CHAPTER XVI RESIGNATION

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ON the morning of December 23 all who took an interest in politics—and in those days these were a very great number—were startled to read in the Times newspaper that Lord Randolph Churchill had resigned the offices of Chancellor of the Exchequer and Leader of the House of Commons and had retired altogether from the Government. As the news was telegraphed abroad, it became everywhere the chief subject of rumour and discussion, and Cabinet Ministers—dispersed on their holidays—hurried back to London to find out the truth of the matter and to prepare for the changes that must follow. To the political world the event came as a complete surprise. No important issue had arisen in foreign or domestic affairs; no great question likely to lead to such a breach was before the country; there had been hardly a whisper of Cabinet dissension. But if the reader has followed this account with any considerable measure of agreement or sympathy, he will see in this resignation no inexplicable mystery, no deep-laid intrigue, no explosion of temper; but the logical and inevitable consequence of all that had gone before.

Everything may go well with a liberal-minded man who belongs to the Tory party while his party is in Opposition. The natural disagreements which arise upon so many questions between the Government of the day and their political opponents make a broad platform on which the Democratic Tory and the old-fashioned Conservative can fight side by side in combination. When to those disagreements were added the danger of an Imperial disaster, acutely realised, and the antagonism which Mr. Gladstone inspired in all who did not worship him, the combination ripened into comradeship; and out of comradeship was born a sense of agreement which, after all, was pure illusion. It is not until men who really differ, try to work together at the business of government that their worst troubles begin. Even in the short Administration of 1885 the divergence between Lord Salisbury and Lord Randolph Churchill had been plain. But the ‘Ministry of Caretakers’ was in a minority. It was in a sense an Opposition rather than a Government. It had never exercised power. The disruption of the Liberal party and the decision of the electors had vitally altered the political situation. The Conservative party, with their Unionist allies, were now supreme. They had achieved great power. What would they do with it?

Many of the letters which passed between Lord Randolph and the Prime Minister during their varied and eventful association have been printed here. A change, distinct and palpable, is to be noticed in the tone of their communications after the election of 1886. It is still friendly and open; Lord Randolph’s letters still preserve their unvarying air of respect towards a higher officer of State and of deference to an older and far more experienced man. Yet it is less the correspondence of a lieutenant with his chief and more like that between separate authorities. The two men were, in fact, sustained by two different, and to some extent conflicting, sets of forces, and they stood for different ideas. Nor were those forces on which Lord Randolph Churchill counted so inconsiderable as the event might seem to prove. Tory Democracy had gained repeated victories in the past three years over the more Conservative element in the party. Lord Salisbury himself, under pressure, personal and of circumstances, had advanced vastly from his political position in the early ‘eighties. He had gone as far as Newport. He had gone as far as Dartford. It did not seem improbable that, if pressed, he would go still further and that without any serious damage to party unity the liberalizing process which had already effected so much in the composition, character and prospects of the Tory party might continue. The ‘old gang’ was now widely scattered. Some had retired; some were in the Lords. Others had not been included in the Government. The Cabinet had been largely formed of men whose speeches and general views were democratic. The younger and more active elements in the party were adventurous and progressive. Many of the members returned by the constituencies, and especially by the boroughs, had given pledges to the electors at which ‘high and dry’ Tories stood aghast.

A careful examination of the Conservative majority in the House of Commons justified the belief that it was neither unfitted nor unwilling to be the instrument of large constructive reforms. It seemed, moreover, that the alliance with the Unionist Liberals and Radicals, on which the existence of the Government depended, would strengthen powerfully the more Liberal elements in the Conservative ranks and would even require an increasing measure of Liberal legislation as a condition of support. Mr. Chamberlain and his immediate followers were also a very important factor; and Lord Randolph, as the principal link which united them to Lord Salisbury’s Government, had every reason as well as every inclination to study their wishes. Looking broadly at the situation during the autumn of 1886, it was not unreasonable to hope that an era of domestic reform might be safely and prosperously inaugurated. But, in any case, Lord Randolph’s own position was perfectly well understood. His declarations had been clear and full. He had made no secret of his opinions; and upon finance, upon Local Government, upon Ireland, upon land and liquor, upon questions connected with property and labour, they were unmistakably declared. Yet with the full knowledge of his opinions and every indication which the past could supply that he would fight sternly for them, the Prime Minister had invited him to undertake the second post in his Government, and Lord Randolph’s acceptance had been, with unimportant exceptions, endorsed and even acclaimed by the whole party. Why should it ever have been supposed that he would have abandoned forthwith all his liberal views, would have repudiated or ignored all his pledges of economy and would have settled down to the adroit manipulation of a Parliamentary majority for strictly Conservative ends and the elaboration of ingenious excuses for departmental and administrative scandals. The Prime Minister and the party must have known—and they did know when Lord Randolph Churchill was called to lead them in the House of Commons—that he could only lead them in one direction, and that direction, so far as domestic affairs were concerned, a Liberal direction.

It is no doubt true that he rated his own power and consequent responsibility too high. Like many a successful man before him—and some since—he thought the forces he had directed in the past were resident in himself, whereas they were to some extent outside himself and independent. But this error was shared by his colleagues and by the Prime Minister. They had no idea what he could do, or how hard he could hit if he were assailed. They remembered his previous withdrawals and how he had always come back stronger than ever. They saw how often in the last few years his judgment had proved right and how he had always won in the end, no matter how slender were his own resources and how strong the confederacy by which he was opposed. They feared him greatly. But they were Tory Ministers; and they did not intend, whatever happened, to be dragged out of their own proper sphere and committed to large reforms and democratic Budgets. Better far Lord Hartington and the Whigs! Better even the Grand Old Man!

