No. 22.
Mr. Jay to Mr. Fish.

No. 878.]

Sir: A prolonged ministerial crisis at Pesth, in the solution of which both the King and the Count Andrássy have lent their assistance, has been terminated by the” formation of a new fusion ministry, under the presidency of the Baron de Wenkheim, who has hitherto held the post of minister of the court.

The financial troubles in which, during the last two years, this empire has been involved have been especially felt in Hungary, where charges of governmental mismanagement have been blended occasionally with charges of corruption; and increasing difficulties in the collection of the revenue seemed to threaten even national bankruptcy.

Under the Bitto-Ghyczy ministry, formed by a coalition in March, 1874, to which I alluded in my No. 720, the difficulties of administration have recently seemed to have become insurmountable, and the task of forming a governmental party had to encounter not merely conflicting opinions on radical points of policy, but cliques marked by personal antagonism.

That task, however, is now said to have been accomplished.

With the Baron de Wenkheim, representing the club of the right, is associated Mr. Tisza, representing the left, who takes the portfolio of the interior.

Those of commerce and of communication, into which enter the questions of banks, the commercial convention, and the custom-house, are given to Messrs. Simonyi and Pechy.

The ministry of finance has been accepted by Mr. Szell.

The portfolio of justice, by Mr. Bela Preczel, president of the Chamber of Deputies. The ministry of worship and public instruction, by Mr. de Trefort. The minister for the defense of the country, Mr. Szende de Keveszles, and for Croatia, Count Pejacsevic, remain at their post.

The change is described as a radical transformation, Messrs. Bitto, Ghyczy, Pauler, Zichy, Szapary, and Bartal having left the ministry, and being replaced by the chief and two members of the left, and three Deakists; one portfolio remaining vacant.

The report that the Baron de Wenkheim has but temporarily assumed the presidency, reserving the right to resume his present post, if not before, in any case after the elections, is alluded to as indicating a germ of weakness in the new cabinet.

The programme * * * includes the re-establishment of the equilibrium in the receipts and expenses of the State within the limits of the present system; the realization of such economical reforms as are possible without imperiling the existence of the monarchy; the reform of justice; the re-establishment of harmony in the administration of the country; the improvement of the railway system; the fusion of the smaller railways; the largest possible augmentation of the public revenues without raising the rate of taxes; especially in counteracting the frauds and malpractices which have prejudiced the interests of the State; the making the most of the advantages conferred by the Austrian treaty of duties and of commerce, until it should be revised; and the immediate solution of the question of a bank.

The new ministry was yesterday presented to both houses of the Diet, in full Hungarian costume, and in the lower house the situation [Page 49] was discussed. There was first a speech from the new president, Baron de Wenkheim, expressing his satisfaction that he had won over men from both parties to abide by the compromise, and who appealed to the house to support the government on the ground of “our country before all.”

Mr. Simonyi, referring to the proceedings of the past week, remarked that they must not be taken as a precedent; that the Crown might take in hand the formation of a cabinet 5 and he objected to the course of the late minister, President Bitto, as not in accord with parliamentary government.

The Baron Paul Sennyey declared with excitement that he and his associates would hold an independent position toward the new government, maintaining the welfare of the country, and exhibiting a loyal and chivalric opposition. They would support the government during the difficulties of its transfer, but it must act speedily.

Mr. Bitto defended himself, and vindicated the conduct of the Crown.

Mr. Lonyay declared that his friends would support the government in measures proper for the present condition of the country, but otherwise would maintain an independent position.

Mr. Preczel, the new minister of justice, resigned, amid cheers, the presidency of the chamber, an office in which it is believed he will be succeeded by Mr. Ghyczy.

The new party has adopted the name of “The Liberal Party,” and will form a new club.

Mr. Lonyay and his friends will form a separate club.

The financial programme of the new ministry, on which a contest is expected, is not yet announced.

I have, &c.,

JOHN JAY.