Meantime, after receiving the above-mentioned instructions of the President, I have, after consultation with the imperial royal minister of foreign affairs, taken the liberty of so far departing from them, in consequence of the change. in circumstances from those which existed when my first despatch was written, as to omit asking for the audience suggested; but to express the sentiments of the President and of the people of the United States in a note to the minister. I send herewith a copy of that note, and trust that it may meet the approval of the President. Such answer as may be received by me will, of course, be at once forwarded to you. I have the honor to remain, sir, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. Mr. Motley to Baron de Beust. The undersigned, envoy extraordinary and minister plenipotentiary of the United States of America, has the honor to state that he has just received a despatch from the Secretary of State of the United States, conveying the instructions of the President that the undersigned should ask for an audience of his Majesty the Emperor, in order to congratulate him in the name of the United States upon his providential escape from the assassination attempted at Prague. The instructions of the President were given immediately upon the receipt of the first intelligence sent by the undersigned at the moment when it was feared by the imperial royal government that an infamous attempt upon his Majesty's life had really been made. The undersigned having at once called upon the imperial royal minister of foreign affairs to express in his own name and that of his government those sentiments of horror at the crime and of sincere joy that it had been unsuccessful, which were so universally felt, conveyed to the United States government the impressions in regard to the event at that moment prevalent. Since that time he has been informed at the imperial royal foreign office that, although the process against the supposed criminal is not yet finished, the investigation as to his accuser, who claims to have been the savior of the Emperor's life, are unfavorable, and that it is highly probable that the unfortunate person accused will be acquitted of the odious charge. These new circumstances would seem to make it inconsistent with decorum for the under signed to ask for the honor of that audience which the President of the United States, under different impressions from those which now so fortunately prevail, had instructed him to request. The undersigned, unwilling to revive in the mind of his Majesty those painful sentiments naturally inspired when so infamous and causeless a crime was believed to have been attempted, would now content hmself with respectfully requesting his excellency Baron de Beust, minister of the imperial house and of foreign affairs, to intimate to his imperial Majesty the above-mentioned instructions of the President received by the undersigned, together with the assurance that nowhere in the world will the disproval of the existence of the crime be received with more unalloyed satisfaction than in the United States. The undersigned seizes this occasion to renew to his excellency Baron de Beust the assurance of his very high and distinguished consideration. J. LOTHROP MOTLEY. VIENNA, December 17, 1866. No. 220.] Mr. Motley to Mr. Seward. UNITED STATES LEGATION, Vienna, December 17, 1866. SIR: I have had the honor to receive your despatches Nos. 205, 206, 209, dated respectively October 16th, November 7th and 17th, which are replies to my despatches. I have also had the honor to receive your despatch No. 208, of November 16th, in reply to my No. 210, relating to the voluntary retirement of Count Mensdorff Ponilly, in which you express your high approbation of the ability and integrity of that statesman, sentiments in which, as you are already aware, I most cordially concur. In regard to your intimation of an apprehension that the change in the Austrian ministry is indicative of a new and startling policy, I am inclined to doubt whether that apprehension will be justified. I consider the present ministry as not essentially changed in its policy. That policy I believe to be one of conciliation abroad and of reformation at home. I doubt whether there is likely to be any general opposition to the pacific principles by which the imperial government is at present actuated. The axis on which the present policy of Austria turns is the Hungarian question. cannot say that much progress has yet been made in this respect. I have done my best hitherto to keep you informed as to this subject, and you may rely upon me for accurate and careful statements of anything that may occur. Meantime, I have the honor to remain, sir, your obedient servant, Hon. WILLIAM H. SEWARD, Secretary of State, Washington, D. C. J. LOTHROP MOTLEY. No. 221.] Mr. Motley to Mr. Seward. UNITED STATES LEGATION, Vienna, December 24, 1866. SIR: I send herewith a copy and translation of a note received from the imperial royal minister of foreign affairs. It is in answer to the note which I addressed to him under instructions from the President of the United States, as modified in consequence of the changed circumstances, and after conversation with the minister, in order to express to his imperial royal Majesty the satisfaction of the President and of the people of the United States, that the attempt once believed to have been made upon the Emperor's life at Prague had been frustrated. As I have already explained the reasons of the slight departure I have ventured to make from my instructions, I have only to repeat my hope that my course may be approved. I have the honor to remain, sir, your obedient servant, Hon. WILIAM H. SEWARD, Secretary of State, Washington, D. C. Baron de Beust to Mr. Motley. The undersigned, minister of the imperial household and of foreign affairs, has hastened to lay before the Emperor, his most gracious master, the note which the honorable envoy of the United States, Mr. J. Lothrop Motley, under instructions from his government, was so obliging as to address to him in regard to the flagitious attempt brought to notice during