Mr. Grenville, Great granduncle.

[139] _Paradiso_, xxvi. 64-6--

'Love for each plant that in the garden grows, Of the Eternal Gardener, I prove, Proportioned to the goodness he bestows.'--WRIGHT.

[140] _Ibid._ iii. 85. See above, p. 215.

[141] See Lord Palmerston's speech, Aug. 10, 1842.

[142] _Hansard_, 3 S. vol. 53, p. 819.

[143] 'It was the common talk of Oxford how the most distinguished lawyer of the day, a literary man and a critic, on hearing the speech in question, p.r.o.nounced his prompt verdict on him in the words, "That young man's fortune is made."'--Newman's Funeral Sermon on J. R. Hope-Scott in _Sermons preached on Various Occasions_, p. 269.

[144] The reader who cares for further particulars may consult the _Memoirs of J. R. Hope-Scott_, i. pp. 248, 281-8; and ii. p. 291.

[145] His first house was 13 Carlton House Terrace, then his father gave him 6 Carlton Gardens. In 1856 he purchased 11 Carlton House Terrace, which was his London home until 1875. From 1876 to 1880 he occupied 73 Harley Street.

[146] 'At that period the board of trade was the department which administered to a great extent the functions that have since pa.s.sed princ.i.p.ally into the hands of the treasury, connected with the fiscal laws of the country.'--_Mr. Gladstone at Leeds_, Oct. 8, 1881. In 1880, writing to Mr. Chamberlain, then president, he says: 'If you were to look back to the records of your department thirty-five and forty years ago, you would find how much of the public trade business was transacted in it. Revenue was then largely involved: and hence, I imagine, it came about that this business was taken over in a great degree by the treasury. I myself have drawn up new tariffs in both, at the B. of T. in 1842 and 1844-5, and at the treasury in 1853 and 1860. Why and how the old B. of T. functions also pa.s.sed in part to the F.O. I do not so well know.'

[147] I suppose this points to incompatibility in the fevers of the hour between protestant Ulster and a Puseyite chief secretary.

[148] Autobiographic note.

[149] It would appear from the ma.n.u.script at the British Museum, that Macaulay's sentence about Mr. Gladstone as the rising hope of the stern and unbending tories, which later events made long so famous and so tiresome, was a happy afterthought, written in along the margin.

[150] Parker's _Peel_, ii. pp. 514-17.

CHAPTER VIII

PEEL'S GOVERNMENT

(_1842-1844_)

In many of the most important rules of public policy Sir R. Peel's government surpa.s.sed generally the governments which have succeeded it, whether liberal or conservative. Among them I would mention purity in patronage, financial strictness, loyal adherence to the principle of public economy, jealous regard to the rights of parliament, a single eye to the public interest, strong aversion to extension of territorial responsibilities and a frank admission of the rights of foreign countries as equal to those of their own.--MR. GLADSTONE (1880).[151]

Of the four or five most memorable administrations of the century, the great conservative government of Sir Robert Peel was undoubtedly one. It laid the groundwork of our solid commercial policy, it established our railway system, it settled the currency, and, by no means least, it gave us a good national character in Europe as lovers of moderation, equity, and peace. Little as most members of the new cabinet saw it, their advent definitely marked the rising dawn of an economic era. If you had to const.i.tute new societies, Peel said to Croker, then you might on moral and social grounds prefer cornfields to cotton factories, and you might like an agricultural population better than a manufacturing; as it was, the national lot was cast, and statesmen were powerless to turn back the tide. The food of the people, their clothing, the raw material for their industry, their education, the conditions under which women and children were suffered to toil, markets for the products of loom and forge and furnace and mechanic's shop,--these were slowly making their way into the central field of political vision, and taking the place of fantastic follies about foreign dynasties and the balance of power as the true business of the British statesman. On the eve of entering parliament (September 17, 1832), Mr. Gladstone recounts some articles of his creed at the time to his friend Gaskell, and to modern eyes a curious list it is. The first place is given to his views on the relative merits of Pedro, Miguel, Donna Maria, in respect of the throne of Portugal. The second goes to Poland. The third to the affairs of Lombardy. Free trade comes last. This was still the lingering fashion of the moment, and it died hard.

