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This question may be made the pretext or basis of trouble and even revolution, but the future can only determine.

On the 30th of June last, two officers of a Brazilian gunboat in Alto. Uruguay, landed at Argentine town, Alvear, were insulted, and the surgeon (one of the officers) was killed. The commander of the gunboat demanded the surrender of the assassin, which on being refused, fired on the town. The affair produced quite a sensation both in private and government circles. It is understood that several sharp notes passed between the minister for foreign affairs and the Brazilian minister on the subject, and resulted in the disapproval of the act of the commander of the gunboat by the Brazilian government and his dismissal from service. I am, &c.,

THOMAS O. OSBORN.

AUSTRIA-HUNGARY.

No. 7.

Mr. Jay to Mr. Fish. No. 655.]

AMERICAN LEGATION, Vienna, November 6, 1873. (Received December 8.) Sir: The opening of the Austrian Reichsrath by the Emperor in person occurred yesterday with the usual formalities; and the ceremonial has attracted the greater interest from the fact that the present Reichsrath is the first where the members of the House of Deputies have been elected, not as formerly by the Diets, but directly by the people under the new electoral law, of whose provisions I had the honor of advising you by my No. 545, of the 18th of February. The speech of the Emperor, of wbich I will append a translation, was cordially received, and the closing passages were warmly cheered. His Majesty remarked that they were entering upon a new period of their constitutional life, on the basis of an independent representation, which would enable all parties to give full expression to their needs and their wishes; and he invoked their intelligent co-operation in aiding his government to develop the constitutional institutions of the empire, and to protect its unity and its strength without forgetting the interests of the various nationalities. Allusion was made to the financial crisis now prevailing from exaggerated values and an abuse of credit-for the redress of which measures would be proposed—and to bills which would be submitted for their consideration on the relation between the church and the state by reason of the dissolution of the concordat with the Holy See.

Stress was laid upon the necessity of establishing a constitutional judiciary, and of further provision respecting the service of the army.

A paragraph was devoted to the Universal Exhibition, which, despite of difticulties, had achieved a brilliant success; and which, exercising a beneficent influence upon the spiritual and economic life of peoples, tending to the development of civilization and of the spirit of invention, and to a just appreciation of honest labor, would be appreciated throughout the world, while it aroused pride and hope in all patriotic breasts. The visits of sovereigos far and near had strengthened the ties of friend

ship and augmented the guarantees of peace, while they had made more important the position of the monarchy in the concert of states.

The speech closed with an assurance that, amid vicissitudes and painful trials, Austria to-day found herself rejuvenated at home and commanding respect abroad ; that in every domain of public life the barriers that restrained free movements had fallen, and they were on a path that would conduct them to a solution of their great task—the union of the people of Austria in a powerful state, guided by the ideas of right and of freedom.

To the accomplishment of that task, faithful to his motto, "Viribus unitis," he invoked their united efforts for the honor and safety of their dear Austria.

The applause at the conclusion of the address and as the Emperor retired, passing between the members of the two houses, who occupied the tioor of the hall, was hearty and prolonged.

The newspapers this morning exhibit an unusual unanimity in the farorable view taken of the address.

The Fremdenblatt says:

Sever did a speech from the throne bear testimony in a manner more clear and precise to the perfect accord of the sovereign with the principle and policy of his ministers.

• The Emperor has really pronounced in it noble and patriotic words, and in recognizing that his task as well as ours is to make Austria a powerful state based upon the ideas of right and of liberty, he has created so intimate an alliance with his peoples that it will survive all vicissitudes of time.

The New Free Press remarks that, The discourse from the throne has produced an impression of profound satisfaction. The spirit that animites it is that of the modern ideas. If the discourse proclaims as the task for all the living forces of the empire to make Anstria a powerful state, based upon the ideas of right and of liberty, it is the erection, as it were, of two columns of Hercules, whose signal-lights will illuminate our whole public life. The discourse from the throne is a programine which the Reichsrath and the population may greet with acclamation. There is in it nothing obscure or unequivocal. It takes into serious consideration the real needs of the empire and the most pressing exigencies of liberty, and, above all, it is eminently fitted to awaken the hope of an nuolerstanding and of action simultaneous, harmonious, salutary, and beneticent between the government and the representation of the country.

The Morgen Post says that the words of the Emperor are like a ray of light which penetrates the dark clouds. The Tagblatt says:

The words quoted from the disconrse from the throne authorize us to assume that Festerday in the throne-hall the modern constitutional state has received a solemn consecation. The extraordinary character of the enunciations of yesterday do not admit of their acceptation as if they reflected in general only the opinions of the present ministry.

The Gazette Allemande says:

Over the new reforms which are in preparation, and which, for the most part, cor• fespond with our exigencies, the sky expands without a cloud to disturb the peacereflecting the wishes of all civilized people, and proinising to preserve its serenity for some time at least—thanks to the real political necessities of the powers that control the situation.

