AUSTRALIA

the area of the australian com- monwealth is 2,974,581 sq. m., exclusive of its papuan territory. its population at the census of 1921 was 5,435,734. i. political history the second decade in the history of the commonwealth was a period of national development. the first 10 years of the cen- tury had seen the birth of the constitution, the gradual evolu- tion of parties and political creeds and the slow education of the people to think in terms of a single commonwealth rather than of a group of states. in the second ro years the process of edu- cation was completed, and if the lesson was learned in the hard school of war it was all the more deeply engraved on that ac- count. it is very important to note the immediate and far-reach- ing effect which the world war exercised on the internal politics of the commonwealth. the growth of national sentiment is difficult to measure, yet each achievement of australian arms— whether it was the sinking of the “ emden,” the landing at anzac cove or the advance at bullecourt—struck another blow, not only for the allied cause but for australian unity as well. the war gave a common aim and a single purpose which the years of peace could never have afforded. the six states forgot their rivalries and their jealousies and, whether it was a case of reinforcements or of red cross funds, the national effort was all directed towards the one united purpose. for the time, inter- state boundaries disappeared. there was, in addition, the ex- ceedingly practical factor of men from all the states meeting each other and mixing with each other in camps and billets and in the front line ‘itself. from brisbane to perth is more than a week’s journey by train, and in normal times the queenslander has few chances of meeting his fellow-austrahan from the west. in varying degree the same fact holds good even of intercourse between states that adjoin each other and it is difficult to over- estimate the effect of the mutual knowledge and sympathy that was acquired between 1914 and the armistice. although the war was immeasurably the greatest factor in welding the national character of the commonwealth it was by no means the sole cause. the effort towards unity found expres- sion in a variety of ways, and many signs in australian political history of the period r910-25 suggest that war merely hastened what peace would have attained in the end. there was no doubt, for instance, that in 1925 popular interest in federal politics far transcended interest in the comparatively narrow arena of state affairs, and that that interest was steadily increasing. again, measures of a distinctively national character, such as the con- struction of the transcontinental railway, the creation of the australian navy and the provision of compulsory military training in time of peace, were all products of the years before the war. even the attitude towards the erection of a federal capital at canberra had changed, and if there was no great en- thusiasm for the scheme, at least it did not arouse the mingled feelings of jealousy and derision with which it was greeted when first proposed. 272 pre-war period.—the purely political history of this period was marked by several distinctive features. in the first place, there was the definite commitment of the people to certain polit- ical doctrines—notably protection and the maintenance of the “ white australia ”’ ideal—which may be described as part of the national policy irrespective of party. in the second place, the dividing lines on questions of tariff and taxation, which in the first few years of the commonwealth parliament separated the parties, gradually disappeared and were replaced by the far wider cleavage between political labour and the forces which oppose it. the rise of labour was the outstanding development in australian party politics after r910. in the carly days of the commonwealth the place of labour in politics was that of a noisy but relatively unimportant section of the opposition. at the end of 1925, not only was it the sole force in opposition to the federal govt., but it actually held office in every state except victoria. it is not casy to account for this ascendancy without embarking on controversial subjects, but the broad lines of the movement may be said to have run along the ever-increasing education of the working classes to political power; the applica- tion of the efficient machinery of the great unions towards party ends, and the determination of the labour leaders that their influence should extend far beyond the industrial—as dis- tinct from the political—life of the community. the year 1910 saw the end of the third deakin administra- tion, and in feb. the house was dissolved. the elections which followed resulted in a substantial victory for the labour party under mr. fisher, who had previously been prime minis- ter from nov. 1908 to june 1909, and who now returned to office with a working majority both in the senate and in the house of representatives. but there were clear indications that his vic- tory had been gained not so much because the country approved of his policy as because it was thoroughly tired of coalitions. in may ror he submitted to a referendum certain amendments of the federal constitution, without which the government could not carry out its avowed programme. these amendments sought to give to the commonwealth parliament :— (a) full power to legislate with respect to trade and commerce in- stead of the limited power it had under the constitution; (b) full power over all trading corporations; (c) specific power to deal with the wages and conditions of labour and with labour disputes; (d) power to deal with all combinations and monopolies; (e) power to declare that any business was a “ monopoly " and following such declaration, to acquire it, paying on just terms for any property used in connection with it. the australian people have always been reluctant to alter the constitution, which was framed after many years of deliberation and controversy, and mr. fisher’s amendments were defeated by a majority of about 250,000 votes. thus his government found itself holding office without the power to carry out its policy. . nevertheless, labour carried on for two more years, and actually brought into effect important schemes for national de- fence. the credit for the inception of these schemes was due to the deakin administration, which in 1909 had not only brought in a bill enforcing military training on the young men of the commonwealth, the first instance of compulsory service in an english-speaking community, but also decided to give practical effect to the sweeping recommendations of the impcrial defence committee of the same year. but labour had offered no serious opposition to these measures, and when it succeeded to office it spared no effort in giving them the fullest possible effect. among other legislation of this period was the transfer of the northern territory from south australia to the commonwealth, and the grant of a “‘ maternity bonus ” of £5 on the birth of each child. australia during the world war.—in may 1913 another gen- eral election was held in the commonwealth. it had a singu- larly unsatisfactory result in so far as mr. deakin’s successor, ‘mr., afterwards sir, joseph cook, obtained a majority in the house of representatives but was unsuccessful in the senate. in these precarious circumstances he managed to survive until july 30 1914 when a dissolution of both houses was granted. australia five days later, war broke out. there was an immediate outcry for the abandonment of the elections, but the writs were already out, and an attempt to arrange an allotment of seats and form a national govt. signally failed. for nearly two months mr. cook and his colleagues conducted australia’s war effort, and it is to them that the credit for the initial organisation of the australian imperial force belongs. the election came on sept. 17. again mr. fisher triumphed, and he at once proved that labour was no less ready and eager than its opponents to put every effort into the war. ‘‘ the last man and the last shilling’ was mr. fisher’s promise, and the change of government certainly brought no slackening in the commonwealth’s contribution to the empire’s cause. for more than a year mr. fisher remained at the head of affairs. then, in oct. 1915, he accepted the appointment of high commissioner in london and was succeeded by the attorney-general, mr. w. morris hughes. for the next seven years the political history of the common- wealth was dominated by the personality of mr. hughes. his services to australia and to the empire may have been some- what over-estimated when he was in power, but there is as little doubt that, in the reaction that followed his fall, they came dangerously near to being forgotten altogether. this much is certain: that he proved himself a leader at a time when his coun- try stood most in need of leadership, that he was whole-hearted in the sincerity of his feelings towards the empire, and that