Read Ebook: The Life of William Ewart Gladstone Vol. 2 (of 3) 1859-1880 by Morley John

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"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."

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. 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 : "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.

After the "gigantic innovation" perpetrated by the Lords, Mr. Gladstone read to the cabinet an elaborate memorandum on the paper duty and the taxing powers of the two Houses. He dealt fully alike with the fiscal and the constitutional 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. Assuming 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 constitutional proposal . 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 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.

Of the "internal fighting" we have a glimpse in the diary:--

In language of that time, he had carried every stitch of free-trade canvas in the teeth of a tempest that might have made the boldest financial pilot shorten sail. Many even of his friends were sorry that he did not reduce the war duty on tea and sugar, instead of releasing paper from its duty of excise. Neither friends nor foes daunted him. He possessed his soul in patience until the hour struck, and then came forth in full panoply. Enthusiastic journalists with the gift of a poetic pen told their millions of readers how, after weeks of malign prophecy, that the great trickster in Downing Street would be proved to have beggared the exchequer, that years of gloom and insolvency awaited us, suddenly, the moment the magician chose to draw aside the veil, the darkness rolled away; he had fluttered out of sight the whole race of sombre Volscians; and where the gazers dreaded to see a gulf they beheld a golden monument of glorious finance; like the traveller in the Arabian fable who was pursued in the Valley of Shadows by unearthly imprecations, he never glanced to right or left until he could disperse the shadows by a single stroke. "He is," says another onlooker, "in his ministerial capacity, probably the best abused and the best hated man in the House; nevertheless the House is honestly proud of him, and even the country party feels a glow of pride in exhibiting to the diplomatic gallery such a transcendent mouthpiece of a nation of shopkeepers. The audacious shrewdness of Lancashire married to the polished grace of Oxford is a felicitous union of the strength and culture of liberal and conservative England; and no party in the House, whatever may be its likings or antipathies, can sit under the spell of Mr. Gladstone's rounded and shining eloquence without a conviction that the man who can talk 'shop' like a tenth Muse is, after all, a true representative man of the market of the world."

In describing the result of the repeal of the paper duty a little after this, he used glowing words. "Never was there a measure so conservative as that which called into vivid, energetic, permanent, and successful action the cheap press of this country." It was also a common radical opinion of that hour that if the most numerous classes acquired the franchise as well as cheap newspapers, the reign of peace would thenceforth be unbroken. In a people of bold and martial temper such as are the people of our island, this proved to be a miscalculation. Meanwhile there is little doubt that Mr. Gladstone's share in thus fostering the growth of the cheap press was one of the secrets of his rapid rise in popularity.

The session of 1860, with its complement in the principal part of 1861, was, I think, the most trying part of my whole political life.--GLADSTONE .

In reading history, we are almost tempted to believe that the chief end of government in promoting internal quiet has been to accumulate greater resources for foreign hostilities.--CHANNING.

All this time the battle for thrifty husbandry went on, and the bark of the watch-dog at the exchequer sounded a hoarse refrain. "We need not maunder in ante-chambers," as Mr. Disraeli put it, "to discover differences in the cabinet, when we have a patriotic prime minister appealing to the spirit of the country; and when at the same time we find his chancellor of the exchequer, whose duty it is to supply the ways and means by which those exertions are to be supported, proposing votes with innuendo, and recommending expenditure in a whispered invective."

Severer than any battle in parliament is a long struggle inside a cabinet. Opponents contend at closer quarters, the weapons are shorter, it is easier to make mischief. Mr. Gladstone was the least quarrelsome of the human race; he was no wrestler intent only on being a winner in Olympic games; nor was he one of those who need an adversary to bring out all their strength. But in a cause that he had at heart he was untiring, unfaltering, and indomitable. Parallel with his contention about budget and treaty in 1860 was persistent contention for economy. The financial crisis went on with the fortifications crisis. The battle was incessant. He had not been many months in office before those deep differences came prominently forward in temperament, tradition, views of national policy, that continued to make themselves felt between himself and Lord Palmerston so long as the government endured. Perhaps I should put it more widely, and say between himself and that vast body of excited opinion in the country, of which Lord Palmerston was the cheerful mouthpiece. The struggle soon began.

