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CONSTITUTION AND GOVERNMENT.
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administrative business of the Empire, the Council divides itself into eight standing committees, respectively for army and naval matters; tariff, excise, and taxes; trade and commerce; railways, posts, and telegraphs; civil and criminal law; and financial accounts and foreign affairs. Each committee consists of representatives of four states and the Emperor; but the foreign affairs' committee includes only the representatives of the three kingdoms of Bavaria, Saxony, and Würtemberg.

The executive power of the Confederation is, according to the fourth chapter of the constitution of 1867, declared to be annexed to the Prussian Crown. The King of Prussia, styled Lord President, acts on behalf of the Federation in its intercourse with foreign states; he declares war or concludes peace, and he appoints the ambassadors. The Federal Council is presided over by a Chancellor of the Federation, or Bundeskanzler, appointed by the King of Prussia. The Lord President enforces the observance of the Federal laws, and has the right to compel disobedient or neglectful members to fulfil their federal duties. He has also the unrestricted command of the army and navy of the Federation, the organisation of the naval service, and the appointments of all officers and civil functionaries. To the cost of the general administration, the states composing the Confederation of North Germany have to contribute at the rate of their population.

Revenue and Expenditure.

The Federal budget of the North German Confederation for the year 1871—passed by the Diet previous to the union of all the states of Germany—was based upon estimates of expenditure of 77,446,287 thaler, or 11,616,943l., to be covered to the amount of 51,697,754 thaler, or 7,754,663l. by receipts of the Confederation, and the remainder by contributions of the individual states, assessed pro rata of population. In the budget, the sum of 72,721,861 thaler was placed under the head of ordinary, and that of 4,724,426 thaler of extraordinary disbursements. The total ordinary, or 'continual' (fortdauernde) expenditure for the year 1871 was distributed as follows:—

Thaler

Federal Chancellery, Federal Council, and Parliament .... . . 295,013

Department of Foreign Affairs 885,530

Federal Consulates . 354,350

Federal Army . 66,856,638

Federal Navy . 3,596,730

Federal Debt . 612,000

Federal Audit (Rechnungshof ) 63,000

Federal Court of Justice 58,600

Total ordinary expenditure . 72,721,861