The new ministry contained an unusual number of men of mark and capacity, and they were destined to form a striking group. At their head was a statesman whose fame grows more impressive with time, not the author or inspirer of large creative ideas, but with what is at any rate next best--a mind open and accessible to those ideas, and endowed with such gifts of skill, vigilance, caution, and courage as were needed for the government of a community rapidly pa.s.sing into a new stage of its social growth. One day in February 1842, he sent for Mr. Gladstone on some occasion of business. Peel happened not to be well, and in the course of the conversation his doctor called. Sir James Graham who had come in, said to his junior in Peel's absence with the physician, 'The pressure upon him is immense. We never had a minister who was so truly a first minister as he is. He makes himself felt in every department, and is really cognisant of the affairs of each. Lord Grey could not master such an amount of business. Canning could not do it. Now he is an actual minister, and is indeed _capax imperii_.' Next to Peel as parliamentary leaders stood Graham himself and Stanley. They had both of them sat in the cabinet of Lord Grey, and now found themselves the colleagues of the bitterest foes of Grey's administration. As we have seen, Mr. Gladstone p.r.o.nounces Graham to have known more about economic subjects than all the rest of the government put together. Such things had hitherto been left to men below the first rank in the hierarchy of public office, like Huskisson. Pedro and Miguel held the field.

END OF HIS PROTECTIONIST STAGE

Mr. Gladstone's own position is described in an autobiographic fragment of his last years:--

When I entered parliament in 1832, the great controversy between protection or artificial restraint and free trade, of which Cobden was the leading figure, did not enter into the popular controversies of the day, and was still in the hands of the philosophers. My father was an active and effective local politician, and the protectionism which I inherited from him and from all my youthful a.s.sociations was qualified by a thorough acceptance of the important preliminary measures of Mr. Huskisson, of whom he was the first among the local supporters. Moreover, for the first six years or so of my parliamentary life free trade was in no way a party question, and it only became strictly such in 1841 at, and somewhat before, the general election, when the whig government, _in extremis_, proposed a fixed duty upon corn. My mind was in regard to it a sheet of white paper, but I accepted the established conditions in _the lump_, and could hardly do otherwise. In 1833 only, the question was debated in the House of Commons, and the speech of the mover against the corn laws made me uncomfortable. But the reply of Sir James Graham restored my peace of mind. I followed the others with a languid interest. Yet I remember being struck with the essential unsoundness of the argument of Mr. Villiers. It was this. Under the present corn law our trade, on which we depend, is doomed, for our manufacturers cannot possibly contend with the manufacturers of the continent if they have to pay wages regulated by the protection price of food, while their rivals pay according to the natural or free trade price. The answer was obvious. 'Thank you. We quite understand you.

Your object is to get down the wages of your workpeople.' It was Cobden who really set the argument on its legs; and it is futile to compare any other man with him as the father of our system of free trade.

I had in 1840 to dabble in this question, and on the wrong side of it[152].... The matter pa.s.sed from my mind, full of churches and church matters, in which I was now gradually acquiring knowledge.

In 1841 the necessities of the whig government led to a further development of the great controversy; but I interfered only in the colonial part of it in connection with the colonies and the slave trade to Porto Rico and Brazil. We West Indians were now great philanthropists! When Sir Robert Peel a.s.sumed the government he had become deeply committed to protection, which in the last two or three years had become the subject of a commanding controversy. I suppose that at Newark I followed suit, but I have no records. On the change of government Peel, with much judgment, offered me the vice-presidentship of the board of trade. On sound principles of party discipline, I took the office at once; and having taken it I set to work with all my might as a worker. In a very short time I came to form a low estimate of the knowledge and information of Lord Ripon; and of the cabinet Sir James Graham, I think, knew most. And now the stones of which my protectionism was built up began to get uncomfortably loose. When we came to the question of the tariff, we were all nearly on a par in ignorance, and we had a very bad adviser in Macgregor, secretary to the board of trade. But I had the advantage of being able to apply myself with an undivided attention. My a.s.sumption of office at the board of trade was followed by hard, steady, and honest work; and every day so spent beat like a battering ram on the unsure fabric of my official protectionism. By the end of the year I was far gone in the opposite sense. I had to speak much on these questions in the session of 1842, but it was always done with great moderation.