Sidney Herbert, then at the war office, after circulating a memorandum, wrote privately to Mr. Gladstone , that he was convinced that a great calamity was impending in the shape of a war provoked by France. Officers who had visited that country told him that all thinking men in France were against war with England, all noisy men for it, the army for it, and above all, the government for it. Inspired pamphlets were scattered broadcast. Everything was determined except time and occasion. The general expectation was for next summer. French tradesmen at St. Malo were sending in their bills to the English, thinking war coming. "We have to do with a godless people who look on war as a game open to all without responsibility or sin; and there is a man at the head of them who combines the qualities of a gambler and a fatalist."

Mr. Gladstone replied in two letters, one of them of the stamp usual from a chancellor of the exchequer criticising a swollen estimate, with controversial doubts, pungent interrogatories, caustic asides, hints for saving here and paring there. On the following day he fired what he called his second barrel, in the shape of a letter, which states with admirable force and fulness the sceptic's case against the scare. This time it was no ordinary exchequer wrestle. He combats the inference of an English from an Italian war, by the historic reminder that a struggle between France and Austria for supremacy or influence in Italy had been going on for four whole centuries, so that its renewal was nothing strange. If France, now unable to secure our co-operation, still thought the Italian danger grave enough to warrant single-handed intervention, how does that support the inference that she must certainly be ready to invade England next? He ridicules the conclusion that the invasion was at our doors, from such contested allegations as that the Ch?lons farmers refused the loan of horses from the government, because they would soon be wanted back again for the approaching war with England. What extraordinary farmers to refuse the loan of horses for their ploughing and seed time, because they might be reclaimed for purposes of war before winter! Then why could we not see a single copy of the incendiary and anti-English pamphlets, said to be disseminated broadcast among the troops? What was the value of all this contested and unsifted statement? Why, if he were bent on a rupture, did the Emperor not stir at the moment of the great Mutiny, when every available man we had was sent to India, and when he had what might have passed for a plausible excuse in the Orsini conspiracy, and in the deliberate and pointed refusal of parliament to deal with it? With emphasis, he insists that we have no adequate idea of the predisposing power which an immense series of measures of preparation for war on our own part, have in actually begetting war. They familiarise ideas which when familiar lose their horror, and they light an inward flame of excitement of which, when it is habitually fed, we lose the consciousness.

This application of cool and reasoned common sense to actual probabilities seldom avails against imaginations excited by random possibilities; and he made little way. Lord Palmerston advanced into the field, in high anxiety that the cabinet should promptly adopt Herbert's proposal. They soon came to a smart encounter, and Mr. Gladstone writes to the prime minister : "There are, I fear, the most serious differences among us with respect to a loan for fortifications.... My mind is made up, and to propose any loan for fortifications would be, on my part, with the views I entertain, a betrayal of my public duty." A vigorous correspondence between Mr. Gladstone and Herbert upon military charges followed, and the tension seemed likely to snap the cord.

If I may judge from the minutes of the members of the cabinet on the papers circulated, most of them stood with their chief, and not one of them, not even Milner Gibson nor Villiers, was ready to proceed onward from a sort of general leaning towards Mr. Gladstone's view to the further stage of making a strong stand-up fight for it. The controversy between him and his colleagues still raged at red heat over the whole ground of military estimates, the handling of the militia, and the construction of fortifications. He wrote memorandum upon memorandum with untiring energy, pressing the cabinet with the enormous rate in the increase of charge; with the slight grounds on which increase of charge was now ordinarily proposed and entertained; and, most of all, with the absence of all attempt to compensate for new and necessary expenditure by retrenchment in quarters where the scale of outlay had either always been, or had become unnecessary. He was too sound a master of the conditions of public business to pretend to take away from the ministers at the head of the great departments of expenditure their duty of devising plans of reduction, but he boldly urged the reconsideration of such large general items of charge as the military expenditure in the colonies, then standing at an annual burden of over two millions on the taxpayers of this country. He was keen from the lessons of experience, to expose the ever indestructible fallacy that mighty armaments make for peace.

