1866, it reached the sum of 970 millions; and on the 1st of December last it had fallen to 936 millions, without any financial event having warranted that diminution. Of itself, therefore, the extent of the floating debt-the object of such frequent discussions -is not a sure indication, and its real signification must be sought for in its composition, which may comprise elements of a more or less delicate nature, and still more in its mode of employment. "ORDINARY BUDGET OF 1868. "The ordinary budget of 1868 was fixed by the law of the 18th of July, 1867, with a surplus of receipts amounting to 124 millions. New facts will involve the following modifications:-The indirect taxes have produced in 1867, as compared with 1866, a surplus which, added to that of the direct taxes, and of some other resources, form a total of 25,270,448f. That amount, being added to the original estimates of 1868, which have been calculated on those of 1866, increase the receipts to 1,698,725,033f. On the other hand, the expenses have suffered an augmentation due to different causes, some permanent, and others exceptional and unavoidable; namely,— Rise in the prices of rations for men and horses (2) (War and Marine) Increase of the dietary scale, admitted in the extraordinary rectificative budget of 1867, and fixed at five centimes Organization of the army on a footing of 400,000 Guard National Mobile Different services of the marine and colonies Expenses of Government manufactures F. 24,000,000 0,000 5,314,000 men 16,000,000 5,000,000 2,700,000 1,313,000 415,448 Divers credits in the other Ministerial Departments. 5,682,745 "Those augmentations raise the total expenditure, less the thirteen millions of annulations, to 1,596,325,000f.; the receipts, rectified, being 1,698,722,033f. The surplus of income will be, in round numbers, 102,000,000f. "Further requisitions are, no doubt, to be expected. The financial measure, which will be presently referred to, and the situation of the communes already aided (3), will give to that event a character of probability which I have been obliged to take into account. I have consequently thought it preferable not to anticipate and to keep in reserve the increases of receipts which may occur in 1868. Sire, I have carefully studied the situation of the finances; I have described it as simply and as exactly as I have been able, without exaggerating it in a favourable sense or otherwise; I have proposed, without hesitation, such measures as the circumstances have seemed to me to require; and I trust that they will have the result, by balancing the present, of preparing a better future. The patriotism of the country is about to impose on itself great sacrifices; but it will gain the better guarantee of peace which results from strength, not of that unquiet and suspicious peace during which each nation, by the fear of a conflict, is incessantly damaging its own prosperity and its credit; but a peace, calm, confident, and fruitful, based on a common understanding and a mutual respect; such as your Majesty in your farseeing wisdom is pursuing with your desires and your efforts." The Army Organization Bill was passed in January by the Corps Législatif, after a vigorous opposition, by a majority of 200 against 60 votes. It came before the Senate at the end of the month, and in the course of the debate that ensued, Baron Brennier said, 66 I look at this Bill from the point of view of the greatness and security of France. It has been said that 400,000 men are an army sufficient to guarantee the country; and, with a good system of fortresses and Paris protected, I agree in that opinion. But with the former law did that force exist? No; for in 1862 there were only 264,000, and in 1864 no more than 233,000 men. All deductions made, the entire effective force under the plan now proposed will not exceed 540,000, and I doubt whether, in the present military position of other Powers, that number will be sufficient to assure to France the rank which she ought to hold. Conventional right having ceased to exist, force now reigns in Europe; and we must be strong in order to preserve ourselves free and independent. Prussia, Austria, and Russia can put 4,000,000 soldiers on foot, and Italy might join her 900,000 to those of the Northern Powers, because Italy has shown ingratitude for the immense sacrifices made in her favour. France must therefore maintain herself on the highest level, not only in courage and patriotism, but in the number of her soldiers and the perfection of her arms. In Bavaria, in Saxony, in Sweden the number of soldiers, effective and reserve, as compared with the population, would, in the same proportion, give to France 1,590,000 men. The sacrifices are great, no doubt, but I desire the forces of my country to be on a footing of equality with those of foreign Powers. In my opinion, Prussia will achieve her work as rapidly as possible, and absorb the smaller States, already half expropriated on the score of public utility. She is preparing to act and will do so by surprise, for such is her habit. Remember how she swooped down like a bird of prey upon Austria. By the efforts of Count Bismarck, the German Empire will be reconstituted, and, in presence of that portentous reappearance, France must fortify herself effectually. The evacuation of Luxemburg by Prussia has only served to enable her to strengthen Saarbruck and Saarlouis, and the value of frontier fortresses is well known to Prussian statesmen, because, in 1815, Prince Hardenburg, the head of the Berlin Cabinet, claimed, in order to annihilate the aggressive power of France, all our fortresses on the Meuse and the Saar, and he wanted Alsace into the bargain, as forming part of the defensive system of Germany. We must therefore arm, in order to teach the nation that it cannot be powerful without sacrifices, and that in order to have the right to live and be influential it must have numerous and patriotic soldiers. I believe every citizen, without exception, should be a soldier, but I offer no amendment to this Bill. I only ask the Ministers present whether they deem it sufficient, not alone to secure the safety of French territory, but to make our influence felt abroad. By sometimes inspiring terror France has always made herself respected; and, for my part, I would not permit a stroke of policy to take place in Europe without our permission. I solicit a reply from the Government." General Count De la Rue.-The new plan, while preserving the principles of the law of 1832, will be less burdensome to the country in time of peace, and will produce in time of war an army more formidable than France has as yet set on foot. The Prussian system has been erroneously supposed to be suited to France, but the social organization of that country is aristocratic and agricultural; and military service here could not be framed upon that of Germany. The present Bill meets the principle of equality and the commercial and manufacturing conditions of our nation. But if we were dynastically united as Prussia is, our military strength would be far greater. Nevertheless our army is excellent in spirit and material force, and in aptitude for war is superior to that of any foreign State; but France must be henceforth always armed, and well armed; and that the nation may be taught to know this, all that is necessary is to show that commercial and industrial pursuits have to a large extent drawn away the young men. Civil life offers now more attractions than the military career. However, the proposed reserve will be far superior to the Prussian Landwehr in instruction and training, thanks to the admirable system of organization of our active army, which the German States envy us. As to the National Guard Mobile, its organization promises the most satisfactory results. In conclusion, our country is, no doubt, becoming more and more democratic, and this fact must be accepted; but democracy, to turn its enthusiasm to useful purpose, must be regularly organized and severely disciplined; and then a nation like France may be assured of maintaining its preponderance abroad and its security at home. M. Rouland.