CHAPTER XIII GREAT BUDGETS

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The year 1860 marked the beginning of the second half of Mr. Gladstone's life as a statesman, in which he stood prominently forward as a Reformer. July 18, 1859, as Chancellor in the Liberal government of Lord Palmerston, he brought forward his budget. The budget of 1860 was the greatest of all his financial measures, for a new departure was taken in British commerce and manufactures. Mr. Cobden, in behalf of the English Government, had negotiated with France a treaty based on free trade principles—"a treaty which gave an impetus to the trade of this country, whose far-reaching effects are felt even to our day."

The Chancellor explained the various propositions of his financial statements. Speaking of discontent with the income tax he observed: "I speak on general terms. Indeed, I now remember that I myself had, about a fortnight ago, a letter addressed to me complaining of the monstrous injustice and iniquity of the income tax, and proposing that, in consideration thereof, the Chancellor of the Exchequer should be publicly hanged."

Mr. Gladstone said that the total reduction of duties would be over £1,000,000, requiring a slight extension of taxation; that by this means nearly £1,000,000 would be returned to the general revenue; that the loss to the revenue by the French Treaty, which was based upon free trade principles, and the reduction of duties, would be half made up by the imposts specified; that the abolition of the paper duty would produce the happiest results from the spread of cheap literature. The reductions proposed would give a total relief to the consumer of nearly £4,000,000, and cause a net loss of the revenue of over £2,000,000, a sum about equivalent to the amount coming in from the cessation of government annuities that year. The total revenue was £70,564,000, and as the total expenses of government was £70,000,000, there remained an estimated surplus of £464,000.

Mr. Gladstone concluded; "There were times, now long by, when sovereigns made progress through the land, and when at the proclamation of their heralds, they caused to be scattered whole showers of coin among the people who thronged upon their steps.... Our Sovereign is enabled, through the wisdom of her great council, assembled in Parliament around her, again to scatter blessings among her subjects by means of wise and prudent laws; of laws which do not sap in any respect the foundations of duty or of manhood, but which strike away the shackles from the arm of industry."

"It was one of the peculiarities of Mr. Gladstone's budget addresses that they roused curiosity in the outset, and, being delivered in a musical, sonorous, and perfectly modulated voice, kept the listeners interested to the very close. This financial statement of 1860 was admirably arranged for the purpose of awakening and keeping attention, piquing and teasing curiosity, and sustaining desire to hear from the first sentence to the last. It was not a speech, it was an oration, in the form of a great State paper, made eloquent, in which there was a proper restraint over the crowding ideas, the most exact accuracy in the sentences, and even in the very words chosen; the most perfect balancing of parts, and, more than all, there were no errors or omissions; nothing was put wrongly and nothing was overlooked. With a House crowded in every corner, with the strain upon his own mental faculties, and the great physical tax implied in the management of his voice, and the necessity for remaining upon his feet during this long period, 'the observed of all observers,' Mr. Gladstone took all as quietly, we are told, as if he had just risen to address a few observations to Mr. Speaker. Indeed, it was laughingly said that he could address a House for a whole week, and on the Friday evening have taken a new departure, beginning with the observation, 'After these preliminary remarks, I will now proceed to deal with the subject matter of my financial plan.'"

The ministry was supported by large majorities, and carried their measures, but when the bill for the repeal of the duty on paper at home, as well as coming into the country, came before the House of Lords, it was rejected. Mr. Gladstone appeared to be confronted by the greatest constitutional crisis of his life. He gave vent to his indignation, and declared that the action of the Lords was a gigantic innovation, and that the House of Commons had the undoubted right of selecting the manner in which the people should be taxed. This speech was pronounced by Lord John Russell "magnificently mad," and Lord Granville said that "it was a toss-up whether Gladstone resigned or not, and that if he did it would break up the Liberal party." Quiet was finally restored, and the following year Mr. Gladstone adroitly brought the same feature before the Lords in a way that compelled acceptance.

