The reconstruction of the Ministry did not allay dissatisfac tion. Within the cabinet friction developed, and, outside, the press agitation grew in violence. There was a persistent leakage of cabinet secrets, certain newspapers betraying a knowledge of most confidential Government business with such regularity as to suggest inspiration. A phrase, "Wait and See," which Asquith had used in reply to a question in the House of Commons years before, became the daily gibe of the malcontent press, and Sir Edward Grey, then in the midst of the most delicate situation with the United States, was accused of "feeding Germany" be cause of his attitude on the subject of contraband from America. The war-weariness that had overtaken the country provided an atmosphere in which this propaganda of discontent flourished, and the prime minister was the easier target for attack because he neither "squared" the press nor hit back at his critics. The inevitable rupture came in the autumn of 1916, when the German raid into Rumania—now seen in its true proportions—served to drive home the attack, and when Asquith was severely stricken by the loss of his eldest son in the war.
It arose over a question of cabinet reorganization. For some time the formation of an inner cabinet had been under discussion. At the beginning of Dec. 1916 Lloyd George, who upon the death of Kitchener had become secretary for war and whose prestige with the press had long been in the ascendant, submitted a definite scheme for the formation of such a body. From this body the prime minister was to be excluded. His right to control policy was not challenged, but he would not direct the deliberations of the inner cabinet. The coup burst upon the country with the announcement of the popular newspapers that Lloyd George was "packing up" in sheer despair at the inefficient conduct of the war. His highly confidential challenge to the position of Asquith was under consideration when an article appeared in The Times (then owned by Northcliffe) giving full details of the supposed arrange ments and suggesting that Asquith had already agreed. Lloyd George denied any knowledge of this article ; but Asquith, after consulting with his friends, decided to reject the proposal. Upon this Lloyd George resigned, and his resignation being followed by that of other influential members of the cabinet—including some who hoped that their action would give the prime minister the op portunity of reforming his cabinet on a new basis—Asquith in formed the King that he could no longer be responsible for carry ing on the business of government; and within a few days the second Coalition Government was formed with Lloyd George as prime minister. (See ENGLISH HISTORY: 1901-28; WORLD WAR.)
Thus ended Asquith's long and memorable tenure of the premiership. For the remainder of the war he occupied a seat in the front Opposition bench, speaking rarely and only on occasions when the interest of the nation seemed to demand his intervention. At the election of 1918, when Lloyd George swept the country with an appeal for the maintenance of the Coalition, he did not escape the general wreck of the Liberal Party, losing the seat of East Fife, which he had held throughout his parliamentary career.
In 1920 he returned to the House of Commons as member for Paisley and resumed his position as head of the remnant of the succeeding parliaments. In 1924, after an election f ought on the issue of protection, he, as the head of a pivotal majority, was re sponsible for the accession to power of the first Labour Govern ment, and later in the year for the Government's overthrow on a question of alleged governmental interference with the prosecution of a communist. At the next election he was defeated and retired to the Lords as earl of Oxford and Asquith.
Other honours were conferred on him. He became a member of the judicial committee of the privy council, a knight of the garter and a fellow of the Royal Society. After he entered the House of Lords he rarely intervened in public discussion. But at the outbreak of the General Strike in 1926, he urged the para mount duty of concentrating on the struggle against the "coercion of a new dictatorship," though he blamed the Government for not taking steps during the preceding nine months to make con structive proposals for the coal industry. Some recrimination followed, and there was a split in the Liberal Party (q.v.). He still retained the leadership of the Liberal Party, to which Lloyd George had now returned. But on the outbreak of the General Strike in 1926 a sharp difference appeared in the attitude of Lord Oxford and Lloyd George towards the event, and the latter de clined to consult his colleagues. Lord Oxford thereupon formally intimated that he could have no political relations with him, and as the result of the consequent breach Oxford retired from any active part in the affairs of the party which he had led for 18 years. In his retirement he devoted himself to writing a book of reminiscences and reflections, under the title of Fifty Years of Parliament, and in the autumn of 1927 he also published a volume of his speeches. Thereafter his health gave way and he died on Feb. 15, 1928, being buried, according to his wish, in the churchyard of All Saints church, Sutton Courtney, Oxfordshire, where he had long had a country home.