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were a!) opposed (o the Ausgleicb, it was clear that a Reichsrath chosen in these circumstances would refuse to ratify it, and this was probably Bclcredi's intention. As the existence of the empire would thereby be endangered, Beust interfered; Belcredi was dismissed, Beust himself became minister-president on the 7th of February 1867, and a new edict was issued from Vienna ordering the diets to elect a Reichsrath, according to the constitution, which was now said to be completely valid. Of course, however, those diets in which there wu a Federalist majority, viz. those of Bohemia, Moravia, Carinthia and Tirol, which were already pledged to support the January policy of the government, did not acquiesce in the February policy; and they refused to elect except on terms which the government could not accept. The first three were immediately dissolved. In the elections which followed in Bohemia the influence of the government was sufficient to secure a German majority among the landed proprietors; the Czechs, who were therefore in a minority, declared the elections invalid, refused to take any part in electing deputies for the Reichsrath, and seceded altogether from the diet. The result was that Bohemia now sent a large German majority to Vienna, and the few Czechs who were chosen refused to take their seat in the parliament. Had the example of the Czechs been followed by the other Slav races it would still have been difficult to get together a Reichsrath to pass the Ausgleich. comjMc* It was, however, easier to deal with the Polesof Galicia, with it* for they had no historical rights to defend; and by f>olcs- sending delegates to Vienna they would not sacrifice any principle or prejudice any legal claim; they had only to consider how they could make the best bargain. Their position was a strong one; their votes were essential to the government, and the government could be useful to them; it could give them the complete control over the Ruthenes. A compact then was easily arranged.

Beust promised ili.nl that there should be a special minister for Galicia, a separate board for Galician education, that Polish should be the language of instruction in all secondary schools, that Polish instead of German should be the official language in the law courts and public offices, Ruthenian being only used in the elementary schools under strict limitations. On these terms the Polish deputies, led by Ziemialkowski, agreed to go to Vienna and vote for the Ausgleich.

When the Reichsrath met, the government had a large majority ; and in the House, in which all the races except the Czechs were represented, the Ausgleicb was ratified a'most unanimously. This having been done, it was possible to proceed to special legislation for the territories, which were henceforward officially known as " the kingdoms and lands represented in the Reichsrath." A scries of fundamental laws were carried, which formally established parliamentary government, with responsibility of ministers, and complete control over the budget, and there were included a number of clauses guaranteeing personal rights and liberties in the way common to all modern constitutions. The influence of the Poles was still sufficient to secure considerable concessions to the wishes of the Federalists, since if they did not get what they wished they would leave the House, and the Slovenes, Dalmatians and Tirolese would certainly follow them. Hence the German Liberals were prevented from introducing direct elections to the Reichsrath, and the functions of the Reichsrath were slightly less extensive than they had hitherto been. Moreover, the Delegation was to be chosen not by the House as a whole, but by the representatives of the separate territories. This is one reason for the comparative weakness of Austria as compared with Hungary, where the Delegation is elected by each House as a whole; the Bohemian representatives, e.g., meet and choose 10 delegates, the Galicians 7, those from Trieste i; the Delegation, is, therefore, not representative of the majority of the chamber of deputies, but includes representatives of all the groups which may be opposing the government there, and they can carry on their opposition even in the Delegation. So it came about in 1869, that on the first occasion when there was a joint sitting of the Delegation* to settle a point in the

budget, which Hungary had accepted and Austria rejected, the Poles and Tirolese voted in favour of the Hungarian proposal.

As soon as these laws had been carried (December 1867), Beust retired from the post of minister-president; and in accordance with constitutional practice a parliament- rtf ary ministry wan appointed entirely from the ranks «<« of the Liberal majority; a ministry generally known ** as the " Burger Ministcrium " in which Giskra and Herbst—the leaders of the German party in Moravia and Bohemia—were the most important member*. Austria now began its new life as a modern constitutional state. From this time the maintenance of the revised constitution of 1867 has been the watchword of what is called the Constitutional party. The first use which the new government made of their power was to settle the finances, and in this their best work was done. Among them were nearly all Ihe representatives of trade and industry, of commercial enterprise and financial speculation; they were the men who hoped to make Austria a great industrial state, and at this time they were much occupied with railway enterprise. Convinced free-traders, they hoped by private energy to build up the fortunes of the country, parliamentary government—which meant for them the rule of the educated and well-to-do middle class—being one of the means to this end. They accepted the great burden of debt which the action of Hungary imposed upon the country, and rejected the proposals for repudiation, but notwithstanding the protest of foreign bondholders they imposed a tax of 16% on all interest on tindebt. They carried out an extension of the commercial treaty with Great Britain by which a further advance was made in the direction of free trade.

