The reconstruction of the new Hungarian Ministry being completed, the Ministers took their seats in the House on December 7. Count Szapary and Baron Kemeny were the only new Members, the former for Finance and the latter for Commerce.

A three days' debate in the Hungarian Delegation on Eastern affairs, terminated on December 14 in the adoption, by a large majority, of the motion of Herr Hegedus to grant a sum of 20,000,000 florins for the occupation expenses in 1879.

Count Andrassy defended the Eastern policy of the Government in a long speech, and maintained that the occupation of Bosnia would not disturb the monarchy or shift its centre of gravity. His speech was received with prolonged cheering. The Austrian Delegation agreed in the greater number of the resolutions adopted by the Hungarian Delegation.

The year closed with the agreement of the Hungarian Parliament to the commercial treaty concluded for one year between Austria-Hungary and the German Empire, on the basis of the "most favoured nation " principle. Hungary, being in favour of Free-trade, approved the treaty only from necessity, and in order to avoid a Custom House conflict; but at the same time a demand was made that the Government should undertake soon to conclude treaties of commerce with foreign countries, and with this view Parliament decided to form a special committee upon commercial and tariff relations with other nations. Austria, on the other hand, remained enamoured of a Protectionist tariff.

CHAPTER III.

RUSSIA, TURKEY, AND THE EAST-EGYPT-CHINA-THE UNITED STATES.

Russia and Turkey.-The War-Crisis at Constantinople-The Armistice-New Ministerial Crisis in Turkey-Dissolution of the Chamber-Ferment in Greece and Roumania-Continued Agitation-Treaty of San Stefano-Nihilist Trials-Vera Sasulitch-Rising in the Rhodope Mountains-Mission of Count Schouvaloff-The "situation" in May-The Congress and its results— The Servian Skuptschina-Crete-Russia's Eastern Policy-Turkish Circular ----Continued Disturbances-Murder of Mehemet Ali-The Albanian League -Colonel St. Clair-Rising in Bulgaria-Reforms for Asia Minor-The Roumanian Chambers-European Commission in Eastern Roumelia-The Jewish Difficulty-Murder of General de Mesentzoff.

Egypt.-The Financial Committee of Enquiry-The Khedive's Assent to their Report --Compromise with France-Nubar Pasha's Ministry-Summary of the Report of the Commission.

China-The Famine-Demand for the restoration of Kuldja.

The United States.-The Silver Bill-The Bland Bill-Halifax Fishery Commission-Mr. Potter's Resolution-Frauds at the late Presidential ElectionResolution of Congress-Indian Encounters-Speeches of Mr. Sherman and the President—The Yellow Fever-Mr. Evart's Despatch-The Greenback Labour Party-The "Fall Elections."

RUSSIA, TURKEY, AND THE EAST.

Ar the beginning of the year it became evident that the Turkish resistance was failing. On December 31, 1877, General Gourko carried, after a sharp contest in which he lost some 700 men, the fortified position of Taschkesen, in the valley of Sofia, and proceeded to force his way to that place through the Etropol Balkans ; while in the Central Balkans also the Russians were pressing upon the Turkish army. The semi-official Agence Russe of January 2, published an article discussing the comments of the Russian and foreign press upon the character to be attributed to the position of intermediary between Turkey and Russia accepted by the British Government, and declared that mediation on the part of England would be neither desirable nor practicable. Over the Etropol Balkans General Gourko made a wonderful march. He abandoned the main road, and took a mountain-path from Orkhanie to the westward of Kaba Konak, and thence to Taschkesen. The road for the guns had literally to be made in the dark, for the sappers could only work at night, and the paths were so slippery that steps had to be cut with the axe, as in ascending a steep snowmountain. The men, ill-fed and subjected for several days to intense cold, were almost worn out, and after doing their work in the snow, dropped down asleep "like logs;" but still the road was made, and the advance-guard, after thirty hours of incredible effort, scaled the ridge and slid down literally to the southern side. The whole force gradually crossed, and Sofia was occupied on January 6. Following up, meanwhile, their success in the

Trojan Pass, the Russians, under General Radetzky, took the Shipka-though defended by a Turkish army of forty-one battalions, ten batteries of artillery, and one regiment of cavalry. A Turkish battalion has a numerical strength of 800 men, and a battery consists of six guns. They fought desperately, it was said; and the number of guns taken (sixty) was larger than any taken on either side in the European campaign, except at Plevna, which fell after investment. Generals Mirsky and Skobeleff had penetrated the Balkans by the Trojan Pass, and occupied Kezanlik, so the Turks were enclosed between the two armies. The Porte, terrified and disorganised, instructed the general in the field to conclude an armistice. Server Pasha made a statement to the Chamber of Deputies, informing them that every effort had been made by the Government to interest the European Powers in the fate of Turkey, but in vain, and that it was idle to entertain any hope of an alliance. Turkey was completely isolated, and it therefore became necessary for her to determine alone how she could best bring the present war to a close. The terms of an armistice, he informed the Chamber, had been agreed upon by the Cabinet, and when it had been concluded with the Russian commanders its nature would be communicated to the Chamber. The Russian reply was received at Constantinople on January 14, and was of a conciliatory tenor. The Porte was desired, however, to send a plenipotentiary to the Russian head-quarters to discuss the preliminary conditions of peace on which the armistice was to be founded. A ministerial crisis followed at Constantinople. The Turkish Ministry resigned, and a new Cabinet was constituted, with Hamdi Pasha as Grand Vizier, and Server Pasha as Minister for Foreign Affairs. A special Constantinople despatch to the Daily Telegraph said that "The changes which have taken place are regarded as favourable to the pending negotiations, and opposed to the separate peace arrangement desired by Russia. Edhem Pasha, who opposed all negotiations, has been superseded by Hamdi Pasha, who is favourable to a dignified and not a dishonourable peace." Meanwhile, while General Gourko drove Suleiman Pasha over the Despoto Dagh and down to Kavola, Adrianople being not yet occupied, and long trains of munitions and supplies still crossing the Balkans; and while the Turkish plenipotentiaries were negotiating with the Grand Duke Nicholas at Kezanlik, the panic in Constantinople was described as deplorable. The bulk of the immense population, which is estimated at all figures from 600,000 to 1,400,000, was frightened by the crowds of footsore, half-frozen, hungry refugees swarming into the city, and was most anxious for peace. The Softas, however, were angry with the Government, and threatened the Sultan with deposition through the old means of placards, while the temper of the garrison was to the last degree uncertain. The Sultan, afraid of the Russians, afraid of the populace, and afraid of his own advisers, listened with one ear to the suggestions of flight to Broussa, and