he was gifted to an exceptional degree with the power of infecting others with his own enthusiasm. he spared neither his health nor his frail physique in the incredible amount of work which he performed each day, and the very faults which ultimately helped to bring about his downfall—his impatience of criticism, and his intolerance alike of the feelings of his colleagues and the tram- mels of constitutional precedent—were not altogether bad quali- ties in a crisis when prompt action was emphatically the need of the moment. in 1916 he travelled to great britain, and the remarkable success he achieved with his hard-hitting speeches all over the country was reflected in the increased prestige which accrued to him in australia. but with his return to the commonwealth there came an anticlimax. the tide of recruiting had begun to fall, the best of australia’s manhood had already left for the front, and the nation waited for mr. hughes to declare for the measures of conscription which he had advocated so whole- heartedly abroad. he hesitated, and finally decided to submit the question of conscription to a referendum. never in the his- tory of the commonwealth had so bitter a campaign been waged. arrayed against mr. hughes was a public opinion which in- cluded all the leaders of advanced labour, the industrial work- ers of the world, the bolshevists, the pacifists and many irish. the referendum was held and conscription was decisively rejected by the people. the immediate result was the break-up of the labour party. a second referendum and a second defeat made it impossible for mr. hughes to remain leader of a party which had officially re- jected the most vital clause of his policy, and in 1917 he crossed the floor of the house and formed the australian national war government. the new ministry was recruited mainly from the ranks of the former opposition and included only three of the prime minister’s former colleagues. so came into being the national party which was to hold office for the next eight years and which at the end of 1925 seemed more firmly established than ever. the armistice came a year after the reshuffle and once again mr. hughes visited england. once again he returned to his own country with an increased reputation, for his vigorous assertion of australian claims, not only in london but at the peace conference at versailles, had to a great extent re-estab- lished his popularity. : the war effort—the sacrifices of the nation are shown by the following figures: australia sent 329,883 troops overseas. the casualties of this force reached the extraordinarily high propor- tionate total of 314,078, of which 59,302 wer: deaths from wounds or disease. other casualties from wounds or gas totalled australia 166,819, and there were 87,957 cases of sickness. the financial drain of the war ona young nation of less than 6,000,000 inhabit- ants was appalling. the following table gives the estimated war expenditure between 1914 and 1920:— iqt4-5 . £15,111,335 1917- 8 . £66,958,360 1915-6 41,201,946 igi5- 9 83,447,990 1916-7 61,541,566 1919-20 70,137,319 it is estimated that the total war expenditure in which pensions and allowances played a large part, were well over £600,000,000. australia has made generous provision for ex-service men. pensions payable for total disability range from {2 to £3 a week, with extra provision for a wife and all children under 16 years of age. ex-soldiers and sailors were liberally helped to re-establish themselves in civil life and, co-operating with the state govern- ments, the commonwealth government has provided farming lands, grants and loans for houses, working capital, etc. up to 1924 the repatriation commission had spent £13,717,000 in gifts or loans to ex-service men, and {34,145,000 had been ad- vanced on account of ex-soldier settlement on the land. there is also a scheme to provide education for war orphans and the children of incapacitated ex-soldiers. post-war problems. —it was to the solution of the enormous problems following the war that mr. hughes applied himself when he returned to australia after the peace conference. but, triumphant as was his return, there is little doubt that his decline in power began at this stage of his career. labour had been badly beaten at a “ khaki ” election in 1919, and he was branded as a traitor to the cause by his old associates. the nationalists themselves were not a happy family, for the ‘‘ country party,” which, as avowedly representing agricultural interests, had sprung into being at the election, was already disposed towards mild flirtations with the opposition. there were personal con- siderations as well, and although mr. hughes paid a successful visit to the imperial conference of 1921 his success was coldly received by his own countrymen. the eighth parliament of the commonwealth came to an end at the close of 1922. the elections, held in dec., were marked by the most violent personal bitterness, and although labour again suffered defeat, it was evident that no alliance of nationalists and the country party was possible under the leadership of mr. hughes. an acceptable successor was found in mr. stanley melbourne bruce. his first task was to form a coalition with the strongly reinforced country party. dr. page, its leader, became treasurer, and the administration was known as the bruce-page ministry. but mr. bruce was the real leader. he rapidly con- solidated his position, and by the time he came to visit london for the imperial conference of 1923 his position was firmly established. the chief business of the conference was concerned with imperial preference. mutual preference, which promised con- siderable help to australia’s primary industries, was agreed to between great britain and australia. these arrangements, en- tered into on behalf of great britain by mr. baldwin’s first government, were not carried out by the succeeding government of mr. ramsay macdonald. the proceedings of the australian parliament in 1924 reflected the results of the change of govern- ment in great britain: because mr. macdonald in the imperial parliament refused to accept the agreement for an imperial naval base at singapore, the australian prime minister brought forward a new naval programme; and because the new british government refused to endorse the preference agreement, the australian prime minister proposed a scheme to assist exporters to obtain markets overseas, and also a series of bounty bills, designed to help the primary producer. acts were passed by parliament providing for export bounties on beef, and on fencing wire, galvanised iron, traction engines and wire netting manu- factured in australia; the bounty on shale oil produced locally was increased. a reciprocal trade treaty with canada was also sanctioned. a long series of shipping strikes culminated in the crisis of 192s. shipping in australian ports was held up and trade pro- duction scriously affected. many local labour organisations 273 sympathised with the strikers, and the political labour party was, in the opinion of the australian government, responsible for aiding a strike movement which had a strong revolutionary aspect. the commonwealth government took measures to deport the strike leaders who were alien to australia, but polit- ical labour, which was in power in the majority of the state governments, openly resisted this and other measures dealing with the strike situation. mr. bruce finally decided to appeal to the country for authority to take measures which he deemed necessary for its safety, and a general election was held in nov. 1925. the election resulted in the heavy defeat of the labour party. the nationalists obtained 38 of the 75 seats in the house of representatives, the country party 14 and the labour party 23. in the senate there were 22 seats to fill. labour already held 11 seats in the section not due to retire, and it was therefore necessary for the party to win eight seats in order to have a ma- jority in that house. the electors, however, made a clean sweep of the labour candidates and returned 22 members of the na- tionalist and country parties. voting at this election was com- pulsory under a penalty of £2. bibliography.— oxford survey of the british empire, vol. 5, australasia (1914); viscount bryce, afodern democracies (1921); a. w. jose, history of australasia (1921); c. e. w. bean and ff. s. gullett, oficial hestory of australia in the war of 1974-18 (1923); v. g. childe, how labour governs: a study of workers’ representa- tion in australia (1923). (f. pe.