THE AUSTRIAN PROBLEM

Author(s): HANS SCHOBER

Source: Advocate of Peace through Justice, Vol. 84, No. 11 (NOVEMBER, 1922), pp. 374-377
Published by: Sage Publications, Inc.
Stable URL: https://www.jstor.org/stable/20660126
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 74 ADVOCATE OF PEACE November
THE AUSTRIAN PROBLEM
chances for good business, if only certain premises are
assured these enterprises. These politically disinter
BY DR. HANS SCHOBER
completing
President of the Vienna Police, former it through theChancellor
economical reconstructionand
Austria, Republic
Minister of the Austrian creating at the same time for themselves an
S INCE the disastrous
tropists wreck
and politicians of theinold
October, 1918, philan
and the new
world have been repeatedly interested in the Austrian
problem. Numerous articles by benevolent or envious
"=experts" on the conditions of Austria have been pub
lished and also many pamphlets devoted to this subject
by friends and enemies. Nevertheless I have the im
pression that up to date the problem, as it stands, is not
yet known or is only incompletely understood, else it
would be impossible that the recent journeys of the Aus
trian Chancellor had again to wake the world to the
astonished question, "But what is amiss with Austria ?"
Often one hears opinions, uttered by men intimate with
the creators of this new Austria and with those who
helped to perform the unfortunate peace treaty of St.
Germain, which prove that even they have no concep
tion of the political and economical necessities of these
former provinces of the old Danube Monarchy repre
senting the Austria of today.
After the wreckage of 1918, in Austria-famished
and nearly bled to death, unable to feed her inhabit
ants-the old people and the children perished by thou
sands in consequence of the blockade organized by the
Entente against Germany and Austria. Then relief
actions sprang up, led by the United States, which estab
lished generous children's relief, and stopped thus the
destruction of a people whose only guilt was to have
done its duty toward its country and the then reigning
family, up to the end of the war without reserve, with
exemplary loyalty, and with unflinching self-denial.
But these relief projects brought on the other side the
impression of the Beggar State, Austria, and of course
could not induce the capitalistic world to invest money
in this country. Money, from the point of view of capi
talists, should be productive.
Since then a stream of foreigners has gone through
Austria, has taken notice of her beauties and profited
by the high culture and all the other advantages of the
capital, Vienna, and they came to the conclusion that
Austria and its capital belong among the most beautiful
treasures of the world, and that everybody ought to
travel in the country and see the beautiful city. I ad
mit this stream of foreigners will help economically to
make Austria flourish in the future. Unfortunately,
however, the influx is made up not only of tourists and
sightseers, who come with an earnest desire to learn
about Austria and to help in her distress, but it is also
largely composed of traders and profiteers, who come
only to take advantage of the exchange, and to buy up
stocks in such quantities that prices are raised far be
yond the reach of the Austrian people.
It is necessary first to rebuild the country economic
ally, and I am afraid that even the unselfish nations who
kept off the worst from Austria by their philanthropy
are sufficiently informed that the Austria of today con
tains possibilities of erecting commercial enterprises and'
serving well the end of both parties; in short, that Aus
tria offers sound opportunities to invest money and
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ested nations could crown their work of philanthropy by
of Foreign
advantageous position in this country, whose geograph
ical situation makes it the center of Europe, that would
secure to them the whole East and southeast Europe as
a market.
The present Austria is a natural gateway, uniting the
Occident with the Orient. Vienna is the sallyport
through which to reach not only Hungary, Jugoslavia,
and Rumania, but the Balkans and Poland, and even
Russia, by the way of the Ukraine. The mighty Dan
ube, with its tributaries, offers, to one looking at a map
of Central Europe without its political frontiers, a per
feet whole; so that if an outsider, having no idea of the
historical frontiers of the Austro-Hungarian Monarchy,
would be asked to draw a State in this map with natural
geographical frontiers, he would undoubtedly draw a
State very much like the former Austro-Hungarian
Monarchy, adding, perhaps, out of geographical consid
erations, the present Rumania and Jugoslavia.
Thus the sphere of the Danube is an economic body,
such as Nature, to my knowledge, never again traced
with like distinctness and impressiveness on the terres
trial globe. Besides, a glance at the map of nationali
ties in Europe shows that the States belonging to the
Danube system are occupied by numerous nationalities.
Although there are large territories occupied by one race
only, it becomes impossible to draw natural frontiers for
national States without forcing great alien minorities,
counting not by thousands but by millions, to be united
with a comparatively weak but ruling majority. It is
clear that this means an open disregard for and con
tempt of the right of self-determination.
