The state of Neufchatel is an independent sovereignty, allied with Switzerland; which alliance secures its independence, and every prince, on succeeding to the sovereignty, is obliged to ratify it.  The actual government is a mixture of aristocracy and democracy.  The sovereignty, which is almost a name, is inalienable and indivisible, and cannot be sold or given to a younger branch of the reigning family, without the consent of the people—­it is hereditary, and a female is capable of inheriting it.  The revenues of the sovereign arise from quitrents, fines, tithes, and the exclusive right of trout fishing in the autumn; he can, on no pretext whatever, exact any thing additional from the state, and the total of his revenue does not exceed 45,000 francs.  The prince has the disposal of all civil and military employments, not reserved particularly for popular election; he is represented by a governor, who presides at the general meetings of the estates of the principality, but has no vote unless the numbers are equally divided.  In the event of a contest relative to the succession to the principality, the Estates General are alone competent to decide between the different claimants; and the Canton of Berne has always decided any differences that may have arisen between the prince and the people respecting their particular rights.  The last time when the estates were called upon to decide between a number of claimants for the sovereignty, was in 1707, on the death of the Duchess of Nemours without issue.  Most of the claimants came in person to Neufchatel, or sent ambassadors to support their pretensions.  Amongst them were the King of Prussia, Margrave of Baden Dourlach, the Prince of Nassau, the Prince of Conde, the Marquis d’Algers, the Count of Montbeliard, &c. &c.  In bestowing the sovereignty on the King of Prussia, care was taken that he should confirm all the doubtful privileges of the people; for it is a fundamental maxim of this little state, “that the sovereignty resides not in the person of the prince, but in the state”.

The Neufchatelois are permitted to serve in the armies of any power, not at war with the Prince of Neufchatel, as such, and accordingly it has happened that they have often fought against the Prussians in the wars of Frederic the Great.  By the treaty of Tilsit, 1806, this state was severed from Prussia, and given by Buonaparte to Marshal Berthier; but the recent events have restored it to the King of Prussia, and the inhabitants seem to bear the greatest attachment to his Majesty.  I saw, in two places, the triumphal arches under which he passed in his late visit to Neufchatel.  It appears probable that this will be acknowledged as a canton by the Swiss Diet, but that the nominal sovereignty of the King of Prussia will be preserved.  The chief advantage his Majesty derives from this country is the supply of a great number of recruits to his army.  I saw a body of 1,400 soldiers, of excellent appearance, set out on their march for Prussia.