*) constitutional questions experience has demonstrated the marked rigidity of the aus- tralian constitution. between 1908 and 1925 only one amend- ment was carried in accordance with the procedure outlined in section 128. the situation foreseen by certain critics, in which proposed amendments would be carried by sweeping popular majorities, but lost to an opposition strong enough to control three small states, did not occur, but the submission of proposed alterations to a referendum proved a sufficient barrier. proposals which obtained the necessary statutory majorities in both houses of parliament were generally lost when they were re- ferred to the people. proposed amendments——in 1910, simultaneously with the general election of april 13, electors were asked to decide on two constitutional amendments. one of these was accepted by a majority; it enlarged the power of the commonwealth to take over the debts of the states, which by section 105 of the con- stitution was limited to debts already existing at the date of the commonwealth’s establishment. by the amendment state public debts incurred later could also be taken over. the other proposal related to the allocation of the customs and excise reve- nue between the commonwealth and the states. under section 87, the commonwealth’s share was limited to one-fourth of its total. this arrangement was to continue for a period of ten years and thereafter until the commonwealth parliament otherwise provided. parliament resolved, however, to diminish the pro- portion left to the states to an amount representing {1.5.0. for each unit of population—and to do so, not by statute, a course which was open under section 87, but by constitutional amend- ment, in order to give the states a somewhat more stable claim on the proportion leit to them. the amending measure was passed in parliament but was rejected at the referendum of rg1o0. at a slightly later date, an ordinary statute to the same effect was passed. the effect of this was greatly to enhance the finan- ° cial importance of the federal government, while the corre- sponding reduction of the states’ share in customs and excise revenue, by approximately so %, initiated a period of consider- able financial stringency in their finances. a further unsuccessful effort to amend the constitution was initiated in 1910 and submitted to the people in a referendum of april 26 1911. the object of this was to give to the common- wealth parliament power to deal with the following matters:— (2) trade and commerce, without any limitations, instead of “trade and commerce with other countries, and among the states ” only. (6) the control and regulation of corporations of all kinds, except those formed not for the acquisition of gain, (only “ foreizn cor- 274 porations and trading and financial corporations formed within the limits of the commonwealth "' came under the jurisdiction of the federal parliament.) (c) labour and employment, including wages and conditions of labour and the settlement of industrial disputes generally, including disputes in relation to employment on state railways. (conciliation and arbitration by the commonwealth operate only in the case os industrial dispute extending beyond the limits of any one state. (¢) combinations and monopolies in relation to the production, manufacture or supply of goods or services. this proposal was rejected by a majority and also by a major- ity in every state except western australia. on the same occa- sion and as an outcome of the same legislation, it was proposed to insert in the constitution the following sub-section:— when each house of parliament, in the same session, has by reso- lution declared that the industry or business of producing, manu- facturing or supplying goods, or of supplying any specified services, is the subject of any monopoly, the parliament shall have power to make laws for carrying on the industry or business by or under the control of the commonwealth, and acquiring for that purpose on just terms any property used in connection with the industry or business. this proposal was also rejected by closely similar voting. in 1913 the same proposed alterations of the constitution, with certain minor changes, were again submitted in the form of six separate amendments. they were again rejected, although on this occasion a majority for them was obtained in queensland, south australia and western australia, while new south wales, victoria and tasmania were hostile. in 1919 proposals were again submitted to a referendum for extending the legislative powers of the commonwealth relating to industrial disputes and the nationalisation of monopolies. both proposals were rejected. on this occasion south australia was hostile, but victoria gave a majority for the proposals, as did queensland and western australia. decisions of the high court—apart from action of a legisla- tive character directly altering the nature of the constitution, there must be noted, within the period 1900 to 1925 certain constitutional changes due to the activity of the high court, which, under the terms of the constitution, is made its final inter- preter. in a series of early cases the doctrine of immunity had been applied to both commonwealth and state instrumentalities. under this doctrine, the officers, institutions and other machin- ery of the one government are not to be fettered, controlled, hampered or interfered with by the legislation of the other gov- ernment. the instrumentalities of the commonwealth are thus immune from any such legislation of the state, which, even if it contains no explicit exceptions in their favour, automatically exempts them. the principle had also been applied conversely, and it had been held that state instrumentalities were similarly exempt from the incidence of federal legislation. the high court later enunciated, in connection with cases of overlapping of state and federal powers, what amounted in the circumstances to a new principle, stated by the majority of the court in the following terms:— that section (sec. 109) which says ‘‘ when a law of a state is inconsistent with a law of the commonwealth, the latter shall pre- vail, and the former shall, to the extent of the inconsistency, be in- valid,”” gives supremacy, not to any particular class of common- wealth acts, but to every commonwealth act, over not merely state acts passed under concurrent powers but all state acts, though passed under an exclusive power, if any provisions of the two con- flict; as they may. (the amal. soc, of eng.v. the adelaide s.s.co.— 28 c.l.r, 129.) this important determination has obviously affected the inde- pendence and dignity of the states. the total disbursements, e.g., to be made to its railway or other industrial servants by any state, may now depend not on the decision of the taxpayers of the state, but on that of an organ of the federal govt. (the court of conciliation and arbitration). this would appear to be a substantial derogation of the states’ financial autonomy, which in other portions of the constitution is carefully safe- guarded. the high court also decided the true meaning of section 92 of the constitution, the important part of which is as follows :— australia on the uniform duties of customs, trade, commerce and inter- course among the states, whether by means of internal carriage or ocean navigation, shall be absolutely free. the attempts of various states to maintain control over some commodity whose place of origin was within their territory met with varying degrees of success. lwo important points —in the case of new south wales the state had, by appropriate legislation, taken over the whole of the wheat in the state, and refused to sell it in other states except upon its own terms. the court held that this constituted no violation of section 92. the ownership had passed to the king. {f his advisers wished to export it to another state they were free to do so. later a new south wales statute purported to make public property of pigs. here, however, the legislature had provided that the ownership should pass only upon a proc- lamation, and that in the interim no holder should export except in certain conditions. this additional provision was regarded as infringing the prohibition of section 92 and therefore invalid. when a similar question arose in queensland over the position created by statute which had been modelled upon the new south wales statute, and in which the operative words were equivalent, the court changed its attitude and, on fuller con- sideration, came to the conclusion that in the interval preceding the actual transfer of stock, or meat, to the king, an intermedi- ate type of property interest, not previously known to the law, had been created, and that it was within the province of the state legislatures to create such new forms of property. con- fronted later with the somewhat different problem presented by the action of the queensland parliament in endeavouring to make it unlawful for the trader to sell commodities within queensland at anything above an officially proclaimed price, the court held that so far as it sought to impose this prohibition upon traders of other states this act was invalid. (mcarthur v. queensland 28 c.l.r. 530.) this decision also has affected the standing of the constituent states of the commonwealth, by imposing a definite limitation upon their legislative powers. whether the same limitation would apply to the legislation of the commonwealth was, of course, not a matter to be decided. but the majority of the court indicated clearly that they considered it would not. the net result of the judgment would thus appear to be to exclude a whole field of legislation from the jurisdiction of the states and leave it, subject to any further decision of the high court, to the commonwealth. bibliograpity.