for settlement had arrived in 1913. In spite of the inactivity of the powers there can be no doubt that their respective attitudes at that time toward the various Balkan States and their ambitions had an important influence on the latter's attitude toward the various powers after the war of 1914 had broken out.
In December, 1912, the Triple Alliance was renewed, although even then the conflicting interests of Italy and Austria in the Balkans had made such a step somewhat doubtful.
The early spring of 1913 brought with it the uncovering of a rather extensive scandal in connection with the manufacture of guns and other war materials. One of the Socialistic leaders in the Reichstag charged some officials of the great munition firm of Krupp and of other firms with bribery of War Department officials, and with the creation of artificial war scares in other countries for the sake of increasing munition orders. Although the German courts later sustained this contention to a certain extent, and although it resulted in a certain amount of antiwar sentiment, Germany continued with its well-defined program of increased preparedness. That the Government had behind it in its efforts the full support of public opinion was proven in June of the same year, 1913, by the passage in the Reichstag of another bill carrying considerable increases in the peace strength of the army, and by the fact that the necessary expenditures were met by special taxation, which, though severe in its effects alike on poor and rich, was borne cheerfully by the entire nation.
Nicholas II, Emperor of All the Russias.
Although the Balkan question continued to be the source of considerable anxiety and extensive diplomatic conferences, the political horizon of Europe during the latter half of 1913 and the first half of 1914 seemed comparatively cloudless to all but the keenest observers. Like a flash of lightning out of a clear sky, therefore, came the news that the heir to the throne of Austria-Hungary, Archduke Francis Ferdinand, and his wife, the Duchess of Hohenberg, had been assassinated during a visit to Sarajevo, the capital of Bosnia, June 28, 1914, and that the Austrian Government had determined to hold Serbia responsible. England, France, Russia, and Serbia tried, in vain, during the next five weeks to check the outbreak of a general European war.
CHAPTER II
AUSTRIA-HUNGARY
Amongst the great European nations the Austro-Hungarian Empire occupies a unique position. In number of inhabitants it is inferior only to Russia and Germany, whereas it occupies more territory than any other European country, with the single exception of Russia. In spite of this, however, Austria-Hungary possesses no foreign colonies, and those of its inhabitants who, for one reason or another, decided to leave the land of their birth, have, therefore, for years emigrated to foreign countries, and have been lost, in large numbers, to their native country. Of course, the desire for expansion, which is one of the chief characteristics of the historical development of the various nations during the twentieth century, made itself felt in Austria-Hungary as well as everywhere else. Not having any colonies and not having either the financial or military means of acquiring any, the Dual Monarchy has for many years been deeply interested in the Near East. There vast stretches of undeveloped territory, much of which was immediately adjoining its own territory, created a strong desire for possession, or at least for a preponderating influence. This desire was intensified by the peculiar racial conditions which existed in the Dual Monarchy.
Austria-Hungary in this respect also differed from all the other European nations. In each one of the other countries of Europe there was one race that was more numerous and more influential than any of the other races that might inhabit the same country. In Austria-Hungary, however, there were living side by side a number of widely different races. Germans, Bohemians, Poles, Hungarians, Serbians, and others. Of most of these races additional numbers were living in one or another of the adjoining countries, and this condition brought about a continuous desire on the part of these different nations to unite. For instance, the Poles living in Austrian Galicia never gave up their hope of once more becoming united with their fellow Poles in Prussian and in Russian Poland. In the same way the Rumanians in the Austrian province of Bukowina cast longing eyes toward Rumania and Russian Bessarabia; the Austrian Serbs did the same in respect to Serbia and so on.
All attempts of the Government to change this condition appeared to be futile, whether these attempts were of a friendly or of a hostile and oppressive nature. Legislature of any kind, as long as it affected racial questions, was not only unsuccessful in accomplishing its ends, but often resulted in bitter parliamentary discussions and hostilities. The resentment of the various racial units of the Dual Monarchy against such legislation was only deepened by the fact that for many years the actual power of government lay in the hands of the Germanic part of the empire in spite of the fact that the Germans, though in many ways the most advanced, were the least numerous.
In view of all these conditions it is rather remarkable that the Dual Monarchy should have held together as long as it did and, indeed, its disruption was frequently prophesied and as frequently expected. It is clear, therefore, why every attempt on the part of the different Balkan nations to readjust their affairs deeply interested and affected Austria-Hungary. For, even if the empire had given up all thought of profiting itself by such a readjustment, there was always the danger that it might lose both in territory and population. Such a loss, however small, would have seriously embarrassed the Dual Monarchy. For not only might it have resulted in further losses of the same nature, but also from a financial point of view the empire could not afford a diminution of any of its resources. As national wealth goes, Austria-Hungary cannot be considered rich by any means, being in this respect almost on an equal basis with Italy, which has only two-thirds the number of inhabitants and less than one-half the extent of the Dual Monarchy.
Considering the many difficult problems of political, financial and economic nature which the possession of colonies created for the various colonial powers of Europe, Austria might have considered itself fortunate because of its entire lack of colonies. However, the problem of Balkan readjustments, upon which we have touched just now, took the place of colonial problems and brought to Austria as many difficulties and entanglements as any colony has ever brought to its possessor. It was along that line that Austria-Hungary was brought into contact with the other nations of Europe. Of these Russia was the one most vitally interested in the same questions as Austria. For of almost every race that inhabited Austria additional numbers were living in Russia and whatever one country did or attempted to do in the Near East was looked upon with suspicion by the other. Turkey, too, of course, was vitally interested and affected by Austria's policy in the Near East and so was England ever since its foreign policy had been committed to the principle of keeping the Near Eastern status quo undisturbed.
Outside of these possibilities of becoming involved with another nation the Dual Monarchy had long-standing difficulties with Italy. For, previous to the creation of the present kingdom of Italy, Austria had possessed large parts of northern Italy, and the loss of these fertile and rich territories was a severe blow to Austria. The enmity between the two countries was still more enhanced when, in 1866, Austria had to give up Venetia to Italy. This loss was an indirect result of the Prusso-Austrian War of 1866, the details of which we have already mentioned in the recital of the political development of Germany. Previous to declaring war against Austria, Prussia had formed an alliance with Italy and at the beginning of hostilities between Prussia and Austria Italy, too, attacked Austria. Although the Austrian troops defeated the Italians, Austria was forced, when peace was concluded, to yield Venetia to Italy retaining only a small part of its former possessions on the Adriatic so as not to be cut off entirely from a maritime outlet. This small remnant of its former Italian possessions, however, proved to be a thorn in the body politic of the Dual Monarchy. The inhabitants of this province were preponderately Italian in language and Italian in feeling and ever since the formation of the kingdom of Italy a strong propaganda was carried on with the object of finally accomplishing the redemption of these provinces from Austrian rule and their unification with Italy.
In spite of the difficulties between Austria on one side and Russia and Italy respectively