My story grows long, and it ends as such stories in our politics usually end. A compromise was arranged on the initiative of the Duke of Somerset, keeping clear, as Mr. Gladstone supposed, of the fortification scheme as a whole, and not pledging future years. "Never at any time in my life," Mr. Gladstone told Graham, "have I had such a sense of mental and moral exhaustion." The strain was not ended by the compromise, for in moving the resolution for a vote of two millions for fortifications , Lord Palmerston not only declared that he held it to be absolutely necessary to carry the whole scheme into effect--the very proposition which the compromise put aside--but defended it by a series of stringent criticisms particularly fitted to offend and irritate France. Mr. Gladstone was not present, but he felt strongly that he had good grounds of complaint, and that faith had not been strictly kept. "Much dismayed," he wrote in his diary , "at the terms of Lord Palmerston's resolution." It was now, however, too late to draw back. Mr. Bright made a weighty and masterly attack , hinting plainly that the thing was "a compromise to enable the government to avoid the rock, or get over the quick-sand, which this question has interjected into their midst," and quoting with excellent effect a pregnant passage from Peel: "If you adopt the opinion of military men, naturally anxious for the complete security of every available point; naturally anxious to throw upon you the whole responsibility for the loss in the event of war suddenly breaking out of some of our valuable possessions,--you would overwhelm this country with taxes in time of peace." But this was a Palmerstonian parliament. The year before, a remarkable debate had promised better things. Disraeli had opened it with emphatic declarations: "There is no country," he said, "that can go on raising seventy millions in time of peace with impunity. England cannot, and if England cannot, no country can." Bright followed with the assurance that Cobden and he might now consider Mr. Disraeli a convert to their views. Lord John Russell came next, agreeing with Bright; and even Palmerston himself was constrained to make a peace speech.

The next year Lord Palmerston wrote to express his concern at something that he came upon in a railway journey. "I read with much interest," he wrote to his chancellor of the exchequer , "your able and eloquent speeches at Manchester, but I wish to submit to you some observations upon the financial part of the second speech." He did not agree with Mr. Gladstone that the nation had forced the cabinet and parliament into high expenditure, but if it were so, he regarded it not as matter of reproach, but as a proof of the nation's superior sagacity. Panic there had been none; governors and governed had for a long time been blind and apathetic; then they awoke. There was on the other side of the channel a people who, say what they may, hate us and would make any sacrifice to humiliate us, and they had now at their head an able, active, wary, council-keeping, but ever-planning sovereign . "Have the parliament and the nation been wrong, and have Bright and Cobden and yourself been right?" All this being so, he could not but regret that Mr. Gladstone should by speeches in and out of parliament invite agitation to force the government of which he was a member, to retrace its steps taken deliberately and with full sense of responsibility. To Palmerston's eight quarto pages, written in one of the finest hands of the time, Mr. Gladstone replied in twelve.

In all good humour, he said, I prefer not being classed with Mr. Bright, or even Mr. Cobden; first, because I do not know their opinions with any precision; and secondly, because as far as I do know or can grasp them, they seem to contemplate fundamental changes in taxation which I disapprove in principle, and believe also to be unattainable in practice, and reductions of establishment and expenditure for which I am not prepared to be responsible.... I think it a mean and guilty course to hold out vague and indefinite promises of vast retrenchment, but I think it will be a healthful day, both for the country and for the party over which you so ably preside, when the word retrenchment, of course with a due regard to altered circumstances, shall again take its place among their battle cries.

A spirited correspondence followed, for Lord Palmerston knew his business, and had abundant faculty of application; while Mr. Gladstone, for his part, was too much in earnest to forego rejoinder and even surrejoinder. "No claptrap reductions," cried the prime minister. "You are feeding not only expenditure," rejoined the chancellor of the exchequer, "but what is worse, the spirit of expenditure." "You disclaim political community of opinion with Bright and Cobden, and justly," said Lord Palmerston, "but you cannot but be aware that owing to various accidental circumstances many people at home and abroad connect you unjustly with them, and this false impression is certainly not advantageous."

"My dear Gladstone," he wrote good-humouredly on another occasion, "You may not have seen how your name is taken in vain by people with whom I conceive you do not sympathise,--Yours sincerely,

PALMERSTON."

