only to reckon with the opposition of Hungary but also to pay particular attention to the peasant voters, in the question of buying meat abroad and importing frozen meat from the Argentine. On this account, especially after the death of Lueger (on March 10 1910), a dominating personality who had held all parties together, opinion in Vienna and other towns turned against the Christian Socialists, who were accused of refusing all active measures of relief. Thus it happened that the elections to the Reichsrat in July 1911 were characterized by a temporary coalition of the German Liberals with the Social Democrats against the Christian Socialist party; this led to heavy losses on the part of the latter, especially in the towns. In Vienna especially they lost every seat at one blow, by which means Weisskirchner found himself deprived of all parliamentary support. He resigned, and with him the head of the Cabinet; all the ground had slipped from beneath his feet, and on June 19 1911 Bienerth resigned for good.

Gautsch Ministry.-The Bienerth Government was succeeded by that of Baron Gautsch.1 He too could attempt nothing more than to take up as objective an attitude as possible above parties. His first task was to try to set in motion again the negotiations for a German-Czech compromise in Bohemia. The Czechs, however, had realized that at need they could get along without a Diet, and they began once more their encroachments in Vienna. They opened a Komensky school there without proper authorization, and when this was closed by the municipal authorities, they organized a demonstration of Czech women, who crowded with their children into the Parliament House. Shortly before this the protests of Hungary had succeeded in procuring the rejection of a cargo of Argentine frozen meat which had been destined for Vienna. The fury of the Viennese found expression in violent demonstrations, in which, for the first time, employees of the State took part in uniform, among them employees of the State railways and of the post-office. Gautsch, who was a convinced upholder of the principle of State authority, had recourse to severe measures of punishment and discipline, which had as their result a revolver attack on the Minister of Justice from the gallery of Parliament.

On Oct. 28 somewhat unexpectedly the prime minister resigned, partly because this series of unfortunate incidents had shaken the Emperor's confidence, partly because his secret efforts to persuade the Czechs to join his Cabinet had made him suspect to the other parties. But the Czechs not only demanded two Czech ministers, but also a number of headships of departments and councillorships in each department. This would have led to an introduction of the national divisions into the central administration, and if similar claims were put in by other nations the principle of a purely objective Government transcending nationality would have been done away with. So Gautsch would have nothing to do with it.

Stürgkh Ministry.-Count Stürgkh (b. 1859), the Minister of Education, was next entrusted with the formation of a Cabinet. He composed his Cabinet of colourless officials and confessed adherents of the various nationalities. His programme was to be an honourable mediator in the German-Bohemian quarrel, to extend the railway system, and to satisfy the wishes of the Poles in the waterways question by an expenditure of 73.4 million kronen on canal construction in Galicia, to which Galicia was to contribute only 9.4 million kronen, the State finding the other 64, and by an expenditure of 125 millions on river improvements, 99 of which would be contributed by the State. Early in Stürgkh's Ministry prominence was taken by the Catholic marriage question. While in Austria the marriage of non-Catholics could be dissolved, so as to make a new marriage possible, paragraph iii. of the civil code provided that "the tie of a valid marriage between Catholic persons can be dissolved only by the death of one of the parties. And this shall be the case even when only one party was attached to the Catholic religion at the time of the conclusion of the marriage." Thus Catholic and mixed Catholic marriages were indissoluble even in the 1 Baron Paul Gautsch von Frankenthurn (b. 1851) had been Premier and Minister of the Interior, 1897-8, and Premier 1904-6.

event of a change of creed. The desire of numerous divorced persons for a change in the law which prevented their remarriage was manifested in repeated demonstrations before Parliament; especially in that of Dec. 1911, in which it was asserted that the lives of half a million divorced wives were affected. In spite of the reform of the civil law in other respects (June 1 1911) these provisions remained in force until the republic. Owing to the opposition of the Christian Socialist party, they were even then not abolished; but they were relaxed by numerous dispensations in individual cases.

