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However, not all of the new legislation was popular with the voting public. Gladstone was defeated in the 1874 general election by his Conservative counterpart [[Benjamin Disraeli]], and soon after resigned as Liberal leader. However, Disraeli’s aggressive foreign policy (particularly in the Middle East) spurred Gladstone back into frontline politics as he launched an extensive campaign against the Conservative government, (known as the ‘Midlothian Campaign’) in 1879 and 1880.
 
However, not all of the new legislation was popular with the voting public. Gladstone was defeated in the 1874 general election by his Conservative counterpart [[Benjamin Disraeli]], and soon after resigned as Liberal leader. However, Disraeli’s aggressive foreign policy (particularly in the Middle East) spurred Gladstone back into frontline politics as he launched an extensive campaign against the Conservative government, (known as the ‘Midlothian Campaign’) in 1879 and 1880.
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==Later Years==
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===Prime Minister 1868-1874===
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As prime minister 1868 to 1874 he headed a Liberal Party that was a coalition of Peelites like himself, Whigs and radicals; Gladstone was now a spokesman for "peace, economy and reform." Besides important legislation regarding Ireland, he passed the [[Elementary Education Act of 1870]], which provided England with an adequate system of elementary schools for the first time and required attendance; the abolition of the purchase of commissions in the army, and of religious tests for admission to Oxford and Cambridge; the introduction of the secret ballot in elections; the legalization of trade unions; and the reorganization of the judiciary in the Judicature Act.
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Between 1870 and 1874 religious disputes played a major part in destroying the broad Liberal Party coalition. Disputes over education, Irish disestablishment, and the Irish universities showed the divergence between, on the one hand, Whigs, who wanted state control of education and the propagation of a nondenominational, morally uplifting Christianity, and on the other hand Gladstone and his supporters, who sought to guard religion's independence from a modernizing civil power. This division struck a lasting blow to prospects of agreement on future policy over education and Ireland.<ref> J. P. Parry, "Religion and the Collapse of Gladstone's First Government, 1870-1874." ''Historical Journal'' 1982 25(1): 71-101. Issn: 0018-246x Fulltext: [http://links.jstor.org/sici?sici=0018-246X%28198203%2925%3A1%3C71%3ARATCOG%3E2.0.CO%3B2-R  in Jstor] </ref>
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====Finances====
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In 1868 Gladstone appointed Robert Lowe (1811-92) Chancellor of the Exchequer, despite Lowe's nasty attacks on Gladstone's own chancellorships, because he thought Lowe could hold down public spending. Public spending rose, and Gladstone pronounced Lowe "wretchedly deficient," a view that posterity has not challenged. Lowe was, however, a better Gladstonian than Gladstone himself. Lowe also stood out for his systematic underestimation of the revenue, enabling him to resist the clamor for tax cuts and to reduce the national debt instead, and for his insistence that the tax system be fair to all classes, which was more intense and protracted than that of any other chancellor of the age. By his own criterion of fairness - that the balance between direct and indirect taxation remain unchanged - he succeeded. This balance had never been a good measure of class incidence and was by that time thoroughly archaic.<ref> John Maloney, "Gladstone's Gladstone? The Chancellorship of Robert Lowe, 1868-73." ''Historical Research'' 2006 79(205): 404-428. Issn: 0950-3471 Fulltext: [[Ebsco]]
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</ref>
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====Army reform====
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Gladstone paid little attention to military affairs but in 1870 pushed through Parliament major changes in Army organization.  Germany's stunning triumph over France proved that the Prussian system of professional soldiers with up-to-date weapons was far superior to the traditional system of gentlemen-soldiers that Britain used. Edward Cardwell (1813–1886) as Secretary of State for War (1868-1874) designed the reforms that Gladstone supported in the name of efficiency and democracy. In 1868 he abolished flogging, raising the private soldier status to more like an honorable career. In 1870 Cardwell abolished "bounty money" for recruits, discharged known bad characters from the ranks. He pulled 20,000 soldiers out of self-governing colonies, like Canada, which learned they had to help defend themselves. The most radical change, and one that required Gladstone's political muscle, was to abolish the system of officers obtaining commissions and promotions by purchase, rather than by merit. The system meant that the rich landholding families controlled all the middle and senior ranks in the army. Promotion depended on the family's wealth, not the officer's talents, and the middle class was shut out almost completely.  British
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officers were expected to be gentlemen and sportsmen; there was no problem if they were entirely wanting in military knowledge or leadership skills.  From the Tory perspective it was essential to keep the officer corps the domain of gentlemen, and not a trade
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for professional experts. They warned the latter might menace the oligarchy and threaten a military coup; they preferred an inefficient army to an authoritarian state. The rise of [[Bismark]]'s new Germany made this reactionary policy too dangerous for a great empire to risk.  The bill, which would have compensated current owners for their cash investments, passed Commons in 1871 but was blocked by the House of Lords. Gladstone then moved to drop the system without any reimbursements, forcing the Lords to backtrack and approve the original bill.  Liberals rallied to Gladstone's anti-elitism, pointing to the case of Lord Cardigan (1797–1868), who spent £40,000 for his commission and proved utterly incompetent in the Crimean war, where he ordered the disastrous "Charge of the Light Brigade" in 1854.  Cardwell was not powerful enough to install a general staff system; that had to await the 20th century. He did rearrange the war department. He made the office of Secretary of State for War superior to the Army's commander in Chief; the commander was His Royal Highness The Duke of Cambridge (1819-1904), the Queen's first cousin, and an opponent of the reforms. The surveyor-general of the ordnance, and the financial secretary became key department heads reporting to the Secretary. The militia was reformed as well and integrated into the Army.  The term of enlistment was reduced to 6 years, so there was more turnover and a larger pool of trained reservists.  The territorial system of recruiting for regiments was standardized and adjusted to the current population.  Cardwell reduced the Army budget yet increased its strength of the army in the UK by 25 battalions, 156 field guns, and abundant stores, while the reserves available for foreign service had been raised tenfold from 3,500 to 36,000 men.<ref> Ensor, ''England, 1870-1914'' pp. 7-17</ref> 
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==After 1880 ==
 
The [[British Liberal Party|Liberal Party]] won the 1880 general election and Gladstone resumed his position as Prime Minister. He set about disengaging Britain from a series of colonial wars and passed the 1884 Reform Act, which further extended the franchise. However, this government was to become known as the ‘Ministry of Troubles’, with problems both at home and abroad. He was forced to resign in 1885 after the death of [[General Gordon]] in Khartoum, for which Gladstone was held indirectly responsible.
 
The [[British Liberal Party|Liberal Party]] won the 1880 general election and Gladstone resumed his position as Prime Minister. He set about disengaging Britain from a series of colonial wars and passed the 1884 Reform Act, which further extended the franchise. However, this government was to become known as the ‘Ministry of Troubles’, with problems both at home and abroad. He was forced to resign in 1885 after the death of [[General Gordon]] in Khartoum, for which Gladstone was held indirectly responsible.
  
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