of confidence, and was ready to reply to all the grievances of an opposition which he considered arose from political more than from financial motives. He had made every possible concession, and had done so from a conviction that a change of Government would be fatal to the country. He could not appeal to European credit for the forthcoming loan without possessing the confidence of the Assembly, which he should believe himself to retain till the contrary verdict should have been pronounced.

Great relief was felt when the debate at last came to an end and the Government majority of 99 was announced. The vote itself afforded a significant proof of the instability of political opinion in the Chamber. On the 19th of January last 99 members of that Chamber, all belonging to the Republican party, had sided against the Government proposal to burden the productive industry of the country by taxing its Raw Materials. Representing the interests of the working classes, and alive to the disastrous consequences of such a tax upon their material comfort and well-being, they had then voted in accordance with their political and economical convictions, and their newspaper organs at the time clearly, and in some instances ably, defended their action in thus, where the most important financial interests of the country were at stake, not hesitating to provoke a Ministerial crisis. Nothing had happened to change the economical aspect of this question since, and yet within six months the whole of these 99 members were found voting to a man in favour of the tax they then repudiated, while 28 members of the same party who voted against the tax then abstained from voting on the present occasion. Political necessity was the plea readily enough adduced for this inconsistency on the part of the Repulican deputies. The preponderating circumstance which led to it was the impending Loan now about to be raised for the purpose of carrying out the provisions of the new Treaty with Germany.

We have said that on the 1st of July, while the House was engaged in one of its noisiest mêlées of debate, M. de Rémusat, the Minister for Foreign Affairs, produced a sudden stillness by coming forward to read the text of the new Convention which had been drawn up between M. Thiers and Count von Arnim, the German Minister at Paris, for hastening the payment of the War Indemnity and the evacuation of the occupied departments. The terms were that one half-milliard of the outstanding debt should be paid within two months after the ratification of the Treaty; that in fifteen days after such payment, the departments of the Marne and the Haute Marne should be evacuated. A second half-milliard to be paid on March 1, 1873, but not to be attended by any further evacuation. One milliard to be paid on March 1, 1874; such payment to be followed by the evacuation of the departments of the Ardennes and the Vosges. The third milliard and the accrued interest to be paid on March 1, 1875, followed by the evacuation of the departments of the Meurthe and Meuse, and of the fortress of Belfort. Germany to have the right of retaining in the non-liberated departments the whole of the

present occupying force, and the charge for the maintenance of that force not to be diminished unless Germany should reduce its strength before the 1st of March, 1875. France not to keep in the liberated departments and the fortresses situated therein a greater military force than necessary for the maintenance of order. Until the same period France not to construct, repair, or enlarge existing fortifications in the departments which have been or may be liberated. After the payment of the first two milliards, France to be allowed, by agreement with Germany, to substitute other financial guarantees for the territorial guarantees, but such guarantees must in that case form the subject of a fresh treaty. "The question now, therefore," said M. de Rémusat, in his speech, "is wholly a question of finance or credit. Although the payment of the last milliard is postponed until the 1st of March, 1875, the French Government do not expect that they will require to take advantage of this delay. . have two modes of payment possible. The resources of a loan by the favour of some banking combination would allow us to pay the whole amount between 1873 and 1874, or, as the possibility of substituting a financial guarantee for a territorial guarantee expressly applies to this last payment, we shall thus obtain, and at least for the same date, the total evacuation of French territory. All depends. on the facility of anticipating the payments, on the power of our credit, on the good order of our finances, and, finally, on your wisdom. . . . . The peace prevailing in Europe, the moderate policy of all foreign Cabinets, the complete re-establishment of order and tranquillity in France, the renewed activity in trade and manufactures, the return of public prosperity, have proved the solidity of our credit and the confidence entertained towards our Government both at home and abroad. All convinces us that a formidable loan is necessary, and it will be made under the most favourable circumstances. In the readiness of France to make painful sacrifices, the world will see a certain proof of her pacific spirit-a spirit of which, we are bound to say, Germany has also given us evidence in these negotiations. Peace was the first object of the work of reparation confided to you by France. By adopting the treaty, the Assembly will consolidate peace and secure our independence."