II

PEEL'S SLOW CONVERSION

The case on the accession of the new ministers was difficult. Peel himself has drawn the picture. By incompetent finance, by reckless colonial expenditure, by solving political difficulties through gifts or promises of cash from the British treasury, by war and foreign relations hovering on the verge of war and necessitating extended preparations, the whigs had brought the national resources into an embarra.s.sment that was extreme. The acc.u.mulated deficits of five years had become a heavy incubus, and the deficit of 1842-3 was likely to be not less than two and a half millions more. Commerce and manufactures were languishing.

Distress was terrible. Poor-rates were mounting, and grants-in-aid would extend impoverishment from the factory districts to the rural.

'Judge then,' said Peel, 'whether we can with safety retrograde in manufactures.'[153]

So grave a crisis could only be met by daring remedies. With the highest courage, moral courage no less than political, Peel resolved to ask parliament to let him raise four or five millions a year by income-tax, in order to lower the duties on the great articles of consumption, and by reforming the tariff both to relieve trade, and to stimulate and replenish the reciprocal flow of export and import. That he at this time, or perhaps in truth at any time, had acquired complete mastery of those deeper principles and wider aspects of free trade of which Adam Smith had been the great exponent--principles afterwards enforced by the genius of Cobden with such admirable still, persistency, and patriotic spirit--there was nothing to show. Such a scheme had no originality in it. Huskisson, and men of less conspicuous name, had ten years earlier urged the necessity of a new general system of taxation, based upon remission of duty on raw materials and on articles of consumption, and upon the imposition of an income-tax. The famous report of the committee on import duties of 1840, often rightly called the charter of free trade, and of which Peel, not much to his credit, had at this moment not read a word,[154] laid the foundations of the great policy of tariff reform with which the names of Peel and Gladstone are a.s.sociated in history. The policy advocated in 1830 in the admirable treatise of Sir Henry Parnell is exactly the policy of Peel in 1842, as he acknowledged.

After all it is an idle quarrel between the closet strategist and the victorious commander; between the man who first discerns some great truth of government, and the man who gets the thing, or even a part of the thing, actually done.

PEEL'S GOVERNMENT

Mr. Gladstone has left on record some particulars of his own share as subordinate minister not in the cabinet, in this first invasion upon the old tory corn law of 1827. Peel from the beginning appreciated the powers of his keen and zealous lieutenant, and even in the autumn of 1841 he had taken him into confidential counsel.[155] Besides a letter of observations on the general scheme of commercial freedom, Mr.

Gladstone prepared for the prime minister a special paper on the corn laws.

The ordinary business of the department soon fell into my hands to transact with the secretaries, one of them Macgregor, a loose-minded free trader, and the other Lefevre, a clear and scientific one. In that autumn I became possessed with the desire to relax the corn law, which formed, I believe, the chief subject of my meditations. Hence followed an important consequence. Very slow in acquiring relative and secondary knowledge and honestly absorbed in my work, I simply thought on and on as to what was right and fair under the circ.u.mstances.

In January 1842, as the session approached, they came to close quarters.

The details of all the mysteries of protectionist iniquity we may well spare ourselves. Peel, feeling the pulse of his agricultural folk, thought it would never do to give them less than a ten-shilling duty, when the price of wheat was at sixty-two shillings the quarter; while Mr. Gladstone thought a twelve-shilling duty at a price of sixty far too low a relief to the consumer. His eyes were beginning to be opened.

_Feb. 2._--I placed in Sir R. Peel's hands a long paper on the corn law in the month of November, which, on wishing to refer to it, he could not find; and he requested me to write out afresh my argument upon the value of a rest or dead level, and the part of the scale of price at which it should arrive; this I did.