It was while Stürgkh was Austrian premier that the World War broke out (see under FOREIGN POLICY, p. 327). At the beginning of the war the attitude of the nationalities of the Austrian Empire was somewhat unexpectedly loyal to the state. The immediate cause of war-the murder of the heir to the throne→→ had profoundly impressed all the Austrian peoples, and the belief that efforts were being made from without to destroy the old empire produced among them a strong reaction in favour of its preservation. Enrolment in the army proceeded everywhere without friction, and much more expeditiously than the military authorities had expected. It was only to be expected that the Germans, whose very existence was in question, should show themselves to be patriotic. But it was somewhat surprising that at Prague, after the declaration of war, Germans and Czechs sang Die Wacht am Rhein together in the streets, and the burgomaster, a Czech, made a speech in German before the town hall in which he called for cheers for the Emperor William and the fraternization of Germans and Czechs. On Oct. 24 1914 the Czech Union solemnly declared: "It is true that we have been against one Government or another, but never against the state." On Nov. 15 the Czech parties in Moravia issued a patriotic manifesto. The procedure of the Poles was similar; all the Polish parties united in a joint central committee which issued a manifesto in favour of performing their duty to the state (Aug. 15). On Aug. 27 the Ruthenian Metropolitans, too, issued a protest against "tsarism," and in like manner the Ukrainians protested (Nov. 1) against Russian oppression of freedom of conscience. On Nov. 23 30,000 Rumanian peasants of the Bukovina got up a great manifesto in favour of the emperor and the empire, and on Dec. 1 patriotic protestations from the Rumanian Club followed. These proclamations on the part of all the Slav peoples of Austria proved that imperial sentiment was more deeply rooted than Austria's enemies had believed.

These evidences of patriotism continued for a long time during the war; even after Italy's declaration of war the majority of the Italian deputies in S. Tirol issued a loyal declaration "in the name of the overwhelming majority of the population," as they asserted (June 14 1915). On the other hand the efforts made for years by Panslav idealists, Russophil agitators, Serbian propagandists and Italian irredentists, were naturally not without effect. Isolated instances of relations being established with co-nationals in the enemy camp were recorded from the beginning. The question was repeatedly raised as to why the prime minister did not take advantage of this patriotic spirit to obtain a corresponding parliamentary demonstration; but it had surprised him, as it had many, and he shrank from the serious responsibility which would have resulted if the experiment had turned out badly; the aged Emperor's need of quiet, and the conviction that the Reichsrat, if summoned ad hoc, would, as for so long before, be of no active use, also played their part. The population had not been consulted as to the declaration of war, and their opinion was no more listened to now; but by giving up the coöperation of Parliament the prime minister at the same time abdicated his power in favour of the military authorities. Since there was no longer a Parliament, or any personal immunity, the military authorities established unlimited police rule, which seemed to be obsessed with terror of its own citizens; anyone who seemed to them suspect was subjected to internment in concentration camps. This ruthlessness towards their own citizens, who were arraigned before military courts in trials for high treason, stood in curious contrast to the considerate treatment of " enemy aliens," who were comparatively little molested. For example, even many

months after the beginning of the war advertisements were to be read in all the papers, in which English and French people offered to teach languages or instruct children even in English and French, stating their nationality and address-a proof that the authorities did not put any particular difficulties in the way of these foreigners, and that the people did not take advantage of knowing their addresses to molest them.

The political impotence of the prime minister was plainly evident in the military proceedings against Kramarz, in which Stürgkh shook hands with the accused and gave evidence in his favour, but without being able to avert the death sentence passed by the military court, though he did at least prevent the execution of the sentence.

During the later part of the Stürgkh Ministry it is no longer possible to speak of an internal policy, for the military alone ruled. Towards the end, however, Stürgkh was actually endeavouring to bring about a reassembly of the Reichsrat, when he was shot by the Independent Socialist Dr. Friedrich Adler (Oct. 21 1916).

Körber Ministry.-The object of the murder of Stürgkh, namely, to lead to a powerful demonstration in favour of the summoning of the Reichsrat, was not attained; at a meeting held between some deputies and members of the Upper House (Oct. 23 1916) no definite proposal to this effect was brought forward, and the Körber Ministry, which was summoned on Nov. 1, ruled during its eight weeks' period of activity without Parliament. On Nov. 14 Körber set up an office for food control (Volksernährungsamt) which later became the Ministry of Food (Jan. 1917). Little else was done; the approaching death of Francis Joseph (Nov. 21) prevented any far-reaching plans. When the worn-out old Emperor was succeeded by an immature boy, the serious, positive and somewhat "schoolmasterish" Körber did not strike the right note with him. Charles I. could not forgive Körber for prevailing upon him to promise to take the oath to the constitution, since the constitution was no longer tenable and Stürgkh had already prepared constitutional amendments; on the other hand Charles's assumption of the supreme command of the army was opposed to Körber's taste. When Körber declined to carry through the Ausgleich with Hungary without consulting Parliament, and made it a question of confidence the young Emperor on Dec. 20 1916 lightly dismissed his best adviser.

