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The principal products are wheat, barley, oats, rye, corn, potatoes, and beets. Mining and furnace industries are important. In 1899 the reported values of mining and furnace products in Austria were 208,292,372 kronen and 94,997,716 kronen respectively; in Hungary, 57,383,000 kronen and 54,970,900 kronen respectively.

The annual production of coal in Austria is over 33,000,000 tons and in Hungary between 7,000,000 and 8,000,000 tons. The annual consumption, however, is about 60,000,000 tons, the deficit being made up by imports. Throughout the monarchy there are various factories for the production of metal wares, textiles, spirits, tobacco, sugar, and other manufactures. Although the commercial and industrial situation in the fall of 1901 was more unsatisfactory than it had been in years and many industrial establishments were reducing the number of employees or shortening the hours of labor, remarkable progress has been made of late in both commerce and manufacture. This progress, especially in Hungary, has been ascribed largely to the excellent system of technical and industrial schools that have been established or fostered by the government.

Hungary, which is usually regarded as a distinctively agricultural country, has been making conspicuous efforts during the last few years to establish manufacturing industries. From 1893 to 1900 inclusive 356 new industrial establishments, including almost every kind of manufacturing, were opened, the aggregate capital employed being some $52,600,000. Nearly all of these enterprises received aid from the government, which proposes to continue the principle of subvention in order to encourage further the establishment of factories. It has been stated that Hungary wishes to attain such a degree of industrial independence that she may abrogate that clause of the Ausgleich which provides for the Austro-Hungarian customs union. Commerce.-The special commerce of the customs territory, including Bosnia and Herzegovina (q.v.), has been as follows, the trade in specie and bullion being excluded: 1899, imports and exports, 1,608,800,000 kronen and 1,861,600,000 kronen respectively; 1900, imports and exports, 1,683,500,000 kronen and 1,911,900,000 kronen. In the latter year the imports and exports of raw materials amounted to 995,200,000 kronen and 810,700,000 kronen respectively; partly manufactured articles, 225,900,000 kronen and 292,300,000 kronen; manufactured articles, 462,400,000 kronen and 808,900,000 kronen. The import and export of bullion and specie in 1899 amounted to 43,100,000 kronen and 71,100,000 kronen respectively; in 1900, 44,900,000 kronen and 67,200,000 kronen. The values in kronen of the leading imports in 1900 were: Cotton, 151,400,000; wool, 99,300,000; coal, coke, etc., 89,800,000; tobacco, 60,500,000; machinery, 51,200,000. The leading exports in 1900 included: Wood, 252,100,000 kronen; sugar, 178,400,000; eggs, 90,000,000; lignite, 67,800,000; cattle, etc., 62,500,000; grain, 58,600,000; horses, 56,900,000; glass, 51,600,000; leather goods, 50,400,000; malt, 50,000,000. The trade with Germany in both imports and exports far exceeds that with any other country.

According to a United States consular report the countries exporting to AustriaHungary in 1900 were, in the order of the amounts exported: Germany, the United States, Great Britain, Italy, Russia, British India, Switzerland, France, and Brazil. The fact that the United States stands second in the list may be misleading; for, while in 1900 Germany sent to Austria-Hungary goods valued at $127,000,000, the import from the United States amounted to only $30,600,000. The latter amount, however, is large in comparison to the Austro-Hungarian export to the United States, which in 1900 was valued at $7,600,000. This state of affairs causes much dissatisfaction in Austria-Hungary and is a factor in the movement for a European customs union against the United States. Such a union was widely discussed in 1901 throughout central Europe, and Austrian manufacturers and agriculturists were making an organized effort to stop the increase of American imports. It was believed in some quarters that after the expiration of the Austro-Hungarian tariff treaties necessitating a general revision of the customs laws of the country, would be followed by the erection of tariffs aimed especially against American products. This anticipated action against the United States, however, may be modified both through fear of American tariff retaliation and through the realization that the prices of the necessaries of life would advance. With regard to the proposed protective league, comprising Austria-Hungary, Germany, Switzerland, Belgium, and the Netherlands, against American importations, the American consul-general at Vienna, writing in October, 1901, said that such an attempt could not be seriously considered, notwithstanding the fact that the monarchy is threatened with an influx of American goods that "tend to dwarf, if not actually destroy, many Austro-Hungarian industries." A meeting representing both manufacturing and agricultural interests, held in Vienna in October, 1901, made the following recommendations: A revision of the customs laws looking in general toward effectively protective tariffs; special reciprocity treaties instead of the "most favored nation" principle; only short-term commercial treaties with the United States and Argentina (the great grain producing

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countries); an agreement among the countries of central Europe for mutual protection against the competition of both North and South America.

