years circumstances had given to finance a lively and commanding place in popular interest. The protracted discussion on the corn law, conducted not only in senate and cabinet, but in country market-places and thronged exchanges, in the farmer's ordinary and at huge gatherings in all the large towns in the kingdom, had agitated every class in the community. The battle between free trade and protection, ending in a revolution of our commercial system, had awakened men to the enormous truth, as to which they are always so soon ready to relapse into slumber, that budgets are not merely affairs of arithmetic, but in a thousand ways go to the root of the prosperity of individuals, the relations of classes, and the strength of kingdoms. The finance of the whigs in the years after the Reform bill had not only bewildered parliament, but had filled merchants, bankers, shipowners, manufacturers, shopkeepers, and the whole array of general taxpayers withperplexity and dismay. Peel recovered a financial equilibrium and restored public confidence, but Peel was gone. The whigs who followed him after 1846 had once more laboured under an unlucky star in this vital sphere of national affairs. They performed the unexampled feat of bringing forward four budgets in a single year, the first of them introduced by Lord John Russell himself as prime minister. By 1851 floundering had reached a climax. Finance had thus discredited one historical party; it had broken up the other. It was finance that overthrew weak governments and hindered the possibility of a strong one.

FISCAL CONFUSION

Mr. Disraeli, the most unsparing of all the assailants of Peel, tried his own hand in 1852. To have the genius and the patience of a great partisan chief is one gift, and this he had; to grasp the complex material interests of a vast diversified society like the United Kingdom demands powers of a different order. The defeat of Mr. Disraeli's budget at the end of 1852 seemed to complete the circle of fiscal confusion. Every source of public income was the object of assault. Every indirect tax was to be reduced or swept away, and yet no two men appeared to agree upon the principles of the direct taxes that were to take their place. The window duty, the paper duty, the tax on advertisements, the malt-tax, the stamp on marine insurances, were all to vanish, but even the most zealous reformers were powerless to fill the void. The order-book of the House of Commons was loaded with motions about the income-tax, and an important committee sat in 1851 to consider all the questions connected with the possibility of its readjustment and amendment. They could not even frame a report. The belief that it was essentially unjust to impose the tax at one and the same rate upon permanent and temporary incomes, prevailed in the great mass, especially of the liberal party. Discussions arose all through this period, descending not only to the elementary principles of taxation, but, as Mr. Gladstone said, almost to the first principles of civilised society itself. Party distraction, ministerial embarrassment, adjournment after adjournment of a decision upon fundamental maxims of national taxation—such wasthe bewildered scene. At last a statesman appeared, a financier almost by accident (for, as we have seen, it was by no special choice of his own that Mr. Gladstone went to the exchequer), but a financier endowed with a practical imagination of the highest class, with a combination of the spirit of vigorous analysis and the spirit of vigorous system, with the habit of unflagging toil, and above all, with the gift of indomitable courage. If anybody suggested the reappointment of Hume's committee, the idea was wisely dismissed. It was evidently, as Graham said, the duty of the executive government to lead the way and to guide public opinion in a matter of this crucial importance. It seemed impossible and unworthy to avoid a frank declaration about the income-tax. He was strongly of opinion (March 15) that a larger measure would be carried with greater certainty and ease than simple renewal; and that a combination of income-tax, gradually diminishing to a fixed term of extinction, with reduction of the interest of debt, and a review of the probate and legacy duties, afforded the best ground for a financial arrangement both successful and creditable. It was strong ideas of this kind that encouraged Mr. Gladstone to build on a broad foundation.