—sir john quick, the legislative powers of the commonwealth and the states of australia (1919); a. d. ellis, aus- tralia and the league of nations (1922); and commonwealth law reports, (w. a. fo.) defences of the commonwealth the defence acts of 1909 and 1911 provided for the compul- sory enrolment and military training of all males between the ages of 12 and 18 as cadets, and then between 18 and 26 as citizen soldiers. the acts compel the boy and the young man to attend so many statutory parades each year and to spend several days actually in camp—the number in each case varying according to circumstances. the total number of boys at cadet age at the census of 1921 was approximately 300,000. there were 353,000 men of citizen soldier age. by an act of 1921 the australian army system was reorganised on the model of the australian imperial force in the world war. the organisation is terri- torial, each area providing a battalion of infantry and a pro- portion of other troops. after training, the citizen soldier passes into the reserve. ; as a result of the washington conference on disarmament it was decided by the commonwealth in 1922 that the universal training law should be continued, but that its operation should be restricted to the more populous centres and to certain quotas only. as from july 1 1925 senior cadet training was confined to one quota instead of four quotas, beginning on july 1 of the year in which persons hable for service reach the age of 17 years. citizen force training was confined to three instead of seven quotas, beginning on july 1 of the year in which persons liable australia reach the age of 18 years, and continuing until june 30 of the year in which they reach the age of 21 years. notwithstanding these reductions in training, the liability to register at the age of 12 years and to serve for the full period prescribed by the de- fence act remained. the divisional organisation of the field force is retained in skeleton form, units being maintained at considerably below war strength. the total strength of the per- manent military forces in 1925 was approximately 38,8809. an important section of the reserve is formed by the rifle clubs. in 1925 these clubs, which are oflicially recognised, num- bered 1,383 with a membership of over 80,o00. the royal mili- tary college at duntroon was established in 1911 for the purpose of training officers for the permanent forces. over 158 stalff cadets graduated between that year and 1918 and saw service during the war. the activities of the college suffered as a result of post-war retrenchments. naval policy.—in 1909 australia, which had previously con- tributed a subsidy to the british navy, agreed at an imperial defence conference to a proposal for the building of an inde- pendent australian fleet unit. under this scheme australia provided a fleet unit of one battle cruiser, three light cruisers, six destroyers and three submarines, which, placed unreserv- edly at the disposal of the british admiralty at the outbreak of the world war, did notable service. additions to the navy, by purchase and gift, were gradually made, and when peace arrived the fleet consisted of one battle cruiser, six light cruisers, twelve destroyers, six submarines and various auxiliaries, sloops and depet ships. the washington conference greatly affected australian naval policy. in acceptance of its decisions the battle cruiser ‘“aus- tralia ’’ was sunk and 19 other ships paid off. in r925 the number of ships actually in commission was less than in 1914. a vigorous programme of development was begun, including the construc- tion of two new cruisers, the maintenance of ships out of com- mission and the establishment of submarine bases and oil depedts. australia has a naval college at jervis bay for the education of naval officers; the system closely follows that of naval colleges in england, and all expenses of the cadets are met by the com- monwealth government. there is also a training ship at sydney for other ranks. | in 1912 approval was given for the establishment, as part of the army organisation, of a central flying school for the train- ing of aeroplane pilots. training commenced at point cook in june 1or4 and continued actively throughout the war. an air adviser to the navy department was appointed in 1918. in 1920 the australian air force was constituted by proclamation as part of the military forces. on march 31 1921 this force became the royal australian air force. the approved establish- ment is 71 officers and 300 other ranks; the units are a head- quarters at point cook, an aircraft depet and training school and an experimental section. over 120 aerodromes and landing grounds had been prepared by the end of 1925. ii. economic and financial history area and population.—the following table gives the areas and population of the states and territories of the australian commonwealth:— popula- tion 1921 area in sq. m. state new south wales . 309,432 | 2,100,371 victoria ; 87,884 | 1,531,280 queensland 670,500| 755,972 south australia 380,07 495,160 western australia . 975,920| 332,732 tasmania fe 26,215| 213,780 northern territory 523,620 3,867 federal capital 940 2.572 the commonwealth 2,974,581 | 5.435.734 in 1909 the commonwealth and the state of new south wales entered into an agreement for the surrender to and acceptance by the commonwealth of an area of 912 sq. m. as the seat of 275 the government of the commonwealth. this area was consti- tuted a federal territory on jan. 1 1911. by the jervis bay territory acceptance act 1915, an area of 28 sq. m. at jervis bay was surrendered by new south wales and accepted by the commonwealth as a port for the federal territory. on jan. 1 tort, the northern territory was transferred by proclamation from the state of south australia to the commonwealth, and constituted a federal territory. on july 1 1914 norfolk island, a crown colony administered by the government of new south wales, was taken over by the federal parliament as a territory of the commonwealth. in 1920 the former german possessions of kaiser wilhelms land, the bismarck archipelago and the solomon islands were entrusted under mandate from the league of nations to the government of the commonwealth of australia, and administered as the territory of new guinea. the natural increase of births over deaths per 1,000 of the population in the period 1906 to 1910 was 15°93. the popula- tion at the census of 1911, exclusive of full-blood aboriginals, was 4,455,005. as a consequence of the world war the rate of in- crease fell, and for the period 1919 to 1923 the figure was 14-07 per 1,000. at the census of 1921 the population was 5,435,734. the average annual increase for the period 1921 to 1924 was 117,000. of this number, 68-5 was dlue to natural increase and 31°5% to immigration. the increase for 1925 was 110,000, of which 65% was natural increase ind 35% immigration. at the end of 1925 the total population approximated 6,000,000. aboriginal reserves totalling 30,231 sq. m. have been set aside for the native population, and all possible help is given to this primitive people; their number however constantly declines. the ro21 census showed 1,597 in new south wales, 144 in victoria, 1,609 in south australia, and an estimate of 15,587 in western australia. the number in the northern territory is vari- ously estimated from 20,000 to 50,000, the weight of evidence favouring the former rather than the latter number. in tas- mania the aborigines have been extinct for many years. growth of urban population.—a feature of australian social life is the preponderance of the urban over the rural population. in south australia and victoria more than one-half of the total population of the states is concentrated in adelaide and melbourne respectively, while over 45% of the population is contained within six towns. the following table shows the pop- ulation of these towns on dec. 31 1924, both in numbers and as percentages of the populations of the respective states. the total is also given as a percentage of the total population of the commonwealth. ——— ee popula- 0 4 y year pan vf sydney (n.s.w.) 1,012,070 | 44-89 melbourne (vic.) 885,700 | 53:45 brisbane (qld.) 3ist 245,015 | 29°35 adclaide (s.a,) dee. 289,914 | 53°84 perth (w.a.) . 1924 176,467 | 48-46 hobart (tas.) . 56,507 | 25°74 2,665,673 total the states and the commonwealth strive to counterbalance the call of the cities by cheap railway rates for farmers’ goods, by increasing as much as possible such of the conveniences of civilisation as are under state control, by encouraging manu- factures in country centres and by other means: all effort seems to be in vain, and the proportion of the urban to the total popu- lution is growing. the settlement of the great empty spaces of the northern territory still presents an apparently insoluble problem, and successive commissions of inquiry have failed to suggest any adequate remedy for what is generally recognised as a national danger. immigration.