The Treaty was referred to a Committee, and the Duc de Broglie presented on the 6th the report of that body accepting it. It was then passed by the Assembly with only four dissentient voices.

The next step consequent on the Treaty was the negotiation of a Loan sufficient to liquidate the debt within the shortened term specified by the new arrangements. No difficulties stopped the way in Committee, and when M. Vitet presented its report on the 15th the law for raising the Loan was voted almost without discussion. It gave Government power to issue a sufficiency of rentes at 5 per cent. to produce not less than three and a half milliards of francs, i. e. adding expenses connected with the transaction, about 140,000,0002. sterling. Security was promised to the investing public by the annual sinking fund of 200 million francs lately voted by the

Assembly. The Committee added a clause authorizing Government to raise the circulation of the bank to 3200 million francs. The rate of issue of the Loan was to be 841 per cent. and the days fixed for the transaction were Sunday 28th, and Monday, 29th of July.

When the appointed day came the excitement in Paris was intense. Not only the Bourse, the Petite Bourse, the Boulevards were crowded, but at each Mairie and office, between two and three hundred in number, applicants, whether gentry, small traders, or workmen in blouses, pressed forward to invest their savings. Nor, even in the Communist quarter of Belleville, did the populace seem less eager than elsewhere to testify their faith in the promises of Government. On the 30th, M. de Goulard was able to announce to the Assembly that the subscriptions had amounted not to three milliards and a half of francs, the anticipated sum, but to forty-one milliards and a half, or nearly twelve times as much, while returns had still to come in from various places. The amount finally given in was forty-three milliards, or 1,720,000,0007., while the greatest part of this enormous subscription was furnished by the French themselves, whose hoards, it was observed, came forth more readily on this occasion than even when invited by the imperial loans of Napoleon III. A vast amount was proffered by both England and Germany. The German subscription alone would have sufficed to cover M. Thiers' original demand.

M. de Goulard's announcement was received with enthusiastic applause. He thus improved the occasion on behalf of religion and of the existing government. "A nation like ours," he said,

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showing the faith she has in herself, is justified in counting on the future. She has a right to consider the severe lesson she has received as an expiation of her faults and a surprise of fortune, but, thank Heaven, France is not condemned to see in it a sign of decadence." He added that he felt it necessary to thank God for the protection accorded to France. (Here applause was raised from many parts of the Assembly.) God had given the country an abundant harvest, and had given French patriotism the possibility of extending its generosity towards making the sacrifice which had already been accepted. He concluded, "Let us not forget that it is to France, pacific, laborious, and just-to France, firmly devoted to ideas of order and wise liberty (loud applause on the Right); that it is to a Conservative Republic (repeated applause on the Left)-yes, to a Conservative Republic, faithful to the principles which are the eternal basis of civilized society, that our fellow citizens and foreigners have given testimony of their absolute confidence. Despite our errors and misfortunes, the world has not ceased to believe in us, and does not doubt the destiny which is reserved for us by Providence. Let us not doubt it ourselves, but merit it by union, wisdom, and patience." (Here applause was redoubled on the Left and Left Centre, the Right and Right Centre remaining silent.)

The result of the loan was indeed a brilliant success for M. Thiers

on the eve of the Assembly's prorogation. It hushed the voice of discontent, and blunted for a while the hostile weapons both of Right and Left Extremes.

But already the high-reaching aims of the deputies of the Right in connexion with Marshal McMahon and the future Presidency, as expressed in their party councils of the middle of June, had submitted to abatement in face of the actual political situation; and towards the close of the Session they were fain to content themselves with what vent they could find for their feelings in an attack on M. Gambetta, relatively to certain alleged fraudulent contracts for "Parrott Guns," made during the war by an employé of his government. Dr. Naquet, a distinguished chemist, was the person chiefly implicated. Being put upon his defence, Naquet declared that, in the disproportionate payment he had made for these guns, he had been misled indeed, but had acted himself with perfect integrity. Then one of the riotous episodes so common at this time ensued. The Duc d'Audiffret Pasquier thundered against Dr. Naquet with a violence as uncalled-for as it was undignified. Gambetta's speech, defending the honesty, but admitting the indiscretion, of his subordinate, was moderate as compared with that of the orator of the Right.

