Mr. Kreismann to Mr. Seward. No. 18.] UNITED STATES LEGATION, SIR: I have the honor to acknowledge the receipt of your despatch No. 8, dated November 30, 1863. It makes mention only of my communication to you numbered 16, and dated November 10. Can it be that two others preceding it, numbered 14 and 15, and dated October 24 and 31, 1863, respectively, have failed to reach you? ? The Schleswig-Holstein question has assumed a less warlike aspect. The efforts of Austria and Prussia have compelled the federal diet to simply decree an execution against the King of Denmark, instead of an occupation and sequestration of Holstein. This, of course, involves a recognition in fact of the King of Denmark as Duke of Holstein, and the maintenance of the London protocol. England and Russia, the two powers most interested in the preservation of that treaty, have come to an understanding with Austria and Prussia to the effect that they shall compel the Danish ministry to abrogate the constitution incorporating Schleswig, lately adopted, and which is to go into operation on the first of January next; and also to institute the reforms in Holstein and Lauenburg which were promised but never carried out by Denmark. If this is done-and it seems most unlikely that Denmark will refuse to comply with the demands of England and Russia-Austria and Prussia, on their part, are to see to it that the other German states shall relinquish their efforts in behalf of Prince Frederick of Augustenburg, who claims the succession in the duchies. Denmark, it appears now, will continue to exist as heretofore, and Germany once more be disappointed in its hope and aspirations for national unity and power. It is true, German troops are on their way to enter Holstein; and, although it is reported, on good authority, that on their arrival the Danish troops will withdraw, this may yet give a turn to affairs not apprehended by the cabinets at the present hour. The government of Prussia has applied to the Chambers for twelve million thalers, to be raised by a loan, to defray the expenses for arming and equipping the Prussian contingent, and for fortifying the coast. But, as the position taken by the government is so entirely unsatisfactory to the people, the Chamber of Deputies will not vote the loan. An address to his Majesty is again to be resorted to, praying him to recede from the London protocol, to change the present system, and, in that event, pledging him all the resources of the country. It is, however, plain that this step will prove futile, resulting in the closing of the Chamber rather than in the dismissal of the ministry. SIR: Accounts of the meeting and organization of Congress, and also the President's message, have been received through the English papers, no American papers having as yet arrived here later than of the 8th instant. The comments of the German press on the message are in a high degree favorable. The striking contrast between President Lincoln's exhibition of the state of our national affairs with that of the rebel pretender Davis, which has likewise been published, has not failed to impress the public mind in Germany, and the conviction that the rebellion will come to a speedy end is again fully established. The paragraph of the President's message on the subject of European emigration, in connexion with the free homestead law, is receiving particular attention on the part of the German press; and it is conceded that emigration from Germany would be very considerably increased if our Congress could devise some mode by which persons desiring to emigrate might be provided a free passage to our shores. While many thousands of young and robust men, whose services would prove exceedingly valuable to our land, possess means sufficient to subsist them for a brief period after their arrival in America, they are unable to defray the expense of the passage, and are thus compelled to remain here. Had this legation possessed the necessary means and authority, it could have sent at least a thousand able-bodied and intelligent men during the present year. A free passage for emigrants to America should, therefore, be the chief object of any measures which Congress, in response to the President's recommendation, may deem proper to adopt. The President's firm declaration to stand by and uphold his proclamation of freedom is likewise receiving the just admiration and approval of enlightened Germany. It is now well understood that the people of America, of whatever party, are come to the conclusion that the Union shall be maintained, and that slavery shall have an end. * * * * Since my last report of the Schleswig-Holstein question the Danish troops have evacuated the latter duchy, and federal troops have entered. The government of Holstein and Lauenburg has also been assumed by the two federal commissioners accompanying the troops. On the part of the people, this has been followed everywhere by great demonstrations of rejoicing. All towns of importance are proclaiming the Prince of Augustenburg their rightful sovereign. The same step has been taken by nearly all the members of the Holstein assembly, lately called together for consultation. In the federal diet, too, a new movement has sprung up in his favor. Bavaria, Saxony, and Wurtemburg are believed to be united and ready for his recognition; and if this be really so, Austria and Prussia may not be able after all to prevent it. Popular enthusiasm and excitement in Germany is running higher and higher, and it will be no easy task to repress it. Meanwhile an event of great moment has transpired in Denmark, the news of which has just been received here. The ministry Hall has given