1884, but the terms of conversion, though fair and reasonable, failed to attract the banking interest sufficiently, and only a small amount of the new stock was created.
Another important question with which Childers had to deal was the bankuptcy of Egypt. After prolonged negotiations with the powers the London Convention was concluded in March 1885. That convention 'is the organic law of Egyptian finance to the present day' (Sir Alfred Milner) ; it formed the turning point in the fortunes of modern Egypt.
In the budget of 1885-6, introduced on 30 April, heavy new taxation was necessary to provide for a deficit of more than 3,000,000l., and a special vote of credit for 11,000,000l. to meet the preparations for war with Russia consequent upon the Pendjeh incident. Childers attempted to meet his difficulties by increasing the income-tax from 5d. to 8d., altering the death duties, increasing the taxes on spirits and beer, and suspending the sinking-fund ; his proposed division of the burden between direct and indirect taxation was approved in the cabinet by Gladstone, but opposed by Sir Charles Dilke and Mr. Chamberlain. The consideration of the budget was postponed until after Whitsuntide, and this delay, against which Childers protested, gave time for an agitation against it which proved fatal to the government. It was defeated on the inland revenue bill, 9 June 1885, authorising the new taxation on beer, and resigned immediately ; the defeat was, however, due more to unpopularity incurred on account of the government's proceedings in Egypt and the Soudan than to the financial proposals of the chancellor of the exchequer (Lord Selborne, Memorials Personal and Political, ii. 170).
Since 1880 Childers had been gradually inclining towards a policy in Ireland which should harmonise, as far as was safe and practicable, with the aspirations of Irish nationalists. In September 1885 he informed Gladstone that he intended in his election campaign to advocate a wide measure of self-government for Ireland. He failed to retain his seat at Pontefract, but in January 1886 was elected M.P. for South Edinburgh.
Meanwhile Gladstone had adopted his policy of home rule, with which Childers declared his concurrence. Accordingly in Gladstone's short administration of 1886 Childers held office as home secretary. He secured some modifications of detail in Gladstone's first home rule bill during its consideration by the cabinet, and spoke in favour of it on 21 May, but on 7 June the government was defeated.
At the general election of June 1886 he was returned for South Edinburgh, but towards the close of the year his health exhibited signs of failure, from which he sought relief by travels on the continent in 1887, and in India in 1889. At the general election of 1892 he announced his retirement from active politics. In 1894, however, he undertook the chairmanship of the Irish financial relations committee, and had prepared a draft report before his death.
Childers, who enjoyed the reputation of a businesslike administrator, died on 29 Jan. 1896, and was buried at Cantley, near Doncaster. By his first wife, who died in 1875, he had issue four sons and two daughters ; two of the sons predeceased him, Leonard in 1871 and Francis in 1886. He married, secondly, at the British Embassy in Paris on Easter Eve, 1879, Katharine, daughter of the Right Rev. A. T. Gilbert, bishop of Chichester, and widow of Colonel the Hon. Gilbert Elliot ; she died in May 1895.
Two portraits of Childers in oils, by his daughter. Miss Childers, are in the possession of his son. Colonel Spencer Childers, R.E. An engraved portrait of him is given in Sir John Briggs's 'Naval Administration;' portraits of Childers, of both his wives, and of other members of the family, are also reproduced in the ' Life ' by his son.
[Life and Correspondence of II. C. E. Childers, by his son, Lieutenant-colonel Spencer Childers, E.E., C.B., 2 vols. 1901 ; Hansard's Parliamentary Debates; Times, 30 Jan. 1896; Yorkshire Post, 30 Jan. 1896; Spectator, 1 Feb. 1896; Results of Admiralty Organisation as established by Sir J. Graham and Mr. Childers, 1874; Burke's Extinct Peerage, s.v. 'Eardley;' Gardiner's Reg. of Wadham.]