—in regard to immigration, australian public opinion has undergone a marked change, due chiefly to a fuller appreciation of the danger of a small white population. there was, for many years, a desire on the part of the exceedingly prosperous working-people of australia to keep out immigrants as much as possible, lest an increase in the population should 276 result in lower wage rates and a fall in the standard of material welfare of the workers. that desire survived in some quarters in 1925 and was still a force to be reckoned with; but it was gradually being recognised that a much larger population was necessary to the safety of the country, and need not affect the individual prosperity of the inhabitants of a continent which has room at a low estimate for 100,000,000 people. in 1906 the policy of state-aided immigration was re-established and, though interrupted by the war, was later revived under commonwealth direction. in 1920 an arrangement was made between the commonwealth and state governments, under which the commonwealth is responsible for the recruiting of immigrants abroad, whilst the state governments advise the commonwealth as to the num- bers and classes of immigrants they are prepared to receive. the commonwealth selects the immigrant according to the re- quirements of the state concerned and brings him to australia; on his arrival the state takes the responsibility for placing him in employment or on the land. under an amending immigration act (1920) the entry was prohibited :— (a) of any person advocating the overthrow by force or violence of the established government of the commonwealth or of any state or of any other civilised country, or of all forms of law, ete. (b) for a period of five years, of any person of german, austro- german, bulgarian or hungarian parentage and nationality, or of turk or ottoman race. by a proclamation issued on dec. 2 1925, the latter restriction was removed as from that date, except in so far as it affected persons of turk or ottoman race. between 1914 and 1923, 914,436 persons were assisted to migrate to australia. british immigration was still far from satisfactory in 1925. the following table gives the figures for the years before the war and the period 1921-4. british 146,602 122,443 the empire settlement act of 1922, by the terms of which the british government entered into partnership with the do- minions for the encouragement of assisted immigration, failed to realise the expectations of its sponsors. the hostility of organised labour in australia, the high standard demanded by the commonwealth authorities in london, and the fact that crown lands are owned by the states, all tended to restrict the flow of immigration from the mother country. in may 1925 an important agreement with the british government to en- courage migration to australia was announced. the british government offered to make a loan to the australian govern- ment of £34,000,000, provided that, within a period of ro years, 430,000 british emigrants were settled in australia. the british government would meet one-half of the interest charges on this loan during the first five years and one-third during the second five years; it also undertook to bear a proportion of the cost of maintenance of training farms in connection with the scheme, and made certain guarantees against loss. this agreement has to be accepted by all the states of the commonwealth before it can be given practical effect. up to the end of 1925, only victoria and western australia had accepted. (ih. fes) production, industry and trade during the years 1910-25, the pastoral and agricultural indus- tries have continued to be the most important in australia, though a considerable growth of manufacturing has taken place. the mining industry has, however, declined both in quantity and in value. in the following table the average annual value of the output of the various classes of production are compared. pasteral preduction—during the period 1910-3 wool repre- sented 13:3% of the total australian production and 35-0 % of the total exports, and for 1921-2 to 1923-4, 12-9 % of the total australia period oe 1921-2 class of production 1911-3 re 1923-4 £ £ ‘agricultural 43,563,000 | 83,399,000 'pastoral . : : 53,402,000 | 87,808,000 forests and fisheries ; : 6,166,000 | 11,169,000 dairy, poultry and bee farming . 19,909,000 } 43,357,000 mining. , . , 24,790,000 | 20,841,000 manufactures 59,873,000 | 131,556,000 total . 207,703,000 | 378,130,000 1period ig11-2 to 1913-4, allowance should be made for the alteration of price levels between igtt and 1924. it is officially estimated that on 1911 price levels the value of the annual average production for the period 1921-2 to 1923-4 of the agricultural industry was £59,341,000; the pastoral industry, £44,032,000, and the dairying, poultry and bee-keeping industries, £24,479,000. production and 45-5 % of the total exports. before 1914 austra- lia annually produced twice as large a quantity of wool as any other country. her output in 1912-3 amounted to approximately 700,000,000 |b. out of a world total of some 3,157,000,000 ib., 1.€., 22°6%. in 1921-2 the world production had sunk to 2,697,- 000,000 lb., of which total australia was responsible for 631,000,- 000 ib. or 23:5%. the breeding of sheep for wool is carried on in every state of the commonwealth, particularly in new south wales. owing to climatic conditions, the sheep population of australia fluctuates considerably. during the period 1910-25 the lowest number of sheep, 69,000,000, was recorded in 1915 and the highest, 93,000,000, in 1911. in 1923 the number was 80,110,461; a considerable increase occurred in 1924, there being 4,000,000 more in victoria and queensland alone. during the period 1885-1925 careful attention to breeding developed a much more valuable type of sheep. between 18090 and 1920 the average yield of wool per sheep has risen by about 2lb. or 40%. in 1913 the average value of merino wool was tod per pound. in 1915-6, owing to war conditions, wool clips accu- mulated in australia. the imperial wool purchase scheme was then established and the imperial government purchased, dur- ing the remainder of the war period, the australian clips on a flat rate basis of 1/35d per lb. plus one-half share of any profits realised on sales for civilian purposes. by agreement the price of 1/33d for australian wool was maintained for the 1919 season, but world prices for wool were rising rapidly. in april 1920 the high water mark was reached, but a heavy slump followed, which was intensified by the termination of the imperial wool purchase scheme in june 1920, after which the price per lb. fell still further, the lowest point being touched in march 1921. on jan. 27 1921 the british-australian wool realisation asso- ciation, ltd., was formed to take over the balance of stocks held by the british government, and it undertook the marketing of the stocks of australian wool on behalf of the imperial gov- ernment and of the producers. the concluding sale of the b.a. w.r.a. wool took place on may 2 1924. the total number of cattle in australia in 1913 was 11,483,- 882, and in 1923 the number had increased to 13,357,508. in considering the beef industry, from this total must be deducted dairy cattle, numbering 2,035,717 in i913 and 2,304,644 in 1923. the raising of cattle for beef is the main industry of the northern districts of western australia, the northern ter- ritory and the northwest of queensland. the war conditions gave a great impetus to the australian beef industry. the brit- ish government bought the available supplies of australian beef at fixed prices until 1921, when the price level on the brit- ish market was so low that the export of beef from australia was unprofitable. from 1922 till 1924 the australian government was forced to subsidise the export of frozen and canned beef, and of live cattle for slaughter. the year 1925 saw a rise in price which was sufficient to cover the cost of production and marketing, but which was not sufh- cient to encourage any large increase in production. australian beef is at a serious disadvantage in comparison with that of aust south america. the best argentine meat is brought to great britain in a chilled state, whereas australia, being much farther away, has to send her beef in a frozen condition. the further development of the industry is largely dependent on whether scientific research can remove this disadvantage. the importance of the beef industry in australia is not confined to its own in- trinsic value. cattle, as opposed to sheep, can be travelled large distances and can flourish without elaborate fencing. tor these reasons the development of a large portion of northern australia is dependent upon cattle. the production of sheep for mutton and