When the Franchise Bill went up to the Lords in the first week of July, it was rejected for a reasoned amendment which declined to alter the franchise except as part of a scheme dealing with redistribution of seats. 'On July 5th there was a Cabinet to consider what was called the crisis--our relations with the House of Lords over the franchise, and Spencer was present.... The question to be considered was that of dissolution or an autumn Session. Lord Granville, Hartington, and Lord Derby were for an immediate dissolution on the old franchise, which was at once negatived.' 'On June 21st there was mentioned the attitude of the House of Lords. Lord Granville said something in favour of life peerages. I asked Chamberlain whether he thought that it was seriously meant, and writing passed between us in which he replied: "Serious, I think"; to which I answered: "You won't have it, will you?" Answer: "No."' 'On July 7th Mr. Gladstone explained to me his plan for dealing with the House of Lords, which was not so objectionable to me as the schemes known as "Reform of the House of Lords." It was to imitate the French constitution, and in cases of difference to make the two Houses sit in Congress and vote together. From the practical point of view it would be as difficult to carry as the abolition of the House of Lords, and if carried would not be of much use to the Liberal party except on occasions when their majority was absolutely overwhelming. 'On July 8th offers of compromise came to us from the Lords, but they would not offer terms which we could accept. We decided to propose to them a solemn resolution by both Houses pledging us to redistribution. This they refused.' The extent of real agreement which existed between the two sides had not yet been divined; and it was Sir Charles who set on foot the work which finally averted conflict. 'Early in July I began to take time by the forelock by preparing, without instructions from the Cabinet, a Redistribution scheme; and the first memoranda drawn up by Sir John Lambert for my use were written in that month, although it was not till after Parliament had separated for the recess that we got seriously to work. In the evening of July 14th Mr. Gladstone broached to me his views on Redistribution, and we practically hatched the Bill.' Party feeling ran high, and the Queen intervened. 'On July 9th in the morning Sir Henry Ponsonby came up to see the Duke of Richmond and some of us, and tried to settle the deadlock, but failed.... The Cabinet decided that Chamberlain must not take the chair at a meeting at the Agricultural Hall to denounce the House of Lords.'