The budget of 1861 showed a surplus of £2,000,000 over the estimated surplus, and proposed to remit the penny on the income tax, and to repeal the paper duty. Instead of being divided into several bills as in the previous year, the budget was presented as a whole—all included in one. By this device the Lords were forced to acquiesce in the repeal of the paper duty, or take the responsibility of rejecting the whole bill. The Peers grumbled, and some of them were enraged. Lord Robert Cecil, now Marquis of Salisbury, rudely declared that Mr. Gladstone's conduct was only worthy of an attorney. He begged to apologize to the attorneys. They were honorable men and would have scorned the course pursued by the ministers. Another member of the House of Lords protested that the budget gave a mortal stab to the Constitution. Mr. Gladstone retorted: "I want to know, to what Constitution does it give a mortal stab? In my opinion it gives no mortal stab, and no stab at all, to any Constitution that we are bound to care for. But, on the contrary, so far as it alters anything in the most recent course of practice, it alters in the direction of restoring that good old Constitution which took its root in Saxon times, which grew from the Plantagenets, which endured the iron repression of the Tudors, which resisted the aggressions of the Stuarts, and which has come to its full maturity under the House of Brunswick. I think that is the Constitution, if I may presume to say so, which it is our duty to guard, and which—if, indeed, the proceedings of this year can be said to affect it at all—will be all the better for the operation. But the Constitution which my right honorable friend worships is a very different affair."

In 1860, Mr. Gladstone was elected Lord Rector of Edinburgh University, and the degree of LL.D. was conferred upon him.

Mr. Gladstone, in 1861, introduced one of his most beneficial measures—a bill creating the Post Office Savings Bank. The success of the scheme has gone beyond all expectation. At the close of 1891, the amount deposited was £71,608,002, and growing at the average rate of over £4,000,000 annually.

Mr. Gladstone's financial measures for 1862, while not involving such momentous issues as those of the preceding year, nevertheless encountered considerable opposition. The budget was a stationary one, with no surplus, no new taxes, no remission of taxes, no heavier burdens.

In October, 1862, Mr. and Mrs. Gladstone made a journey down the Tyne, which is thus described: "It was not possible to show to royal visitors more demonstrations of honor than were showered on the illustrious Commoner and his wife.... At every point, at every bank and hill and factory, in every opening where people could stand or climb, expectant crowds awaited Mr. Gladstone's arrival. Women and children, in all costumes and of all conditions, lined the shores ... as Mr. and Mrs. Gladstone passed. Cannon boomed from every point;... such a succession of cannonading never before greeted a triumphant conqueror on the march."

It was during this journey that Mr. Gladstone made the memorable speech, at New Castle, upon the American Civil War, which had broken out the same year. There had been much speculation as to whether the English government would recognize the Confederacy as a separate and independent power, and the utterance of a member of the Cabinet under the circumstances was regarded as entirely unwarranted. Mr. Gladstone himself frankly acknowledged his error in 1867: "I must confess that I was wrong; that I took too much upon myself in expressing such an opinion. Yet the motive was not bad. My sympathies were then—where they had long before been, where they are now—with the whole American people."

The session of 1863 was barren of important subjects of debate, and hence unusual interest was centered in the Chancellor's statement, which was another masterly financial presentation, and its leading propositions were cordially received. The whole reduction of taxation for the year was £3,340,000, or counting the total reductions, present and prospective, of £4,601,000. This still left a surplus of £400,000.

In four years £8,000,000 had been paid for war with China out of the ordinary revenues. A proposition to subject charities to the income tax, although endorsed by the whole cabinet, led to such powerful opposition throughout the country that it was finally withdrawn. The arguments of the Chancellor were endorsed by many who were opposed to the indiscriminate and mistaken beneficence which was so prevalent on death-beds.

A bill was introduced at this session by Sir Morton Peto, entitled the "Dissenters' Burial Bill," the object of which was to enable Nonconformists to have their own religious rites and services, and by their own ministers, in the graveyards of the Established Church. The bill was strongly opposed by Lord Robert Cecil and Mr. Disraeli. Mr. Gladstone favored the measure. The bill was rejected, and Mr. Gladstone at a later period discovered that his progress in ecclesiastical and political opinions was creating a breach between himself and his constituents at Oxford.

Mr. Gladstone's financial scheme for 1864 was received with undiminished interest. It was characterized as "a policy of which peace, progress and retrenchment were the watchwords." An available surplus of £2,260,000 enabled him to propose reductions.

