The Machado Ministry did not long survive its triumph. At the beginning of December it decided that its mission was fulfilled, and that party politics again claimed their rights. It therefore resigned, and on December 11 a new Cabinet took office. The Prime Minister was Dom Victor-Hugo Azevedo Coutinho, President of the Chamber, who also took the Ministry of Marine; Dom Augusto Soares took that of Foreign Affairs, Colonel Cervera de Albuquerque that of War, and Dom Alexandro Braga that of the Interior. The Ministry was dominated by the influence of the Democrats and of Dom Affonso Costa, and was commended by the alliance with Great Britain, which was indicated as part of its policy by its organs in the Press. The Ministerial declaration (Dec. 14) contained three essential articles: (1) Defence of the Republican system of government; (2) execution of the measures determined on by the vote of November 23 regarding the war; (3) a general election as soon as possible. These elections were to take place in conformity with the method established by a decree of the Provisional Government, unless the Cortes preferred rapidly to pass a law sanctioning the schemes then before it. The Chamber approved these declarations, and passed a vote of confidence in the Government by 63 to 39. The Senate passed a vote of want of confidence by 27 to 26. Thus at the close of the year the Parliamentary situation was precisely what it had been at the opening; but, given the state of things in Portugal, it was much to have gained a year without a catastrophe or a sanguinary convulsion, for a system as frail as that of the young Republic. The fact that it had lived in spite of pessimistic predictions and hostile attacks afforded some assurance that it would last.

VI. DENMARK.

Whilst in Sweden the war effected a happy solution of an all-important question, which for years had been prominent above all other matters, it had in Denmark the very opposite effect. Instead of the determination which made the Swedes put aside their party feuds in order to arrive at a final and adequate settlement of the question of national defence, the Danish legislators agreed, in view of the war, to suspend the consideration of their leading issue, the reform of the Constitution; but, until this determination was arrived at, the reform dominated the session.

On January 8 Dr. Edward Brandes, the Minister of Finance, introduced the Supplementary Budget for the current year. It showed an additional expenditure of some 11,000,000 kroner (611,111l.), and, as usual, the report on the Budget for the next year was presented the same day, at the first sitting after the Christmas recess. The three political parties supporting the Constitutional reform, the Left, the Radicals, and the Social Democrats, had agreed to a kind of armistice, and although the Report contained 199 amendments, it was exceptionally free from matters likely to cause dissent. The Exchequer Reserve Fund on November 30 had amounted to 15,750,000 kr. (875,000l.), and the sum lent to banks, etc., to 34,364,000 kr. (1,909,111l.). On March 14 the Folkething passed the Budget. For the first time the vote was unanimous. The Social Democrats had never before accepted a Budget.

On March 17 M. Claus Berntsen, the former Premier, as Chairman of the Sub-committee on the Constitution, stated that the most important parts of the Constitutional reform were those referring to the election of members of the Rigsdag. In the Folkething the Government proposal had been maintained, viz., that the vote should be accorded to all citizens of either sex who had completed the twenty-fifth year of their age, and that proportional representation should not be established. As to the Landsthing, the discussion had shown that not only the Conservatives, but also several members of the Left in both Houses would not accept the Ministerial proposal that this House should be elected by the municipal councils. It was therefore now proposed to adopt "the principle of age," allowing all citizens of either sex to vote who had passed the age of thirty-five, and to introduce proportional representation. But persons who already possessed a vote and had completed their thirtieth year would be allowed to vote at the first election to the Landsthing. The Landsthing was to comprise ten members for Copenhagen and the adjoining municipality of Frederiksberg, forty-two would be elected by the larger divisions of the kingdom, one by the Island of Bornholm, one by the Faröe Islands, and twelve were to be appointed by the King after selection, under proportional representation, by the fifty-four elected members. The members appointed by the King under the existing system were still to retain their seats for a further term of eight years. The King would have the power to dissolve the Folkething, and might also dissolve the Landsthing, when the latter had twice rejected a measure twice passed by the Folkething, provided that a general election had taken place between its first and second passing by the latter assembly. Some questions were left open in order to leave room for discussion with the Conservatives and concessions to them. The Radicals and the Social Democrats accepted the proposal now set forth, whilst the Conservatives expressed great disappointment and surprise at the "alliance" between these two parties. Prior to this decision a number of discussions had taken place, the Premier declaring the Conservative amendments to be impossible, and a debate on them futile. The Conservatives desired that the electoral qualification should be determined by income, that the minimum age of voters should be higher, that alterations in the Constitution and in taxation should only be carried by specified majorities, and that the Landsthing should in no circumstances be subject to dissolution.