Communications. At the beginning of 1900 there were 18,738 kilometres (11,643 miles) of railway in Austria, of which 7,584 kilometres (4,712 miles) were owned by the state. At the same time the Hungarian lines aggregated 16,951 kilometres (10,530 miles), of which 7,650 kilometres (4,754 miles) were owned by the state. Accordingly, the total length of railways in the monarchy was 35,689 kilometres (22,173 miles), of which the state owned 15,234 kilometres (9,466 miles). The state operated, in addition to its own lines, many miles of private railways. The river and canal mileage navigable for steamers has been reported at 818 in Austria and 1,923 in Hungary. (For the railway and canal systems projected in 1901, see the paragraphs on History.) In 1899 Austria had 6,065 post offices and 5,371 telegraph offices; the telegraph lines aggregated 33,235 miles and the wire 100,332 miles. In the same year the Hungarian post offices numbered 4,836 and the telegraph offices 3,165; the length of telegraph lines was 14,021 miles and of wire 69,791 miles. In 1899 the receipts of the posts and telegraphs in Austria-Hungary amounted to about 144,567,000 kronen and the expenses about 118,139,000 kronen.

HISTORY (a) Austria.

The year 1901 was important in Austrian politics, since it marked the resumption of legislative work on the part of the Reichsrath after four years of obstruction caused by the mutual antipathy of the Slav and German elements. So serious did the obstructionist methods become in the preceding year that a number of clerical leaders and members of the nobility asked for a suspension of constitutional government, while among the people discouragement and indifference were prevalent and the parliamentary broils called forth only contempt. The government disregarded the counsels for a coup d'état, but dissolved the Reichsrath on September 7, 1900.

The New Reichsrath.—At the end of 1900 elections for a new lower chamber of the Reichsrath were in progress and they ended on the 18th of January. This chamber may be roughly divided into the Right and the Left. The Right is composed of three principal elements: the Poles of Galicia, a powerful group, conservative and Slav; the Catholics, or Clericals, who though of German blood prefer to be allied to the Catholic and conservative Poles; finally, the Czechs of Bohemia, who are liberal rather than conservative, but who make the race question of prime importance. The Left, which includes most of the Germans of Austria, comprises several groups: the Liberals, whose influence is growing weaker and weaker; the Radicals; and the Pan-Germans, whose programme under Herr Schoenerer looks towards the annexation of Austria, with the exception of the province of Galicia, to the German Empire. It is between these two general parties, the Right and the Left, that the government has been obliged to manœuvre, and usually with little

success.

The result of the elections was a surprise to the reactionary parties; the Right suffered losses, while gains were made by radical nationalism. But over twenty political groups were represented, and it seemed impossible to bring about a stable majority. The election returns were as follows, the figures in parenthesis indicating the number of deputies in the preceding parliament: The German People's party, 49 (41); German Progressives, 35 (36); German Radicals, 21, (8); Christian Socialists, 21 (27); the Free German Union, 3 (9); the Catholic People's Party, 23 (27); Young Czechs, 53 (61); Agrarian Czechs, 6 (a new group); the Czech Labor party, 4 (a new group); Czech Clericals, 2 (1); Poles, 60 (55); the Polish People's party, 9 (8); Ruthenians, 11 (9); Slovenes, 16 (17); Croats, 9 (9); Serbes, 2 (2); Italians, 19 (15); Roumanians, 5 (5); Constitutional landed proprietors, 30 (28); Conservative landed proprietors, 19 (19); Party of the Centre, 6 (6); the Moderate Party, 3 (2); Social Democrats, 10 (15); independents, 9 (20). The success of the Pan-Germans (German Radicals) in increasing their representation from 8 to 21 is of much interest, for as soon as the party demanding the annexation of Austria to Germany becomes of considerable importance, a serious international question presents itself.