The subject of reform, which had been coming up in the House of Commons in one way or another and agitating the House and the country since 1859, when the Conservative party was beaten on the question, reappeared in 1864. The question of lowering the borough franchise came up, and Mr. Gladstone startled the House and the country by his declaration upon the subject of reform, which showed the rapid development of his views upon the subject. The Conservative party was filled with alarm, and the hopes of the Reform party correspondingly elated. "The eyes of all Radical Reformers turned to Mr. Gladstone as the future Minister of Reform in Church and State. He became from the same moment an object of distrust, and something approaching to detestation in the eyes of all steady-going Conservatives."

Mr. Gladstone said: "I say that every man who is not presentably incapacitated by some consideration of personal unfitness or political danger, is morally entitled to come within the pale of the constitution." This declaration was the first note sounded in a conflict which, twelve months later, was to cost Mr. Gladstone his seat for Oxford University, and finally to culminate in the disruption of the Liberal Government. The general feeling in regard to this speech was that if the Liberal party had failed in its duty on the subject of reform in the existing Parliament after Mr. Gladstone's utterances, that the condition of things must undergo a change, so great was the effect of his speech in the country. The bill, which was presented by a private member and lost, was made memorable by the speech of the Chancellor. The eyes of careful political leaders were again turned towards Mr. Gladstone, and strong predictions made of his coming exaltation to the Premiership. Mr. Speaker Denison said, in October, 1864: "I now anticipate that Mr. Gladstone will be Premier. Neither party has any leader. I hope Mr. Gladstone may get support from the Conservatives who now support Palmerston." And these expectations were known to Mr. Gladstone himself, for Bishop Wilberforce had a conversation with him and writes: "Long talk with Gladstone as to Premiership: he is for acting under John Russell." Again to Mr. Gladstone: "Anything which breaks up, or tends to break up, Palmerston's supremacy, must bring you nearer to the post in which I long to see you, and, if I live, shall see you." Lord Palmerston himself said: "Gladstone will soon have it all his own way; and whenever he gets my place we shall have strange things."

The hostile feeling towards the Palmerston government, which had been growing in intensity, chiefly on the ground of its foreign policy, reached its full height in a fierce battle between the Ministry and the Opposition. July 4, 1864, Mr. Disraeli brought forward his motion of "no confidence." Mr. Gladstone replied for the government, and sought to rebut the accusations made by the leader of the Opposition. He said that it was the very first time in which the House of Commons had been called upon to record the degradation of the country, simply for the sake of displacing a ministry.

An amusing episode which occurred during this debate is worthy of record here; Mr. Bernard Osborne "grew amusingly sarcastic at the expense of the government, though he paid at the same time a great compliment to Mr. Gladstone. He likened the Cabinet to a museum of curiosities, in which there were some birds of rare and noble plumage, both alive and stuffed. There had been a difficulty, unfortunately, in keeping up the breed, and it was found necessary to cross it with the famous Peelites. 'I will do them the justice to say that they have a very great and noble Minister among them in the Chancellor of the Exchequer, and it is to his measures alone that they owe the little popularity and the little support they get from this Liberal party.' Describing Mr. Milner Gibson, the honorable gentleman said he was like some 'fly in amber,' and the wonder was 'how the devil he got there.' Mr. Cobden and Mr. Bright must have been disappointed in this 'young man from the country.' He had become insolent and almost quarrelsome under the guidance of the noble lord. Should that Parliament decide on terminating its own and their existence, they would find consolation that the funeral oration would be pronounced by Mr. Newdegate, and that some friendly hand would inscribe on their mausoleum, 'Rest and be thankful.'" Mr. Disraeli's motion was lost, and the ministry was sustained.

The budget of 1865 represented the country as in a prosperous financial condition. The total reduction was over £5,000,000. Such a financial showing gained the warm approval of the people, and excited but little opposition in the House. It was evident that a master-hand was guiding the national finances, and fortunately the Chancellor's calculations were verified by the continued prosperity of the country. At a later period, in commenting upon the policy of the two parties—Conservative and Liberal—Mr. Gladstone said: "From thence it follows that the policy of the Liberal party has been to reduce the public charges and to keep the expenditure within the estimates, and, as a result, to diminish the taxation of the country and the national debt; that the policy of the Tory government, since they took office in 1866, has been to increase the public charges, and to allow the departments to spend more than their estimates, and, as a result, to create deficits and to render the reduction of taxation impossible. Which policy will the country prefer?"



                                                                                                                                                                                                                                                                                                           

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