resignation of Signor Tittoni; ultimately, however, it was the War Minister, Signor Casana, who left the Cabinet, partly because the 100,000,000 francs which he demanded for extraordinary expenditure was refused him. His successor was General Spingardi, who was stated to be in favour of a two years' term of military service with the colours, and who agreed with Signor Giolitti that the new expenditure should be distributed over several years. The latter part of April was marked by the visit of King Edward VII. and his reception in the roadstead of Baiae by the King of Italy; and Anglo-Italian harmony was affirmed once more.

May Day passed without serious disorder, the police having prohibited all processions, whether Anarchist, Socialist, or Clerical. But though order was maintained in the streets, the President of the Chamber found great difficulty in enforcing it during the proceedings. Besides the Budget debates, religious questions brought the various parties into conflict; indeed, some of the Ministers lacked that personal authority possessed by Signor Carcano, and increased in his case by the satisfactory state of the finances. This Minister, in supporting his demands for supplies, had the satisfaction of stating that, in the middle of May, the surplus of revenue exceeded 60,000,000 francs, and the estimates for the treasury had been voted by a large majority. On the other hand Signor Cocco-Ortu, the Minister of Agriculture, had only been able to get the Estimates for his Department passed because the Prime Minister stated that their rejection would be regarded as a vote of want of confidence in the Cabinet. The Estimates for the Department of Justice and Public Worship, of which Signor V. E. Orlando was Minister, were very actively debated, especially in view of the alarming progress made by the religious Orders. It was generally agreed that the State was impotent against certain Orders, the Jesuits for example, and that it was the victim of pious frauds whereby the Congregations were enabled to possess a considerable amount of land and house property. Statistics which made a great impression were given by Signor Chiesa of the Extreme Left (May 22). The Abbé Dom Romolo Murri declared that the Church had not disarmed, and that modern society would do well to distrust its aid. However, Signor Orlando assured the House that the Government was sufficiently well armed to defend the rights of the State; a resolution of censure proposed by the Extreme Left was rejected by a large majority (169 to 53), and the Estimates for the Department were passed. The debate on the Army Estimates was marked by an impressive speech from a former Prime Minister, Signor Fortis, who energetically asserted the need for an increase of Italy's military strength. The impression produced was such that the Estimates, both ordinary and extraordinary, were passed unanimously; and so were those for the Navy. But all the advantage which accrued to the Government from these votes, and even from the en

thusiasm aroused in Italy by the splendid celebrations of the jubilee of Magenta and Solferino (June 4, 24), was lost by the attacks invited by the proposed Shipping Convention with the Italian Lloyd. Under this Convention the Government granted that company a monopoly of the principal steamship services, and gave it the right during twenty-five years to issue bonds guaranteed by the State. Sicily and the Adriatic ports rose in protest against the scheme; scenes of unprecedented violence took place in the Chamber, and Signor Schanzer, the Minister of Posts and Telegraphs, was forced to resign. One Socialist deputy threw an inkstand at him, which hit the Prime Minister; another, Signor Colajanni, declared that his guilt exceeded that of Signor Nasi (ANNUAL REGISTER, 1908, p. 277). The agitation spread from the Parliament to the great towns; at Palermo a general strike was proclaimed; Venice adopted a threatening attitude; in certain towns the local authorities were constrained to make terms with public discontent. At first the Cabinet held its own. Signor Schanzer's resignation was withdrawn, and the unpopular scheme was amended; but its opponents had too strong a combination of various interests at their back. On July 8, when the division was to take place, the fall of the Ministry seemed inevitable. The speeches of Signor Sonnino, Signor Colajanni, and above all of Signor Pantano, had been so decisive in their effect that at the last moment Signor Giolitti gave up the idea of asking the majority to vote the Convention. He read a letter from Signor Piaggio, the President of the Italian Lloyd, agreeing to reduce the term of the Convention from twenty-five years to twenty, and even to allow the services to be put up to public tender. After this, amid general surprise, the Government itself demanded that the scheme should be referred back to the Committee. Disconcerted by this manœuvre, the Opposition protested in vain against the uncertainty thus set up; and the Report was referred back by 320 to 0. The outcome was a serious rebuff for Signor Giolitti; and for this reason, without waiting till the Senate had finished debating the Budget, the Session was abruptly closed on July 11, and the Chambers were prorogued until November 22. In consequence, the grant of votes on account went on for an unexpectedly long period.

