By the terms of the treaty of peace, Venetia was ceded to Italy; the old Germanic confederation was dissolved; Schleswig-Holstein became the property of Prussia; Austria consented to the formation of a North German Confederation, and a union of the South German States, from both of which confederations she was to be excluded; and the defeated power agreed to pay 40,000,000 Prussian thalers to the victor. From this sum, however, 15,000,000 thalers were deducted as the price of the Austrian claims to Schleswig-Holstein, and 5,000,000 thalers for the free maintenance of the Prussian army in the Austrian provinces from the preliminary truce to the final establishment of peace. Peace with the German allies of Austria was made at about the same time. As a result of the war, Prussia annexed the territories of Hanover, Hesse-Cassel, Nassau and the free city of Frankfort. The population of the victorious kingdom was increased by 4,285,700 people; and its area, by nearly 25,000 square miles of land. FOOTNOTE: [24] A brief sketch of the operations in Italy is given in Appendix III. APPENDIX II. THE CAMPAIGN IN WESTERN GERMANY. The surrender of the Hanoverian army at Langensalza, on June 29, 1866, left Von Falckenstein free to operate against the armies of the South German States. His army, now designated “The Army of the Maine,” numbered 45,000 men and 97 guns. Opposed to him were the Bavarian Corps, numbering 40,000 men and 136 guns, and the VIIIth Federal Corps, numbering 46,000 men and 134 guns. The former, under the command of Prince Charles of Bavaria, had concentrated at Schweinfurt; the latter, under the command of Prince Alexander of Hesse, at Frankfort. Having been informed that the Hanoverians were marching on Fulda, Prince Charles began a forward movement, to effect a junction with them at that point; but receiving later news to the effect that the occupation of Hesse-Cassel had caused the Hanoverians to turn off towards Mühlhausen, and that Prussian forces were concentrating at Eisenach, he decided to direct his march more to the right, so as to be able to operate either by way of Fulda or the Thuringian Forest [_Thüringer Wald_], as circumstances might decide. The march of the Bavarians was begun on June 22d; but much was wanting to complete their organization and equipment, and their progress was so slow that on the 26th their most advanced division had only reached Neustadt, on the Saale, scarcely twenty miles from Schweinfurt.