[3] He had Tory sympathies when he took his seat in the House of Lords, but his views changed, and he began to take an active part in politics as a Whig.
Townshend quickly won the favour of George I, and in September 1714, the new king selected him as Secretary of State for the Northern Department.
Townshend was opposed to British involvement in the Great Northern War, and he promoted the conclusion of defensive alliances between Britain, Austria and France.
In spite of these successes, the influence of the Whigs was gradually undermined by the intrigues of Charles Spencer, 3rd Earl of Sunderland, and by the discontent of the Hanoverian favourites.
In October 1716, Townshend's colleague, James Stanhope afterwards 1st Earl Stanhope, accompanied the king on his visit to Hanover, and while there he was seduced from his allegiance to his fellow ministers by Sunderland, George being led to believe that Townshend and his brother-in-law, Sir Robert Walpole, were caballing with the Prince of Wales, their intention being that the prince should supplant his father on the throne.
Early in 1720 a partial reconciliation took place between the parties of Stanhope and Townshend, and in June of this year the latter became Lord President of the Council, a post which he held until February 1721, when, after the death of Stanhope and the forced retirement of Sunderland, a result of the South Sea Bubble, he was again appointed Secretary of State for the northern department, with Walpole as First Lord of the Treasury and Chancellor of the Exchequer.
The two remained in power during the remainder of the reign of George I the chief domestic events of the time being the impeachment of Bishop Atterbury, the pardon and partial restoration of Lord Bolingbroke, and the troubles in Ireland caused by the patent permitting Wood to coin halfpence.
During the War of the Spanish Succession, the Tory Harley ministry had concluded a separate peace treaty with France without consulting their Dutch allies, causing considerable anger.
[6] Townshend secured the dismissal of his rival, Lord Carteret, afterwards Earl Granville, but soon differences arose between himself and Walpole, and he had some difficulty in steering a course through the troubled sea of European politics.
Failing, owing to Walpole's interference, in his efforts to procure the dismissal of a colleague and his replacement by a personal friend, Townshend retired on 15 May 1730.