Clam-Martinitz Ministry.-Körber's successor; Clam-Martinitz,1 who belonged to the violently Czech feudal nobility, tried to form a national coalition Cabinet, including two German politicians. The political event of the moment was President Wilson's note (Dec. 11 1916) and the Entente's answer (Jan. 12 1917) as to the liberation of the " oppressed " peoples of Austria. It called forth sharp counter manifestoes on the part of those who were to be "liberated." A resolution adopted unanimously on Jan. 17 1917 by the Croatian representatives proclaimed, as a condition of the national existence and the cultural and economic development of the Southern Slavs, that they should remain under the House of Habsburg. The Czech Union rejected, by a unanimous resolution of its governing committee, the suggestions of the Entente, as being insinuations based on erroneous premises, and deprecated by a reference to their secular allegiance "the interference of the Entente Powers " (Jan. 23 1917). Koroschek, the Slovene leader, wrote to the minister in the name of his party that "these hypocritical assurances have called forth nothing but indignation among the Southern Slavs" (Jan. 1 1917). The Rumanian Club made a similar declaration on Jan. 24. The hope of achieving parliamentary coöperation on the basis of such loyal declarations as these soon vanished. The Germans demanded, as a condition precedent to the effective participation of their nationality in the affairs of the state, an alteration of the constitution by imperial ordinance (Oktroi), which should define

1 Count Clam-Martinitz (b. 1863), an hereditary member of the House of Lords, and chairman of the Committee of Privileges in it, had been head of the Ministry of Agriculture from Oct. 31 1916; up to June 23 1917 he was Prime Minister, then Governor of Montenegro

the boundaries between the nationalities in Bohemia, rearrange the districts (Kreise) accordingly, declare German to be the language in which the business of the Reichsrat was to be conducted, and lay down more stringent rules of procedure. The Slavs, on the other hand, demanded the "unconditional " summoning of Parliament. The Germans yielded, and the Reichsrat met on May 31. Both the Southern Slavs and Czechs immediately made constitutional declarations; the former demanded a national union of the Southern Slavs, the latter a territorial union of the lands S. of the Sudetic Mountains, while the Germans opposed any transformation of the monarchy into a federal state. In the face of this uncompromising display of opposition there could be no hope for the Coalition planned by Clam-Martinitz for the creation of a new Austria, and on June 19 he resigned.

Seidler Ministry.-On June 24 1917 the Emperor appointed as prime minister his former tutor, the Ritter von Seidler,2 who summoned a Ministry of mere officials, just to carry on business for the time being; any constitutional reorganization was still postponed. On July 2, on the occasion of the Crown Prince's birthday, the Emperor proclaimed a wide measure of amnesty, in which on July 10 even Kramarz and his confederates were included. This precipitate action aroused the mistrust of the Germans, and, in view of the ambiguous attitude of the prime minister towards the Czechs, led to a vote of censure being passed at a meeting of the German national council at Prague on July 15.