The nature of his proceedings he set out in one of the most interesting of his political memoranda:—

The liberals were, to all appearance, pledged to the reconstruction of the tax by their opinions, and the tories by their party following. The small fraction of Peelites could probably be relied upon the other way, and some few individuals with financial knowledge and experience. The mission of the new government was described by Lord Aberdeen in the House of Lords as a financial mission, and the stress of it thus lay upon a person, very ill-prepared. My opinions were with Peel; but under such circumstances it was my duty to make a close and searching investigation into the whole nature of the tax, and make up my mind whether there was any means of accepting or compounding with the existing state of opinion. I went to work, and laboured very hard. When I had entered gravely upon my financial studies, I one day had occasion—I know not what—to go into thecity and to call upon Mr. Samuel Gurney, to whom experience and character had given a high position there. He asked me with interest about my preparations for my budget; and he said, 'One thing I will venture to urge, whatever your plan is,—let it be simple.' I was a man much disposed to defer to authority, and I attached weight to this advice. But as I went further and further into my subject, I became more and more convinced that, as an honest steward, I had no option but to propose the renewal of the tax in its uniform shape. I constructed much elaborate argument in support of my proposition, which I knew it would be difficult to answer. But I also knew that no amount of unassisted argument would suffice to overcome the obstacles in my way, and that this could only be done by large compensations in my accompanying propositions. So I was led legitimately on, and on, until I had framed the most complicated scheme ever submitted to parliament.

THE FABRIC PLANNED

Truly has it been said that there is something repulsive to human nature in the simple reproduction of defunct budgets. Certainly if anything can be more odious than a living tax, it is a dead one. It is as much as is consonant to biography to give an outline of the plan that was gradually wrought out in Mr. Gladstone's mind during the first three laborious months of 1853, and to mark the extraordinarily far-reaching and comprehensive character of the earliest of his thirteen budgets. Its initial boldness lay in the adoption of the unusual course of estimating the national income roughly for a long period of seven years, and assuming that expenditure would remain tolerably steady for the whole of that period. Just as no provident man in private life settles his establishment on the basis of one year or two years only, so Mr. Gladstone abandoned hand-to-mouth, and took long views. 'I ought, no doubt,' he said afterwards, 'to have pointed out explicitly that a great disturbance and increase of our expenditure would baffle my reckonings.' Meanwhile, the fabric was planned on strong foundations and admirable lines. The simplification of the tariff of duties of customs, begun by Peel eleven years before, was carried forward almost to completion. Nearly one hundred and forty dutieswere extinguished, and nearly one hundred and fifty were lowered. The tea duty was to be reduced in stages extending over three years from over two shillings to one shilling. In the department of excise, the high and injurious duty on soap, which brought into the exchequer over eleven hundred thousand pounds annually, was swept entirely away. In the same department, by raising the duties on spirits manufactured in Ireland nearer to the level of England and Scotland, a step was taken towards identity of taxation in the three kingdoms—by no means an unequivocal good. Miscellaneous provisions and minor aspects of the scheme need not detain us; but a great reform of rate and scale in the system of the assessed taxes, the reduction of the duty on the beneficent practice of life insurance from half-a-crown to sixpence on the hundred pounds, and the substitution of a uniform receipt stamp, were no contemptible contributions to the comfort and well-being of the community. Advertisements in newspapers became free of duty.[284]

KEYSTONE OF THE BUDGET

The keystone of the budget in Mr. Gladstone's conception was the position to be assigned in it to the income-tax. This he determined to renew for a period of seven years,—for two years at sevenpence in the pound, for two years more at sixpence, and for the last three at fivepence. By that time he hoped that parliament would be able to dispense with it. Meanwhile it was to be extended to Ireland, in compensation for the remission of a debt owed by Ireland to the British treasury of between four and five millions. It was to be extended, also, at a reduced rate of fivepence, to incomes between a hundred and fifty and a hundred pounds—the former having hitherto been the line of total exemption. From the retention of the income-tax as a portion of the permanent and ordinary finance of the country the chancellor of the exchequer was wholly and strongly averse, and so he remained for more than twenty years to come. In order,however, to meet a common and a just objection, that under this impost intelligence, enterprise, and skill paid too much and property paid too little, he resolved upon a bold step. He proposed that the legacy duty, hitherto confined to personal property passing on death, either by will or by inheritance and not by settlement, should henceforth be extended to real property, and to both descriptions of property passing by settlement, whether real or personal. In a word, the legacy duty was to extend to all successions whatever. This was the proposal that in many senses cut deepest. It was the first rudimentary breach in the ramparts of the territorial system, unless, indeed, we count as first the abolition of the corn law.[285]Mr. Gladstone eagerly disclaimed any intention of accelerating by the pressure of fiscal enactment changes in the tenure of landed property, and the letters which the reader has already seen (pp. 345-9) show the high social value that he invariably set upon the maintenance of the old landed order. The succession duty, as we shall find, for the time disappointed his expectations, for he counted on two millions, and in fact it yielded little more than half of one. But it secured for its author the lasting resentment of a powerful class.

