neutral flag (several hundred English ships arrived under the American flag), and prohibiting the importation of French manufactured goods. Not many weeks previously, on the 13th of December, Napoleon had annexed Oldenburg to France. The duke, Peter, was nearly related to the emperor of Russia, and Napoleon, notwithstanding his declared readiness to grant a compensation, refused to allow it to consist of the grandduchy of Warsaw, and proposed a duchy of Erfurt, as yet uncreated, which Russia scornfully rejected. The alliance between Russia, Sweden, and England was now speedily concluded. Sweden, who had vainly demanded from Napoleon the possession of Norway and a large supply of money, assumed a tone of indignation, threw open her harbors to the British merchantmen, and so openly carried on a contraband trade in Pomerania that Napoleon, in order to maintain the continental system, was constrained to garrison Swedish-Pomerania and Rugen, and to disarm the Swedish inhabitants. Bernadotte, upon this, ranged himself entirely on the side of his opponents, without, however, coming to an open rupture, for which he awaited a declaration on the part of Russia. The expressions made use of by Napoleon on the birth of the king of Rome at length filled up the measure of provocation. Intoxicated with success, he boasted, in an address to the mercantile classes, that he would in despite of Russia maintain the continental system, for he was lord over the whole of continental Europe; that if Alexander had not concluded a treaty with him at Tilsit he would have compelled him to do so at Petersburg.--The pride of the haughty Russian was deeply wounded, and a rupture was nigh at hand. Two secret systems were at this period undermining each other in Prussia, that of the _Tugendbund_ founded by Stein and Scharnhorst, whose object being the liberation of Germany at all hazards from the yoke of Napoleon, consequently, favored Russia, and that of Hardenberg, which aimed at a close union with France. Hardenberg, whose position as chancellor of state gave him the upper hand, had compromised Prussia by the servility with which he sued for an alliance long scornfully refused and at length conceded on the most humiliating terms by Napoleon.[1]