These are preliminary remarks. I want to call the
history of Europe since the time of the great migration
of peoples as a witness. In these parts, described as the
"Whirlpool of Europe," in long bygone times national
States were founded, but dissolved after comparatively
short periods. Constructed on the basis of oppressing
alien nationalities, they had no inner power to continue.
Everybody acquainted with the history of Great Bul
garia, Great Servia, and Great Croatia will confirm this.
These episodes may serve as examples for the aforesaid
thesis.
In the middle ages the economic unity of the Danube
system led to several attempts to join the main territory
of the present Czechoslovakia, Bohemia, Moravia, and
Silesia to the countries forming the present Austria.
Once the Przemyslide Ottokar II united for a short time
with his Bohemian Kingdom Karinthia, Stiria, and
Upper and Lower Austria. Once it was a Habsburg
who strove after the crown of Bohemia and got it, so
trying to provide for his dominions the necessary eco
nomic supplements. The history of the middle ages
teaches us that through generations unions existed be
tween Hungary and Poland, between Hungary and Bo
hemia, and repeatedly, though always only foi- a- short
period, between Austria and Hungary (1438-1458).
And if the last king of Hungary and Bohemia, the
Jagellon Ludwig II, who died a hero's death fighting
the Turks on the battlefield of Mohacs (August 29,
 1922 ADVOCATE OF PEACE 375
1526), did sign a reciprocalbecoming
treaty stronger of
from year to year and leading with
succession and
leave his realm to his doublegreat probability to a union of the Servians
brother-in-law, the outside
Habsthe
monarchy with Austria.
burgian Ferdinand I, this was only done in conformity It is an undeniable fact that
the Rumanians
with economic necessities. The of Siebenbirgen (belonging Mon
Austro-Hungarian then to
archy began with the battleHungary),
of Mohacs as well as the Rumanians of Bukowina, were
and continued
much more cultivated than the Rumanians of the same
for nearly 400 years, notwithstanding various tempestu
social class belonging
ous and often irrational and reckless to the Rumanian Kingdom; so
governments.
that even
Already in 1529-that is, three during theafter
years war leading the
Rumanian politicians
union
strongly recommended
with Hungary and Bohemia-the walls of Vienna broke a fusion of. the Rumanian King
the power of the Turks when dom they
with Austro-Hungary.
took the At thefield
end of theand
18th
wanted to annihilate occidental culture
century Poland was divided as far
in three parts.as the
Austria
Rhine. In 1683 the Turkish alone
army gave to her
wasPolish subjects
beaten the possibility of na
a second
tional development.
time before the walls of Vienna. From In Austria
thatthetime Poles, numbering
dates
the decay of Turkey, and western culture beginsand
4,000,000, owned two universities, one in Krakau to
another in Lemberg,
spread over the before-mentioned economicwhich meant a sphere
privilege of undis
of
the Danube. The monarchy turbed national development
outlasted evennot shared by the Prussian
Napoleon.
or Russian Poles.
Her army of different tribes withstood and inflicted a
severe defeat upon the, until Thesethen,
few examples, which could easily be supple
invulnerable Im
mented by others, give a little idea of the true position
perator at Aspern (May, 1809).
That the union of a dozenof nationalities
the Austro-Hungarian Monarchy. inI will
one eco
not -conceal
nomic body and one politicalthat much of what the government undertook
commonwealth had was per
the
verted, was
power to keep its independence for executed by halves,400
about timidly years,
or hesitatingly.to
In Hungary
hold not only its ground, but to dominateespecially the problem
for ofso nationalities,
long a
though "lawfully"
period, compels the conclusion thatprovided this for, was
met withnotno practical
the
understanding, of
work of a dynasty, not the product even ofa Hungary's
single real wants. Besides,
ambitious
narrow-minded
family, but rather the result of a more measures, powerful
dictated from a purely agra
influ
rian point of view, led
ence-the influence of geographical repeatedly to economicwhich
conditions troubles
with Rumania
naturally bound together this product and Servia,ofaggravating
economic thereby the exne
cessities. Laws of nature united the
isting national nationalities
difficulties and
by economic quarrels. This,
after all, cooled the relation
fragments of nationalities on the territory of the old of the monarchy to the
aforesaid States notwithstanding
monarchy and kept them together, and inevitably brought on the war, theall
more so because Servia
foreign influences and all intrigues, saw no other
until the way autumn
to realize her
of 1918. "national ideals" and "economic necessities." The
Everybody really acquainted with Austria's home af bloody deed of Sarajevo was surely the immediate prov
fairs during the last twenty years will confirm the fact ocation for the outbreak of the war; but the need of the
that the so-called "Irredenta," in the Italian districts of Servians to export their pigs and agrarian products to
Austria-that is, South Tyrol, Gorz, and Istria-as well Austria, which Hungary prohibited, was the origin of
as a similar movement in the South Slavian districts, Servia's enmity.
