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 Princ.i.p.alities as a _casus 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.

II

OPPOSITION AT OXFORD

Acceptance of office vacated the Oxford seat, and the day after Christmas a thunderbolt fell upon the new chancellor of 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 const.i.tuents, 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 a.s.surances of his own fidelity; that his a.s.sumption 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 lat.i.tudinarian, 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 canva.s.sers 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 in stating 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 const.i.tuency of 3600 had been recorded. Still the indomitable men insisted on the legal right of keeping the poll 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 const.i.tuency 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, emanc.i.p.ation from the thraldom of that const.i.tuency 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 embarra.s.sed judgment. They pointed out that where the way was clear, as in free trade, colonial government, dissenters'

chapels, Jewish disabilities, catholic bishoprics, n.o.body 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 turn out a thoroughgoing man of the people.' These antic.i.p.ations 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 superst.i.tion 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 statements of 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 lat.i.tude 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 for _what_ he 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 some _formula concordiae_ 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 const.i.tution had long been, and still is, to me a good deal of 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 ill.u.s.tration 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] See _Life 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.

CHAPTER II

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 cla.s.s 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; pa.s.sed 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 pa.s.sionate 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 pa.s.s 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 in the official house. There was question, also, of the robe that pa.s.ses 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 circ.u.mstances 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 cla.s.s 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 cla.s.ses, 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 with perplexity 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 a.s.sailants 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 a.s.sault. 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 advertis.e.m.e.nts, 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 ma.s.s, 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 embarra.s.sment, adjournment after adjournment of a decision upon fundamental maxims of national taxation--such was the 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 cla.s.s, with a combination of the spirit of vigorous a.n.a.lysis 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 circ.u.mstances 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 the city 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 una.s.sisted 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 a.s.suming 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 duties were 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 ident.i.ty 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 a.s.sessed 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 subst.i.tution of a uniform receipt stamp, were no contemptible contributions to the comfort and well-being of the community. Advertis.e.m.e.nts 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 a.s.signed 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 pa.s.sing 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 pa.s.sing 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 cla.s.s.

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 discharge of 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.