After these two demonstrations of their readiness to enforce moral rules where the circumstances required it, the Government showed that they were equally ready to observe moral rules even against their own material interest. The American Civil War had left them the onerous legacy of the _Alabama_ claims. The _Alabama_ was a privateer, which Palmerston and Russell, in spite of the protests of the American Ambassador, had allowed to sail from Birkenhead. In the service of the Confederate Government, she had inflicted great damage upon the shipping of the North, and after the conclusion of the war the American Government had claimed that the British Government should pay compensation for the consequences of their negligence. Their case was spoilt by the impudent inclusion of claims for remote injuries, including the whole cost of the war after the last defeat of the Confederate army in the field.[309] Palmerston and Lord John Russell had steadily refused to admit liability. Gladstone and Lord Granville had more wisdom and {264} more real courage. The whole case was submitted to a Court of Arbitration at Geneva composed of representatives of the two disputants, Italy, Switzerland, and Brazil. Great Britain was held to be responsible, and damages were awarded. The American claims for direct injury were nine and a half millions. The award was for three and a quarter. This was perhaps the greatest act of the Government. For the first time in history, a great State, instead of asserting its claims by force, had agreed to be bound by the decision of an impartial tribunal, and had paid damages for its wrong-doing as if it had been a private person in a court of law. The cause of international morality advances slowly, and reaction is frequent and universal. But the disposition to subdue egoism to the common interest and to subordinate national vanity to moral rules grows steadily on the whole. The first important step in advance was made by the Liberal Government which submitted to the arbitration at Geneva. * * * * * {265} CHAPTER IX GLADSTONE VERSUS DISRAELI