Seidler now resolved to undertake the reconstruction of the crumbling body politic, with a reorganized Cabinet (Aug. 31 1917). A great economic and social programme was announced, including the extension of waterways, the exploitation of electricity, an improved system of communication, industrial insurance, and a department for public health. Politically the organization of the state on the fundamental principle of national autonomy was to follow; he hoped to get round the nationalist obstacles in Bohemia by a rearrangement of districts with local delimitation according to nationality. This bold plan met with no success; the economic programme in particular did not come into force; it was an empty promise, which was not taken seriously. But the political programme, on the other hand, let loose a violent attack of the Slav nationalities on the state. The Polish committee, which had been formed on a political basis, was dissolved after unprecedentedly stormy negotiations, due to discontent at the cession of Chelm (Kholm) to the Ukraine; the Poles threatened the rest of Austria with a boycott of food, and abstained from voting on the budget. The action of the Czechs was even more dangerous to the state; on Jan. 12 1918 a meeting of their deputies at Prague unanimously accepted a resolution to the effect that the Bohemian question was to receive an international solution at the Peace Congress. Seidler regretfully pointed out in Parliament on Jan. 22 that this resolution was totally opposed to that of May 1917, which could still be reconciled with the fundamental conceptions of patriotism. The Germans rejoined with a demand for a province of their own, German Bohemia, separate from Czech-Bohemia (Jan. 22). Similarly the Ruthenians demanded that East Galicia should be erected into a separate Crown land under the name of the Ukraine (March 3). Since the Northern and Southern Slavs had absented themselves and the Poles were in opposition, the Reichsrat was adjourned (May 3), and the Germans now again demanded the grant of a revised constitution, with German as the language of State, a special status for Galicia and Dalmatia, access for the Germans to the Adriatic, and the partition of Bohemia. Seidler granted indeed a rearrangement of districts in Bohemia (seven Czech, four German and two mixed); but he could not make up his mind to go further, and tried the expedient of summoning a fresh Parliament on June 16. But the day before

2 Ritter Ernst von Seidler (b. 1862 at Schwechat, near Vienna) was secretary to the Chamber of Commerce in the mountain town of Leoben; then an official in the Ministry of Agriculture, and from June 1 1917 Minister of Agriculture; he was also a university reader

the Czechs had set up a national committee, with Kramarz at its head, which adopted the programme of "a Czechoslovak State sovereign and independent." They proposed the impeachment of the minister responsible for the nomination of the chiefs of the districts, and declared that they would take no part in revising the constitution. His plans having thus been completely shipwrecked, Seidler resigned on July 22 1918.

Hussarek Ministry.-Hussarek, who was appointed prime minister on July 24, declared his programme to be parliamentary government, with reconciliations of the nationalities, and constitutional and administrative reform. The Czechs, however, declared that. so far as they were concerned, nothing had been altered. Hussarek got through a six months' provisional budget with the help of the Poles against the votes of the Ukrainians, a proof that he had shelved the partition of Galicia. Immediately afterwards the Reichsrat adjourned for the summer holidays (July 26), without having ventured on any steps towards the solution of the great problems of State.

The process of dissolution advanced rapidly, when England on Aug. 17 recognized the Czechoslovaks as an allied nation; to which the Austrian Government replied with the declaration that no such state existed, but only individual traitors. In a communication to the press on Sept. 4 Hussarek insisted that there were no oppressed peoples in Austria, that on the contrary her constitution assured to the several nationalities a status of equal rights like that of no other state on earth, and he gave a warning against its destruction—a vain appeal to reason. On Sept. 18 the Czech National Council had already imposed some taxes. On Oct. 1 Hussarek again gave the Reichsrat a chance; he recognized expressly the right of the peoples to free self-determination, adopted the standpoint of national autonomy, championed Polish independence, and announced the union of all the Southern Slavs of Austria by constitutional means. This programme met with a cool reception; the Poles by now were expecting a new organization from the Peace Congress; the Southern Slavs desired union with those of their race in Hungary also; the Czechs opposed the division of the administrative commission into two parts; they did not want autonomy for their nation, but incorporation of the German Bohemians in their State, and refused all negotiations.

The Emperor now made a last despairing attempt; a manifesto of Oct. 16 proposed the conversion of Austria-not of Hungary, it is true-into a federal state composed of free nations, each with the territory which it occupied. This was far from resulting in any cooperation of the nationalities in realizing their former ideal; on the contrary, they felt themselves free from all constraint, and formed Governments having no connexion with the old state. On Oct. 19 the Ukraine National Council was set up in Lemberg, and the Slovene-Croat in Agram; on Oct. 20 the Czechs followed suit in Prague, on the 21st the German delegates in Vienna, on the 25th the Magyars in Pest.

Lammasch Ministry.-The summoning of the last Ministry of the Austrian Empire, under Lammasch from Oct. 27-31 1918, could only be regarded as an attempt on the part of the impotent Monarch to bring about a friendly liquidation between the peoples who were separating from each other. But since the non-German nationalities were not prepared to accept such a peaceful settlement, the liquidation between the monarchy and the new republic was confined to German-Austria, and Lammasch's friendly offices might certainly be thanked for the fact that in this quarter the settlement was achieved quite bloodlessly, in favourable contrast with the two years of fighting between Czechs, Poles, Ruthenians, Magyars, Rumanians, Southern Slavs and Italians. Lammasch and his ministers shared their official premises peacefully with the new secretaries of state of the Austrian Republic, and his last official act was to send out posters with an appeal for peace and quiet. (For the later history, see AUSTRIA, REPUBLIC OF.)

