*111. The Lords and Money Bills.*--In November, 1909, the issue was reopened in an unexpected manner by the Lords' rejection of the Government's Finance Bill, in which were included far-reaching proposals of the Chancellor of the Exchequer, Mr. Lloyd-George, respecting the readjustment of national taxation. This act of the upper chamber, while not contrary to positive law, contravened in so serious a manner long established custom that it was declared by those who opposed it to be in effect revolutionary. Certainly the result was to precipitate an alteration of first-rate importance in the constitution of the kingdom. The priority of the Commons within the domain of finance was established at an early period of parliamentary history; and priority, in time, was converted into thoroughgoing dominance. As early as 1407 Henry IV. recognized the principle that money grants should be initiated in the Commons, assented to by the Lords, and subsequently reported to the crown. This procedure was not always observed, but after the resumption by the two houses of their normal functions following the Restoration in 1660 the right of the commoners to take precedence in fiscal business was forcefully and continuously asserted. In 1671 the Commons resolved "that in all aids given to the king by the Commons, the rate or tax ought not to be altered by the Lords," and a resolution of 1678 reaffirmed that all bills granting supplies "ought to begin with the Commons." At no time did the Lords admit formally the validity of these principles; but, by refusing to consider fiscal measures originated in the upper chamber and to accept financial amendments there proposed, the Commons successfully enforced observance of them.