The new Reichsrath convened at Vienna on January 31, 1901. On February 4 the emperor addressed the two houses, setting forth a programme of extensive social, economic, and industrial reforms, and appealing to the members to abandon a racial strife that brought only evil on the state. He defended the constitution "which he had granted to his estates in the exercise of his free will." This expression seemed to indicate that the emperor might, if occasion demanded, "of his free will" suspend the constitution. His plea, however, for a reconciliation of racial animosities had little effect. From the moment when the premier in September, 1900, had taken the extreme measure of dissolving the Reichsrath in order to extricate himself from the almost hopeless situation then existing, there seemed to be little likelihood that

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the new chamber would be much better than the old; and during the greater part of the sessions of 1901 such was the case. Disorderly scenes began almost with the opening of the chamber on January 31. On February 20 such violent and obstructive tactics, arising from the question as to whether interpellations on rulings from the chair should be accepted in other languages than German, were indulged in by the Pan-Germans and the Czech extremists that the president adjourned the sitting, while soon after personal conflicts occurred between the Germans and Czechs and strong anti-Catholic and anti-Clerical demonstrations took place. The anti-Catholic, or "Los von Rom." movement, provoked especially by alleged evils connected with the confessional, persisted during the year and called forth much bitter discussion both in the Reichsrath and among the people.

"Federalism.”—During 1901 the Germans and the Czechs, who for the most part were agreed upon a common sovereign and the unity of diplomatic, commercial, and military affairs, were still bitterly opposed on matters of administrative policy. Both party programmes were the outcome of the language question. Hitherto, when the government has attempted to maintain the privileges of the German language it has encountered the opposition of the Right, led by the Czechs, who resort to obstruction as a supreme argument. When on the other hand the government has shown an inclination to establish equality of rights between the two languages the Germans would adopt an almost intractable attitude. In a general way the policy of the Germans of the Left is for the maintenance of the status quo-that is, the centralist régime, which favors the hegemony of the German interests and the German language; while the policy of the Right looks toward "federalism," or central government representing autonomous states-a condition that would aid the Slavic element in overcoming the German hegemony. In the latter case each state would be governed by its own majority, and the strength of the central government, the Slavs held, would not be impaired. In support of their argument they pointed to the autonomous states of the German empire. The difficulties in the way of federalism have seemed insurmountable. The Slav lacks material force; the army is not with him, and it is not likely that any circumstances will arise which will place it on his side. The eastern half of the monarchy, Hungary, would strenuously oppose the principle of federalism in Austria. Moreover, in case a trial should be made, it seems that little would be gained; in the Slavic states the Germans would be humiliated and in the German states the Slays; the racial struggle would go on as before, and perhaps more fiercely, since the contestants would be at closer quarters. The Premier's Economic Programme.-An entente-provisional and temporary— between the jarring sects was brought about in 1901 by Dr. von Koerber, the premier. During 1900 he had in vain attempted to effect a reconciliation, but though it was necessary to raise revenues by ordinances and though finance and industry were seriously menaced, he had refused to abandon constitutional methods. With the new Reichsrath he continued his policy of "dispassionate perseverance" and again attempted reconciliation between the parties not on national and political grounds— that was impossible-but on economic grounds. The task was not easy, but through a series of conferences he brought about certain mutual concessions between the Czechs and Germans, and finally his important economic programme, which he had announced at the opening of the Reichsrath and which was made more attractive by reason of the existing commercial and industrial depression, was taken up for consideration by the parliament. The most important parts of this programme were the measures for railways and canals.

The railway project provided principally for the construction of a system of lines in the southern provinces, for the connection of the port of Trieste with the northern districts, and for a line connecting Bohemia, Moravia, Silesia, and Galicia. The authorized expenditure, to be raised by loans distributed over the period 1901-05, was about 487,038,000 kronen. The most expensive part of the project will be the establishment of the line ending at Trieste, which will be 485 kilometres long and will cost 134,978.000 kronen. Two lines, connecting the Dalmatian ports of Spalata and Gravosa, and Bosnia with the port of Cattaro, will be of great political importance. For many years the coal districts of Bohemia and Moravia have desired the construction of canals in order to combat the monopoly of the existing railways, but such construction has been feared on account of the great expense involved. On April 26, 1901, Dr. von Koerber introduced a bill authorizing the construction of four canals in the districts of the Danube, Elbe, Moldau, and Vistula. The bill provides that the work be begun in 1904 and be completed within twenty years, and that the expense thereof be met by a four per cent. loan, issued between 1904 and 1912 to a maximum sum of 250,000,000 kronen and redeemable in 90 years. Expenses after 1912 will be met by additional legislation. The bill provided for the following canals: From the Danube to the Oder; from this canal eastward to the Vistula and the navigable portion of the Dniester; from the Danube-Oder canal westward to the upper Elbe (and the canalization thence of the Elbe as far as

