diverted from the production of lustre and demi-yarns. We hope that this process will continue, and that our spinners will keep their eyes open to discover any new source whence the wool wanted by the trade is to be procured. It is not the first time that we have called attention to the ever-growing consumption of Buenos Ayres wools on the Continent, the absence of which among our supplies may explain the prices by which the French competitors are able to undersell us in some articles. We find that France took during the first ten months of the year a million kilogrammes less of wool from and through England, and seven million kilogrammes more by direct importation from the Argentine Republic."

On the subject of the general distress, the following letter, which appeared in the Daily News, is also worth the quoting:

"In all parts of the country there is being felt the pressure of hard times. Yet there appears to be very inadequate attention paid to one of the main causes, namely, the exceedingly great degree in which our nation is handicapped' in its commercial race and competition with other countries. If your readers will refer to a little Blue-Book annually published, entitled the 'Statistical Abstract of the United Kingdom,' they will find, to the astonishment of many of them, that the weight of our handicap' is about 130 millions sterling per annum. That is to say, about 85 millions for Imperial taxation (army, navy, national debt, pensions, civil list, &c.), and 44 millions for local taxation (local boards, highways, police, education, poor rates, &c). What nation can successfully 'run' under this tremendous burden? Its increase as of late years, or even its continuance as at present, must gradually inscribe on the runner the ominous words 'Ichabod.' Under it even Great Britain must fall behind in the race of nations, unless her people and statesmen, but primarily the former, devise effectual means for reducing this huge weight. And how insignificant, to us, are the affairs of Turks, Afghans, Russians, and 'hoc genus omne' in comparison with this vast home interest. The population of this kingdom being 33 millions, this weight of 130 millions sterling amounts to 4l. for every man, woman, and child, or 201. per family of five throughout the country. This is an unimportant sum for the upper and middle classes, but, as an entire national average, 201. per home is a tremendous annual burden. And how much of the nation's wealth does it consume? Firstly, the Imperial taxation absorbs an amount equal to all the following, viz., to total imports, so far as they are retained for home consumption, of wheat, 34,000,000l. sterling; barley, 5,000,000l.; Indian corn 10,000,000l.; rice, 3,000,000l.; sugar, 26,000,000l.; coffee, 3,000,000l.; and raisins, 1,000,000l. The whole of these products of primary need, as imported and retained for the people of the United Kingdom, amount, in value, to 81,000,000l. But our present Imperial expenditure actually exceeds all this! Add to this our local taxation, which exactly equals the combined sum of our large import of wool (15,000,000l.

for home use) and the net profits on all the English, Scotch, Irish, and Welsh railways (29,000,000l. per annum), making 44,000,000l., besides the Imperial taxation. How can our manufacturers, merchants, farmers, and working men pay, directly or indirectly, such enormous sums, and at the same time compete successfully with nations like the United States, which are comparatively free from similar expenditure? The real remedy is neither for the manufacturer to lessen production, nor for the working man to ask less wages, but for all to combine in compelling legislators of both parties (for both are concerned) to find means of cutting down this huge imposition. It will bear cutting down, for much of it is for extravagant and worse than useless war expenditure. It is the interest of certain powerful classes to set the millions gaping eastward and spending large resources and money on mere outlandish matters. But it is high time to look at home. All other political interests are inferior in importance to this great question. It should be the question at the next general election, and should be taken up in a patriotic spirit by men of all parties. But unless the constituencies enter upon it in earnest and act resolutely upon it at every election, they may be certain that their legislators will help them in the matter as little as heretofore. Yet it is as certain that if the nation, as a body, looks into the subject it will be impressed with its magnitude and importance and will take steps towards effectual relief."

Turning at the end of our record to India and the Colonies, we find that the disquietude, real or factitious, which preceded the Afghan war, was in our greatest dependency naturally great. "The shock of the Russo-Turkish struggle," said the Times, "was felt throughout our Indian dominions. The natives showed an ominous restlessness. Distorted notions of what was happening in European politics prevailed, and the distant form of Russia loomed vague and large upon the Oriental imagination. The financial policy of Sir John Strachey, which had imposed new taxes with the object of accumulating a famine insurance fund, was assailed with unusual violence. There were many signs of a belief that England had met with a check, and was, consequently, in a position to be forced into concessions. The seditious and libellous language of a part of the native press provoked the Viceroy early in the spring to pass with remarkable rapidity, as an urgent measure, an act which subjected Indian newspapers to a severe censorship. The policy of this step was severely criticised in the Imperial Parliament by Mr. Gladstone and others, but was not reversed. Another symptom of the same nervous and suspicious frame of mind was visible in the alarm excited by rumours of the growing military strength of the Nizam, Scindiah, Holkar, and others of our feudatories. That the Government was not wholly indifferent to these rumours may be inferred from the enactment of a statute, also passed with urgency,' strictly regulating the importation and possession of arms. The explana