In all that concerned the management of individuals, Lord Salisbury excelled. No one was more ready to sacrifice his opinion to get his way. No one was more skilful in convincing others that they agreed with him, or more powerful to persuade them to actual agreement. His experience, his patience, his fame, his subtle and illuminating mind, secured for him an ascendency in his Cabinet apart altogether from the paramount authority of First Minister. The Leader of the House of Commons, triumphant in Parliament, almost supreme in the country, found himself often almost alone in the Cabinet. The disproportion perplexed and offended him. He believed that he had got the majority together. He wanted to see it used well and boldly in correcting abuses, in carrying great reforms, and moving always onwards. He believed that unless the Conservative party gave proof of their zeal for popular causes the constituencies, so painfully won over, would revert to Radicalism, that the Unionist alliance would collapse and that Mr. Gladstone would return to power. And he would be held responsible for the disaster!

From the very outset the new Administration was uneasy. Discord stirred restlessly behind the curtains of Cabinet secrecy. Sir Michael Hicks-Beach had his own views about Ireland and Irish landlords, and they differed from those of the Prime Minister. He was, so Lord Randolph described him to Lord Salisbury in a letter on August 22, ‘afraid of being forced to administer Ireland too much on a landlord’s rights basis.’ He had been upset by the Chancellor of the Exchequer’s statement that any revision of rents by State interposition was altogether excluded from Conservative policy. He would not agree to the principle that any permanent guarantee of the judicial rent was conveyed to the landlord in 1886. Lord Randolph, however, persuaded him that these questions did not arise seriously for immediate decision.

The autumn Councils were not harmonious, whether upon foreign or domestic affairs. The proposed changes in Parliamentary procedure, and especially the question of the Closure, provoked awkward differences, nearly every prominent member of the House of Commons holding strong personal opinions based on long personal experience. One Minister felt unable to be responsible for proposing Closure by a simple majority, and recommended that the Government should leave the matter as an open question to the House. Others disputed on the relative merits of a two-thirds or three-fifths majority. The tangled controversies connected with the details of English and Irish Local Government proved even more troublesome. To lighten the ship it was decided to confine the Bill to county government alone. For a long time it seemed impossible to reconcile the divergent views of the Prime Minister and the Irish Secretary, and, as it was intended that Sir Michael should himself take charge of the Bill, the difficulty was grave. ‘I wish there was no such thing as Local Government,’ wrote Lord Salisbury pathetically to the Chancellor of the Exchequer, after an elaborate ‘eirenicon’ which he had proposed had been abruptly rejected by his colleagues.

Besides these internal differences, the alliance with the Liberal-Unionist leaders, upon whose goodwill the existence of the Government depended, required careful and unremitting attention. In November Lord Hartington, who felt the need of meeting Mr. Gladstone’s demand for a constructive Irish policy with positive proposals, if the Liberal and Radical Unionists were to be kept solid against the Home Rulers, pressed that a Local Government Bill for Ireland should be promised in the Queen’s Speech. He suggested that this should provide for the establishment of Irish County and District Councils, with liberty to two or more to act together for certain specified purposes affecting their several jurisdictions; but no further. He pointed out that, as Irish Local Government would necessarily proceed on more ‘Conservative’ lines than English Local Government, the Irish settlement, if first effected, would afford a safer model for the English measure. This argument much impressed the Prime Minister; but Lord Randolph Churchill, who also appreciated its force, objected for that very reason to giving Irish Local Government precedence over the English Bill, and he succeeded, by the influence of a friend, in persuading Lord Hartington to abate his Irish claims. Mr. Chamberlain also intimated, through Lord Randolph, that while prepared to give the Government policy a generous consideration, whether on foreign affairs or on the necessity for Coercion, he could not support anything that he considered reactionary in Local Government. The principal members of the Cabinet, including the Prime Minister, Lord Randolph Churchill and Mr. Smith, then agreed upon an extensive proposal for England, with the understanding that an Irish Local Government Bill should be promised in the Queen’s Speech, but introduced after England and Scotland had been dealt with.

One difficulty was thus removed; but, as the month drew on, continual divergences arose on questions of domestic policy. The Dartford programme was indeed, like the Budget—in principle, at least—accepted formally by Ministers. But their reluctance to embark on such policies betrayed itself in all sorts of small objections. The survivors of the ‘old gang’ were not inclined to forget the treatment they had received. The ‘Plan of Campaign’ against the payment of rent, which had been started in Ireland as the Nationalist reply to the refusal of Home Rule, was spreading; and the difficulties of the Irish Government, divested of the exceptional coercive powers of former years, were such that Beach, on whom Lord Randolph counted greatly, was often obliged by his Irish duties to be absent from meetings of the Cabinet. The Chancellor of the Exchequer felt sorely the want of a friend. His delight when, at his continued request, Lord Salisbury brought Mr. Balfour into the Cabinet led him (November 17) to send the news to the Times before the Queen’s consent had been obtained, and a breach of etiquette was narrowly averted.

Many of the lesser members of the Government were Tory Democrats; and much of the draft legislation that came before the Cabinet was Liberal in its character. Lord Randolph, however, had to fight single-handed for every point. A Minister who was called to one of the Cabinets on the Local Government Bill described to me the pleadings and arguments by which the Chancellor of the Exchequer strove tirelessly to extend its scope to the widest limits. ‘We must not overweight the Bill,’ said the Prime Minister at length. ‘It is a heavy Bill already.’ ‘A heavy Bill!’ repeated Lord Randolph, balancing the draft upon his fingers and letting it flutter to the ground, while everyone else sat silent. ‘A heavy Bill!’ He was, in fact, always the devil’s advocate. ‘I am appalled,’ he wrote to the Prime Minister (December 2), ‘at the strength of your disapproval of poor Long and Onslow’s Allotments Bill. We shall have to cut it down like anything.’ The concessions which were made to his insistence, disturbed his colleagues without satisfying him. The deference which he often showed to high Tory views, was forgotten amid disagreements so many and grave. When the last word had been said, no matter what compromise had been reached, this fundamental difference remained—that he regarded Liberal measures as things good and desirable in themselves; while many of his colleagues, and certainly his chief, looked upon them as so many unholy surrenders to the powers of evil.

