The need of financial retrenchment led to his opposing the proposal that war veterans should receive a cash bonus.
On the 6th of December a Conservative cabinet was formed under Seor Silvela, Seor Villaverde, pledged to a policy of retrenchment, taking the portfolio of finance.
The subscription controversy was then agitating the university, and Paley published an anonymous Defence of a pamphlet in which Bishop Law had advocated the retrenchment and simplification of the Thirty-nine Articles; he did not, however, sign the petition (called the "Feathers" petition from being drawn up at a meeting at the Feathers tavern) for a relaxation of the terms of subscription.
This revelation led to an all-round retrenchment, carried into effect with a drastic thoroughness which has earned for this parliament the name of the " Reduktion Riksdag."
Also lost, perhaps just short term, are Swiss routes to Basel and Geneva, part of that airline's massive retrenchment.