This affair greatly weakened the Ministry; it was rumoured that Admiral Bettolo was to become Premier; but before any official announcement was made the King left for Racconigi. Signor Tittoni, whose position had seemed so insecure, remained in office; so likewise did Signor Schanzer. The recess was fairly calm; as usual, the constituency of Trapani once more persisted in electing its disqualified representative, Signor Nasi (Aug. 5). Reports of a general strike were current, but there was no unsettlement among the labouring class. The younger members of the judiciary, however, seriously considered the question of forming themselves into a union; Signor Luchini declared the mere idea improper. At the end of August, a sufficient degree of calm had been restored to enable the Ministry

to announce officially that it would reappear in full force before the Chamber. The municipality of Rome, presided over by the Democrat, Signor Nathan, took a vote of the population of the city (Sept. 19) on the question of the municipalisation of the principal public services of the city, the tramways and the electric light. This policy, borrowed from the Birmingham type of Radicalism, was approved by an immense majority. On the other hand, the Socialist attempts to galvanise into life the agitation against the Tsar's visit were a pitiful failure. But the opponents of the Ministry scored a success in the organisation of an "Adriatic Group" of shipowners to encourage local steamship services; the Cabinet Council of September 17 concerned itself specially with this question; but there was opposition between the tendencies of the Government and those of the Particularists of the North.

The long-postponed visit of the Tsar to Italy (Oct. 23-24) was ultimately accomplished under conditions totally different from those which had been announced by the Press. Instead of coming by sea, the Tsar passed through Central Europe (p. 316), carefully avoiding Austrian territory; and arrived by the Mont Cenis route at Racconigi. King Victor Emmanuel expressed his gratitude to his guest, and assured him that the reigning Houses, the Governments, and the nations of Italy and Russia were united by sincere friendship and agreement as to their aims. It was noted at the same time that the thirtieth anniversary of the Austro-German treaty out of which had arisen the Triple Alliance, had passed completely unnoticed in Italy, and that disturbances had broken out in the Trentino because certain Tyrolese peasants had consented to form part of a deputation to the commemoration of the centenary of Andreas Hofer. But the customary outbreak of Irredentist passions was partly diverted by the reaction caused in Italy by the execution of Señor Ferrer (post, Chap. IV.); Rome came near being the scene of as serious disturbances as Paris was (p. 292) at the same time. The advanced Radical and Socialist Press called for the expulsion of Cardinal Merry del Val as a Spanish subject and the person principally responsible for the policy of violent repression adopted by the Spanish Government. Some days before the Chambers reassembled, General Asinari, the commander of the Third Army Corps, delivered a speech at Brescia (Nov. 11) which was regarded as offensive to the Dual Monarchy. The War Minister, without waiting for that Power to demand an explanation, at once placed him on the retired list. His real offence was that he spoke out what many officers thought privately. As the result of all these incidents, the situation was considerably strained when the Chambers resumed their labours. The preliminary skirmishes turned out to the advantage of the Ministry. The Government carried two Bills; one instituting a system of physical training intended to prepare the rising generation of Italians for military service, the other reducing the tax on bicycles; but the great question of the Shipping

Conventions remained in suspense. The Government, fearing a defeat on it, introduced a scheme for the reform of taxation involving new reductions of indirect taxation (on sugar), and increases of direct taxation (death duties and income tax). But, in the debate in the Committees of the Chamber on the nomination of the Select Committee to which the scheme would be referred, the Government was supported by 159 deputies and opposed by 219 (Dec. 2). So eagerly did Signor Giolitti seize this pretext to tender his resignation that his retirement appeared to be not so much a confession of impotence and defeat as an adroit manoeuvre intended to facilitate his early return to office. However this may have been, the King readily accepted the resignation of the Ministry, and entrusted Signor Sonnino with the task of forming the new Government.

