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William Ewart Gladstone; from a painting by Sir J. E. Millais, P.R.A, in the National Gallery.

Rarely, if ever, in the course of our history has there been such a mixture of high considerations, legislative, military, commercial, foreign, and constitutional, each for the most part traversing the rest, and all capable of exercising a vital influence on public policy, as in the long and complicated session of 1860. The commercial treaty first struck the keynote of the year; and the most deeply marked and peculiar feature of the year was the silent conflict between the motives and provisions of the treaty on the one hand, and the excitement and exasperation of military sentiment on the other.--GLADSTONE.

This description extends in truth much beyond the session of a given year to the whole existence of the new cabinet, and through a highly important period in Mr. Gladstone's career. More than that, it directly links our biographic story to a series of events that created kingdoms, awoke nations, and re-made the map of Europe. The opening of this long and complex episode was the Italian revolution. Writing to Sir John Acton in 1864 Mr. Gladstone said to him of the budget of 1860, "When viewed as a whole, it is one of the few cases in which my fortunes as an individual have been closely associated with matters of a public and even an historic interest." I will venture to recall in outline to the reader's memory the ampler background of this striking epoch in Mr. Gladstone's public life. The old principles of the European state-system, and the old principles that inspired the vast contentions of ages, lingered but they seemed to have grown decrepit. Divine right of kings, providential pre-eminence of dynasties, balance of power, sovereign independence of the papacy,--these and the other accredited catchwords of history were giving place to the vague, indefinable, shifting, but most potent and inspiring doctrine of Nationality. On no statesman of this time did that fiery doctrine with all its tributaries gain more commanding hold than on Mr. Gladstone. "Of the various and important incidents," he writes in a memorandum, dated Braemar, July 16, 1892, "which associated me almost unawares with foreign affairs in Greece , in the Neapolitan kingdom , and in the Balkan peninsula and the Turkish empire , I will only say that they all contributed to forward the action of those home causes more continuous in their operation, which, without in any way effacing my old sense of reverence for the past, determined for me my place in the present and my direction towards the future."

At the opening of the seventh decade of the century--ten years of such moment for our western world--the relations of the European states with one another had fallen into chaos. The perilous distractions of 1859-62 were the prelude to conflicts that after strange and mighty events at Sadowa, Venice, Rome, Sedan, Versailles, came to their close in 1871. The first breach in the ramparts of European order set up by the kings after Waterloo, was the independence of Greece in 1829. Then followed the transformation of the power of the Turk over Roumanians and Serbs from despotism to suzerainty. In 1830 Paris overthrew monarchy by divine right; Belgium cut herself asunder from the supremacy of the Dutch; then Italians and Poles strove hard but in vain to shake off the yoke of Austria and of Russia. In 1848 revolts of race against alien dominion broke out afresh in Italy and Hungary. The rise of the French empire, bringing with it the principle or idiosyncrasy of its new ruler, carried this movement of race into its full ascendant. Treaties were confronted by the doctrine of Nationality. What called itself Order quaked before something that for lack of a better name was called the Revolution. Reason of State was eclipsed by the Rights of Peoples. Such was the spirit of the new time.

The end of the Crimean war and the peace of Paris brought a temporary and superficial repose. The French ruler, by strange irony at once the sabre of Revolution and the trumpet of Order, made a beginning in urging the constitution of a Roumanian nationality, by uniting the two Danubian principalities in a single quasi-independent state. This was obviously a further step towards that partition of Turkey which the Crimean war had been waged to prevent. Austria for reasons of her own objected, and England, still in her Turcophil humour, went with Austria against France for keeping the two provinces, although in fiscal and military union, politically divided. According to the fashion of that time--called a comedy by some, a homage to the democratic evangel by others--a popular vote was taken. Its result was ingeniously falsified by the sultan ; western diplomacy insisted that the question of union should be put afresh. Mr. Gladstone, not then in office, wrote to Lord Aberdeen :--

The course taken about the Principalities has grieved me. I do not mean so much this or that measure, as the principle on which it is to rest. I thought we made war in order to keep Russia out, and then suffer life, if it would, to take the place of death. But it now seems to be all but avowed, that the fear of danger, not to Europe, but to Islam,--and Islam not from Russia, but from the Christians of Turkey,--is to be a ground for stinting their liberties.