in its resignation. The King has accepted it. The Reichsrath, just dissolved, is to be reconvened immediately, and the constitution adopted in November to be rescinded. The King himself will leave Copenhagen for the army in Schleswig. These measures would undoubtedly aid the chances of a peaceable solution of the whole question. It is evident that King Christian is anxious for such a result. A revolution, however, in Copenhagen, on the part of the ultra-Danish party, hitherto in power, and the proclamation of Prince Oscar, of Sweden, as King of Scandinavia, is by no means an event unlikely to happen. A few days will now suffice to determine the final result of the controversy. The Chambers here have adjourned over the Christmas holidays, and will not meet again until the 4th of January next. The Chamber of Deputies has voted the address which I reported to be in contemplation, but his Majesty has refused to receive the deputation charged with its delivery to him. So the document had to be transmitted through the president of the ministry, Herr von Bismark. The answer of his Majesty has not yet been given. It will consist in a flat refusal to entertain the propositions of the Chamber. The King, it is now ascertained, is entirely adverse to a war. He has been ill for some days past, but is recovering. The Prince Royal, with his family, after a long absence in England, has returned, and so has her Majesty the Queen. The King's conduct having alienated the good-will of the people of Berlin, none of the usual demonstrations have occurred on their return. My return was made the occasion for most of my colleagues of the diplomatic corps to express to me their belief in the destruction of the rebellion, and the full reinstatement of the authority of the government over the revolted districts. The opinions thus expressed are a reflex of those now very generally entertained in Germany. The development of the power and strength of republican government as shown in our history for the past two years, and the successful issue of the financial demands attendant upon the enormous expenditure occasioned by the war, surprises all of those who have been accustomed to theorize and form opinions based upon the resources of countries already fully developed, as most of the European states are. Theirs are the theories which always look up to the rulers as the fountain of all power, honor, and emolument, instead of, as with us, looking to the people as the great fountain of power. Our experiences will not only restore, but greatly increase, that confidence in republican institutions that was so rudely shaken in the early part of our struggle with the rebellion. There cannot be a general European war without leaving, as a result, more rights and power with the masses, and reducing, again, the number of those that rule by authority of dynasties. The three hundred and odd governing dynasties that existed in Germany barely a century since are now reduced to thirty-one. The small ones now tremble at the activity and development, politically, of their peoples, and feel that the next upheaving will lessen their number, as several are only maintained in their position by the influence of the larger powers in favor of what is called established order. The complications and proceedings in the Schleswig Holstein controversy occupy the attention of people, diplomats, and kings, almost to the exclusion of all other affairs. The excitement of the people of Germany is forcing the rulers, and there are no states in Germany, except Prussia and Austria, that attempt to stem in any manner this current. Austria, whose empire is less German than any other, successfully resists, and, while it joins in certain demands of Denmark favorable to the German population of the duchies, is opposed to the claims set up by Prince Frederick of Augustenburg. The ministry of Prussia desire to maintain the same position, but the king is influenced to some extent by the popular feeling of the kingdom, which demands the separation of the duchies from Denmark and the acknowledgment of the claims of the Prince of Augustenburg as lawful ruler thereof. Holstein and Lauenburg are already in possession of the troops acting under the orders of the federal Diet, and the Danish officials have either been supplanted, left the provinces, or acknowledged the authority of the civil commissioners that accompany the expedition, and, under the eyes and within the hearing of these commissioners, a new dynasty is being proclaimed. The Saxon and Hanoverian troops are now in occupation, and they, as well as their nations, sympathize with Prince Frederick. Prussian and Austrian troops are moving towards, and are in, the duchies, and the ruling powers of these countries desire that the Diet shall pronounce upon the Prince of Augustenburg's title before they define their position upon the question. Austria is against setting up the prince as duke, in any event; Prussia may or may not be, according as it sees safety in resisting the popular demand. The immediate question now is, will Schleswig be occupied? It is believed that the attempt to do it will lead to a collision and war, and the rulers of Europe fear war at the present time. The German people are for it, as they say, in defence of, and for the protection of, their oppressed brethren in the duchies; and with many there is another underlying motive, and that is the belief that a general war will bring in its train a relief from some of the dynastic influences that press down the liberal element. His Majesty the King of Prussia is still in disagreement with his people and their representatives in the legislature. He asked