On April 7 the definitive constitutional measure was introduced in the Folkething. It was on the lines of the above proposal; and, as regarded the respective position of King and Government, it followed in the main the existing Constitution. The number of members of the Folkething is to be fixed by a special law—it must not, however, exceed 140—and this measure is also to determine the different constituencies and the mode of election. The members are to be elected for a period of four years. The Landsthing is to comprise seventy members, fifty-four elected as in the proposal above referred to, and sixteen to be co-opted by proportional representation by the fifty-four elected members, detailed rules for the proceedings to be embodied in the forthcoming Elections Bill already mentioned. Henceforward a deputy will be elected for each member of the Landsthing, to take his place if absent or succeed him in the event of his resignation or death. All persons are to have a vote in the elections to the Landsthing who have completed the thirty-fifth year of their age, and any person will be eligible for election to the Landsthing who has a vote in the election for it, provided he resides within the division for which he is a candidate. This last restriction does not apply to the sixteen co-opted members. The last clause dealt with future alterations in the Constitution, which may be introduced both during ordinary and extraordinary sessions. Should an alteration in the Constitution be accepted by both Houses and the Government desires to advance the matter, the Rigsdag is to be dissolved and a general election to both Chambers held. Should the measure be passed both by the Folkething and the Landsthing during the next ordinary or extraordinary session, in unaltered wording, and be sanctioned by the King, it will become law.

On April 17, M. Rode, Minister of the Interior, introduced the new Elections Bill in the Folkething, at the same time announcing the withdrawal of the election measure passed by the Folkething the previous autumn, and then before the Landsthing. The number of constituencies for the Folkething was fixed at 120; besides their representatives, twenty members were to be elected as follows: When the results of an election of the 120 members are known and the number of votes recorded for each party has been added up, the total number of votes recorded for the whole country is then divided by 140. The aggregate votes of the different parties are then divided by the quotient of the above-mentioned division by 140, and by this method it is determined to how many out of the 140 members each party is entitled by the aggregate number of votes cast for its candidates. It is then ascertained how many members each party has returned in single divisions and it is then calculated to how many additional members each party is entitled. Parties which have not returned any candidates are debarred from obtaining any additional members, as are parties which at the general election have returned their full number of members or more. The additional seats due to each party go to those of its candidates who were not returned, but who obtained the highest percentage of votes within a constituency.

As for the Landsthing, the fifty-four members elected by a general election are divided amongst nine electoral divisions. The mode of election resembles that existing at present, inasmuch as it is indirect, and conducted by chosen electors. At present, however, each rural municipality only chooses one elector, but for the future at least three must be elected. The rule is, one chosen elector for each 350 inhabitants, and the election is by proportional representation. Should a municipality not have the 875 inhabitants which is the minimum entitling it to three electors, it combines with its neighbouring municipality to form one electoral division. The d'Hondt method of election is used in the municipalities. The sixteen members of the Landsthing referred to above are elected for eight years, as are the other members, of whom half are elected every fourth year as at present.

The Bill came up for first reading on April 21 and was supported by spokesmen of the Left, the Radicals and the Social Democrats, although the spokesman of the first mentioned gave it a somewhat reluctant support, as his party did not favour proportional representation or an increase in the numbers of the Folkething. The Conservative spokesman was not at all satisfied. The Bill was referred to a Committee of fifteen.

On April 28 the so-called constitutional parties—those in favour of the new Constitution—held meetings confirming their agreement of April 4 and extending it to the Election Bill, "the faithful follower" of the constitutional measure. On May 6 the Folkething passed the Elections Bill with some modification as to the distribution of constituencies between the different parts of the country. It was passed by ninety-seven votes to one. The single opponent was one of the seven Conservatives, the other six abstaining, and seven members were absent. The Bill then went to the Landsthing.

In the Landsthing the spokesman of the Left, on May 13, stated that some members of his party were not greatly in favour of the Bill; the representative of the Conservatives was still less so, but the measure was promptly referred to a Committee of fifteen. The Left in the Landsthing framed a fresh Elections Bill, which, after several party meetings, was accepted by the Left, the Radicals, and the Social Democrats of both Chambers, on May 22. The new proposal, which was more provisional in character, did away with the twenty additional members of the Folkething and introduced proportional election in Copenhagen and the three largest provincial towns.

