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Although Dreyfus was again convicted by a military court, he was immediately pardoned by the President. OTHER COUNTRIES. After 1897 the situation in Austro-Hungary became precarious, owing to the difficulties which arose when the time came to renew the Ausgleich, or agreement, between Austria and Hungary, first made in 1867. Neither portion of the empire was satisfied with its part of the bargain.

At this he chuckled heartily to himself: so the rest of us laughed too: the thing was too absurd. But the Authority, who was a man of nice distinctions and genuinely anxious to instruct us, was evidently afraid that he had overstated things a little. "Mind you," he said, "there'll be something left certainly the Zollverein and either the Ausgleich or something very like it."

"Precisely," he said, "I see your drift exactly. You say what is the Ballplatz? I reply quite frankly that it is almost impossible to answer. Probably one could best define it as the driving power behind the Ausgleich." "I see," said Rapley. "Though the plain fact is that ever since the Herzegovinian embroglio the Ballplatz is little more than a counterpoise to the Wilhelmstrasse."

The Ausgleich between Austria and Hungary and Hungary and Croatia opened in 1868 a period which ended in 1905 it was a period, on the one hand of the greatest decay and decomposition in the political life of the Jugo-Slavs, and, on the other, of the greatest literary and intellectual unity as shaped by Bishop Strossmayer and Peter II and Nicholas of Montenegro.

Under the Ausgleich or Compromise of 1867 the Dual Monarchy is composed of two equal and separate States, the Empire of Austria and the Kingdom of Hungary, each possessing a distinct parliament and cabinet of its own, but both sharing between them the three Joint Ministries of Foreign Affairs, War, and Finance.

Bismarck, Francis Joseph, and Andrassy were swayed by differing motives whose total result was that Austria was to become a Balkan power the outpost of the German Drang nach Osten and that it was worth while making a greater Serbia impossible, even at the cost of increasing the number of Slavs in the Habsburg monarchy, which, now reenforced by the Ausgleich, could stand the strain of advancing democracy and the necessity, therefore, of granting further rights to the Slavs.

All of the men gave a sort of sigh of relief. It was certainly something to have at least a sort of resemblance or appearance of the Ausgleich among us. We felt that we were getting on. One could see that a number of the men were on the brink of asking questions. "What about Rumania," asked Nelles he is a banker and interested in government bonds "is this the end of it?"