Christian provinces of Turkey really happy, self-dependent, and independent of Turkish rule.

Lord Carnarvon made a fine speech, pointing out how convenient for a time it had been to have a Power commanding the Dardanelles and the Bosphorus which was not strong enough to stand alone, but was strong enough to stand by the aid of England, and how hopeless it would be to find any exact equivalent for such an arrangement. The only substitute would grow up gradually in the general improvement and increasing power of the subject races of Turkey, and it was their interests which we ought to go into Congress to guard. But Lord Derby, in defending the action of the Government from first to last, expressed his painful sense of the terrible difficulty of the problem of the Congress. That difficulty soon began to take shape. Lord Derby informed the Lords that the Government were in communication with the other Powers, and principally Austria, on the subject of the basis of the Conference. The Austro-Hungarian Government having taken the initiative, her Majesty's Government had already expressed their opinion that they were not prepared to recognise, as valid, changes in the arrangements made by European treaty until such changes had received the assent of the Powers, and that it was desirable that not merely a part, but the whole, of the treaty lately concluded between Russia and Turkey should be submitted to the Conference. He told them also-the Chancellor of the Exchequer making the same statement in the Lower House-that England had proposed to the other Powers that Greece should be represented at the Conference. The full text of the Treaty of Peace, published soon after this declaration, declared Montenegro independent with a considerable extension of territory to the south and the port of Antivari, recognised Roumania as a free State, giving her the Dobrudscha in exchange for a portion of Bessarabia to be ceded to Russia: Servia made independent, with an addition of territory, including Little Zwornik and Novibazar, and part of Old Servia. Bulgaria was declared an autonomous Principality, with a Christian Governor, to be elected by the people, and not to belong to any of the greater dynasties, and would include Northern Bulgaria, Southern Bulgaria, avoiding Adrianople, but touching the coast, and stretching westward almost to Salonika. The Prince was to pay a tribute, to be hereafter decided by Russia, Turkey, and Europe, and the Principality to be occupied by 50,000 Russian troops until the native militia is formed. The period, however, must not exceed two years, and at the expiration of one other Powers might join in the occupation. All fortresses to be razed and none rebuilt on the Danube, and the Porte to retain a right-of-way for its troops along a military road. Otherwise, no Ottoman troops to remain in Bulgaria. Reforms to be introduced into Bosnia and Herzegovina, under arrangements with Austria, and the whole revenue to be applied to compensate the exiles. The Cretan organic law to be better applied, and a similar law to be extended to

Epirus, Thessaly, and other Greek provinces, according to arrangements to be devised by Russia and Turkey. Mussulmans to be allowed to reside in the Christian Provinces, but if landowners, to return there within two years or dispose of their property.

Such were the European terms, with the addition that the Russian army must retire within three months, the question of the Straits being left nearly as before, though right of passage was guaranteed to merchant ships at all times; but in Asia the Czar took some direct advantages. The Sultan ceded Armenia, from the Eastern frontier to the Soghanli Dagh, instead of a nominal indemnity of great amount, and promised reforms and protection from the Kurds to the rest of Armenia. The Sultan also agreed to pay an indemnity of 300,000,000 roubles, or 45,000,000l. sterling, in modes to be hereafter settled; and to compensate Russian subjects in Turkey for their losses up to 1,500,000l., to protect Russian subjects, and especially the monks of Mount Athos, and to amnesty all Turkish subjects who may have had relations with the Russian army. All prisoners of war to be restored on both sides. The whole of the arrangements thus published, arose the difficulty intimated by Lord Derby, whether the Congress should be competent to discuss them all. England demanded that Congress should settle this question for itself; but the Russian Government resisted the demand strongly, as interfering with their just rights as victors. Lord Derby disclaimed all intention of such interference, but maintained that a European sanction must be given to the new European settlement which was now to supersede the arrangements of 1856, and to that end he insisted the submission of the whole treaty of San Stefano to the Congress was essential. Again, therefore, the cloud like a man's hand began to arise, and fresh interest was given to Mr. W. H. Smith's introduction of the Navy Estimates in a speech in which, following Mr. Hardy's example, he spoke of them as Peace Estimates. In accordance with this pacific policy, Mr. Smith said the number of seamen asked for was precisely the same as last year. But, the First Lord immediately added,