The three "Constitutional parties" now thought that all difficulties had been removed and that both Bills would be promptly passed, but on June 2 the Conservatives stopped progress in the Landsthing by leaving the House in a body before the third reading of the Elections Bill. When the division was taken thirty-three votes were recorded for the third reading, but the Chairman ruled that the division was invalid, thirty-four votes, or at least one above half the number of the Landsthing being required. The Conservatives similarly obstructed the Constitutional reform when the measure, coming from the joint committee of the two Houses, was introduced in the Landsthing for final reading on June 8. None of them were present; but the two groups (thirty-two members) forwarded a communication to the President, stating that they did not propose to attend and giving their reasons for their decision. Their chief reason was that the Elections Bill and the Constitutional reform had been linked together by the three other parties, and that the Conservatives held that the former Bill ought to be laid before the constituencies at a general election. Again thirty-three votes were recorded in favour of the Bill then before the House, and the President again declared the vote invalid.

On June 13 the Landsthing was dissolved in a Council of State, for the first time since the Constitution of 1866 came into operation. The King and the Premier differed on the question whether the dissolution also applied to the members appointed by the King for life, the King maintaining that they could not be affected by a dissolution. Eventually the Government agreed that the question should be left in abeyance until after the election, as the voting might produce a majority in the Landsthing for the measures in question independent of the life members, in which case the question might remain an open one until disposed of otherwise. Should it, however, prove necessary for the Ministry to propose to the King that he should nominate other members in order to effect the object of the dissolution—a prompt and clear decision as to the two measures—His Majesty's attitude to this proposal would decide whether the Ministry should retain office or not.

The election to the Landsthing took place on July 10. The Left gained three seats, the Radicals two, twenty-nine supporters of the two measures and twenty-five opponents being returned. The Landsthing now, with the retention of the Crown nominees as before, contained thirty-eight supporters of the two measures and twenty-eight opponents. The new Landsthing met on July 21. M. A. Thomsen was elected President, an office which the Conservatives now had to relinquish after forty-eight years of undisputed sway. The Constitutional reform and the Elections Bill were both promptly reintroduced on that day and referred to committees on the day following. On July 29 the seven Conservative members of the Landsthing Committee produced twelve amendments which the Government could not accept. Then, before a final result had been achieved, the war broke out. By mutual consent it arrested the progress of these much-discussed measures.

On August 1 the King issued a message to the nation, emphasising the strict neutrality of the Government and all responsible persons, and urging the people collectively and individually to act accordingly. On the same day, as a precautionary measure, 19,000 men were called to the colours; Danish neutrality was safeguarded by placing mines in the Belt, and the German frontier was guarded by Danish troops.

Within a few days several emergency measures were passed by the Rigsdag, including a first extraordinary vote of 10,000,000 kr. (555,555l.) for the War Minister, laws empowering the Government to prohibit the export of a number of articles and to regulate the price of articles of food, and providing State grants in support of municipal aid funds. Three of the above measures were passed by both Houses in one day, August 6, at a series of sittings, the fourth the day following. It may here be added that though great efforts were made to influence Danish opinion in favour of Germany in the war—a work in which M. Bjorn Björnson, son of the famous author, was prominent—they were by no means successful.

On August 19 the Folkething passed new rules of procedure, under which the President and the two Vice-Presidents are elected by proportional representation and a permanent financial committee is established.

The extraordinary session closed on September 22. Although the Government had determined that the Constitutional reform and the Elections Bill should be passed during the session and thus made ready for the general election, which was required in order to confirm them, the two measures were left undisposed of. A number of minor measures regulating various matters in view of the war had been passed in the meantime.

The Rigsdag assembled again at the usual time, the first Monday in October. The Budget for the next financial year was introduced in due course. The revenue side had risen to 124,930,000 kr. (6,940,555l.) against 121,337,000 kr. (6,740,944l.) in the Budget for the current year; the total expenditure amounted to 111,380,000 kr. (6,187,777l.) against 108,768,000 kr. (6,042,666l.) for the current year. From the apparent surplus of 13,500,000 kr. must, however, be deducted about 10,700,000 kr. to cover expenditure under the "acquisition of capital" clause, the final surplus thus being some 2,800,000 kr. The Minister of Finance stated that it had been difficult to draw up a Budget, in view of the uncertainty as to the development of the political crisis in Europe; he had tried to steer a sober middle course.

In a Council of State on November 30, the Minister for Iceland laid before the King proposals from the Althing for alterations in the Constitution and the flag for Iceland, asking the King to sanction them. The Althing desired that measures concerning Iceland should not be introduced, as under the existing system, in a Danish Council of State, but should be laid separately before the King as a purely Icelandic matter. This the King refused to sanction and the Minister for Iceland then withdrew the proposals.

The King next refused to sanction the proposal for a separate flag for Iceland, as he desired first to confer personally with leading politicians of the island, whom he intended to summon to Copenhagen, about the different proposals. The Minister for Iceland, M. Sigurd Eggers, then tendered his resignation, which the King accepted.