-This Bill involves the minimum of the efforts we ought to make; it is a concession reduced to the most indispensable necessities. This is the moment for the Senate to react against the passions, errors, and distrust brought to bear upon this measure, and the object of which is to weaken the respect which France entertains for the Emperor and for his Government. What is the present situation of Europe? One of disquietude and agitation. There is a milliard unemployed in the Bank, and when every one elsewhere is asking for money, the Finance Minister does well to think first of France. I like to remind our neighbours of this, "War can only be made with money; you have little, and we have much; remain quiet, then; if peace be your wish, so it is ours." This is the favourable aspect of large accumulations of disposable capital which arise from disquietude and distrust in the public mind, although for a month past we have had the most pacific assurances. But suppose these assurances to be falsified by events, how will the Bill before us meet the case? Its fault is that it provides only for the future, not for the present, and this is the reproach I make to the Government. Something more energetic and more complete ought to have been proposed. Every where around us Europe is arming, and we ought not to act like the foolish bird which when danger is abroad hides its head under its wing. There ought to be something more than the principle of the law of 1832, the insufficiency of which is recorded in the difficulties of bringing the effective into the field of battle. One journal of large circulation has said that France is no longer a nation, but a camp; its young men no longer citizens, but conscripts; and that the measure creates a million and a half of illustrious executioners. The writer says that the Government of Napoleon III. has universalized the military corvée. M. de Chabrier.-That is an indignity. M. Rouland.—But different sentiments have been expressed in the journals; the press, however, ought not to confound violence with liberty. Again, the Bill it was stated would engender despotism and stifle liberty. But where is despotism in the proposed plan? Where are the Pretorians? Another system of attack would seem to aim at producing the indifference and selfishness which cost the Government of July so dear; but France will never say to others, " Do what you please." No, this is impossible. Peace partout et toujours, at that time proclaimed by the Minister, brought affront and humiliation to France, as appears by the history of the period, and that was one of the causes which brought about the downfall of the Government of July. But the present Sovereign, who for seventeen years has been able to conciliate the conservative principles of society with the rights of the human mind and with political progress, cares nothing for the attacks made upon him; and the country will know what to think of this opposition. As to the economical objection, I say that commerce and industry require protection and security, and for this object force is necessary to repel aggression. The additional cost is an economical outlay, and the commercial class and the country are well aware of this. When the country is strong, thanks to the patriotism and prudence of the Emperor, then industry and business transactions may proceed in security, and disquietude will disappear. M. Chevalier, in a long speech, strongly opposed the Bill. He said that the nations of Europe were no longer hostile to each other; on the contrary, they were animated by feelings of reciprocal esteem and good will, and the modern inventions of railroads, telegraphs, &c., had placed them in constant communication. They only wanted to be united in friendship, and even the Governments which wished them to be at enmity would probably be disappointed. Sovereigns themselves now were not so desirous of war as some people imagined. France had recently seen the most powerful potentates of the Continent in her capital. They came not to improve themselves in the military art; they came to contemplate the wonderful productions of the country; not to pay homage to her military glory, but to admire the arts of peace, the real elements of the prosperity of nations; and they thus gave a pledge of their solicitude for the welfare of the nations whose destinies were confided to them. He saw nowhere in Europe any sign of violent antipathy, or of those conflicting interests which would justify France in apprehending aggressions for which it was indispensable for her to make these urgent preparations. Had those Sovereigns felt hostility against her they never would have visited Paris as they did last summer. M. Chevalier passed in review the whole of the great States in order to show that nowhere did any feeling of enmity exist against the French people. He said,—“ And, first of all, let us look at England. In former times England was very warlike, and warlike against France. France had inflicted much evil on her; but she had paid that evil back. In the present day England adopted in respect of Europe a policy essentially pacifica policy of non-intervention. The programme of her foreign policy was quite new; it was a programme which probably Pitt, in the celestial abode where he is, if he is there, would not approve. English policy now consisted in not meddling, or in meddling as little as possible, with the affairs of Europe, and in avoiding war with any one whatever whenever it was possible without the manifest sacrifice of her dignity." A Senator here observing that England was augmenting her armaments more than ever, M. Chevalier said, "England is exerting herself to cover the world with flourishing colonies, and to develope by means of liberal institutions the establishments she has planted every where. She is carrying out this great design with consummate skill. It is her only foreign policy. From England, therefore, there is no danger of an attack on France. Let us now look at Austria. Is it Austria that disturbs your quiet? Is it against Austria that you want to make those preparations? I do not suppose it is. Is it Russia? Frankly speaking, Russia is too distant from us for any hypothesis of a war between France and Russia to be seriously discussed. And as for Prussia, she has too much to do at home to expose herself to the embarrassments, the difficulties, and the peril of a foreign war. I do not, then, hesitate to declare that we are menaced by no one. The impression we make on Europe is not that of people who can be threatened with impunity. We are rather a cause of disquiet to others than others to us.' He admitted that the transformation of Germany in the summer of 1866 had disclosed a change in the balance of power in the |