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Actually, the Carnival of Venice (the Venetian Mardi Gras) was suppressed by French and Austrian invaders during the Napoleonic wars and not revived until 1979. The photo was more likely taken during the annual Regatta Storica, held in September, which features a water parade of decorated gondolas and large boats.
Source:
The Carnival of Venice with its fancy gondolas. Photo by Gribayedoff.
Outing magazine, vol. LI no. 6, March, 1908, p. 650.