‘Alas!’ wrote Lord Randolph sadly to the Prime Minister on November 6, ‘I see the Dartford programme crumbling into pieces every day. The Land Bill is rotten. I am afraid it is an idle schoolboy’s dream to suppose that Tories can legislate—as I did, stupidly. They can govern and make war and increase taxation and expenditure À merveille, but legislation is not their province in a democratic constitution.... I certainly have not the courage and energy to go on struggling against cliques, as poor Dizzy did all his life....’

Lord Salisbury replied with great care and kindness; but he had little consolation to afford, and this letter seems to have been his last attempt:—

November 7, 1886.

My dear Randolph,—I did not get your note of yesterday till I got to town in the afternoon—and then it was too late to catch you. I saw Beach, however, and ... led him to tell me what had passed with Ritchie. It appears that the latter has abandoned the ground plan which he told me in September he was fully resolved on—namely, that if owners are to have half the taxation they should have half the representation too. This, as you remember, was a principle for which Beach contended vigorously last winter—and which was generally accepted by the then Cabinet. Beach thinks the abandonment of it would have specially injurious influences in Ireland.

For the rest, I fully see all the difficulties of our position. The Tory party is composed of very varying elements, and there is merely trouble and vexation of spirit in trying to make them work together. I think the ‘classes and the dependents of class’ are the strongest ingredients in our composition, but we have so to conduct our legislation that we shall give some satisfaction to both classes and masses. This is specially difficult with the classes—because all legislation is rather unwelcome to them, as tending to disturb a state of things with which they are satisfied. It is evident, therefore, that we must work at less speed and at a lower temperature than our opponents. Our Bills must be tentative and cautious, not sweeping and dramatic. But I believe that with patience, feeling our way as we go, we may get the one element to concede and the other to forbear. The opposite course is to produce drastic, symmetrical measures, hitting the ‘classes’ hard, and consequently dispensing with their support, but trusting to public meetings and the democratic forces generally to carry you through. I think such a policy will fail. I do not mean that the ‘classes’ will join issue with you on one of the measures which hits them hard, and beat you on that. That is not the way they fight. They will select some other matter on which they can appeal to prejudice, and on which they think the masses will be indifferent; and on that they will upset you. My counsel therefore is strongly against this alternative; and it would be the same if I had no interest in the matter, and was merely an observer outside the Ministry advising you. Your rÔle should be rather that of a diplomatist trying to bring the opposed sections of the party together, and not that of a whip trying to keep the slugs up to the collar....

Yours very truly,
Salisbury.

Yet the first session of a Parliament and the first year of an Administration are the most critical. Men are not really bound together in a Government until they have made mistakes in common and defended each other’s failures; and it is possible that, unless definite and urgent disagreements had arisen, the evil hour might have been long averted. But Lord Randolph Churchill was not only responsible for the House of Commons; he was responsible for national finance. And from the Treasury a second set of questions necessarily involving sharp differences with his colleagues now began to arrive.

The reader will not fail to recognise how vital a definite economy was to the character and success of Lord Randolph Churchill’s Budget. The reduction of the Sinking Fund and of taxation generally could only be defended in association with a lower expenditure. Circumstances now within our knowledge seem to show that the Chancellor of the Exchequer’s margin was larger than he had dared to expect. But so many novel sources of revenue, tapped for the first time, introduced uncertain factors into his calculations. His public declarations before the general election had been unmistakable. He was pledged to the hilt in the cause of economy, and the actual conditions fortified his sentiments. Even before the Bradford meeting, the tension was apparent.

Mr. Smith to Lord Randolph Churchill.

Confidential.

Greenlands, Henley-on-Thames: October 24.

My dear R. C.,—I shall probably see you in Arlington Street to-morrow, but I may not have an opportunity of begging you not to indicate too precisely at Bradford the results you may anticipate from economies in army administration. I shall do everything I can in that direction, but I am anxious, as you must be, as to the aspect of affairs, and I think the policy you are anxious to carry out is best supported by the organisation of the strength we possess than by allowing the present unready condition to continue.

As to this I must have a serious talk with you when you come back from Bradford. I contemplate method, management, arrangement—rather than large present expenditure; but, unless you see your way through the difficulties in Turkey and as to Egypt easily and peaceably, it would be unwise, I think, to announce reductions in military Budgets which would be interpreted, as the Paris Temps suggests, as presaging a withdrawal of England from the positions she has taken up. It may be necessary to take such a course, but it can only be done after the most grave deliberation: it almost involves a recognition of the fact that we are no longer one of the Great Powers.

I prefer to say these things to you alone than to talk of them before Salisbury. Our diplomacy is no doubt very weak, but this does not entirely explain our powerlessness in Europe....

Yours very sincerely,
W. H. Smith.

All through the month of November the annual conflict between the Treasury and the spending departments was maintained with unusual vigour and with varying fortune. On the 3rd a Treasury Minute accelerated the preparation of the estimates:—

Treasury Chambers, Whitehall, S.W.:
November 3, 1886.

In view of the probability of the meeting of Parliament being fixed for the middle of January, the First Lord of the Treasury and I are of opinion that the Army and Navy Estimates should be considered by the Cabinet before Christmas. Will you therefore kindly direct that the estimates decided upon by the War Office should be ready by the first days of December? We shall then be well ahead of our work.

‘Do you observe,’ wrote Smith on the 7th, ‘that under pressure our people in Egypt see their way now to a great reduction of military expenditure? Only a fortnight ago they were the other way minded.’ And again on the 20th, when some Treasury probing had touched a tender spot:—

‘This departmental extravagance is not mine, but my predecessor’s, and full private notice has been given repeatedly since August. I hope I may yet save something, but the cake was eaten before I got here. We will talk about it when we next meet.’