Enclosed was a placard with many large capital letters, notes of exclamation, italics, and all the rest of the paraphernalia of political emphasis:--

TAX PAYERS! Read Mr. Cobden's new pamphlet, the "THREE PANICS," and judge for yourselves. How long will you suffer Yourselves to be Humbugged by PALMERSTONIANISM, and Robbed by the "Services," and others interested in a War Expenditure, even in times of Peace? ... THE CHANCELLOR OF THE EXCHEQUER APPEALS TO YOU TO HELP HIM. You have the power in your own hands if you will only exert it. Reform the House of Commons, AND DO IT THOROUGHLY THIS TIME.

Of the continuance of the struggle in 1862, a few items from the diary give an adequate picture:--

A candid and friendly observer has told us the situation: "When I was private secretary to Lord Palmerston," he says, "and Mr. Gladstone was his chancellor of the exchequer, it was a constant source of sorrow to me, and a perpetual cause of mystery, to note how they misunderstood one another, and how evidently each mistrusted the other, though perfectly cordial and most friendly in their mutual intercourse.... If the proposal was adhered to, Mr. Gladstone gave way. This seemed to Lord Palmerston a case of gratuitous difficulties put in his way, and attempts to thwart without the courage to resist."

In closing this chapter, let us note that in spite of Lord Palmerston, he won no inconsiderable success. When 1866 came, and his financial administration ended, he had managed, with the aid of the reduction of debt charge after the lapse of the long annuities, to carry expenditure back to the level of 1857. Naval expenditure rose until 1861, and then began to fall; army expenditure rose until 1863, and then began to fall. In 1859, when he went to the exchequer, the total under these two heads was nearly twenty-six millions; when he quitted office in 1866 the total was twenty-four millions. In the middle years it had swelled to twenty-eight. After half a dozen years of panic and extravagance, all sedulously fostered by a strong prime minister, that he should still have left the cost of government little higher than he found it was no defeat, but an extremely satisfactory performance. "We must follow the nature of our affairs," Burke says, "and conform ourselves to our situation. Why should we resolve to do nothing because what I propose to you may not be the exact demand of the petition? If we cry, like children, for the moon, like children we must cry on."

Ruminating in the late evening of life over his legislative work, Mr. Gladstone wrote: "Selecting the larger measures and looking only to achieved results, I should take the following heads: 1. The Tariffs, 1842-60. 2. Oxford University Act. 3. Post Office Savings Banks. 4. Irish Church Disestablishment. 5. Irish Land Acts. 6. Franchise Act. Although this excludes the last of all the efforts, viz., the Irish Government bill." The third item in the list belongs to the period at which we have now arrived.

A sequel to this salutary measure was a bill three years later with the apparently unheroic but really beneficent object of facilitating the acquisition of small annuities, without the risk of fraud or bankruptcy. An eyewitness tells how "Mr. Gladstone held the house for two hours enchained by his defence of a measure which avowedly will not benefit the class from which members are selected; which involves not only a 'wilderness of figures,' but calculations of a kind as intelligible to most men as equations to London cabdrivers; and which, though it might and would interest the nation, would never in the nature of things be made a hustings cry. The riveted attention of the House was in itself a triumph; the deep impression received by the nation on the following day was a greater one. It was felt that here was a man who really could lead, instead of merely reflecting the conclusions of the popular mind." The measure encountered a pretty stiff opposition. The insurance companies were vexed that they had neglected their proper business, others feared that it might undermine the poor law, others again took the pessimist's favourite line that it would be inoperative. But the case was good, Mr. Gladstone's hand was firm, and in due time the bill became law amid a loud chorus of approval.

Thus he encouraged, stimulated, and facilitated private and personal thrift, at the same time and in the same spirit in which he laboured his fervid exhortations to national economy. He was deeply convinced, he said and kept saying, "that all excess in the public expenditure beyond the legitimate wants of the country is not only a pecuniary waste, but a great political, and above all, a great moral evil. It is a characteristic of the mischiefs that arise from financial prodigality that they creep onwards with a noiseless and a stealthy step; that they commonly remain unseen and unfelt, until they have reached a magnitude absolutely overwhelming." He referred to the case of Austria, where these mischiefs seemed to threaten the very foundations of empire.

