The fortunes of the budget have been succinctly described by its author:-

They were chequered, and they were peculiar in this, that the first blow struck was delivered by one of the best among its friends. Lord John Russell, keenly alive to the discredit of any tampering as in former years with the question of the franchise, insisted on introducing his Reform bill on March 1, when the treaty and the financial proposals of the year, numerous and complex as they were, had not proceeded beyond their early stages.

This was in flat violation of a rule of Lord Bacon's, even more weighty now than in his time, which Sir James Graham was fond of quoting: "Never overlap business." The enemies of the treaty were thus invited to obstruct it through prolonged debating on reform, and the enemies of reform to discharge a corresponding office by prolonged debating on the finance. A large majority of the House were in disguised hostility to the extension of the franchise. The discussions on it were at once protracted, intermittent, and languid. No division was taken against it. It was defeated by the pure _vis inertiae_ of the House skilfully applied: and it was withdrawn on June 11. But it had done its work, by delaying the _tail_ of the financial measures until a time when the marriage effected by the treaty between England and France had outlived its parliamentary honeymoon. There had intervened the Savoy and Nice explosion; settlement with China was uncertain; the prospects of the harvest were bad; French invasion was apprehended by many men usually rational. The Paper Duty bill, which would have pa.s.sed the Commons by a large majority in the beginning of March, only escaped defeat on May 8 by a majority of nine.(22)

When Lord John had asked the cabinet to stop the budget in order to fix a day for his second reading, Mr. Gladstone enters in an autobiographic memorandum of his latest years(23):-

I said to him, "Lord John, I will go down on my knees to you, to entreat you not to press that request." But he persevered; and this although he was both a loyal colleague and a sincere friend to the budget and to the French treaty. When reform was at last got rid of, in order to prosecute finance we had much to do, and in the midst of it there came upon us the news of hostilities in China, which demanded at once an increase of outlay ... sufficient to destroy my accruing balance, and thus to disorganise the finance of the year. The opposition to the Paper bill now a.s.sumed most formidable dimensions.... During a long course of years there had grown up in the House of Commons a practice of finally disposing of the several parts of the budget each by itself. And the House of Lords had shown so much self-control in confining itself to criticism on matters of finance, that the freedom of the House of Commons was in no degree impaired. But there was the opportunity of mischief; and round the carca.s.s the vultures now gathered in overwhelming force. It at once became clear that the Lords would avail themselves of the opportunity afforded them by the single presentation of financial bills, and would prolong, and virtually re-enact a tax, which the representatives of the people had repealed.

On May 5 the diary reports: "Cabinet. Lord Palmerston spoke 3/4 hour against Paper Duties bill! I had to reply. Cabinet against him, except a few, Wood and Cardwell in particular. Three wild schemes of foreign alliance are afloat! Our old men (2) are unhappily our youngest."

Palmerston not only spoke against the bill, as he had a right in cabinet to do, but actually wrote to the Queen that he was bound in duty to say that if the Lords threw out the bill-the bill of his own cabinet-"they would perform a good public service."(24)

Phillimore's notes show that the intense strain was telling on his hero's physical condition, though it only worked his resolution to a more undaunted pitch:-

_May 9._-Found Gladstone in good spirits in spite of the narrow majority on the paper duty last night, but ill with a cough. _May 15._-The whigs out of office, and perhaps in, abusing Gladstone and lauding G. Lewis. I had much conversation with Walpole. Told me he, Henley, and those who went with them would have followed Gladstone if he had not joined this government, but added he was justified in doing so. _May 18._-Gladstone is _ill_; vexed and _indignant_ at the possible and probable conduct of the peers on Monday. Nothing will prevent him from denouncing them in the Commons, if they throw out the paper bill, as having violated in substance and practically the const.i.tution. Meanwhile his unpopularity flows on.

IV

The rejection of the bill affecting the paper duty by the Lords was followed by proceedings set out by Mr. Gladstone in one of his political memoranda, dated May 26, 1860:-

Though I seldom have time to note the hairbreadth 'scapes of which so many occur in these strange times and with our strangely constructed cabinet, yet I must put down a few words with respect to the great question now depending between the Lords and the English nation. On Sunday, when it was well known that the Paper Duties bill would be rejected, I received from Lord John Russell a letter which enclosed one to him from Lord Palmerston. Lord Palmerston's came in sum to this: that the vote of the Lords would not be a party vote, that as to the _thing done_ it was right, that we could not help ourselves, that we should simply acquiesce, and no minister ought to resign. Lord John in his reply to this, stated that he took a much more serious view of the question and gave reasons. Then he went on to say that though he did not agree in the grounds stated by Lord Palmerston, he would endeavour to arrive at the same conclusion. His letter accordingly ended with practical acquiescence. And he stated to me his concurrence in Lord Palmerston's closing proposition.

