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between His Majesty the King of Prussia, and His Majesty the Emperor of Austria, as well as between their heirs and descendants, their States and subjects.

"ART. II.

"That the 6th Article of the Preliminaries of Peace signed at Nikolsburg on the 26th of July of this year may be carried out; and inasmuch as His Majesty the Emperor of the French, by his authorized emissary to His Majesty the King of Prussia, officially declared at Nikolsburg on the 29th of the same month of July, qu'en ce qui concerne le Gouvernement de l'Empereur, la Venise est acquise à l'Italie pour lui être remise à la paix, His Majesty the Emperor of Austria on his part conforms to this declaration, and gives his consent to the union of the Lombardo-Venetian Kingdom with the Kingdom of Italy, without imposing any other condition than the liquidation of those debts which have been acknowledged charges on the territories now resigned, in conformity with the Treaty of Zurich.

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"ART. IV.

"His Majesty the Emperor of Austria recognizes the dissolution of the late German Bund, and gives his consent to a new formation of Germany, in which the Imperial State of Austria shall take no part. Moreover, His Majesty promises to recognize the closer Federal relations which His Majesty the King of Prussia is about to establish north of the line of the Main, and also agrees that the German States to the south of this line shall form an union, the national connexion of which with the Northern Confederacy is reserved for a more defined agreement between both parties, and which is to maintain an international independent existence.

"ART. V.

"His Majesty the Emperor of Austria transfers to His Majesty the King of Prussia all the rights he acquired under the Peace of Vienna on the 30th of October, 1864, to the Duchies of Holstein and Schleswig, with the understanding that the people of the northern district of Schleswig, if, by free vote, they express a wish to be united to Denmark, shall be ceded to Denmark accordingly.

"ART. VI.

"At the desire of His Majesty the Emperor of Austria, His Majesty the King of Prussia declares himself willing, on the approaching changes in Germany, to allow the territory of the Kingdom of Saxony to remain within its present limits, reserving to himself the right of settling in a separate Treaty of Peace with the King of Saxony the share to be contibuted by Saxony towards the expenses of the war, and the position henceforth to be held by the Kingdom of Saxony within the North German Confederation.

"On the other hand, His Majesty the Emperor of Austria pro

mises to recognize the changes about to be made in North Germany by His Majesty the King of Prussia, territorial changes included.

"ART. XI.

"In order to defray a portion of the expenses incurred by Prussia on account of the war, His Majesty the Emperor of Austria promises to pay to His Majesty the King of Prussia the sum of 40,000,000 Prussian dollars. From this sum, however, the amount of the costs of war which, by virtue of the 12th Article of the before-mentioned Treaty of Vienna of the 30th of October, 1864, His Majesty the Emperor claims from the Duchies of Schleswig and Holstein, and which are valued at 15,000,000 Prussian dollars, together with 5,000,000 Prussian dollars as an equivalent for the free maintenance of the Prussian army in the Austrian States which it occupied till the conclusion of the peace, is to be deducted, so that only 20,000,000 Prussian dollars remain to be paid.

"Of this sum half is to be paid on the exchange of the ratifications of this Treaty, the other half three weeks afterwards.

"ART. XIII.

"All treaties and agreements made by the high contracting parties before the war are hereby revived in full force, so far as they are not invalidated by the dissolution of the German Bund. More especially the general Convention between the States of the German Confederation on the 10th of February, 1831, together with more recent resolutions thereto appertaining, will remain in full force as between Prussia and Austria.

"The Imperial Austrian Government declares, however, that the Coinage Treaty of the 24th of February, 1857, is deprived of its chief value for Austria by the dissolution of the German Bund; and the Royal Prussian Government declares itself ready to join with Austria and the other interested parties in the negotiations that may arise on the abolition of this Treaty. The high contracting parties likewise agree that as soon as possible they will enter into negotiations for a revision of the Commercial Treaty of the 11th of April, 1865, with a view to a further alleviation of burdens on both sides. In the meanwhile, the said Treaty is restored to its full force, with this provision, that both the high contracting parties reserve to themselves the right to cancel it after six months' notice 3."

