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 FALL OF THE AUSTRIAN CABINET clear political thinking. During his first premiership he had greatly extended the liberty of the press and had drawn up plans for a far-reaching administrative reform. But originality or independence of thought is not what recommends a man for the part of Austrian Premier; and not being an aristocrat, but an official who had made his own political career, he had no influence at Court and was only employed so long as the Emperor had urgent need of him. His appointment two months ago was but the gesture of a feudal lord who, when disaster attends his declining years, turns for help to a faithful retainer whom he had long slighted and left in the background.

The advent of the Koerber Cabinet was eminently distasteful to Hungary and its masterful Premier Count Tisza, who had found it extremely convenient to have during such a war, as Premier in the other state of the Monarchy, a man of Stürgkh's supreme insignificance, who was content to leave the Austrian Parliament unsummoned, while the Hungarian Parliament continued to meet and thereby strengthened its relative position and prestige. Moreover, Count Stürgkh was incapable of serious resistance to Hungarian demands in the important negotiations for the renewal of the commercial compromise between Austria and Hungary, which have to be concluded before the end of the present month. Dr. von Koerber was a far more formidable opponent, and was certain to make a firmer stand against Magyar encroachments.

Everything points to the fact that the new Emperor, who is absolutely without political experience, has surrendered himself to Magyar leading, and is preparing to act more or less openly on the advice which Bismarck gave to his granduncle over a generation ago, and to transfer the centre of gravity in his dominions from Vienna to Budapest. The new Austrian Premier, Herr von Spitzmüller, is virtually a nominee of Hungary. Till recently he was manager of the Kreditanstalt, the leading Austrian bank, and is closely identified with the financial interests of the Austrian Rothschilds and consequently with the high finance of Berlin: and his appointment may be taken to mean that official Austria has surrendered its control of the economic situation to Berlin and Budapest.

The Roumanian victories have drawn Germany and