with the other to counsels of resistance à l'outrance behind the lines of Tchataldja, while he at the same time sent off messenger after messenger to increase the powers of his plenipotentiaries. Stories of the intention of the Softas to fire the city were constantly circulated, and fears of an outbreak ending in general carnage gravely entertained. However, after weeks of suspense, the armistice and preliminaries of peace were signed at Adrianople on January 31. The latter comprised the establishment of a Principality of Bulgaria; the payment of a war indemnity or a territorial compensation; the independence of Roumania, Servia, and Montenegro, with an increase of territory for each of the principalities; the introduction of reforms in Bosnia and the Herzegovina; an ulterior understanding between the Sultan and the Czar on the question of the Straits; and lastly, the evacuation of the Danube fortresses by the Turks.

The Sultan and the Czar, on the signature of the armistice, exchanged telegrams expressing their mutual satisfaction at the cessation of hostilities. The telegram from the Czar to the Sultan was thus worded:-"I desire peace as much as yourself, but it is necessary for me, and it is necessary for us, that it should be a solid and enduring peace." In St. Petersburg prayers were offered up in the churches, and salvoes of artillery fired, on the occasion of the signature of the armistice. The town was decked with flags, and preparations made for brilliant illuminations. In Constantinople there was great satisfaction at the news.

In consequence of the above conditions, a portion of the British fleet was at once ordered to leave Besika Bay and proceed to Constantinople for the protection of British residents there. Consequent on this movement of England, the following telegram, dated February 10, was sent by Prince Gortschakoff to the Russian Ambassadors at Berlin, Vienna, London, Paris, and Rome:-"The British Government, upon reports furnished by its Ambassador in Constantinople, has determined to take advantage of a previously obtained firman in order to direct a portion of its fleet to Constantinople, with the object of protecting the lives and property of British subjects in the Turkish capital. Other Powers have adopted a similar course with a view to the protection of their subjects. This intelligence, taken as a whole, obliges us, on our side, to take into consideration the proper means of protecting those Christians whose life and property might be threatened, and in order to attain this result, to contemplate the entry of a portion of our troops into Constantinople."

It was further announced semi-officially that orders had been sent to the Grand Duke Nicholas in conformity with this determination.

The next day (February 11) it was stated that the British ships had returned to Besika Bay, as the Porte had up to that time refused to grant the necessary firman to enable them to pass through the Straits.

Before all this was known it was telegraphed from Constantinople that the city was practically in the power of the Russians, whose officers were walking about Pera and Stamboul without any escort, whilst some of them had, after being received by the Sultan, left to arrange the line of demarcation between Turkey and Montenegro.

The Russian Agency, in a special supplement, dated midnight, February 9, said:"The entry of the British fleet into the Bosphorus is an accomplished fact. Although this act is said to be caused by the necessity of protecting the Christian population of Constantinople, the decision of the British Cabinet nevertheless restores to Russia her liberty of action. If the despatch of the English fleet, which was requested by Russia through the Berlin Memorandum, and again at the time of Count Soumarakoff's mission to Vienna, is intended as a method of co-operating in the maintenance of order and in the attainment of a durable and equitable European solution of the Eastern Question, the British ships will be welcomed as auxiliaries. In any case, Russia will regulate her attitude by that of England."

The Russian newspapers generally expressed doubt that the sole object of the English Government in sending the fleet to the Bosphorus was to protect British subjects at Constantinople. The Agence Russe remarked that the reasons assigned for sending the English fleet to Constantinople were but little justified, since intelligence received from the German Embassy at Constantinople, under date of February 8, announced that the safety of the Christians was in no way threatened, that the occupation by the Russian troops of the points agreed upon in the terms of the armistice was proceeding in due order, and that all reports of the armistice being abused were absolutely false.

A Constantinople telegram stated that on February 12 Mr. Layard telegraphed at midnight to Lord Derby that, up to that hour, he was still without instructions with regard to the fleet. An earlier despatch said :

"Mr. Layard did not stop the British fleet from entering the Dardanelles, but Vice-Admiral Hornby himself withdrew to Besika Bay on receiving notice from the Governor of the Dardanelles that he was without instructions, and could only allow the fleet to pass under protest." Another telegram stated "that the Grand Duke Nicholas has expressed his satisfaction to Ahmed Vefyk Pasha at the non-admission of the British fleet to the Bosphorus." At the sitting of the Turkish Parliament on February 11 Ahmed Vefyk Pasha declared that if the British fleet passed the Dardanelles he would protest against the act, and cast the responsibility of the consequences upon England. At the sitting on February 12, however, we are told, "several deputies urged Ahmed Vefyk Pasha to act with consideration towards England in dealing with the question of the passage of the Dardanelles." In this unlucky Parliament there was new confusion. Ahmed Vefyk Pasha was appointed