source of profit to white adventurers on the New Guinea coasts, and for these occupations native laborers are recruited. These laborers have in many cases been starved, defrauded, and ill treated, causing them to run away, entailing upon them severe punishment, which has resulted in fights from which the whites have suffered. At some parts of the coast the natives are still addicted to savage raids and cannibal feasts, to which two white gold-diggers fell victims in February, 1901, and the missionary James Chalmers and his party in the April following. Late in the same year 20 persons were murdered and devoured on the Waria river. The Government staff is too small to afford protection over an immense territory or to mete out punishment. The Church of England mission, with a European staff of 26, has immediate control over 15,000 natives, and 1,000 children attend 14 schools. Under the teaching of missionaries the natives become ashamed of cannibalism, and though there are lapses among converts, the influence of civilization spreads rapidly among the people, who have considerable natural intelligence. While cannibal raids are still as frequent as ever in Dutch New Guinea and on the border, in British territory they grow less every year. The different missionary societies have apportioned the territory among themselves. The Anglicans on the northeast coast have the region that was the latest to be opened up, but which on account of the gold discoveries has become the center of interest to the whites.

AUSTRIA-HUNGARY, a dual monarchy in central Europe, composed, under the fundamental law of Dec. 21, 1867, of the Empire of Austria and the Kingdom of Hungary, inseparable constitutional monarchies, hereditary in the male line of the dynasty of Hapsburg-Lorraine and in the female line in the event of the extinction of the male line. The legislative power in affairs common to both monarchies, namely, foreign relations, military and naval affairs, with the exception of the national territorial armies, common finance, commercial and railroad affairs concerning both monarchies, the customs tariff, the coinage, and the administration of the occupied Turkish provinces, is exercised by committees of the legislative bodies of both monarchies, called the Delegations, which meet alternately in Vienna and Budapest, the Austrian and Hungarian capitals. The Delegations are composed of 20 members from each of the upper houses and 40 members from each of the popular chambers, elected by the respective bodies for each annual session. Each Delegation meets and votes separately, and in case of a disagreement the two Delegations come together and decide the matter by a joint vote. The common ministers are responsible to the Delegations and may be impeached for unconstitutional or illegal acts. The Emperor of Austria and King of Hungary is Franz Josef I, born Aug. 18, 1830, proclaimed Emperor of Austria on Dec. 2, 1848, when his uncle, Ferdinand I, abdicated in consequence of a revolution; crowned King of Hungary on June 8. 1867, when the ancient constitutional rights of the kingdom were restored. The heir presumptive is the Emperor-King's nephew, the Archduke Franz Ferdinand, born April 21, 1865, son of the late Archduke Karl Ludwig and the Princess Annunciata, daughter of the former King of Naples. The ministers of the whole monarchy at the beginning of 1902 were as follow: Minister of Foreign Affairs and of the Imperial House, Graf Agenor Maria Adam Goluchowski; Common Minister of War, Gen. Edmund, Freiherr von

Krieghammer; Common Minister of Finance, Benjamin de Kallay.

ex

The Common Budget.-The expenditure for common affairs in 1899 was 328,756,000 crowns (1 crown florin = 20.3 cents). The revenue from customs was 116,988,000 crowns; contribution of Austria, 145,272,000 crowns; contribution of Hungary, 66,496,000 crowns. The preliminary accounts for 1900 make the total expenditure 337,348,000 crowns, of which 124,950,000 crowns were obtained from customs; of the remainder Austria paid 139,333,000 crowns and Hungary 73,065,000 crowns. The approved estimates for 1901 make the total expenditure 337,000,000 crowns, customs yielding 125,039,000 crowns of this sum, leaving Austria to provide 156,979,000 crowns and Hungary 82,319,000 crowns. For 1902 the sanctioned estimates of penditure amount to 365,181,966 crowns, 321,704,948 crowns for ordinary and 43.477.018 crowns for extraordinary purposes, appropriated as follows: 10,551,062 crowns for ordinary and 203,995 crowns for extraordinary expenses of the Ministry of Foreign Affairs, making a total of 10,754,357 crowns; 275,858,619 crowns for ordinary and 20,019,103 crowns for extraordinary expenses of the army, making 295,877,722 crowns; 30,803,200 crowns for ordinary and 15,887,620 crowns for extraordinary expenses of the navy, making 46,690,820 crowns; 4,174.307 crowns for expenses of the Ministry of Finance; 317,760 crowns for the Board of Control; 7,367,000 crowns of extraordinary expenditure for the military occupation of Bosnia. The customs revenue for 1902 was estimated at 110,541,299 crowns; receipts from the Government departments, 6,191,677 crowns; matricular contributions of the two halves of the monarchy, 254,640,667 crowns. The Ausgleich negotiated in 1887, fixing for ten years the proportional contributions of the two monarchies to the common expenditure and adjusting the customs and the financial relations in general, was continued provisionally after its expiration, no agreement having been reached as to a new arrangement. A joint commission in November, 1899, arrived at a compromise according to which Hungary should pay 34.4 per cent. and Austria 65.6 per cent. of common expenditure in excess of receipts from customs. The Austrian Reichsrath and the Hungarian Parliament failing to ratify this agreement, it was left to the decision of the Emperor-King to frame a modus vivendi. He decided on Dec. 30, 1899, that until July 1, 1901, the scheme of the joint commission should have application.

