Educated at the High School of Dundee and Edinburgh University, he became a partner in his father's firm of Edward Baxter & Co. (afterwards W. E. Baxter & Co.). He was Liberal Member of Parliament for Montrose burghs from 1855-85, and served as Secretary to the Admiralty from 1868-71 and as Financial Secretary to the Treasury from 1871-3. He was appointed a Privy Counsellor in 1873. He published various works on foreign travel. He served as President of the first day of the 1883 Co-operative Congress.
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