The royal meeting in Malmö (Dec. 18 and 19) caused sincere satisfaction in Denmark; King Christian and King Haakon both expressed to King Gustaf their lively pleasure in accepting his invitation. The official announcement subsequently issued briefly stated that not only had the meeting further cemented the existing good relations between the three northern kingdoms, but the negotiations had confirmed the mutual agreement existing as regarded the various special questions raised, and it had been decided to continue the co-operation so happily inaugurated when circumstances made it desirable, through renewed meetings of representatives of the respective Governments.

VII. SWEDEN.

In the political history of Sweden 1914 will stand out as remarkable in more respects than one, many anticipations were upset, and one very vital problem was at last satisfactorily solved. It afforded the Swedish nation further opportunities of manifesting its fervent patriotism, and its different phases produced dramatic incidents of singular interest. That the European War also set its stamp on much of the history goes without saying.

The great speech delivered by M. Staaff, the Premier, at Karlskrona (Dec. 21, 1913), had further stimulated public interest in the problem of national defence, and M. Staaff's disinclination to grapple promptly with the entire question excited an opposition which was encouraged in many ways and grew rapidly, manifesting itself especially amongst the ancient and proud class of freehold peasant farmers.

The Riksdag was opened as usual on January 16. The new Budget caused some apprehension, inasmuch as it reached the formidable total of 311,461,200 kroner (17,303,400l.), an apparent increase compared with 1913 of some 37,000,000 kr. (2,055,555l.). The revenue comprised 212,367,600 kr. from taxes, etc., 50,733,800 kr. from the State's productive funds (railways and other investments), 7,500,000 kr. share of the Rigsbank's profit for 1913, 1,226,100 kr. sundry minor items and 39,633,700 kr. loans. The increase was mainly from taxes, etc., viz. about 35,000,000 kr., new items of importance being the tobacco tax and the yield from spirits under the new system. On the debit side the ten different departments accounted for 167,718,271 kr. ordinary and 46,362,729 kr. extraordinary expenses, making a total of 214,081,000 kr. (11,893,388l.). Interest on national debt, etc., amounted to 27,042,000 kr., fund reserved for defence expenditure to 5,000,000 kr., and expenditure for increase of capital 63,807,100 kr., etc. Most branches of expenditure showed an increase.

The chief question which marked the year, that of national defence, became prominent almost at once. On the first day of the so-called "Remisse" debate, January 23, in a crowded house, with the Crown Prince and Prince Eugen amongst the listeners, Professor Trygger in the First Chamber and the ex-Premier, Admiral Lindman, in the Second, severely criticised the Government policy of defence. Professor Trygger vehemently denounced it as lacking in clearness, energy, and consistency, the two features he most condemned being those relating to the period of drill for the infantry and to the increase of the number of ironclads. The defence tax the Conservatives would gladly bear, if the money were effectively applied. Admiral Lindman spoke in a similar vein, pointing out that the Riksdag could never wish for a higher task than the satisfactory solution of the defence question, but things did not promise well. An unprecedented responsibility, said M. Lindman, at this moment rested upon the Government. If it would, it could really solve the defence question, but would it? Was it altogether a vain hope, that the Government and a majority in the Riksdag might be seen working together on this question, firmly resolved to raise it above other questions, above party ties, in unity for the sake of the Fatherland? M. Staaff spoke in both Chambers, reiterating the substance of his Karlskrona speech, and he was supported by the Liberal spokesmen, the Social Democrats speaking in their usual vein. The proceedings gave little hope of the desired solution.

Meanwhile the preparations for a national demonstration, such as had rarely, if ever, been witnessed, were progressing, and on February 6 some 30,000 "peasants" (the Swedish peasant has always been ready, when his country called upon him) from all parts of the country arrived in Stockholm—admirable arrangements being made for their journey, reception, and accommodation—to wait upon the King and give expression to their patriotism and zealous desire to see the defence of the country promptly and adequately provided for. From time immemorial, it must be remembered, the Swedish peasant has frankly gone to his King when he was in trouble or had something special at heart. King Gustaf's reply to the effect that he would abide by the demands of the naval and military experts raised a twofold storm, of loyal enthusiasm within the defence parties, of dissent and anger amongst the Liberals and Social Democrats. The supporters of the Government maintained that the King had gone beyond the purpose of the great peasant demonstration, and that he wanted to bring his personal influence to bear upon the development of the question, irrespective of the Constitutional Government. The Liberal party at once held a meeting, and determined that the Ministry should in any case await further developments, and the next day the Social Democrats in the Riksdag demonstratively showed their displeasure in the debate on the King's civil list.

