Bismarck now showed himself astute in victory. Having ousted Austria from Germany, he had no wish to wreak a vengeance that she could not forgive. Taking none of her provinces, he exacted only a small indemnity. With the German states he was equally discriminating: those which had been inveterately hostile he annexed to Prussia; the others he let off with a fine. He set up the North German Confederation, embracing all the states north of the river Main, in place of the old German Confederation; and thus Prussia, which had now two thirds of the population of Germany, was undisputed master. The four South German states, Bavaria, Würtemberg, Hesse, and Baden, signed a secret treaty, by which they gave the Prussian King the command of their troops in case of war. Europe, which had witnessed with astonishment these swift proceedings, understood now that a great reality had arisen, and that Bismarck was its heart. In France, surprise gave way to indignation. Were not the French the arbiters of Europe? How had it happened that their Emperor had permitted a first-rate power to organize without their consent? Napoleon III, who knew that his sham empire could last only so long as he furnished his restless subjects food for their vanity, strove to convince them that he had not been outwitted; that he still could dictate terms. He demanded a share of Rhineland to offset Prussia’s aggrandizement; Bismarck refused to cede a single inch. Napoleon bullied; Bismarck published the secret compact with the South Germans. Napoleon forthwith decided that it was not worth while to go to war. We have all heard of the sportsman who boasted of always catching big strings of fish. But one day, after whipping every pool and getting never a trout, he was fain, on his way home, to stop at the fishmonger’s and buy a salt herring for supper. Not otherwise did Napoleon, who had been very forward in announcing that he would _take_ land wherever he chose, now stoop to offer to _buy_ enough to appease his greedy countrymen. He would pay ninety million francs for Luxemburg, and the King of Holland, to whom it belonged, was willing to sell at that price; but Bismarck would consent only to withdraw the Prussian garrison from the grand duchy, after destroying the fortifications, and to its conversion into a neutral state. That was the sum of the satisfaction Napoleon and his presumptuous Frenchmen got from their first encounter. A few years before, Napoleon, who had had frequent interviews with Bismarck and liked his joviality, set him down as “a not serious man;” whence we infer that the Emperor was a dull reader of character.