and respected; by inviting the Dukes of Modena and Parma to give to their people institutions similar to those existing in Piedmont; by requiring that the Grand-duke of Tuscany should re-establish the constitution to which he freely consented in 1848; and by obtaining from the sovereign pontiff the administrative separation of the provinces beyond the Apennines.

The first note of war was sounded by Austria, and it almost immediately woke English sentiment on behalf of Italy. The wrongs inflicted by Austrian tyranny were remembered, and thenceforth every battle in which the aggressors were defeated was hailed with satisfaction by the friends of freedom in this country.

On the 23d of April the aide-de-camp of the Austrian general, Baron Kellersberg, arrived at Turin with a summons from the Austrian government, calling on Sardinia to disarm in three days, under the threat of immediate hostilities if she failed to comply. Three days afterwards Count Cavour sent a temperate but firm reply, referring to the attempts to avert hostilities by a congress, and maintaining the position of the King of Sardinia.

The next day Victor Emmanuel issued proclamations to his troops and to all Italians. The latter spoke of Austria refusing to listen to a European congress, and made known that France would fight side by side with Italy in the impending war. The English government recorded a solemn protest against the course taken by Austria, and declared the negotiations for a congress to be at an end. Count Walewski, the French foreign minister, made a statement to the Corps Legislatif detailing the whole particulars of the case between Austria and Sardinia, and declaring that, in the event of the invasion of the territory, France would not hesitate to respond to the appeal of her ally.

On the following day (April 27th) the Emperor of Austria declared to his army in Lombardy that war had commenced, and ordered them to enter Sardinia. On the 3d of May the Emperor of the French announced that the cause of Sardinia and of Italy would be

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taken up by France against a power which violated treaties and justice; that Austria had brought affairs to such an issue that she must be free to the shores of the Adriatic. He proclaimed that he should place himself at the head of the French army, and appointed the empress as regent in his absence, "seconded by the experience and the enlightenment of the last surviving brother of the emperor." He "confided her and his son to the army left in France to watch the frontiers and protect the homes, and to the entire people who would surround them with the affection and devotion of which he himself daily received so many proofs." An imperial decree appeared in the Moniteur confirming these arrangements. The empress was to preside at the privy-council and the council of ministers, and to take the advice of Prince Jerome Napoleon, the uncle of the emperor, who was to preside at the council of ministers in her absence. The emperor quitted Paris on the 10th of May, and was in Genoa on the 12th with the army, to whom he at once issued an order of the day, exhorting and reminding them of the part they were to take in the conflict.

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The Sardinian army had altered its position several times because of the movements made by the Austrians, who seem to have been undecided as to the strategic position they meant to assume. The first, second, and third corps of the French army had, by the 16th of May, occupied positions which gave the allies the command of the whole line of the Po. shal Baraguay d'Hilliers, General MacMahon, and General Niel commanded the French divisions, General Forey was at the head of the division which formed their vanguard ou the extreme right, opposite to which the Austrians, in strong force, occupied the road to Pavia, behind Casteggio.

On the 20th of May the Austrian general, anxious to ascertain the strength of the enemy on his left, ordered Count Stadion to make a reconnaissance on the right bank of the Po with a considerable force, which crossed the river and took Casteggio and Montebello, at that time occupied by the Piedmontese troops. They then pushed on in two columns, but were

Italy, assuming that Lombardy would be added to his dominions, issued proclamations, and appointed a governor of the territory. The emperor also issued a proclamation to the inhabitants of Lombardy explaining his alliance, and urging the people to join the standard of the king.

Having evacuated Milan, the Austrians had assembled in great force at Malegnano, halfway between Milan and Lodi, intending to hold that position while their main army retreated across the Adda. This the French were determined to prevent, and on the 8th of June three divisions of the 1st corps, under Baraguay d'Hilliers, engaged them, and, after a tremendous struggle, which ended in severe street-fighting, drove them out with serious loss. The Austrian army then retreated across the plains of Lombardy, on the line of the Mincio, in three main columns. By the 11th of June the whole army had crossed the Adda, blowing up the bridges after them, and destroying the works at Piacenza and Pavia as they were evacuated by their garrisons. Lodi and Pizzighettone were also destroyed, so that the fortresses built to overawe Italy were shattered by their constructors. Not till they reached the Mincio and were within the lines of the famous "Quadrilateral" did they attempt to make a stand, protected by its four fortresses of Peschiera, Verona, Legnano, and Mantua. They were followed by the allied armies across the plains of Lombardy, and before it could be conjectured what course they would take they recrossed the Mincio and assumed an offensive position. A reconnaissance pushed forward by the French met their advanced posts near the village of Solferino, and an aëronaut who accompanied the army of the allies ascended in a balloon to explore the position. The enemy occupied the hilly country which there forms a kind of parallelogram, the angles of which are Sonato, Peschiera, Volta, and Castiglione. Their line extended for about twelve miles from Peschiera down into the plain of Mincio. The centre of it was Cavriana, which the Emperor of Austria had chosen as his headquarters. On the 24th, in the morning, the French were aware of their movements, and

