Gladstone at once turned his steps towards South Lancashire, where he was returned with two Tories above him. The result of the general election was to retain Lord Palmerston's government in power, but on the 18th of October the old prime minister died. He was succeeded by Lord Russell, and Gladstone, retaining the chancellorship of the exchequer, became for the first time leader of the House of Commons. Lord Russell, backed by Gladstone, persuaded his colleagues to consent to a moderate Reform Bill, and the task of piloting this measure through the House of Commons fell to Gladstone. The speech in which he wound up the debate on the second reading was one of the finest, if not indeed the very finest, which he ever delivered. But it was of no practical avail. The government were defeated on an amendment in committee, and thereupon resigned. Lord Derby became prime minister, with Disraeli as chancellor of the exchequer and leader of the House of Commons. On the 18th of March 1867 the Tory Reform Bill, which ended in establishing Household Suffrage in the boroughs, was introduced, and was read a second time without a division. After undergoing extensive alterations in committee at the hands of the Liberals and Radicals, the bill became law in August.
At Christmas 1867 Lord Russell announced his final retirement from active politics, and Gladstone was recognized by acclamation as leader of the Liberal party. Nominally he was in Opposition; but his party formed the majority of the House of Commons, and could beat the government whenever they chose to mass their forces. Gladstone seized the opportunity to give effect to convictions which had long been forming in his mind. Early in the session he brought in a bill abolishing compulsory church-rates, and this passed into law. On the 16th of March, in a debate raised by an Irish member, he declared that in his judgment the Irish Church, as a State Church, must cease to exist. Immediately afterwards he embodied this opinion in a series of resolutions concerning the Irish Church Establishment, and carried them against the government. Encouraged by this triumph, he brought in a Bill to prevent any fresh appointments in the Irish Church, and this also passed the Commons, though it was defeated in the Lords. Parliament was dissolved on the 11th of November. A single issue was placed before the country--Was the Irish Church to be, or not to be, disestablished? The response was an overwhelming affirmative. Gladstone, who had been doubly nominated, was defeated in Lancashire, but was returned for Greenwich. He chose this moment for publishing a _Chapter of Autobiography_, in which he explained and justified his change of opinion with regard to the Irish Church.