In no long time Roumania was created into a virtually independent state. Meanwhile, much against Napoleon's wish and policy, these proceedings chilled the alliance between France and England. Other powers grew more and more uneasy, turning restlessly from side to side, like sick men on their beds. The object of Russia ever since the peace had been, first to break down the intimacy between England and France, by flattering the ambition and enthusiasm of the French Emperor; next to wreak her vengeance on Austria for offences during the Crimean war, still pronounced unpardonable. Austria, in turn, was far too slow for a moving age; she entrenched herself behind forms with too little heed to substance; and neighbours mistook her dulness for dishonesty. For the diplomatic air was thick and dark with suspicion. The rivalry of France and Austria in Italy was the oldest of European stories, and for that matter the Lombardo-Venetian province was a possession of material value to Austria, for while only containing one-eighth of her population, it contributed one-fourth of her revenue.

Among Cavour's difficulties at this most critical moment was the attitude of England. The government of Lord Derby, true to the Austrian sympathies of his party, and the German sympathies of the court, accused Italy of endangering the peace of Europe. "No," said Cavour, "it is the statesmen, the diplomatists, the writers of England, who are responsible for the troubled situation of Italy; for is it not they who have worked for years to kindle political passion in our peninsula, and is it not England that has encouraged Sardinia to oppose the propaganda of moral influences to the illegitimate predominance of Austria in Italy?" To Mr. Gladstone, who had seen the Austrian forces in Venetia and in Lombardy, he said, "You behold for yourself, that it is Austria who menaces us; here we are tranquil; the country is calm; we will do our duty; England is wrong in identifying peace with the continuance of Austrian domination." Two or three days later the Piedmontese minister made one of those momentous visits to Paris that forced a will less steadfast than his own.

The French Emperor in his dealings with Cavour had entangled himself, in Mr. Gladstone's phrase, with "a stronger and better informed intellect than his own." "Two men," said Guizot, "at this moment divide the attention of Europe, the Emperor Napoleon and Count Cavour. The match has begun. I back Count Cavour." The game was long and subtly played. It was difficult for the ruler who had risen to power by bloodstained usurpation and the perfidious ruin of a constitution, to keep in step with a statesman, the inspiring purpose of whose life was the deliverance of his country by the magic of freedom. Yet Napoleon was an organ of European revolution in a double sense. He proclaimed the doctrine of nationality, and paid decorous homage to the principle of appeal to the popular voice. In time England appeared upon the scene, and by his flexible management of the two western powers, England and France, Cavour executed the most striking political transformation in the history of contemporary Europe. It brought, however, as Mr. Gladstone speedily found, much trouble into the relations of the two western powers with one another.

The overthrow of the Derby government and the accession of the whigs exactly coincided in time with the struggle between Austria and the Franco-Sardinian allies on the bloody fields of Magenta and Solferino. A few days after Mr. Gladstone took office, the French and Austrian emperors and King Victor Emmanuel signed those preliminaries of Villafranca , which summarily ended an inconclusive war by the union of Lombardy to the Piedmontese kingdom, and the proposed erection of an Italian federation over which it was hoped that the pope might preside, and of which Venetia, still remaining Austrian, should be a member. The scheme was intrinsically futile, but it served its turn. The Emperor of the French was driven to peace by mixed motives. The carnage of Solferino appalled or unnerved him; he had revealed to his soldiers and to France that their ruler had none of the genius of a great commander; the clerical party at home fiercely assailed the prolongation of a war that must put the pope in peril; the case of Poland, the case of Hungary, might almost any day be kindled into general conflagration by the freshly lighted torch of Nationality; above all, Germany might stride forward to the Rhine to avenge the repulse of Austria on the Po and the Mincio.

