reform as a plank in the party platform, and Mr. Balfour's appeal to the party on the same evening to unite on a practical fiscal policy failed to conciliate unionist free traders. Meanwhile on all political topics Campbell-Bannerman- was now sedulously defining his position and developing a programme, with a view to the increasing likelihood of the party's return to power. He criticised Arnold-Forster's army reforms (14 July 1904); he advocated the encouragement of small holdings, better security for the farmer, and the provision of cottages (26 Oct.); he urged the payment of members and of election expenses (17 Nov.), and in a speech at Dunfermline (8 Dec.) he discussed comprehensively education, licensing, housing, rating, and the poor law. On two questions he pronounced himself with growing precision and emphasis inside and outside the house, viz. the extravagance of the government and the need of retrenchment in public expenditure, and the curbing of the veto of the House of Lords. He still adhered to 'the policy of thorough and fundamental alteration in the whole system of Irish government' ; he was there treading on slippery ground, even on the eve of victory. Differences in the unionist cabinet over Irish administration had given new life to the home rule controversy (March 1905), and the uncompromising restatement by Campbell-Bannerman of his views seemed to threaten a renewal of the old liberal schism. On 23 Nov. 1905 he made at Stirling a plain declaration in favour of home rule. Two days later, on 25 Nov., Lord Rosebery, at Bodmin, said he would not fight under that banner. On 27 Nov. Sir Edward Grey, at Newcastle-under-Lyme, expressed the view that if a liberal majority were obtained at the next general election it would be obtained on other issues than home rule, and it would not be fair to use the votes to reverse the anti-home rule verdict of 1895. This view was assented to by two other prominent liberal leaders, by Mr. Asquith on 28 Nov. and on 30 Nov. by Mr. James Bryce. An accommodation was reached on these lines. For the sake of the unity of the party, Campbell-Bannerman tacitly accepted the understanding that the consideration of home rule was postponed for the present. The proper solution of the Irish question was, Campbell-Bannerman finally declared (12 Jan. 1906), to refer purely Irish affairs to an Irish parliament ; but he did not believe there would be any opportunity for such a scheme in the near future.
On Monday, 4 Dec. 1905, Mr. Balfour resigned, and on the following day Campbell-Bannerman was invited to form a government. Lord Kimberley had died in 1902, Harcourt on 1 Oct. 1904. Lord Spencer, Kimberley's successor as leader of the liberal party hi the House of Lords, had been generally designated as the next liberal prime minister, but he had fallen seriously ill on 13 Oct. 1905. Campbell- Bannerman's claim as leader of the party in the House of Commons was therefore unquestioned. He brought to the great office imperturbable good temper, a strong sense of humour, personal popularity, much administrative experience and earnest convictions of the advanced liberal stamp. Campbell-Bannerman formed a ministry which was representative of all sections of the party. Mr. Asquith became chancellor of the exchequer and Mr. John Burns was chosen to be president of the local government board, being the first labour member of parliament to receive cabinet rank. In accordance with the rule observed by the liberal government of 1892-5, but discarded by Lord Salisbury and his successor, Mr. Balfour, Campbell-Bannerman made acceptance of office by those invited to join the government conditional on the resignation of all public directorships held by them. Mr. Balfour had already arranged that any new prime minister should be accorded by royal warrant a high place of precedency in ceremonial functions. Hitherto the office had not been formally recognised in the official table of precedency. Accordingly Campbell-Bannerman was the first prime minister to receive this formal recognition, and he was admitted to the fourth place among the king's subjects, the archbishops of Canterbury and York and the lord chancellor alone preceding him.
The new government at once dissolved parliament, and the general election followed in January 1906. Campbell- Bannerman's seat was not contested, owing to his opponent's illness, and he was free to speak elsewhere during the campaign. The main issues which he placed before the electors were free trade and the stopping of Chinese labour, which he had already promised in a speech at the Albert Hall on 21 Dec. 1905. He also undertook to revise drastically the Education and Licensing Acts of the late government. The result of the general election was startling. The unionists suffered a net loss of 214 seats 213 to the liberal and
