It has been very satisfactory to me to receive the assurances that throughout the late financial deadlock, no public money has been expended except in due form of law, and in strict accordance with parliamentary usage.  Those public works which had been legally provided for by Railway and Loan Acts, or otherwise, have been carried on without interruption; while by dint of strict economy and of the large retrenchments in the civil service effected by the Ministry, the administration of justice and of the several departments of the Government has proceeded regularly and without intermission.

In a speech delivered in last October before the actual beginning of the recent crisis, but in anticipation of its near approach, I recommended the members of both Houses of Parliament and of both political parties to lay to heart the subjoined passage in one of Mr. J.S.  Mill’s works: 

“One of the most indispensable requisites in the practical conduct of politics, especially in the management of free institutions, is conciliation, a readiness to compromise, a willingness to concede something to opponents, and to shape good measures so as to be as little offensive as possible to persons of opposite views, and of this salutary habit the mutual ‘give and take’ (as it has been called) between two Houses is a perpetual school; useful as such even now, and its utility would probably be more felt in a more democratic constitution of the Legislature.”  Nor have I ever ceased to urge the adoption of such principles as those laid down by Mr. Merivale when he wrote “Moderation in success, self-denial in the exercise of power, habitual consideration for the opinions and feelings of others, readiness to compromise differences, love of justice and fair play, reluctance to push principles to extremes, the moral courage which will dare to stand up against a majority, the habit of constantly, and, as it were instinctively postponing self to the public interest, and this whether arising from moral choice or from the constraint imposed by public opinion; these are the balancing qualities which prevent the misuse of political freedom.”

With regard to the opinions which I have formed concerning the proper position and mutual relations of the two Houses of the Victorian Parliament, it will be remembered that my opinions are identical with those placed on record on that subject by the late Lord Canterbury, my able and experienced predecessor in my present office.  It will also be recollected that I have steadily followed, during the crisis of 1877-8, the precedents made, and the constitutional course pursued by Lord Canterbury during the previous crisis of 1867-8.  In acknowledging Lord Canterbury’s despatch of 18th July, 1868, reporting the termination of the crisis of 1867-8, the then Secretary of State for the Colonies (the Duke of Buckingham) wrote as follows: 

“I have to express my approval of your firm adherence to your constitutional position through these trying discussions; and I learn with satisfaction the cessation of a state of affairs which has been productive of so much inconvenience in the Colony.”