Baron Max Hussarek (b. 1860) professor of canon law at the university of Vienna, was of clerical leanings; he was Minister of Education from Nov. 3 1911 to his appointment as head of the Cabinet (July-Oct. 1918).

BIBLIOGRAPHY.-The Oesterreichische Politische Chronik, published by Neissel (Vienna 1910-8), contains among other things an account of the most important transactions of all the public bodies (Parliament, the Delegations, etc.); Neuere Gesetzgebung Oesterreichs nach den Reichstagsverhandlungen (Vienna); H. Kelsen, Reichsratswahlordnung (1907); Hauptprobleme der Staatsrechtlehre (1911); Verfassungsgesetze (1919); R. Charmatz, Der demokratischnationale Bundesstaat Oesterreich (1904); Oesterreich als Volksstaat (1918); Deutsch-oesterreichische Politik (1907); F. Kleinwächter, Untergang der oesterreich-ungarischen Monarchie (1920); Seton-Watson, The Future of Austria (1907); The Southern Slav Question; Absolutism in Croatia; Zd. Tobalka, Das böhmische Volk (1916); J. Zolger, Staatsrechtliche Ausgleich (1916); P. Samassa, Völkerstreit im Habsburgerreich (1910); K. Reuner, Oesterreichs Erneuerung (1916); R. Sieger, Oesterreichischer Staatsgedanke (1916): C. Brockhausen, Oesterreichische Verwaltungsreform (1916); Fr. Tezner, Entwicklung des Parlamentarismus in Oesterreich-Ungarn (1914); Fr. Wieser, Oesterreichs Ende (1919); Th. Sosnosky, Politik im Habsburgerreich (1913); R. Laun, Nationalitätenrecht (1917); J. Bärnreiter, Die böhmische Frage (1910); V. Lischka, Deutsch-Oesterreich unter slawischer Herrschaft (1913); E. Zenker, Nationale Organisation in Oesterreich (1916); L. Wimmer, Die Ostmark (1917); Munin, Oesterreich nach dem Kriege (1915); W. Schilling-Singalewitsch, Sonderstellung Galiziens (1917); A. Skene, Nationaler Ausgleich in Mähren (1910); L. Czwiklinski, Das Königreich Polen (1917); E. Plener, Reden (1911). (C. BR.)

ECONOMIC CONDITIONS

Pre-War Period.-During the years 1910-4, immediately preceding the World War, economic conditions in Austria showed no uniform tendency, for in many fields the signs pointed to a crisis, while in others developments seemed full of promise. These conditions were undoubtedly determined by the critical political situation from 1908 onward, which made it probable that, sooner or later, the Habsburg Monarchy would have to fight for its right to exist. It is true that nobody could have foreseen coming events; but things kept on occurring which counselled prudence, and threatened the economic situation from without. Added to this the state saw itself compelled, in view of the political situation, to increase its expenditure on armaments; and since this expenditure grew at a rate with which the revenue could not keep pace, the Government had constantly to raise large sums by borrowing in the open market, and in 1912 had even to raise a big loan in America. All this, combined with the stringency of the international money-market, meant a heavy burden on Austrian national economy. Voices were not lacking which, in view of Austria's relatively small share in foreign investments, ascribed the deterioration of the trade balance to the fact that the public bodies were "living beyond their means." (From 1875 onwards the balance of trade had been in favour of Austria; in 1907 it turned against her, and from this time the adverse balance showed a steady increase until 1913, when it slightly diminished.)

According to the census of 1910, out of 16 million persons following an occupation 8.5 millions were engaged in agriculture and forestry, 3.6 in industry, I-6 in commerce and transport, 2-3 in the public services, liberal professions, etc. Agriculture is thus the basis of economic existence for the greater part of the population; and the favourable crop statistics for the last years preceding the war, and especially the record harvest of the year 1912, must have had a beneficial influence upon the economic situation. The production of the most important crops for the whole of Austria is shown in Table I.

