Austria-Hungary; with maps

Front matter

HANDBOUXD

AT THE

UNIVERSITY OF

Preface

This volume is intended to be a practical contribution towards the knowledge of a most difficult and complicated subject. The data on which it is based have been gathered in many journeys, extending over more than twenty years, and were originally collected partly for use in my reports to the Tloyal Commission on Labour, partly as subsidiary to a book on Russian affairs, and partly as serviceable for debates in the House of Commons. Probably the information would never have been condensed into a book had I not learnt from the greatest living authority that a volume of this kind, dealing with the economic and political problems of Austria-Hungary, was urgently needed, not only by British merchants and public men, but also by His Majesty's diplomatic and consular officers.

The book has therefore been written, not merely for a passing moment, like the present Near Eastern crisis, pregnant though that crisis is with events of far-reaching importance for the civilized world, but rather as an attempt to meet a permanent demand which exists, and has not yet been supplied.

The subject falls naturally into three divisions, and it has been necessary to prefix to each division a separate viii PREFACE

historical introduction, inasmuch as the Empire of Austria, the Kingdom of Hungary, and the Austro- Hungarian Conjoint State (Gesammtstaat), for historical reasons, regard the question from totally different points of view.

Further, it has been necessary to print in the Appendix several documents, such as the constitutional laws of the countries concerned and the Treaty of Berlin, because reference is constantly made to them in every discussion of the problems of the dual monarchy, yet the actual text is not easily accessible to the general reader.

As far as possible, in dealing with such a vast mass of material, the book has been brought up to date throughout, down to January 1, 1909. References to the authorities for the statements made are placed at the foot of each page, and not only serve as a means of acknowledging my very great obligations to many eminent writers, but also will enable politicians, officials, and business men, to verify the facts on debatable questions of law, economics, or history, and to obtain further details if they are required. It is probable that such additional information will become more and more essential as time goes on, because both history and practical politics will be more occupied with economic problems than with those religious, dynastic and national questions which have played so great a part in the past.

As this book is intended not so much for scholars as for the general public, no strict rule has been followed in rendering Slavonic, Magyar, or other foreign names, into English, but the translation which appears likely to

PREFACE ix

be most familiar to English readers has in each case been chosen. Nothing would be gained by transforming the well-known names Wekerle, Goluchowski, and Kossuth, into Vekerly, Goluhofsky, and Koshoot.

The maps, of which there are an unusual number, are employed to illustrate and supplement the text, especially in the historical introductions. There is an immense amount of information condensed in them which it is necessary for readers to have before them, but which it would have been impossible to express in print within the limits of this volume.

If the book has any merits, they are due to the unstinted help of innumerable friends in both halves of the dual monarchy, and to the personal assistance and advice of His Majesty's representatives at Vienna and Buda-Pest, which have been most freely given for many years past. It would be difficult to overrate the value of the information collected by His Majesty's servants abroad, and published by the Foreign Office ; but reports such as those contributed by members of the British Embassy at Vienna on finance, and the British Consuls at Serajevo on the condition of Bosnia and the Herzegovina, are undoubtedly as good as, if not better than, those of any similar foreign service.

In conclusion, 1 should like to assure my friends both in Austria and Hungary that on all the bitterly controversial questions with which this volume deals, not only within the dual monarchy, but also where my own country is concerned, I have tried to hold the balance level. The older one grows, the pleasanter do memories of long and unbroken friendship become ; and of all x PREFACE

the countries in which I can claim such memories, in a life passed in travel and public work, there are none to which both heart and mind more readily and affectionately turn than to those dominated by the twin capitals of Vienna and Buda-Pest.

G. D.

Biarritz,

P.S. — During the passage of these pages through the Press a number of events have taken place, the more important of which are briefly recorded in the footnotes. The net result up to May 1 has been that the principal difficulties, both external and internal, with which Austria- Hungary is confronted, have not been solved but postponed. On the other hand, it is to be remembered that the success of Baron Aehrenthal's diplomacy has produced a wave of patriotism at home, and an increase of prestige abroad, which will be of the utmost value in practical politics, and render the immediate future of the Hapsburg realms a problem of greater interest than ever.

