advance the "small holdings movement, which in Denmark has wrought such excellent results.

Amongst other laws may be mentioned the Civil Marriage Act, which enables any one to be civilly married, independently of religion, and the Act by which Sweden joined the Berne Convention, a step which Swedish writers had been urging for several years. In the cause of temperance a Bill was passed, prohibiting the serving of beer at military camps.

As usual the Riksdag passed a number of resolutions recommending the Government to introduce legislative measures for various objects, such as a Bill improving the condition of seamen, a Bill regulating the poor rates for the different municipalities, measures to reduce and prevent emigration, etc.

Although the question of bringing to a satisfactory consummation the negotiations between Sweden and Norway, more especially respecting the consular service, played a most prominent part in the public life of 1904, the Riksdag itself had but little to do with matters concerning the union. The rosy prospects with which the year opened faded more and more during its course, and ended without any nearer approach to a definite solution. This was a keen disappointment to all those who wished to see the union maintained and strengthened. In the month of November there were even rumours of the Premier, M. Boström, resigning, as a sequel to the resignation of M. Lagerheim, the Minister for Foreign Affairs, which took place on November 7, it being understood that M. Boström's proposals with reference to the legislation necessitated by the proposed severance of the Swedish and the Norwegian consular services had not been well received in Norway. It was also surmised that the delay in appointing a successor to M. Lagerheim was owing to a desire on the part of M. Boström to relinquish the Premiership and take over the Foreign Ministry. M. Gyllenstolpe, formerly Swedish-Norwegian Ambassador in St. Petersburg, was, however, appointed Foreign Minister on December 22.

In the month of July a State loan was negotiated for the sum of 36,000,000 kr. at 3 per cent. interest, and on favourable conditions for the Exchequer.

VIII. NORWAY.

The hopes which had been cherished of a speedy and smooth solution of the old problem of the consular services of Norway and Sweden were in 1904, if not absolutely blighted, at any rate seriously shaken and deferred. This turn of events was felt all the more keenly because the whole of the political situation in Norway rested on a firm conviction that the compromise, of which the existing Government was the outcome, would so materially facilitate an arrangement with Sweden that a prompt and satisfactory settlement might be looked for with confidence. The change was attributed to the position taken up by Sweden's

representatives in the negotiations or by the Swedish Government. M. Boström, the Premier, it was thought, had again given way to "Great Swedish" influences, whilst the Minister for Foreign Affairs, M. Lagerheim, was held to be more conciliatory and accommodating, and probably on that account to have resigned, seeing his inability to advance the negotiations in accordance with his wishes (Nov. 7, 1904).

In Norway, at anyrate, at the end of the year further negotiations were looked upon as altogether unlikely to lead to a settlement. This view was held not only by the Left but also by many Conservatives, and the bitter disappointment with the position taken up by the Swedish Government tended to diminish the difference between the political parties in Norway, so that Sweden must now reckon with a far more united Norway than during the greater part of the existing generation. The dissolution of the Union was being openly and calmly discussed as the natural outcome of the present difficult and unsatisfactory position, and speculation was rife as to whether Norway in that case ought to become a kingdom or a republic.

M. Lagerheim, the former Swedish Minister for Foreign Affairs, had the credit of having brought about the amicable negotiations which marked the earlier part of the year, and the Swedish Government seemed to fully sympathise with the turn events had taken, as did the King himself, who of late years had become much more popular in Norway. But other more or less unfavourable influences by degrees began to make themselves felt, and towards the end of the summer the prospects of a speedy settlement had already become overcast. Various proposals had in the meantime been under consideration, both the strictly Norwegian measures relating to the Budget, another organisation of a separate Norwegian consular service, and the drafts for the Norwegian and Swedish laws, which the severance of the consular service would necessitate. The King returned to Stockholm in the middle of September, and had expressed a desire that the matter should be forthwith proceeded with. At the opening of the Storthing in October it was stated in the Speech from the Throne that the result of the negotiations about the consular question would be laid before the Storthing. On November 5, in the course of the debate on the Address, M. Berner asked whether the Government could not supplement that statement with further communications. M. Hagerup, the Premier, replied that the Norwegian Government had ready a draft of the uniform laws, Norwegian and Swedish, which were required, and that they had been sent to the Swedish Government from whom no reply had so far been received. The Storthing would be informed of the result of the negotiations if possible early in the new year.

Towards the end of November M. Boström, the Swedish Premier, and M. Sigurd Ibsen, the Chief Resident Norwegian Councillor of State at Stockholm, proceeded to Christiania in

order to negotiate direct with M. Hagerup, the Norwegian Premier. The latter, however, did not, as far as is known, see his way to accept M. Boström's proposals, according to which the Norwegian consular service should remain a department of the Swedish Foreign Ministry, and things were not supposed to have gone any better during M. Hagerup's presence in Stockholm in the middle of December. On his return to Christiania, accompanied by the Stockholm section of the Norwegian Councillors of State, there was a Cabinet Council, after which it was announced that during the negotiations which had just taken place in Stockholm, and at which M. Hagerup and M. Ibsen for Norway, M. Boström and M. Ramstedt (acting Foreign Minister) for Sweden had been present, a Swedish proposal for the uniform Norwegian and Swedish laws had been introduced. This proposal would now be duly considered by the Norwegian Government, and a prompt reply would be forthcoming. Thus the matter stood at the end of the year; it was generally admitted that the Swedish proposals were unacceptable, and that the negotiations had been so seriously jeopardised that there was but little hope of a satisfactory solution. As a means of advancing the negotiations, a meeting in Stockholm of Norwegian and Swedish members of the respective Legislatures early in the new year had been suggested, and the plan seemed to have been favourably received.

