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selves, in the first place, to the Holy See. If the care of its dignity made it a duty for us to consult before all its wishes, the interest of the arrangement which we were following up did not the less engage us to secure its assent to any other step destined to surround it with guarantees of conventional rights. I moreover asked his Eminence, in presence of the regret which he had expressed, whether, in case Italy had in the first place adhered to our propositions, the Holy Father would have shown himself more disposed to accept them. The Cardinal Secretary of State replied in the negative. The Sovereign Pontiff would have still felt himself under the influence of the same question of conscience.

"Reverting to the guarantees with which we propose to surround the maintenance of the territorial statu quo, his Eminence insisted that the Powers who signed the Treaty of Vienna, having guaranteed by that document the totality of the States of the Church, it would be strange, and in some measure contradictory, that those same Powers should be now invited to guarantee only a small part of them. I replied to the Cardinal, as I had already had occasion to do in a previous discussion, that in principle the general Act of Vienna had not more solemnly guaranteed the possessions of the Holy See than the other States whose limits had been fixed at that period, and that, in fact, the territorial divisions then effected had already been subjected to more than one attack.

"I did not find it necessary to remind his Eminence that the

same Powers which had constituted Holland in 1815 had permitted Belgium to detach itself from her in 1831; and only to speak of the political changes which had lately taken place in the Italian Peninsula, those modifications he well knew had been already more or less implicitly recognized by several of the Cabinets represented at the Congress of Vienna. The Holy See had therefore every interest in seeing the guarantee to which he alluded, which was a general one, inefficacious, belonging rather to history than to the policy of the present time, and weakened by more than one fait accompli, replaced by a new special guarantee, no longer depending on a number of stipulations, the more difficult to maintain as they were more complicated, but having, on the contrary, as its particular object, the definitive settlement of a capital question both as regards Europe and the whole Catholic world. In that guarantee we had the legitimate hope of uniting the Powers which signed the general Act of Vienna, but the adhesion of the Holy Father was in the first place necessary.

"The Cardinal Secretary of State merely recapitulated the motives which did not allow the Holy See to renounce in any way whatever any portion of the rights which were much less its property than that of the Catholic world. These same reasons compelled it to reject the clause which tended to turn over the burden of the Roman debt to the Government of Turin.

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of the legitimate Government, would be, on the part of the Holy Father, recognizing the spoliation itself. His conscience absolutely refused to accede to it. Aided by the donations of the faithful, his Holiness has hitherto been able to meet all the obligations which he considers sacred. Full of confidence in Divine Providence, he will continue to fulfil his engagements, and will only cease to do so when absolutely unable to satisfy them.'

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The obligatory refusal of these propositions,' continued his Eminence, necessarily involves the rejection of the third, which cannot exist apart from the first two. However grateful the Holy Father may be for the generous dispositions shown towards him on the part of the Emperor, as well as for the proposition of which His Majesty declares his readiness to undertake the initiative in his favour, it is impossible for him to accept them. He is bound to decline them in the interest of his independence, if not of his dignity. To accept an indemnity, under any form whatever, would still be acknowledging the spoliation it was intended to compensate. One cannot accept a compensation without accepting the sacrifice; and this sacrifice, I say once more, the Holy Father has no right to make. As to the last question,' said the Cardinal, in concluding, I have nothing to add to the declarations I have already made to your Excellency's predecessor. These reforms are ready; they will be promulgated on the day the usurped provinces shall return to their legitimate authority, from which they have withdrawn."

In the month of October, M. Thouvenel resigned the office of Minister of Foreign Affairs, and was succeeded by M. Drouyn de Lhuys. The reason of this change was that M. Thouvenel wished a more decided and energetic line of action to be taken by the French Government on the Roman question, so as to force the Pope to adopt the line of policy indicated in the Emperor's letter, which we have already quoted, or, if not, to leave him to his fate by the withdrawal of French troops from Rome. This, however, was a stronger step than the Emperor was prepared to adopt, and he therefore parted with his Minister. He addressed to him the following complimentary letter dated, St. Cloud, October 15th.

"My dear M. Thouvenel,-In the very interests of the policy of conciliation which you have so honourably served (loyalement servie) I have been obliged to replace you in the Ministry of Foreign Affairs, but, in deciding to separate myself from a man who has given me so many proofs of his devotion I feel bound to say to him that my esteem and confidence have not undergone any alteration.

"I am convinced that in any position you may occupy I may count upon your intelligence as well as, upon your attachment, and I beg of you, on your part, to believe always in my sincere friendship.

"NAPOLEON."

At the same time the Marquis de Lavalette resigned his post of Ambassador at the Papal Court, and was replaced by the Prince de la Tour d'Auvergne, who

had been French Ambassador at Berlin.

M. Drouyn de Lhuys, the new Minister of Foreign Affairs, addressed a circular to the diplomatic agents of the French Government abroad, in which he said:

"In taking possession of the post to which the Emperor has deigned to call me, I think it advisable to tell you in a few words in what spirit I have accepted the mission entrusted to me. It would be needless for me to retrace again with you the former acts and measures of the Imperial Government in the Roman question. His Majesty has, however, more distinctly stated his own views in a letter addressed to my predecessor, published in the Moniteur of the 25th of September last. That document explains the views of the Emperor in a manner which no comment can affect, and I cannot do better now than to refer to it. In all the phases through which the question has passed during the last thirteen years, it has been the constant desire of His Majesty to conciliate all interests concerned, and the more complicated they became the more the Emperor has endeavoured that his Government should remove all difficulties, without, however, sacrificing in any manner the principles which have always served as a permanent guide to his resolutions.