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the emperor at once directed his attention to bringing together the various corps of the allied armies that they might support each other. He then repaired to the heights in the centre of the line of battle, where Marshal Baraguay d'Hilliers, who was too far from the Sardinian army to act in conjunction with it, was engaged in a severe conflict against superior numbers at the foot of the hill leading to Solferino, which was intrenched and defended by the enemy. The emperor ordered Forey's division to advance, and it was supported by a division of light infantry of the guard. With these there advanced the artillery of the guard, under the command of General de Sevelinges and General Lebœuf, which took up an uncovered position at about 300 yards from the enemy. This manœuvre decided the fate of the centre, and by a brilliant attack the divisions took the position, the Austrians retiring under the fire of the artillery, with a loss of 1500 prisoners and fourteen pieces of cannon. It then became necessary to attack the position at Cavriana behind Solferino, and this also was carried after a tremendous struggle, the horrors of which were increased by a violent thunderstorm.

The Austrians then fell back on the Mincio and occupied Verona, after burning the bridges in their retreat. On the 1st of August the allies had crossed the Mincio. While everybody was wondering what would be the next step, now that the Austrians had sought the shelter of the Quadrilateral, where it was believed they would be able to resist the combined forces of France and Sardinia, it was suddenly announced that an interview had taken place between the Emperors of France and Austria at Villafranca, and that the terms of a treaty of peace had been agreed on. The overtures which led to this came, in the first instance, from Napoleon III., who did not hesitate to assign as his reasons the necessity which he foresaw he would be under of "accepting a combat on the Rhine," if he pushed his successes further. He felt that the chances of a collision with the whole power of a German Confederation might be directed against him if he drove Austria to extremities, and

caused the other German states to rally round her from an instinct of self-preservation, and at the same time it was prudent to end the war before public feeling in France was again subject to a reaction.

An armistice was signed on the 8th of July, and was immediately followed by a treaty of peace, the conditions of which were these:

"The two sovereigns will favour the creation of an Italian Confederation.

"That Confederation shall be under the honorary presidency of the Holy Father.

"The Emperor of Austria cedes to the Emperor of the French his rights over Lombardy, with the exception of the fortresses of Mantua and Peschiera, so that the frontier of the Austrian possessions shall start from the extreme range of the fortress of Peschiera, and shall extend in a direct line along the Mincio as far as Grazio; thence to Scorzarolo and Luzana to the Po, whence the actual frontiers shall continue to form the limits of Austria. The Emperor of the French will hand over (remettra) the ceded territory to the King of Sardinia.

"Venetia shall form part of the Italian Confederation, though remaining under the crown of the Emperor of Austria.

"The Grand-duke of Tuscany and the Duke of Modena return to their states, granting a general amnesty.

"A full and complete amnesty is granted on both sides to persons compromised in the late events in the territories of the belligerent parties."

By a proclamation the Emperor Napoleon III. announced this treaty to his army. Plenipotentiaries were appointed, and though some delay took place, the agreement was regularly signed on the 11th of November, its terms being substantially in accordance with the clauses of the original treaty.

The emperor returned to Paris after the conclusion of the treaty at Villafranca, and on the 19th of July received the great bodies of the state at St. Cloud, where they presented him with congratulatory addresses-one from the senate, pronounced by its president, M. Troplong, and the other from the corps legislatif, by Count de Morny. Soon afterwards

the emperor wrote to the pope, seriously advising him to surrender the revolted provinces of the Romagna. The letter was couched in the most respectful and persuasive terms, reminding his holiness of all that the writer had done "for the Catholic religion and its august head;" but, at the same time, frankly recommending the cession of the revolted provinces for the sake of tranquillity.