The deputies of the Left had their own manifestation, at the close of the Session, in an extra-parliamentary way. On the afternoon of the 2nd of August they met in the Tennis Court at Versailles, and voted a proclamation to the country justifying the conduct of their party during the Session just closing. They adverted to the state of the country on the eve of the elections in June, 1871, when the Monarchical parties were divided among themselves, but united against the Republic. Now, the last six Departments were about to be liberated, the Loan had been twelve times covered, industrial activity had been restored, and political factions had been rendered powerless. This state of things fully justified the conduct of the Left and its support of M. Thiers. The policy of the Republicans had been a policy of conservation and reparation. It was not they who had retarded the peaceful settlement of the country by insisting on the provisional nature of the Republic. They had always sought unity, and had opened their ranks to all accepting the Republic in good faith. They had voted the Taxation on Raw Materials because the majority would not accept the Income Tax, and it was necessary to furnish the Treasury with resources demanded particularly for the interest of

the Loan.

The future dissolution of the Assembly was touched upon. "When the Budget of 1873 has been voted," it was said, "when the legislation concerning the re-organization of the Army had been completed, it was to be hoped the Assembly would appreciate the immense change in ideas and things which had taken place since its election, and would acknowledge its mission to be terminated, and the moment to have arrived when the Republic should be placed in

the hands of a new Assembly, whose task should be to develope and strengthen the work of national redemption and regeneration, and rally around the great citizen, who would have in history the proud honour of associating his name with the definitive foundation of the French Republic."

The Assembly was prorogued on the 4th of August; and the day afterwards M. Thiers went to seek repose and the refreshment of sea-breezes at Trouville. Everywhere on his route he was received with loud acclamations. And indeed, however uncertain the prospects of the future might be, his reflections at this moment could scarcely fail to be those of self-gratulation and complacency. But in his hour of triumph the veteran statesman could spare sympathy for one of the competing political leaders around him, over whom a heavy cloud had just fallen: one of the house whose trusted follower he had himself been in days gone by. The Duc d'Aumale was bereaved, on the 25th of July, of his only surviving son, François, Duc de Guise, a promising youth of eighteen, who died, after a short attack of scarlet fever, at Paris, his father having left him for the baths of Aix, in Savoy, only a few days previously. This much-lamented scion of the House of Orleans was consigned to the tomb at Dreux, in presence of various members of his family, and of the Duc d'Aumale himself, now, at the age of fifty, a childless widower. Great commiseration was felt on all sides for the sorrowing prince. To a deputation which visited him with a message of condolence, he replied that all ambition was over for him henceforward, but that he would never be deaf to the voice of his country as long as she should see fit to demand his services.

CHAPTER II.

FRANCE.

Inquiry into the Insurrection of March 18, 1871-Council of Capitulation-Trochu's Libel Case-Trials of Blanqui and other Communists-Executions at SatoryRépublique de M. Thiers-Gambetta-Republican banquets-Gambetta at Grenoble-Alarm of the Conservatives-Pilgrimages in the South of FrancePermanent Committee on 10th of October-Expulsion of Prince Napoleon--M. Thiers at Trouville-His visit to M. Guizot-Political Manifestoes-Elections of 20th October-Royalist banquet at Bordeaux-Meeting of the Assembly-Thiers' Message General Changarnier's Interpellation-Thiers' threatened Resignation -Kerdrel Commission-M. de Batbie's Report-Speech of M. Thiers-Dufaure Commission Resignation of M. Lefranc-Official Appointments-Debate on Petitions for Dissolution-Minor Measures-Committee of Pardons.

MEANWHILE public opinion had continued to occupy itself with the events of the past two years. A commission appointed to inquire