Contents

I.— AUSTRIAN AFFAIRS

Chapter I Austrian Introduction

1. Early History : The Land and the People — Austria before 1526 — Mohacs — Union with Bohemia and Hungary — Personal Union — The Triune State — Centralization — Bohemia succumbs, 1620 ; Hungary resists. \2J Gradual Evolution ^/ of Dualism : The Compromise of 1867 — From 1867 to the Koerber Administration. £pP Extent, Organization, and Position ; Racial and Religious Divisions : Geography, Orography, Hydrography — Population — Vital Statistics — Social Divisions : Class Spirit, Nobles, Peasants, Citizens — Typical Cities : Vienna, Prague, Cracow, Trieste, Innsbruck, Graz, Ragusa. (4y Central and Local Government, Old and New. 5. Political Parties and Questions ; Present Government and Franchise : Universal Suffrage, 1906 — New Parliament, 1907 — Rise of Socialism — Austrian Social Democracy — The Emperor's Jubilee, 1908 - - 1-53

Chapter II

1. Importance of Agriculture to Austria : Statistics of Professions — Vital Statistics — Geographical and Racial Statistics — Climate — Soil — Old and New Schools. 2. Forms of Land Tenure : History — Extent — Position of Large and xii CONTENTS

Small Landowners — Peasant Proprietors. 3. Labour Questions : Wages — Hours — Conditions of Labour — Housing — Migrations from Province to Province and Emigration.

4. Methods of Cultivation ; Chief Crops : Agricultural Industries — Sugar — Wine — Forests — Cattle — Fishing.

5. Characteristics and Defects of Present System : Soil Improvements — Irrigation — Technical Education — Agricultural Co-operation and Credit — Die Borse. 6. Agricultural Legislation and Administration : Ministry of Agriculture ------ 54-94

Chapter III

1. Historical Sketch and Statistics: Production — Export — Industrial Population — Nationalities — Vital Statistics. 2. Political Rights of Labourers : Development of Labour Laws — Socialism in Austria. 3. Organization of Industry : Associations of Employers and Employed — Guilds — Girtels —Rings — Trade Unions — Chambers of Commerce — Labour Congresses and Press. 4. Conditions of Labour, Wages, Hours: Strikes — Industrial Court — Arbitration and Conciliation. 5. Special Industries : Mining — Iron — Engineering— Petroleum. 6. Transport and Miscellaneous Industries : Railways — Tramways — Shipping — Textiles — Clothing — Baking — Paper — Pottery — Glass — Printing — Building — Home Industries — Handwork — Women 7. Standard of Comfort : Housing, Food, Budget — Cooperation— Post-Office Savings Banks — Poor Law — Education. 8. Administration of Labour Laws, Inspection, Insurance. 9- Social Policy of Government : Labour Department — Labour Chambers — State as Employer — Monopolies — Employment Agencies - - 95-166

Chapter IV

1. Internal Commerce : Communications — Railways — Roads — Canals — Posts — Telegraphs — Shipping — Austrian Lloyd — Markets — Fairs. 2. Commercial Laws and Administra-

CONTENTS xiii tion : Minister of Commerce. 3. Commercial Associations : Chambers of Commerce — Rings — Exchanges — Stock Exchanges. 4. Commercial Education and Museums. 5. History of External Commerce : Tariffs — Free Trade

Reaction — Commercial Treaties. 6. Effect of Modern

Commercial Policy in Austria. 7. Commercial Relations with Hungary and Foreign Powers: Germany, Balkans, Italy, England — Anglo-Austrian Trade — Trade with India and British Colonies - - - - - 167-213

Chapter V

History of Austrian Finance since 1867. 2. Analysis of the Budget : Revenue and Expenditure — Direct and Other Taxes— Criticism of the Budget. 3. The National Debt, .

Past and Present. 4. Currency and its Reform. 5. Local J

Finance ; The Ministry of Finance. 6. Banking and Credit Institutions: Post -Office Savings Banks — The Austro- Hungarian Bank in so far as it affects Austria. 7. Financial Results of Railways. 8. General Financial Policy : Its Effect on Trade and National Welfare - 214-259

H._HUNGARIAN AFFAIRS

Introduction

|, History of the Magvars : Turkish Occupation — Influence of the Hapsburgs — Constitutional Struggle — Land and the People — A Borderland where East and West meet — Magyars are the only Christian Turanian Tribe — Magyar Temperament — Humour — Superstitions — Proverbs — Music —Religion— Literature— Use of Latin. 2. Extent and Organization of the Country : Geography — Orography — Hydrography — GeologyAg Racial and Religious Divisions : Social Divisions — Nobles — Peasants — Jews — Gipsies — Town and Country Life — Sport — Cities — " Extra Hungariam non xiv CONTENTS

PACK*

est Vita . . ." 4. Population, Census, Vital Statistics : Density of Population and Increase — Births — Alleged Sterility of the Magyars — Marriages — Deaths — Sanitation — Migration of the Population — Education. 5. System of Central and Local Government : Political Parties and Questions — Present Government — Magyars and the Rise of Nationalities — The Question of the Franchise — The Outlook .... . 260-299