Of equal importance was their work in freeing Austria from the control of the Church, which checked the intellectual lile of the people. The concordat of 1855 had given the jj, Church complete freedom in the management of all ecclesiastical affairs; there was full liberty of intercourse with Rome, the slate gave up all control over the appointment of the clergy, and in matters of church discipline the civil courts had no voice—the clergy being absolutely subject to the power of the bishops, who could impose temporal as well as spiritual penalties. The state had even resigned to the Church all authority over some departments of civil life, and restored the authority of the canon law. This was the case as regards marriage; all disputes were to be tried before ecclesiastical courts, and the marriage registers were kept by the priests. All the schools were under the control of the Church; the bishops could forbid the use of books prejudicial to religion; in clrmentary schools all teachers were subject to the inspection of the Church, and in higher schools only Roman Catholics could be appointed. It had been agreed that the whole education of the Roman Catholic youth, in all schools, private as well as public, should be in accordance with the teaching of the Roman Catholic Church. The authority of the Church extended even to the universities. Some change in this system was essential) the Liberal party demanded that the government should simply state that the concordat had ceased to exist. To this, however, the emperor would not assent, and there was a difficulty in overthrowing an act which look the form of a treaty. The government wished to come to some agreement by friendly discussion with Rome, but Pius IX. was not willing to abate anything of his full claims. The ministry, therefore, proceeded by internal legislation, and in 1868 introduced three laws: (i) a marriage law transferred the decisions on all questions of marriage from the ecclesiastical to the civil courts, abolished the authority of the canon law, and introduced civil marriage in those cases when the clergy refused to perform the ceremony; (») the control of secular education was taken from the Church, and the management of schools transferred to local authorities which were to be created by the diets; (i) complete civil equality between Catholics and non-Catholics was established. These laws were carried through both Houses in May amid almost unparalleled excitement, and at once received the imperial sanction, notwith* standing the protest of all the bishops, led by Joseph OUunar von Rauscher (»;w-i87s), cardinal archbishop of Vienna, who had earned bis red hat by the share he had taken in arranging the concordat of 1855, and now attempted to use his great personal influence * ith the emperor (his former pupil) to defeat the bill.

The ministry had the enthusiastic support of the German population in the towns. They wore also supported by the teaching profession, which desired emancipation from ecclesiastical control* and hoped that German schools and German railways were to complete the work which Joseph II. had begun. Bat the hostility of the Church was dangerous. The pope, in an allocution of »jnd June iS68, declared that these "damnable and abominable laws " which were " contrary to the concordat, to the laws of the Church and to the principles of Christianity," werr "absolutely and for ever null and void." The natural result was that when they wens carried into effect the bishops ia many cases refused to obey. They claimed that the laws were inconsistent with the concordat, that the concordat still was in force, and that the laws were consequently invalid. The argument was forcible, but the courts decided against them. Rudigier, bishop of Linz, was summoned to a criminal court for disturbing the public peace; he refused to appear, for by the concordat bishops were not subject to temporal jurisdiction; and when be was condemned to imprisonment the emperor at once telegraphed his full pardon. In the rural districts the clergy had much influence; they were supported by the peasants, and the diets of Tirol and Vorarlberg, where there was a clerical majority, refused to carry out the school law,

On the proclamation of papal infallibility in 1870, the government took the opportunity of declaring that the concordat had lapsed, cm the ground that tncne wai a fundamental change in the character of the papacy. Nearly all the Austrian prelates nad been opposed to the new doctrine; many of them remained to the end of the council and voted against it, and they only declared their submission with grrat reluctance. f The Old Catholic movement, however, never made much progress in Austria. Laws regulating the position of the Church were carried in 1874. (For the concordat see Lavcleye, Lf Prtutt a rAutruke, Paris, 1870.)