Such was the scheme that Mr. Gladstone now worked out in many weeks of toil that would have been slavish, were it not that toil is never slavish when illuminated by a strenuous purpose. When by and by the result had made him the hero of a glorious hour, he wrote to Lord Aberdeen (April 19): 'I had the deepest anxiety with regard to you, as our chief, lest by faults of my own I should aggravate the cares and difficulties into which I had at least helped to bring you; and the novelty of our political relations with many of our colleagues, together with the fact that I had been myself slow, and even reluctant, to the formation of a new connection, filled me with an almost feverish desire to do no injustice to that connection now that it was formed; and to redeem the pledge you generously gave on my behalf, that there would be no want of cordiality and zeal in the dischargeof any duties which it might fall to me to perform on behalf of such a government as was then in your contemplation.'

Thirteen, fourteen, fifteen hours a day he toiled at his desk. Treasury officials and trade experts, soap deputations and post-horse deputations, representatives of tobacco and representatives of the West India interest, flocked to Downing Street day by day all through March. If he went into the city to dine with the Lord Mayor, the lamentable hole thus made in his evening was repaired by working till four in the morning upon customs reform, Australian mints, budget plans of all kinds. It is characteristic that even this mountain load of concentrated and exacting labour did not prevent him from giving a Latin lesson every day to his second boy.

'Some days before the day appointed for my statement,' says Mr. Gladstone, 'I recited the leading particulars to my able and intelligent friend Cardwell, not in the cabinet but then holding office as president of the board of trade. He was so bewildered and astounded at the bigness of the scheme, that I began to ask myself, Have I a right to ask my colleagues to follow me amidst all these rocks and shoals? In consequence I performed a drastic operation upon the plan, and next day I carried to Lord Aberdeen a reduced and mutilated scheme which might be deemed by some politicians to be weaker but safer. I put to Lord Aberdeen the question I had put to myself, and stated my readiness, if he should think it called for, to make this sacrifice to the probable inclinations of my colleagues. But he boldly and wisely said, “I take it upon myself to ask you to bring your original and whole plan before the cabinet.” I thought this an ample warrant.'

THE BUDGET IN CABINET

At last, after Mr. Gladstone had spent an hour at the palace in explaining his scheme to the Prince Consort, the budget was opened to the cabinet (April 9) in a speech of three hours—an achievement, I should suppose, unparalleled in that line, for a cabinet consists of men each with pretty absorbing pre-occupations of his own. Theexposition was 'as ingenious,' Lord Aberdeen told Prince Albert, 'as clear, and for the most part as convincing, as anything I have ever heard.' 'Gladstone,' said Lord Aberdeen later (1856) 'does not weigh well against one another different arguments, each of which has a real foundation. But he is unrivalled in his power of proving that a specious argument has no real foundation. On the Succession bill the whole cabinet was against him. He delivered to us much the same speech as he made in the House of Commons. At its close we were all convinced.'[286]