Nations seldom realise till too late how prominent a place a sound system of finance holds among the vital elements of national stability and well-being; how few political changes are worth purchasing by its sacrifice; how widely and seriously human happiness is affected by the downfall or the perturbation of national credit, or by excessive, injudicious, and unjust taxation.--LECKY.

In finance, the most important of all the many fields of his activity, Mr. Gladstone had the signal distinction of creating the public opinion by which he worked, and warming the climate in which his projects throve. In other matters he followed, as it was his business and necessity to follow, the governing forces of the public mind; in finance he was a strenuous leader. He not only led with a boldness sometimes verging on improvidence; apart from the merits of this or that proposal, he raised finance to the high place that belongs to it in the interest, curiosity, and imperious concern of every sound self-governing community. Even its narrowest technicalities by his supple and resplendent power as orator were suffused with life and colour. When ephemeral critics disparaged him as mere rhetorician--and nobody denies that he was often declamatory and discursive, that he often over-argued and over-refined--they forgot that he nowhere exerted greater influence than in that department of affairs where words out of relation to fact are most surely exposed. If he often carried the proper rhetorical arts of amplification and development to excess, yet the basis of fact was both sound and clear, and his digressions, as when, for example, he introduced an account of the changes in the English taste for wine, were found, and still remain, both relevant and extremely interesting.

One recorder who had listened to all the financiers from Peel downwards, said that Peel's statements were ingenious and able, but dry; Disraeli was clever but out of his element; Wood was like a cart without springs on a heavy road; Gladstone was the only man who could lead his hearers over the arid desert, and yet keep them cheerful and lively and interested without flagging. Another is reminded of Sir Joshua's picture of Garrick between tragedy and comedy, such was his duality of attitude and expression; such the skill with which he varied his moods in a single speech, his fervid eloquence and passion, his lightness and buoyancy of humour, his lambent and spontaneous sarcasm. Just as Macaulay made thousands read history who before had turned from it as dry and repulsive, so Mr. Gladstone made thousands eager to follow the public balance-sheet, and the whole nation became his audience, interested in him and his themes and in the House where his dazzling wonders were performed. All this made a magnificent contribution to the national spirit of his time. Such extraordinary power over others had its mainspring in the depths and zeal of his own conviction and concern. "For nine or ten months of the year," he told Sir Henry Taylor in 1864, "I am always willing to go out of office, but in the two or three that precede the budget I begin to feel an itch to have the handling of it. Last summer I should have been delighted to go out; now I am indifferent; in February, if I live as long, I shall, I have no doubt, be loath; but in April quite ready again. Such are my signs of the zodiac." The eagerness of his own mind transmitted itself like an electric current through his audience.

Interest abroad was almost as much alive as the interest felt in England itself. We have already seen how keenly Cavour followed Mr. Gladstone's performances. His budget speeches were circulated by foreign ministers among deputies and editors. Fould, one of the best of Napoleon's finance ministers, kept up a pretty steady correspondence with the English chancellor: appeals to him as to the sound doctrine on sugar drawbacks; is much struck by his proposals on Scotch banks; says mournfully to him , in a sentence that is a whole chapter in the history of the empire: "You are very fortunate in being able to give such relief to the taxpayers; if it had not been for the war in Mexico, I should perhaps have been able to do something of the same sort, and that would have been, especially in view of the elections, very favourable to the government of the Emperor.'"

When Mr. Gladstone came to leave office in 1866, he said to Fould : "The statesmen of to-day have a new mission opened to them: the mission of substituting the concert of nations for their conflicts, and of teaching them to grow great in common, and to give to others by giving to themselves. Of this beneficent work a good share has fallen to the departments with which we have respectively been connected." Fould had already deplored his loss. "I counted," he says, "on the influence of your wise doctrines in finance, to help me in maintaining our country in that system of order and economy, of which you were setting the example." Alas, in France and in continental Europe generally at that time, selfish material interests and their class representatives were very strong, popular power was weak; in most of them the soldier was the master. Happily for our famous chancellor of the exchequer, England was different.