Other departments had to face a not less searching examination, and the Navy and Colonial Office estimates were the subject of prolonged and animated correspondence. There was, of course, nothing unhealthy, or even unusual, in all this. It is the business of the Treasury to canvass all proposals which involve expenditure and to compel those who bring them forward to show, not merely that they are necessary and desirable, but that they are more necessary and more desirable than other necessary and desirable projects. Without such severe controversial examination of estimates, the finances of the wealthiest country would soon be in disorder and the money of the taxpayer squandered irretrievably. But it may well be believed that, with all the good-will in the world, the month of November is a stormy period for the Chancellor of the Exchequer and brings him daily into acute antagonism with his colleagues. In such circumstances only the closest sympathy and support from the Prime Minister can sustain him. He is one against many, and must otherwise submit or resign. But on this occasion, when there should have been the most intimate alliance, there opened vast and comprehensive differences; and the Chancellor of the Exchequer became continually more isolated and from that very cause more combative. The money clauses of the Local Government Bill—affecting as they did so many settled interests, interwoven as they were with the whole finance of the year—led to vexatious and protracted discussions. Behind all loomed the vague yet formidable shadow of the Budget itself. By the end of the month it was evident that a crisis was approaching.

‘Salisbury,’ wrote Lord George Hamilton on the 25th, ‘is getting to the position where he will be pressed no more. If a rupture takes place, it will damage us almost irretrievably; for he would carry with him a large portion of the party, and your position would be very much, as you yourself said, like to that of Sir Robert Peel, who, though he carried Free Trade, was without a party afterwards. Gladstone cannot live for long and if we only hold together we shall utterly foil him.

‘I write feelingly, for if we break up, my vocation of peacemaker between the different sections of the party is gone and I should take up some other line of work than politics. Things are, I fear, worse than we thought two days back; however, you will see for yourself and act accordingly.’

The definite collision took place just before the estimates of the Navy and Army were finally presented. Lord Randolph Churchill insisted upon some reduction and made no secret that he would set his official existence on the issue. Hamilton replied that 50,000l. was the utmost further variation that could be expected at the Admiralty. Smith wrote as follows:—

Private.

December 14, 1886.

My dear R. C.,—I am very sorry to say that the first review of my figures affords no hope whatever of any reductions in W. O. estimates as compared with 1886-7.

We lose 100,000l. of Indian money, and have to meet extra charges for leap year—Volunteers, Reserve, and other automatic increases—which are enough to drive one wild, without entering upon the questions of giving small-arm ammunition and defence.

I shall be able to give you a rough idea of the probable gross estimate on Thursday or Friday, but it will not be a pleasant one.

Yours very sincerely,
W. H. Smith.

And again on the 16th, in a remarkable letter showing that he, too, was prepared to go to extremes:—

Private.

December 16, 1886.

My dear R. C.,—I have been thinking a good deal over your letter of yesterday.

I am as much committed to economy as you are, but I cannot be the head of a great department in times like these and ask for less than the absolute minimum required for the safety of the country.

I will go into figures with you if you like—but it is out of the question for you to talk of retiring. If one of us goes, I shall claim the privilege; and you may rest assured that if a man can be found to take my place, I shall be delighted to give all the help in my power to a successor brave enough to assume responsibility which I am not prepared to bear.

I will speak to you after the Cabinet to-morrow.

Yours very sincerely,
W. H. Smith.

Bear in mind that in the House—if I am there—I do not ask you to defend my estimates or to excuse them.

‘You will shortly have to decide,’ wrote Lord Randolph in a good-humoured letter to the Prime Minister, December 15, ‘whose services you will retain—those of your War Minister or those of your Chancellor of Exchequer.

‘Smith informs me of his inability to make reductions in the Army Estimates; I have informed him of my absolute and unalterable inability to consent to any Army Estimates which do not show a marked and considerable reduction.

‘George Hamilton has made me a reduction in the Navy Estimates of over 700,000l. If these things can be done at the Admiralty, the attitude of the War Office becomes intolerable. Generally speaking, however, I am anxious to submit to you to-morrow the draft of a Treasury minute to the public departments calling their serious attention to their increasing expenditure and requiring marked and immediate economies.’

Lord Salisbury’s reply indicated clearly the side to which his sympathies inclined:—

Hatfield: December 15, 1886.

My dear Randolph,—I will be in Downing Street at half-past three. I have got to go to Windsor at a quarter to five. There was nothing for it but to consent to the Egyptian expenditure, though it is very lamentable—all Gladstone’s fault. The Cabinet, happily, not I, will have to decide the controversy between you and Smith. But it will be a serious responsibility to refuse the demands of a War Minister so little imaginative as Smith, especially at such a time. It is curious that two days ago I was listening here to the most indignant denunciations of Smith for his economy—from Wolseley. I am rather surprised at George Hamilton being able to reduce so much. I hope it is all right.

Ever yours very truly,
Salisbury.

The Chancellor of the Exchequer, however, showed no signs of yielding and his colleagues, feeling that the crash was coming, evidently took counsel with one another and broadened the ground upon which they stood and might have to fight. The Budget had meanwhile been passed through the Cabinet. But now doubt and hesitation seemed to have overtaken those Ministers who were concerned in the Estimates dispute. On the 18th Lord George Hamilton wrote that he thought the Budget ‘exceedingly well balanced and comprehensive,’ but on that very account the more likely to be attacked by the various interests concerned, and he asked for certain returns as to the incidence of taxation. It is significant that Mr. Smith wrote a similar letter on the same day, and Lord Salisbury on the day following:—

Mr. Smith to Lord Randolph Churchill.

War Office: December 18, 1886.

My dear R. C.,—I think you should send us a printed memorandum of your Budget proposals, in order that they may be considered carefully during our short holiday.

