On the 18th of April the Premier presented the Irish Land Purchase Bill, for the buying out of the Irish landlords, which was intended to come into operation on the same day as the Home Rule Bill. The object of this measure was to give to all Irish landowners the option of being bought out on the terms of the Act, and opening towards the exercise of that option where their rent was from agricultural land. The State authority was to be the purchaser, and the occupier was to be the proprietor. The nominal purchase price was fixed at twenty years' purchase of the net rental, ascertained by deducting law charges, bad debts, and cost of management from judicial rent. Where there was no judicial rental the Land Court could, if it chose, make use of Griffiths' valuation for coming to a fair decision. To meet the demand for the means of purchase thus established, Mr. Gladstone proposed to create £50,000,000 three per cents. The repayment of advances would be secured by a Receiver General, appointed by and acting upon British authority.

The Land Purchase Bill was also opposed. It was the final cause which led to the retirement from the government of Mr. Chamberlain, "the able and enterprising exponent of the new Radicalism." He was soon followed by Sir George Trevelyan, "who combined the most dignified traditions, social and literary, of the Whig party with a fervent and stable Liberalism which the vicissitudes of twenty years had constantly tried and never found wanting." Mr. Bright also arrayed himself in opposition to the government, and accused Mr. Gladstone of successfully concealing his thoughts upon the Irish question in November. Mr. Gladstone replied that the position of Ireland had changed since 1881.

The debate extended over many nights, and the opposition to the Irish bills of so many Liberal leaders in every constituency, soon led to disaffection among the people. What was lost in some districts, however, was to some extent made up, says an English writer, by "the support of that very broken reed, the Irish vote, which was destined to pierce the hand of so many a confiding candidate who leaned upon it." While this debate was in progress a bill directed against the carrying of arms in Ireland was introduced and pushed forward rapidly through both Houses, and became a law.

Mr. Gladstone explained the position of the Cabinet on the Home Rule and Land Bills at a meeting of Liberals held at the Foreign Office, May 27th. He stated that the Government at present only asked for an endorsement of the leading principles of the two measures; and in closing the debate afterwards on the second reading of the Home Rule Bill, in the House of Commons, he made an eloquent appeal for Ireland. But all parties were preparing for the conflict, and members of opposite parties were consolidating themselves for opposition. "The Whigs, under Lord Hartington, coalesced with the Radicals, under Mr. Chamberlain, and both together made a working alliance with the Tories. This alliance was admirably organized in London and in the constituencies."

It seems that the Premier was deceived by his official counsellors of the Liberal party as to the real condition of affairs respecting Home Rule and the prospects for the passage of his bills. He did not dream of defeat, but if by some mischance they would suffer defeat, then he could appeal to the country with the certainty of being sustained by the popular vote. This was what Mr. Gladstone hoped, and what he thought he had the assurance of. But hopes of success began to give way to fears of defeat as the time drew near to take the vote. However, some still hopeful prophesied a small majority against the bill—only ten votes at the most. The Cabinet desperately resolved not to resign if beaten by so small a majority, but would have some adherent move a vote of confidence. This they argued would be favored by some opposed to Home Rule, and the question be deferred to another session, leaving the Liberals still in office. But these hopes were doomed to be blasted. Early in the morning of June 8th the momentous division took place, and it was found that the Government, instead of getting a majority, was defeated by thirty votes. It was found that ninety-three Liberals had voted with the majority.

The Premier at once advised the Queen to dissolve Parliament, and though Her Majesty at first demurred at the trouble of another election within seven months of the last, and begged Mr. Gladstone to reconsider his counsel, yet he argued that a general election would cause less trouble than a year of embittered and fanatical agitation against Home Rule. Besides, as he said to a colleague, "If we did not dissolve we would be showing the white feather." Mr. Gladstone finally had his way, the Queen yielded and Parliament was dissolved June 26, 1886. June 14th Mr. Gladstone issued an address to the electors of Midlothian, and later paid a visit to Edinburgh and Glasgow, where he made powerful addresses. He then spoke at Manchester, and, passing on to Liverpool, he advocated the cause of Ireland, calling upon the people to "ring out the old, ring in the new," and to make Ireland not an enemy but a friend.

The result of this appeal to the country was the return of a decided majority of over a hundred against Home Rule, and thus, after a short term of five months in office, the third administration of Mr. Gladstone was brought to a close, and he became again the leader of the Opposition. The dissolution and appeal to the country was a practical blunder, but Mr. Gladstone's address to the people was skilfully worded. He freely admitted that the Irish bills were dead, and asked the constituencies simply to sanction a principle, and that, too, a very plain and reasonable one in itself. He invited the people to vote aye or no to this question: "Whether you will or will not have regard to the prayer of Ireland for the management by herself of the affairs specifically and exclusively her own?" The separation of the bare principle of self-government from the practical difficulties presented by the bills enabled many Liberals who were opposed to the measures to support Mr. Gladstone, but the majority of voters failed to make this distinction, and hence came defeat. The decision of the people was not regarded as final.

In 1887 the Jubilee of the Queen was celebrated. Fifty years before Queen Victoria had ascended the throne of England. Mr. and Mrs. Gladstone celebrated the Queen's Jubilee by giving a treat to all the inhabitants of the estates of Hawarden, who were of the Queen's age, which was sixty-eight and upwards. The treat took the shape of a dinner and tea, served in a large tent erected in front of the castle, and the guests numbered upwards of two hundred and fifty. The principal toast, proposed by Mr. Gladstone, was the Queen. He contrasted the jubilee then being celebrated all over the English-speaking world, with that of George the Third, which was "a jubilee of the great folks, a jubilee of corporations and of authorities, a jubilee of the upper classes." On the other hand, he continued, the Victorian Jubilee was one when "the population are better fed, better clothed, and better housed—and by a great deal—than they were fifty years ago, and the great mass of these happy and blessed changes is associated with the name and action of the Queen."