HUNGARY. 



wires, in January, 1875, was 48,167 ; of tele- 

 graph-lines, 14,333 kilometres. The number 

 of telegraph-stations was 837. 



The most important events in Hungary dur- 

 ing the year related to the negotiations for 

 the renewal of the " Ausgleich," or compact 

 with Austria, which, in some shape or another, 

 claimed attention during the whole year, and 

 to the discussions concerning the attitude of 

 the country toward the insurrectionary move- 

 ments in the Herzegovina and Servia. The 

 "Ausgleich" is a treaty or common constitu- 

 tion defining the relations of the Austrian Em- 

 pire and the kingdom of Hungary. It formed 

 a part of the plan of adjustment by which the 

 claims of the two states were brought into 

 harmony, and Hungary obtained autonomy as 

 to her own affairs, while she recognized the 

 Emperor of Austria as her King, and accepted 

 the same laws in matters common to both 

 states. It embraces political provisions, re- 

 specting the common affairs of the countries, 

 the method of their treatment in the delegated 

 bodies, and concerning the direction of the 

 common jurisdiction ; financial and commercial 

 clauses, concerning the adjustment of the pro- 

 portion which each division of the state should 

 pay toward the common expenses ; the regula- 

 tion of customs and trade; and provisions 

 relative to the common defense. This com- 

 pact was first concluded in 1867, to last for a 

 period of ten years. In anticipation of its ex- 

 piration in 1877, the cabinets of the two states 

 began, before the close of the year 1875, to 

 make preparations for renewing it. Hungary 

 had made new demands in the renewal of the 

 treaty for changes in the financial clauses, and 

 had formed a project for the establishment of 

 an independent national bank in Hungary, 

 whose notes should be held as equal in all re- 

 spects to those of the Austrian bank. On the 

 2d of January the cis-Leithan ministers went 

 to Pesth to consult with the Hungarian min- 

 istry respecting the renewal of the treaty. 

 They were there presented by the Hungarian 

 Minister of Commerce, Simonyi, with the pro- 

 ject which had been adopted by the Hungarian 

 Ministerial Council on the 30th of December. 

 At the end of March the Hungarian ministers 

 visited Vienna, where the subjects which had 

 been considered in the conference of January, 

 at Pesth, were again discussed in the presence 

 of the Emperor. The negotiations proceeded 

 harmoniously, with every prospect of a speedy 

 satisfactory adjustment, till about the 18th or 

 20th of April. On the 18th the directors of 

 the bank in Vienna held a meeting for the dis- 

 cussion of the Hungarian project for a bank, 

 the result of which was a decision to oppose 

 the proposition. On the 22d of April Minister- 

 President Tisza, having returned to Pesth, in- 

 formed the delegation of Liberal members of 

 the Diet that he had told the King that he 

 neither could accept, nor advise the Parliament 

 to accept, the compromise under the condi- 

 tions which he had found to be the ones ac- 



ceptable to the Austrian Government. On the 

 24th the Hungarian Ministerial Council ap- 

 proved a declaration that the Austrian propo- 

 sitions could only afford the basis for future 

 negotiations ; if the Hungarian demand, now 

 reduced to a minimum, could not be granted, 

 the cabinet would retire from office. By the 

 influence of Count Andrassy, who saw the ne- 

 cessity, in view of the pending difficulties in 

 the East, of securing harmony in the empire, 

 and who declared that if Tisza and his col- 

 leagues went out of office he would also resign, 

 another conference was held, and an adjust- 

 ment was made on the 2d of May, by which the 

 compact was renewed in all its important points 

 for ten years longer. The proportion which 

 each country should contribute to common ex- 

 penses was settled to remain as before. The 

 question respecting the consumption tax was 

 left as it was ; on the question of the customs 

 duties, Austria made a concession in the matter 

 of an indemnification for repaid indirect taxes 

 in case of export, amounting to about one and 

 a half million of florins annually in favor of 

 Hungary. The demand of Hungary for an in- 

 dependent bank was not granted, and the unity 

 of the bank of issue and of the standard of 

 valuation was adhered to. Whether a part of 

 the metallic reserve should go to Pesth was 

 left to be decided in the negotiations of Hun- 

 gary with the national bank for the prolonga- 

 tion of the privilege, which it was expected 

 would be completed during the year. 



The result of the negotiations was not sat- 

 isfactory to the Hungarians, and Tisza was 

 obliged to defend his course to his friends. 

 He said, in a conference of his party, May 6th, 

 that it had been a question whether they 

 should reject what they could obtain and ex- 

 pose the land to all the consequences of such 

 an act, or should accept the compact and de- 

 fend themselves before the Diet. The latter 

 course had been adopted : first, because, all 

 things considered, the compact contained a 

 not unimportant advance upon the present 

 conditions; and, second, because, more than 

 any other country, Hungary needed peace, and 

 it was the present duty of the Government to 

 see that the whole power of the monarchy, 

 unimpaired by division, be exerted for peace. 

 The Liberal deputy Jokay also advised his 

 friend to accept the compromise, because no 

 better adjustment could be reached. The posi- 

 tion and action of the ministers were sustained 

 by the House of Deputies, May llth. Never- 

 theless, about seventy members of the major- 

 ity, who were not present at the sitting of the 

 House, dissented, and endeavored to form a 

 party in opposition to the course of the min- 

 istry. Negotiations relating to the further 

 solution of the question of the bank were con- 

 tinued till near the close of the year, the Hun- 

 garians continuing to press their demand for 

 the reorganization of the national bank in a 

 dual shape. In the mean time three fractions 

 of the Constitutional party in the Austrian 