They are too large and important to be determined upon after a conversation across the table. It would not be fair to you nor to your colleagues, some of whom may not have fully realised all your proposals.

Yours very sincerely,
W. H. Smith.

Lord Salisbury to Lord Randolph Churchill.

Hatfield House, Hatfield, Herts: December 19, 1886.

My dear Randolph,—In the course of discussions on the Local Government Bill you have two or three times expressed the belief that the country gentlemen would be consoled for all they might lose under that Bill by the financial arrangements which were to be proposed; or, as you expressed it, that ‘the pill would be gilded.’ I think you have overlooked the fact that your local taxation proposals will relieve the towns more than the rural districts. At least, I have looked up the figures for Hertfordshire, Suffolk, and Devonshire, and enclose a statement of them. The result is (if I rightly understood your proposals) that the ordinary country gentleman will have an extra burden of ninepence in the pound—which is gilding of a negative kind.

Ever yours truly,
Salisbury.

The situation was fast becoming acute. At a dinner on the 18th, when the Prime Minister was Lord Randolph’s guest, shrewd observers had noticed, underneath much personal courtesy, an air of harsh political antagonism. The effect of these letters was decisive. Lord Randolph forwarded the figures which Lord Salisbury had enclosed to the Treasury and called for a memorandum in reply. His pencilled comment on the paper is, ‘Lord Salisbury’s figures are incomprehensible.’ The Treasury answer required a little time to prepare; but the next day Lord Randolph wrote back:—

Treasury Chambers, Whitehall, S.W.: December 20, 1886.

Dear Lord Salisbury,—I know the country gentlemen, like the farmers, always think they are being plundered and ruined. The facts are, however, that whereas the ratepayers used to receive in gross three millions from the taxes, they would in future under my scheme receive over five millions. Of course the towns will get the bulk of the indoor pauper contribution.

Real estate pays succession duty on an average about once in thirty years. We do not estimate that the change in the succession duty will add more than a million a year to the present yield of 800,000l., and it will take at least twelve years to work up to this amount. When the succession duties were first voted by Parliament, they were estimated to produce 2,000,000l. I believe the produce has never exceeded 900,000l. The assimilation of the incidence of death duties on real estate to that which falls upon personal estate has not of late years been resisted in principle even by the strictest sect of the Tories.

I enclose you the G.O.M.’s reply to my communication. I hear rumours that he is contemplating the policy of throwing over the Home Rulers.

Yours most sincerely,
Randolph S. Churchill.

That same afternoon the Chancellor of the Exchequer was summoned to Windsor. Travelling thither, he met by chance in the same railway carriage Lord George Hamilton. Lord Randolph, who was in excellent spirits, said briskly that he intended to resign that day. Hamilton was much shocked, and urged patience, delay and so forth. Lord Randolph remained inscrutably gay. That night the Queen showed him most gracious favour, and kept him long in conversation. He spoke of many matters of policy—of the new Procedure rules, of Ireland, even of the prospects of the coming session—but of his determination not one word escaped him. It was late when he retired, yet he proceeded forthwith to write his letter of resignation to Lord Salisbury. Hamilton, who came to press him once again, was treated with extreme good-humour, and had it all read out to him before it was despatched:—

Windsor Castle: December 20, 1886.

Dear Lord Salisbury,—The approximate Estimates for the Army and Navy for next year have been to-day communicated to me by George Hamilton and Smith. They amount to 31 millions—12½ millions for the Navy, 18½ millions for the Army. The Navy votes show a decrease of nearly 500,000l., but this is to a great extent illusory, as there is a large increase in the demand made by the Admiralty upon the War Office for guns and ammunition. The Army Estimates thus swollen show an increase of about 300,000l. The total 31 millions for the two Services, which will in all probability be exceeded, is very greatly in excess of what I can consent to. I know that on this subject I cannot look for any sympathy or effective support from you and I am certain that I shall find no supporters in the Cabinet. I do not want to be wrangling and quarreling in the Cabinet, and therefore must request to be allowed to give up my office and retire from the Government.

I am pledged up to the eyes to large reductions of expenditure, and I cannot change my mind on this matter. If the foreign policy of this country is conducted with skill and judgment, our present huge and increasing armaments are quite unnecessary, and the taxation which they involve perfectly unjustifiable. The War estimates might be very considerably reduced if the policy of expenditure on the fortifications and guns and garrisons of military posts, mercantile ports and coaling stations was abandoned or modified. But of this I see no chance, and under the circumstances I cannot continue to be responsible for the finances.

I am sure you will agree that I am right in being perfectly frank and straightforward on this question, to which I attach the very utmost importance: and, after all, what I have written is only a repetition of what I endeavoured to convey to you in conversation the other day.

Believe me to be
Yours most sincerely,
Randolph S. Churchill.

Early the next morning both Ministers left Windsor and returned to London. Lord Randolph bought, as was his custom, a number of newspapers, but found that neither he nor Hamilton had any change. The train was about to start, and the bookstall keeper, who knew both his customers by sight, cried: ‘Never mind, my lord—when you come back next time will do.’ Lord Randolph looked sideways at his companion and said, with a quaint smile, ‘He little knows I shall never come back.’

It happened that at this time Sir Henry Wolff was at home from his Egyptian mission, and he and Lord Randolph consorted together daily. Both went down to the City on Wednesday, the 22nd; for the Chancellor of the Exchequer had to pay an official visit to the Master of the Mint. Lord Randolph proposed returning by the Underground Railway, and it was while they were pacing the platform, waiting for a train, that Wolff asked some chance question about the Treasury intentions. ‘Upon my word,’ said Lord Randolph abruptly, ‘I don’t know now whether I am Chancellor of the Exchequer or not.’ But otherwise he never told a soul—not Beach, his trusted friend; not Chamberlain, his ally; not his mother; not even his wife. Lord Salisbury’s answer did not come till eight o’clock on Wednesday. He had delayed in order to write to his principal colleagues, sending copies of Lord Randolph’s letter, made laboriously with his own hand, and perhaps just in order to delay. It is certain that he did not regard the matter as settled. He wrote to Beach on the 21st that he was not sure whether Lord Randolph would persist. He sent no word to the Queen. Yet his answer, when it came, seemed conclusive. It proposed no compromise; it did not even suggest an interview; and the expression of regret with which it closed might apply either to the actual resignation or to the expressed intention to resign:—

Hatfield House, Hatfield, Herts: December 22, 1886.