meaning those inhabited by Servians-viz., South Hun The Servians saw their natural way to export and
gary, Croatia, Bosnia, Dalmatia-would not have led to their market, not only in Saloniki, which lay open to
a separation of these parts from Austria but for the war, them, but in the monarchy connected with them not
or, rather, but for the treaty of St. Germain.. On the only by the Danube, but by rail; and this fact proves
contrary, not counting paid agents and national hot more than anything else the truth of the economic unity
spurs among the half-educated intelligent classes, the of the Danube system.
majority of the nation, notwithstanding their earnest The war has smashed the monarchy to pieces, and the
national convictions and occasional complaints of an in treaty of St. Germain has sanctioned the fact by dis
sufficient administration, understood very well that their membering the old monarchy, turning her into the na
economic interest was closely connected with Austro tional States of Hungary, Austria, and Czechoslovakia,
Hungary. Today the former Irredentists of Triest and by presenting vast territories, inhabited by different
realize that their town is no more a port of importance nationalities, to the newly founded Polish Republic, to
since it has to compete with Venice and the other Italian the Kingdom of Rumania, to Jugoslavia, and to Italy.
ports. The present Republic, Austria, has about six and a
It would be easy to prove that especially the districts half million of inhabitants, which, not counting a small
inhabited by Servians could have been won for Austro Tschecque minority in Vienna and a small Hungarian
Hungary by a greater consideration by the Austro-Hun and Croatian minority in Burgenland, are Germans.
garian diplomats. Instead of these districts seeking a The alien minorities amount to less than 10 per cent of
separation from Austria, the parts inhabited by Servians the population.
outside the monarchy would have sought a union if the In the territories allotted to Italy-i. e., South Tyrol,
sound idea lying at the bottom of the so-called "Trial G5rz-Gradiska, Istria, and Triest-live niearly 300,000
ism"-that is, the division of the Austro-Hungarian Germans. In Czechoslovakia, a State with thirteen mil
Monarchy into three parts with national autonomy lion of inhabitants, live four million Germans and one
i. e., one Austrian, one Hungarian, and one Jugoslavian and a half million Hungarians; so, not regarding the
block-had been fulfilled. The more cultivated Ser other nationalities, those two minorities alone represent
vians of the monarchy would have proved an attraction, five and a half million-i. e., 40 per cent of the whole

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 376 ADVOCATE OF PEACE November

population. Rumania's increase

out people could
numbered,
only be kept quiet by giving
besides
them the three
necessary food. InMagyars
million Rumanians, one million consequence of the aforedescribed
and nearly a
half million Germans; so that there,
circumstances food had totoo,
be importedone may
from far off, speak
of great minorities in the mostly
annexed from America.countries.
Never may the help be forgotten
This method of erecting which
States is
the Austrian really
people got -through notAmerica atfounded
first,
and then from Switzerland, Holland,
on the principle of self-determination of and the Sweden, as
people.
This becomes obvious, even to
well as fromthose
other nations who once
! But the nations with con
responsible
fident hearts put their faith in
for the peace the
treaty fourteen
have never fulfilled their promisepoints
to of
Wilson. That the situationAustria.
created The promisedby creditsthe
have either not come attreaties
peace
in the year 1919 in Europe all orcannot be
they have appeared ofandlong
in doles, even these duration,
never
came in time.
especially if they are accentuated beyond this by pro
hibitive economic systems of In February,
the 1921, a credit was promised inStates,.
succession London is
clear to men who understand to the Austrian
these Government. In the summer of 1921
situations, and in a
short time it will become theso fulfillment
to the of this promise was suddenly leaders
political made to of
the Entente. Redress is possible, at least
depend on the postponement of the liens andon economic
the consent
of the Unitedby
lines, if the errors committed States the
of America.greatUntil the arrival
statesmenof
who signed the treaties ofthis acquiescence,
peace inFrance
1919and Englandwerepromised willingly
to ad
and quickly corrected. I have referred
vance instalments at the beginningto the means
of September. These by
advances were
which to do this in a general promised to
way. At the Austrian
theFinance end Min of this
article I will specify them. Now
ister, Grimm, so back
earnestly that to Austria!
