The Schleswig-Holstein Difficulty--Austria favours a Settlement--Bismarck's Terms rejected--His high-handed Proceedings--Convention of Gastein--Bismarck at Biarritz--The Italian Treaty--Question of Disarmament--Fresh Austrian Proposals--Bismarck advocates Federal Reform--La Marmora's Perplexity--He abides by Prussia--Efforts of the Neutral Powers--Failure of the projected Congress--Rupture of the Gastein Convention--The War begins--The rival Strengths--Distribution of the Prussian Armies--Collapse of the Resistance in North Germany--Occupation of Dresden--The Advance of the Prussian Armies--Battle of Königgratz--Cession of Venetia--Italian Reverses--The South German Campaign--Occupation of Frankfort--The Defence of Vienna--French Mediation--The Preliminaries of Nikolsburg--Treaty of Prague--Conditions awarded to Bavaria and the Southern States--The Secret Treaties--Their Disclosure--Humiliation of the French Emperor--His pretended Indifference 418 CHAPTER XXVIII. THE REIGN OF VICTORIA (_continued_). Parliamentary Reform--Mr. Disraeli's Resolutions--Mr. Lowe's Sarcasms--The "Ten Minutes" Bill--Lord John Manners' Letter--Ministerial Resignations--Mr. Disraeli's Statement--The Compound Householder--The Fancy Franchises--Mr. Gladstone's Exposure--Mr. Lowe and Lord Cranborne--The Spirit of Concession--Mr. Gladstone on the Second Reading--Mr. Gathorne Hardy's Speech--Mr. Bright and Mr. Disraeli--The Dual Vote abandoned--Mr. Coleridge's Instruction--The Tea-Room Cabal--Mr. Gladstone's Amendment--His other Amendments withdrawn--Mr. Hodgkinson's Amendment--Mr. Disraeli's _coup de théâtre_--Mr. Lowe's Philippic--The County Franchise--The Redistribution Bill--Objections to It--The Boundaries--Lord Cranborne and Mr. Lowe--Mr. Disraeli's Audacity--The Bill in the Lords--Four Amendments--Lord Cairns's Minorities Amendment--The Bill becomes Law--The "Leap in the Dark"--_Punch_ on the Situation--The Scottish Reform Bill--Prolongation of the Habeas Corpus Suspension Act--Irish Debates--Oaths and Offices Bill--Mr. Bruce's Education Bill--The "Gang System"--Meetings in Hyde Park--Mr. Walpole's Proclamation and Resignation--Attempted Attack on Chester Castle--Attack on the Police Van at Manchester--Explosion at Clerkenwell Prison--Trades Union Outrages at Sheffield--The Buckinghamshire Labourers--The French Evacuation of Mexico--The Luxemburg Question--The Austrian Compromise--Creation of the Dual Monarchy--The Abyssinian Expedition--A Mislaid Letter 433 CHAPTER XXIX. THE REIGN OF VICTORIA (_continued_).