No. 133.
Mr. Bancroft to Mr. Fish.

No. 298.]

Sir: The session of the German Parliament will be closed on Saturday next. One of its measures was to lay aside forty millions of thalers in specie as a fund not to be used for any purpose but preparations for a campaign on the outbreak of a war. Such a reserve brings with it a [Page 185] loss of two millions a year, but the measure was adopted by a great majority.

On the reform of the coinage there was a great diversity of opinion. The result has been the adoption of the measure proposed by the government, though not without some variation. The act contemplates a transition period to be followed by a definitive act establishing one uniform currency for the German Empire. The thaler and the groschen are abolished; the unit of currency is fixed at the mark, ⅓ of the thaler, about 24 cents. The mark is divided into 100 parts, as the franc in France. During the interim gold and silver are alike legal tender, the relation of gold to silver being, as in France, 15½ to 1. All gold coinage now in circulation and under weight will be withdrawn, and the old silver coinage is likewise gradually to disappear. The right to coin is not reserved exclusively to the Emperor.

The reason assigned by the German government is that one single mint could not issue the new coin fast enough to meet the public wants, and therefore every state which has a mint must take part in coining the new pieces.

A very large minority were in favor of an international coinage, but an amendment tending to that result was voted down.

The measure therefore does no more than regulate and unify the coinage of the German Empire.

On the part of Bavaria a measure has been proposed taking from the pulpit any immunity it may have had as a disseminator of sedition or treason, rendering preachers amenable to law.

The Catholics in this kingdom, constituting about one-third of the population, have always been treated by the Prussian government with forbearance and even with favor, and by the conservative party were esteemed and almost cherished as allies. But the new dogma has led to complications that have disturbed the former state of tranquillity.

In a public School the Catholics attempted the dismissal of a Catholic teacher who declined to accept the dogma of infallibility, and the government refused to remove him for that cause.

The Catholic bishops, most of whom before going to the late council were opposed to the new dogma, proceeded to address the King directly, and claim his interposition to save them from what they called an interference with the liberty of conscience. The King was most reluctant to be brought into controversy with the Roman Catholic prelates. But being forced to reply, he took his ground with decision. Fully asserting the principle of religious liberty, he reminded the bishops that they did not even pretend that any law had been infringed, reproved them for exciting discontent in the Catholics in Prussia, and offered them no way to a change except through the established constitutional channels.

I am, &c,

GEO. BANCROFT.