In July, war broke out suddenly between France and Germany, which resulted in the dethronement of Napoleon III. England preserved neutrality. However, Mr. Gladstone had his opinion regarding the war and thus represented it: "It is not for me to distribute praise and blame; but I think the war as a whole, and the state of things out of which it has grown, deserve a severer condemnation than any which the nineteenth century has exhibited since the peace of 1815." And later, in an anonymous article, the only one he ever wrote, and which contained the famous phrase, "the streak of silver sea," he "distributed blame with great impartiality between both belligerent powers."

Among the business transacted in the session of 1870 was the following: All appointments to situations in all Civil Departments of the State, except the Foreign Office and posts requiring professional knowledge, should be filled by open competition; and the royal prerogative that claimed the General Commanding-in-Chief as the agent of the Crown be abolished, and that distinguished personage was formally declared to be subordinate to the Minister of War. Mr. Gladstone announced the intention of the government to release the Fenian prisoners then undergoing sentences for treason or treason-felony, on condition of their not remaining in or returning to the United Kingdom. The Premier, alluding to the enormity of their offenses, said that the same principles of justice which dictated their sentences would amply sanction the prolongation of their imprisonment if the public security demanded it. The press and country generally approved this decision of the Premier, but some condemned him for the condition he imposed in the amnesty. The religious test imposed upon all students entering at the universities was abolished, and all students of all creeds could now enter the universities on an equal footing. Heretofore special privileges were accorded to members of the Established Episcopal Church, and all others were cut off from the full enjoyment of the universities.

A bill to establish secret voting was rejected by the Lords, but was passed the next session. The House of Lords, emboldened by their success in throwing out the voting bill, defeated a bill to abolish the purchase of commissions in the army, but Mr. Gladstone was not to be turned from his purpose, and startled the peers by a new departure—he dispensed with their consent, and accomplished his purpose without the decision of Parliament. Finding that purchase in the army existed only by royal sanction, he, with prompt decision, advised the Queen to issue a royal warrant declaring that on and after November 1, 1871, all regulations attending the purchase of commissions should be cancelled. The purchase of official positions in the army was thus abolished. It was regarded as a high-handed act on the part of the Prime Minister, and a stretch of executive authority, and was denounced by Lords and Commons, friends and foes. Tories and Peers especially were enraged, and regarded themselves as baffled.

The condition of affairs in Ireland was alarming. The spread of an agrarian conspiracy at Westmeath compelled the government to move for a committee to inquire into the unlawful combination and confederacy existing. "Mr. Disraeli was severely sarcastic at the expense of the government."

The grant proposed by the government to the Princess Louise on her marriage aroused the opposition of some members of the House, who claimed to represent the sentiments of a considerable number of people. It was proposed to grant £30,000 and an annuity of £6,000. The Premier stated that the Queen in marrying her daughter to one of her own subjects, had followed her womanly and motherly instincts. He dwelt upon the political importance of supporting the dignity of the crown in a suitable manner; upon the value of a stable dynasty; and the unwisdom of making minute pecuniary calculations upon such occasions. It was carried by a remarkable majority of 350 votes against 1.

In 1871 the treaty of Washington was concluded. But the Geneva awards for the damage done to American shipping by the "Alabama," did much to undermine Mr. Gladstone's popularity with the warlike portion of the British public and there were various indications that the Ministry were becoming unpopular. There were other causes tributary to this effect. His plans of retrenchment had deprived Greenwich of much of its trade, hence his seat was threatened. Mr. Gladstone resolved to face the difficulty boldly, and to meet the murmurers on their own ground, October 28, 1871, he addressed his Greenwich constituents. The air was heavy with murmurs and threats. Twenty thousand people were gathered at Blackheath. It was a cold afternoon when he appeared bare-headed, and defended the whole policy of the administration. "His speech was as long, as methodical, as argumentative, and in parts as eloquent, as if he had been speaking at his ease under the friendly and commodious shelter of the House of Commons." The growing unpopularity of the Government was evidenced in the first reception given to the Premier by his constituents. Groans and cheers were mingled, and his voice at first was drowned by the din. Finally he was heard, and won the day, the people enthusiastically applauding and waving a forest of hats. One cause of unpopularity was what is called "the Ewelme Scandal," and another the elevation of Sir Robert Collin to the Judicial Committee of the Privy Council.