Thereupon I wrote an immediate reply. We met in cabinet to consider the case. Lord Palmerston started on the line he had marked out. I think he proposed to use some meaningless words in the House of Commons as to the value we set on our privileges, and our determination to defend them if attacked, by way of garniture to the act of their abandonment. Upon this I stated my opinions, coming to the point that this proceeding of the House of Lords amounted to the establishment of a revising power over the House of Commons in its most vital function long declared exclusively its own, and to a divided responsibility in fixing the revenue and charge of the country for the year; besides aggravating circ.u.mstances upon which it was needless to dwell. In this proceeding nothing would induce me to acquiesce, though I earnestly desired that the mildest means of correction should be adopted. This was strongly backed in principle by Lord John; who thought that as public affairs would not admit of our at once confining ourselves to this subject, we should take it up the first thing next session, and send up a new bill. Practical, as well as other, objections were taken to this mode of proceeding, and opposition was continued on the merits; Lord Palmerston keen and persevering. He was supported by the Chancellor, Wood, Granville (in substance), Lewis, and Cardwell, who thought nothing could be done, but were ready to join in resigning if thought fit.

Lord John, Gibson, and I were for decided action. Argyll leaned the same way. Newcastle was for inquiry to end in a declaratory resolution. Villiers thought some step necessary. Grey argued mildly, inclined I think to inaction. Herbert advised resignation, opposed any other course. Somerset was silent, which I conceive meant inaction. At last Palmerston gave in, and adopted with but middling grace the proposition to set out with inquiries, and with the intention to make as little of the matter as he could.

His language in giving notice, on Tuesday, of the committee went near the verge of saying, We mean nothing. An unsatisfactory impression was left on the House. Not a syllable was said in recognition of the gravity of the occasion. Lord John had unfortunately gone away to the foreign office. I thought I should do mischief at that stage by appearing to catch at a part in the transaction. Yesterday all was changed by the dignified declaration of Lord John. I suggested to him that he should get up, and Lord Palmerston, who had intended to keep the matter in his own hands, gave way. But Lord Palmerston was uneasy and said, "You won't pitch it into the Lords," and other things of the same kind. On the whole, I hope that in this grave matter at least we have turned the corner.

As we know, even the fighting party in the cabinet was forced to content itself for the moment with three protesting resolutions. Lord Palmerston and his chancellor of the exchequer both spoke in parliament. "The tone of the two remonstrances," says Mr. Gladstone euphemistically, "could not be in exact accord; but by careful steering on my part, and I presume on his, all occasion of scandal was avoided." Not altogether, perhaps. Phillimore says:-

_July 6._-A strange and memorable debate. Palmerston moving resolution condemnatory of the Lords, and yet speaking in defence of their conduct. Gladstone most earnestly and eloquently condemning them, and declaring that action and not resolutions became the House of Commons, and that though he agreed to the language and spirit of the resolutions, if action were proposed he would support the proposal, and taunted the conservatives with silently abetting "a gigantic innovation on the const.i.tution."

Loudly and tempestuously cheered by the radicals, and no one else.

Yet he was the true conservative at this moment. But ought he to have spoken this as chancellor of the exchequer, and from the treasury bench, after the first lord of the treasury had spoken in almost totally opposite sense? The answer may be that it was a House of Commons, and not a government question. I fear he is very unwell, and I greatly fear killing himself. 17.-"I have lived," he said, speaking of the debate on the Lords and the paper duty, "to hear a radical read a long pa.s.sage from Mr. Burke amid the jeers and scoffs of the so-called conservatives."

The struggle still went on:-

_July 20._-H. of C. Lost my Savings Bank Monies bill; my _first_ defeat in a measure of finance in the H. of C. This ought to be very good for me; and I earnestly wish to make it so.

_Aug. 6._-H. of C. Spoke 1- hour on the Paper duty; a favourable House. Voted in 266-233. A most kind and indeed notable reception afterwards.

_Aug. 7._-This was a day of congratulations from many kind M.P.'s.