for twelve millions, to meet the exigencies of the Schleswig-Holstein difficulty, and, notwithstanding the strong desire on the part of the people that Prussia should actively interfere in these matters, their representatives refuse the money, demanding a change of the ministry, and giving as their reason that they have no faith in the proper application of the funds if intrusted to the present ministry. I am, sir, your obedient servant, SIR: Your despatch to Mr. Kreismann, as chargé d'affaires, No. 9, and dated January 7, 1864, is received. The interior politics of Prussia, and the contest between the ministers and the Chamber of Deputies, have again culminated in a prorogation of the two houses. The budget for the current year, presented by the ministry to the Chambers, contained the oft rejected items for the reorganization of the army, and the same overwhelming majority again rejected these items. The ministry also asked authority to make a loan of twelve millions, to meet the expenses to be incurred by the Prussian government in performing its obligations as a member of the German Bund in the federal execution in Holstein, and his Majesty, in a message in response to the address voted by the second Chamber, pledged his royal word that the funds should be applied to the object specified. The house refused to authorize the loan, and, in addition, resolved that a loan effected without its sanction would be a violation of the constitution, and its repayment would not be obligatory upon Prussia. In the conduct of Prussian finances it has been for years the practice not to anticipate revenue, but to use the collections of a previous to pay the expenses of the current year, any surplus remaining from appropriations being hoarded in the vaults of the old castle, as a reserve fund to meet contingencies. This fund had been accumulating for years, and no one knew (except a board of commissioners, specially charged by the King with its control and safe keeping) what sum was in the vault. The Chamber of Deputies desired to investigate and examine the accounts of the funds there kept in coin, but was refused, on the ground that it was not subject to the control of the house nor to the legislative action. It is supposed that the government will resort to this fund to meet the expenses for which authority to contract a loan was asked, but refused. It is true the prorogation of the Chambers leaves the ministry, as at the close of the two preceding sessions, without any budget constitutionally established; but they are enabled to carry on the government without the aid of the Chambers, from the fact that, under the existing revenue laws, an income sufficient is obtained to meet all ordinary requirements and disbursements of the government. It is only in the establishment of new taxes that the Chambers would become indispensable. The revenues of the kingdom are annually increasing, amounting at present to nearly one hundred and thirty millions of thalers. With such a revenue system, and a royal decree to expend the funds derived therefrom, the ministry is independent of the Chambers and the constitution, so long as no extraordinary taxation is required, and the people submit to this nullifying of their constitution. Without a general convulsion in Europe, this position of antagonism between the government and the representatives of the people, and the people themselves, may continue for a long time. In fact the wisest liberals fail to perceive any mode of regaining any power or control in the affairs of the kingdom. Revolution is not in the character of the people, and, while officially maintaining their rights without flinching, the liberal members urge upon the people to avoid all violence and not to give a welcome pretext to strike a blow entirely destroying all hopes for liberal reforms to those controlling an army amounting on a peace footing to two hundred and forty thousand men. The people of Prussia are a thoroughly loyal people. They are administratively well governed, their taxes not burdensome, and in the main they are prosperous and advancing in political knowledge and experience, but their progress in this direction has not yet reached the sublimity of fighting for an idea, viz: constitutional rights-the practical benefits of which are but little understood by the masses of the present generation of Prussians. No violent contest with the ruling powers will occur, except in the event of a general European convulsion, and probably not then, as long as Prussian arms are successful. As I advised you in my last despatch, the federal troops of Saxony and Hanover have, by order of the Bund, completely occupied Holstein, which is being governed by federal commissioners. The Diet stopped at this point and entered upon the consideration of the question as to the right of succession in that duchy, as between Prince Frederick of Augustenburg and Christian IX, King of Denmark, when Prussia and Austria introduced a proposition in the Diet to proceed to occupy Schleswig. The Diet refused to concur, because the occupation of Schleswig appeared not to be in the interest of a union of the duchies with Germany, under the Prince of Augustenburg as duke, whereupon Austria and Prussia set the authority of the Diet aside, by declaring that they should henceforth take the whole matter into their own hands as European powers and as the parties to the London protocol and the stipulations of 1851 and 1852. They at once commenced the movement of large bodies of troops to the frontier of Schleswig, and demanded of Denmark the revocation of the constitution of last November incorporating Schleswig into the Danish monarchy. |