During 1868 the constitution then was open to attack on two sides, for the nationalist movement was gaining ground in HtHofsi- Bohemia and Galicia. In Galicia the extreme party, um im a*- headed by Smolka, bad always desired to imitate the Czechs and not attend at Vienna; they were outvoted, but all parties agreed on a declaration in which the final demands of the Poles were drawn up;1 they asked that the powers of the Galician diet should be much increased, and that the members from Galicia should cease to attend the Rejchsrath on the discussion of those matters with which the Galtriin diet should be qualified to deal. If these demands were not granted they woBld leave the Rcichsrath. In Bohemia the CTTf**« were very active; while the Poles were parading their hostility to Russia in such a manner aa to cause the emperor to avoid visiting Galicia, some of the Czech leaders attended a Slav demonstration at Moscow, and in 1868 they drew up and presented to the diet at Prague a " declaration " which has since been regarded as the official statement of their claims. They asked for the lull restoration of the Bohemian kingdom; they contended that no foreign assembly was qualified to impose lues in Bohemia; that the diet was not qualified to elect representatives to go to Vienna, and that a separate settlement omit be made with Bohemia similar to that with Hungary. Thia declaration was signed by eighty-one members, including many of the feudal nobles and bishops.' The German majority declares! that they had forfeited theu- seats, and ordered new ejections. The agitation spread over the country, serious riots took place, and with a view to keeping order the government decreed exceptional laws. Similar events happened in Moravia, and in Dalniatia the revolt broke out among the Bocchcsi.

Before the combination of Clericals and Federalists the ministry broke down; they were divided among themselves; Counts Taaffe and Alfred Potocki, the minister of agriculture, wuhed to conciliate the Slav races—a policy recommended

1 The documents are printed in Baron de Worms, op. cit. 'hit printed in the Eiaofdischtr Gtu'iukl.kalimlir (1868).

by Beust, probably with the sympathy of the emperor; the others determined to cripple the opposition by taking away the elections for the Reichsrath from the diets. pjr/;,. Taaffe and his friends resigned in January 1870, but mtotary the majority did not long survive. In March, after JJ5J}J°*" long delay, the new Galician demands were definitely rejected; the whole of the Polish club, followed by the Tirolese and Slovenes, left the House, which consequently consisted of no members—the Germans and German representatives from Bohemia and Moravia. It was clearly impossible to govern with such a parliament. Not four years had gone by, and the new constitution seemed to have failed like the old one. The only thing to do was to attempt a reconciliation with the Slavs. The ministry resigned, and Potocki and Taaffe formed a government with this object Potocki, now minister-president, then entered on negotiations, hoping to persuade the Czechs to accept the constitution. Rieger and Thun were summoned to Vienna; he himself went to Prague, but after two days he had to give up the attempt in despair. Feudals and Czechs all supported the declaration of 1868, and would accept no compromise, and he returned to Vienna after what was the greatest disappointment of his life. Government, however, had to be carried on; the war between Germany and France broke out in July, and Austria might be drawn into it; the emperor could not at such a crisis alienate either the Gcrmansor the Slavs. The Reichsrath and all the diets were dissolved. This time in Bohemia the Czechs, supported by the Feudals and the Clericals, gained a large majority; they took their seats in the diet only to declare that they did not regard it as the legal representative of the Bohemian kingdom, but merely an informal assembly, and refused to elect delegates for the Reichsrath. The Germans in their turn now left the diet, and the Czechs voted an address to the crown, drawn up by Count Thun, demanding the restoration of the Bohemian kingdom. When the Reichsrath met there were present only 130 out of 303 members, for the whole .Bohemian contingent was absent; the government then, under a law of 1868, ordered that as the Bohemian diet had sent no delegates, they were to be chosen directly from the people. Twenty-four Constitutionalists and thirty Dtclaranten were chosen; the latter, of course, did not go to Vienna, but the additional twenty-four made a working majority by which the government was carried on for the rest of the year.

