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carry on business up till the new elections, which were fixed for Oct. 17 1920. In the meantime it was naturally incumbent upon the Constituent Assembly to carry out its own particular task and give a definitive constitution "to the " Federal State of Austria." Besides this the bill dealing with what had once been a considerable tax on property, namely the war-profits tax, was passed, under pressure from the Social Democrats in particular.

At the new elections the Christian Socialists obtained 82 seats, the Social Democrats 66, the Great German party (formed from the old German National party and kindred groups) 19, the German-Austrian Peasant party seven, the Bourgeois La- bour party one. The distribution of the 92 seats in the newly created second chamber, the Federal Council (Bnndcsral), represented a similar balance of power. On Dec. 9 1920 both Houses joined in the Federal Assembly (Bundcsversammlung) in order to elect the Federal President, Dr. Michael Hainisch. The new Cabinet, composed of Christian Socialists and officials, was under the presidency of the Christian Socialist Dr. Michael Mayr, 1 who had already presided over the " Proporzkabinett." While the Great German party assured the Cabinet 'of their benevolent neutrality, the Social Democrats went openly into opposition. They had had, indeed, to record a loss of votes in comparison with the 1919 elections, but they had none the less succeeded in contrast with the fraternal conflicts of most other countries in saving the party from disintegration. Even their relations with the Communists, thanks in no small degree to the platform of compromise adopted by the " Workmen's Councils " which were common to both sections of the party, had been tolerable up to the summer of 1920, though bitter hostilities afterwards broke out on both sides. Thus in Feb. 1921 the Austrian Social Democratic party had the satisfac- tion of holding together, in the spirit of its principles and under its patronage in Vienna, representatives of all international sections, from the Zimmerwaldians to the International Labour Association of Socialist parties. The tactical principles upon which this took place involved a compromise between the pro- gramme of action of the Second and the Third International, on which account the new Labour Association was given by its enemies the scornful title of the " International Two and a Half."

The pitiable condition of the Austrian State grew worse and worse. Neutral and former enemy countries did all they could to save the country from the worst; in particular, powerful relief measures of every kind had saved the population of Vienna from dying of hunger. It is true that the want of cooperation between the United States and the Western Powers had so far rendered it impossible to provide that far-reaching assistance which might ensure lasting salvation for Austria. Sir William Goode's plan for putting Austria into a sound financial condition, which clearly proved that the Austrian problem was not one of finance but a comprehensive political and economic one, had to be shelved, like those also propounded by Loucheur and Ter Meulen. At the end of March 1921 the Federal Chancellor Mayr learnt in London that the financial regeneration of Austria was to be handed over to the League of Nations, to which Austria had belonged since Oct. 1920. The " Austrian Section " of the Reparations Commission left Vienna a few weeks later (April 30 1921), the military supervisory commissions of the Allies having already been dissolved some time before. Financial delegates of the League of Nations arrived, to take up once again the study of the Austrian problem. The continued absence of organized help from the Entente had meanwhile dn spite of the counter-activity of the Vienna Christian Socialists, to whom is chiefly due the idea of a " Danubian Confederation " strength- ened Austrian opinion in favour of union with the large economic area of Germany. On April 24 1921 the overwhelming majority of the Tirolese declared themselves in this sense by a plebiscite which was carried out in defiance of the wishes of the Govern- ment; the Diets of other Territories proclaimed their desire to follow the example of Tirol. The ex-Emperor Charles's visit to

1 A. Michael Mayr (b. 1866), director of archives, professor of history at the university of Innsbruck.

Hungary at Easter had also called attention once more to these political questions. This occasioned two serious parliamentary conflicts, in the course of which the Michael Mayr Government was at times only able to obtain a majority of one. It was further evident that in spite of its conservative character the Cabinet had been unable to bring about an improvement in relations with Hungary. It could only have been purchased at the cost of concessions which would practically have amounted to the renunciation by Austria of the Burgenland (German Western Hungary). The position of the Government was only strength- ened to a certain extent by the fact that in May 1921 all parties assured the Government of their support in the economic and financial measures desired by the League of Nations.

See Dr. Karl Neisser, Polilische Chrpnik for 1918-20; Ein Jahr Republik Oesterreich (1920); Oeslerreichisches Jahrbuch, 1920 (1921); Gustav Stolper, Deutschosterreich als Sozial- und Wirtschafts problem (1921). (E. G-H.)

ECONOMIC CONDITIONS

The collapse of the Austrian Empire, as such, resulted in the rapid disruption of an extensive economic area and entailed the severance of an economically restricted German-Austria, which contained only little fertile land, from the agriculturally rich territories of the seceding states. Thus the early cessation of the food supplies which the states had been sending int& Austria rendered the position worse, especially as regards Vienna, and even then, in the days of the transition period, the authorities had to appeal to foreign Powers to help in the relief of the food shortage. The anxiety to procure the primary food- stuffs remained the main preoccupation of the Austrian Govern- ment in the course of the ensuing two years. Accordingly, if the harvest returns of the years after the war be compared to pre- war showings, a marked falling-off of production is apparent. In the territory comprising the new Austria the net returns- of the yield of wheat, rye and barley, which in 1914 amounted to 9,713,000 meterzentners, showed in 1919 only 4,518,000- melerzenlners, and in 1920 an estimate of 5,300,000 meterzentners. Even if the level of pre-war harvests should be attained, only about half the requirements of the population could be met. During the last years which preceded the war an average produc- tion of 5 million mz. of flour was established, while the require- ments at the time amounted to 9- 5 million mz. The position was- about the same with regard to other items of the supply of victuals. When the food problem became acute, especially as- concerned Vienna, it immediately raised the question of the future of this city as a metropolis; for Vienna was the heart of a large empire, the seat of the administration of a large number of provincial industrial undertakings, and the centre of commerce and banking. Here the people had spent the income which they derived from all parts of the monarchy. Only gradually was it shown, in the first year of the republic, that the economic predominance of Vienna reposed upon a much more solid basis than had been assumed in some quarters.

At the time of the collapse the anxiety concerning the food supply found a parallel in the solicitude to obtain coal, since the Austrian output was almost wholly negligible. This, like many other products of primary importance, could be acquired only with great difficulty even in foreign countries, and, save to the extent in which it was obtainable on credit, could only be secured 1 in moderate quantities by the release of counter-values.

The economic structure of the new Austrian Republic is best illustrated by employment statistics, which show that in 1910 agriculture absorbed 40%, industry and commerce 35%, mer- cantile avocations and transport 17%, the public services and' the free professions 8% of the population settled upon its- territory. It follows that the people were pretty evenly divided between agricultural and commercial pursuits; industry was for the most part concentrated in and around Vienna, to which city 1,800,000 of the 6.500,000 inhabitants of the state belonged.

Of the land by far the greater part is in the hands of larger or smaller peasant proprietors; 38% is covered with forests, 24% is agricultural or horticultural, 16% grazing-land in mountainous regions, n % meadows. Conditions are relatively favourable for