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1859–1860] endeavoured to solve the first of these difficulties by sending for Lord Granville, who led the Liberal party in the Lords, and authorizing him to form a government which should combine, as far as possible, all the more prominent Liberals. The attempt, however, failed, and the queen thereupon fell back upon Lord Palmerston. Lord John Russell agreed to accept office as foreign minister; Gladstone consented to take the chancellorship of the exchequer. Cobden was offered, but declined, the presidency of the Board of Trade; and the post which he refused was conferred on a prominent free trader, who had associated himself with Cobden’s fortunes, Milner Gibson. Thus Lord Palmerston had succeeded in combining in one ministry the various representatives of political progress. He had secured the support of the Peelites, who had left him after the fall of Lord Aberdeen in 1855, and of the free traders, who had done so much to defeat him in 1857 and 1858. His new administration was accordingly based on a broader bottom, and contained greater elements of strength than his former cabinet. And the country was requiring more stable government. The first three ministries of the queen had endured from the spring of 1835 to the spring of 1852, or for very nearly seventeen years; but the next seven years had seen the formation and dissolution of no less than four cabinets. It was felt that these frequent changes were unfortunate for the country, and every one was glad to welcome the advent of a government which seemed to promise greater permanence. That promise was fulfilled. The administration which Lord Palmerston succeeded in forming in 1859 endured till his death in 1865, and with slight modifications, under its second chief Lord John (afterwards Earl) Russell, till the summer of 1866. It had thus a longer life than any cabinet which had governed England since the first Reform Act. But it owed its lasting character to the benevolence of its opponents rather than to the enthusiasm of its supporters. The Conservatives learned to regard the veteran statesman, who had combined all sections of Liberals under his banner, as the most powerful champion of Conservative principles; a virtual truce of parties was established during his continuance in office; and, for the most part of his ministry, a tacit understanding existed that the minister, on his side, should pursue a Conservative policy, and that the Conservatives, on theirs, should abstain from any real attempt to oust him from power. Lord John Russell, indeed, was too earnest in his desire for reform to abstain from one serious effort to accomplish it. Early in 1860 he proposed, with the sanction of the cabinet, a measure providing for the extension of the county franchise to £10 householders, of the borough franchise to £6 householders, and for a moderate redistribution of seats. But the country, being in enjoyment of considerable prosperity, paid only a languid attention to the scheme; its indifference was reflected in the House; the Conservatives were encouraged in their opposition by the lack of interest which the new bill excited, and the almost unconcealed dislike of the prime minister to its provisions. The bill, thus steadily opposed and half-heartedly supported, made only slow progress; and at last it was withdrawn by its author. He did not again attempt during Lord Palmerston’s life to reintroduce the subject. Absorbed in the work of the foreign office, which at this time was abnormally active, he refrained from pressing home the arguments for internal reform.

In one important department, however, the ministry departed from the Conservative policy it pursued in other matters. Gladstone signalized his return to the exchequer by introducing a series of budgets which excited keen opposition at the time, but in the result largely added

to the prosperity of the country. The first of these great budgets, in 1860, was partly inspired by the necessity of adapting the fiscal system to meet the requirements of a commercial treaty which, mainly through Cobden’s exertions, had been concluded with the emperor of the French. The treaty bound France to reduce her duties on English coal and iron, and on many manufactured articles; while, in return, Great Britain undertook to sweep away the duties on all manufactured goods, and largely to reduce those on French wines. But Gladstone was not content with these great alterations, which involved a loss of nearly £1,200,000 a year to the exchequer; he voluntarily undertook to sacrifice another million on what he called a supplemental measure of customs reform. He proposed to repeal the duties on paper, by which means he hoped to increase the opportunities of providing cheap literature for the people. The budget of 1860 produced a protracted controversy. The French treaty excited more criticism than enthusiasm on both sides of the Channel. In France the manufacturers complained that they would be unable to stand against the competition of English goods. In England many people thought that Great Britain was wasting her resources and risking her supremacy by giving the French increased facilities for taking her iron, coal and machinery, and that no adequate advantage could result from the greater consumption of cheap claret. But the criticism which the French treaty aroused was drowned in the clamour which was created by the proposed repeal of the paper duties. The manufacture of paper was declared to be a struggling industry, which would be destroyed by the withdrawal of protection. The dissemination of cheap literature and the multiplication of cheap newspapers could not compensate the nation for the ruin of an important trade. If money could be spared, moreover, for the remission of taxation, the paper duties were much less oppressive than those on some other articles. The tax on tea, for example, which had been raised during the late war to no less than 1s. 5d. a &#8468;, was much more injurious; and it would be far wiser—so it was contended—to reduce the duty on tea than to abandon the duties on paper. Notwithstanding

the opposition which the Paper Duties Bill undoubtedly excited, the proposal was carried in the Commons; it was, however, thrown out in the Lords, and its rejection led to a crisis which seemed at one time to threaten the good relations between the two houses of parliament. It was argued that if the Lords had the right to reject a measure remitting existing duties, they had in effect the right of imposing taxation, since there was no material difference between the adoption of a new tax and the continuance of an old one which the Commons had determined to repeal. Lord Palmerston, however, with some tact postponed the controversy for the time by obtaining the appointment of a committee to search for precedents; and, after the report of the committee, he moved a series of resolutions affirming the right of the Commons to grant aids and supplies as their exclusive privilege, stating that the occasional rejection of financial measures by the Lords had always been regarded with peculiar jealousy, but declaring that the Commons had the remedy in their own hands by so framing bills of supply as to secure their acceptance. In accordance with this suggestion the Commons in the following year again resolved to repeal the paper duties; but, instead of embodying their decision in a separate bill, they included it in the same measure which dealt with all the financial arrangements of the year, and thus threw on the Lords the responsibility of either accepting the proposal, or of paralysing the whole machinery of administration by depriving the crown of the supplies which were required for the public services. The Lords were not prepared to risk this result, and they accordingly accepted a reform which they could no longer resist, and the bill became law. In order to enable him to accomplish these great changes, Gladstone temporarily raised the income tax, which he found at 9d. in the £, to 10d. But the result of his reforms was so marked that he was speedily able to reduce it. The revenue increased by leaps and bounds, and the income tax was gradually reduced till it stood at 4d. in the closing years of the administration. During the same period the duty on tea was reduced from 1s. 5d. to 6d. a &#8468;; and the national debt was diminished from rather more than £800,000,000 to rather less than £780,000,000, the charge for the debt declining, mainly through the falling in of the long annuities, by some £2,600,000 a year. With the possible exception of Sir Robert Peel’s term of office, no previous period of British history had been memorable for a series of more remarkable financial reforms. Their success redeemed the character of the administration. The