Chapter VII

1. Importance of Agriculture to Hungary : Agricultural Population — Soil — Climate. 2. Forms of Land Tenure : Divisions of Property — Large and Small, History of. 3. Labour Questions : Reasons for Existence of Large Landless Class — Their Position — Grievances — Housing — Agrarian Movement and Troubles — Legislation of 1876 — Laws of 1898 and 1 899— Agricultural Co-operation — Farm Servants Act of 1907. 4. Methods of Cultivation and Chief Crops : (1) Agriculture — (2) Tobacco — (8) Wine and Fruit — (4) Forests. 5. Cattle and Horses : Minor Animals — Fishing — Veterinary Questions. 6. Characteristics and Defects of Present System : Soil Improvements — Manure — Irrigation — Agricultural Associations — Agricultural Credit — Colonization — Education. 7. Agricultural Legislation and Administration : The Ministry of Agriculture

300-342

Chapter VIII

1. Historical Sketch: Statistics of Industrial Population — Industrial Legislation. 2. Organization of Industry : The State Chambers of Commerce — Industrial Guilds — Labour Organizations — Socialism — Strikes : their Prevention and Settlement. 3. Special Industries : Mines — Iron — Metals

— Wood — Salt — Leather — Potteries — Glass — Chemicals

— Tobacco — Food and Drink — Beer — Spirits — Sugar

— Textiles. 4 Inspection. 5. Employers' Liability and Accident Insurance : Sick and Accident Insurance

CONTENTS xv

Law of 1907. 6. Standard of Comfort : Hours of Labour — Housing — Wages — Railway Zones — Poor Law — Savings Banks. 7. Technical Education ; Industrial Council ------ 343-389

Chapter IX

1. Internal Commerce: Fairs and Markets — Communications: Roads — Railways — Canals — Shipping — Posts — Telegraphs. 2. Commercial Laws and Administration : Ministry of Commerce. 3. Commercial Organization : Commercial Associations — Chambers of Commerce — Exchange — Stock Exchange. 4. Commercial Education and Museum. 5. History of External Commerce : The Tariffs — Free Trade — Hungary and the Reaction- — Special Trade of Hungary. 6. Foreign Commercial Relations : Relations with Germany, Balkans, England - - - 390-419

Chapter X

1. History of Hungarian Finance since 1867. 2. Analysis of the Budget : Expenditure and Revenue — Direct and Indirect Taxes — The Financial Result of the Purchase and Working of the Hungarian State Railways. 3. Criticism of the Budget: Reform of Taxation. 4. Currency ; Credit : Loan and Credit Institutions — Banks — Postal Savings Banks — The Austro- Hungarian Bank in so far as it affects Hungary —The National Debt — The Quota. 5. General Financial Policy: Its Effect on Trade and Agriculture — National Welfare ---... 420-452

Chapter XI

1. History and Constitution. 2. The Land and the People. 3. Agriculture. 4. Trade and Industry. 5. Finance. 6. Hungarian Viceroys and Hungarian Policy - 453-477 xvi CONTENTS

III.— COMMON AFFAIRS

Chapter XII The Conjoint State Paces

1. The Austro - Hungarian Monarchy as a Whole: Geographical, Economic, and Military Unity — Racial Inseparability. 2. The Common History, 1526-1867: Evolution of the Gesammt-Staatsidee under (1) The Holy Roman Empire, 1526-1804; (2) Austrian Empire, 1804 to the Revolution of 1848; (3) 1849-1867: (a) Ten Years' Despotism; (b) Attempts at CorisTitutional Unity ; (c) Compromise of 1867. 3. The Common Institutions. 4. The Economic Progress of the Dual Monarchy as a Whole. 5. The Compromise and its Future. 6. Austria-Hungary a Political Necessity : The Common Policy of the Austro- I Hungarian Monarchy ; Baron Aehrenthal and the Outlook

478-531

Chapter XIII

1. Introductory. 2. Pan-Germanism. 3. Pan-Slavism. 4. Mag yar Questions : (a) Relations of the Magyars with Austria (b) with the Slovaks ; (c) the Croats ; (d) the Roumans. Italian Questions. 6. Jews and the Anti-Semitic Movement. 7. Conclusion ----- 53^-595

Chapter XIV

1. Introduction. 2. The Austro-Hungarian Administration. 3. The Agrarian Question. 4. Industry and Commerce. 5. Public Works. 6. Finance. 7. The Annexation 596-650

Chapter XV

1. The Inhabitants and their Religions. 2. History of the Turks in the Balkans. 3. The History and Present Position of the other Races : (i.) Slovenes ; (ii.) Serbs ;

CONTENTS xvii

(iii.) Montenegrins ; (iv.) Bulgarians ; (v.) Roumanians ; (vi.) Albanians; (vii.) Greeks; (viii.) Vlachs. 4. The Powers and European Turkey. 5. The Movement of the Young Turks. 6. The European Outlook- - - 651-724