Of the four or five most memorable administrations of the century, the great conservative government of Sir Robert Peel was undoubtedly one. It laid the groundwork of our solid commercial policy, it established our railway system, it settled the currency, and, by no means least, it gave us a good national character in Europe as lovers of moderation, equity, and peace. Little as most members of the new cabinet saw it, their advent definitely marked the rising dawn of an economic era. If you had to constitute new societies, Peel said to Croker, then you might on moral and social grounds prefer cornfields to cotton factories, and you might like an agricultural population better than a manufacturing; as it was, the national lot was cast, and statesmen were powerless to turn back the tide. The food of the people, their clothing, the raw material for their industry, their education, the conditions under which women and children were suffered to toil, markets for the products of loom and forge and furnace and mechanic's shop,—these were slowly making their way into the central field of political vision, and taking the place of fantastic follies about foreign dynasties and the balance of power as the true business of the British statesman. On the eve of entering parliament (September 17, 1832), Mr. Gladstone recounts some articles of his creed at the time to his friend Gaskell, and to modern eyes a curious list it is. The first place is given to his views on the relative merits of Pedro, Miguel, Donna Maria, in respect of the throne of Portugal. The second goes to Poland. The third to the affairs of Lombardy. Free trade comes last. This was still the lingering fashion of the moment, and it died hard.
The new ministry contained an unusual number of men of mark and capacity, and they were destined to form a striking group. At their head was a statesman whose fame grows more impressive with time, not the author or inspirer of large creative ideas, but with what is at any rate next best—a mind open and accessible to those ideas, and endowed with such gifts of skill, vigilance, caution, and courage as were needed for the government of a community rapidly passing into a new stage of its social growth. One day in February 1842, he sent for Mr. Gladstone on some occasion of business. Peel happened not to be well, and in the course of the conversation his doctor called. Sir James Graham who had come in, said to his junior in Peel's absence with the physician, 'The pressure upon him is immense. We never had a minister who was so truly a first minister as he is. He makes himself felt in every department, and is really cognisant of the affairs of each. Lord Grey could not master such an amount of business. Canning could not do it. Now he is an actual minister, and is indeed capax imperii.' Next to Peel as parliamentary leaders stood Graham himself and Stanley. They had both of them sat in the cabinet of Lord Grey, and now found themselves the colleagues of the bitterest foes of Grey's administration. As we have seen, Mr. Gladstone pronounces Graham to have known more about economic subjects than all the rest of the government put together. Such things had hitherto been left to men below the first rank in the hierarchy of public office, like Huskisson. Pedro and Miguel held the field.
END OF HIS PROTECTIONIST STAGE
Mr. Gladstone's own position is described in an autobiographic fragment of his last years:—
When I entered parliament in 1832, the great controversy between protection or artificial restraint and free trade, of which Cobden was the leading figure, did not enter into the popular controversies of the day, and was still in the hands of the philosophers. My father was an active and effective local politician, and the protectionism which I inherited from him and from all my youthful associations was qualified by a thorough acceptance of the important preliminary measures of Mr. Huskisson, of whom he was the first among the local supporters. Moreover, for the first six years or so of my parliamentary life free trade was in no way a party question, and it only became strictly such in 1841 at, and somewhat before, the general election, when the whig government, in extremis, proposed a fixed duty upon corn. My mind was in regard to it a sheet of white paper, but I accepted the established conditions in the lump, and could hardly do otherwise. In 1833 only, the question was debated in the House of Commons, and the speech of the mover against the corn laws made me uncomfortable. But the reply of Sir James Graham restored my peace of mind. I followed the others with a languid interest. Yet I remember being struck with the essential unsoundness of the argument of Mr. Villiers. It was this. Under the present corn law our trade, on which we depend, is doomed, for our manufacturers cannot possibly contend with the manufacturers of the continent if they have to pay wages regulated by the protection price of food, while their rivals pay according to the natural or free trade price. The answer was obvious. 'Thank you. We quite understand you. Your object is to get down the wages of your workpeople.' It was Cobden who really set the argument on its legs; and it is futile to compare any other man with him as the father of our system of free trade.
I had in 1840 to dabble in this question, and on the wrong side of it152.... The matter passed from my mind, full of churches and church matters, in which I was now gradually acquiring knowledge. In 1841 the necessities of the whig government led to a further development of the great controversy; but I interfered only in the colonial part of it in connection with the colonies and the slave trade to Porto Rico and Brazil. We West Indians were now great philanthropists! When Sir Robert Peel assumed the government he had become deeply committed to protection, which in the last two or three years had become the subject of a commanding controversy. I suppose that at Newark I followed suit, but I have no records. On the change of government Peel, with much judgment, offered me the vice-presidentship of the board of trade. On sound principles of party discipline, I took the office at once; and having taken it I set to work with all my might as a worker. In a very short time I came to form a low estimate of the knowledge and information of Lord Ripon; and of the cabinet Sir James Graham, I think, knew most. And now the stones of which my protectionism was built up began to get uncomfortably loose. When we came to the question of the tariff, we were all nearly on a par in ignorance, and we had a very bad adviser in Macgregor, secretary to the board of trade. But I had the advantage of being able to apply myself with an undivided attention. My assumption of office at the board of trade was followed by hard, steady, and honest work; and every day so spent beat like a battering ram on the unsure fabric of my official protectionism. By the end of the year I was far gone in the opposite sense. I had to speak much on these questions in the session of 1842, but it was always done with great moderation.
II
PEEL'S SLOW CONVERSION
The case on the accession of the new ministers was difficult. Peel himself has drawn the picture. By incompetent finance, by reckless colonial expenditure, by solving political difficulties through gifts or promises of cash from the British treasury, by war and foreign relations hovering on the verge of war and necessitating extended preparations, the whigs had brought the national resources into an embarrassment that was extreme. The accumulated deficits of five years had become a heavy incubus, and the deficit of 1842-3 was likely to be not less than two and a half millions more. Commerce and manufactures were languishing. Distress was terrible. Poor-rates were mounting, and grants-in-aid would extend impoverishment from the factory districts to the rural. 'Judge then,' said Peel, 'whether we can with safety retrograde in manufactures.'153
So grave a crisis could only be met by daring remedies. With the highest courage, moral courage no less than political, Peel resolved to ask parliament to let him raise four or five millions a year by income-tax, in order to lower the duties on the great articles of consumption, and by reforming the tariff both to relieve trade, and to stimulate and replenish the reciprocal flow of export and import. That he at this time, or perhaps in truth at any time, had acquired complete mastery of those deeper principles and wider aspects of free trade of which Adam