Mr. Gladstone said: "I have a shrewd suspicion in my mind that a very large proportion of the people of England have a sneaking kindness for the hereditary principle. My observation has not been of a very brief period, and what I have observed is this, that wherever there is anything to be, done, or to be given, and there are two candidates for it who are exactly alike—alike in opinions, alike in character, alike in possessions, the one being a commoner and the other a lord—the Englishman is very apt indeed to prefer the lord." He detailed the great advantage which had accrued from the legislation of the past generation, including free-trade, the removal of twenty millions of taxation, a cheap press, and an education bill, Mr. Gladstone thus restored himself to the confidence of his constituents, but the ministry did not wholly regain the popularity they once enjoyed. The Gladstone period had passed its zenith and its decadence had already begun.

During the autumn Mr. Gladstone received the freedom of the city of Aberdeen, and made a speech, in which occurred a remarkable reference to "the newly-invented cry of Home Rule." He spoke of the political illusions to which Ireland was periodically subject, the extremes to which England had gone in satisfying her demands, and the removal of all her grievances, except that which related to higher education. He said that any inequalities resting between England and Ireland were in favor of Ireland, and as to Home Rule, if Ireland was entitled to it, Scotland was better entitled, and even more so Wales.

Ireland had proved the glory of Mr. Gladstone's administration. Its name had been associated with the most brilliant legislative triumphs of government. But Ireland was also destined to be the government's most serious stumbling-block, and fated to be the immediate measure of its overthrow. In the session of 1873 Mr. Gladstone endeavored to further his plans for Reform, and consequently vigorously attacked the third branch of the "upas tree," to which he had referred. He labored to put the universities on a proper basis, that they might be truly educational centres for the whole of Ireland, and not for a small section of its inhabitants alone. This step followed legitimately after the disestablishment of the Irish Church. He introduced to this end a large and comprehensive measure, but although it was favorably received at the outset, a hostile feeling soon began and manifested itself. Mr. Gladstone pleaded powerfully for the measure, and said: "To mete out justice to Ireland, according to the best view that with human infirmity we could form, has been the work—I will almost say the sacred work—of this Parliament. Having put our hands to the plough, let us not turn back. Let not what we think the fault or perverseness of those whom we are attempting to assist have the slightest effect in turning us, even by a hair's-breadth, from the path on which we have entered. As we begun so let us persevere, even to the end, and with firm and resolute hand let us efface from the law and practice of the country the last—for I believe it is the last—of the religious and social grievances of Ireland." Mr. Disraeli made fun of the bill, stalwart Liberals condemned it, and the Irish members voted against it, hence the bill was defeated by a small majority of three votes. Mr. Gladstone consequently resigned, but Mr. Disraeli positively declined to take office with a majority of the House of Commons against him, and refused to appeal to the country. Mr. Gladstone read an extract from a letter he had addressed to the Queen, in which he contended that Mr. Disraeli's refusal to accept office was contrary to all precedent. But under the extraordinary circumstances he and his colleagues consented to resume office, and they would endeavor to proceed, both with regard to legislation and administration upon the same principle as those which had heretofore regulated their conduct. Mr. Lowe, the Chancellor of the Exchequer, having resigned, Mr. Gladstone assumed the duties of the office himself, thus serving in the double offices of Premier and Chancellor. During the recess various speeches were made in defence of the Ministerial policy, but the government failed to recover its once overwhelming popularity.

On the 19th of July, 1873, Mr. Gladstone lost by sudden death one of his oldest and most highly esteemed friends—Samuel Wilberforce, Bishop of Winchester. He was riding to Holmbury with Earl Granville, when he was thrown from his horse and killed instantly.