The policy defined with so high and so impartial a reason has not changed. It remains animated by the same sentiments as in the past for two causes, to which it has in an equal measure given proofs of its solicitude. The Roman question touches upon the highest interests of religion and politics; it engenders on every point of the globe scruples most deserving of respect, and, in the examination of the difficulties which surround it, the Government of the Emperor looks upon it as its first duty not to do anything that might resemble hastiness (entraînement), or to deviate from the line of policy it has adopted."

In the same month M. Achille Fould, the Minister of Finance, addressed a report to the Emperor on the general state of the French Exchequer, in which he showed that the conversion of the Four-and-a-Half per Cent. Rentes had produced to the Treasury the sum of 157,631,289ƒ. He summed up the result of the financial operations of the year by stating that "the amount of former deficits in 1862 had been reduced 157,000,000f.," and the Budget of 1862 would not show any deficit, but the year 1863 would commence with a reserve which might be estimated at 80,000,000ƒ." to provide for un. foreseen eventualities."

CHAPTER IX.

ITALY - Resignation of the Ricasoli Ministry-Signor Ratazzi forms a new Cabinet-Programme of the Policy of the Ministry-Speech of Baron Ricasoli-Foolish Enterprise of Garibaldi-His Revolutionary Address to the Hungarians-Answer of Klapka-Garibaldi in Sicily -Proclamation by the King-Garibaldi Crosses over to the Mainland -Affair of Aspromonte-Letter of Garibaldi, giving his version of the Encounter-Decree of Amnesty-Change of Ministry-Signor Farini forms a new Cabinet-His Speech in the Chambers. GREECE Insurrection at Nauplia-Address of the King to the ArmyArgos surrendered to the Royal Troops-Nauplia invested and blockaded-Proclamations of the King-Manifesto of the InsurgentsSurrender of Nauplia, and End of the Insurrection—Outbreak of a General Revolution in October-Proclamation by the Provisional Government at Athens-The King and Queen leave Greece-Decree calling upon the people to Elect a King by Universal Suffrage-Prince Alfred of England chosen King of Greece-The British Government refuses its Sanction to the Election-Question of the Cession of the Ionian Islands.

PORTUGAL-Dom Luis I. proclaimed King of Portugal-His Speech to the Chambers.

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Finance, Signor Sella; Public Works, Signor Depretis; Agriculture and Commerce, Marquis Pepoli; Instruction, Signor Mancini; Army, Signor Pelitti; Marine, Admiral Persano; Justice, Signor Cordova; Without Portfolio, Signor Poggi.

A change, however, soon afterwards took place in the Cabinet, and Signori Cordova, Mancini, and Poggi resigned. General Durand was appointed Minister of Foreign Affairs, and Signor Matteucci Minister of Public Instruction, while Signor Ratazzi himself took, ad interim, the office of Minister of

Justice, which was afterwards bestowed on Signor Conforti.

On the 7th of March, the new Premier made a long speech, in which he unfolded the policy he intended to pursue. It was in

substance as follows:

As regarded foreign Powers, Italy could not, he said, doom herself to isolation. She must rely on alliances, and her natural allies were, in the first place, France, who had shed her blood, and England, who had given the aid of her moral support, and had first recognized the new State. Alliance, however, must not be obtained at the price of national dignity and independence. It will also be the object of the Government to endeavour to obtain the good-will of those powers which as yet keep aloof from Italy and refuse to acknowledge the new kingdom. The new Ministry will be faithful to that vote of Parliament which declared Rome to be the capital of Italy. They would go to Rome by moral and diplomatic means, always hand in hand with France. The notion that the temporal power was rather a stumbling-block than a help to the Papacy had been gaining ground in the Cathoiic world, and in France especially, as might be seen from the improved tone of the late debates on the subject in both French Houses.

In matters connected with home policy, Signor Ratazzi promised to lean equally on men of all parties,-on all men, that is, who agreed on the principle of Italian unity and independence under the dynasty of Victor Emmanuel. Place and preferment should be dealt out impartially, without provincial distinction,

Government would combine political unity with administrative decentralization. They would write "economy" on their banner, and would curtail expenses with the greatest diligence; they would vie with the Chamber in reducing the Budget of 1862 to the lowest possible figure, and present the estimates of 1863 upon the same thrifty and rigidly saving plan. They would carry on the discussion of the financial Bills already before the House, and set the public treasury in order. The only extravagance they would allow themselves would be for the benefit of the national armament. There would be no stint for the army; none for the navy; which was to be organized on a totally new plan. Public works and instruction would be carried on with the greatest activity where the need was most sorely felt-in the Southern Provinces and the Island of Sardinia. He promised also "the prompt, immediate, and real execution of the Bills and Resolutions already gone through Parliament respecting the national armament." This referred chiefly to the Garibaldi law, the purpose of which was to organize and arm 230 battalions of mobilized National Guards, under the orders mainly of those Garibaldian officers who composed the three divisions of the so-called "Volunteer or Southern Army."

The chief interest of the discussion that ensued was centred in a speech of Baron Ricasoli, who explained the cause of the resignation of himself and his colleagues. He said that their retirement was not, as had been asserted, owing to any dissensions in the Cabinet. Twice only had there been divergence of

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