"I am satisfied that the supply of seamen is sufficient to ensure ample protection to the shores of this country, and for the preservation of the honour and interests of the nation. We have men enough in the Coastguard and in the Marines on shore to man every ship that it is possible for us to put into the fleet at the present moment, and we have also the Royal Naval Reserve, which is available for us to fall back upon."

Entering at once into details, Mr. Smith said there was a slight increase in the vote for wages, owing to the larger number of ships in commission; but, on the other hand, there was a decrease in the vote for victuals and clothes. For dockyards and dockyard work the sum was 3,530,000l. last year, and in the forthcoming year it would be within 500l. of the same amount. Eleven armour-plated ships will be either begun or advanced, the latter

category comprising the "Dreadnought," "Inflexible," "Nelson," and "Northampton;" and twenty-eight torpedo-boats would be built. The appointment of a Roman Catholic chaplain to every fleet of five or six ships stationed at a distance from any port would, he hoped, satisfy the Irish members who had moved in the matter; and, with a concluding eulogium of his predecessor's work in the office, the First Lord brought his practical speech to a close. desultory discussion was wound up by Mr. Smith, who obtained the vote for the men, 2,702,000l. for wages; 1,146,000l. for clothing; 260,000l. for the expense of the Admiralty Office; 207,000l. for coastguard; and 210,250l. for conveyance of troops —an increase of some 42,000l. on this head being due to the war at the Cape.

The month of March was not to close, however, in spite of peace estimates, without new and serious alarm. The rumours of disagreement in the Cabinet, which had so long been rife, and which had been justified by the retirement of Lord Carnarvon and the threatened retirement of Lord Derby, were to be yet further and more gravely justified. The Foreign Office controversy with Russia, on which Lord Derby was of one mind with his colleagues that Russia must not decide what clauses of her treaty the Congress should discuss, induced Lord Beaconsfield to determine upon a step upon which Lord Derby disagreed. Through our new Ambassador at Vienna, Sir Henry Elliot, a precise enquiry was made whether the understanding was that the whole treaty in its relation to existing treaties was to be examined and considered in Congress. The reply was in very distinct words-that Russia "leaves to the other Powers the liberty of raising such questions at the Congress as they might think fit to discuss, and reserves to itself the liberty of accepting or not accepting the discussion of these questions." Prince Gortschakoff held to his first answer, that, as the Treaty had been communicated to all the Powers, and as every Power had full "liberty of appreciation and action" in relation to any article which might seem to it to concern Europe, so Russia claimed the same liberty for herself of accepting or declining a discussion on any one point. On this point Sir Stafford Northcote stated to the Commons that the negotiations for a Congress had been broken off; and on the same evening the House of Lords was startled by a report that Lord Derby had resigned. On his entrance it was at once seen that the report was true. He took his seat below the gangway, and rising at once, stated that he had tendered his resignation to her Majesty, and that it had been accepted. "My Lords," he said, "it is my duty to take the earliest opportunity of stating to your lordships that I have ceased to hold the office of Secretary of State for Foreign Affairs; or, to speak with more verbal accuracy, that my resignation of that office has been tendered to and accepted by her Majesty, and I only continue to hold that office till the appointment of a successor relieves me from its duties. As a general rule, it is

