Princess of Denmark drove to the Elysée, where they joined Madame MacMahon, who took them to her tribune in the Palais d'Industrie. One account says that, "At five minutes to one by the great clock in the nave, which, it was mirthfully observed, kept London time out of compliment to the Prince of Wales, the cannon of the Invalides boomed out that the Marshal had arrived, and the vocalists sang 66 Laudate Dominum." Preceded by the officers of his house, the Prefects of the Seine, and police, the Marshal entered. On his right was Don Francisco, who, his stature being small, was scarcely visible as he advanced, and the Prince of Wales was on his left. Then came abreast the Crown Prince of Sweden, a very tall youth of ruddy countenance, in a white uniform; the Crown Prince of Denmark, and behind them the Comte de Flandres and the Duke of Aosta." Everything went off very well. The Marshal, in his speech, said: "When the Government of the Republic invited men of science, artists, and workers from all nations to meet in one capital, France had but recently passed through grievous trials, and her industry had not escaped unaffected by the vast commercial crisis which made itself felt throughout the world. Nevertheless French exports in 1878 equal, if they do not exceed, in amount those of previous years. Let us thank God, who, to console our country, has vouchsafed that this great pacific glory should be reserved for it. We record these fortunate results with so much the more satisfaction because, in our opinion, the success of the International Exhibition must redound to the honour of France. It was not only a question of encouraging the arts and displaying the improvements effected in all the means of production; we had, above all, at heart to show what seven years passed in self-concentration, and devoted to labour, could effect in retrieving the past terrible disasters. It has been seen that the solidity of our credit and the abundance of our resources, the peace of our cities and populations, the training and admirable bearing of our army, now reconstructed, testified to an organisation which I am convinced will be durable and fruitful in good results. Our national ambition will not stop there. If we have become more prudent and laborious, we shall still owe it to the recollection of our misfortunes to maintain and develop among us a spirit of concord, absolute respect for our laws and institutions, and an ardent and disinterested love of our country."

The Minister of Commerce, after acknowledging the Marshal's speech, proceeded to read the list of awards, and to distribute the principal prizes and decorations. At the close of the ceremony, Marshal MacMahon left the dais, followed by the foreign Princes, the Ministers, the Presidents of the Senate and Chamber of Deputies, and a number of high civil and military functionaries. The cortége passed from the dais in front of the exhibitors and the public admitted to the ceremony, and attended the Marshal to his carriage, the same ceremony being observed on his arrival.

[1878. An address, bearing upwards of a thousand signatures, was presented on Oct. 22 by Lord Granville to the Prince of Wales, at the British Embassy in Paris, thanking His Royal Highness for his labours in connection with the Exhibition, and also referring to the able manner in which Mr. Cunliffe Owen had discharged his duties as secretary to the British Commission. The Prince, in reply, said he was very sensible of the compliment paid him, spoke of the cordial good feeling which existed between England and France, and said that he thoroughly concurred in the remarks which had been made respecting Mr. Owen. The deputation, which included a large number of British jurors and exhibitors, was afterwards entertained at luncheon by Lord Lyons. In the evening there was a grand fête in the park at Versailles, and later in the evening a ball was given in the rooms of the Palace.