But Potocki's influence was gone, and as soon as the European crisis Wps over, in February 1871, the emperor appointed a ministry chosen not from the Liberals but from the rft* Federalists and Clericals, led by Count Hohenwart mMiiry and A. E. F. Schaffle, a professor at the university of »'"»»««• Vienna, chiefly known for his writings on political *""" economy. They attempted to solve the problem by granting to the Federalists all their demands. So long as parliament was silting they were kept in check; as soon as it had voted supplies and the Delegations had separated, they ordered new elections in all those diets where there was a Liberal majority. By the help of the Clericals they won enough seats to put the Liberals in a minority in the Rcichsrath, and it would be possible to revise the constitution if the Czechs consented to come. They would only attend, however, on their own terms, which were a complete recognition by the government of the claims made in the Declaration. This was agreed to; and on the uth of September at the opening of the diet, the governor read a royal message recognizing the separate existence of the Bohemian kingdom, and promising that the emperor should be crowned as king at Prague. It was received with delight throughout Bohemia, and the Czechs drew a draft constitution of fundamental rights. On this the Germans, now that they were in a minority, left the diet, and began preparations for resistance. In Upper Austria, Moravia and Carinthia, where they were outvoted by the Clericals, they seceded, and the whole work of 1867 was on the point of being overthrown. Were the movement not stopped the constitution would be superseded, and the union with Hungary endangered. Beust and Andrassy warned the emperor of the danger, and the crown prince of Saxony was summoned by Beust to remonstrate with him. A great council was called at Vienna (October 20), at which the emperor gave his decision that the Bohemian demands could not be accepted. The Czechs must come to Vienna, and consider a revision of the constitution in a constitutional manner. Hohenwart resigned, but at the same time Beust was dismissed, and a new cabinet was chosen once more from among the German Liberals, under the leadership of Prince Adolf Auersperg, whose brother Carlos had been one of the chief members in the Burger Ministerium. For the second time in four years the policy of the government had completely changed within a few months. On i2th September the decree had been published accepting the Bohemian claims; before the end of the year copies of it were seized by the police, and men were thrown into prison for circulating it.

Auerspcrg's ministry held office for eight years. They began as had the Burger Ministerium, with a vigorous Liberal centralizing policy. In Bohemia they succeeded at first in almost crushing the opposition. • In 1872 the diet was dissolved; and the whole influence of the government was used to procure a German majority. Koller, the governor, acted with-great vigour. Opposition newspapers were suppressed; cases in which Czech journalists 'were concerned were transferred to the German districts, so that they were tried by a hostile German jury. Czech manifestoes were confiscated, and meetings stopped at the slightest appearance of disorder; and the riots were punished by quartering soldiers upon the inhabitants. The decision between the two races turned on the vote of the feudal proprietors, and in order to win this a society was formed among the German capitalists of Vienna (to which the name of Cliuhrus was popularly given) to acquire by real or fictitious purchase portions of those estates to which a vote was attached. These measures were successful; a large German majority was secured; Jews from Vienna sat in the place of the Thuns and the Schwatzenbergs; and as for many years the Czechs refused to sit in the diet, the government could be carried on without difficulty. A still greater blow to the Federalists was the passing of a new electoral law in 1873. The measure transferred the right of electing members of the Rcichsrath from the diets to the direct vote of the people, the result being to deprive the Federalists of their chief weapon; it was no longer possible to take a formal vote of the legal representatives in any territory refusing to appoint deputies, and if a Czech or Slovene member did not take his seat the only result was that a single constituency was unrepresented, and the opposition weakened. The measure was strongly 'opposed. A petition with 250,000 names was presented from Bohemia; and the Poles withdrew from the Rcichsrath when the law was introduced. But enough members remained to give the legal quorum, and it was carried by 120 to 2 votes. At the same time the number of members was increased to 353, but the proportion of representatives from the different territories was maintained and the system of election was not altered. The proportion of members assigned to the towns was increased, the special representatives of the chambers of commerce and of the landed proprietors were retained, and the suffrage was not extended. The artificial system which gave to the Germans a parliamentary majority continued.

At this time the Czechs were much weakened by quarrels among themselves. A new party had arisen, calling themselves ^^ Radicals, but generally known as the Young Czechs.

