Under the ministry of
William Pitt the Elder, Townshend accepted the role of
Chancellor of the Exchequer in August 1766. A few weeks later his urgent appeals to the Prime Minister for increased power were favorably answered, and he was admitted to the inner circle of the cabinet. The new chancellor proposed the continuance of the land tax at four shillings in the pound, while he held out hopes that it might be reduced next year to three shillings, whereupon his predecessor,
William Dowdeswell, by the aid of the landed gentlemen, carried a motion that the reduction should take effect at once. Townshend pledged to find revenue in
America with which to meet the deficiency caused by the reduction. Early in 1767, shortly after
The Stamp Act was repealed owing to colonial protests and boycotts of British goods, Townshend proposed that the Parliament could procure revenue from the Americans without causing them offense via "external" import taxes instead of internal taxes. These were known as the
Townshend Acts. The Acts passed resolutions for taxing several exports to America, such as
glass,
paint,
paper and
tea. The Townshend Acts established a Board of Commissioners in Boston to enforce them, which was seen as a threat to the American colonial tradition of self-government. He estimated these export taxes would produce a sum of £40,000 for the British treasury. He had the support of his cousin
Thomas Townshend who was also a minister in the government. The Townshend Acts would be Townshend's last official act before his death. Soon after that he died somewhat suddenly of a fever on September 4, 1767. ==Private life==