Demonstration now followed upon demonstration. Two days after the imposing peasant procession the Social Democrats arranged a counter move, and had no trouble in mustering a similar number, aided, to some extent, by their women and children. M. Staaff and some of his colleagues received a deputation from the Social Democratic procession, headed by Mr. Branting as spokesman, who handed an address to the Premier, demanding a reduction of the military burdens and insisting that the Swedish people never would yield to demands from a personal Monarchy; only the will of the people should rule in Sweden. M. Staaff in his reply maintained the necessity of national defence, declaring that the principles of democracy were as sacred to him as to them.

The day following a vast number of the leading representatives of Swedish science, art, and literature decided to present an address to the King, thanking His Majesty for having, through his firm words to the peasants' procession, maintained the King's ancient and constitutional right to represent the country's highest interests, irrespective of party politics.

Sooner, probably, than was expected came the result of the King's message to the peasants. M. Staaff, the day after the Royal speech, forwarded to the King a lengthy communication, to the effect that the measures of defence which the Government was about to lay before the Riksdag, though very comprehensive, yet might not fulfil all the expectations or demands of the military authorities. The King, however, in his message to the peasants, had said that he "would not abandon the demands as to the efficiency and readiness of the field army," "which by the experts within my army are stated to be indispensable." M. Staaff wanted to know whether the King would refuse to sanction any proposal which did not fully comply with these demands, and whether His Majesty in any respect had made up his mind beforehand as regarded the impending proposals, before his constitutional advisers had had an opportunity of humbly submitting their proposals and the views which had prompted them. The King replied that, as he had not seen the Government proposals or the experts' opinion upon them, he could not yet answer that question. (Hence the King could not have made up his mind beforehand.) To the second question the King's reply was to the effect that it was evident that he had not beforehand made up and could not make up his mind in any question, without first hearing the statements of his constitutional advisers or their proposals in Council.

This answer was not considered satisfactory by M. Staaff, who again addressed a communication to the King containing a drafted reply to be signed by His Majesty, stating amongst other things that his speech to the peasant procession was in no way intended to have the character of an act of State. The King's reply was in the main a short repetition of his answer to the former communication. A third letter from M. Staaff asked the King, when he intended to make any public statement of a political nature, to communicate it beforehand to the Government. The King replied, that he could not consent to this, as he would not deprive himself of the right to speak untrammelled to the people of Sweden.

The Staaff Ministry then resigned (February 10). On the day following some 5,000 Swedish students, in a great and enthusiastic procession, waited upon the King, and were greeted on their way to the palace with the utmost enthusiasm. In answer to their loyal and patriotic homage the King made a lengthy reply, maintaining at the outset his constitutional right and duty to state openly and without restraint his opinion of what he thought was for the good of his people; and, having urged the youth of the nation to assist him in his labours, the King wound up by saying: "Forward to our goal; a free and strong Sweden!" The proceedings were altogether marked by the most spontaneous enthusiasm.

The same day M. Staaff made a lengthy statement in the Second Chamber; the Liberals placed the responsibility upon the new Cabinet, and M. Branting, on behalf of the Social Democrats, thanked the retiring Government.

The formation of a new Ministry, as might have been expected, did not prove easy. Baron de Geer tried, but failed, and on February 13 the King entrusted M. Hammarskjöld with the task. Whilst Baron de Geer had tried to form a purely Liberal Ministry, M. Hammarskjöld, who had been a member of two previous Governments and Swedish Minister in Copenhagen, favoured the formation of a Conservative Ministry; the King, however, asked him to attempt the formation of a Liberal Government. On the 16th M. Hammarskjöld had his list ready as follows: M. Hammarskjöld, Premier and War Minister; M. K. Wallenberg, a well-known banker, Foreign Affairs; M. B. Hasselrot, President of one of the Courts, Minister of Justice; M. D. Broström, a large steamship owner, Minister of Marine; M. O. P. von Sydow, Interior; Baron J. G. Beck-Friis, Agriculture; M. A. F. Vennersten, Finance; Professor G. Westman, Ecclesiastical Minister; and Colonel B. Murcke, M. S. I. Stenberg, and M. S. N. Linner, Consulting Ministers. It may be noted that M. Wallenberg is the first Swedish Foreign Minister not of noble birth. The Hammarskjöld Ministry, admittedly, counted amongst its members some very able and distinguished men. It was formed solely to solve the defence problem.

The Riksdag was promptly dissolved (March 5), the Government at the same time publishing its manifesto or defence programme. The latter contained the various items embodied in the proposals of the defence committees, with the so-called "winter-line,"[28] coupled with the adoption of the Sverige type of warship. On the 11th the Liberal Union issued their manifesto, also containing the Defence Committee's proposals, but with the "summer-line" and leaving the naval plan in abeyance, as the committee had not completed its report on the Fleet; this programme consequently kept all which had been promised in the Karlskrona speech.