«*»»/on'«. They disliked the alliance with the aristocracy and the clergy; they wished for universal suffrage, and recalled the Hussite traditions. They desired to take their seats in the diet, and to join with the Germans in political reform. They violently attacked Rieger, the leader of the Old Czechs, who maintained the alliance with the Feudalists and the policy of passive opposition. Twenty-seven members of the diet led by Gregr and Stadkowsky, being outvoted in the Czech Club, resigned their scats. They were completely defeated in the elections which followed, but for the next four years, the two parties among the Czechs were as much occupied in opposing one another as in opposing the Germans. These events might hav£

secured the predominance of the Liberals for many years. The election after the reform bill gave them an increased majority in the Reichsralh. Forty-two Czechs who had won seats did not attend; forty-three Poles stood aloof from all party combination, giving their voles on each occasion as the interest of their country seemed to require; the real opposition was limited to forty Clericals and representatives of the other Slav races, who were collected on the Right under the leadership of Hohenwart. Against them were 227 Constitutionalists, and it seemed to matter little that they were divided into three groups; there were 105 in the Liberal Club under the leadership of Herbst, 57 Constitutionalists, elected by the landed proprietors, and a third body of Radicals, some of whom were more democratic than the old Constitutional party, while others laid more stress on nationality. They used their majority to carry a number of important laws regarding ecclesiastical affairs. Yet within four years the government was obliged to turn for support to the Federalists and Clericals, and the rule of the German Liberals was overthrown. Their influence was indirectly affected by the great commercial crisis of 1873. For some years there had been active speculations on isrj. the Stock Exchange; a great number of companies, chiefly banks and building societies, had been founded on a very insecure basis. The inevitable crisis began in 187.-, it w«s postponed for a short time, and there was some hope that the Exhibition, fixed for 1873, would bring fresh prosperity; the hope was not, however, fulfilled, and the final crash, which occurred in May, brought with it the collapse of hundredsof undertakings. The loss fell almost entirely on those who had attempted to increase their wealth by speculative investment. Sound industrial concerns were little touched by it, but speculation had become so general that every class of society was affected, and in the investigation which followed it became apparent that some of the most distinguished members of the governing Liberal party, including at least two members of the government, were among those who had profited by the unsound finance. It appeared also that many of the leading newspapers of Vienna. by which the Liberal party was supported, had received money from financiers. For the next two years political interest was transferred from parliament to the law courts, in which financial scandals were exposed, and the reputations of some of the leading politicians were destroyed.1

This was to bring about a reaction against the economic doctrines which had held the field for nearly twenty years; but the full effect of the change was not seen for some time. What ruined the government was the want of i*lt^.°tt unity in the party, and their neglect to support a ntfittrr. ministry which had been taken from their own ranks. In a country like Austria, in which a mistaken foreign policy or a serious quarrel with Hungary might bring about the disruption of the monarchy, parliamentary government was impossible unless the party which the government helped in internal matters were prepared to support it in foreign affairs and in the commercial policy bound up with the settlement with Hungary. This the constitutional parties did not do. During discussions on the economic arrangement with Hungary in 1877 a large number voted against the duties on coffee and petroleum, which were an essential part of the agreement; they demanded, moreover, that the treaty of Berlin should be laid before the House, and 112 members, led by Herbst, gave a vote hostile to some of its provisions, and in the Delegation refused the supplies necessary for the occupation of Bosnia. They doubtless were acting in accordance with their principles, but the situation was such that it would have been impossible to carry out their wishes; the only result was that the Austrian ministers and Andrassy had to turn for help to the Poles, who began to acquire the position of a government party, which they have kept since then. At the beginning of 1879 Auersperg's resignation, which bad long been offered, was accepted. The constitutionalists remained

1 See Wirth. CtichMtt dtr Ihiuldskrisen (Frankfort, 1885): and an interesting article by Schaffle in the Zeiixhnft /. uttgart, ISJ4).

in power; but in the reconstructed cabinet, though Strcmayr was president, Count Taaffe, as minister of the interior, was the most important member.

Parliament was dissolved in the summer, and T.i ilTc, by private negotiations, first of all persuaded the Bohemian feudal proprietors to give the Feudalists, who had long been excluded, a certain number of seats; secondly, he succeeded where Potocki had failed, and came to an agreement with the Czechs; they had already, in 1878, taken their seats in the diet at Prague, and now gave up the policy of " passive resistance,11 and consented to take their seats also in the parliament at Vienna.

