Second, the annexation of the Duchy of Oldenburg to the French empire, by that edict of Napoleon which proclaimed his seizure of the whole sea-coast of Germany, between Holland and the Baltic. Oldenburg, the hereditary territory of the Emperor Alexander's brother-in-law, had been expressly guaranteed to that prince by the treaty of Tilsit. Napoleon was asked to indemnify the ejected duke by the cession of Dantzick, or some other territory in the neighbourhood of the Grand Duchy of Warsaw; but this he declined, though he professed his willingness to give some compensation elsewhere: Thirdly, the Czar alleged, and most truly, that the state of his country made it altogether necessary that the regulations of the "continental system" should be dispensed with in his instance, and declared that he could no longer submit to see the commerce of an independent empire trammelled for the purpose of serving the policy of a foreign power. Buonaparte admitted that it might be necessary to modify the system complained of, and expressed his belief that it would be found possible to devise some middle course, by which the commercial interests of France and Russia might be reconciled. His meaning probably was, that, if their other differences could be arranged, this part of the dispute might be settled by admitting the Czar to adopt, to a certain extent, in the north of Europe, a device which he himself had already had recourse to on a large scale, for counteracting the baneful effects of his own favourite system, in his own immediate territories. Napoleon had soon discovered that, to exclude English goods and colonial produce entirely, was actually impossible; and seeing that, either with or without his assent, the decrees of Berlin and Milan would, in one way or other, continue to be violated, it occurred to him that he might at least engross the greater part of the profits of the forbidden traffic himself. This he accomplished by the establishment of a system of custom-house regulations, under which persons desirous to import English produce into France might purchase the imperial licence for so doing. A very considerable relaxation in the pernicious influence of the Berlin code was the result of this device; and a proportional increase of the Emperor's revenue attended it. In after-days, however, he always spoke of this licence-system as one of the few great mistakes of his administration. Some petty riots among the manufacturing population of the county of Derby were magnified in his eyes into symptoms of an approaching revolution in England; the consequence, as he flattered himself, of the misery inflicted on his great enemy by the "continental system"; and to the end he continued to think that, had he resisted the temptation to enrich his own exchequer by the produce of licences, such must have been the ultimate issue of his original scheme. It was, however, by admitting Alexander to a share in the pecuniary advantages