My dear Randolph,—I have your letter of the 20th from Windsor. You tell me, as you told me orally on Thursday, that 31 millions for the two Services is very greatly in excess of what you can consent to; that you are pledged up to the eyes to large reductions of expenditure, and cannot change your mind in the matter; and that, as you feel certain of receiving no support from me or from the Cabinet in this view, you must resign your office and withdraw from the Government. On the other hand, I have a letter from Smith telling me that he feels bound to adhere to the Estimates which he showed you on Monday, and that he declines to postpone, as you had wished him to do, the expenditure which he thinks necessary for the fortification of coaling stations, military posts and mercantile ports.

In this unfortunate state of things I have no choice but to express my full concurrence with the view of Hamilton and Smith, and my dissent from yours—though I say it, both on personal and public grounds, with very deep regret. The outlook on the Continent is very black. It is not too much to say that the chances are in favour of war at an early date; and when war has once broken out, we cannot be secure from the danger of being involved in it. The undefended state of many of our ports and coaling stations is notorious, and the necessity of protecting them has been urged by a strong Commission, and has been admitted on both sides in debate. To refuse to take measures for their protection would be to incur the gravest possible responsibility. Speaking more generally, I should hesitate to refuse at this time any supplies which men so moderate in their demands as Smith and Hamilton declared to be necessary for the safety of the country.

The issue is so serious that it thrusts aside all personal and party considerations. But I regret more than I can say the view you take of it, for no one knows better than you how injurious to the public interests at this juncture your withdrawal from the Government may be.

In presence of your very strong and decisive language I can only again express my very profound regret.

Believe me
Yours very sincerely,
Salisbury.

Lord Randolph Churchill never doubted the meaning of the answer he had received, and treated it as a formal acceptance of his resignation. He concluded, as will appear, that the delay had been due to communications with the Queen, and that the whole matter was now ended. He sat down at once and wrote to Lord Salisbury a letter of farewell:—

Carlton Club: December 22, 1886.

Dear Lord Salisbury,—I have to acknowledge the receipt of your letter of to-day’s date accepting my resignation of the Chancellorship of the Exchequer.

I feel sure you will believe me when I express my deep and abiding appreciation of the unvarying kindness which you have shown me, and of the patience and indulgence with which you have always listened to the views on various public matters which I have from time to time submitted to you.

The great question of public expenditure is not so technical or departmental as might be supposed by a superficial critic. Foreign policy and free expenditure upon armaments act and react upon one another. I believe myself to be well informed on the present state of Europe, nor am I aware that I am blind or careless to the probabilities of a great conflict between European Powers in the coming year. A wise foreign policy will extricate England from Continental struggles and keep her outside of German, Russian, French or Austrian disputes. I have for some time observed a tendency in the Government attitude to pursue a different line of action which I have not been able to modify or check.

This tendency is certain to be accentuated if large estimates are presented to and voted by Parliament. The possession of a very sharp sword offers a temptation, which becomes irresistible, to demonstrate the efficiency of the weapon in a practical manner. I remember the vulnerable and scattered character of the Empire, the universality of our commerce, the peaceful tendencies of our democratic electorate, the hard times, the pressure of competition and the high taxation now imposed; and with these factors vividly before me I decline to be a party to encouraging the military and militant circle of the War Office and Admiralty to join in the high and desperate stakes which other nations seem to be forced to risk.

Believe me, I pray you, that it is not niggardly cheese-paring or Treasury crabbedness, but only considerations of high state policy which compel me to sever ties in many ways most binding and pleasant.

A careful and continuous examination and study of national finance, of the startling growth of expenditure, of national taxation resources and endurance, has brought me to the conclusion from which nothing can turn me, that it is only the sacrifice of a Chancellor of the Exchequer upon the altar of thrift and economy which can rouse the people to take stock of their leaders, their position and their future.

The character of the domestic legislation which the Government contemplate in my opinion falls sadly short of what the Parliament and the country expect and require. The foreign policy which is being adopted appears to me at once dangerous and methodless; but I take my stand on expenditure and finance, which involve and determine all other matters. And reviewing my former public declarations on this question and having no reason to doubt their soundness, I take leave of your Government, and especially of yourself, with profound regret, but without doubt or hesitation.

Yours most sincerely,
Randolph S. Churchill.

After writing this letter he went down to the Times office, imparted his priceless information to Mr. Buckle, authorised him to make it public, and so to bed. Lord Salisbury received this second letter at half-past one in the morning of the 23rd, and realised that the breach was definite. He posted the news at once to the Queen; but he was already too late. With the first light of the morning the announcement appeared in the Times.