The general debt, consisting of debts incurred by the Empire before 1868, amounted on July 1, 1901, with the floating debt of 95,796,985 crowns, to 5,434,428.306 crowns. The share of Austria in the annual charges was 166,382.255 crowns for interest and 22.646.305 crowns for amortization; Hungary's share was 60,298,646 crowns for interest and 279.016 crowns for amortization. Since the creation of the dual monarchy no loans have been issued in common. There were 224.000.000 crowns of state notes in circulation on Jan. 1, 1901, which are guaranteed jointly. Provision is made for their retirement before Sept. 1, 1903. The Austro-Hungarian Bank had 1.494,023,320 crowns of bank-notes in circulation, which must be protected by a reserve of 40 per cent. in silver or gold. The state notes will be replaced by 5crown silver pieces to the amount of 64.000.000 crowns and by 10-crown bank-notes, which as well as the silver pieces will be fully protected by gold. The gold basis was adopted for Aus

The exports of flour were 156,628,000 crowns in value; of cattle, 92,361,000 crowns; of wheat, $4,646,000 crowns; of hogs, 59,477,000 crowns; of rye, 47,807,000 crowns; of eggs, 34,497,000 crowns; of wine, 32,336,000 crowns; of corn, 31.744,000 crowns; of oats, 30,465,000 crowns; of horses, 28,608,000 crowns. Of the total imports 21.95 per cent. were raw products and 78.05 per cent. manufactures, while of the exports 60.78 per cent. were raw products and 39.22 per cent. were manufactures. Of the imports 79.51 per cent., 882,834,033 crowns, came from Austria, and 71.55 per cent. of the exports, 949,759,656 crowns, went to Austria. From Germany the value of 54,533,108 crowns was imported, and exports to Germany amounted to 141,200,927 crowns. The imports from Great Britain were 15,956,251 crowns in value, consisting mainly of cotton cloth and tobacco; the value of exports to Great Britain, consisting principally of wheat flour and barley, was 28,031,318 crowns. The largest commercial intercourse, after these countries, is with Servia, France, Switzerland, Italy, and Roumania.

Navigation. The number of vessels entered at Austrian seaports during 1899 was 107,590, of 13,160,544 tons; cleared, 107,511, of 13,148,482 tons. Of the vessels 88 per cent., with 90 per cent. of the tonnage, were Austrian, Italy having the next largest percentage, and then Greece. At the port of Trieste 8,468 vessels, of 2,164,927 tons, were entered, and 8,487, of 2,166,289 tons, were cleared. The Austrian commercial marine on Jan. 1, 1900, comprised 12,039 vessels of all kinds, of 244,301 tons, with 33,503 sailors. Of the total number, which included 199 steamers, of 190,620 tons, 154, of 198,322 tons, were ocean vessels, 1,483, of 23,631 tons, were coasters, and 11,002, of 22,348 tons, were fishing vessels and other small craft.

At Hungarian ports 19,223 vessels, of 2,223,302 tons, were entered and 19,218, of 2,226,733 tons, were cleared during 1900. At Fiume were entered 10.739 vessels, of 1,681,151 tons; cleared, 10,732, of 1,684,329 tons. The commercial fleet of Hungary on Jan. 1, 1901, consisted of 61 ocean vessels, of 63,002 tons, 154 coasting vessels, of 6,063 tons, and 223 fishing vessels, etc., of 332 tons; total, 438 vessels, of 69,397 tons, of which 78, of 56,391 tons, were steamers.

Railroads, Posts, and Telegraphs.-There were 11,700 miles of railroad in Austria on Jan. 1, 1900, of which 4,713 miles were Government railroads, 1,989 miles were private lines operated by the Government, 4,998 miles were owned and cperated by companies, and 62 miles were foreign railroads. The number of passengers carried in 1899 was 142,296,000; tons of freight, 114,512,000: gross receipts, 296,837,000 florins; expenses, 193,412,000 florins; capital cost, £246,915,000.

