AUSTRO-HUNGARIAN MONARCHY. 



65 



departments of the public service, been arranged, and 



in i. xjKvt to tliis I nave ordered the Hubmiwrion of ap- 

 propriate proposals. The covering of thedi-fi,-it whi.-li 

 the next budget may show should bo effect I without 

 i-all'm r iip'-n ill,- >tn'u- credit, and without injuring the 

 productive power by increaMng the revenue. Theao 



ils will form the subject of your earnest con- 

 Md.-r:iti"ii because the contemplated reform in ret, r- 

 cin-e to direct tanttoo undertaken in previous sessions 

 has not been carried out My Government will sub- 

 mit M i- w proposals, making use of previous juvpuni- 

 tory researches, and 1 hope thut the Keichsratn will ut 



-.-ced in bringing about the improvements so 

 pressing in our system of taxation in the interests of 

 a more just division of the burdens. 



A conference of the Constitutional members 

 of the Upper House was held on October 1st, 

 inuK-r the presidency of Ilerr von Schmerling, 

 and a party club was formally constituted for 

 tlu- first time since the creation of the Upper 

 House. The programme adopted by the con- 

 ference was as follows : Inviolable adhesion to 

 the fundamental laws of the state, especially 

 those concerning the competency of national 

 representatives; opposition to every attempt 

 at diminishing the rights of the Reichsrath, to 

 the profit of the separate provinces of the 

 Crown. One of the first signatures attached 

 to the programme was that of Cardinal Kutsch- 

 ker. 



The Lower House organized by the election 

 as President of Count Ooronini, a Constitution- 

 alist, and as Vice-Presidents of Dr. Smolka, a 

 Pole, and Baron Goedel Launay. On the 27th 

 the reply to the address from the Throne was 

 voted by the Lower House, after a short de- 

 bate. It was on the whole friendly to the 

 Government. On the 28th the Minister of 

 Finance presented the estimates for 1880. The 

 balance closed with a deficit for 1879 of 12,- 

 000,000 florins. This deficit it was proposed 

 to cover without having recourse to any new 

 credit ; and for this purpose the Government 

 proposed several alterations in the stamps and 

 special taxes, from which the total increase of 

 revenue expected was 5,800,000 florins ; to im- 

 pose a tax on the consumption of home min- 

 eral oils and increase the customs duties on 

 petroleum from 3 to 8 florins, thereby provid- 

 ing an addition to the revenue of 4,800,000 

 florins ; to increase the duty on brandy so as 

 to realize an additional revenue of 1,500,000 

 florins; and, as temporary measures for 1880 

 only, to lay a tax of 10 per cent, upon passen- 

 ger traffic on railroads and steamers, and a sup- 

 plementary tax on all incomes exceeding 1,400 

 florins, which were estimated to yield 4,000,- 

 000 florins. The financial statement concluded 

 by saying that reductions in the expense of ad- 

 ministration, a thorough reform in the system 

 of taxation, the introduction of a general in- 

 come-tax, and the taxation of joint-stock com- 

 panies, would firmly secure a financial equi- 

 librium in the future. 



The Delegations met in Pesth on February 

 27th. The budget was presented by the Gov- 

 ernment and referred to the Budget Commit- 

 tees. On March 4th the Budget Committee of 

 VOL. xix. 5 A 



the Austrian Delegation, after a long debate, 

 resolved, on motion of llerr Storm, to give an 

 ulterior sanction to the expenditure of 41,720,- 

 000 florins in excess of the grant of 60,000,000 

 florins, with the reservation of a final decision 

 being arrived at when the accounts were closed 

 and the results made known. At the same 

 time it was resolved not to approve the addi- 

 tional 5,000,000 florins asked for by the Gov- 

 ernment for expenses in November and Decem- 

 ber, 1878. The chief argument urged against 

 granting the credit demanded was that a large 

 sum had already been spent on barracks, roads, 

 and railways, and that in the estimates for 

 1879 8,000,000 florins were set down for such 

 purposes, which are investments in the prov- 

 inces which the Delegations had no right to 

 accord. By way of rejoinder, the Minister of 

 War pointed out that all the works under- 

 taken had been determined by purely military 

 considerations, and that the saving they would 

 effect in the cost of transport would in a com- 

 paratively short time compensate for the mon- 

 ey expended on them. After a similar vote in 

 the Committee of the Hungarian Delegation, 

 the Delegations themselves approved the bud- 

 get and then adjourned. 



In August Count Andrassy resigned his po- 

 sition as Prime Minister of the Common Min- 

 istry. Previous to the departure of the Emper- 

 or to Ischl in the beginning of August, he had 

 an audience with him. The latter hesitated to 

 comply with Count Andrassy's desire for re- 

 tirement, and a leave of absence sufficiently 

 long to enable the Minister to recover from 

 the fatigues of office, which had somewhat 

 shaken his health, was at first thought of. 

 The Count, on the other hand, was not dis- 

 posed to bear the responsibility of the policy 

 of the Government so long as he did not per- 

 sonally direct it. He accordingly renewed his 

 petition on the first opportunity at Ischl, when 

 the Emperor at last granted his request, reserv- 

 ing his formal acceptance of Count Andrassy's 

 resignation to the time when he should have 

 decided on his successor. It was stated offi- 

 cially at the time that the Minister's resigna- 

 tion was entirely spontaneous on his part, and 

 only accorded to his most ardent desire, and 

 that no question of foreign or home policy had 

 brought it about. The change in the Govern- 

 ment was completed on October 9th. On that 

 day the "Official Gazette" contained the Im- 

 perial letter relieving Count Andrassy of his 

 functions, and also one nominating Baron Hay- 

 merle Minister of the Imperial House and of 

 Foreign Affairs, and intrusting him with the 

 Presidency of the Common Ministry. (For a 

 biography of the new Minister, see H ATMKRLE.) 

 The letter addressed to Count Andrassy says : 



your 



of my 



this as a proof of the high value that I set on the prea- 



ervation of your health. You have for years, during 



one of the most eventful and memorable periods, and 



under heavy responsibility, borne the charge with 