On entering the House they took the oath without reservation, but in the speech- from the throne the emperor himself stated that they had entered without prejudice to their convictions, and on the first day of the session Rieger read a formal reservation of right. The Liberals had also lost many seats, so that the House now had a completely different aspect; the constitutionalists were reduced to 91 Liberals and 54 Radicals; but the Right, under Hohenwart, had increased to 57, and there were 57 Poles and 54 Czechs. A combination of these three parties might govern against the constitutionalists. T.iaflc, who Dow became first minister, tried first ol all to govern by the help of the moderates of all parties, and be included representatives of nearly every party in his cabinet. But the Liberals again voted against the government on an important military bill, an offence almost as unpardonable in Austria as in Germany, and a great meeting of the party decided that they would not support the government. Taaffc, therefore, was obliged to turn for support to the Right. The German members of the government resigned, their place was taken by Clericals, Poles and Czechs, Smolka was elected president of the Lower House of the Reichsrath, and the German Liberals found themselves in a minority opposed by the " iron ring '" of these three parties, and helpless in the parliament of their own creation. For fourteen years Taaffe succeeded in maintaining the position he had thus secured. He was not himself a party man; he had sat in a Liberal government; he had never assented to the principles of the Federalists, nor was he an adherent of the Clerical party. He continued to rule according to the constitution; his watchword was " unpolitical politics," and he brought in little contentious legislation. The great source of his strength was that he stood between the Right and a Liberal government. There was a large minority of constitutionalists; they might easily become a majority, and the Right were therefore obliged to support Taaffe in order to avert this. They continued to support him, even if they did not gel from him all that they could have wished, and the Czechs acquiesced in a foreign policy with which they had little sympathy. Something, however, had to be done for them, and from time to time concessions had to be made to the Clericals and the Federalists.

The real desire of the Clericals was an alteration of the school law, by which the control of the schools should be restored to the Church and the period of compulsory education reduced. In this, however, the government did not meet them, and in 1883 the Clericals, under Prince Allied v. Liechtenstein, separated from Hohenwart's party and founded their own club, so that they could act more freely. Both the new Clerical Club and the remainder of the Conservatives wen much affected by the reaction against the doctrines of economic Liberalism. They began to adopt the principles of Christian Socialism expounded by Rudolf Mayer and Baron yon Vogellang. and the economic revolt against the influence of capital was with them joined to a half-religious attack upon the jewt. They represented that Austria was being governed by a dose ring of political financiers, many of whom were Jews or in the pay of the Jews, who used the forms of the constitution, under which there was no representation of the working classes, to exploit the labour of the poor at the same time that they mined the people by alienating them from Christianity in "godlea schools." It was during these years that the foundation for tbr democratic clericalism of the future was laid. The chief

political leader in this new tendency was Prince Aloys v. Liechtenstein, who complained of the political influence curdled by the chambers of commerce, and demanded the organization of working men in gilds. It was by their influence that a law was introduced limiting the rate of interest, and they co-operated with the government in legislation for improving the malarial condition of the people, which had been neglected during the period of Liberal government, and which was partly similar to the laws introduced al the same time in Germany.

There seems no doubt that the condition of the workmen in the factories of Moravia and the oil-mines of Galicia was peculiarly unfortunate; the hours of work were very long, the conditions were very injurious to health, and there were no precautions against accidents. The report of a parliamentary * inquiry, called for by the Christian Socialists, showed the necessity for interference. In 1883 a law was carried, introducing factory inspection, extending to mines and all industrial undertakings. The measure seems to have been successful, and there is a general agreement that the inspectors have done their work with skill and courage. In 1884 and 1885 important laws were passed regulating the work in mines and factories, and introducing a maximum working day of eleven hours in factories, and ten hours in mines. Sunday labour was forbidden, and the hours during which women and children could be employed were limited. Great power was given to the administrative authorities to relax the application of these laws in special cases and special trades. This power was at first freely used, but it was closely restricted by a further law of 1893. In 1887-1888 laws, modelled on the new German laws, introduced compulsory insurance against accidents and sickness. These measures, though severely criticized by the Opposition, were introduced to remedy obvious, and in some cases terrible social evils. Other laws to restore gilds among working men had a more direct political object. Another form of state socialism was the acquisition of railways by the state. Originally railways had been built by private enterprise, supported in some cases by a state guarantee; a law of 1877 permitted the acquisition of private lines; when Taaffe retired the state possessed nearly 5000 m. of railway, not including those which belonged to Austria and Hungary conjointly. In 1899 a minister of railways was appointed. In this policy military considerations as well as economic were of influence. In every department we find the same reaction against the doctrines of laissez-faire. In 1889 for the first time the Austrian budget showed a surplus, partly the result of the new import duliea, partly due to a reform of taxation.