Ultimately the Ministerial programme was substantially as follows. The period of training for the Army was extended to 250 days (Nov. to July) with courses of thirty days each in four subsequent years. To the Navy were to be added two new divisions of four warships each for coast defence, the Sverige being included in the first; sixteen destroyers, two divisions of sea-going submarines, and two divisions of torpedo-boats.

An electioneering campaign followed, more violent and passionate than Sweden had ever witnessed, and perhaps rather disproportionate to the actual differences between the combatants. But there were, no doubt, deeper political instincts and influences at work. The result was a most serious set-back for the Liberals; most of the seats they lost went to the Conservatives, the rest to the Social Democrats. The respective strength of parties in the former or "A" Riksdag had been: Right 65, Liberals 101, Social Democrats 64; in the new or "B" Riksdag, the Right took the first place with 86 seats, the Social Democrats had 73, whilst the Liberals had become the smallest party, with but 71. The Left or Liberal joint majority in both Chambers, however, had not disappeared, though reduced from 76 to 34.

The new Riksdag assembled on May 18, and was occupied solely with the question of national defence. M. Staaff presided over the deliberations of the Defence Committee in a manner for which even his staunchest opponents felt it right to compliment him. Meantime no progress could be made, no solution reached, and even distinctly Liberal organs urged a speedy settlement, even if the demand for strictly Parliamentary Government must be postponed. The defensive programme set forth by the Social Democrats found no support whatever outside their own party.

On June 13 the Government introduced the Bill imposing a special tax for national defence. This tax is charged on income and capital jointly, according to a comprehensive sliding scale, the taxed sum comprising 10 per cent of capital; an income of at least 5,000 kr. is taxed on its full amount; on smaller incomes the tax is degressive, on larger it is progressive, the limit being reached at incomes exceeding 250,000 kr. (13,888l.), a sum which is increased, for purposes of taxation, by 1,250 per cent. The tax is 1 per cent. of the taxed amount; in other words, instead of increasing the percentage, the amount is increased. The measure in question devoted about 37,000,000 kr. (2,055,555l.) to land defence and 24,000,000 kr. (1,333,333l.) to naval defence, the expenditure being non-recurrent. The entire revenue from the defence tax was estimated to amount to 75,000,000 kr. (4,166,666l.).

Eventually the Liberals went a considerable way towards meeting the Government, declaring themselves ready to accept the ironclads of the Sverige type and to extend the "summer-line" drill period from 280 to 310 days, the additional thirty days to be applied, ten for the extension of winter drill and the balance to the drill of the older classes in accordance with the Ministerial proposal. The Ministerial party, or rather the distinctly Conservative section, declined to accept this offer, which gave a month less for the period of drill than that of the Government. The offer of the Liberals to go beyond the Karlskrona programme was made just as the European War began; the Social Democrats now also rallied to the support of the Government. Their leader, M. Branting, at a large meeting of his party, telegraphed to M. Hammarskjöld, offering his support in the efforts to preserve and defend the neutrality of Sweden, and assuring the Premier that he might "reckon upon the confidence of a united people." M. Hammarskjöld at once telegraphed back an appreciative acknowledgment.

An interesting incident of the controversy was the exchange between M. Staaff and M. Hammarskjöld of open and exceedingly friendly letters, truly Swedish in tone and essence. The former gave hopes of a speedy settlement of the defence question, which soon were to be realised. Towards the end of August the delegates of the different parties, who had discussed the question with the Premier, arrived at an understanding; it only remained for the entire Defence Committee to give its sanction, which was a foregone conclusion, and on September 12 the great and all-important defence question was happily solved, the Government proposal, with immaterial modifications, was passed in the First Chamber without any division, and in the Second by 127 to 70, 23 votes being void. When fully established the new scheme will involve an annual expenditure on the Army of some 64,500,000 kr. (3,583,333l.) as against 55,250,000 kr. (3,069,444l.) and on the Navy of 26,000,000 kr. (1,444,444l.), an increase of some 4,000,000 kr. (or 222,222l.); besides this, some 4,000,000 kr. were applied to the coast artillery.

At the same time as the defence question engrossed the interest of the Riksdag, the necessary measures were passed to emphasise and support the neutrality of Sweden. On August 12 the Riksdag unanimously voted 50,000,000 kr. as extraordinary expenditure for defence on account of the international situation, and the Ministerial declaration as to the observance of strict neutrality met with the fullest support.