This action of Lord Randolph Churchill in resigning the office he held in such a manner and on such an occasion has two aspects—a smaller and a larger. Both are partly true: neither by itself is comprehensive. The smaller aspect is that of a proud, sincere, overstrained man conceiving himself bound to fight certain issues, at whatever cost to himself—believing at each movement that victory would be won, and drawn by every movement further into a position from which he could not or would not retreat. The larger aspect deserves somewhat longer consideration. The differences between the Chancellor of the Exchequer and his colleagues were matters of detail and might easily have been compacted. The difference between the Leader of the House of Commons and the Prime Minister was fundamental. It must be plain to the reader who has persevered so far. It glows through the correspondence included in this chapter. It was a difference of belief, of character, of aspiration—and by nothing could it ever have been adjusted. There were many considerations and influences which worked powerfully for their agreement. In the Union they found a common cause; in Mr. Gladstone they faced a common antagonist. Lord Randolph’s fiercest invective did not jar upon the ‘master of flouts and jeers.’ Neither could be insensible to the personal fascination of the other. Both rejoiced in a wide and illuminating survey of public affairs; both dwelt much upon the future; both preserved a cynical disdain of small men seeking paltry ends. But the gulf which separated the fiery leader of Tory Democracy—with his bold plans of reform and dreams of change, with his record of storm and triumph and slender expectations of a long life—from the old-fashioned Conservative statesman, the head of a High Church and High Tory family, versed in diplomacy, representative of authority, wary, austere, content to govern—was a gulf no mutual needs, no common interests, no personal likings could permanently bridge. They represented conflicting schools of political philosophy. They stood for ideas mutually incompatible. Sooner or later the breach must have come; and no doubt the strong realisation of this underlay the action of the one and the acquiescence of the other.

I have tried to show that this profound difference found expression on many specific points. The Cabinet of 1886 had sat together only five months, yet here already were five important matters of disagreement:—The policy to be pursued in the East of Europe; the complexion of the Local Government Bill; the attitude towards the Whigs; the character of the Budget; and lastly, the direct cause of rupture, the expenditure upon armaments. Longer association threatened merely a multiplication and aggravation of divergences. But though patience could not have ended in agreement, it might have brought disagreement to another end. And it is from this point of view that Lord Randolph Churchill’s action requires most careful examination.

The differences upon specific points, regarded singly, were serious; and together they became vital. But they were differences less of principle than of degree. No clear and abrupt dividing-line was presented; and the questions were always of ‘more or less,’ not of ‘yes or no.’ Why should Lord Randolph Churchill not, then, have kept his offices? Would he not, by so doing, have had a much better chance of imparting to Conservative policy the complexion he desired? Much was to be gained by waiting. Every day his position was becoming more assured. At every stage and turn of Cabinet discussion he could have laboured to deflect the course of legislation; and the House of Commons might be guided more easily than his colleagues. In a hundred small ways he could, without any breach of confidence, have served the ends he had in view. But his gorge rose at it. It was almost impossible to him to defend courses of which he disapproved: and in the position he held every act of the Government must be constantly and whole-heartedly defended by him. Imagination might foresee this new Administration, which he more than any man had called into being, drifting irresistibly towards military ambitions and European entanglements, ending perhaps at last in war: and in all this he must be the principal agent—the man who had to make the House of Commons consent. No—at the very outset a decision must be taken and a pacific and progressive domestic policy established. Without that assurance the honours and amenities of power—and no one enjoyed them more—seemed valueless; and the money—a matter, as we have seen, in itself from other points of view of much consequence—a thing not to be considered for a moment.

Of course, he hoped the others would give way—would, at any rate, make some considerable concession, which would leave him proportionately strengthened. ‘With respect to Local Government,’ he wrote to Mr. Chamberlain on the 19th, ‘I pressed Lord Salisbury and Mr. Goschen very hard to give up the idea of ex officio representation, and’ (a significant sentence) ‘possibly my arguments may not be altogether without effect.’ How could they do without him? Who was there to fill the Treasury? Could Smith make head against Gladstone in Parliament? Was Lord Salisbury the man to maintain the alliance with the Chamberlain of 1886? Would Stanhope vindicate the Government in the constituencies? Balfour was unknown: Beach was ailing: Goschen was ‘very hard to please’: and the Whigs doubtful and contrary. Beyond all question he was the most powerful and efficient instrument at the disposal of the Prime Minister—probably, as it seemed, the only instrument which would be effective. And since so powerful and necessary, and moreover being possessed of a complete scheme and temper of political thought largely accepted among the people, he was bound to put it to the proof whether he should not exert an influence upon policy compatible with his public pledges and proportioned to his usefulness to the Government. But still a more patient man would have waited.

Undoubtedly he expected to prevail. What he asked was in itself a small thing: ‘Cannot this vote for coaling stations, for instance, stand over till next year?’—some petty economy; but still an economy, and an economy in armaments. He knew that if they had wished to meet him, they could easily have compounded. Reductions greater than would have kept him, were made after he was gone. And since it was thus revealed that his colleagues did not wish to act with him, what a prospect of vexation and disappointment and special pleadings the future unveiled!—unless the matter could be settled at the very beginning and a peaceful and progressive policy assured.

It seems, however, very surprising that Lord Randolph Churchill should at this period have overlooked the anger and jealousy that his sudden rise to power had excited. In little more than a year two Administrations had been formed from the Conservative party. In the making of both of these his influence had been almost supreme; and it had been an influence which, from the point of view of ordinary Parliamentary promotion, had been disturbing and even revolutionary. Men who in quieter tunes would have received office had been disappointed. Others who had enjoyed what they considered almost prescriptive right, had been forced out. The former leader of the Conservative party had been driven from the House of Commons. Mr. Matthews had been raised from private life to one of the highest posts in the Cabinet. This one, hitherto unknown, had been jumped up: that one, so long respected, had been thrust down. Malice proved a stronger motive power than gratitude; and, although unquestioned success had crowned the struggle, bitterness and resentment gathered behind the conqueror.

Nor, indeed, do we think he should have counted much upon the good-will of the plain member. He was often—and seemed to be, more often still—in things political a hard man, reaping where he had not sown, severe to exact service and obedience, hasty in judgment, fierce in combat; and many a black look or impatient word had been remembered against him by those of whose existence he was perhaps scarcely conscious. Friends he had in plenty—some of them true ones; but, for all the personal charm he could exert at will, his manner had added to his enemies. Venerable Ministers saw a formidable intruder who had entered the Cabinet by adventurous and unusual paths. Austere Conservatives shrank from this alarming representative of the New Democracy. Worthy men thoughtlessly slighted, tiresome people ruthlessly snubbed, office-seekers whose pretensions had been ignored, Parliamentary martinets concerned for party discipline, all were held in check only so long as he was powerful. His position had been won by the sword, and he must be armed to keep it.