It has often been said that he ignored the social question; did not even seem to know there was one. The truth is, that what marks him from other chancellors is exactly the dominating hold gained by the social question in all its depth and breadth upon his most susceptible imagination. Tariff reform, adjustment of burdens, invincible repugnance to waste or profusion, accurate keeping and continuous scrutiny of accounts, substitution of a few good taxes for many bad ones,--all these were not merely the love of a methodical and thrifty man for habits of business; they were directly associated in him with the amelioration of the hard lot of the toiling mass, and sprang from an ardent concern in improving human well-being, and raising the moral ideals of mankind. In his "musings for the good of man," Liberation of Intercourse, to borrow his own larger name for free trade, figured in his mind's eye as one of the promoting conditions of abundant employment. "If you want," he said in a pregnant proposition, "to benefit the labouring classes and to do the maximum of good, it is not enough to operate upon the articles consumed by them; you should rather operate on the articles that give them the maximum of employment." In other words, you should extend the area of trade by steadily removing restrictions. He recalled the days when our predecessors thought it must be for man's good to have "most of the avenues by which the mind, and also the hand of man conveyed and exchanged their respective products," blocked or narrowed by regulation and taxation. Dissemination of news, travelling, letters, transit of goods, were all made as costly and difficult as the legislator could make them. "I rank," he said, "the introduction of cheap postage for letters, documents, patterns, and printed matter, and the abolition of all taxes on printed matter, in the catalogue of free trade legislation. These great measures may well take their place beside the abolition of prohibitions and protective duties, the simplifying of revenue laws, and the repeal of the Navigation Act, as forming together the great code of industrial emancipation."

It was not unnatural that fault should be found with him for not making a more resolute effort to lighten the burden of that heavy mortgage which, under the name of the National Debt, we have laid upon the industry and property of the nation. In 1866 he was keenly excited by Jevons's argument from the ultimate shrinkage of our coal supply, and he accepted the inference that we should vigorously apply ourselves by reduction of the debt to preparation for the arrival of the evil day. But, as he wrote to Jevons , "Until the great work of the liberation of industry was in the main effected, it would have been premature or even wrong to give too much prominence to this view of the subject. Nor do I regard that liberation as yet having reached the point at which we might say, we will now cease to make remission of taxes a principal element and aim in finance. But we are in my judgment near it. And I am most anxious that the public should begin to take a closer and more practical view of the topics which you have done so much to bring into prominence."

He was always thinking of the emancipation of commerce, like Peel and Cobden. His general policy was simple. When great expenditure demanded large revenue, he raised his money by high income-tax, and high rates of duty on a few articles, neither absolute necessities of life nor raw materials of manufacture. He left the income-tax at fourpence. In 1866, he told the House that the new parliament then about to be elected might dispense with the tax. "If," he said, "parliament and the country preferred to retain the tax, then the rate of fourpence is the rate at which in time of peace and in the absence of any special emergency, we believe it may be most justly and wisely so retained." While cordially embracing Cobden's policy of combining free trade with retrenchment, he could not withstand a carnal satisfaction at abundant revenue. Deploring expenditure with all his soul, he still rubs his hands in professional pride at the elasticity of the revenue under his management.

When it is asked, with no particular relevancy, what original contribution of the first order was made by Mr. Gladstone to the science of national finance, we may return the same answer as if it were asked of Walpole, Pitt, or Peel. It was for Adam Smith from his retreat upon the sea-beach of distant Kirkcaldy to introduce new and fruitful ideas, though he too owed a debt to French economists. The statesman's business is not to invent ideas in finance, but to create occasions and contrive expedients for applying them. "What an extraordinary man Pitt is," said Adam Smith; "he understands my ideas better than I understand them myself." Originality may lie as much in perception of opportunity as in invention. Cobden discovered no new economic truths that I know of, but his perception of the bearings of abstract economic truths upon the actual and prospective circumstances of his country and the world, made him the most original economic statesman of his day. The glory of Mr. Gladstone was different. It rested on the practical power and tenacity with which he opened new paths, and forced the application of sound doctrine over long successions of countless obstacles.

