have passed without a cloud. My noble friend has to-night, with prudence and perfect taste, avoided entering into the particular reasons that have induced him to take a step which on his part is so momentous, and which to the country must be of interest and importance. My Lords, I should he quite willing to refrain from entering into those topics myself until the period when they might be legitimately considered by your lordships; but I have learnt that so much public mischief may occur from unnecessary mystery in these matters that I feel it my duty to-day to say that in consequence of our belief that the Congress would not meet, for reasons which it is unnecessary now to touch upon-especially as my noble friend, with a becoming candour, has admitted that upon this subject there was no difference of opinion between him and his late colleagues-it became matter of consideration for her Majesty's Government, at a period like the present, when the balance of power in the Mediterranean is so disturbed, and when the hopes of rectifying that balance by the meeting of the Congress seemed altogether to cease, to decide what steps should be taken in order to countervail or resist the mischiefs which were impending. It is, therefore, in the interests of peace and for the due protection of the rights of her empire, that we have thought it our duty to advise her Majesty to avail herself of those powers which she has of calling on the Reserve Forces by calling for the service of those reserved forces. With that view a message will be laid before Parliament according to the provisions of the statutes in the case. My Lords, I feel it my duty to make this announcement; and when the occasion, which of course is near, occurs, your lordships will have the opportunity of considering the whole question of the policy and of the conduct of her Majesty's Government. That we shall not be supported on that occasion by the abilities of my noble friend who has been so long my coinpanion in public life, I deeply deplore. Those wrenches of feeling are among the most terrible trials of public life; but we may draw from them at least one noble and consolatory inference-that the sense of duty in our public men is so great that they can bear even these painful trials. My Lords, I have felt of late that the political ties between myself and my noble friend must soon terminate; but I believed they would terminate in a very different and a more natural manner-that I should disappear from the scene and that he should remain, in the maturity of manhood, with his great talents and experience, to take that leading part in public affairs for which he is so well qualified. We have lost his services. I personally, of all his colleagues, suffer most severely in that respect; but I am sustained by the feeling at the present moment that I am conscious and confident that the policy which we have recommended her Majesty to pursue is one which will tend to the maintenance of her Empire, to the freedom of Europe, and to the greatness and security of this country."

In the House and in the country this resignation caused a very

D

painful feeling, both from the loss, in itself deeply to be regretted, of the clearest head in the ministry, and the chief opponent of the War-party, and from the dread that there might be something behind the step now announced, of calling out the Reserves, which seriously threatened war. Mr. Gladstone, who had been reticent in Parliament (where a vote personally adverse to him, which reflected small credit on those who gave it, had been passed in reference to a painful discussion between him and Mr. Layard, who had charged him with fomenting rebellion in Greece, and had declined practical apology), spoke twice outside its doors at this time— once to the Greenwich "Five Hundred," to whom he had announced his intention of giving up at the next election his seat for their borough, and again to a deputation from Leeds, who brought him an invitation to become a candidate there. In both, he praised the Russo-Turkish War as one which had overthrown an evil Power: in both, he reprobated as he had reprobated in the House, the retrocession of Bessarabian territory as a retrogressive step which he hoped that Russia would reconsider, but one which would justify no Government in plunging the country into a guilty war; and in both, his voice gave out no uncertain sound, as indeed through the whole course of these stirring events none could deny either the force or consistency of his conduct, though its tenour exposed him more than once to personal attacks transgressing the limits of party-license. A mob-attack made upon his house in London might have been taken as a deeper sign of popular fickleness, if it could have been supposed to be the work of any but the roughest and lowest element of the town-populace.

CHAPTER II.