lamb has, in australia, always been subsidiary to wool production, and for this reason less progress has been made in australia than in new zealand in this branch of the pastoral industry. ‘the export trade in mutton and lamb is confined to the southern coastal areas of victoria, new south wales and south australia; the average annual exports for the period 1911-3 amounted to 149,957,686 lb. and for 1921-2 to 1923-4 to 99,710,969 pounds. australia con- sumes about four-fifths of her production. experience in the use of superphosphates and clovers on lands within the heavier rainfall areas in south australia indicates that very consider- able developments of mutton and lamb production will occur in the near future. agricultural products —great progress has been made in im- provement of the methods of production and in the varieties of wheat grown. these improvements have led to an increased yield per acre which is the more noteworthy when it is realised that the production of wheat has been extending into drier areas. the results which have been obtained in the drier areas make it evident that the area under wheat in 1925 could be trebled without substantially lowering the average yield per acre. the progress made in wheat production in the commonwealth is indicated in the table given below:— annual average | ——— i9ii-2 to 1913-4 | 1921-2 to 1923-4 | arca under wheat 8,018,294 ac. 9,674,445 ac. total yield . e ~ | 88,987,183 bu. 121,178,973 bu. average yield per acre 11° bu. 125% tt. value per acre - {2.0.6 {3.4.6 the production of cereals other than wheat is developed on a much more limited scale. ‘the oat crop, mainly produced in victoria, is used for feeding purposes. maize is grown to a con- siderable extent in new south wales and queensland, and barley growing is concentrated in south australia. very large areas in australia are suitable for the growing of barley and maize, but the production is conditioned by markets for these cereals. if an export market could be found for australian pig products, a large extension of production of both barley and maize will take place. sugar cane is grown 1n qucensland and new south walcs, queensland producing over 90% of the total output. the annual average production of cane in the period 1911-2 to 1913-4 was 1,696,000 tons; for 1921-2 to 1923-4 1t was 2,309,000 tons, from which an average output of 297,457 tons of sugar were ob- tained. the ‘“‘ white australia ” policy has led the common- wealth government to assist the cane farmers in various ways. in 1915 the government agreed to purchase the sugar output at the price of {30 6s. 8d. per ton. in 1923 this agreement was tcr- minated, and a competent tribunal was formed which fixed the price at £27 per ton. the embargo on importation was continued until 1925, but special concessions were granted to manufacturers using sugar in goods for export. cotton production in queensland dates from 1019. in that year 72 ac. were planted and 37,238 lb. of unginned cotton produced. in 1923-4, 75,000 ac. of land under cotton in queensland produced 12,614,000 ib. of unginned cotton. in order to encourage the development of this crop, the common- wealth government, in conjunction with the queensland gov- ernment, guaranteed the price of 5d. per ib. to cotton of less than 1} in. staple and 53 per lb. to cotton of a longer staple. ‘the rea- ralia 277 son for the encouragement from government sources of this ex- perimental development has been the idea that the production of cotton in australia is particularly suitable for the small farmer, and, if successful, will lead to a rapid extension of land settlement. dairying. —dairying, as shown by the following table, has expanded considerably during the period 1911-24:— annual .|average 5 — iq1i-3 ° 1,547,016 578,012,226 gal. - 199,508,714 lb. 1921-2 to 1923-4 dairy cattle (milking) milk produced for all purposes . butter production i ,654,268 704,370,465 gal. 242,910,734 ib. the most important product. of the dairying industry is butter; 40% of the production was exported during the period 1911-3 and 37% during 1921-2 to 1923-4. the season 1924-5 wit- nessed a largely increased export, amounting to 145,281,000 lb. or 79,000,000 ib. more than in 1923-4. the co-operative pro- duction of butter from milk has made more progress in aus- tralia than any other branch of agricultural production; 70% of the total output 1s manufactured 1n co-operatively owned butter factories. the australian dairying industry has been extensive rather than intensive, but the present tendency is to attach an increasing importance to intensive methods. attention is being directed towards the improvement of the breeding of dairy cattle and to the progressive improvement of pastures. forestry.—a post-war revival of interest in forestry resulted in state encouragement of the educational side. the annual average amount of local timber sawn or hewn in the common- wealth during the period 1911-3 was 649,110,000 super. ft., and for 1921~2 to 1923-4, 615,986,c00 super. feet. the exports of dressed and undressed timbers (hardwood) show a distinct de- cline between the annual average for 1911-3 and the annual average for 1921-2 to 1923-4 from 134,078,000 super. ft. in the earlier period to 96,866,c00 super. ft. in the later period. fruit.—fruit production in australia may be classified under the five main heads of apples and pears, soft deciduous fruits, dried fruits, citrus fruits and tropical fruits. in 1913, the apple crop amounted to 4,691,836 bu., valued at {1,086,702. the annual average of 1921-2 to 1923-4 shows an increased yield of 2,000,000 bu. over the 1913 figure, the value being £1,962,836. the area under apples amounted in 1923-4 to 81,000 ac., and of this total tasmania contained 32° 6. the increase in pear pro- duction is not so noticeable, the yield in 1913 being 1,100,114 bu. and the average for 1921-2 to 1923-4, 1,388,713 bu. the export of apples in 1913 was 49,000,000 ib. and in 1923-4 65,000,000 pounds. the production of apricots, peaches and berry fruits is either consumed locally or exported as canned or pulped fruit. the export of canned fruit increased from an annual aver- age value of £15,000 in the period 1911-3 to £471,000 in 1921-2 to 1923-4. dried fruit production is concentrated mainly in the murray basin. the progress in this industry has been re- markable: the annual production of dried fruits averaged 243,000 cwt. for the years 1911-3, but during the period 1921~2 to 1923-4 the output averaged 682,000 cwt., currants and raisins accounting for 637,000 hundredweight. pre-war figures indi- cate that only 20° of the production was exported, but since the war the export has increased to 80". the citrus industry flourishes in the murray irrigation settle- ments, new south wales, queensland and western australia. in 1923-4, 2,820,000 bu. of oranges were produced. the export trade has as yet hardly passed the experimental stage: in 1923-4 approximately 26,560 bu. of oranges were exported to great britain. queensland is the main source of tropical fruits. an expanding production of bananas and pineapples has coincided with ex-soldier settlement in that state. the wine in- dustry is rapidly increasing. the area under vineyards 1n 1912-3 was 62,388 ac., south australia and victoria accounting for 80°, of this total. by 1923-4 the acreage had increased to 112,- 965 acres. the annual production of wine increased from an 278 average of 5,262,948 gal. for the period rori—3 to 11,551,415 gal. for the period 1921-2 to 1923-4. mining.—the following figures indicate the relative impor- tance, as far as value of output is concerned, of the mineral prod- ucts of australia :— annual average iqii-3 1921~3 £ 3,571,757 10,645,710 1,930,569 964,639 950,855 462,071 430,771 £ 9,936,041 4,324,004 3,347,321 3,025,783 1,576,538 1,323,239 328,288 154,125 | 531,970 309,760 307,973 hard coal mining activities are econtencmecds in new south wales whose output amounts to 83% of the total. australia’s gold out- put, 64-5 % of which comes oni western australia, only repre- sented 5% of the world production in 1922, in comparison with her 10% share before 1914. the decadence of mining in australia may be regarded as of a temporary nature. large metalliferous areas are reported in central australia, but the existing lack of transport facilities renders development too costly to be under- taken. manufactures —the two most important branches of second- ary production are the iron and steel and the woolen industries. large supplies of high-grade iron ore occur in south australia; these are shipped to the cozlfields at newcastle, new south wales, where an iron and steel industry has been established. articles of apparel and boots and shoes are now largely manu- factured and there has been a considerable development of engi- neering activity, especially in the production of railway rolling stock. the average annual value added to products by process of manufacture was {59,873,000 for the period 1911-3 and £131,556,000 for 1921-2 to 1923-4. of the latter total about £48,682,000 was due to such branches of secondary production as the preparation of foodstuffs for consumption, the provision of heat, light and power and brick and tile production. heai, light and power.