In Hungary the total length of completed railroads on Jan. 1, 1901, was 17,108 kilometers, of which the Government owned 7,662 kilometers and operated 6,491 kilometers of companies' lines, while 2.955 kilometers were owned and operated by companies. The number of passengers in 1900 was 64,412,000; tons of freight; 42,577,000; gross receipts, £11,472,000 sterling; expenses, £6,222,000; capital, £112,056,000.

The number of letters and postal cards that passed through the Austrian post-office during 1900 was 1,055,791,710; samples and printed matter, 137,626,510; newspapers, 107,738,700. The receipts were 107,718,310 crowns, and expenses were 98,411.819 crowns.

The number of letters and postal cards that passed through the Hungarian post-office was

319,770,000 in 1900; newspapers, 115,994,000; samples and printed matter, 51,906,000; money and postal orders, 21,018,000, of the value of £46,794,000 sterling; registered letters and parcels, 20,016,000. The receipts of the postal, telegraph, and telephone services were 47,103,000 crowns; expenses, 39,912,000 crowns.

The total length of telegraph lines in Austria in 1900 was 24,480 miles, with 107,750 miles of wire. The number of messages in 1900 was 15,057,176. There were 266 telephone exchanges and 105 interurban circuits, with a total length of 79,750 miles of wire. The number of conversations in 1900 was 95,262,595. The telegraphlines of Hungary had a total length of 22,824 kilometers, with 114,831 kilometers of wire. The number of messages in 1900 was 14,370,439. There were 50 telephone exchanges, with 45 interurban circuits and connections with Vienna and Berlin. The total length of telephone wire was 74,093 kilometers. The number of conversations was 37,301,358.

The Triple Alliance.-The alliance between Germany, Austria-Hungary, and Italy, which expires in May, 1903, was prolonged in its original form for a further period of six years by a new treaty signed at Berlin on June 26, 1902. A dual alliance between Germany and Austria-Hungary, arranged in a conference between Prince Bismarck and Count Andrassy in 1879, bound each of the contracting powers to come to the assistance of the other with its military and naval forces in case of an attack on two sides at the same time, an attack of France and Russia against Germany, with or without Italy, or an attack of Russia and Italy against the AustroHungarian dominions. There existed previously the Dreikaiserbund between the Emperors of Germany, Austria-Hungary, and Russia, an understanding reached in 1873, which the entente cordiale between France and Russia unsettled. Nevertheless the first German Emperor was reluctant to agree to the Austro-German military pact, deeming it incompatible with his political and family relations to the Emperor of Russia. After it was carried through Prince Bismarck always insisted that a good understanding with Russia was an essential element of German policy, and after the dual alliance was expanded into a triple alliance by the adhesion of Italy, this military pact was uniformly represented as purely defensive, a guarantee of peace, an insurance against any disturbance of the existing equilibrium. When the relations between Italy and France became strained in consequence of the French occupation of Tunis, Italy was easily persuaded to abandon her position of isolation and join, in 1883, the alliance of the central powers. Italian Irredentism in respect to the coast provinces of Austria thereby received a check and ceased to be a danger to the peace of Europe. A tariff war with France further estranged Italy from her former ally. The terms of the dual alliance were after a time disclosed to the public, but those of the tripartite treaty have always been kept secret, though it may be inferred that Germany can only call upon her allies for active assistance in the event of a double attack, but will assist if necessary either one of them which is attacked from one side only. The burden of armaments has borne most severely upon Italy, the one of the three powers which had most to make up in developing its military strength with the weakest material resources. The heavy strain of taxation and the unlikelihood that Italy would receive compensation on the Adriatic, the only field for national expansion, for any sacri

