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The Duke of Grafton became prime minister, under Pitt’s guidance; Conway and Lord Shelburne were secretaries of state, and Camden became Lord Chancellor,—all three of them warm friends of America,

and adopting the extreme American view of the constitutional questions lately at issue; and along with these was Charles Townshend, the evil spirit of the administration, as chancellor of the exchequer. From such a ministry, it might at first sight seem strange that a fresh quarrel with America should have proceeded. But Chatham’s illness soon overpowered him, so that he was kept at home suffering excruciating pain, and could neither guide nor even pay due attention to the proceedings of his colleagues. Of the rest of the ministry, only Conway and Townshend were in the House of Commons, where the real direction of affairs rested; and when Lord Chatham was out of the way, as the Duke of Grafton counted for nothing, the strongest man in the cabinet was unquestionably Townshend. Now when an act for raising an American revenue was proposed by Townshend, a prejudice against it was sure to be excited at once, simply because every American knew well what Townshend’s views were. It would have been difficult for such a man even to assume a conciliatory attitude without having his motives suspected; and if the question with Great Britain had been simply that of raising a revenue on statesmanlike principles, it would have been well to entrust the business to some one like Lord Shelburne, in whom the Americans ha confidence.

In 1767, Townshend ventured to do what in any English ministry of the present day would be impossible. In flat opposition to the policy of Chatham and the rest of his colleagues, trusting in the favour of the king and in his own ability to coax or browbeat the House of Commons, he brought in a series of new measures for taxing America. “I expect to be dismissed for my pains,” he said in the House, with flippant defiance; and indeed he came very near it. As soon as he heard what was going on, Chatham mustered up strength enough to go to London and insist upon Townshend’s dismissal. But Lord North was the only person that could be thought of to take Townshend’s place, and Lord North, who never liked to offend the king, declined the appointment. Before Chatham could devise a way out of his quandary, his malady again laid him prostrate, and Townshend was not only not turned out, but was left practically supreme in the cabinet. The new measures for taxing America were soon passed. In the debates on the Stamp Act, it had been argued that while Parliament had no right to impose a direct tax upon the Americans, it might still properly regulate American trade by port duties. The distinction had been insisted upon by Pitt, and had been virtually acknowledged by the Americans; who had from time to time submitted to acts of Parliament imposing duties upon merchandise imported into the colonies.