On Monday I wrote another paper arguing for a rest between 60/ and 70/ or thereabouts; and yesterday a third intended to show that the present law has been in practice _fully_ equivalent to a prohibition up to 70/. Lord Ripon then told me the cabinet had adopted Peel's scale as it originally stood--and seemed to doubt whether _any_ alteration could be made. On his announcing the adoption, I said in a marked manner, '_I am very sorry for it_'--believing that it would be virtual prohibition up to 65/ or 66/ and often beyond, to the minimum; and not being able, in spite of all the good which the government is about to do with respect to commerce, to make up my mind to support such a protection. I see, from conversations with them to-day, that Lord Ripon, Peel, and Graham, are all aware the protection is greater than is necessary.

MR. GLADSTONE'S RAPID ADVANCE

This mood soon carried the vice-president terribly far. On Feb. 5 he met most of the members of the cabinet at Peel's house. He argued his point that the scale would operate as virtual protection up to seventy shillings, and in a private interview with Peel afterwards hinted at retirement. Peel declared himself so taken by surprise that he hardly knew what to say; 'he was thunderstruck;' and he told his young colleague that 'the retirement of a person holding his office, on this question, immediately before his introducing it, would endanger the existence of the administration, and that he much doubted whether in such a case he could bring it on.'

I fear Peel was much annoyed and displeased, for he would not give me a word of help or of favourable supposition as to my own motives and belief. He used nothing like an angry or unkind word, but the negative character of the conversation had a chilling effect on my mind. I came home sick at heart in the evening and told all to Catherine, my lips being to every one else, as I said to Sir R.

Peel, absolutely sealed.

'He might have gained me more easily, I think,' Mr. Gladstone wrote years afterwards, 'by a more open and supple method of expostulation. But he was not skilful, I think, in the management of personal or sectional dilemmas, as he showed later on with respect to two important questions, the Factory acts and the crisis on the sugar duties in 1844.' This sharp and unnecessary corner safely turned, Mr. Gladstone learned the lesson how to admire a great master overcoming a legislator's difficulties.

I have been much struck (he wrote, Feb. 26) throughout the private discussions connected with, the new project of a corn law, by the tenacity with which Sir Robert Peel, firstly by adhering in every point to the old arrangements where it seemed at all possible, and since the announcement of the plan to parliament, by steadily resisting changes in any part of the resolutions, has narrowed the ground and reduced in number the points of attack, and thus made his measure practicable in the face of popular excitement and a strong opposition. Until we were actually in the midst of the struggle, I did not appreciate the extraordinary sagacity of his parliamentary instinct in this particular. He said yesterday to Lord Ripon and to me, 'Among ourselves, in this room, I have no hesitation in saying, that if I had not had to look to other than abstract considerations, I would have proposed a lower protection.

But it would have done no good to push the matter so far as to drive Knatchbull out of the cabinet after the Duke of Buckingham, nor could I hope to pa.s.s a measure with greater reductions through the House of Lords.'

When Lord John Russell proposed an amendment subst.i.tuting an eight-shilling duty for a sliding scale, Peel asked Mr. Gladstone to reply to him. 'This I did (Feb. 14, 1842),' he says, 'and with my whole heart, for I did not yet fully understand the vicious operation of the sliding scale on the corn trade, and it is hard to see how an eight-shilling duty could even then have been maintained.'

III

THE NEW POLICY

The three centres of operations were the corn bill, then the bill imposing the income-tax, and finally the reform of the duties upon seven hundred and fifty out of the twelve hundred articles that swelled the tariff. The corn bill was the most delicate, the tariff the most laborious, the income-tax the boldest, the most fraught alike with peril for the hour and with consequences of pith and moment for the future. It is hardly possible for us to realise the general horror in which this hated impost was then enveloped. The fact of Brougham procuring the destruction of all the public books and papers in which its odious accounts were recorded, only ill.u.s.trates the intensity of the common sentiment against the dire hydra evoked by Mr. Pitt for the destruction of the regicide power of France, and sent back again to its gruesome limbo after the ruin of Napoleon. From 1842 until 1874 the question of the income-tax was the vexing enigma of public finance.