Whatever the motive, Villafranca was a rude check to Italian aspirations. Cavour in poignant rage peremptorily quitted office, rather than share responsibility for this abortive end of all the astute and deep-laid combinations for ten years past, that had brought the hated Austrian from the triumph of Novara down to the defeat of Solferino. Before many months he once more grasped the helm. In the interval the movement went forward as if all his political tact, his prudence, his suppleness, his patience, and his daring, had passed into the whole population of central Italy. For eight months after Villafranca, it seemed as if the deep and politic temper that built up the old Roman Commonwealth, were again alive in Bologna, Parma, Modena, Florence. When we think of the pitfalls that lay on every side, how easily France might have been irritated or estranged, what unseasonable questions might not unnaturally have been forced forward, what mischief the voice and spirit of the demagogue might have stirred up, there can surely be no more wonderful case in history of strong and sagacious leaders, Cavour, Farini, Ricasoli, the Piedmontese king, guiding a people through the ferments of revolt, with discipline, energy, legality, order, self-control, to the achievement of a constructive revolution. Without the sword of France the work could not have been begun; but it was the people and statesmen of northern and central Italy who in these eight months made the consummation possible. And England, too, had no inconsiderable share; for it was she who secured the principle of non-intervention by foreign powers in Italian affairs; it was she who strongly favoured the annexation of central Italy to the new kingdom in the north. Here it was that England directly and unconsciously opened the way to a certain proceeding that when it came to pass she passionately resented. In the first three weeks of March Victor Emmanuel legalised in due form the annexation of the four central states to Piedmont and Lombardy, and in the latter half of April he made his entry into Florence. Cavour attended him, and strange as it sounds, he now for the first time in his life beheld the famed city,--centre of undying beauty and so many glories in the history of his country and the genius of mankind. In one spot at least his musings might well have been profound--the tomb of Machiavelli, the champion of principles three centuries before, to guide that armed reformer, part fox part lion, who should one day come to raise up an Italy one and independent. The Florentine secretary's orb never quite sets, and it was now rising to a lurid ascendant in the politics of Europe for a long generation to come, lighting up the unblest gospel that whatever policy may demand justice will allow.

The great unsolved problem was the pope. The French ambassador at the Vatican in those days chanced to have had diplomatic experience in Turkey. He wrote to his government in Paris that the pope and his cardinals reminded him of nothing so much as the sultan and his ulemas--the same vacillation, the same shifty helplessness, the same stubborn impenetrability. The Cross seemed in truth as grave a danger in one quarter of Europe as was the Crescent in another, and the pope was now to undergo the same course of territorial partition as had befallen the head of a rival faith. For ten years the priests had been maintained in their evilly abused authority by twenty thousand French bayonets--the bayonets of the empire that the cardinals with undisguised ingratitude distrusted and hated. The Emperor was eager to withdraw his force, if only he were sure that no catastrophe would result to outrage the catholic world and bring down his own throne.

In August Garibaldi crossed from Sicily to the mainland and speedily made his triumphant entry into Naples. The young king Francis withdrew before him at the head of a small force of faithful adherents to Capua, afterwards to Gaeta. At the Volturno the Garibaldians, meeting a vigorous resistance, drove back a force of the royal troops enormously superior in numbers. On the height of this agitated tide, and just in time to forestall a fatal movement of Garibaldi upon Rome, the Sardinian army had entered the territories of the pope .

In the series of transactions that I have sketched, the sympathies of Mr. Gladstone never wavered. From the appearance of his Neapolitan letters in 1851, he lost no opportunity of calling attention to Italian affairs. In 1854 he brought before Lord Clarendon the miserable condition of Poerio, Settembrini, and the rest. He took great personal trouble in helping to raise and invest a fund for the Settembrini family, and elaborate accounts in his own handwriting remain. In 1855 he wrote to Lord John Russell, then starting for Vienna, as to a rumour of the adhesion of Naples to the alliance of the western powers: "In any case I can conceive it possible that the Vienna conferences may touch upon Italian questions; and I sincerely rely upon your humanity as well as your love of freedom, indeed the latter is but little in question, to plead for the prisoners in the kingdom of the two Sicilies detained for political offences, real or pretended. I do not ask you to leave any greater duty undone, but to bear in mind the singular claims on your commiseration of these most unhappy persons, if occasion offers."

As we have already seen, it was long before he advanced to the view of the thoroughgoing school. Like nearly all his countrymen, he was at first a reformer, not a revolutionary. To the Marquis Dragonetti, Mr. Gladstone wrote from Broadstairs in 1854:--

So far removed at this date was Mr. Gladstone from the glorified democracy of the Mazzinian propaganda. He told Cobden that when he returned from Corfu in the spring of 1859, he found in England not only a government with strong Austrian leanings, but to his great disappointment not even the House of Commons so alive as he could have wished upon the Italian question. "It was in my opinion the authority and zeal of Lord Palmerston and Lord John Russell in this question, that kindled the country."

