The need of financial retrenchment led to his opposing the proposal that war veterans should receive a cash bonus.
A commission was appointed to consider the best modes of retrenchment, and the outlay on shows and games was cut down to the lowest possible point.
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."
The drastic measures taken by the government against the National Union of Taxpayers, and against the newspapers which assisted it in advocating resistance to taxation until sweeping and proper retrenchment had been effected in the national expenditure, checked this campaign in favor of reform and retrenchment for a while.