Differences that might easily become serious speedily arose upon details in the minds of two or three of them, and for some days the prime minister regarded the undertaking as not only difficult but perilous. Sir Charles Wood, in cabinet (April 11), strongly disapproved of the extension of income-tax to Ireland, and to the lowering of the exemption line. On Ireland the plan would lay more than half a million of new taxation, whereas much of the relief, such as soap and assessed taxes, would not touch her.[287]Palmerston thought it a great plan, perfectly just, and admirably put together, only it opened too many points of attack, and it could never be carried: Disraeli was on the watch, the Irish would join him, so would the radicals, while the succession duty, to which Palmerston individually had great objection, would estrange many conservatives. Lord John Russell perceived difficulties, but he did not see an alternative. Graham then fell in, disliked the twofold extension of the income-tax, and thought they should only take away half the soap-tax. Lord Lansdowne (a great Irish landlord) agreed with him. Mr. Gladstone told them that he was willing to propose whatever the cabinet might decide on, except one thing, namely, the breaking up of the basis of the income-tax: that he could not be a party to; he should regard it as a high political offence. With this reservation he should follow their judgment, but he strongly adhered to his whole plan. Lord Aberdeen said, 'You must take care your proposals are not unpopular ones.'Mr. Gladstone replied that it was after applying the test of popularity, that he was convinced the budget would be damaged beforehand by some of the small changes that had been suggested.

At the end of a long and interesting discussion, there stood for the whole budget Lord John, Newcastle, Clarendon, Molesworth, Gladstone, with Argyll and Aberdeen more or less favourable; for dropping the two extensions of income-tax and keeping half the soap duty, Lansdowne, Graham, Wood; more or less leaning towards them, Palmerston and Granville. They agreed to meet again the next day (April 12), when they got into the open sea. Wood stuck to his text. Lansdowne suggested that an increased spirit duty and an income-tax for Ireland together would be something like a breach of faith. Palmerston thought they would be beaten, but he would accept the budget provided they were not to be bound to dissolve or resign upon such a point as to the two extensions of the income-tax. Lord John said that if they were beaten on differentiating the tax, they would have to dissolve. Palmerston expressed his individual opinion in favour of a distinction for precarious incomes, and would act in that sense if he were out of the government; as it was, he assented. Argyll created a diversion by suggesting the abandonment of the Irish spirit duty. Mr. Gladstone admitted that he thought the spirit duty the weakest point of the plan, though warrantable and tenable on the whole. At last, after further patient and searching discussion, the cabinet finding that the suggested amendments cut against one another, were for adopting the entire budget, the dissentients being Lansdowne, Graham, Wood, and Herbert. Graham was full of ill auguries, but said he would assent and assist. Wood looked grave, and murmured that he must take time.

CABINET MISGIVINGS

In the course of these preliminaries Lord John Russell had gone to Graham, very uneasy about the income-tax. Graham, though habitually desponding, bade him be of good cheer. Their opponents, he said, were in numbers strong; but the budget would be excellent to dissolve upon, and Lord John admitted that they would gain forty seats.

They agreed, however, in Graham's language, that it would never do to play their trump card until the state of the game actually required it. Lord John confessed that he was no judge of figures,—somewhat of a weakness in a critic of a budget,—and Graham comforted him by the reply that he was at any rate the best judge living of House of Commons tactics.

The position of the government in the House of Commons was notoriously weak. The majority that had brought them into existence was excessively narrow. It had been well known from the first that if any of the accidents of a session should happen to draw the tories, the Irish, and the radicals into one lobby, ministers would find themselves in a minority. Small defeats occurred. The budget was only four days off. Mr. Gladstone enters in his diary: 'Spoke against Gibson; beaten by 200-169. Our third time this week. Very stiff work this. Ellice said dissolution would be the end of it; we agreed in the House to a cabinet to-morrow. Herbert and Cardwell, to whom I spoke, inclined to dissolve.' Next day (April 15), the cabinet met in a flutter, for the same tactics might well be repeated, whenever Mr. Disraeli should think the chances good.

