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CARLTON HOUSE, LONDON (1812).

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Whilst the Gironde was thus weakened by this implacable and incurable feud with the Jacobins, Austria was making unmistakable signs of preparations for that war which Leopold had often threatened, but never commenced. Francis received deputations from the Emigrant princes, ordered the concentration of troops in Flanders, and spoke in so firm a tone of restoring Louis and the old system of things, that the French ambassador at Vienna, M. De Noailles, sent in his resignation, stating that he despaired of inducing the Emperor to listen to the language which had been dictated to him. Two days afterwards, however, Noailles recalled his resignation, saying he had obtained the categorical answer demanded of the Court of Vienna. This was sent in a dispatch from Baron von Cobentzel, the Foreign Minister of Austria. In this document, which was tantamount to a declaration of war, the Court of Vienna declared that it would listen to no terms on behalf of the King of France, except his entire restoration to all the ancient rights of his throne, according to the royal declaration of the 23rd of June, 1789; and the restoration of the domains in Alsace, with all their feudal rights, to the princes of the Empire. Moreover, Prince Kaunitz, the chief Minister of Francis, announced his determination to hold no correspondence with the Government which had usurped authority in France.The Budget was brought forward on the 13th of February. It proposed to continue the income tax, which experience had shown to afford a means of supplying the place of taxes repealed, until such time as the revenue should recover itself. The Minister then unfolded his scheme, which formed no unworthy complement to his great Budget of 1842. It proposed a reduction in the sugar duties, which could not be calculated at less than 1,300,000, and was expected to lower the price to the consumer by about 1-1/4d. a pound. The Minister then proceeded to refer to a list of articles, 430 in number, which yielded but trifling amounts of revenue, and many of which were raw materials used in the various manufactures of the country, including silk, hemp, flax, and yarn or thread (except worsted yarn), all woods used in cabinet-making, animal and vegetable oils, iron and zinc in the first stages, ores and minerals (except copper ore, to which the last Act was still to apply), dye stuffs of all kinds, and all drugs, with very few exceptions; on the whole of these articles he proposed to repeal the duties altogether, not even leaving a nominal rate for registration, but retaining the power of examination. The timber duties generally he proposed to continue as they were, with the one exception of staves, which, as the raw material of the extensive manufacture of casks, he proposed to include with the 430 articles, and to take off the duty altogether. On these articles the loss amounted to 320,000. The next and most important relief in the whole proposition was the article of cotton wool, on which the Minister proposed also to reduce the duty altogether, and on which he estimated the loss at 680,000; and these constituted the whole of the proposed reductions of the import dutiesthat is, sugar, cotton wool, and the numerous small articles in the tariff. The next items of reduction proposed were the few remaining duties on our exports, such as china-stone, and other trifling things, but including the most important article of coals, on which the duty had been placed by the Government, and at the result of which Sir Robert Peel candidly avowed his disappointment. The duties he estimated at 118,000. He then passed on to the excise duties, among which he had selected two items of great importance for entire repealthe auction duty and the glass duties. By a repeal of the auction duty he estimated a loss of 300,000; but as he proposed, at the same time, to increase the auctioneer's licence uniformly from 5 to 15 (making one licence answer for all purposes, whereas, at that time, several licences were often necessary to the same party) he expected from 4,000 auctioneers an increased income, so as to reduce this loss to 250,000. On the important article of glass he gave up 642,000. These constituted the whole of his proposals; and the surplus of 2,409,000 was thus proposed to be disposed of:Estimated loss on sugar, 1,300,000; duty on cotton repealed, 680,000; ditto on 430 articles in tariff, 320,000; export duty on coal, 118,000; auction duty, 250,000; glass, 642,000. Total, 3,310,000.[See larger version]
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ONE:Lord Durham at once resigned, and was succeeded by Mr. Poulett Thomson, afterwards Lord[448] Sydenham, who fully adopted his policy, which was ably expounded in an important report from the pen of Mr. Charles Buller, with additions by Gibbon Wakefield. It was characterised by profound statesmanship, and was the basis of the sound policy which has made united Canada a great and flourishing State. Meanwhile, the returned prisoners from Bermuda showed their sense of the leniency with which they had been treated by immediately reorganising the rebellion. Sir John Colborne, the commander-in-chief, who had, on Lord Durham's departure, assumed provisionally the government of the colonies, thereupon proclaimed martial law, and stamped out the insurrection. Only twelve of the principal offenders were ultimately brought to trial, of whom ten were sentenced to death, but only four were executed. The persons convicted of treason, or political felony, in Upper Canada, from the 1st of October, 1837, to the 1st of November, 1838, were disposed of as follows:pardoned on giving security, 140; sentenced to confinement in penitentiary, 14; sentenced to banishment, 18; transported to Van Diemen's Land, 27; escaped from Fort Henry, 12. The American prisoners had been sent to Kingston, and tried by court-martial on the 24th of November. Four of them were sentenced to death, and executed, complaining of the deception that had been practised on them with regard to the strength of the anti-British party, and the prospects of the enterprise. Five others were afterwards found guilty and executed. The American Government, though deprecating those executions on grounds of humanity, disclaimed all sanction or encouragement of such piratical invasions, and denied any desire on its part for the annexation of Canada.

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[See larger version]To give to this action greater importance in the eyes of the world, Buonaparte called it the Battle of the Pyramids. He then marched to Cairo, which surrendered without opposition. Napoleon called together a council of about forty of the most distinguished sheiks, who were to continue the government of all Lower Egypt, as before his arrival. He professed to listen to their counsels, and in fact to be a Mahometan; he said he was not come to destroy the practice of the doctrines of the Koran, but to complete the mission of Mahomet; he celebrated the feast of the Prophet with some sheik of eminence, and joined in the litanies and worship enjoined by the Koran.
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