—the supplying of heat, light and power in 1912 cost £4,901,975 and in 1923-4 cost {£14,750,000. the development in tasmania of hydroelectric schemes has led to the establishment in that state of a number of new indus- tries. in victoria large brown coal deposits occur. the victorian electricity commissioners were set up in 1918 to consider the possibilities of establishing a scheme for electrical gen- eration from the lignite mined at morwell. the supply of electricity from this source of cheap power is becoming a factor of great importance to the factories in and around melbourne. irrigation.—irrigation in australia is concentrated mainly in the murray valley. the murray river agreement, entered into in 1914 by the commonwealth government and the govern- ments of south australia and victoria, was brought into opera- tion in 1917. the agreement provides for the construction of the hume dam on the upper murray, the lake victorian storage schemes, the burrunjuck dam in new south wales and the sugar loaf dam in victoria. the work is supervised by the river murray commission and it is estimated that when these works are finished, the water impounded will irrigate 1,500,000 acres: 26 locks and weirs are to be constructed on the murray and dar- ling rivers which, when completed, will allow of 1,000 m. of navigation on the murray, 600 m. on the murrumbidgee and 1,000 m. on the darling. the special importance of these irri- gation works is to be found in the opportunities which they provide for close settlement, which has been found the most sat- isfactory form of land settlement for british immigrants. overseas trade —the annual average value of australian imports for the period ro11-3 was £74,958,coo and for the period 1921-2 to 1923-4, £125,147,000. the domestic exports for these periods had an average annual value of £79,033,000 and £121,734,000 respectively. australian tariff policy has for silver lead ore and concentrates copper ore, ingot and matte zinc and concentrates tin and tin ore . lead ; [ron silver . australia many years been governed by two desires: firstly, to protect and encourage home manufactures, and secondly, to assure to the british manufacturer the chief share of the import trade. under the tariff act of 1920 additional protection was afforded to many australian industries and the average preference on british goods was increased from 5% to 12%. in 1921 the industries preservation act was passed to protect both the australian and the british manufacturer from the com- petition of countries with depreciated exchanges. the tariff board, composed of a government representative, two business men and a representative of primary producers, was also set up in 1921 to administer the industries preservation act and to investigate the effect of the tariff upon primary production and upon the cost of living. later tariff measures carried on the two policies of industrial protection and imperial preference. the general trend of australian overseas trade is shown in the follow- ing table:— imports annual average annual average country of origin £ 37,661,000 10,226,000 ; 6,851,000 . | 20,220,000 74,958,000 united kingdom united states germany other countrics 61,677,000 26,076,000 682,000 36,712,000 total 100-0} 125,147,000 exports annual average annual oo , average country of destination £ 33,841,000 8,628,000 6,720,000 2,046,000 27,798,000 united amedom france. belgium united states other countries total bibliograpihy.—meredith atkinson, australia: economic and political teen eee dr. t. g. taylor, ‘ * agricultural climatology cf australia ” in the quar. jour. of roy. met. soc, (oct. 1920); see also the australian official publications, (il, m.) 5,279,000 8,351,000 44,402,000 79,033,000 | 100-0 121,734,000 banking and finance banking in australia, linked as it is with the economic devel- opment of that continent, presents in its history since 1908 fea- tures of exceptional interest. the pre-war period was marked by the continued recovery from the effects of the financial crisis in australia in 1893, by the realisation of immobile assets, chiefly unproductive or partly productive lands, and the steady conversion of the proceeds into commercial or other similar assets of a more or less liquid form and by the general strength- ening and consolidation of the banking position. of the 30 banks in existence before 1893, 13 were either ab- sorbed by other institutions or disappeared, while several of the older banks, still struggling in 1908 to carry through their recon- struction obligations of 1893, have successfully met them, and regained positions of undoubted strength. their recovery in earning power and dividends and the increased market value of their shares are indicative of the general trend towards the more stable and prosperous banking conditions which pre- vailed throughout australia in 1925. evidence of this change is reilected in the net profits of the trading banks, which increased from £908,000 in 1899 to {2,423,000 in 1908, while dividends in the same period went up from {£660,000 to £1,378,000. of the 14 older banks forming the main body of the 19 in- stitutions trading in australia in 1925, some of them emerged from the crisis of 1893 not only untouched by its effects but with australia added strength. none of the 14 banks, it may be mentioned, has been in existence for less than 40 years. five additional banks have been added since 1908 to the number operating in aus- tralia; of these three are foreign institutions each with a single agency, mainly for exchange purposes, and two are locally domiciled, one being the central institution—the commonwealth bank of australia. state regulation.—for a number of years two of the aims of the labour party in australia were a state note issue and a state bank: these aims were ultimately achieved, although not precisely on the lines nor with the results contemplated. the australian banks, from their foundation, had enjoyed the right to issue their own notes. in 1866, the queensland govt., in order to facilitate their own financial operations, decided to make an issue of treasury notes as an auxiliary to the issues of the banks. but the banks, wishing to protect their own circulation, presented for payment every government note as it came into their hands for credit or collection, thus rendering abortive the government scheme, which was withdrawn a couple of years later. after a majority of the banks had suspended payment in 1893, the queensland govt., in order to stabilise the currency and pro- vide funds for their own commitments in london, abolished the bank-note issues in queensland by imposing a prohibitive tax and circulated their own treasury notes. the latter con- tinued as a monopoly from 1893 until 1911, when all other issues were superseded by the federal govt. notes now circulating throughout australia. the queensland govt. circulation aver- aged {1,500,000 during the 18 years of its existence, against a gold backing of about one-third, the maximum circulation reaching £1,692,506. under the australian notes act of 1910 the sole right to issue and re-issue notes became vested in the commonwealth gov- ernment. the private issues of the banks, which had reached a maximum of £3,800,000 in 1910, therefore lapsed and were redeemed on presentation. on sept. 30 1925 notes were still out- standing to the amount of £202,588, including all lost or de- stroyed. the federal issue at close of rg1to was £3,380,476 and in dec. 1911 reached £10,156,358. it amounted to {56,890,226 in dec. 1924, falling on june 30 1925 to £53,890,226. the latter comprised £23,930,437 notes held by the public and £29,959,- “89 by banks, the reserves being £25,841,027 of gold coin and bullion, australian govt. securities valued at £27,574,106 and other assets. the management of the issue was handed over to the commonwealth bank of australia when a note board was created in 1920. the net profit from the note issue de- partment is paid by the bank direct to the treasury, the amount for the half year ending june 30 1925 being £578,577. the commonwealth bank.