The occasion of the notable reception was the moving of his resolutions reducing the customs duty on imported paper to the level of the excise duty. This proceeding was made necessary by the treaty, and was taken to be, as Mr. Gladstone intended that it should be, a clear indication of further determination to abolish customs duty and excise duty alike. The first resolution was carried by 33, and when he rose to move the second the cheering from the liberal benches kept him standing for four or five minutes-cheering intended to be heard the whole length of the corridor that led to another place.(25)

(M10) The great result, as Greville says in a sentence that always amused the chief person concerned, is "to give some life to half-dead, broken-down, and tempest-tossed Gladstone." In this rather tame fashion the battle ended for the session, but the blaze in the bosom of the chancellor of the exchequer was inextinguishable, as the Lords in good time found out. Their rejection of the Paper Duties bill must have had no inconsiderable share in propelling him along the paths of liberalism. The same proceeding helped to make him more than ever the centre of popular hopes. He had taken the unpopular side in resisting the inquiry into the miscarriages of the Crimea, in pressing peace with Russia, in opposing the panic on papal aggression, on the bill for divorce, and on the bill against church rates; and he represented with fidelity the const.i.tuency that was least of all in England in accord with the prepossessions of democracy. Yet this made no difference when the time came to seek a leader. "There is not," Mr. Bright said, in the course of this quarrel with the Lords, "a man who labours and sweats for his daily bread, there is not a woman living in a cottage who strives to make her home happy for husband and children, to whom the words of the chancellor of the exchequer have not brought hope, and to whom his measures, which have been defended with an eloquence few can equal and with a logic none can contest, have not administered consolation."

At the end of the session Phillimore reports:-

_Aug. 12._-Gladstone is physically weak, requires rest, air, and generous living. He discoursed without the smallest reserve upon political affairs, the feebleness of the government, mainly attributable to the absence of any effective head; Palmerston's weakness in the cabinet, and his low standard for all public conduct. He said in Peel's cabinet, a cabinet minister if he had a measure to bring forward consulted Peel and then the cabinet.

n.o.body thought of consulting Palmerston first, but brought his measure at once to the cabinet. Gladstone said his work in the cabinet had been so constant and severe that his work in the House of Commons was refreshing by comparison. I never heard him speak so strongly of the timidity and vacillation of his comrades. The last victory, which alone preserved the government from dropping to pieces, was won in spite of them.

V

In a contemporary memorandum (May 30, 1860) on the opinions of the cabinet at this date Mr. Gladstone sets out the princ.i.p.al trains of business with which he and his colleagues were called upon to deal. It is a lively picture of the vast and diverse interests of a minister disposed to take his cabinet duties seriously. It is, too, a curious chart of the currents and cross-currents of the time. Here are the seven heads as he sets them down:-

(1) The Italian question-Austrian or anti-Austrian; (2) Foreign policy in general-leaning towards calm and peace, or brusqueness and war; (3) Defences and expenditure-alarm and money charges on the one side, modest and timid retrenchment with confidence in our position on the other; (4) Finance, as adapted to the one or the other of these groups of ideas and feelings respectively; (5) Reform-ultra-conservative on the one side, on the other, no fear of the working cla.s.s and the belief that something _real_ though limited, should be done towards their enfranchis.e.m.e.nt; (6) Church matters may perhaps be also mentioned, though there has been no collision in regard to them, whatever difference there may be-they have indeed held a very secondary place amidst the rude and constant shocks of the last twelve months; (7) Lastly, the _coup d'etat_ on the paper duties draws a new line of division.

(M11) "In the many pa.s.sages of argument and opinion," Mr. Gladstone adds, "the only person from whom I have never to my recollection differed on a serious matter during this anxious twelvemonth is Milner Gibson." The reader will find elsewhere the enumeration of the various parts in this complex dramatic piece.(26) Some of the most Italian members of the cabinet were also the most combative in foreign policy, the most martial in respect of defence, the most stationary in finance. In the matter of reform, some who were liberal as to the franchise were conservative as to redistribution. In matters ecclesiastical, those who like Mr. Gladstone were most liberal elsewhere, were (with sympathy from Argyll) "most conservative and church-like."