he expected to find them
The peace of St. Germain separated
on his arrival in Vienna; but only from in October, 1921,the did old
monarchy the so-called "German
France and England payAustria" intermediate State credits as of an inde
pendent country. Later on ?250,000this
each, a sum new
only to beState
compared withwas the cent forbid
den to call herself German thrownAustria,
into the beggar's and hat. Surely, hadthis wasto not theaccept
the name of "Austria." It is true
fulfillment that
of the obligation "German
which the powers had ac Aus
tria" was linguistically right,
cepted and which for "Austria"
was utterly insufficient for the beginis almost
entirely German. But the ning ofname was
an internal action wrong,
to rescue the country. because
out of the twelve million Germans of the
At the end of January, 1922, theformer
Austrian Govern Austria
only six million belong to the
ment sent present
an urgent appeal to France and Austria.
England, and This
fact alone proves that, while dismembering
in an appreciable manner England and France granted the mon
a sum-England
archy as well as creating the present two million pounds sterling, France,
Austria, the right
of self-determination of nations was
fifty-five million francs, absolutely
and Italy voluntarily joined the disre
garded. Austria representsactiononlywith a "promise"
the remnant of a loan of seventy millionof what
the succession States have lire. Meanwhile the
found Austrian Government
desirable tomadeleave,
heroic just
as Hungary is only a torso,efforts totheabolish theremnant
subvention on rational food of for the
the prey
which the succession Statespopulation,
could whichnot
proved disastrous
well for the State's with
digest
out serious damage to theirbudget. It tried tohealth.
own increase the income out of State es
As long as the present Austria belonged
tablishments and monopolies to also
and fought the deficit the old
monarchy, she got from Bohemia and Silesia her coal;
by diminishing the expenses.
from Galicia, besides differentThe Austrian Government,
agrarian confident that, in accord
products, as
meat and eggs, all the petrol
ance with she needed.
the acknowledged need, the Hungary
credits were really sup
plied her with meat andforthcoming,
corn; Croatia
quickly drew up, with the and
aid of theSlavonia
Par
with fat and corn. All the things
liament, a plan founded on which
the simultaneous the
arrival ofpresent
Austria needed were found the threewithin
credits at once. Thethe old
plan became frontiers.
obsolete, be
And so it happened that thecause onlymineral
the English money treasures
came in February, the of the
present Austria remained Frenchunexploited
came partly in August, and the for Italian centuries;
has not
that the water power, whicharrived
this even land
today. This hasproceeding
so of the "powers"
abundantly,
remained unused; and so must itmake came all efforts about
of the Austrian that Governmenteven use the
less. The deficit of the
agrarian production was restricted to the indispensable,State and the inflation of bank
and nobody thought of systematically notes grew alarmingly, bringing improving
us nearer to the break it.
The peace treaty of St. down Germainat a startling pace.has bestowed inde
pendence on this new Austria, It wouldandmean to at
be blind
theto one'ssame
own "sins" if the
time shut
her off hermetically frompolitical thesituation in Austria should which
territories be left unmenhad sup
plied her with the necessities tioned. The of life.
following At
parties the same
are represented in the time
it forbade the union with Austrian Germany Parliament: The Conservative
and refused Christian Soto give
her or kept back the means cial to
Party, develop
with 85 members;her the Social
ownDemocrats,slumber
ing powers, and so robbed her
with ofthethe
69 members; fundamental
"Grossdeutsche" Party, with 21 con
ditions to guarantee an independent members; the German Peasant existence;
Party, with 7 members; and dur
ing the last three years these the "Bnirgerliche
means Arbeiterpartei,"
werewith not1 member. The
forthcom
ing; the new State was fedpresent onmajority
promises, and
comprises all bourgeois got
parties, with no real
help. 114 votes. The opposition is represented by the social
Four years have elapsed since the wreckage, and what democratic block of 69 votes.
was promised by the peace treaty has not been fulfilled. Many Austrian politicians are occupied much more
After the wreckage the morally and economically worn with party ~ politics than with .economic politics, and

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 1922 ADVOCATE OF PEACE 377
often the interests of the party
territory is larger thanmake them
the agricultural territory of forget th
Switzerland,our
interests of the State. Now will have situation
peace. She will be no more com
requires th
utmost exertions for the pelled benefit of the
to stand as a beggar before thedoor ofcountry,
the En an
therefore party politicstente;cannot
and Vienna, thebe tolerated;
natural center of Europe, the the nat
cannot understand why metropolis of the Danube system, will
the existence ofbe able
the to fulfill
whole Sta
the life of every single her
man must
mission and always
carry culture to the east ofbeEurope.put in th
background on account The of the
mighty nationsfear of
of this earth lost
may be satisfied votes
that and
seat in the Parliament then,in the
in the next
center of Europe, the election.
