THE DEVELOPMENT OF A POLICY, MAY, 1861 In June, 1859, a short-lived Conservative Government under the leadership of Lord Derby had been replaced by a "coalition" Liberal Government, at the head of which stood Palmerston, but so constituted that almost equal influence was attributed to the Foreign Secretary, Lord John Russell.

Both men had previously held the Premiership, and, as they represented different wings of the Whig-Liberal party, it was prophesied by political wiseacres that personal friction would soon lead to a new disruption.

Nor were the possible elements of discord confined to these two.

Gladstone, formerly a Peelite Tory, and for a time uncertain whether to return to the Tory fold or to join the Liberals, had yielded to Palmerston's promise of a free hand in financial matters, and had joined the Ministry as Chancellor of the Exchequer.

Opposed to him in a certain sense, as the rival claimant for political leadership among the younger group, was Sir George Cornewall Lewis, Home Secretary until July, 1861, thereafter until his death in April, 1863, Secretary for War.