Yet at this moment, when he proposed to try conclusions with all the strongest forces in the Conservative party, he seems to have taken no single precaution to safeguard himself. He gave the Cabinet long and ample notice of his intention. He reiterated his determination at intervals through the autumn. He knew that Smith and Hamilton took counsel together: he knew that they had prevailed upon Lord Salisbury; and that if in the end they should resist stubbornly, their resistance would not be ill-considered or unprepared. Upon the other hand, he made no effort to rally his own friends. A third at least of the Government were men of his own choice. Beach would have made great exertions on his behalf. But no one was consulted. He was in constant and intimate intercourse with Chamberlain. Their views at this tune were almost identical; their relations most cordial. Yet he gave him no knowledge of the situation, nor dreamed of inviting his support: so strictly—quixotically even—did he interpret the idea of Cabinet loyalty.

Few men then alive were more skilled in political tactics, or knew better how to deal with a crisis. If he had made up his mind to break with the Government, there were many ways in which the severance might have been made effective. First, as to time. I have said a more patient man would have waited; a more unscrupulous man would most certainly have waited. The power of a Leader of the House of Commons whose chief is in the House of Lords, always immense, is far greater when Parliament is sitting. He is the general in the field at the head of the army. The other waits at home, trying to make what he can of the despatches. Moreover, the House of Commons, for all its staid and sober qualities, is sometimes, and was particularly in times like these, an organism of impulse. A sudden announcement; a brilliant and persuasive speech; powerful support coming from an unexpected quarter; panic, emotion, or excitement, and fine majorities may crumble into dust.

He could with perfect ease and candour have postponed the issue; and had he done so the danger to the Government must have been enormously increased. He resigned, however, at Christmas-time, when politicians were scattered far and wide on their holidays, when the temperature was low, and when three clear weeks intervened before the reconstructed Government would have to meet Parliament, and before he would have an opportunity of explanation. It was scarcely possible to have chosen a season better suited to the interests of his colleagues or more unpromising to his own.

Then as to the ground of battle. I have tried to show that this insignificant reduction of a military vote, on which he insisted, was the peg upon which the tremendous issues of a peaceful domestic administration as against an ambitious foreign policy supported by growing armaments depended. But what a bad peg to have chosen! Granted a divergence not to be compacted between Lord Randolph and the Cabinet, how many more promising issues presented themselves! Questions of Local Government, questions of Coercion, questions of taxation, rose thorny and menacing on every side. Indeed, it is clearly evident that Lord Randolph neither formed a deliberate plan nor expected to supplant Lord Salisbury or overthrow the Government; but that, on the contrary, in so far as he was careful at all, he was more careful of their interest than of his own.

There is scarcely any more abundant source of error in history than the natural desire of writers—regardless of the overlapping and inter-play of memories, principles, prejudices and hopes, and the reaction of physical conditions—to discover or provide simple explanations for the actions of their characters. It would be a barren task to set forth the motives of this affair in a schedule. Yet the main causes emerge—shadowy perhaps, but unmistakable. Lord Randolph Churchill did not think of himself as a man, but rather as the responsible trustee and agent of the Tory Democracy; and this temper, overpowering even the most attractive personal associations, impelled him by deliberate steps—yet not without deep despondency—towards a fateful issue: and all the while a feeling, partly of sombre pride, partly of loyalty, forbade him to take the necessary and obvious steps to protect himself. Ambushes, intrigues, cabals, might suit the free-lance of Fourth Party days; but an official leader of a great party could only state the terms on which his assistance could be obtained, and, if it were not worth while to grant them, could only go.

It may no doubt be observed that this was the highest imprudence; that it agreed very little with much that he had done before, and not at all with the impression formed in the public mind. If he had put away for a season his pledges and his pride, both might have been recovered with interest later on. As it was, he delivered himself, unarmed, unattended, fettered even, to his enemies; and therefrom ensued not only his own political ruin, but grave injury to the causes he sustained. Yet it is noteworthy that he never repented of the course he had taken. Bitterly as he regretted the consequences, and felt the abuse and misrepresentation of which he was the object, and the exclusion from the fascinating and exciting life into which he had been drawn, he was not wont by word or letter to admit that he was wrong to resign, or assert that, having again the opportunity, he would do otherwise. He looked upon the action as the most exalted in his life, and as an event of which, whatever the results to himself, he might be justly proud. ‘I had to do it—I could be no longer useful to them.’

It should, indeed, not escape notice that there was among the principal characters in English politics during this momentous time a high and disinterested air, very refreshing in contrast with the humiliating antics of the place-hunters and trinket-seekers who surrounded them, and more admirable than the selfish ambitions of the statesmen of a sterner age. Sir Michael Hicks-Beach refuses the Leadership of the House of Commons, and insists upon serving under a younger man who in his opinion can better fill the place. Sir Stafford Northcote in the interests of party union voluntarily effaces himself in a peerage. Lord Salisbury twice offers to be a member of a Hartington Administration, and Lord Hartington twice refuses to be the First Minister of the Crown. Sir Henry James on a matter of principle severs himself from Mr. Gladstone and refuses the Woolsack. Lastly, Mr. Chamberlain leaves the party of which he must one day have been the leader, relinquishes the great office and power he had already obtained, and, confronted at every step by distrust and pursued at every step by obloquy, sets forth upon his long, eventful pilgrimage. Among all these indications of the healthy and generous conditions of English public life, so full of honour for our race and of vindication for its institutions, the resignation of Lord Randolph Churchill need not suffer by any impartial comparison.

                                                                                                                                                                                                                                                                                                           

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