the latest visit of his imperial royal apostolic Majesty in Prague. Hereupon his Majesty has been pleased to command the undersigned most respectfully to request the envoy kindly to inform the President of the United States, that although the judicial investigation instituted in regard to the said occurrence has not yet resulted in a confirmation of the grave accusation raised, still the proof of friendly sympathy offered on this occasion by the President of the United States to his Majesty has been received by him with the heartiest thanks. The undersigned profits by this occasion to renew to the envoy the assurance of his most distinguished consideration. VIENNA, December 23, 1866. BEUST. Mr. Motley to Mr. Seward. UNITED STATES LEGATION, No. 223.] SIR: I have had the honor to receive your despatches Nos. 211, 212 and 213, of dates November 30th and December 12th, 1866, in answer to sundry despatches of my own. I send herewith the official Gazette of Vienna, of December 31st, 1866. It contains: 1. An imperial decree upon the basis of the patent of September 20th, 1865, (by which the Reichsrath was suspended,) establishing a finance law or budget for the year 1867. 2. The detailed estimates of receipts and expenditures for the years 1867 and 1868. 3. A report from the finance minister, Count Larisch Mönnich, addressed to the Emperor. As the document may have interest for the honorable Secretary of the United States Treasury, I beg respectfully that it may be handed to him. It will be seen that the expenses for the year 1867 are estimated at 3,896,000 florins; the receipts are estimated at 407,297,000 florins. The deficit for 1867 is, therefore, assumed to be 26,599,000. To this is to be added the deficit of the previous year, viz: 51,034,000 florins, making a total deficit of 77,633,000 florins. On the other hand, there remains at the disposition of the minister, in funds to be realized from extraordinary resources, under the laws of May 5th and August 21st, 1866, a sum of 79,495,000 florins. These figures show a much less formidable deficit than in previous years, while, according to the statement, there will be at the end of the year 1867 a balance of 1,862,000 florins to the credit of the government, after covering the regular liabilities of the past and current years. There will thus remain only the deficit to be met, which appears very moderate after the late disastrous war. The emission of notes has been limited to a certain extent by having recourse to other means. This was done, says the minister, by issuing the new five per cent. loan under the law of August 25th, 1866, and by the raising of the 30,000,000 florins for war expenses paid to the Prussian government. To raise these 30,000,000, being payable in silver, by means of notes was not advisable, because the purchase of silver, or of exchange, would have enormously raised the premium on specie. An arrangement was accordingly made with an association of bankers and credit institutions here, who, upon a deposit of securities, pledged their private credit with the national bank for the cash payment of the required 30,000,000 of florins, and were reimbursed by the successive receipts of the indemnification sum of 35,000,000 of florins, stipu lated by treaty, from the kingdom of Italy. The operation will be completed in the course of the year 1868, without being brought into the regular estimates, and there will remain a balance of 5,000,000, which your Majesty has decided to employ for defraying the expenses of extraordinary works of fortifications. The minister continues: The emission of five per cent. tax, free of state obligations, for the sake of producing au effective amount of 50,000,000 florins, was resorted to, because it is by no means indifferent whether the non-circulation amounts to 50,000,000, more or less; because, further, a channel ought to be provided for carrying off the superfluity of money certificates; and because, lastly, through the successive sale of obligations, the placing of a portion of them abroad may be reckoned upon, by which an inflow of specie must result, and a counter-check be established to the rise of the specie premium. The somewhat favorable condition of the finances, as compared with what might have been expected, is ascribed to the brief duration of the war, and to the subsequent and rapid increase in trade, especially of export trade. A great reduction of expenses in all departments is insisted upon and expected by the minister. After exclusion of the receipts and expenses of the Lombardo-Venetian kingdom, the state expenses for 1866 amount to 507,921,000 florins; those for 1867 to 433,896,000; hence, there is a diminution of 74,025,000 florins, and it is superfluous to call your attention to the fact that, on the correctness of these calculations and previsions must depend that disappearance of the deficit at the end of 1868 on which the minister reckons, in case there should, meantime, be no foreign war. The power to emit paper currency has been used up to the extreme limit allowed by law, viz: 400,000,000 florins, in order to provide for the exigencies. of 1867. The minister, far from wishing, however, an extension of this limit, expresses a strong desire and intention of gradually reducing the currency and of taking every means for moderating, beforehand, those convulsions and sacrifices usually caused by a return to specie payments after a long period of inconvertible currency. The extraordinary credits opened for the war department since May, 1866, over and above the estimates in the budget, at the beginning of the year, amount to 164,551,000 florins. This sum was chiefly met by the emission of paper money. Within the limits of this despatch, it would hardly be in my power to go any further into details. The accompanying official report gives every item of receipts and expenditures. The report is severely criticised, in the absence of any legislative body, by the journals opposed to the government, and much doubt is expressed in regard to the retrenchments in almost every branch of administration, on which the minister relies. Only the very sanguine, I