On the paper duties there are, I think, only three members of the cabinet who have a strong feeling of the need of a remedy for the late aggression-Lord John Russell, Gibson, W. E. G.-and Lord John Russell leans so much upon Palmerston in regard to foreign affairs that he is weaker in other subjects when opposed to him, than might be desired. With us in feeling are, more or less, Newcastle, Argyll, Villiers. On the other side, and pretty decidedly-first and foremost, Lord Palmerston; after him, the Chancellor, Granville, Lewis, Wood, Cardwell, Herbert. It is easy to judge what an odd shifting of parts takes place in our discussions. We are not Mr. Burke's famous mosaic, but we are a mosaic in solution, that is to say, a kaleidoscope.(27) When the instrument turns, the separate pieces readjust themselves, and all come out in perfectly novel combinations. Such a cabinet ought not to be acephalous.

Before he had been a year and a half in office, Mr. Gladstone wrote to Graham (Nov. 27, '60): "We live in anti-reforming times. All improvements have to be urged in apologetic, almost in supplicatory tones. I sometimes reflect how much less liberal as to domestic policy in any true sense of the word, is this government than was Sir Robert Peel's; and how much the tone of ultra-toryism prevails among a large portion of the liberal party." "I speak a literal truth," he wrote to Cobden, "when I say that in these days it is more difficult to save a shilling than to spend a million." "The men," he said, "who ought to have been breasting and stemming the tide have become captains general of the alarmists," and he deplored Cobden's refusal of office when the Palmerston government was formed. All this only provoked him to more relentless energy. Well might Prince Albert call it incredible.

VI

After the "gigantic innovation" perpetrated by the Lords, Mr. Gladstone read to the cabinet (June 30, 1860) an elaborate memorandum on the paper duty and the taxing powers of the two Houses. He dealt fully alike with the fiscal and the const.i.tutional aspects of a situation from which he was "certain that nothing could extricate them with credit, except the united, determined, and even authoritative action of the government." He wound up with a broad declaration that, to any who knew his tenacity of purpose when once roused, made it certain that he would never acquiesce in the pretensions of the other House. The fiscal consideration, he concluded, "is nothing compared with the vital importance of maintaining the exclusive rights of the House of Commons in matter of supply. There is hardly any conceivable interference of the Lords hereafter, except sending down a tax imposed by themselves, which would not be covered by this precedent. It may be said they are wise and will not do it. a.s.suming that they will be wise, yet I for one am not willing that the House of Commons should hold on sufferance in the nineteenth century what it won in the seventeenth and confirmed and enlarged in the eighteenth."

The intervening months did not relax this valiant and patriotic resolution. He wrote down a short version of the story in the last year of his life:-

The hostilities in China reached a rather early termination, and in the early part of the session of 1861 it appeared almost certain that there would be a surplus for 1861-2 such as I thought would make it possible again to operate on the paper duties.

Unfortunately, the income tax was at so high a rate that we could not reasonably hope to carry paper duty repeal without taking a penny off the tax. The double plan strained the probable means afforded by the budget. In this dilemma I received most valuable aid from the shrewd ingenuity of Milner Gibson, who said: Why not fix the repeal of the paper duty at a later date than had been intended, say on the 10th of October, which will reduce the loss for the year? I gladly adopted the proposition, and proposed a budget reducing the income tax by one penny, and repealing the paper duties from October 10, 1861. With this was combined what was more essential than either-the adoption of a new practice with respect to finance, which would combine all the financial measures of the year in a single bill. We had separate discussions in the cabinet on the const.i.tutional proposal [the single bill]. It was not extensively resisted there, though quietly a good deal misliked. I rather think the chancellor, Campbell, took strong objection to it; and I well remember that the Duke of Newcastle gave valuable and telling aid. So it was adopted. The budget was the subject of a fierce discussion, in which Lord Palmerston appeared to me to lose his temper for the first and only time. The plan, however, to my great delight, was adopted. It was followed by a strange and painful incident. I received with astonishment from Lord Palmerston, immediately after the adoption of the budget, a distinct notice that he should not consider it a cabinet question in the House of Commons, where it was known that the opposition and the paper makers would use every effort to destroy the plan. I wrote an uncontroversial reply (with some self-repression) and showed it to Granville, who warmly approved, and was silent on the letter of Lord Palmerston. The battle in parliament was hard, but was as nothing to the internal fighting; and we won it. We likewise succeeded in the plan of uniting the financial proposals in one bill. To this Spencer Walpole gave honourable support; and it became a standing rule. The House of Lords, for its misconduct, was deservedly extinguished, in effect, as to all matters of finance.