danger of Balkanic The A
trian politicians are, on conditions
the will be overcome. not yet aware of t
whole,
great responsibility resting on their shoulders. Th
forget that in a republic, in a democracy, where, acco
ing to the constitution, all power emanates from th AUST2IA
people, they themselves have to elect the governmen
By COL. W. B. CAUSEY
and therefore all parties ought to join in the noble em
lation and ambition to serve theTechnical Adviser to Austria welfare, not
general
endanger the existence of everything by barren quarrels.
At this time we must T allHE PROGRAM of the
beingLeague
discussedof Nations for credits
of us cling to the senten
"Right or wrong-my country." for Austria is now No in the
class Austrian has the pr
Parliament, and while
ilege to stand aside and think to I have
runno doubt that
no the program
risk if the St
break down. Today the will leaders
be accepted, there is and
ofwill be the
strong opposition
parties are c
to its acceptance on the part of the Social Democrats.
vinced of this; but in partisan politics these truths h
not overcome the pettyIn aparty
way, however, thisintrigues.
opposition is not whole-hearted,
The necessit
to reorganize the systemas theofleaders of the Social Democrats realize
taxation, tothat updismiss
to part
the present
the government officials, to time extend
no other plan has been offered whereby
rationally the est
the outside credits, which are so essential to the future
lishments of the State, as well as sundry other refor
life of Austria,readily
ative measures, are admitted might be obtained. by The Socialthe
Demo leaders; b
crats claim that it is possible
the fear of losing some mandates in Parliament hinde to raise within the country
the money necessary to rehabilitate the finances of the
them from giving practical proofs of their sound co
victions. State. I can hardly believe that this is possible at this
time and I do not believe that the Social Democrats
Reassuming the aforesaid and deducing the forcibly
logical conclusions, I may venture to assert that this themselves really have confidence in this scheme. They
State could live independently if only the conditions for oppose the League of Nations program principally be
its life would be granted to her internally and exter cause this program was brought about by the Christian
nally. They would be: Socialist administration under the leadership of Chan
(1) Internal reforms, legislative and administrative, cellor Seipel, who is a Catholic prelate.
measures which would give absolute security to the in PESSIMISM
vested foreign capital in every direction; a liberal and
unrelentingly practiced policy of self-help, which will I am rather pessimistic about the realization of the
simplify the administration, dismiss the superfluous League of Nations scheme, first, because of the lack at
officials, and make possible the development of the es the present time of the political authority needed to
tablishments of State according to rational commercial enforce regulations for reduction of forces and for other
principles; provide an energetic check to, inflation and reforms and retrenchments generally. It is question
increase the State's income by taxing the financial ca able whether this political authority can be obtained
pacity of the population as far as possible. without the co-operation of the Socialists, and at the
(2) Foreign help, such as will develop the slumber present time there seems to be no disposition on the
ing economic forces. To this end we need investments part of the present Christian Socialist (bourgeois)
to intensify the agriculture of the country, to develop regime to make a coalition with the Social Democrats
the water power, to increase the rentability of our indus (Socialists), although the latter have at times recently
trial establishments, and to exploit the mineral treas evidenced a disposition to take part in the government.
tres. For some time, until the increased production It might be said, however, that the Socialists would
shows its effects, a credit is necessary to keep the budget want to enter the Government on their own terms, as
of the State in order. usual. The second reason for my pessimism is whether
(3) The third must be the reconstruction of the eco the money can be raised by the League of Nations, even
nomic body of central Europe and southeast Europe. if the Austrians show that they have the authority to
Nobody needs fear that the political system existing be put their house in order.
fore the war will reappear; that is absolutely impos AMERICAN FINANCIAL ATTITUDE
sible today; but .the absurd economic barriers raised
between countries economically dependent on each other Judging from the expressions of several representatives
for their welfare must be removed. For instance, of strong financial interests in America with whom I
Czechoslovakia cannot live without the natural market have had interviews in Vienna during the past twelve
for her industry, and sooner or later a crisis will come, months, I am inclined to believe that it might be possi
showing the reversion of the flourishing conditions of ble to finance Austria in America if the Americans could
Czechoslovakia of today. be definitely assured that the Austrians had put their
If this be carried through, Austria, whose agricultural house in order and were in position to deliver such

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