'"
The ministry was supported by large majorities, and carried their
measures, but when the bill for the repeal of the duty on paper at home,
as well as coming into the country, came before the House of Lords, it
was rejected. Mr. Gladstone appeared to be confronted by the greatest
constitutional crisis of his life. He gave vent to his indignation, and
declared that the action of the Lords was a gigantic innovation, and
that the House of Commons had the undoubted right of selecting the
manner in which the people should be taxed. This speech was pronounced
by Lord John Russell "magnificently mad," and Lord Granville said that
"it was a toss-up whether Gladstone resigned or not, and that if he did
it would break up the Liberal party." Quiet was finally restored, and
the following year Mr. Gladstone adroitly brought the same feature
before the Lords in a way that compelled acceptance.
The budget of 1861 showed a surplus of L2,000,000 over the estimated
surplus, and proposed to remit the penny on the income tax, and to
repeal the paper duty. Instead of being divided into several bills as in
the previous year, the budget was presented as a whole--all included in
one. By this device the Lords were forced to acquiesce in the repeal of
the paper duty, or take the responsibility of rejecting the whole bill.
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