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But it is time to turn again to the progress of events at home, where the change of government had given another aspect to domestic legislation, and where the years of conflict abroad had made the task of the chancellor of the exchequer more than usually arduous. But Mr. Gladstone was equal to the occasion. It was noticed that he had improved in appearance after his journey to the Ionian Islands. He seemed to be in more vigorous health, which added fire to his manner of speaking. His financial statement was complete and lucid as ever, and it was more concise than usual. Instead of being somewhat diffusive it was compact, but it dealt thoroughly with the state of affairs. A deficiency must be met, and the question was how best to meet it with the least possible pressure of taxation. Provision had to be made for a large addition to our naval and military establishments. was expected that while the revenue for the coming year would be £64,340,000, the expenditure would be £69,207,000. There would thus be a gross deficiency of £4,867,000 for the current year. The committee were therefore not to busy themselves with comprehensive plans of finance on that occasion. In the following year it would be necessary to enter upon larger views of our financial system, for then the income-tax would lapse, as well as certain war duties upon tea and sugar; on the other hand, the long annuities would fall in. How were they to raise the necessary funds to meet the present deficiency-by borrowing or by taxes? The sum required was a large one, but it ought never to drive the British Parliament to the expedient of augmenting the national debtwhich nothing but dire necessity should induce it to do. It appeared to him that a loan ought not to be resorted to. It would not be desir

able to increase the malt duty or the spirit duties. It would be impolitic to increase the duties of customs or excise. There consequently remained the income-tax, which had been originally introduced, first, to make reforms in our fiscal system, and secondly, to meet public exigencies, and when it was for the dignity, honour, and safety of the country that efforts should be made to augment the national defences, the income-tax was above all others a regular and legitimate resource. The system of nearly six months' credits which the government allowed to maltsters, thereby to that extent finding capital for them, was bad in principle, and might be so modified that six weeks of the credit could be taken away and four per cent discount allowed on the payment. This would bring £780,000 to the exchequer. The adopting of a penny stamp on bankers' cheques drawn across the counter would yield a further sum, and the deficiency of about £4,000,000 would be met by an addition to the income-tax. It now stood at the rate of 5d. in the pound, and an additional 4d. would yield something over £4,000,000. He proposed that this additional sum should be levied on incomes amounting to upwards of £150, but that incomes under that sum should pay only 1d. extra; and he also proposed that the augmented tax should be leviable upon the first half-yearly payment after the resolution should have been adopted by the house. This addition to the tax, added to the sum derived from the maltsters, would produce £5,120,000. Deducting the whole deficiency of the year, there would thus remain a surplus of £253,000.

Mr. Disraeli, after vindicating the financial scheme, and partially defending the foreign policy, of his own government, objected to the proposed plan of levying the income-tax, and urged that the income-tax itself should, like an army, be regarded as a means of support to be resorted to only in times of extremity. He maintained that the nation could not go on raising £70,000,000 annually, and concluded by demanding that France and England should mutually prove, with no hypocrisy, but by the unanswerable evidence of reduced armaments, that they really desired

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peace, and thus terminate "disastrous and wild expenditure."

Mr. Bright must have smiled at this declaration when he rose to denounce the incometax as odious and unjust beyond all others, and not to be defended as a permanent tax, though at the same time he acknowledged that in the emergency which had to be met, the budget of Mr. Gladstone was as satisfactory as it was possible for a very disagreeable thing to be. Why, he asked, was the income-tax odious? Because it was a tax upon property? No; but because it was unjustly levied. Why should not the farmers, for instance, pay as much on their incomes as other people did on theirs? Then there was the succession duty. Could anything be more unjust than that? There was a gentleman lately who had a landed estate worth £32,000 left him by a person who was no relative. Now if that had been left in money the duty would have been £3200, but being a landed estate the duty was only £700. Was that just? was it consistent with fairness? Was it consistent with our duty to society that we should take the class of property the most select, attracting towards it many social and practical advantages, having in it the most certain means of accumulation and improvement, and charge it only £700; whilst on another description of property that was not worth a bit more in the market we should charge £3200? Mr. Bright spoke with remarkable force on the subject of the financial policy which had constantly to take into consideration the maintenance of great armaments; but it was on the question of the proposed conference and the mutual relations of France and England that he spoke with equal or even more effectual emphasis. "If England is to go into the conference merely to put its name to documents which are of no advantage to Italy, which do not engage the sympathies of this nation, England had much better have nothing to do with it. But there is another course which I should like to recommend to the noble lord who now holds the seals of the foreign office. I cannot believe that Frenchmen, in matters of this nature, are so very different from ourselves as some people wish to teach us. I do believe that the thirty-six