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[dual monarchy :

these Delegations should not overshadow the parliaments but no parties were really satisfied. The Germans, who by which they were appointed. The Delegations were not accepted the principle of dualism, were indignant at to sit together) each was to meet separately ; they were the financial arrangements; for Hungary, while gaining than an equal share of power, paid less than to communicate by writing, every document being accom- more one-third of the common expenses. On the other hand, panied by a translation in Magyar or German, as the case might be; only if after three times exchanging notes they according to British ideas of taxable capacity, Hungary failed to agree was there to be a common session; in that paid, and still pays, more than her share. The Gercase there would be no discussion, and they were to vote mans, however, could at least hope that in the future financial arrangements might be revised ; the comin silence; a simple majority was sufficient. There were the plaints of the Slavonic races were political, and within to be three ministers for common purposes—(1) for foreign affairs ; (2) for war; (3) for finance ; these ministers were the constitution there was no means of remedy, for, while responsible to the Delegations, but the Delegations were the settlement gave to the Hungarians all that they really given no legislative power. The minister of war demanded, it deprived the Bohemians or Galicians of any controlled the common army, but even the laws de- hope that they would be able to obtain similar independtermining the method by which the army was to be ence. Politically, the principle underlying the agreement recruited had to be voted separately in each of the parlia- was that the empire should be divided into two portions, one of these the Magyars were to rule, in the other the ments. The minister of finance had to lay before them in Germans; in either section the Slavonic races—the Serbs the common budget, but they could not raise money or and Croatians, the Czechs, Poles, and Slovenians—were to vote taxes; after they had passed the budget the money required had to be provided by the separate parliaments. be placed in a position of political inferiority. Even the determination of the proportion which each half The logical consistency with which the principle of Dualism was of the monarchy was to contribute was not left to the carried out is shown in a change of title By a letter to Beust 14th November 1868 the emperor ordered that he should henceDelegations. It was to be fixed once every ten years of forward be styled, not as before “ Emperor of Austna, Ring ot by separate committees chosen for that purpose from Hungary, King of Bohemia, etc.,” hut “Emperor of Austria, the Austrian Reichsrath and the Hungarian Reichstag, King of Bohemia, etc., and Apostolic King of Hungary, thereby the so-called Quota-Deputations. In addition to these simiifying the separation of the two districts over which e His shorter style is “ His Majesty the Emperor and King, “common affairs” the Hungarians, indeed, recognized that rides. and “ His Imperial and Apostolic Royal Majesty ; the lands over there were certain other matters which it was desirable which he rules are called “The Austrian-Hunganan Monarchy should be managed on identical principles in the two or “The Austrian-Hungarian Realm.” The new terminology, halves of the monarchy—namely, customs and excise “ Imperial and Royal” (Kaiserlich und Konighch), has since then applied to all those branches of the public service which currency; the army and common railways. For these, been to the common ministries ; this was first the case with the however, no common institutions were created ; they must belong diplomatic service; not till 1889 was it applied to the army, which be arranged by agreement; the ministers must confer and for some time kept up the old style of Kaiserhdi-Konvglich; in then introduce identical acts in the Hungarian and the 1895 it was applied to the ministry of the imperial house, an ofhce always held by the minister for foreign affairs, ihe minister for Austrian parliaments. affairs was at first called the Peichskanzler ; but in 18/ , The main principles of this agreement were decided foreign when Andrassy succeeded Beust, this was given up in deference to during the spring of 1867 ; but during this period the Hungarian feeling, for it might be taken to imply that there was Austrians were not really consulted at all. The a single state of which he was minister. Ihe old style Kaiscrluh-^ Financial negotiations on behalf of the court of Vienna Konialich the “K. K.” which has become so familiar through long settle were entrusted to Beust, whom the emperor use ^is still retained in the Austrian half of the monarchy. There are therefore, e.g., three ministries of finance : the Zimerappointed chancellor of the empire and also Uch und K'dniglich for joint affairs ; the Kaiserhch-Konighch minister-president of Austria. He had no previous for Austrian affairs ; the Koniglich for Hungary. experience of Austrian affairs, and was only anxious at The settlement with Hungary consisted then of three once to bring about a settlement which would enable the parts (1) the political settlement, which was to be perempire to take a strong position in international politics. manent and has since remained part of the Common In the summer of 1867, however (the Austrian Reichsrath fundamental constitution of the monarchy ; affairs. having met), the two parliaments each elected a deputation the periodical financial settlement, determining e of fifteen members to arrange the financial settlement. lk the partition of the common expenses as arranged by the first matter was the debt, amounting to over 3000 million Quota-Deputations and ratified by the parliaments; (3) gulden, in addition to the floating debt, which had been contracted during recent years. The . Hungarians the Customs Union and the agreement as to currency a voluntary and terminable arrangement made laid down the principle that they were m no way — between the two Governments and parliaments. Ihe responsible for debts contracted during a time when they of the common affairs which fall under the had been deprived of their constitutional liberties; they history management of the common ministries, is, then, the consented, however, to pay each year 29| million gulden towards the interest. The whole responsibility for the history of the foreign policy of the empire and of the payment of the remainder of the interest, amounting army It is with this and this alone that the Delegations annually to over a hundred million gulden, and the are occupied, and it is to this that we must now turn. management of the debt, was left to the Austrians. Ihe The annual meetings call for little notice;, they have Hungarians wished that a considerable part of it should be generally been the occasion on which the foreign minister repudiated. It was then agreed that the two states should has explained and justified his policy; according to the form a Customs Union for the next ten years ; the customs English custom, red books, sometimes containing imwere to be paid to the common exchequer; all sums portant despatches, have been laid before them; but the required in addition to this to meet the expenses were to debates have caused less embarrassment to the Government be provided as to 30 per cent, by Hungary and as to 70 than is generally the case in parliamentary assemblies, per cent, by Austria. After the financial question had and the army budget has generally been passed with few been thus settled, the whole of these arrangements were and unimportant alterations. then on 21st and 24th December 1867, enacted by the two i Baron H. de Worms. The Austro-Hungarian Empire. London, parliaments, and the system of dualism was established. 1876, and Beust’s Memoirs. The Acts were accepted in Austria out of necessity;