fices she might make for her allies, has caused a considerable revulsion of public feeling at times in Italy, but never sufficient to cause the successors of Crispi to abandon the alliance which he formed. A better feeling toward France and better trade relations did not alter the policy of the Italian Government. The economic difficulties of Italy, however, led that Government, before the alliance was renewed for twelve years on May 6, 1891, to press for favorable commercial terms. The complaints of Italians regarding the excessive burden of the military and naval armaments that Italy has kept up in her ambition to maintain her position among the great powers drew from the responsible statesmen of the allied powers the admission that the treaty does not compel Italy to mobilize any specified number of army corps or to bring her armed strength up to any particular standard. When the Franco-Russian entente cordiale matured into the dual alliance between the French Republic and Russia as an open rejoinder to the triple alliance, stress was laid on the pacific nature and conservative purpose of the dual alliance by its authors and its value in insuring peace as a counterpoise to the triple alliance, and those concerned in the latter reiterated their peaceful intentions. Just as the continuance of the political friendship and dynastic intimacy between Germany and Russia did not preclude the conclusion of the Austro-German alliance and subsequent Dreibund, an agreement made later between Austria and Russia to maintain the status quo in the Balkans was held to be perfectly compatible with the obligations of Austria toward her allies. In the same principle, when a rapprochement was attained in the spring of 1902 between Italy and France by an agreement on the part of the latter to respect the Italian sphere of interest in Tripoli, this separate understanding was not regarded as inconsistent with the fresh renewal of the triple alliance. Italy urged the need of advantageous terms for Italian products in the new commercial treaties as a necessary condition to her preserving the military strength that makes her alliance valuable, and pledges may have been made or assurances given without any such stipulations being embodied in the treaty of alliance, which the successive German Chancellors have averred is not complicated with economic questions. Count von Bülow likened the triple alliance to an insurance company rather than to an association for profit, and repeated the declarations that it is purely defensive and pacific, that it entails no obligations on the members to maintain their military or naval forces at a prescribed level, and that it is no artificial combination, but corresponds to a natural and historical balance of power, tending now even more than in the beginning to the preservation of the peace of the world, since the political combinations of the present go beyond the limits of Europe and the basin of the Mediterranean, the interests of the great powers embrace the whole world, and none of them can wage war in Europe without reflecting on far-reaching hazards in other quarters.

Count Goluchowski, when announcing on the meeting of the Delegations in May the approaching prolongation of the triple alliance, spoke of the dual alliance as its complement and an assistance in the fulfilment of its pacific task and of the extension of such political arrangements for the maintenance of the status quo to extraEuropean questions, as exemplified by the AngloJapanese treaty guaranteeing the integrity of China and Korea, just as the Austro-Russian entente insures the integrity of the Balkan coun

tries. Special agreements made by individual powers belonging to the different groups concerning specific interests which affect them alone, as evidenced by the confidential relations existing between France and Italy or the satisfactory development of Austro-Russian relations resulting from the agreement of 1897, are not opposed to the general principles which brought about the union of the principal groups. The agree ment of France to respect Italy's aspirations in Tripoli, and perhaps also to intervene in no way to frustrate her ambitions in Carniola and Istria and in Albania, Italy leaving to France a free hand in Morocco, deprives of all its force and practically ends the Anglo-Italian Mediterranean agreement, leaving England without a supporter for her claims to a share in the division of Morocco and with no ports save her own as naval bases from which to conduct operations in the Mediterranean unless she shall enter into a similar alliance with Spain. It was England herself who caused the defection of her ally and the Franco-Italian rapprochement when in bargaining over protectorates and spheres of influence in various parts of the world she conceded to France the Hinterland of Tripoli; a concession which France has used to purchase the friendship of Italy and the isolation of England in the matter of more vital interests, probably by resigning the French claim to this region to Italy. It is said that in connection with the old treaty Italy entered into an engagement to send in the event of an aggressive war on Germany and Austria, an army corps through the Tyrol to take up a position with the German army on the Rhine and an army corps through Hungary to be placed under the command of King Carol of Roumania and to invade Bessarabia alongside of Austrian and Roumanian troops. These obligations are supposed to have been omitted from the military agreements and plans of campaign adopted when the new treaty was signed, which itself was oflicially stated to be identical with the original treaty of alliance, and like it is to be kept secret, although the Austrian and Italian governments are believed to be willing to disclose its terms. The idea that a political alliance can subsist concurrently with a commercial war has been repudiated by Hungarian statesmen more outspokenly than it has in Italy. Austria-Hungary, however, obtained no pledges for fair treatment of Hungarian exports, especially those that under Agrarian pressure are in danger of being shut out from the German market when the commercial treaties are renewed. No positive assurances were given either to Austria or to Italy regarding the German tariff, which will depend on the action of the Reichstag. The renewal of the military convention with Germany without modification was therefore viewed in Hungary as a temporary engagement which will not be again renewed if the Germans frame a hostile tariff. The Italian people took a similar view. The Slavs of Austria were decidedly averse to the renewal and look upon it as a mere alliance between the ministerial chancelleries which lacks the approval of the nations concerned. In Chinese affairs Germany acted with Russia and France, and the triple alliance had no significance. It gives to Austria-Hungary and to Italy an outward prestige and importance that they would not have if they stood alone; still it has not been to them the source of strength and welfare that Germany has made of it for herself. As to the practical application of the military convention, the danger of such wars as it contemplates is much more remote now than when