equally the right and the duty of a Minister who retires from office to explain-usually in some considerable detail-to Parliament the character and nature of the differences which have arisen between him and his colleagues, in order that he may justify himself from the imputation of having taken what in any circumstances is a grave and important step on light or inadequate grounds. My lords, I regret that under present circumstances it is not possible, or at least desirable, for me to follow that customary and convenient rule. My lords, I have received from her Majesty and from my noble friend at the head of the Government, full permission to use my own discretion in the matter; but your lordships will easily understand that in the present state of our foreign relations there are many things which require to be considered and consulted upon by those who are responsible for the conduct of public affairs which it is not in the interests of the State should be made public at the time when that decision is taken. My lords, the Cabinet have arrived at certain conclusions which, no doubt, are of a grave and important character. In the measures which they propose I have not been able to concur. My lords, to prevent needless alarm from any words of mine, let me say at once that I do not consider that those measures necessarily or inevitably tend to bring about a state of war. I give those with whom I have acted entire credit for desiring as much as I desire the maintenance of the peace of Europe. We agree as to the end, but, unhappily, we differ as to the means; and I cannot, in the exercise of my deliberate judgment-however willing and anxious I may be to submit that judgment to what I know to be in many respects the better opinion of my colleagues-I cannot consider the measures upon which they have decided as being prudent in the interests of European peace, or as being necessary for the safety of the country, or as being warranted by the state of matters abroad. My lords, when the concurrence of Parliament is asked for those measures of which I have spoken, I shall be ready, if necessary, to vindicate the opinion which I have entertained; but until then I consider I am bound by public duty to speak only in the most general terms, leaving it to those who are responsible for the management of public affairs to choose the time and the manner in which they will think it their duty to bring them before your lordships. My lords, there is one possible miscontruction of my conduct against which I think it is desirable I should. guard. It might possibly be inferred, from the time at which I speak and the nature of what I have said, that I have dissented. from the view taken by the Cabinet of the conditions on which England ought to go into the Congress. I am bound to say that is not the case. I deeply regret the obstacles which have sprung up-sprung up without any expectation-in the way of tha Congress being called together; but the fault in my judgment does not rest with the Government of this country, and the dispute in which we are engaged is not one of form or of words,

but one of a very substantial nature. My lords, in my opinion there would be very little use for England to go into a Congress unless we are assured that the discussion which was there to take place was to be one of a real and not an illusory kind; and if we were to choose between the two alternatives, I am bound to say I think that, in the interests of European peace, it would be the less misfortune of the two that the Congress should not meet at all, rather than that, having met, and serious difficulties having arisen at the outset of its sitting, it should break up without any result having been arrived at. My lords, I do not rise to argue this question. I have referred to it merely to prevent the idea going abroad that it was on that question of the Congress the Cabinet and I have been unable to agree. My lords, I need not tell your lordships, and least of all need I tell my noble friend at the head of the Government, that no personal motive has influenced me in the step I have felt compelled to take. Every personal motive and every private feeling influenced me in the opposite direction. My lords, no man would willingly break, even for a time, political and personal ties of long standing, and in the public life of public men of the present day there are few political and personal ties closer or of older date than those which unite me with my noble friend. My lords, I will say more. I have always held that in minor matters a public man is not merely justified in making a considerable sacrifice of his personal opinions, but is even bound by duty to make them, because, without that, party organisation and collective action would become impossible; but, my lords, when questions of European interests are at stake-when the matters in discussion are really matters involving the issue of peace and war-I am sure your lordships will feel, as I do, that those are not matters in regard of which it is possible for any man actuated by a sense of public duty to be influenced by considerations of personal respect and regard. If that were possible, I should be of one mind with my noble friend at the head of the Government. My lords, I end as I began, by saying that I am compelled at present to speak only in these general terms. I must reserve for a later date, if it becomes necessary, any further explanation of the course which I have pursued."

The Earl of Beaconsfield rose after Lord Derby. "My lords," said he, "your lordships have heard that the Queen has lost to-day the services of one of the ablest of her counsellors. Those only who have served with my noble friend can sufficiently appreciate his capacity for affairs, the penetrating power of his intelligence, and the judicial impartiality of his general conduct. My lords, I have served with my noble friend in public life for more than a quarter of a century, and during that long period the cares of public life have been mitigated by the consolation of private friendship. A quarter of a century is a long period in the history of any man, and I can truly say that, so far as the relations between myself and my noble friend are concerned, those years