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Melnik); from the Danube to the Moldau, near Budweis (and the canalization of the Moldau from Budweis to Prague). The aggregate length of these canals is variously estimated at from 992 to 1,054 miles, and they are designed to admit boats up to 600 tons burden. The total cost, which including the expenditure subsequent to 1912, will probably reach 500,000,000 kronen, will be met by proportionate contributions from the provinces, districts and towns that will benefit through the canals, and by imperial subventions. If this plan is fully carried out there will be a network of canals covering the principal provinces and connecting the main navigable streams of Austria, which will afford cheap all-water routes to the Black and Baltic seas. The measure was opposed in the Reichsrath by the Agrarian elements on the same grounds that the German canalization schemes are opposed by the German Agrarians, namely, that by cheapened freight rates the canals would flood the country with foreign food products, especially grain and vegetables, to the very serious detriment of the Austrian farmers. On the other hand, and again as in Germany, the proposed canals have the thorough approval of the manufacturing and commercial interests. The force of the Agrarian position was emphasized, perhaps unconsciously, by the American consul-general at Vienna, who wrote: "It is to be hoped that with the completion of these waterways our American products can be more cheaply introduced into Austria-Hungary than at present." Although serious topographical difficulties must be overcome, and for a considerable time each year the canals will be closed by ice, it is thought that the project will pay. Many parts of the interior now practically inaccessible to extensive trade can be developed, while easier communication will be provided with Germany and Russia. On June 1, 1901, the canal bill, together with the railway bill, was enacted unanimously, the opponents having absented themselves.

Besides these two great projects, the Reichsrath enacted a number of important bills bearing upon social conditions. Among these were a measure providing for the reduction of the working day for miners from ten to nine hours, the abolition of certain burdensome customs duties, and the imposition of an excise on spiritous liquors. A provisional budget was voted, and also a large number of bills of secondary importance looking toward the improvement of local administration. The various measures adopted called for an increase of taxes, for it was plain that to vote a thousand million kronen for expenditure and not to increase the revenue, would bring about a serious deficit; it is feared that although the revenues increase year by year there will be recurring deficits in the budget.

Renewed Obstruction.-With the convening of the fall session of the Reichsrath, October 17, 1901, it was clear that the rapprochement between the nationalities, which had never been real except on economic grounds, had come to an end. On October 23 a violent debate took place between the Czechs and the Germans, and in November there was little or no prospect of reconciliation, while important legislation was being blocked. It seemed probable that the Czechs would not obstruct the debate on the budget for 1902, which showed estimated revenue and expenditure of 1,685,966,357 kronen and 1,685,117,944 kronen respectively, but no real amelioration of the existing antagonism was expected in the near future. The Reichsrath reached such a degree of inefficiency that on December 10, Dr. von Koerber, for the first time, referred to the possibility of a suspension of the constitution. But though there was much provocation at the close of the year for such suspension, the government apparently feared to resort to so extreme a measure, not only on account of the resulting disapproval in Austria, but because of the action that Hungary would probably take. According to the compromise on which the dual monarchy rests, Hungary is not bound to treat with Austria unless the latter is constitutionally governed.

The Heir Presumptive.—The action of the Archduke Franz Ferdinand, in assuming in the spring of 1901 the patronage of an association for promoting Catholic denominational education, called forth angry protests from the German parties in the Reichsrath. It is not customary for any member of the royal family, except the emperor, to take an active part in politics, and the action of the archduke was regarded by the Germans as political. The archduke was encouraged in his role of "militant churchman" by his morganatic wife, who hopes, it is thought, in the event of ultimate Clerical victory in Austria-Hungary, to be absolved from the oath of renunciation and to be recognized, on the death of Franz Josef, as empress-queen.

(b) Hungary.

