HUNGARY. 



387 



House of Deputies had combined to resist the 

 rat ill cation and execution of the compact. The 

 directors of the national bank gave unfavor- 

 able answers to the propositions made to them 

 by the Hungarian ministry, and refused to con- 

 sider the question of a dual bank. A new diffi- 

 culty had also arisen with reference to the ad- 

 just mont of the debt of eighty millions owed by 

 the state to the bank. The Austrians claimed 

 tli it Hungary should be charged with a propor- 

 tion of the debt, while the Hungarians refused 

 to acknowledge the obligation. The Austrian 

 ministry were placed in an embarrassing posi- 

 tion, since on one side they had pledged them- 

 selves to their Hungarian colleagues to support 

 the compact, and on the other hand they 

 could not afford to break with their party at 

 home. With a view to effect another compro- 

 mise, corresponding to the demands of the 

 Austrian Constitutional party, they visited 



Perth, December 8d, to ask that certain 

 "technical modifications" might be rnudu in 

 the compact. The Hungarian rniiiihtcrn ad- 

 hered firmly to their position, and refused to 

 recede one step from the stipulations which 

 had been made in May. In consequence of 

 this condition of affairs, both the Austrian and 

 Hungarian ministers sent in their resignations. 

 At the close of the year the Emperor had not 

 accepted the resignations, and was seeking 

 means to adjust the difficulty. 



The situation of Hungary, with its borders 

 touching those of the European provinces of 

 Turkey, causes it to take a peculiar interest in 

 all questions and movements connected with 

 those provinces. Consequently the discussions 

 concerning the Eastern question, which filled 

 so large a place in the history of all European 

 countries during the year, were watched by 

 the Hungarian Parliament and people with 



BUDA, HUNGARY. 



great interest, and the ministers were often 

 questioned on the subject. In February the 

 matter of the payment of 100,000 florins, 

 spent for the subsistence of Bosnian refu- 

 gees in Hungary, formed one of the items of 

 the account for common expenditures to be 

 settled between the finance ministers of the 

 two parts of the empire On the llth of 

 March Minister-President Tisza declared in the 

 Chamber of Deputies that in case Servia joined 

 the insurrection against Turkey, the accord 

 of the powers would not be disturbed, and 

 Hungary would act only as its own interests 

 should direct. On the 18th of May the dele- 

 gations of the two states met at Pesth, to ad- 

 just the budget, and at the same time a con- 

 ference was held with Andrassy upon the 

 Turkish question. On the 14th of June Tisza 

 replied iu the Chamber of Deputies to an inter- 



pellation by Franzi, respecting the situation in 

 Constantinople, that the aim of the Hungarian 

 Government was to preserve peace, and avoid, 

 at all events, whatever would involve the em- 

 pire in embarrassment. On the 4th of July a 

 decree was published in the Hungarian official 

 paper by the Minister of the Interior, admon- 

 ishing the magistrates that they would be held 

 responsible for repression and punishment, 

 according to the law, of all movements against 

 the peace of Austria with the Porte. Many 

 arrests and seizures of arms were made ; the 

 frontier guards were strengthened, and moni- 

 tors were stationed at Semlin. On the 6th of 

 July Count Andrnssy held a conference with 

 the Hungarian ministers, at which a clear un- 

 derstanding and full accord were reached with 

 reference to Eastern politics. During this 

 month (July) the deputy Miletics was arrested 