The French Chambers met again on Oct. 28 after five months' recess, by which date it was known, though the results were not then ascertained, that the election of Senatorial Delegates had secured a large Republican majority. A discussion of M. Paul de Cassagnac's election occupied an early sitting, when he took occasion to say that there could be nothing in common between the Bonapartists and Marshal MacMahon since he perjured himself. The election was nullified; and the Legitimists, Orleanists, and Bonapartists issued a joint manifesto to the Delegates to warn them that the object of the Republicans was to destroy the Senate. The Legislature proceeded in the same determined course, in dealing with the electoral abuses of the "Cabinet of May 16." The Special Committee of investigation reported adversely upon the return of M. de Bourgoing, one of the intimes of the late Imperial Court; M. de Fourtou, the Home Secretary of the late Government, who had initiated all these practices, and the Comte de Mun, an ex-officer of Hussars, to whom the late Comte de Chambord sent a letter of encouragement and thanks. Each of these tried to argue his own cause in the Tribune, and M. de Fourtou more especially endeavoured to turn the tables on the present Government by showing that the promised improvements in the condition of trade and industry had not yet made their appearance. This brought M. Dufaure, the octogenarian premier, into the action, and he, in a very effective speech, refuted all the sophisms by which M. de Fourtou had tried to justify his own course. All these returns were quashed, but the unseated candidates, one and all, expressed themselves confident of being re-elected. It was clear, from the evidence before the Committee, that M. de Fourtou had won the seat for Ribérac by corruption and intimidation, and he scarcely, indeed, defended his conduct. He preferred to defend the Government of May 16th, in a speech, in which he declared that he had been too scrupulous in his pressure on electors, and that if" he had done his whole duty, you, the Left, would not have been sitting there." He then proceeded to attack those "who declared war against all Frenchmen who were not animated by

the old Republican faith." This called up M. Gambetta. "That is a lie, Monsieur." When called to order, he said, "On account of the regulations, I withdraw the expression," which, being understood to mean more emphatically even than before that M. Gambatta distinctly held that M. de Fourtou had told a lie, though, out of respect for "the regulations," the expression was withdrawn, a duel with pistols followed at Plessis Piquet, near Paris. M. de Fourtou chose the pistol; and after each had fired a shot at thirty-five paces, the combatants retired unhurt.

In the Senate, on December 14, M. Waddington, in reply to a question by M. Gontaut-Biron, made a statement of some length respecting the foreign policy of France.

That policy, he said, had not varied since the close of the Congress. It was embodied in the instructions given to the French Plenipotentiaries at Berlin. They were to defend the interests of France, to maintain peace, to do nothing to compromise French neutrality, and to avoid all engagements concerning the future. These conditions had been scrupulously respected, and France left the Congress as free as she entered it. She had constantly supported the execution of the Berlin Treaty. No doubt there were difficulties, but with the accord of the Powers they must soon be settled. With regard to Greece, M. Waddington said, in the action which France had initiated to secure for that country a sufficient frontier she would not be isolated, but would act in concert with all the Powers. France still hoped to secure for her "the shores of Volo and Arta, half of Thessaly, and a portion of Thrace." M. Waddington so far supported Lord Beaconsfield, that he declared his belief that all parties to the Treaty of Berlin intended to execute it, so far as their power went; but he admitted that in relation to the boundaries of East Roumelia, the definition of limits is "less advanced, and cannot be carried on at all points in the winter, but we hope it will be terminated next spring. Great difficulties still exist, resulting from the distress of the country, after the chronic antagonism of the Mussulmans and Christians; but negotiations are being held on that point, and I hope that, thanks to the good-will of the Powers, they will be successful."

A last collision between the two chambers, at the close of the year, on the Budget, was averted by the unconditional surrender of the Senate on the question of the item on which they had disagreed; and M. Gambetta was able to declare, at a banquet given him by the commercial travellers of France, that the era of fear was over, and that the Republican majority in the Senate would be much greater even than was expected. He disclaimed in a very marked way any ambition of quitting his post as Deputy, a statement intended to reassure both M. Dufaure and the Marshal, and renounced on behalf of France any idea of propagandism. Other countries must choose the governments which suited them, the business of Frenchmen was to make a government for themselves. "We have a constitution of our own, manners of our own, property

based on immutable foundations, which the world may envy us." "Let us make a model government, a government really for the French, and for them alone." "These sentences were intended, no doubt," said the Spectator of this speech, "to reassure Madrid and Rome, where some dread exists of French Republican Ambassadors, but they probably also express the conviction of M. Gambetta that the error of the first Republic was its propagandist spirit. Nevertheless, a solid Republic in Europe of the first class, peacefully reorganising its strength, cannot be without an appreciable propagandist effect. It is stated that the commis-voyageurs throughout France are Liberals, and have repeatedly been of the greatest service to the Republic."