The dissolution of the Second Chamber and the consequent election were followed by a general election in September, the existing Riksdag, however, remaining in function. This general election confirmed the trend of the spring election by further reducing the Liberal members; the seats they lost were gained by the Social Democrats, who now constituted the largest party, 87, the Right remaining at 86 and the Liberals being reduced to 57. As a result the Social Democrats at a party congress somewhat vaguely declared, by 90 votes against 58, their willingness to accept the responsibility of government, jointly with the Left.

Some other military measures were disposed of, as were several railway bills, a Schools Inspection Bill, and other legislation. The most important bill passed was one making the tobacco industry and trade a State monopoly, calculated to yield a very material revenue. The scheme is to be worked through a huge limited company, beginning operations about the middle of 1915, and in which the State is to be heavily interested financially and will exercise the necessary control. The great total abstinence reform, which had a warm defender in M. Staaff, was frustrated through the inability of the Chambers to agree upon the question of local veto, but the temperance movement is being furthered in many ways. The same fate befell the Women's Suffrage Bill; the Second Chamber had passed it by 107 to 84, whilst the First Chamber negatived it by 76 votes to 46.

After an unusually long session, lasting nominally seven months, though from the end of September there had been no regular sittings, the "B Riksdag" was prorogued on December 17.

A Germanophil movement was headed by M. Sven Hedin, the famous explorer (A.R., 1913, p. 386), and found support in the fear inspired by Russian military preparation for some years past in Finland, in the propagation of war news from German sources, and in the close commercial relations subsisting with Germany. But there were indications of a change of feeling before the end of the year.

Sweden, like her Scandinavian neighbours, has jealously guarded her neutrality, large portions of the reserve and other classes being promptly called under arms. Her declaration of neutrality was followed within a few days by an undertaking with Norway that the one country should not take hostile action against the other.

The feeling of cordiality and joint interests between Sweden, Denmark and Norway was further emphasised and consolidated by the meeting of the three Kings, accompanied by their Foreign Ministers, in Malmö (Dec. 18), at the invitation of King Gustaf, an act of the Swedish King which caused the deepest satisfaction in the three countries. It was called partly to deal with the economic hindrances set up by the war to the trade of the three countries, and the official communication announcing its results stated that it had been agreed to continue the co-operation.

King Gustaf underwent a serious operation on April 9, with eminently satisfactory results. His severe illness and subsequent recovery afforded opportunities for the display of their abundant loyalty by his people.

VIII. NORWAY.

The centenary of the recovery by Norway of her independence as a kingdom made the year notable in other respects than the political. The centenary exhibition demonstrated most effectively the wonderful growth of Norway's resources during the past century.

The Storthing assembled on January 12. M. Lövland was re-elected President of the Storthing and M. Mowinckel of the Odelsthing. On the following day the King in person opened the sixty-third ordinary Storthing. After a reference to the centenary and the century of peace enjoyed by the nation, he stated that the past year had been satisfactory in most departments of home enterprise, and announced a number of measures for the furtherance of industry and commerce; the Budget had been framed without resort to fresh taxation. It showed an ordinary expenditure of 154,900,000 kroner (8,605,555l.) and an extraordinary of 15,081,000 kr. (837,833l.), a total of 169,981,000 kr. (9,443,388l.). The ordinary expenditure showed an increase of 12,880,000 kr., reduced by certain counter-items to 7,300,000 kr. On the revenue side certain taxes and other sources of income exhibited an increased yield over that of the previous year. Even thus early M. Castberg, the Minister for Commerce, expressed views diverging from those of his colleagues: he desired a higher income tax and legacy duties and a reduced Customs tariff.

On January 20 the Government introduced a proposal to appoint a Defence Commission of fourteen civilian members, with the right, however, of calling in military experts. The Commission was to investigate all questions connected with national defence, both military and financial, and examine into the possibility of adopting a system on Swiss lines in order to effect a closer connexion between the Army and the nation.

During the debate on the Customs tariff in February the Premier caused some surprise by not attending the Storthing, and it was understood that on this subject M. Castberg had managed to override his chief. In the debate on the Labour Arbitration Bill, again, M. Knudsen, the Prime Minister, had to humour his troublesome colleague by stating that, in view of the undoubted divergences of opinion on the arbitration clause, he felt sure that both the Government and the Storthing would be most careful in resorting to compulsory arbitration. They would let the contest between employers and employed go on until both sides felt that the struggle must be ended and that the authorities must interfere. M. Castberg declared himself much reassured, and hoped that the statement meant that the new institution should be used, when the men themselves demanded it, for the protection of their interests. Nevertheless he continued to emphasise his divergent views as against the more moderate members of the Government, more especially the Premier, not only in the House but at public meetings; and on April 16 this very Radical Social Minister resigned his seat in the Cabinet, preferring to work as a private member for his aims and ideals. He differed also from M. Gunnar Knudsen on the question of maximum working hours, insisting on a nine hours' day and a fifty-one hours' week, whereas the latter would not go beyond a ten hours' day and fifty-four hours' week.