For a fuller description of these social reforms, see the Jahrbuch Jur Gesclztcbung (Leipzig, 1886, 1888 and 1894); also the annual summary of new laws in the Zciluhrift f&r Staatsvristettschafl (Stuttgart). For the Christian Socialists, see Nitti, Catholic 'Socialism (London. 1895).

Meanwhile it was necessary for the government to do something for the Czechs and the other Slavs, on whose support they depended for their majority. The influence of the government became more favourable to them in the matter of language, and this caused the struggle of nationalities to assume the first place in Austrian public life—a place which it has ever since maintained. The question of language becomes a political one, so far as it concerns the use of different languages in the public offices and law courts, and in the schools. There never was any general law laying down clear and universal rules, but since the time of Joseph II. German had been the ordinary language of the government. All laws were published in German; German was the sole language used in the central public offices in Vienna, and the language of the court and of the army; moreover, in almost every part of the monarchy it had become the language of what is called the internal service in the public offices and law courts; all books and correspondence were kept in German, not only in the German districts, but also in countries such as Bohemia and Galicia. The bureaucracy and the law courts had therefore become a network of German-speaking officialism extending over the whole country; no one had any share in the government unless be could speak and write German. The only exception was in the Italian districts; not only In Italy its.- If (in Lombardy, and afterwards in Venetia), but in South Tirol, Trieste, Istria and Dalinatia, Italian has always been used, even for the internal service of the government offices, and though the actual words of command are now given in German and the officers are obliged to know Serbo-Croatian it remains to this day the language of the Austrian navy. Any interference with the use of German would be a serious blow to the cause of those who hoped to Germanize the whole empire. Since 1867 the old rules have been maintained absolutely as regards the army, and German has also, as required *by the military authorities, become the language of the railway administration. It remains the language of the central offices in Vienna, and is the usual, though not the only, language used in the Rcichsrath. In 1869 a great innovation was made, when Polish was introduced throughout the whole of Galicia as the normal language of government; and since that time the use of German has almost entirely disappeared in that territory. Similar innovations have also begun, as we shall see, in other parts.

Different from this is what is called the external service. Even in the old days it was customary to use the language of the district in communication between the government offices and private individuals, and evidence could be given in the law courts in the language generally spoken. This was not the result of any law, but depended on administrative regulations of the government service; it was practically necessary in remote districts, such as Galicia and Bukovina, where few of the population understood German. In some places a Slav-speaking individual would himself have to provide the interpreter, and approach the government in German. Local authorities, e.g. town councils and the diets, were free to use what language they wished, and in this matter the Austrian government has shown great liberality. The constitution of 1867 laid down a principle of much importance, by which previous custom became established as a right. Article 19 runs: "All races of the empire have equal rights, and every race has an inviolable right to the preservation and use of its own nationality and language. The equality of all customarv (londcsiiMich) languages in school, office and public life, is recognized by the state. In those territories in which several races dwell, the public and educational institutions are to be so arranged that, without applying compulsion to learn a second Landcssprachc, each of the races receives the necessary means of education in its own language." The application of this law gives great power to the government, for everything depends on what is meant by larutesiiblick, and it rests with them to determine when a language is customary. The Germans demand the recognition of German as a customary language in every part of the empire, so that a German may claim to have his business attended to in his own language, even in Dalmatiaand Galicia. In Bohemia the Czechs claim that their language shall be recognized as customary, even in those districts such as Reichcnbcrg, which are almost completely German; the Germans, on the other hand, claim that the Czech language shall only be recognized in those towns and districts where there is a considerable Czech population. What Taaffe's Administration did was to interpret this law in a sense more favourable to the Slavs than had hitherto been the case.