should think, have great confidence that, for instance, the total army and navy expenditures for the year 1867 will be kept within the present estimates of 81,158,000 florins. These figures, as compared with the expenditures not only of the year just ended, but with those of many previous years, seem extremely moderate. On the other hand, the perfectly straightforward and honorable character of the finauce minister does not permit a doubt as to his sincerity in making up his general budget. The sum total of the public debt has not been again reported since my last despatch in regard to that subject. I find in the present report of the finance minister the estimates of interest to be paid on the debt, funded and floating, stated at 120,812,000 florins. This, of course, does not include the "Grundentlastungs obligationen." I have the honor to remain, sir, your obedient servant, Hon. WILLIAM H. SEWARD, J. LOTHROP MOTLEY. Secretary of State, Washington, D. C. Mr. Motley to Mr. Seward. UNITED STATES LEGATION, Vienna, January 15, 1867. SIR: The progress made since my despatch No. 217 in settling interior questions in this empire may be briefly stated. No arrangement has yet been arrived at with Hungary. The committee of 67 has not yet made its report to the Hungarian diet. Nevertheless, it is well known that the basis of any possible transaction, in the opinion of the majority of that diet, remains as before. Reform the laws of 1848 so that they shall not be incompatible with the interests and with the very existence of the whole Austrian monarchy, and you shall have a responsible ministry, and the re-establishment of the Hungarian constitution, says the imperial government. Re-establish the constitution first, and, as a necessary consequence, appoint a responsible Hungarian ministry to sit in the diet, and then we will revise the laws of 1848, says Hungary. Until that is done, no revision will be legal or constitutional. The laws of 1848 exist and have been duly sworn to by the Crown. Our constitution has never been forfeited; the continuity of our laws has, in every possible way, been proved. And in this vicious circle the process has not yet ceased to revolve. Meantime, a new cause of complaint has been found by the Hungarians in an imperial decree signed on December the 28th last, concerning some changes to be made in the law of September 28th, 1858, for increasing the army. This decree is valid for the whole empire. I send with this despatch a copy of the official Gazette of Vienna, for 31st December, 1866, in which it was first published. I do not think it necessary to analyze or to translate any portion of this new project, as its particulars can hardly have very great interest for you. By its chief provisions every man in the empire is obliged to serve twelve years in the army-six years in the line and six years in the reserve, (Article IV;) and exemption on payment of the former liberation tax is no longer allowed, (Article XI.) There are exceptional arrangements in favor of students, professional persons, public officials, which need not here be indicated. In order, however, to throw light on the situation, it is as well to allude to a project of address from the Hungarian diet on this subject, drawn up by Francis Deák and just made public. I suppose there is little doubt of its speedy adoption. (It has, since this writing, been unanimously voted.) It is a vigorous protest against the introduction of this new military law into Hungary. The Emperor is reminded of the request contained in the last respectful address of the Hungarian diet, that he would restore that solemn treaty, the basis of the mutual relations between Hungary and the empire, the violated pragmatic sanction, and the constitution guaranteed therein, but suspended by absolute power. Hope, however, has given place to anxiety and doubt, now that not only in the executive, but the legislative domain, absolute power is perpetually exerting itself over the most holy interests of Hungary, and especially by this late decree stretching far into the future. The decree is described as a new denial of the unquestionable right of Hungary to decide, through its legislature, upon even the slightest change in the military law, a right which she will never renounce. When, on the very threshold of the unexpected fulfilment of the Emperor's promise to restore the constitution, come instead, imperial absolute decrees, clothed with the full power of laws to be instantaneously enforced, it is inevitable, says the address, that confidence just beginning to awake should disappear again. It is easy to see, therefore, how far from satisfactory is the present state of feeling in Hungary. Such is the result, after many months of stormy debates in the diet, in which it was thought that something like a compromise with the government had been effected. On the other hand, the feeling in the German provinces is worse than it has been for a long time. The indignation felt by the party of the constitution of February, 1861, (suspended by the decree of September, 1865,) grows daily more intense. That this constitution can ever be resuscitated and accepted by the Hungarians, there are few to imagine possible. The exasperation at its violation and destruction is increased by an imperial patent issued on the second of this month, summoning the provisional diets of the cis-Leithan provinces to hold their election for a new six years' session under the provisions of the constitution of 1861. These diets, which, according to that constitution, had the right to elect members to the suspended Reichsrath, are now ordered to choose such members to an extraordinary Reichsrath to meet on the 25th of February, solely to discuss the constitutional question. This means that an assembly of deputies from the cis-Leithan provinces are to hold debate on whatever proposition may come by the 25th of February from the diet of Hungary, in regard to the common affairs of that kingdom, with the rest of the monarchy. It is merely a convention ad hoc, therefore-neither a parliament nor a constitnent body, having power to deliberate, not to decide. |