On February 28 the Storthing rejected the proposal of M. Bryggesaa, the Minister for Ecclesiastical Affairs, to annul Clause 7 of the Constitution, empowering the King to propose a successor, should there be no heir. In the same sitting the Storthing also rejected the proposal to make women eligible as Ministers of State, although M. Abrahamsen, the Minister of Justice, defended the proposal. The adverse minorities were respectively 41 and 44.

On April 23 the Storthing considered the exploitation of the large Nore waterfalls, owned by the State; general disappointment was felt when M. Urbye, the Minister of Public Works, stated that the plans had not yet been finally dealt with, and therefore would not come before the House in the current session.

In the beginning of May the Military Committee of the Storthing handed in their report on the Army Estimates, amounting to 17,550,500 kr., an insignificant fraction less than the sum proposed by the War Department. There were to be no more Generals, the field artillery regiments were each to be divided into three, and the extension of the regimental drills from twenty-four to thirty days would be dealt with in a separate Bill.

On May 13 the Storthing, by 78 votes to 44, decided to divide the Parliamentary session, in accordance with the decision in the Union of the Left, the Government stating that they, too, were in favour of an autumn session, although they did not give their reason. Several Committees were to continue their labours during the recess.

On June 9 the Storthing, by 85 votes to 25, passed a resolution, requesting the Government to see that all alcoholic drinks were prohibited at all military and naval practices, for all ranks alike. The resolution, however, was not acted upon.

On June 26 the Storthing decided that the principal naval dockyard should be extended and that two submarines should be built at Norwegian yards. On July 4 the proposal to appoint a Defence Commission was passed by the Storthing, the adverse minority being 35. The Premier stated that the most important question for the Commission to consider was whether more effective results could not be obtained for the actual military expenditure. More especially the Swiss system should be borne in mind. On July 6 the Storthing unanimously passed the new extraordinary defence tax on income exceeding 4,000 kr. (222l.) and capitals exceeding 100,000 kr. (5,555l.). The tax is to be levied according to a sliding scale, which deals somewhat leniently with incomes not exceeding 10,000 to 15,000 kr. (555l. to 832l.). The measure is subject to revision as regards the fourth term of the tax, and will thus come up for further consideration hereafter.

Just before the close of the session (July 3), the Premier made a Cabinet question of a vote of some 250,000 kr. for the instruction of small holders, a question to which he had given much time and attention. M. Hagerup-Bull, the Conservative spokesman, complained that Cabinet questions were getting rather too frequent. The measure was duly passed.

The session was closed on July 8. The Storthing was to meet again on October 19, but the war altered its arrangements entirely. The results of the six months' work were very moderate, and some of the Government measures were severely criticised and left for subsequent revision.

The war, however, necessitated a short extraordinary session, and the Storthing met again on August 8, a circumstance which was in itself a telling comment on an unfortunate reference by the Premier in the spring "to the cloudless sky of Europe." The War Minister (M. Keilhart) resigned the same day and was succeeded by General Holtfodt, Norway's youngest General. A vote of 10,000,000 kr. (555,555l.) for extraordinary military measures was promptly passed and other measures were adopted in view of the situation. A general moratorium had already been proclaimed; the Government was empowered to extend it, and to render the notes of the Bank of Norway temporarily inconvertible into gold. Much satisfaction was expressed at what might be described as a declaration of confidence between Norway and Sweden. Before the members separated the President emphasised the spirit of unity which had marked the proceedings during the short extraordinary session, all contentious questions being for the present left entirely in abeyance. Under these circumstances the work done later on was confined to some committees which meet in October. All the important measures, including a revision of the law on insurance against sickness, an extension of the Bank for workmen and small holders, and a comprehensive measure of reform of factory legislation, were left for a more favourable season, politically and financially. Naturally a drain on the Treasury is set up in many ways, directly and indirectly, by the war.

The Storthing of 1914 formally closed its session at a meeting on January 8, 1915. In spite of a very active German propaganda, the national feeling tended to favour the cause of the Allies.

The Spitzbergen Conference was opened in Christiania on June 16. Twenty-three representatives were present from nine countries (Great Britain, the United States, Russia, France, Holland, Germany, Denmark, Sweden and Norway). The conference had not completed its labours when the war broke out, and separated with the understanding that it would again meet early in 1915.