Lord Salisbury’s reply indicated clearly the side to which his sympathies inclined:—
Hatfield: December 15, 1886.
My dear Randolph,—I will be in Downing Street at half-past three. I have got to go to Windsor at a quarter to five. There was nothing for it but to consent to the Egyptian expenditure, though it is very lamentable—all Gladstone’s fault. The Cabinet, happily, not I, will have to decide the controversy between you and Smith. But it will be a serious responsibility to refuse the demands of a War Minister so little imaginative as Smith, especially at such a time. It is curious that two days ago I was listening here to the most indignant denunciations of Smith for his economy—from Wolseley. I am rather surprised at George Hamilton being able to reduce so much. I hope it is all right.
Ever yours very truly,
Salisbury.
The Chancellor of the Exchequer, however, showed no signs of yielding and his colleagues, feeling that the crash was coming, evidently took counsel with one another and broadened the ground upon which they stood and might have to fight. The Budget had meanwhile been passed through the Cabinet. But now doubt and hesitation seemed to have overtaken those Ministers who were concerned in the Estimates dispute. On the 18th Lord George Hamilton wrote that he thought the Budget ‘exceedingly well balanced and comprehensive,’ but on that very account the more likely to be attacked by the various interests concerned, and he asked for certain returns as to the incidence of taxation. It is significant that Mr. Smith wrote a similar letter on the same day, and Lord Salisbury on the day following:—
Mr. Smith to Lord Randolph Churchill.
War Office: December 18, 1886.
My dear R. C.,—I think you should send us a printed memorandum of your Budget proposals, in order that they may be considered carefully during our short holiday.
They are too large and important to be determined upon after a conversation across the table. It would not be fair to you nor to your colleagues, some of whom may not have fully realised all your proposals.
Yours very sincerely,
W. H. Smith.