The heavy load of his other concerns did not absolve him in his conscience from duty to the Italian cause:--

In a cabinet memorandum , he declared himself bound in candour to admit that the Emperor had shown, "though partial and inconsistent, indications of a genuine feeling for the Italians--and far beyond this he has committed himself very considerably to the Italian cause in the face of the world. When in reply to all that, we fling in his face the truce of Villafranca, he may reply--and the answer is not without force--that he stood single-handed in a cause when any moment Europe might have stood combined against him. We gave him verbal sympathy and encouragement, or at least criticism; no one else gave him anything at all. No doubt he showed then that he had undertaken a work to which his powers were unequal; but I do not think that, when fairly judged, he can be said to have given proof by that measure of insincerity or indifference." This was no more than justice, it is even less; and both Italians and Englishmen have perhaps been too ready to forget that the freedom of Italy would have remained an empty hope if Napoleon iii. had not unsheathed his sword.

After discussing details, Mr. Gladstone laid down in his memorandum a general maxim for the times, that "the alliance with France is the true basis of peace in Europe, for England and France never will unite in any European purpose which is radically unjust." He put the same view in a letter to Lacaita a few months later : "A close alliance between England and France cannot be used for mischief, and cannot provoke any dangerous counter combination; but a close alliance between England and other powers would provoke a dangerous counter combination immediately, besides that it could not in itself be trusted. My own leaning, therefore, is not indeed to place reliance on the French Emperor, but to interpret him candidly, and in Italian matters especially to recollect the great difficulties in which he is placed, because, whether by his own fault or not, he cannot reckon upon strong support from England when he takes a right course. Because he has his own ultramontane party in France to deal with, whom, especially if not well supported abroad, he cannot afford to defy."

As everybody soon saw, it was the relation of Louis Napoleon to the French ultramontanes that constituted the tremendous hazard of the Piedmontese invasion of the territories of the pope. This critical proceeding committed Cavour to a startling change, and henceforth he was constrained to advance to Italian unity. A storm of extreme violence broke upon him. Gortchakoff said that if geography had permitted, the Czar would betake himself to arms in defence of the Bourbon king. Prussia talked of reviving the holy alliance in defence of the law of nations against the overweening ambition of Piedmont. The French ambassador was recalled from Turin. Still no active intervention followed.

One great power alone stood firm, and Lord John Russell wrote one of the most famous despatches in the history of our diplomacy . The governments of the pope and the king of the Two Sicilies, he said, provided so ill for the welfare of their people, that their subjects looked to their overthrow as a necessary preliminary to any improvement. Her Majesty's government were bound to admit that the Italians themselves are the best judges of their own interests. Vattel, that eminent jurist, had well said that when a people for good reasons take up arms against an oppressor, it is but an act of justice and generosity to assist brave men in the defence of their liberties. Did the people of Naples and the Roman States take up arms against their government for good reasons? Upon this grave matter, her Majesty's government held that the people in question are themselves the best judges of their own affairs. Her Majesty's government did not feel justified in declaring that the people of Southern Italy had not good reasons for throwing off their allegiance to their former governments. Her Majesty's government, therefore, could not pretend to blame the King of Sardinia for assisting them. So downright was the language of Lord John. We cannot wonder that such words as these spread in Italy like flame, that people copied the translation from each other, weeping over it for joy and gratitude in their homes, and that it was hailed as worth more than a force of a hundred thousand men.

The sensation elsewhere was no less profound, though very different. The three potentates at Warsaw viewed the despatch with an emotion that was diplomatically called regret, but more resembled horror. The Prince Regent of Prussia, afterwards the Emperor William, told Prince Albert that it was a tough morsel, a disruption of the law of nations and of the holy ties that bind peoples to their sovereigns. Many in England were equally shocked. Even Sir James Graham, for instance, said that he would never have believed that such a document could have passed through a British cabinet or received the approval of a British sovereign; India, Ireland, Canada would await the application of the fatal doctrine that it contained; it was a great public wrong, a grave error; and even Garibaldi and Mazzini would come out of the Italian affair with cleaner hands. Yet to-day we may ask ourselves, was it not a little idle to talk of the holy ties that bind nations to their sovereigns, in respect of a system under which in Naples thousands of the most respectable of the subjects of the king were in prison or in exile; in the papal states ordinary justice was administered by rough-handed German soldiers, and young offenders shot by court-martial at the drumhead; and in the Lombardo-Venetian provinces press offences were judged by martial law, with chains, shooting, and flogging for punishment. Whatever may be thought of Lord John and his doctrine, only those who hold to the converse doctrine, that subjects may never rise against a king, nor ever under any circumstances seek succour from foreign power, will deny that the cruelties of Naples and the iniquities connected with the temporal authority of the clergy in the states of the church, constituted an irrefragable case for revolt.