We must consider, in this connexion, that the prosperity of certain industries depends directly upon the results of the harvest. It was only in years when the harvest was most favourable that AustriaHungary was able to provide for her own requirements in corn; for export purposes only barley was of considerable importance, while wheat, and above all, of recent years, maize had to be imported. In Table II. is shown the excess of imports of grain over exports (+), or of exports over imports (−).

The price of sugar in Vienna showed in 1913 a considerable fall, following the good harvest. The total production for the year 1912-3, and also the amount of consumption, are the highest recorded in Austria.

As to the products of other industries closely related to agriculture that of beer and brandy varied, and was at times extraordinarily large.

The old Austria was very richly provided with raw materials; the coal and iron supply was especially rich; in the years immediately preceding the war the production of these two commodities followed in general a rising curve. Table VI. gives the quantities of important mineral products.

VII. shows how many offers of places corresponded on a yearly average to every hundred applications for work:

TABLE VII.-Employment per 100 Applications.

Smelting
Metal-working
Machine industry
Wood industry
Clothing manufacture
Textile industry
Paper industry
Building trade
Clerical occupations

An improvement was shown only in the position of employees in smelting works, otherwise a deterioration is to be observed everywhere, most markedly in the textile industry. In spite of this wages showed a rising tendency. Table VIII. gives the average daily wage (based on the returns for the accident insurance contribution) :TABLE VIII-Average Daily Wage in Vienna (in kronen).

Smelting
Metal-working
Machine industry
Textile industry
Wood industry

The cost of living increased on the whole; it was only in 1913 that there was a fall in the price of certain important commodities. The average prices per kilogram of certain commodities in Lower Austria are shown in Table IX. :

-

TABLE IX.-Average Food Prices (heller per kilogram).

Meat (Suppen fleisch)

White flour

Peas Potatoes Sauerkraut

Rice Lard

37.I 29.6 30.7

33.3 29.I

56.5 55.5 56.9 60.I 56.3 175·5 | 186.7 | 194·4 | 197·6 | 203·4

This very cheapening of many commodities in 1913, side by side with which went also a cheapening of many manufactured articles, was indicated as the sign of a decline in the power of consumption of the population.

It may here be mentioned that according to the savings bank returns there was also a decline in the amount of deposits. The deposits and withdrawals were respectively, in thousands of kronen:

Deposits Withdrawals

1910. 1911. 1912. 1913. 1,706 1,860 1,950 1,872 1,610 1,790 2,149 1,970 After the heavy withdrawals of 1912 the decline in deposits, together with a continuance of heavy withdrawals in 1913, is a clear sign of economic depression. The economic situation of Austria shared in this respect in the general development of world affairs, in which also, after a period of prosperity, a reaction set in in 1913. It is only surprising that in 1912 the reaction already showed itself sharply in Austria. The year 1914 soon showed signs of a coming relaxation of the economic crisis; but this development was interrupted by the World War.

The War Period, 1914-8.-The outbreak of war meant the almost complete paralysis of industry in Austria. Only the very narrow range of goods manufactured in peace-time found buyers, and these were used exclusively for the equipment of those going to the front. The bulk of industry found itself faced with the impossibility of disposing of the goods previously manufactured, and acted in consequence as best suited the interests of the moment: there were general dismissals of workmen, and enterprises were restricted or suspended. Numerous industries were almost entirely dependent upon export trade (e.g. the glass and porcelain industry in Bohemia), but foreign relations were to a large extent broken off through the closing of trade-routes and the entry into the enemy camp of countries which had been important markets. Thus during the first weeks of the war there was very great unemployment in parts of the industrial regions, since the dismissals far exceeded the proportion of enrolments in the army, while agriculture, which was already occupied with the harvest, suffered from a serious shortage of labour.

The Government had not prepared in advance any measures

for setting industrial production going again in any way. Its first steps in war economy were confined to the sphere of finance and credit: the bourse was closed, and a moratorium announced. With regard to the latter, however, the requirements of industry were studied to a certain extent, in that the withdrawal of money from the banks was allowed, so far as it was necessary for paying wages and for the provision of working capital.