So the year closed in France in peace and promise; and though the Republic did not escape the prevailing commercial depression, she escaped it better than others. There was so much said in many quarters in favour of the policy of Protection, and of the evils of Free-trade, that it is worth noting that at the end of the year a grand Free-trade demonstration was held in Paris, when telling speeches were delivered by M. Frédéric Passy and M. Raoul Duval. The former directed his speech to refute the assertion that what might be good for one nation in this matter was very bad for another. If that were to be applied to Free-trade, he said, it might as well be applied to chemistry. It was just as true that chemistry, though very good in England, was not applicable to France, as that Free-trade, though very good in England, was not applicable to France. M. Raoul Duval appealed to experience. In 1860 it was said that France would be ruined by the competition with England, but in fact, France had sent to England, as the result of the Commercial Treaty of that year, twice as much as England had sent to France. Supposing England were to close her markets against France, by way of reprisals for French Protection, the calamity to France would be frightful.

CHAPTER II.

GERMANY AND AUSTRIA-HUNGARY.

Germany.-Roman Catholic Petition-Opening of the German Parliament-Royal Marriages-Prince Bismarck on the Eastern Question-The Budget-Resignation of the Finance Minister-Railway Scheme-Resignation of the Commerce Minister-Attempt on the Emperor's Life-Betrothals-Anti-Socialist Bill— Closing of the Reichstag -Resignation of the Minister of Public Worship--Enquiry into the Tobacco Tax-Second Attack on the Emperor-Dissolution of Parliament-Measure of Repression in Berlin-The Pope and the Crown Prince-The Elections-New Anti-Socialist Bill-Dr. Virchow on the Chancellor-Debates on the Socialist Bill-Imperial Visit to Cologne-Opening of the Prussian Diet-Prussian Budget-The New Law in Berlin-Negotiations with Rome--Prince Bismarck on Protection. Austria-Hungary.-The Eastern Question-Revenue Returns-The ParliamentsGrant of Six Millions-Parliamentary Discussion-Death of Archduke Charles —The Budget-Herr Tisza and Count Andrassy on the Eastern QuestionHungarian Quota-Collection of Troops-Closing of the Hungarian DietResignation of Austrian Ministers tendered-The Occupation of Bosnia and Herzegovina-Mobilisation-Proclamation to the Inhabitants-War in the Provinces-Hadji Lodja-Hungarian Elections-Austrian advance-Engagements and Victories-Operations on the Save-Collapse of the resistance-Ministerial Crisis-Turkish Circular and Austrian Reply-Opening of the Parliaments Amnesty to the Insurgents-Debates on the Address--Outrages in Pesth-Occupation Expenses-Commercial Treaty with Germany.

GERMANY.

JUST before the opening of the German Parliament, a monster petition from the Roman Catholics in Silesia was presented to the Emperor. It was headed by Count Ballestrem and eighteen Silesian deputies, and contained 158,000 signatures; the whole was bound into seven volumes. The burden of the petition was abrogation of the May laws and restoration of the status quo ante. The Emperor handed over the volumes to Dr. Falk, who replied that the evils complained of in the petition were the result, not of the laws themselves, but of unjustifiable opposition to the laws, and the Minister was authorised to mention that the Emperor, in sending him the petition, observed that the memorialists would have done better to address the ecclesiastical authorities who had caused the present distress, rather than him. This unusual intimation was intended as an answer to Dr. Windthorst and others, who alleged that the Emperor was not in accord with the policy of his Ministers in ecclesiastical matters.

The German Parliament was opened on February 6, by a Message from the Throne, most of which was devoted to internal subjects, such as the introduction of a stamp-tax and an increase of the tobacco-duty, the preparation of a Bill permitting the Imperial Chancellor to depute his functions, the failure of the negotiations with Austria-Hungary for a renewal of the existing