Peculiar importance is attached to the question of education. The law of 1867 required that the education in the elementary schools in the Slav districts should be given in Czech or Slovenian, as the case might be. The Slavs, however, required that, even when a small minority of Slav race settled in any town, they should not be compelled to go to the German schools, but should have their own school provided for them; and this demand was granted by Prazak, minister of education under Count Taaffe. The Germans had always hoped that the people as they became educated would cease to use their own particular language. Owing to economic causes the Slavs, who increase more rapidly than the Germans, tend to move westwards, and large numbers settle in the towns and manufacturing districts. It might hive been, expected that they would then cease to use

their own language and become Germanized; but, on the contrary, the movement of population is spreading their language and they claim that special schools should be provided for them, and that men of their own nationality should be appointed to government offices to deal with their business. This has happened not only in many places in Bohemia, but in Styria, and even, in Vienna, where there has been a great increase in the Czech population and a Czech school has been founded. The introduction of Slavonic into the middle and higher schools has affected the Germans fn their most sensitive point. They havt always insisted that German is the Kullut-sfrache. On one occasion Count A. Auersperg (Anastasius Grlln) entered the diet of Camiola carrying the whole of the Slovenian literature under his arm, as evidence that the Slovenian language could not well be substituted for German as a medium of higher education.

The first important regulations which were issued under the law of 1867 applied to Dalmatia, and for that country between 1872 and 1876 a series of laws and edicts were issued determining to what extent the Slavonic idioms were to be recognized. Hitherto all business had been done in Italian, the language of a small minority living in the seaport towns. The effect of these laws has been to raise Croatian to equality with Italian. It has been introduced in all schools, so that nearly all education is given in Croatian, even though n knowledge of Italian is quite essential for the maritime population; and it is only in one or two towns, such as Zara, the ancient capital of the country, that Italian is able to maintain itself. Since >88a* there has been a Slav majority in the diet, and Italian has been disused in the proceedings of that body. In this case the concessions to the Servo-Croatians had been made by the Liberal ministry; they required the parliamentary support of the Dalmatian representatives, who were more numerous than the Italian, and it was also necessary to cultivate the loyalty of the Slav races in this part so as to gain a support for Austria against the Russian party, which was very active in the Balkan Peninsula. It was better to sacrifice the Italians of Dalmatia than the Germans of Carinthia.1

It was not till 1879 that the Slovenes received the support of the government. In Carniola they succeeded, in 1889, in winning a majority in the diet, and from this time, while the diet of Styria is the centre of the German, that of Carniola is the chief support of the Slovene agitation. In the same year they won the majority in the town council of L.iibach, which had hitherto been German. They were able, therefore, to introduce Illyrian as the official language, and cause the names of the streets to be written up in Illyrian. This question of street names is, as it were, a sign of victory. Serious riots broke out in some of the towns of Istria when, for the first time, Illyrian was used for this purpose as well as Italian. In Prague the victory o( the Czechs has been marked by the removal of all German street names, and the Czech town council even passed a by-law forbidding private individuals to have tablets put up with the name of the street in German. In consequence of a motion by the Slovene members of the Rcichsrath and a resolution of the diet of Carniola, the government also declared Slovenian to be a recognized language for the whole of Camiola, for the district of Cilli in Slyria, and for the Slovene and mixed districts in the south of Carinthia, and determined that in Lsibach a Slovene gymnasium should be maintained as well as the German one.

The Germans complain that in many cases the government acted very unfairly to them. They constantly refer to the caw of Klagenfurt. This town in Carinlhia bad a population of 16,491 Germanspeaking Austrian*; the Slovenian-speaking population numbered 568, of whom 180 were inhabitants ofthe Ruo! or the hospital. The government, however, in 1880 declared Slovenian a customary language, so that provision had to be made in public offices and law courts Tor dealing with business in Slovenian. It must be remembered, however, that even though the town wax German, the rural population of the surrounding villages was chiefly Slovene.

It was in Bohemia and Moravia that the contest was fought out with the greatest vehemence. The two races were nearly equal, and the victory of Czech would mean that nearly two

1 For Dalmatia, leeT. G. Jackson, Dalmatia, Ift. (Oxford, 1880).

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