There was no revival of industry until the orders of the military authorities began to come in, which gave lucrative employment. In a short time, and without any pressure from the Government, but solely as a result of the favourable prices it offered, industrial conditions were completely transformed so as to meet the exigencies of the war. At first indeed, since the war was only expected to last a short time, there was little disposition to incur the heavy expenditure necessary in order to secure a share in the manufacture of war material; but this attitude was soon changed, and within six months factories everywhere had been adapted to the supply of munitions and all the variety of other things required by the Government for the armies. Industry was thus in many ways compensated for the paralysis of trade with private buyers in the home market and for the closing of foreign markets, and it would have been able to continue quietly on the old lines but for the emergence of a new factor which fundamentally altered the conditions. This factor was the rupture of communications with foreign countries, due in the earlier stages of the war to the limitation, and at one time the prohibition, of exports by neutral countries, the passing over of some of these countries to the enemy, and lastly the blockade by the enemy Powers, which increased in efficiency and made it more and more difficult to import the most essential commodities, until in the end it was almost impossible to obtain from abroad anything, needed either for the soldiers or the civilians.

In this respect Austria found herself in the same position as the German Empire; in fact, her position was in many respects considerably worse; many richly productive territories were temporarily occupied by the enemy; and as Austria was far less well provided with raw materials than Germany she was less in a position to produce goods for exchange. In addition to this there was another quite exceptional source of difficulties which had the most serious consequences for Austria, namely her relation with Hungary, due to the peculiar constitutional structure of the Austro-Hungarian Monarchy. The Hungarian Government could claim the right to take independent economic measures for her own territory in war-time; a joint arrangement was only possible for the territories of the Dual Monarchy-which were united for tariff purposes-by agreements between the Austrian and Hungarian Governments; and since neither Government was exclusively concerned to carry out an adjustment of economic conditions solely in accordance with what was necessary for waging war and holding out with the supplies at their disposal, but each had also to champion the interests of one half of the monarchy against the other, the negotiations between the two Governments were often attended with the greatest difficulties, and constantly ended unsatisfactorily. Hungary, in accordance with her economic situation, had always the advantage in these negotiations, since she was incomparably richer than Austria in foodstuffs, and the latter was constantly thrown back upon Hungarian supplies; and this superiority on the part of Hungary became more and more definitely pronounced in proportion as the provision of the necessities of life for the army and civil population became a steadily-increasing anxiety.

The more complete the economic isolation of the monarchy the more the lack of raw materials made itself felt, both for the manufacture of indispensable war supplies and for the feeding of the civil population. To prevent the war being brought to a premature end by dearth of supplies, the Government took measures, modelled on those adopted in Germany, for ensuring that necessary goods should be supplied to the proper quarterswhether the army authorities, manufacturers of war material, or consumers and at a moderate price.

The quantity of raw materials which Austria had been in the habit of importing from abroad, and the quantity stored in

Fresh tasks were, however, soon imposed upon them. The virtual stoppage of all supplies of raw materials from abroad necessitated the strictest economy in the use of those available at home, and this led to an elaborate system of Government control. Since expert advice was absolutely essential to the efficient working of such control, the task of carrying out the regulations as to the distribution of materials, etc., was entrusted to central boards under the form of war associations (Kriegsverbände), or economic associations (Wirtschaftsverbände), each controlling certain materials. The associations, to which the manufacturers using these materials had to belong, were directed by elected committees; at the head of each was an expert appointed by the Government, which was represented on the board by a commissioner exercising the Government's right of supervision. In addition to regulating the distribution of raw materials these boards exercised other useful functions, such as discovering fresh sources of supply, improving methods of production, etc. They also acted as receiving centres for goods imported from neutral countries, allied states or occupied territories. In this way there arose central boards for wool, cotton, oil and fat, hides and leather, and various metals-to name only the more important materials.

The control exercised by these boards was limited in scope and touched only comparatively narrow classes. It was otherwise with the control of foodstuffs, which was all-embracing. The problem in Austria, as elsewhere, was to keep the prices of the necessaries of life at a level low enough to enable the people to live. The attempt to fix maximum prices broke down, owing to the temptations to secret dealing, and, as in England, the card system had to be introduced.

Early in 1915 an institution was established for regulating the traffic in grain during the war (Kriegsgetreide-Verkehrs-Anstalt); it had been preceded by a central maize board, established to control the distribution of the maize contributed by Hungary.