The lower chamber of the Hungarian parliament that was elected in 1896 was dissolved on September 9, 1901. The elections of 1896 sent to this body 282 members of the Liberal party, which has been the dominant party in Hungary for thirty years; 48 Kossuthists, followers of Franz Kossuth, who form the so-called party of independence; 37 Nationalists, who subsequently allied themselves with the Liberals; 20 Ultramontanes, "the people's party"; 7 Ugronists, Radical Clericals; 10 independents; and the 40 deputies from Croatia-Slavonia. The history of this parliament is divided

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into two distinct periods-under the ministry of Baron Banffy and under the present ministry, that of M. Koloman de Szell. In 1898 dissensions arose among the Liberals, and obstructive tactics were employed; such measures were used, especially by one of the opposition groups led by Count Albert Apponyi and M. de Horansky, that during the last year of Banffy's régime parliamentary activity was impossible. When Szell came into power (February, 1899), this group fused with the majority and thereafter the parliament succeeded in effecting a considerable amount of legislation. Among the more important laws enacted by the legislature of 1896-1901 are the following: A law denying parliamentary jurisdiction and establishing that of the court of cassation in matters electoral; a law establishing the jury system and another concerning civil and criminal procedure; a law establishing a course of administrative instruction, and another simplifying administrative routine; a law enlarging military schools; a law concerning the regulation (at least provisional) of the relations with Austria; a law concerning the condition of farm and forest laborers; and a law looking toward the eradication of electoral corruption.

The elections to the new lower chamber in the early days of October, 1901, were particularly interesting in that they were the first held under the last-mentioned law. It appears that this law, which was a project of the Szell ministry, did not accomplish all that was expected, but it is clear that political corruption, especially in Hungary, where it has long been intrenched, cannot be quickly dislodged. For the most part, the newly elected members were unknown men. The election returns showed that the Liberal party maintains a large majority, though it lost a few seats, especially to the Kossuthists. The success of the Kossuth party seemed to indicate at least a little trouble to the ministry. It is composed of men of radical tendencies, who are striving for the economic separation of Hungary from Austria and demand that the only relations common to the two countries be in the person of the emperorking. The Liberals, on the other hand, desire the continuation of the union on the basis of the compromise of 1867. It seems not unlikely that the Kossuthists will have considerable weight in the chamber. The election showed the beginning of a new party, which though represented by only five deputies in the chamber, may exert considerable influence. This party, which represents non-Magyar nationalities, is hostile to the hegemony exercised by the Magyars; if it should develop strength, Hungary might be forced to experience vexing racial disputes such as Austria has suffered for

many years.

Some of the losses of the Liberal party are worthy of note. More than eighty members of the old majority voluntarily withdrew their candidature, many of them fearing defeat. Among this number was M. Maslenovitch, the well-known economist and advocate of free trade. M. Alexander Plosz, the minister of justice, was defeated, as was also M. Koloman Tisza, the former premier, who had represented his district for thirty years. Death removed two deputies who were well known throughout Europe, M. Desider de Szilagyi (q.v.) and M. Auguste de Pulszky. At the time of the politico-religious reforms in 1894 de Szilagyi, as minister of justice, first in the Szapary ministry and then in the ministry of Wekerle, carried out a successful struggle in the reform movement against clerical intrigues. He retired from public life in 1895, but soon after was recalled and became president of the lower chamber, in which position he remained until 1898, when he resigned on account of the reactionary character of the Banffy ministry. As a simple deputy he exercised a great influence in the last two years of his life. Not only the Liberal party but Hungary itself has probably suffered no loss so great as that of de Szilagyi since the death of Francis Deak in 1876. Pulszky, though a man of less importance, was one of the most learned and eminent speakers of the parliament.

On October 28, 1901, the Hungarian Reichstag was opened by the king, who, in his speech from the throne, emphasized "the necessity of a permanent settlement of the commercial questions between Hungary and Austria, and announced a rearrangement of the customs tariff and various measures of administrative and economic reform." A principal feature of the new situation was the election of Count Albert Apponyi as president of the lower chamber on October 31, a "brilliant sanction" of the fusion that had existed for two years between the majority and the group of the centre Left. With regard to the problems before the new parliament and the necessity of a spirit of disinterested patriotism, M. Szell said a short time before the opening of the session that nothing must be permitted which could arrest the development of Hungary's economic forces, and that there was good reason to trust that both the agricultural and the commercial interests of the country would be safeguarded in the legislature. As to the relations of Hungary with Austria the premier considered the maintenance of the status quo as an absolute necessity. It was felt that both the agricultural and economic development of Hungary depended to a considerable extent upon the maintenance of existing relations. On the other hand it was stated in some quarters that should the disposition which had manifested itself in Austria to regard Hungary as an "agricultural colony" continue, Hungary

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