Within a few weeks after the troops of Victor Emmanuel had crossed the frontier , the papal forces had been routed, and a popular vote in the Neapolitan kingdom supported annexation to Piedmont. The papal states, with the exception of the patrimony of St. Peter in the immediate neighbourhood of Rome itself, fell into the hands of the king. Victor Emmanuel and Garibaldi rode into Naples side by side . The Bourbon flag after a long stand was at last lowered at the stronghold of Gaeta ; the young Bourbon king became an exile for the rest of his life; and on February 18 the first parliament of united Italy assembled at Turin--Venice and Rome for a short season still outside. A few months before, Mr. Gladstone had written a long letter to d'Azeglio. It was an earnest exposition of the economic and political ideals that seemed to shine in the firmament above a nation now emerging from the tomb. The letter was to be shown to Cavour. "Tell that good friend of ours," he replied, "that our trade laws are the most liberal of the continent; that for ten years we have been practising the maxims that he exhorts us to adopt; tell him that he preaches to the converted." Then one of those disasters happened that seem to shake the planetary nations out of their pre-appointed orbits. Cavour died.

It was said that by this treaty the British nation was about blindly to throw herself into the arms of this constant and uniform foe.... Did it not much rather, by opening new sources of wealth, speak this forcible language--that the interval of peace, as it would enrich the nation, would also prove the means of enabling her to combat her enemy with more effect when the day of hostility should come? It did more than this; by promoting habits of friendly intercourse and of mutual benefit, while it invigorated the resources of Britain, it made it less likely that she should have occasion to call forth these resources.--PITT .

As we survey the panorama of a great man's life, conspicuous peaks of time and act stand out to fix the eye, and in our statesman's long career the budget of 1860 with its spurs of appendant circumstance, is one of these commanding points. In the letter to Acton already quoted , Mr. Gladstone says:--

Both Cobden and I, says Mr. Gladstone, were keenly in favour of such a treaty , without intending thereby to signify the smallest disposition to the promotion of tariff treaties in general. I had been an active party to the various attempts under Sir Robert Peel's government to conclude such treaties, and was as far as possible removed from any disposition to the renewal of labour which was in itself so profitless, and which was dangerously near to a practical assertion of a false principle, namely that the reductions of indirect taxation, permitted by fiscal considerations, are in themselves injurious to the country that makes them, and are only to be entertained when a compensation can be had for them. ... The correspondence which would in the ordinary course have been exchanged between the foreign offices of the two countries, was carried through in a series of personal letters between Mr. Cobden and myself. I remember indeed that the Emperor or his government were desirous to conceal from their own foreign minister the fact that such a measure was in contemplation. On our side, the method pursued was only recommended by practical considerations. I contemplated including the conditions of the French treaty in a new and sweeping revision of the tariff, the particulars of which it was of course important to keep from the public eye until they were ready to be submitted to parliament.

At the end of 1859 the question of the treaty was brought into the cabinet, and there met with no general opposition, though some objection was taken by Lewis and Wood, based on the ground that they ought not to commit themselves by treaty engagements to a sacrifice of revenue, until they had before them the income and the charges of the year. Writing to his wife about some invitation to a country house, Mr. Gladstone says :--

Of course in his zeal for the treaty and its connection with tariff reform, Mr. Gladstone believed that the operation would open a great volume of trade and largely enrich the country. But in one sense this was the least of it:--

I had a reason of a higher order. The French Emperor had launched his project as to Savoy and Nice. It should have been plain to all those who desired an united Italy, that such an Italy ought not to draw Savoy in its wake; a country severed from it by the mountains, by language, by climate, and I suppose by pursuits. But it does not follow that Savoy should have been tacked on to France, while for the annexation of Nice it was difficult to find a word of apology. But it could scarcely be said to concern our interests, while there was not the shadow of a case of honour. The susceptibilities of England were, however, violently aroused. Even Lord Russell used imprudent language in parliament about looking for other allies. A French panic prevailed as strong as any of the other panics that have done so much discredit to this country. For this panic, the treaty of commerce with France was the only sedative. It was in fact a counter-irritant; and it aroused the sense of commercial interest to counteract the war passion. It was and is my opinion, that the choice lay between the Cobden treaty and not the certainty, but the high probability, of a war with France.