The Hagerup-Ibsen Ministry had considerable financial troubles to contend with. This coalition Government had pledged itself to bring about a sounder Budget; the revenue would have to be swelled, and, still more important, the expenditure to be reduced, for taxes were already more than high enough. The former Government's Budget was looked into, M. Kildal, the new Minister of Finance, having pointed out its inaccuracy, and a critical investigation reduced the revenue by 1,600,000 kr. Reductions in expenditure of some 700,000 kr. were proposed, but still there remained 900,000 kr. on the wrong side. The only department where reductions were possible was the Army, and it was in consequence proposed to abandon the "battalion manoeuvres" of the year, which would bring about the necessary balance. This proposal caused much alarm, more especially amongst the old Left party. A heated debate lasting two days ensued, calling forth a number of leading Members, but eventually the House agreed by 65 votes to 51 to an Address to the King, in which the abandonment of the battalion manoeuvres for the year was recommended.

The Budget Committee completed their report in the beginning of May, the outcome being a Budget in which revenue. and expenditure had been made to balance at 94,000,000 kr. The Customs revenue, which the Blehr Ministry had put at 35,000,000 kr. and the Customs Committee at 34,000,000 kr., was in the Budget estimated at 34,200,000 kr. The corn-brandy

and the malt tax were put as proposed by the Government at 3,000,000 kr. and 3,200,000 kr. respectively.

Dissatisfaction had been caused by the burdens of municipal taxation, which could not be wondered at in view of the fact that in Christiania, for instance, they amounted to 14 per cent. of income. A special committee had for a long period been considering the subject, and their proposal was handed in in the course of the spring. So as to do away with the arbitrary manner in which incomes were often estimated for taxation purposes -the municipalities appearing to have unlimited power in this matter the report recommended a system under which citizens with an income of not less than 1,500 kr. should themselves state their income, and that municipal rates should not exceed 10 per cent. of the income.

The question of commercial treaties was discussed at some length on March 7. M. Arctander laid much stress upon the view that Norway ought to get away from the old system of joint commercial treaties with Sweden, and ought to have her own separate treaties. One of the Ministers, however, maintained that there might often be advantages for Norway in joint commercial treaties.

A debate, which, although not of great practical importance, was symptomatic of latent dissatisfaction as between the two halves of the monarchy, referred to a dispute with Sweden about a small island of no account. It had been agreed to refer the question to arbitration, on terms upon which the two Governments were agreed. The Swedish Riksdag, however, introduced some modification in the conditions, and on May 2 the Storthing unanimously agreed to let the matter drop, both the Conservative side, the Left and the Government expressing regret at the position taken up by the Swedish Riksdag.

The Storthing closed its session on May 20. The legislative yield was rather a poor one, although, on the whole, sober judgment and common-sense had asserted themselves. A sounder financial policy was allowed to prevail and the national debts had not been increased during the session. Among the measures passed may be mentioned the Government proposal introducing alterations in the Jury Act. Although not passed in full accordance with its original draft this law was a step in the right direction. There were also the Whale Preservation Act and the Corn-Brandy Act, which the new Government took over from their predecessors, and which some of their supporters would fain have seen dropped.

The new session of the Storthing commenced on October 11, M. Thorne being elected President and M. Berner, Vice-President. The Speech from the Throne stated that the results of the consular negotiations would be laid before the House, and announced a new tariff proposal, yielding additional protection to home industries. The Budget, which was at once introduced, showed equal revenue and expenditure, 97,950,000 kr., or about

4,000,000 kr. more than the previous year. The Budget provided for the deficit of 860,000 kr. on the 1903-4 Budget, and altogether some 3,000,000 kr. had to be covered by new features in the revenue. The proposed new tariff was expected to yield an additional income of 1,300,000 kr., and it was proposed to transfer the surplus from the Corn-brandy Association to the Exchequer to the amount of some 1,500,000 kr.

One of the first votes of the House was an unmistakable rejection of a proposal altering the order of the House and restricting the debates.

In a secret meeting the Storthing on October 15 decided that the new Government tariff proposal should be made public. The Government had not accepted the Committee's suggestion of an increased duty on meat and bacon; a duty of 60 öre per 100 kilograms on oats (hitherto free), of 1:30 (hitherto 0.60) on oatmeal being proposed, besides numerous other increases on the existing tariff. A continental tariff is in most cases a very elaborate affair, and the report of the Committee dealt with no less than 704 different items. During the debate it was proposed that some of the more important newly increased items in the tariff should at once come into operation so as to put a stop to speculation, but the House would not agree to this, not wanting in any way to compromise or anticipate the final result.

On December 10 the Storthing at a closed sitting agreed, by 102 votes to 10, to raise the corn-brandy tax by 25 öre per litre of 100 per cent. strength, and to a duty of 26 öre per litre; the increase amounts to about 10 öre per bottle, and is calculated to yield the Exchequer an additional revenue of 700,000 kr.

On December 3 the Storthing authorised the Government to contract a new national loan of 40,000,000 kr. It was originally only intended to get 30,000,000 kr., but the terms were considered so favourable that the Government decided to increase the amount by another 10,000,000 kr. to serve as that reserve fund of which the Norwegian Exchequer has been sadly in need. The loan was to extend over a period of sixty years.

In the beginning of December the municipal elections took place and attracted much attention. In Christiania the Conservatives secured 47 seats, the Social Democrats 23, the Left 11, the Total Abstainers 2, the Non-Politicals 1. The Social Democrats gained 9 seats, the Left being the principal losers.

CHAPTER V.

ASIA (SOUTHERN).

I. PERSIA.

No event of any historical importance has occurred during 1904 either in Persia or in the Persian Gulf. The Persian corre

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