The task was not easy. Signor Sonnino really desired to obtain the support of the groups forming the Left; but the question of religious instruction in schools compelled him to dispense with the aid of Signor Martini and Signor FinocchiaroAprile, who demanded that primary education should be absolutely neutral in regard to denominational tenets. After a whole week of unsettlement, the Ministry was formed on December 10. Signor Sonnino was Prime Minister and Minister of the Interior; Signor Guicciardini Minister of Foreign Affairs, Signor Bettolo of Marine, Signor Daneo of Public Instruction, Signor Sant' Onofrio of Justice and Public Worship, Signor Scialonga of Posts and Telegraphs, Signor Luzzatti of Agriculture, Signor Rubini of Public Works, Signor Salandra of the Treasury, Signor Arlotta of Finance. General Spingardi remained War Minister, the sole survivor of the preceding Ministry, and the only Minister who was not a member of either Chamber. The Cabinet was composed of elements drawn from all the moderate groups from the Liberal Right to the Democratic Left. It had this strange peculiarity, that it was supported both by Signor Giolitti's followers, who looked with alarm on the possibility of the advanced groups attaining office, and also by these same advanced groups, who would not have the late Prime Minister's Government back at any price. But the equilibrium thus established appeared extremely unstable. The new Ministry was completed on December 12 by the appointment of the Under-Secretaries of State, and convoked the Chambers on December 18, to hear its programme. This was received without enthusiasm, and gave rise to a debate described by a spectator as the vivisection of the Cabinet. Next day Signor Sonnino received a hearing, and even gained applause by his demand for "a little good-will." The Votes on Account demanded by the Ministry were granted by the Chamber by 224 to 69. This decision was regarded rather as an armistice than as an agreement between the majority and the Government. The Chamber was granting the usual truce over the Christmas holidays in its own interest rather than as a definite acceptance of the new Ministry.

CHAPTER II.

GERMANY AND AUSTRIA-HUNGARY.

I. GERMANY.

THE chief incident in the German history of the year was the breaking-up of Prince Bülow's Liberal-Conservative coalition, known as the "Bloc" during the debates on the Budget, and the consequent retirement of the Chancellor from office. The sharp differences which had manifested themselves on this question between the two parties during the previous year became still further accentuated when the permanent measure came on for discussion by the Budget Committee in January. The Government estimated the deficits for the financial years from 1909 to 1913 as 100,468,100l., apart from an increase of the Imperial debt, owing to obligations already incurred, by about 50,000,000l. during that period, besides any possible expansion in naval construction, etc., beyond the programme fixed by the existing law. On January 15 the Budget Committee rejected the Government proposal to abolish the unpopular tax on railway passenger tickets on the ground that "it is inexpedient to remove an unpopular tax in order to fill its place by taxes even more unpopular," and the German Handelstag (Congress of the Imperial Chambers of Commerce) unanimously condemned the proposed gas, electricity, and advertisement taxes, and the spirit. monopoly (ANNUAL REGISTER, 1908, p. 284), and objected to the proposed retail taxes on wine, beer, and tobacco. Baron von Rheinbaben, the Prussian Minister of Finance, at the same time. declared in the Prussian Diet that there was no ground for hoping that the industrial recovery from the prevailing depression would be as rapid as in previous years; the position in certain industries had rather deteriorated than improved. The State railways had greatly suffered in consequence, having yielded over 5,000,000l. less revenue than before, "but although the State control of means of transit complicated financial calculations and involved the State in the risks of trade and the consequences of economic depression, there could be no doubt, upon the whole, that the nationalisation of the railways was one of the greatest accomplishments of Prince Bismarck."

On January 19 Prince Bülow urged in the Prussian Diet that the German people should return to their old habits of economy in administration, adding, however, that "for the foundations of our welfare and our greatness, of our might and our security, for the Army and the Navy, it is the best that is just good enough. We cannot and dare not save money at the expense of our readiness for battle and of the peace of the country; our geographical position is too unfavourable for that." If their house was to be put in order, party principles