First Premiership (1868–1874)
In the next general election in 1868, the South Lancashire constituency had been broken-up by the Second Reform Act into two: South East Lancashire and South West Lancashire. Gladstone stood for South West Lancashire and for Greenwich, it being quite common then for candidates to stand in two constituencies simultaneously. He was defeated in Lancashire and won in Greenwich. He became Prime Minister for the first time and remained in the office until 1874. Evelyn Ashley famously described the scene in the grounds of Hawarden Castle on 1 December 1868, though getting the date wrong:
One afternoon of November, 1868, in the Park at Hawarden, I was standing by Mr. Gladstone holding his coat on my arm while he, in his shirt sleeves, was wielding an axe to cut down a tree. Up came a telegraph messenger. He took the telegram, opened it and read it, then handed it to me, speaking only two words, namely, ‘Very significant’, and at once resumed his work. The message merely stated that General Grey would arrive that evening from Windsor. This, of course, implied that a mandate was coming from the Queen charging Mr. Gladstone with the formation of his first Government. I said nothing, but waited while the well-directed blows resounded in regular cadence. After a few minutes the blows ceased and Mr. Gladstone, resting on the handle of his axe, looked up, and with deep earnestness in his voice, and great intensity in his face, exclaimed: ‘My mission is to pacify Ireland.’ He then resumed his task, and never said another word till the tree was down.
In the 1860s and 1870s, Gladstonian Liberalism was characterised by a number of policies intended to improve individual liberty and loosen political and economic restraints. First was the minimisation of public expenditure on the premise that the economy and society were best helped by allowing people to spend as they saw fit. Secondly, his foreign policy aimed at promoting peace to help reduce expenditures and taxation and enhance trade. Thirdly, laws that prevented people from acting freely to improve themselves were reformed. When an unemployed miner (Daniel Jones) wrote to him to complain of his unemployment and low wages, Gladstone gave what H. C. G. Matthew has called "the classic mid-Victorian reply" on 20 October 1869:
The only means which have been placed in my power of ‘raising the wages of colliers’ has been by endeavouring to beat down all those restrictions upon trade which tend to reduce the price to be obtained for the product of their labour, & to lower as much as may be the taxes on the commodities which they may require for use or for consumption. Beyond this I look to the forethought not yet so widely diffused in this country as in Scotland, & in some foreign lands; & I need not remind you that in order to facilitate its exercise the Government have been empowered by Legislation to become through the Dept. of the P.O. the receivers & guardians of savings.
Gladstone's first premiership instituted reforms in the British Army, Civil Service, and local government to cut restrictions on individual advancement. The Local Government Board Act 1871 put the supervision of the Poor Law under the Local Government Board (headed by G. J. Goschen) and Gladstone's "administration could claim spectacular success in enforcing a dramatic reduction in supposedly sentimental and unsystematic outdoor poor relief, and in making, in co-operation with the Charity Organization Society (1869), the most sustained attempt of the century to impose upon the working classes the Victorian values of providence, self-reliance, foresight, and self-discipline". Gladstone was associated with the Charity Organization Society's first annual report in 1870. At a speech at Blackheath on 28 October 1871, Gladstone warned his constituents against social reformers:
...they are not your friends, but they are your enemies in fact, though not in intention, who teach you to look to the Legislature for the radical removal of the evils that afflict human life...It is the individual mind and conscience, it is the individual character, on which mainly human happiness or misery depends. (Cheers.) The social problems that confront us are many and formidable. Let the Government labour to its utmost, let the Legislature labour days and nights in your service; but, after the very best has been attained and achieved, the question whether the English father is to be the father of a happy family and the centre of a united home is a question which must depend mainly upon himself. (Cheers.) And those who...promise to the dwellers in towns that every one of them shall have a house and garden in free air, with ample space; those who tell you that there shall be markets for selling at wholesale prices retail quantities—I won't say are imposters, because I have no doubt they are sincere; but I will say they are quacks (cheers); they are deluded and beguiled by a spurious philanthropy, and when they ought to give you substantial, even if they are humble and modest boons, they are endeavouring, perhaps without their own consciousness, to delude you with fanaticism, and offering to you a fruit which, when you attempt to taste it, will prove to be but ashes in your mouths. (Cheers.)
He instituted abolition of the sale of commissions in the army as well as court reorganisation. In foreign affairs his overriding aim was to promote peace and understanding, characterised by his settlement of the Alabama Claims in 1872 in favour of the Americans. He also instituted the Cardwell Reforms in 1869 that made peacetime flogging illegal and, in 1870, the Irish Land Act and the Forster's Education Act. In 1871, he instituted the Universities Tests Act. In 1872, he secured passage of the Ballot Act for secret voting ballots. In 1873, his leadership led to the passage of laws restructuring the High Courts. He also passed the 1872 licensing act.
Gladstone unexpectedly dissolved Parliament in January 1874 and called a general election. In his election address to his constituents on 23 January, Gladstone said:
Upon a review of the finance of the last five years, we are enabled to state that, notwithstanding the purchase of the telegraphs for a sum exceeding 9,000,000l., the aggregate amount of the national debt has been reduced by more than 20,000,000l.; that taxes have been lowered or abolished (over and above any amount imposed) to the extent of 12,500,000l.; that during the present year the Alabama Indemnity has been paid, and the charge of the Ashantee War will be met out of revenue; and that in estimating, as we can now venture to do, the income of the coming year (and, for the moment assuming the general scale of charge to continue as it was fixed during the last Session), we do not fear to anticipate as the probable balance a surplus exceeding rather than falling short of 5,000,000l...The first item...which I have to set down in the financial arrangements proper for the first year is relief, but relief coupled with reform, of local taxation...It has...been the happy fortune of Mr. Lowe to bring it down, first from 6d. to 4d., and then from 4d. to 3d., in the pound. The proceeds of the Income Tax for the present year are expected to be between 5,000,000l. and 6,000,000l., and at a sacrifice for the financial year of something less than 5,500,000l. the country may enjoy the advantage and relief of its total repeal. I do not hesitate to affirm that an effort should now be made to attain this advantage, nor to declare that, according to my judgment, it is in present circumstances practicable...we ought not to aid the rates, and remove the Income Tax, without giving to the general consumer, and giving him simultaneously, some marked relief in the class of articles of popular consumption...I for one could not belong to a Government which did not on every occasion seek to enlarge its resources by a wise economy.
Gladstone's proposals went some way to meet working-class demands, such as the realisation of the free breakfast table through repealing the duties on tea and sugar, and reform of local taxation which was increasing for the poorer ratepayers. According to the working-class financial reformer Thomas Briggs, writing in the trade unionist newspaper The Bee-Hive, the manifesto relied on "a much higher authority than Mr. Gladstone...viz., the late Richard Cobden".
The dissolution was reported in The Times on 24 January and on 30 January the names of the first fourteen MPs for uncontested seats were published; by 9 February a Conservative victory was apparent. In contrast to 1868 and 1880 when the Liberal campaign lasted several months, only three weeks separated the news of the dissolution and the election. The working-class newspapers were taken by surprise at the news and had little time to express an opinion on Gladstone's manifesto before the election was over. Unlike the efforts of the Conservatives, the organisation of the Liberal Party had declined since 1868 and they had also failed to retain Liberal voters on the electoral register. George Howell wrote to Gladstone on 12 February: "There is one lesson to be learned from this Election, that is Organization...We have lost not by a change of sentiment so much as by want of organised power". The Liberals received a majority of the vote in each of the constituent countries of the United Kingdom and 189,000 more votes nationally than the Conservatives. However they obtained a minority of seats in the House of Commons.
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