The New Fremdenblatt, after remarking that it had often deplored and blamed the Auersperg ministry for not taking sufficient account of the passions of the masses, and forgetting that cold reasoning was not sutficient to move the large majority of a great people, says:

That the discourse from the throne of yesterday breathes for almost all of its parties Farm and patriotic sentiments.

The Tages Presse expresses similar views.

The (old) Presse says: Never, in truth, has a discourse from the throne recognized and indicated in a manner so beautiful and so noble the mission of this old empire.

The Vaterland, the organ of the federalists, who are opposed to the constitution, observes :

As to the discourse from the throne, elaborated by the Auersperg ministry, one may say that it is interesting from what it says and from what it omits to say. The partisans of the constitution have every reason to be enchauted with it.

The Volksfreund, the organ of the clericals, who have acted with the federalists constituting the party of the right, says that “the last days have showed a decomposition of the party of the right" from the refusal to appear in the Reichsrath of the Czeks and the Moravian catholic nationals. Among the absentees are to be counted also the Poles, who denounced the electoral law in advance as violating the guarantees given to the diet of Gallicia.

The Volksfreund, under these circumstances, invites the deputies opposed to the ministry to unite in forming a "catholic conservative party of the empire." I have, &c.,

JOHN JAY.

(Inclosure.]

SPEECH FROM THE THRONE, APPEARING IN THE “ MÉMORIAL DIPLOMATIQUE.”

[Translation.)

Speech of the Emperor at the opening of the Reichsrath, on the 30 November, 1873. Honorable Gentlemen of both Houses of the Reichsrath :

With joy I see you assembled around my throne for the faithful performance of your duties as citizens, and I bid you welcome while I present my imperial greeting. A new epoch of our constitutional existence has been opened for the formation of the lower house. Through direct elections the representation of the empire has acquired its independence, and the ground has been erected upon which all parties may be enabled to express their claims and their desires.

It will now be your task, honorable gentlemen, to finish the edifice with refined wisdom upon the foundation obtained, and to provide, in union with my government, for the maintenance and development of our constitutional institutions.

Without trespassing upon the guaranteed rights of the various countries of the monarchy, you will develop the unity and the might of the empire without neglecting the interests of the different races; you will satisfy the requirements of the state ; and you will consecrate all your endeavors to the great and difficult problems for the successful solution of which I appeal to your intelligent aid.

In this manner, thanks to a gradual advance and to diligent labor, you will reach the desired point, where, by unanimous care for the interest, both of the united, as well as individual portions of the empire, and by affection for a common country, differences of opinion will disappear and interior tranquillity will be founded upon a durable foundation.

To a period of national economic elevation has succeeded one of those reverses which occor from time to time in the existence of nations as a consequence of the hasty and exaggerated employment of financial means and credit. My government has endeavored, within the limits traced by the laws, and by its own responsibility, to preserve as far as possible commerce and industry from the pernicious consequences of this disturbance of confidence. The measures which have been taken for this purpose will be immediately submitted to your constitutional deliberations.

My government will propose to you at the same time measures adapted to sustain confidence, to secure the national activity from serious disturbances, and to replace the domestic relations upon a firin basis.

In the draught of the budget which will be submitted to you you will find those principles of economy realized which should be rigorously followed in order to maintain the finances of the government in a satisfactory condition. In order to realize the

to you.

urgent reform of the system of direct taxes there will be presently submitted to you a series of draughts of laws; also, in the matter of indirect taxes, your aid will be required in the matter of different laws, of which the draughts have been prepared.

The approaching expiration of the charter of the National Bank renders it necessary to regulate for the future the condition of this institution, and to take such measures as may be necessary to attain the important regulation of the valuta.

In order to adapt economical legislation to the requirements of the period, my government is engaged in preparing draughts of laws relative to shares and to the stockexchange; also to the exercise of industry and to railways, as well as to the advancements of natural progress.

The draughts of laws necessary for filling the gaps which the abolition of the convention made with the Papal stato bas produced in the legislation relative to the relations between the Catholic Church and my government will be presently submitted

My government considers one of its most important tasks to be the reform of criminal law, of civil procedure, and of judicial re-organization which is connected with it. The prestat condition of these labors of my government induces me to hope that you will succeed in shortly terminating the work so important, for the purpose of assuring, simplifying, and accelerating the administration of justice.

The draught of a law for the creation of an administrative court of justice, which could not be discussed during the preceding session, will now be submitted to your constitutional examination. My government will present a series of draughts of laws relative to the pensions of invalids, to the quartering of troops, to the organization and use of the armed civil force.