Lord John adverted to the hostility of the radicals as exhibited in the tone of the debate, and hinted the opinion that they must take in a reef or two. Mr. Gladstone doubted whether the budget could live in that House, whatever form it might assume; but even with such perils he should look upon the whole budget as less unsafe than a partial contraction. Graham took the same view of the disposition of parliament: keen opposition; lukewarm support; the necessity of a greater party sympathy and connection to enable them to surmount the difficulties of a most unusual and hazardous operation. But he did not appear to lean to dissolution, and the older members of the cabinet generally declared themselves against it. 'In the end we went back to the position that we must have a budget on Monday, but Clarendon, Herbert, and Palmerston joined the chorus of those who said the measure was too sharp upon Ireland. The idea was thenstarted whether we should go the length of the entire remission of the consolidated annuities[288]and impose the income-tax at sevenpence, with the augmented spirit duty. This view found favour generally; and I felt that some excess in the mere sacrifice of money was no great matter compared with the advantage of so great an approximation to equal taxation.' Then, 'speaking with great deference,' Gladstone repeated his belief once more that the entire budget was safer than a contracted one, both for the House and the country, and his conviction that if they proposed it, the name and fame of the government at any rate would stand well. 'Wood seemed still to hang back, but the rest of the cabinet now appeared well satisfied, and we parted, each resolved and certainly more likely to stand or fall by the budget as a whole than we seemed to be on Wednesday.'

III

The decisive cabinet was on Saturday, April 16. It was finally settled that the budget should be proposed as it stood, with its essential features unaltered. On Sunday, the chancellor of the exchequer went as usual twice to church, and read theParadiso; 'but I was obliged,' he says, with an accent of contrition, 'to give several hours to my figures.' Monday brought the critical moment. 'April 18. Wrote minutes. Read Shakespeare at night. This day was devoted to working up my papers and figures for the evening. Then drove and walked with C. [Mrs. Gladstone]. Went at 4½ to the House. Spoke 4¾ hours in detailing the financial measures, and my strength stood out well, thank God. Many kind congratulations afterwards. Herberts and Wortleys came home with us and had soup and negus.'

LAID BEFORE PARLIAMENT

The proceeding that figures here so simply was, in fact, one of the great parliamentary performances of the century. Lord Aberdeen wrote to Prince Albert that 'the display of power was wonderful; it was agreed in all quarters that there had been nothing like the speech for many years, and that under the impression of his commanding eloquence thereception of the budget had been most favourable.' Lord John told the Queen the speech was one of the ablest ever made in the House of Commons. 'Mr. Pitt, in the days of his glory, might have been more imposing, but he could not have been more persuasive.' Lord Aberdeen heard from Windsor the next day: 'The Queen must write a line to Lord Aberdeen to say how delighted she is at the great success of Mr. Gladstone's speech last night.... We have every reason to be sanguine now, which is a great relief to the Queen.' Prince Albert used the same language to Mr. Gladstone: 'I cannot resist writing you a line in order to congratulate you on the success of your speech of yesterday. I have just completed a close and careful perusal of it and should certainly have cheered had I a seat in the House. I hear from all sides that the budget has been well received. Trusting that your Christian humility will not allow you to be dangerously elated, I cannot help sending for your perusal the report which Lord John Russell sent to the Queen, feeling sure that it will give you pleasure, such approbation being the best reward a public man can have.'

On the cardinal question of the fortunes of the ministry its effect was decisive. The prime minister wrote to Mr. Gladstone himself (April 19): 'While everybody is congratulatingmeon the wonderful impression produced in the House of Commons last night, it seems only reasonable that I should have a word of congratulation foryou. You will believe how much more sincerely I rejoice on your account than on my own, although most assuredly, if the existence of my government shall be prolonged, it will be your work.' To Madame de Lieven Aberdeen said that Gladstone had given a strength and lustre to the administration which it could not have derived from anything else. No testimony was more agreeable to Mr. Gladstone than a letter from Lady Peel. 'I know the recollections,' he replied, 'with which you must have written, and therefore I will not scruple to say that as I was inspired by the thought of treading, however unequally, in the steps of my great teacher and master in public affairs, so it wasone of my keenest anxieties not to do dishonour to his memory, or injustice to the patriotic policy with which his name is forever associated.'[289]

