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and in recognition of the friendly intention of the Austro-Hungarian Government, appointed you, by and with the advice and consent of the Senate, to be ambassador extraordinary and plenipotentiary of the United States to Austria-Hungary.

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I am, etc.,

JOHN HAY.

Mr. McCormick to Mr. Hay.

No. 1.]

UNITED STATES EMBASSY,

Vienna, June 30, 1902. Sir: I have the honor to acknowledge the receipt of Department's No. 46 acquainting me, as previously done by cable of the 29th ultimo, that the President has appointed me, by and with the consent of the Senate, to be ambassador extraordinary and plenipotentiary of the United States to Austria-Hungary, and inclosing my commission in that capacity and the letter of credence, with office copy, addressed to His Majesty the Emperor, and also inclosing new letters of credit in duplicate and oath of office.

The office copy of the letter of credence I sent to the foreign office, at the same time asking that I be granted an audience with His Majesty for the purpose of presenting the original. In my note inclosing the office copy I embodied a copy of the address which I proposed to make to His Majesty the Emperor, and which reads as follows:

It is with peculiar pleasure and pride that I present my letter of credence to Your Majesty as the first ambassador of the United States near Your Majesty's court. Heretofore it has been considered possible to raise the rank of a legation of the United States to that of an embassy only after that step had been actually taken by the Government to which the representative thus promoted was accredited.

It having been found within the provisions of the law, the President has appointed and the Senate confirmed me as ambassador to Your Majesty's court, in recognition of the friendly intention of Your Majesty's Government, as expressed through Your Majesty's envoy extraordinary and minister plenipotentiary at Washington, without waiting for a similar action on its part, as well as to emphasize the wish for a continuance of the cordial relations existing between the two Governments, and to express the high regard and esteem in which Your Majesty is held by the people and Government of the United States.

I am charged by the President, Mr. Roosevelt, to convey to Your Majesty, as I conveyed on behalf of the late President, Mr. McKinley, the strongest assurances of his high personal esteem and best wishes, with the prayerful hope that Your Majesty may long be spared in health to rule over the peoples to whose welfare Your Majesty's reign has so notably contributed.

I was received in audience by the Emperor on the 26th instant, when I read the short address above quoted. The Emperor responded that be fully appreciated the sentiment expresssd by the action of the President and the Senate in raising the rank of this mission to that of embassy in the exceptional manner which I had explained to him.

He also desired me to say that he heartily reciprocated the kind feelings manifested by this act, as well as the good wishes which I had expressed on behalf of the President and Government of the United States; that he was pleased that I had been chosen as the first ambassador to reside near his court; I was personally most acceptable to him, and he had learned that I had established most agreeable relations with the officials of his Government, which would be valuable in cementing the friendly ties which he hoped would continue to bind the two coun

tries together; that he appreciated the high position to which the United States had attained as a world power and hoped that the blessing of peace and prosperity might long be continued to its people.

On this occasion the following gentlemen were presented to His Majesty:

Mr. Chandler Hale, first secretary of embassy.
Capt. Floyd W. Harris, military attaché.
Commander W. II. Beehler, naval attaché.
I have, etc.,

ROBERT S. McCORMICK.

Mr. lfill to Mr. llale.

No. 55.]

DEPARTMENT OF STATE,

Washington, July 22, 1902. SIR: The ambassador's No. 1, of the 30th ultimo, reporting his audience with the Emperor on the occasion of the delivery of Mr. McCormick's credentials as ambassador, has been received.

With reference to Mr. McCormick's Nos. 71 and 72, of March 7 and 8 last, the embassy is instructed to advise the Department of the result of the steps which have been taken to raise the Austro-Hungarian mission at this capital to the rank of an embassy. I am, etc.,

DAVID J. HILL,

Actiny Secretary.

Mr. McCormick to Mr. Ilay.

No. 6.]

UNITED STATES EMBASSY,

Vienria, sugust 12, 1902. Sır: Replying to the Department's No. 55 of the 22d ultimo, I have the honor to advise you that the steps which have been taken to raise the Austro-Hungarian mission at Washington to the rank of an embassy” were embodied in the budget for the year 1903, passed by the Delegations on June 9, 1902, copy of which was sent to the Department without covering dispatch, the intention thus expressed to take effect when the sum thus appropriated for the increased expenses of the mission in its new capacity would become available, namely, on the first day of January next. In his speech on the budget, delivered before the Delegations, Count Goluchowski spoke as follows, with reference to the raising of the rank of their representation at Washington to the rank of an embassy:

The gigantic progress and the ever-increasing importance of the United States, as far as international politics are concerned, as well as the growing interest which we have to take in regard to the numerous Austrian subjects living in the United States, do not admit of any delay in placing our representative on an equal footing with those of the other great powers. For this reason I consider it advisable to put down the amount thug rendered necessary in the estimates of this year, and trust that this measure will meet the approval of the honorable assembly, the more so as it is in conformity with a desire repeatedly expressed here as well as in America, and the compliance with which commends itself on political and economic grounds. A law has been in force in the United States for some time which gives to the President

the right to raise the rank of diplomatic representations abroad to embassies, thereby rendering unnecessary the passing of a special act by Congress in order to confer the same rank on the representative accredited to the Imperial and Royal court. The latter will take place as soon as an analogous measure has been adopted in regard to our mission in Washington.

By the adoption of the budget this Government considered that it had raised the rank of its mission to that of an embassy, the delay in the appointment of an ambassador, or the putting into effect the act of the Delegations until January 1 next, being in keeping with the law and custom of this Government. His Excellency, Count Lützow, first secretary of state, informed me that this information and explanation would be transmitted to the Department through Mr. Hengelmüller, the Austro-Hungarian minister in Washington. I have, etc.,

ROBERT S. McCORMICK.

RIGHT OF WIDOW OF AUSTRO-HUNGARIAN SOLDIER TO PENSION.

Mr. Hill to Mr. McCormick.

No. 36.]

DEPARTMENT OF STATE,

Washington, March 14, 1902. Sir: I inclose a copy of a letter asking whether the widow of a man who served in the Austrian army tive years is entitled to a pension, or other gratuity, and, if so, what steps she must take to secure it. You are instructed to obtain the desired information. I am, etc.,

David J. Hill,

Acting Secretary.

[Inclosure.)

Mr. Flournoy to the Secretary of State.

KNOXVILLE, TENN., March 8, 1902. Sie: I have the honor to make the following representation of facts to your Department, on behalf of a widow, a resident of the United States, viz:

Her deceased husband served five years in the Austrian army; two years in active service, three years in the reserves; receiving honorable discharge therefrom November 20, 1852. She desires to know, first, whether the Austrian Government grants for such service any bounty, pension, or other gratuity; second, if so, how inuch, and what steps must she take in order to secure payment to her as such widow.

Should your Department not be able to furnish the information desired at first hand, would respectfully request, if not impracticable or deemed discourteous, that the information sought be gleaned from the Austrian minister, resident at Washington, D. C., and the widow furnished with same through my office. I have, etc.,

C. H. FLOURNOY.

Mr. McCormick to Mr. Tlay.

No. 77.]

UNITED STATES LEGATION,

Vienna, April 22, 1902. Sır: Replying to your No. 36 of the 14th ultimo, with a copy of a letter from Č. H. Flournoy appended thereto asking whether the widow

FR 1902, PT 1-3

of a man who served in the Austrian army five years is entitled to a pension or other gratuity, and, if so, what steps she must take to secure it, I have the honor most respectfully to inclose herewith a copy of a letter from the Imperial and Royal ministry of war to Capt. Floyd W. Harris, the United States military attaché at Vienna, in reply to a request made by the latter for the desired information in regard to this matter.

I further beg to say that I referred this case to Captain Harris instead of sending it through the foreign office, in order to expedite the obtaining of a reply. I have, etc.,

ROBERT S. McCORMICK.

[Inclosure.]

Mr. Benkiser to Mr. Harris.

IMPERIAL AND ROYAL MINISTRY OF WAR,

SECTION 9, No. 2896,

l'ienna, April 14, 1902. Sır: In reply to your esteemed inquiry of March 28, 1902, the Imperial minister of war has the honor to inform you that, as a general rule, a widow of a soldier is entitled to a pension in that case only in which her husband has acquired for himself a legal claim to a pension.

Since this is not the case in the present instance, on account of the short length of service of the husband, the widow has no right to the granting of a pension. See the Austrian act of April 27, 1887 (Article XX, Hungarian Statutes, 1887), concerning the provisions for widows and orphans of officers and soldiers. For the Imperial minister of war:

BENKISER, G. M.

POLITICAL, SOCIAL, AND COMMERCIAL RELATIONS BETWEEN

THE UNITED STATES AND AUSTRIA-HUNGARY.

Mr. McCormick to Mr. Ilay.

UNITED STATES LEGATION,

Vienna, April 1, 1902. Sir: Finding that the inclosed communication of the Neue Wiener Tagblatt from a correspondent in New York had escaped the attention of the consul-general here, I have the honor to transmit it herewith for the information of the Department, believing that it contains sufficient matter of interest, especially as it pertains to the method of the customs officials in New York in applying and interpreting the tariff laws.

