Resignation, Re-election and First Premiership
- See also: Parkes ministry (1872–1875)
In 1870 Henry Parkes was again in financial difficulties and was obliged to resign his seat. He had been in business as a merchant in a comparatively large way, and when declared insolvent he had liabilities of £32,000 and assets of £13,300. He was at once re-elected for Kiama, but an extremely hostile article in the Sydney Morning Herald led to his resigning again. The suggestion had been made that his presence in the assembly while in the insolvency court might influence the officials. It was not until December 1871 that a seat could be found for him and he was then elected at a by-election for Mudgee. The Martin-Robertson ministry had involved itself in a petty squabble with the colony of Victoria over a question of border duties, and Parkes effectively threw ridicule on the proceedings. When parliament met the government was defeated and a dissolution was granted. In the general election which followed Parkes was generally recognized as the leader of the people's party, and the ministry was defeated at the polls. When parliament assembled Parkes was elected leader of the opposition, representing East Sydney. The acting-governor had sent for William Forster before parliament met, but he was unable to form a ministry, and in May 1872 Parkes formed his first ministry which was to last for nearly three years.
Parkes had always been a free-trader and no doubt his convictions were strengthened when in England by contact with Cobden and other leading free traders. During his first administration he so reduced the duties in New South Wales that practically it became a free trade colony. Generally there was a forward policy. Railway and telegraph lines were much extended, and at the same time there was some reduction in taxation.
In 1873 the retirement of Sir Alfred Stephen, the Chief Justice, led to an incident which raised much feeling against Parkes. It seems clear that Parkes at first encouraged his Attorney-General, E. Butler, to believe that he would be appointed Chief Justice of New South Wales. Opposition developed in many quarters and Parkes gradually realised that Sir James Martin was generally considered to be the most suitable man available, and offered him the position. When the announcement of his appointment was made on 11 November 1873, Butler took the opportunity to make a statement, read publicly the correspondence between Parkes and himself, and resigned his seat in the cabinet. However much Parkes may have been to blame for his early encouragement of the aspirations of his colleague, there appears to be no truth in the suggestion then made that he had, by appointing Martin, found means of getting rid of a formidable political opponent.
The ministry went on its way though unable to pass bills to make the Upper House elective and to amend the electoral law. The council was jealous of its position and succeeded in maintaining it for the time being. Two or three unsuccessful attempts were made to oust the government without success, but in February 1875, Governor Robinson's decision to release of the bushranger Frank Gardiner led to the defeat of the ministry. Subsequent discussions between Robinson, Parkes and the Colonial Office clarified the governor's responsibilities in pardoning prisoners.
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