Mr. Gladstone's crushing exposé of the blunders of Mr. Disraeli's budget was almost ludicrous in its completeness, and it was universally felt that the scheme could not survive his brilliant attack. The effect that the merciless criticism of Disraeli's budget was not only the discomfiture of Mr. Disraeli and the overthrow of the Russell administration, but the elevation of Mr. Gladstone to the place vacated by Chancellor Disraeli.
The Earl of Aberdeen became Prime Minister. The new government was a coalition of Whigs and Peelites, with a representative of the Radicals in the person of Sir William Molesworth. Mr. Gladstone, the Duke of Newcastle, Sir James Graham and Mr. Sidney Herbert were the Peelites in the Cabinet. Mr. Gladstone was chosen Chancellor of the Exchequer.
We may refer here to a letter of Mr. Gladstone, written Christmas, 1851, in order to show his growing Liberalism. The letter was to Dr. Skinner, Bishop of Aberdeen and Primus, on the positions and functions of the laity in the Church. This letter is remarkable, because, as Dr. Charles Wordsworth, Bishop of St. Andrew's, said at the time, "it contained the germ of liberation and the political equality of all religions." The Bishop published a controversial rejoinder, which drew from Dr. Gaisford, Dean of Christ Church, these emphatic words: "You have proved to my satisfaction that this gentleman is unfit to represent the University," meaning the representation for Oxford in Parliament.
This feeling was growing, for when the Russell Ministry fell and it became necessary for Mr. Gladstone, because he accepted a place in the Cabinet, to appeal for re-election to his constituents at Oxford, he met with much opposition, because of his Liberalism. Appealing to his university to return him, and endorse his acceptance of office in the new Ministry of the Earl of Aberdeen, Mr. Gladstone soon discovered that he had made many enemies by his manifest tendencies toward Liberal-Conservatism. He had given unmistakable evidence that he held less firmly the old traditions of that unbending Toryism of which he was once the most promising representative. Lord Derby, whom he had deposed, had been elected Chancellor of the University to succeed the Duke of Wellington, deceased. Consequently his return to the House was ardently contested. His opponents looked around for a candidate of strong Conservative principles. The Marquis of Chandos, who was first elected, declined to run in opposition to Mr. Gladstone; but at length a suitable opponent was found in Mr. Dudley Perceval, of Christ Church, son of the Right Hon. Spencer Perceval, who was nominated January 4th.
Dr. Hawkins, Provost of Oriel, one of the twenty colleges of Oxford, proposed Mr. Gladstone, and Archdeacon Denison, leader of the High Church party, proposed Mr. Dudley Perceval. According to the custom at university elections, neither candidate was present. It was objected to Mr. Gladstone that he had voted improperly on ecclesiastical questions, and had accepted office in "a hybrid ministry." The "Times" described Mr. Perceval as "a very near relative of our old friend Mrs. Harris. To remove any doubt on this point, let him be exhibited at Exeter Hall with the documentary evidence of his name, existence and history; his first-class, his defeat at Finsbury, his talents, his principles. If we must go to Oxford to record our votes it would at least be something to know that we were voting against a real man and not a mere name." The "Morning Chronicle," on the other hand, affirmed that a section of the Carleton Club were "making a tool of the Oxford Convocation for the purpose of the meanest and smallest political rancor against Mr. Gladstone."
Mr. Gladstone, who fought the battle on ecclesiastical lines, wrote, after the nomination, to the chairman of his election committee, as follows:
"Unless I had a full and clear conviction that the interests of the Church, whether as relates to the legislative functions of Parliament, or the impartial and wise recommendation of fit persons to her majesty for high ecclesiastical offices, were at least as safe in the hands of Lord Aberdeen as in those of Lord Derby (though I would on no account disparage Lord Derby's personal sentiments towards the Church), I should not have accepted office under Lord Aberdeen. As regards the second, if it be thought that during twenty years of public life, or that during the latter part of them, I have failed to give guarantees of attachment to the interests of the Church—to such as so think I can offer neither apology nor pledge. To those who think otherwise, I tender the assurance that I have not by my recent assumption of office made any change whatever in that particular, or in any principles relating to it."
Mr. Gladstone was again elected by a fair majority and returned to Parliament. Seventy-four of the professors voted for Mr. Gladstone and fifteen for Mr. Perceval.
When Parliament assembled the Earl of Aberdeen announced in the House of Lords that the measures of the Government would be both Conservative and Liberal,—at home to maintain Free Trade principles and to pursue the commercial and financial system of the late Sir Robert Peel, and abroad to secure the general peace of Europe without relaxing defensive measures.
Mr. Gladstone had already proved himself to have a wonderful mastery of figures, and the confused technicalities of finance. He did not disappoint the hopes of his friends in regard to his fiscal abilities. On the contrary, he speedily inaugurated a new and brilliant era in finance. Previous to presenting his first budget, in 1853, Mr. Gladstone brought forward a scheme for the reduction of the national debt, which was approved by Radicals as well as Conservatives, and adopted by the House. The scheme worked most successfully until the breaking out of the Crimean war. During this very short period of two years the public debt was reduced by more than $57,500,000.