An American who should arrive in Pesth fancying that he was about to see a specimen of the dilapidated towns of "effete and decaying Europe" would find himself vastly mistaken. The beautiful and costly modern buildings on every principal street, the noble bridges across the vast river, the fine railway-stations, the handsome theatres, the palatial hotels, would explain to him why it is that the citizens of Pesth speak of their town as the "Chicago of the East." There was a time when it really seemed as if Pesth would rival, if not exceed, Chicago in the extent of her commerce, the vivacity and boldness of her enterprises and the rapid increase of her population. Austria and Hungary were alike the prey of a feverish agitation which pervaded all classes. In a single day at Vienna as many as thirty gigantic stock companies were formed; hundreds of superb structures sprang up monthly; people who had been beggars but a few months before rode in carriages and bestowed gold by handfuls on whoever came first. The wind or some mysterious agency which no one could explain brought this financial pestilence to Pesth, where it raged until the _Krach_--the Crash, as the Germans very properly call it--came. After the extraordinary activity which had prevailed there came gloom and stagnation; but at last, as in America, business in Pesth and in Hungary generally is gradually assuming solidity and contains itself within proper bounds. The exciting period had one beneficial feature: it made Pesth a handsome city. There are no quays in Europe more substantial and elegant than those along the Danube in the Hungarian capital, and no hotels, churches and mansions more splendid than those fronting on these same quays. At eventide, when the whole population comes out for an airing and loiters by the parapets which overlook the broad rushing river, when innumerable lights gleam from the boats anchored on either bank, and when the sound of music and song is heard from half a hundred windows, no city can boast a spectacle more animated. At ten o'clock the streets are deserted. Pesth is exceedingly proper and decorous as soon as the darkness has fallen, although I do remember to have seen a torchlight procession there during the Russo-Turkish war. The inhabitants were so enthusiastic over the arrival of a delegation of Mussulman students from Constantinople that they put ten thousand torches in line and marched until a late hour, thinking, perhaps, that the lurid light on the horizon might be seen as far as Vienna, and might serve as a warning to the Austrian government not to go too far in its sympathy with Russia. [Illustration: CITADEL OF BUDA]