tion of all this disquietude was afterwards made clear. The foreign relations of India beyond the north-west frontier had been troubled by Russian pressure in Afghanistan." We give this explanation as it was given: whether it was made as clear to others as the Times, that Russian pressure, and not English imperialism, was the cause of disquiet we must be allowed to doubt. "The European crisis, meanwhile "-and on this point there can only be a glad accord between us-"drew from our colonial fellow-subjects in every part of the world expressions of sympathy with the mother country and even offers of material aid. In Canada, where Lord Dufferin had encouraged the growth of a high spirit of Imperial pride, these proofs of loyalty were most conspicuous. They were the most remarkable because the Dominion. was at the time on the eve of a pitched battle between domestic parties, which in September resulted in the defeat of the Mackenzie Ministry and the return of a large Parliamentary majority in support of Sir John A. Macdonald and his policy of protection to native industry. Before the change of Ministry rendered necessary by the elections took place it had been announced that the Marquis of Lorne was selected as Lord Dufferin's successor in the Governor-Generalship. The Canadians, though they regretted the departure of the latter, were well pleased at the prospect of having one of the Queen's daughters at the head of their colonial society. The reception of the Governor-General and the Princess displayed an abounding enthusiasm, and the appointment seems to have drawn the Dominion closer to the mother country. In South Africa the prospect is less satisfactory. At the beginning of the year it was supposed that the Galeka rising in Caffraria had been. suppressed; but the Gaikas rose immediately afterwards, and other troubles broke out, which prolonged the border warfare for many months. Sir Bartle Frere's energetic policy was hampered by his Ministry, who claimed an independent control of the war that could not be granted consistently with the public safety. They were accordingly dismissed, and a new Cabinet was formed, which, with the aid of the Imperial troops, had restored tranquillity in Caffraria by the end of July. But the services of the troops were found to be at once and urgently required in Natal and the Transvaal, where the Zulu King had for some time been threatening hostilities, and where one of his vassals was actually defying the British rule in arms. Lord Chelmsford, who was in command of the Queen's forces, found the situation so serious that he called for reinforcements from home. These have now been despatched, but as the year closes it is not known whether peace with the Zulus will be preserved or not, or whether our forces in South Africa are strong enough to control all the elements of disorder. In Australasia there has been material progress, and most of the colonies have been applying for loans; but the prevalent distrust in the money market at home has not been favourable to such demands, while the political turmoil in Victoria has unfairly

prejudiced other and steadier communities. Another Victorian 'dead-lock' was causing embarrassment early in the year; the Legislative Council had rejected the Appropriation Bill, and Mr. Berry's Ministry, supported by the Assembly, had dismissed important classes of officials with a view to coercing or punishing the opposite party. A compromise was afterwards arranged, but during the autumn discussions upon schemes of constitutional amendment have led to other conflicts between the Legislative Chambers. At the present moment a truce is maintained, while both parties are preparing to invoke the intervention of the Imperial Parliament."

As we transcribe these words, the allusion to South Africa has assumed a painful importance. First-it would so far seemthe Governor-General of India, and then our representative in South Africa, caught the infection of "Imperialism." For an explanation of that word we must refer to Lord Carnarvon's speech; for its appropriateness to the policy of Lord Beaconsfield, to Lord Salisbury himself. It is the part of honest conviction to change its opinions upon evidence; and we hope to be able to change ours; but from the story of the past year as we are able to understand it from the acts and arguments of either side, we can only now believe that History will record its final judgment on the whole policy of the day-retrograde as it appears to us in the worst sense, all questions of political creed apart-by every primary rule of Right and Honour, in the language of stern and scornful condemnation.

FOREIGN HISTORY.

CHAPTER I.

FRANCE.

The Position of France-The Revue des Deux Mondes.-The Limoges Incident--Municipal Elections-The Chambers Press Amnesty Bill-Republican Successes-M. Gambetta at Belleville-Scene in the Chamber-State of Siege Bill-State Purchase of Railways-Other Bills and New Elections-The Journal des Débats on the Treaty of San Stefano-Opening of the Exhibition -Voltaire Centenary-The Concordat of 1801-Reactionaries in the SenateM. Waddington on the Congress of Berlin-Great Review-Funeral of the King of Hanover-Hoche Banquet-Trial of the Marquis d'Allen-Fêtes of the 30th June-Further Elections-Rousseau Centenary-The Treaty of Berlin and Anglo-Turkish Convention-M. de Freycinet's Railway Scheme-M. de Marcére-M. Paul de Cassagnac-Thiers' Funeral Service-Harbour Fêtes at Boulogne-M. Gambetta in the South-His speech at Romans--The Habeneck Incident-Proposed Socialist Congress-Clerical Replies to M. Gambetta-Senatorial Elections Fixed-Death of Mgr. Dupanloup--Egyptian Affairs-Closing of the Exhibition-Meeting of the Chambers-Election Enquiries-Duel between MM. Gambetta and de Fourtou-M. Waddington on French Foreign Policy-Last Difficulty in the Chamber--M. Gambetta on the Situation- Great Free-Trade Demonstration.

WE take up the thread of the French story where it was left last year, the peaceful victory of the Republicans complete, and the Senate alone preserving a certain Conservative majority until the new elections, anticipated on all sides with eager interest. Very different from the history which we have to record at home, is the quiet and prosperous record of the country which for so many years seemed the permanent cause of European disturbance. England and France appear for the time to have changed places in turbulence and unquietness on questions of foreign politics, and in honest domestic work at home, with the blessing which rests upon it. At the Berlin Congress France had the high opportunity of playing the part of mediator without any personal self-seeking; and she played it well. Writing in the Revue des Deux Mondes, some months afterwards, M. Charles de Mazade could say: "She is assuredly the first of peaceful powers: she has made impartial neutrality her law, limiting her own demands to the respect of her most elementary interests. No, indeed: France is no longer the universal troubler of the feast,' as her worst enemies must admit; she threatens nobody with her whims of predominance or with her excitabilities." "We fail to see, though," adds the writer in a passage well worth quoting, "that Europe is the better for it.

S