Notwithstanding the difficulties with which the exposition had to struggle, this great enterprise has had a brilliant career, and it has been universally appreciated; its salutary iutluence on the intellectual and economic existence of nations, on the progress of civilization, on the encouragement of the spirit of invention, and of industrial activity, as well as on the respect due to honest labor, will be gratefully regarded in all parts of the world. With fullest satisfaction I may therefore say, that in this pacitie tournament we have contended with honor, and have obtained a success which must fill every patriotic heart with pride and with hope.

The visits paid to me during the Universal Exposition by the sovereigns of states, remote and near, have secured more closely the bonds of friendship with these empires; they have augmented the guarantees of peace, and the influence of monarchy in the government of nations. Honorable Gentlemen of both Houses of the Reichsrath :

After various vicissitudes and disastrous struggles, Austria is to-day renovated at home, while she commands respect abroad. In all branches of public life, the causes which interfered with free movement have been suppressed, and we have entered apiu those ways which conduct to the solution of the grand problem, the union of the Farious populations of Austria; the establishment of a powerful state conducted by sentiments of right and of liberty. Let us labor, gentlemen, in this task, faithful to my motto), (l'iribus unitis,) and let us join our efforts in a spirit of concord for the honor ani) prosperity of our beloved Austria.

No. 8.

No. 683.

Mr. Jay to Mr. Fish.

AMERICAN LEGATION, Vienna, December 24, 1873. (Received January 12, 1874.) SIR: I have to acknowledge your circular of the 3d December, marked " contidential,” transmitting the President's message and the accompaoying protocol touching the Virginius.

As I have before remarked, the attention which the text of the message would otherwise claim at Vienna, is in great part forestalled by the summary by cable given in the London Times, and reproduced by the coutinental press. The New Free Press had a

leading article this morning on the Dew phase of the Virginias question presented by the announcement that the United States had recognized the soundness of the view presented by Spain that she was not entitled to carry the American flag.

The article, while attributing the decision.of the Government on this point not to the Attorney-General, but to the House of Representatives, and exhibiting, perhaps, in one or two other particulars, the carelessness and inexactness of statement to which you adverted in your No. 282, as marking a letter I had sent you from the columns of the same journal, exbibits a spirit of appreciation of the moderation and justice shown by us toward a sister republic in this matter, which I think deserving of notice, despite a few inaccuracies of form and an apparent ignorance of the terms of the protocol.

I append a translation of some brief extracts, which will show the spirit of the article on this point, as well as the appeal to Mr. Castelar, at the close, to extend to the Spanish prisoners in Cuba the rights of belligerents. I have, &c.,

JOHN JAY.

(Inclosure.)

LEADING EDITORIAL ON "VIRGINICS QUESTION."

[Translated from the "Now Free Press."] The matter was no more examined in the newspaper columns, or in stormy assemblies convoked for the occasion, but in the Hall of Representatives, not by wildly excited masses, but by considerate politiciars. Public opinion bad first called for war, afterward for unconditional satisfaction. Now, satisfaction had been given, the passions had subsided, and the Congress weighed the matter slowly and considerately, and lo! what was most unexpected occurred. The Congress acknowledged that the Virginius bad wrongfully carried the American flag, and it possessed the courage and honesty, not only openly to confess it, but ofticially to communicate to the Spanish government the supprising result of their consultations. This conduct deserves unreserved approval. As we were obliged to find, in the former phases of the “ Virginius question," the procedure of the United States harsh and unjust, we must now pay our tribute to the self-knowledge, the sincere explanation of the Congress. Nothing is more difficult than the confession of being in the wrong. Even an individual with difficulty makes up his mind so far to overcome vanity and self-love; nations and states, as a rule, prefer sacrificing their goods and lives to saying to an injured neighbor, we were in the wrong. Such a step as that of the American Congress could not at all be imagined in a monarchical state. Here the foreign policy does not rest with the legislative body; this is subject neither to their direction nor supervision.

This is seemingly an abandonment of a success attained, but, in truth, a victory worth as much as any gained in the open tield, and not less honorable.

Would it not be more humane, and, perhaps, more wise, to grant to the Cuban insurgents the same rights as have been granted long ago to the Carlists in the mother country? Cowards, who are afraid of bullets, are far from combating in the ranks of the Cuban insurgents ; executions do not cause any fear, but only unquenchable thirst for revenge, which is very often reeked in a dreadful manner on the Spanish soldiers. If Castelar resolved to utter the great words, “ captured Cubans are to be spared like captured Carlists,” his name would perhaps shine more purely and brilliantly than hitherto in the history of his native country, and the Virginius question would find a conclusion conciliatory and worthy of his country.

No. 9.

Mr. Jay to Mr. Fish. No. 684.]

AMERICAN LEGATION, Vienna, December 26, 1873. (Received January 15, 1874.) SIR: In my No. 683, acknowledging your confidential circular in regard to the affair of the Virginius, I appended an extract from some

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