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 [pg 060] 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.[41] 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.”
III
Effect Upon The Public Service
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.”[42] 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 [pg 062] 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 (April 16): “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 (Jan. 5, 1864), “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 (economy such as I understand it) 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 (for before that a good spirit had prevailed for some twenty-five years).
Bagehot, that economist who united such experience and sense with so much subtlety and humour, wrote to Mr. [pg 063] 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.
Heroic In Economy
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.”[43] 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, [pg 064] 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 (1859):—