We have not thought it necessary to give a detail of the success

3 An exchange of prisoners between Austria and Prussia took place on the 27th of August, when the following astounding results appeared. On the Prussian side were released 523 Austrian officers and 35,036 rank and file, while about 13,000 Austrian prisoners were still left behind in the Prussian hospitals. On the other side, Austria gave up 7 Prussian officers and 450 non-commissioned officers and men; about 120, severely wounded, remained behind in Austrian hands. That is, 48,559 Austrian prisoners were given up, against 577 Prussians-or rather more than 83 to 1. The total loss of the Austrians, between killed, wounded, prisoners, and missing, was computed at about 90,000, and that of the Prussians at 21,989.

LIBRARY

ful operations of the Prussian arms in Bavaria, and against the Federal troops in the neighbourhood of the Rhine, but they may be shortly summarized as follows:

The Prussians first engaged and defeated two divisions of the Bavarian army near Fulda and Meiningen. They then entered the Bavarian territory, and some sharp fighting took place at Bruckenau and Kissingen, where they were again victorious. On the 14th of June they engaged and routed the troops of HesseDarmstadt, near Aschaffenburg. They then occupied Darmstadt and Frankfort, and commenced the siege of the strong Federal fortress of Mayence. After their defeat at Kissingen the Bavarians fell back in the direction of Augsburg, where the remnant of the Diet had taken refuge, while another body of their army occupied the country between Munich and Nuremburg. The Prussians lay between the Federal army, 60,000 strong, and the Bavarians, and prevented their attempted junction. Further operations were put a stop to by an armistice which was concluded between Prussia and Bavaria on the 2nd of August, and this was followed by a general cessation of hostilities which ended in the Treaty of Prague. Let us now see what was the territorial position of Prussia before the war, and what she gained by its successful issue.

Before the war the kingdom of Prussia consisted of nine provinces. 1. Eastern Prussia, with Königsberg as its capital. 2. Western Prussia; capital, Dantzig. 3. The Grand Duchy of Posen, or Polish Prussia; capital, Posen. 4. Silesia; capital, Breslau. 5. Brandenberg, in which is situated Berlin. 6. Pomerania; capital, Stettin. 7. Saxon Prussia, in which is situated the strong fortress of Magdeburg. 8. Westphalia. 9. Rhenish Prussia. After the war, in addition to these territories, she incorporated into her dominions, Hanover, Hesse-Cassel, Nassau, Hesse-Homburg, the Duchies of Schleswig, Holstein, and Lauenburg (these last, however, had been previously annexed), that part of Hesse-Darmstadt which lies to the north of the Maine, and the little principality of Hohenzollern-the cradle of the Prussian Royal House-situated on the borders of Lake Constance, between Wurtemberg and Switzerland.

CHAPTER IV.

PRUSSIA-AUSTRIA.

PRUSSIA. Opening of the new Session of the Prussian Chambers-The King's Speech -Election of a President of the Lower House-Address of the Upper HouseTreaties of peace between Prussia and Wurtemberg and Bavaria-Bill for incorporating the new territories with Prussia-Bill of Indemnity passed-Address of the Lower House-Reply of the King-Deputation from Hanover to the King, and his reply-Bill for the annexation to Prussia of the Duchies of Holstein and Schleswig -Triumphal entry of the Prussian army into Berlin-Bill for the election of the

new German Parliament-Treaty of confederation between Prussia and the minor German States north of the Maine-Bill for a loan-Speech of Count Bismark on the question of the union of the Duchies of Holstein and Schleswig with Prussia. AUSTRIA. Address of the Hungarian Diet-Resignation of Count Mensdorff, and appointment of Baron Beust as Foreign Minister-Imperial Rescript and Address of the Hungarian Diet.