If we probe his fame as financier to the core and marrow, it was not his power as orator, it was not his ingenuity in device and expedient, it was his unswerving faith in certain fixed aims, and his steadfast and insistent zeal in pursuing them, that built up the splendid edifice. Pitt performed striking financial feats, especially in the consolidation of duties, in reformed administration, and in the French treaty of 1786. But ill-fortune dragged him into the vortex of European war, and finance sank into the place of a secondary instrument, an art for devising aliments, some of them desperate enough, for feeding the war-chest of the nation. Sir Robert Walpole, Mr. Gladstone wrote, "had not to contend with like difficulties, and I think his administration should be compared with the early years of Pitt, in which way of judging he would come off second, though a man of cool and sagacious judgment, while morally he stood low."

In the happier conditions of his time, Mr. Gladstone was able to use wise and bold finance as the lever for enlarging all the facilities of life, and diffusing them over the widest area. If men sometimes smile at his extraordinary zeal for cheap wines and cheap books and low railway fares, if they are sometimes provoked by his rather harsh views on privileges for patents and copyrights for authors, restrictive of the common enjoyment, it is well to remember that all this and the like came from what was at once clear financial vision and true social feeling. "A financial experience," he once said, "which is long and wide, has profoundly convinced me that, as a rule, the state or individual or company thrives best which dives deepest down into the mass of the community, and adapts its arrangements to the wants of the greatest number." His exultation in the stimulus given by fiscal freedom to extended trade, and therefore to more abundant employment at higher wages, was less the exultation of the economist watching the intoxicating growth of wealth, than of the social moralist surveying multiplied access to fuller life and more felicity. I always remember, in a roving talk with him in 1891, when he was a very old man and ill, how he gradually took fire at the notion--I forget how it arose--of the iniquities under which the poor man suffered a generation ago. "See--the sons and daughters went forth from their homes; the cost of postage was so high that correspondence was practically prohibited; yet the rich all the time, by the privilege of franking, carried on a really immense amount of letter-writing absolutely free. Think what a softening of domestic exile; what an aid in keeping warm the feel of family affection, in mitigating the rude breach in the circle of the hearth." This vigorous sympathy was with Mr. Gladstone a living part of his Christian enthusiasm. "If you would gain mankind," said old Jeremy Bentham, "the best way is to appear to love them, and the best way of appearing to love them, is to love them in reality." When he thought of the effect of his work at the exchequer, he derived "profound and inestimable consolation from the reflection that while the rich have been growing richer, the poor have become less poor." Yet, as my readers have by this time found out, there never was a man less in need of Aristotle's warning, that to be forever hunting after the useful befits not those of free and lofty soul. As was noted by contemporaries, like all the followers of Sir Robert Peel he never thought without an eye to utilitarian results, but mixed with that attitude of mind he had "a certain refinement and subtlety of religiousness that redeemed it from the coldness, if it sometimes overshadowed the clearness, of mere statesmanlike prudence." On the other hand, he had "the Lancashire temperament."

This thought and feeling for the taxpayer was at the root of another achievement, no less original than the peculiar interest that he was able to excite by his manner of stating a financial case. Peel was only prime minister for five years, and only four months chancellor. Mr. Gladstone was prime minister for twelve--ten years short of Sir Robert Walpole in that office, seven years short of Pitt. But he was also chancellor of the exchequer under three other prime ministers for ten years. Thus his connection with the treasury covered a longer period than was attained by the greatest of his predecessors. His long reign at the treasury, and his personal predominance in parliament and the country, enabled him to stamp on the public departments administrative principles of the utmost breadth and strength. Thrift of public money, resolute resistance to waste, rigid exactitude in time, and all the other aspects of official duty, conviction that in the working of the vast machinery of state nothing is a trifle--through the firm establishment of maxims and principles of this sort, Mr. Gladstone built up a strong and efficacious system of administrative unity that must be counted a conspicuous part of his very greatest work. "No chancellor of the exchequer," he once said, "is worth his salt who makes his own popularity either his first consideration, or any consideration at all, in administering the public purse. In my opinion, the chancellor of the exchequer is the trusted and confidential steward of the public. He is under a sacred obligation with regard to all that he consents to spend." This tone of thinking and feeling about the service of the state spread under his magisterial influence from chancellors and the permanent officers that bear unobtrusive but effective sway in Whitehall, down to tide waiters and distributors of stamps. As Burke put the old Latin saw, he endeavoured to "give us a system of economy, which is itself a great revenue." The Exchequer and Audit Act of 1866 is a monument of his zeal and power in this direction. It converted the nominal control by parliament into a real control, and has borne the strain of nearly forty years.