The financial fabric that rose from the treaty was one of the boldest of all his achievements, and the reader who seeks to take the measure of Mr. Gladstone as financier, in comparison with any of his contemporaries in the western world, will find in this fabric ample material. Various circumstances had led to an immense increase in national expenditure. The structure of warships was revolutionised by the use of iron in place of wood. It was a remarkable era in artillery, and guns were urgently demanded of new type. In the far East a quarrel had broken out with the Chinese. The threats of French officers after the plot of Orsini had bred a sense of insecurity in our own borders. Thus more money than ever was required; more than ever economy was both unpopular and difficult. The annual estimates stood at seventy millions; when Mr. Gladstone framed his famous budget seven years before, that charge stood at fifty-two millions. If the sole object of a chancellor of the exchequer be to balance his account, Mr. Gladstone might have contented himself with keeping the income-tax and duties on tea and sugar as they were, meeting the remissions needed by the French treaty out of the sum released by the expiry of the long annuities. Or he might have reduced tea and sugar to a peace rate, and raised the income-tax from ninepence to a shilling. Instead of taking this easy course, Mr. Gladstone after having relinquished upwards of a million for the sake of the French treaty, now further relinquished nearly a million more for the sake of releasing 371 articles from duties of customs, and a third million in order to abolish the vexatious excise duty upon the manufacture of paper. Nearly one million of all this loss he recouped by the imposition of certain small charges and minor taxes, and by one or two ingenious expedients of collection and account, and the other two millions he made good out of the lapsed annuities. Tea and sugar he left as they were, and the income-tax he raised from ninepence to tenpence. Severe economists, not quite unjustly, called these small charges a blot on his escutcheon. Time soon wiped it off, for in fact they were a failure.

The removal of the excise duty upon paper proved to be the chief stumbling-block, and ultimately it raised more excitement than any other portion of the scheme. The fiscal project became by and by associated with a constitutional struggle between Lords and Commons. In the Commons the majority in favour of abolishing the duty sank from fifty-three to nine; troubles with China caused a demand for new expenditure; the yield from the paper duty was wanted; and the Lords finding in all this a plausible starting-point for a stroke of party business, or for the assertion of the principle that to reject a repealing money bill was not the same thing as to meddle with a bill putting on a tax, threw it out. Then when the Lords had rejected the bill, many who had been entirely cool about taking off the 'taxes upon knowledge'--for this unfavourable name was given to the paper duty by its foes--rose to exasperation at the thought of the peers meddling with votes of money. All this we shall see as we proceed.

Mr. Gladstone's own entries are these:--

Of the speech in which the budget was presented everybody agreed that it was one of the most extraordinary triumphs ever witnessed in the House of Commons. The casual delay of a week had raised expectation still higher; hints dropped by friends in the secret had added to the general excitement; and as was truly said by contemporaries, suspense that would have been fatal to mediocrity actually served Mr. Gladstone. Even the censorious critics of the leading journal found in the largeness and variety of the scheme its greatest recommendation, as suggesting an accord between the occasion, the man, and the measure, so marvellous that it would be a waste of all three not to accept them. Among other hearers was Lord Brougham, who for the first time since he had quitted the scene of his triumphs a generation before, came to the House of Commons, and for four hours listened intently to the orator who had now acquired the supremacy that was once his own. "The speech," said Bulwer, "will remain among the monuments of English eloquence as long as the language lasts." Napoleon begged Lord Cowley to convey his thanks to Mr. Gladstone for the copy of his budget speech he had sent him, which he said he would preserve "as a precious souvenir of a man who has my thorough esteem, and whose eloquence is of a lofty character commensurate with the grandeur of his views." Prince Albert wrote to Stockmar , "Gladstone is now the real leader of the House, and works with an energy and vigour almost incredible."

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

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:--

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 assumed 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 carcass 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 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."

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:--

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:--

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 circumstances 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 , 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:--

The struggle still went on:--

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.

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 constituency 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:--

In a contemporary memorandum on the opinions of the cabinet at this date Mr. Gladstone sets out the principal 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:--

"In the many passages 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. 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 "most conservative and church-like."

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