The Reserves-Changes in the Cabinet-Lord Salisbury's Circular-The BudgetMr. Fawcett on Indian Finance-Liberal Deputation-Answer of Prince Gortschakoff to the Circular-Debates on the Reserves Question-Adjournment of Parliament-Irish Scene-Movement of Native Indian Troops to Malta-Bye-Elections-Nonconformist Conference-Speeches of the Recess War Rumours-Strike in the North-Mission of Count Schouvaloff to St. Petersburg-Meeting of the Houses-Attacks on the Government-Debates upon the Legal Question-Lancashire Riots-Meeting of the Congress arranged-Foreign Opinion-Count Schouvaloff-Appointment of Lords Beaconsfield and Salisbury as Plenipotentiaries-Debates-The Standard upon the appointment-The Indian Troops at Malta.

LORD BEACONSFIELD brought down to the Lords a message from the Crown, stating that her Majesty in existing circumstances had thought right to call out the Reserve Forces for permanent service; and after the message had been read by the Lord Chancellor, some further papers relating to the Eastern Question were laid on the table by Lord Beaconsfield.

Thus ran the message:- "The present state of public affairs in the East, and the necessity in connection therewith of taking steps for the maintenance of peace and for the protection of the interests of the Empire, having constituted, in the opinion of her Majesty, a case of great emergency within the meaning of the Acts of Parliament in that behalf, her Majesty deems it proper to provide additional means for her military service; and therefore, in pursuance of those Acts, her Majesty has thought it right to communicate to the House of Commons that her Majesty is about to cause her reserve force and the Militia reserve force, or such part thereof as her Majesty shall think necessary, to be forthwith called out for permanent service."

Lord Grey then rose, and expressed a hope that when the Message should be taken into consideration some explanation would be given of the ultimate purpose contemplated in consequence of the delivery of the Message. The calling out of the Reserves was a very grave measure, and Parliament was entitled to know something more than was communicated by the Message before a proper judgment could be formed on the subject, and he trusted that when the Message came under consideration the Government would explain what were the changes in the Treaty of Peace which they thought it necessary to insist on even by force of arms, if necessary. It was impossible to examine the provisions of the Treaty of Peace without seeing that it virtually made Russia mistress of European Turkey. He presumed that it was also impossible to set up again the authority of the Porte in the European provinces of Turkey, but it would be difficult to say how a new authority was to be set up in those provinces.

Lord Redesdale thought that nothing was more likely to embarrass the Government in their negotiations than to call upon them at the present time to state what their intentions might be.

Lord Granville said that it would be more convenient to have a full discussion on the subject when the Queen's Message was taken into consideration; but from the correspondence already laid on the table he thought it was difficult to discover whether the English Government or the Russian Government were the more unwilling to join the Congress, and he considered that as the correspondence laid on the table contained but very meagre information, Parliament should be informed of the communications which had passed between the different Governments of Europe on the subject.

Lord Beaconsfield rose again, and said that as he understood there was a general desire expressed by the members of the House of Commons that the Budget should come on on April 4, he was ready to fix the consideration of the Queen's Message for April 8, so that it might be considered simultaneously in both Houses.

In the House of Commons, Sir Stafford Northcote introduced the Message, and in the course of a brief discussion to a similar effect, informed them that Lord Salisbury had succeeded Lord