It is important that the consular officers in the United States should lose no opportunity to counteract the effect of such statements as are made in this article and contradict them when not in accordance with the fact. I have, etc.,

ROBERT S. McCORMICK. .

[Inclosure.- Translation.]

AUSTRIA-HUNGARY AND THE UNITED STATES-NEW YORK, MIDDLE OF MARCA.

It would not be surprising if the voyage of Prince Henry were to benefit likewise the relations existing between Austria-Hungary and America. The German-speaking Austrian is here without distinction, pui in one pot with the subjects of the German Empire, and to make this distinction is not a matter which concerns the Americans in general. While the Prince was here, one could frequently see the American eagle side by side with the Austrian double-headed eagle, and your warship, which it is said will soon pay us a visit, will dispel many errors and teach the know-nothings the political difference existing between the two great German-speaking nations. The fault of this is greatly due to the amicable relations existing between Germans and Austrians, who are members without distinction of one and the same clubs, associations, and singing societies, cultivating the art of song which forms a strong tie between the native Americans and the immigrant Germans. The Germans who wish sincerely to live in friendship with the Austrians will certainly not object if the latter profit by the favorable combinations of the present hour. Whether the raising of the legation in Washington to an embassy will promote this end is somewhat doubted. Emigration from Germany to the United States has of late years decreased, thanks to the improved economic and industrial conditions, and there is no ground to believe that the number of emigrants will increase again. A vast contingent of emigrants, however, is still supplied by the Slavish districts of Hungary, and Pittsburg abounds with Slavs who there seek employment in the great steel works. The German-Austrians who come here through business or family relations soon become Americanized. The temptation held out is too great. Personal energy, which can not develop itself at home, soon develops here, success follows, and with it love of the adopted country, which is lacking, however, in the feeling which the old country inspired. And if once the bands of hymen twist themselves around the budding millionaire, then he and his offspring are forever the prey of the New World. An example of this is Mr. Charles Schwab, the clever director of the great steel trust, whom you recently had in Vienna.

Unfortunately, Austria, like all other European countries, suffers under the cruel tariff laws of the United States. It is not so much the height of the tariff rates of which European industries complain, as the provoking indiscrimination of the customs officials. To be prepared for the payment of high duties and to make one's calculations accordingly is no difficult matter. Wages in Austria are low, the American is accustomed to pay high prices, and Austrian manufacturers might work profitably even when paying high rates of duty. But it is the uncertainty which makes the manufacturer and the agent shrink back. With incredible disregard for the rights and interests of those concerned are the tariff laws construed by the customs authorities, to-day this way, to-morrow that way; to-cay it classes merchandise under one heading, to-morrow under another heading; imposes fines and acts as if bound by no law. It has happened that competing American trusts have sent spies to Austria who transmitted false reports to their firms touching the cost of production of their goods.

On the strength of such reports the American customs officials suddenly declare that an undervaluation of the merchandise has been perpetual and subject the goods to fines and payment of higher rates of duty, protest against which, according to the incredible provisions of the law, is inadmissible, and redress can be obtained only by appeal to the collector of customs of the port, which is illusory.

Reductions of customs rates of duty can scarcely be expected because the State has need of the revenue derived from this source, but a more uniform and less arbitrary treatment must be demanded by way of diplomatic intervention.

No one doubts but that Austrian industry has a future in America. Its furniture, for instance, has many admirers, the so-called Vienna secession style, which had such a success at the late Paris Exhibition, has the sympathy of many Americans; its elegant, pleasing, and delicate forms will accommodate themselves easily to the modern American apartment house, and its English style will be sure to please at once. Vienna articles, such as fancy goods, bronzes, and terra-cotta ware, would certainly meet with favorable reception.

There is only this to be feared-that these articles, being carefully finished, will be too expensive for the great bazaars of Sixth avenue, which supply half of New York, and not sufficiently refined for the luxury of Fifth avenue. The cheapness of the German manufactories and the taste of the Parisian workshops naturally contract the Vienna ateliers within narrow limits. America is trying to create new industries and to manufacture all those articles herself which lack of skilled hands or want of raw material seemed to have denied her. It produces already excellent glassware for the table of the workman and for the drawing room. It is content to-day to import raw hides and manufactures them already into elegant and durable gloves. That in many cases (for instance beet-root sugar) Germans are the instructors is certainly a matter flattering to our national pride, just as the gradual decrease of the European export in the two last-named articles is humiliating to that of Austria. Many Austrian goods bear foreign names-cloth from Brünn is called French; numerous other

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