The new Session of the Prussian Chambers was opened on the 5th of August, when the King in person delivered the following speech

:

"Illustrious, noble, and loyal Gentlemen of both Houses of the Diet,-Now that I see assembled around me the representatives of the country, my heart impels me to express first of all from this place my own and my people's thanks for God's gracious goodness, which has assisted Prussia, amid heavy but successful sacrifices, not only in averting from our frontiers the dangers of hostile attack, but in enabling the army of the country, by a rapid career of victory, to add fresh laurels to its inherited fame, and to smooth the course for the national development of Germany.

Accompanied by the visible blessing of God, the part of the nation capable of bearing arms enthusiastically obeyed the summons to the sacred struggle for the independence of the Fatherland. Our heroic army, supported by few but faithful allies, advanced from success to success, from victory to victory, in the East as in the West. Much precious blood has been shed; the country mourns the loss of many brave men, who died the death of the hero in the flush of triumph, until our standards waved along a line extending from the Carpathians to the Rhine. It will be for the Government and the representatives of the people, in united co-operation, to bring to maturity the fruit that must be gathered from this sanguinary seed, to prevent its having been scattered in vain.

"Loyal Gentlemen of both Houses of the Diet,-My Government is able to look with satisfaction upon the financial position of the State. Careful foresight and conscientious economy have placed it in a position to overcome the great financial difficulties which have resulted as a natural consequence from the circumstances of the present time. Although material outlay has been imposed upon the Treasury during recent years by the war with Denmark, it has been found possible to meet the expenses hitherto incurred in the present war from the State revenue and the existing balances, without imposing any other burden upon the country than that of furnishing the supplies in kind for war purposes it is bound to provide by law. I hope the more assuredly that the means required for the successful termination of the war and for the payment of the supplies in kind, while maintaining order and security in the finances, will be readily granted by you.

"An agreement with the representatives of the country as to the settlement of the Budget has not been able to be effected in the last few years. The State outlay incurred during this period is,

therefore, destitute of that legal basis which, as I again acknowledge, the Budget can alone receive through the law. Art. 99 of the Constitution ordains it annually to be agreed upon between my Government and the two Houses of the Diet. Although my Government has nevertheless carried on the Budget for several years without this legal basis, this has only been done after conscientious examination, and in the conviction, in accordance with duty, that the conduct of a settled administration, the fulfilment of legal obligations towards public creditors and officials, the maintenance of the army and of the State establishments, were questions vital to the existence of the State, and that the course adopted, therefore, became one of those inevitable necessities which, in the interest of the country, a Government cannot and must not hesitate to adopt.

"I trust that recent events will in so far contribute to effect the indispensable understanding, that an indemnity for having carried on the administration without a law regulating the Budget-application for which will be made to the representatives-will readily be granted to my Government, and the hitherto existing conflict be therewith finally, and the more securely, brought to a conclusion, as it may be expected that the political position of the Fatherland will admit an extension of the frontiers of the State, and the establishment of an united Federal army under the leadership of Prussia, the costs of which will be borne in equal proportions by all members of the Confederation. The Bills required in this respect for the convocation of a popular representation of the Federal State will be laid before the Diet without delay.

"Gentlemen,-You feel with me, the entire Fatherland feels, the high importance of the moment that brings me once more among you. May Providence bless Prussia as graciously in future as it has visibly blessed the immediate past. May God grant it!" It will be observed that in this speech not a word was said about France, and the important part taken by the French Emperor in bringing the war to a close by his mediation. Nor was Italy even mentioned. All that the King said was, that his army was supported "by few but faithful allies." These omissions naturally gave great offence both to Italy and France; and in France especially much irritation was felt in consequence.

At the opening of the Session, Herr Grabow, the former President of the Lower House, stated that, after mature and conscientious consideration of certain communications respecting his proposed election to the Presidency, made to him by some of his political friends, but the nature of which he could not make public, he had arrived at the firm conviction that the interests of the House and the country required him to decline the Presidency of the Chamber.

The House then proceeded to the election of a President, and the three candidates proposed were Herr von Forckenbeck, Count Arnim, and Count Schwerin. Herr von Forckenbeck obtained

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