POWER OF THE PERFORMANCE

Greville makes a true point when he says that the budget speech 'has raised Gladstone to a great political elevation, and what is of far greater consequence than the measure itself, has given the country assurance of amanequal to great political necessities and fit to lead parties and direct governments.'[290]Mr. Gladstone had made many speeches that were in a high degree interesting, ingenious, attractive, forcible. He now showed that besides and apart from all this, he was the possessor of qualities without which no amount of rhetorician's glitter commands the House of Commons for a single hour after the fireworks have ceased to blaze. He showed that he had precise perception, positive and constructive purpose, and a powerful will. In 1851, he had on two occasions exhibited the highest competency as a critic of the budget of Sir Charles Wood. On the memorable night in the previous December, when he had torn Mr. Disraeli's budget to pieces, he had proved how terrifying he could be in exposure and assault. He now triumphantly met the test that he had triumphantly applied to his predecessor, and presented a command of even more imposing resources in the task of responsible construction than he had displayed in irresponsible criticism. The speech was saturated with fact; the horizons were large; and the opening of each in the long series of topics, from Mr. Pitt and the great war, down to the unsuspected connection between the repeal of the soap-tax and the extinction of the slave trade in Africa, was exalted and spacious. The arguments throughout were close, persuasive, exhaustive; the moral appeal was in the only tone worthy of a great minister addressing a governing assembly—a masculine invocation of their intellectual and political courage. This is the intrepid way in which a strong parliament and a strong nation like to see public difficulties handled, and they now welcomed the appearance of anew minister, who rejected what he called narrow and flimsy expedients, of which so much had been seen in the last half dozen years; who was not afraid to make a stand against heedless men with hearts apparently set on drying up one source of revenue after another; who did not shrink from sconcing the powerful landed phalanx like other people; and who at the same time boldly used and manfully defended the most unpopular of all the public imposts. In politics the spectacle of sheer courage is often quite as good in its influence and effect as the best of logic. It was so here. While proposing that the income-tax should come to an end in seven years, he yet produced the most comprehensive analysis and the boldest vindication of the structure of the tax as it stood. His manner was plain, often almost conversational, but his elaborate examination of the principles of an income-tax remains to this day a master example of accurate reasoning thrown into delightful form. He admitted all the objections to it: the inquisition that it entailed, the frauds to which it led, the sense in the public mind of its injustice in laying the same rate upon the holder of idle and secured public funds, upon the industrious trader, upon the precarious earnings of the professional man. It was these disadvantages that made him plan the extinction of the tax at the end of a definite period, when the salutary remissions of other burdens now proposed would have had time to bring forth their fruits. As was said by a later chancellor of the exchequer, this speech not only won 'universal applause from his audience at the time, but changed the convictions of a large part of the nation, and turned, at least for several years, a current of popular opinion which had seemed too powerful for any minister to resist.'[291]

The succession duty brought Mr. Gladstone into the first conflict of his life with the House of Lords. That land should be made to pay like other forms of property Was a proposition denounced as essentially impracticable, oppressive, unjust, cowardly, and absurd. It was calledex post factolegislation. It was one of the most obnoxious,detestable, and odious measures ever proposed. Its author was a vulture soaring over society, waiting for the rich harvest that death would pour into his treasury. Lord Derby invoked him as a phœnix chancellor, in whom Mr. Pitt rose from his ashes with double lustre, for Mr. Gladstone had ventured where Pitt had failed. He admitted that nothing short of the chancellor's extraordinary skill and dexterity could have carried proposals so evil through the House of Commons.[292]Meanwhile the public counted up their gains: a remission on tea, good for twenty shillings a year in an ordinary household; a fall in the washing bill; a boon of a couple of pounds for the man who insured his life for five hundred; an easy saving of ten pounds a year in the assessed taxes, and so forth,—the whole performance ending with 'a dissolving view of the decline and fall' of the hated income-tax.

SUCCESSION DUTY AND REDEMPTION

The financial proceedings of this year included a proposal for the redemption of South Sea stock and an attempted operation on the national debt, by the creation of new stocks bearing a lower rate of interest, two options of conversion being given to the holders of old stock. The idea of the creation of a two-and-half-per-cent. stock, said Mr. Gladstone in later years, though in those days novel, was very favourably received.[293]

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