William Oddie, writing in the Catholic Herald has a few interesting points to make with reference to the old false-hood that John Henry Cardinal Newman was a liberal "Catholic".
Newman made absolutely unambiguous his belief that in modern conditions a specifically Catholic University ought to exclude heresy, so that its enemies were beyond its boundaries and not within them. It is, he wrote in The Idea of a University “one great advantage of an age in which unbelief speaks out, that Faith can speak out too; that, if falsehood assails Truth, Truth can assail falsehood. In such an age it is possible to found a University more emphatically Catholic than could be set up in the middle age, because Truth can entrench itself carefully, and define its own profession severely, and display its colours unequivocally, by occasion of that very unbelief which so shamelessly vaunts itself. And a kindred advantage to this is the confidence which, in such an age, we can place in all who are around us, so that we need look for no foes but those who are in the enemy’s camp.”
Further Suggested Reading: Newman against the Liberals (ed. Michael Davies)