He was more alive than any man at the exchequer had ever been before, to the mischiefs of the spirit of expenditure. As he told the House of Commons in 1863 : "I mean this, that together with the so-called increase of expenditure there grows up what may be termed a spirit of expenditure, a desire, a tendency prevailing in the country, which, insensibly and unconsciously perhaps, but really, affects the spirit of the people, the spirit of parliament, the spirit of the public departments, and perhaps even the spirit of those whose duty it is to submit the estimates to parliament." "But how," he wrote to Cobden , "is the spirit of expenditure to be exorcised? Not by my preaching; I doubt if even by yours. I seriously doubt whether it will ever give place to the old spirit of economy, as long as we have the income-tax. There, or hard by, lie questions of deep practical moment." This last pregnant reference to the income-tax, makes it worth while to insert here a word or two from letters of 1859 to his brother Robertson, an even more ardent financial reformer than himself:--

Economy is the first and great article in my financial creed. The controversy between direct and indirect taxation holds a minor though important place. I have not the smallest doubt we should at this moment have had a smaller expenditure if financial reformers had not directed their chief attention, not to the question how much of expenditure and taxes we shall have, but to the question how it should be raised.... I agree with you that if you had only direct taxes, you would have economical government. But in my opinion the indirect taxes will last as long as the monarchy; and while we have them, I am deeply convinced that the facility of recurring to, and of maintaining, income-tax has been a main source of that extravagance in government, which I date from the Russian war .

Bagehot, that economist who united such experience and sense with so much subtlety and humour, wrote to Mr. Gladstone in 1868: "Indirect taxation so cramps trade and heavy direct taxation so impairs morality that a large expenditure becomes a great evil. I have often said so to Sir G. Lewis, but he always answered, 'Government is a very rough business. You must be content with very unsatisfactory results.' " This was a content that Mr. Gladstone never learned.

It was not only in the finance of millions that he showed himself a hero. "The chancellor of the exchequer," he said, "should boldly uphold economy in detail; and it is the mark of a chicken-hearted chancellor when he shrinks from upholding economy in detail, when because it is a question of only two or three thousand pounds, he says that is no matter. He is ridiculed, no doubt, for what is called candle-ends and cheese-parings, but he is not worth his salt if he is not ready to save what are meant by candle-ends and cheese-parings in the cause of the country." He held it to be his special duty in his office not simply to abolish sinecures, but to watch for every opportunity of cutting down all unnecessary appointments. He hears that a clerk at the national debt office is at death's door, and on the instant writes to Lord Palmerston that there is no necessity to appoint a successor. During the last twenty years, he said in 1863, "since I began to deal with these subjects, every financial change beneficial to the country at large has been met with a threat that somebody would be dismissed." All such discouragements he treated with the half scornful scepticism without which no administrative reformer will go far.

He did not think it beneath his dignity to appeal to the foreign office for a retrenchment in fly-leaves and thick folio sheets used for docketing only, and the same for mere covering despatches without description; for all these had to be bound, and the bound books wanted bookcases, and the bookcases wanted buildings, and the libraries wanted librarians. "My idea is that it would be quite worth while to appoint an official committee from various departments to go over the 'contingencies' and minor charges of the different departments into which abuse must always be creeping, from the nature of the case and without much blame to any one." Sir R. Bethell as attorney-general insisted on the duty incumbent on certain high officials, including secretaries of state, of taking out patents for their offices, and paying the stamp duties of two hundred pounds apiece thereon. "I shall deal with these eminent persons," he wrote to the chancellor of the exchequer, "exactly as I should and do daily deal with John Smith accused of fraud as a distiller, or John Brown reported as guilty of smuggling tobacco." Mr. Gladstone replies :--

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