The Ausgleich., or arrangement between Austria and Hungary which governs
their commercial relations and much of their attitude to each other, has again fallen through. It was supposed that the protracted negotiations had succeeded, but at the last moment they were, from some cause not yet made clear, broken off. The Premier, M. Szell, declares that the failure is not the Emperor's fault, he having been most impartial, or that of his Foreign Minister, and it is more than hinted that its real origin is fear of the Kossuthites, who desire the separation of the two Monarchies. To this the Emperor will not yield, and M. Szell in his speech on the subject in- formed the House that if obstruction began he would at once appeal to the country. The Magyars have, we think, too much political sense to wish their country to stand alone, but they are obviously tired of the Triple Alliance and of the Pan- Germanism for which it serves as a shield. It is believed that even now the Emperor will be able to enforce a compromise ; but one would like to know more accurately why negotiations were broken off. The cause cannot have been slight, for patient as diplomatists are, negotiations which have lasted for five years must have involved a most unusual amount of self-control. Is the Vatican perhaps interested in keeping up discord between the two countries
