446 History of the Radical Party in Parliament. [1859- course, thrown out by the Lords, who, on the loth of June, refused the second reading by 128 to 31. Apart from these efforts of the Radicals and the defeat of the ministerial Reform Bill, the session which closed on the 28th of August, 1860, was made memorable by two transac- tions of an important character, one of which led to results the full effect of which is not yet realized. The first of these two events was a conflict between the two Houses on a question of taxation, when the Peers, encouraged by the divisions and consequent weakness of the Liberal party, ventured to alter the means of raising the revenue upon which the Commons had decided. Part of the financial scheme of the Chancellor of the Exchequer Mr. Gladstone had been the repeal of the paper duty, and the raising of money from other sources. The bill to abolish this tax was read a third time and passed by the Commons on the 8th of May, by a majority of nine. On the 2 1 st of the same month, when it came up for second read- ing in the House of Lords, it was rejected by 193 to 104. Much discussion took place on this subject, but after all ex- planations, and defence of the Peers on technical grounds, the broad fact remained that the spirit of the Constitution had been violated. It is the undoubted right of the Commons to decide from what sources the imperial revenue shall be raised, and what taxes shall be laid upon the country. By their vote on the Paper Duty Bill the Lords reversed this principle, and decided that a tax which the Commons had refused should still be levied upon the people. Ministers, uncertain of their position, took the insult quietly, although Mr, Gladstone made an indignant protest. They proposed and carried three declaratory resolutions, but they allowed the tax to be continued.*
- The position of Palmerston at this time towards the Radicals as understood
by the Tory leaders, is illustrated by a statement of Lord Malmesbury, who says, after the rejection of the Paper Duty Bill, " In this critical state of public affairs Lord Derby had desired me to go to Lady Palmerston and assure her of the support of our whole party against the Radicals, and to give a positive promise that we will not coalesce with them in or out of office." Memoirs of an Ex- Minister^ vol. ii. , p. 228.