Derby at the Foreign Office. Mr. Gathorne Hardy, afterwards translated to the Lords by the title of Lord Cranbrook, took the place of the new Foreign Secretary at the Indian helm, and the Premier gave a curious proof of diplomatic tact in persuading Lord Derby's brother, Frederick Stanley, to accept the Secretaryship for War, and preserve the Stanley traditions in his Cabinet. The new hand at the Foreign Office was soon felt, and all the literary skill gained in the field of journalism was to be found in a brilliant circular on the Eastern Question, now published by Lord Salisbury, as Foreign Secretary, in order to expound the views of her Majesty's Government on the Treaty of San Stefano, and to indicate the course which they might be expected to take in dealing with Russian claims. In this able State paper, addressed to our representatives at Foreign Courts, after reciting the correspondence, which led to the present obstacle in the way of the Congress, Lord Salisbury proceeded to observe that "the general nature of the Treaty and the combined effect of its stipulations upon the interests of the signatory Powers furnish another and a conclusive reason against the separate discussion of any one portion of these stipulations apart from the rest.” He then urged in detail various objections against the main stipulations of the treaty. He pointed out the injustice which would be inflicted by the mere creation of the new Bulgaria, and the establishment of Slav supremacy, on the other races inhabiting the Balkan Peninsula. He showed that this injustice would extend far beyond the limits of the new Bulgaria itself; and that, while its practical result would be to establish Russian supremacy in that principality, it would also increase the power of the Russian Empire in the countries and on the shores where a Greek population dominates, not only to the prejudice of that nation, but also of every country having interests in the east of the Mediterranean. He then showed that other results of the treaty, and in particular "the acquisition by Russia of the important harbour of Batoum," would "make the will of the Russian Government dominant over all the vicinity of the Black Sea." The Circular insisted much on the danger likely to result from Russia's "acquisition of the strongholds of Armenia; " declared that "the extensive European trade now passing from Trebizond to Persia" would be liable to be arrested at the will of Russia; enlarged on the inconvenience of having an indemnity chargeable on Turkey, which might be the excuse for further territorial cessions by way of liquidation; declared that the operation of the Treaty "as a whole," would be most dangerous in weakening the guardian of the Straits; and ended by recording that "neither the interests which her Majesty's Government are specially bound to guard, nor the well-being of the regions with which the Treaty deals, would be consulted by the assembly of a Congress whose deliberations were to be restricted by such reservations as those which have been laid down by Prince Gortschakoff, in his most recent communication,"-that reserva

tion being particularly as follows,-that each Power must determine for itself what points it would and would not regard as affecting European interests. The newspapers spoke on the subject of the Circular with their usual many voices; but perhaps the most forcible comment was made by the Morning Post, to the effect that its perusal represented the differences between England and Russia to be so radical and comprehensive, that for practical purposes the San Stefano Treaty could scarcely be made to offer, unless entirely rewritten, a basis for discussion between the two Powers.

Pending debate upon the calling out of the Reserves, the Chancellor of the Exchequer introduced the Budget, for which purpose it had been postponed. After some preliminary observations, he said "I will first review the finance of the year with reference to the extraordinary expenditure which has taken place on supplies obtained under the Vote of Credit, and then amend my statement by adding an account of that extraordinary expenditure. The revenue of 1877-78, I am happy to say, has turned out very satisfactory, and has fully answered my expectations at the beginning of the year. My estimates appeared to myself and my friends very prudent; but I was told I was over-sanguine, and should be disappointed. However, on every occasion on which I have had the honour of bringing forward the Budget, I have heard such anticipations, and I am glad to say they have not been realised. Customs produced an increase of somewhat over 100,000l. Excise was the only item which showed a decrease, and the total amount of revenue, which I estimated at 79,146,000l., has been 79,763,0987., showing an increase of revenue above estimates of 617,219l. I am bound to say that a considerable amount of the excess is due to special causes, by the withdrawal of large quantities of spirits and tea from bond during the last week or two. The extra amount thus realised may be roughly estimated at perhaps 350,000l.; but, independent of that, I must say the revenue has kept up in a wonderful manner, considering all the circumstances of the past year. With regard to expenditure, the total was 78,902,445l., showing a surplus of income over ordinary expenditure of 859,8031. The increases of expenditure were chiefly on the permanent charge of debt and the Army charges, whilst the Navy charges were amongst the decreases. It is always desirable to remind the public of that which they are frequently told, but always forget, that there are every year considerable savings on the amounts voted by Parliament for the different charges, and therefore it is not wise always to take the estimate of expenditure and the estimate of revenue as by any means conclusive. Of the six millions of the Vote of Credit, 3 millions have been actually expended, and some further liabilities have been incurred. That converts the surplus of 860,000l. into a deficit of 2,640,000l. To meet that the Government propose to issue Exchequer Bonds to the amount of 2,750,000l., and they have applied 750,000l. out