—after much contention in the australian parliament, the commonwealth bank act received assent on dec. 22 1911 and steps were taken to bring the measure into operation without delay. the first governor, mr. (after- wards sir) denison miller, was appointed on may 14 1912, and to his organising capacity, energy and prudent conduct of the affairs of the bank its success was largely due. branches were opened in london and throughout australia in jan. 1913, and senior officials were selected for the management from other australian banks. from london a system of agents and corre- spondents, first in the british isles and then throughout the world, was arranged, and a bank created to handle in london not only banking in all its phases but the organisation required for the loan flotations in england of the commonwealth govt. as well as of several of the state governments and municipal and other bodies. the preliminary expenses of the bank were provided from a loan of £10,000 from the treasury to the governor; this was quickly repaid, a remunerative busi- ness was formed and large profits, aggregating £4,696,608, were made in less than 12 years from its inception. the institution was started without capital, other than the temporary loan of £10,000, but it was backed by the guarantee of the state for all its obligations. after the death of sir denison miller in 1923, the intention to alter the constitution of the bank by appointing a board of 279 control of eight directors was given effect, and the amending act was passed on aug. 20 1924. a capital of {20,000,000 was also provided for the bank, £4,000,000 of which was obtained by transfer from accumulated profits, £6,000,000 is to be granted from government funds, and the balance to be raised by the sale of debentures. up to dec. 1925 the £4,000,000 from reserves had been deemed sufficient, and £696,608 from profits still re- mained at reserve account. a board of advice in london of three members was also provided for, but no appointments had been made before the end of 1925. the war period.—after the outbreak of the world war the british govt. entered into contracts through the australian govt. for supplies at pre-war prices, and the cost of these was paid from time to time to the commonwealth bank in london, © for distribution through the other banks to the producers. wool, wheat, meat, butter, cheese, etc., thus paid for aggregated a value of over £200,000,000. all the primary producing indus- tries were, as a necessity of the war, assisted in their financing and practically controlled by the commonwealth govt., their products being taken over in bulk or dealt with in “‘ pools.” the total amount thus paid to primary producers under the compulsory and voluntary pooling arrangements exceeded £437 ,000,000. in australia loans for war purposes were floated through the state bank for a total sum of £210,000,000; subscriptions for the 10 local war issues exceeding £250,000,000. the private banks loyally co-operated in all these war measures and shared in the related exchange transactions. the financing of the australian troops was carried through by the commonwealth bank. branches were opened in army camps throughout australia and in england, for the purpose of facilitating soldiers’ pay- ments, and some millions of transactions were undertaken without charge, including private cable transfers to england, france, egypt, palestine, etc. australian state notes were cashed for australian soldiers and travellers at the chief centres through- out the world at par of exchange. bank of england notes, to a large aggregate, were cashed for returned soldiers in australia free of charge, under an arrangement by which the common- wealth bank was periodically reimbursed in london on receipt of advice of the amounts cashed; the notes themselves, owing to submarine activities, were retained in australia until after the world war. post-war developments—the course of australian finance throughout the war and during the post-war period ran with- out hitch or difficulty. the commonwealth bank—which oper- ated in effect if not in name as a central bank from its formation —displayed in its management in australia and in london a helpful attitude of co-ordination and co-operation towards the private banks. its strong leadership was willingly followed, and even if the necessity for assistance by way of advances or dis- counts or otherwise did not materially arise, the fact that the state bank, as the instrument of the government and with its reserves including its note issue and gold holdings, stood behind the whole of the banks, contributed towards dispelling any unrest or uncertainty which might otherwise have arisen. asa special measure after the outbreak of war, the australian states were assisted temporarily from the notes fund to the extent of £20,000,000, but the gold reserve never fell below 40%, although the statutory reserve 1s 25%. money in australia was easy during and after the war, and exchange with london more or less stabilised. this was assisted by the arrangements with the british govt. for purchase of all wool and wheat, etc. the ease of money, especially in the later post-war period, re- sulted partly from the bountiful seasons, and partly the good prices realised from wool and wheat. in 1925 the value of the wool shipments from australia alone reached £55,000,000, as against £25,000,000 in 1914 from australia and new zealand together, although the weight of wool despatched abroad had not increased. another factor in the monetary ease has been the somewhat liberal expenditure of borrowed money. in addition to the dis- tribution from war loans, the expenditure and the purchase of 280 properties for returned soldiers and their settlement has aggre- gated £100,000,000, and new loans raised by the various states between 1915 and 1924 totalled £250,000,000. the distribution of these borrowed moneys has stimulated certain classes of em- ployment and trade, and doubtless has re-acted on some forms of land values. from 1915 to 1924 the commonwealth public debt increased from £37,000,000 to £415,000,000 and the state debts from £348,000,000 to £595,000,000. after deducting debt counted twice the net total public debt in 1924 was £955,579,000. thrift, as evidenced by the larger deposits in the state govern- ments’ and commonwealth bank’s savings bank departments, has certainly been accelerated, the total balances having grown from {46,147,472 in 1908 to {176,871,147 in 1925. ‘the assets held against the state savings bank deposits of £140,000,000 comprise government stocks {74,000,000, municipal loans £7,000,000, land mortgages and other investments £39,000,000, and cash items £20,000,000. +" land banks, mostly formed since 1918, operate in every state. through the medium of these institutions, funds for short or long term credits to farmers and other land settlers are readily found. they are all state organisations, variously styled the rural bank department of new south wales, the state bank of south australia, the agricultural bank of west australia, etc. the respective states are responsible for the obligations of these bodies, and the amounts of loans on mortgage granted by them and the state savings banks to settlers aggregated £58,338,905 in 1923. arural credits department of the commonwealth bank, to be kept distinct from its general banking business, was formed under an act dated sept. 14 1925, for the purpose of financing the orderly marketing of primary produce by means of loans for periods not exceeding one year. the department may have advances from the treasury up to £3,000,000 at any time, may issue debentures and shall have allocated to it 25% of the net annual profits of the note issue department until the amount so paid reaches a total of £2,000,000. (the profits of the note issue department exceed {1,000,000 per annum.) the advances of the rural credits department may be made to the banks or co-operative associations or such other bodies as may be specified by proclamation. exchange problems —before the return to the gold standard in 1925 the value of the australian pound since 1914 had been linked throughout with that of the british pound sterling. sub- ject to ordinary seasonable trade fluctuations, the australian exchange on london was maintained on a fairly stable basis except on two occasions. one was when, after the end of the war, goods overdue and in anticipation of requirements were rushed out too hurriedly and payment for these shipments exhausted the banks’ london funds, which could not be immediately re- plenished from australia owing to the embargo on gold ship- ments. the converse of this position was created in 1924, when, owing to heavy shipments of wool and wheat at high values, the currency available in australia proved inadequate to finance the purchases, even against credits established by the chief english banks. in the view of the note board any increase tn the note issue, even against gold offered by the associated banks or against cash ear-marked in london, would have created unjustifiable inflation. but the new directors of the commonwealth bank, when ap- pointed in oct. 1924, took, under the wise leadership of the prime minister, the practical rather than the doctrinaire view, and for the seasonal requirements made notes temporarily avail- able to the associated banks against london cash cover, read- justment to be effected on the marketing of the produce in lon- don. notes were only applied for to the extent of 25%> of what was at first thought necessary; repayment was duly made by the banks, and the exchange impasse, during which premiums of 5% and over were paid for telegraphic remittances for the pur- chase of wheat, wool and other australian produce, was removed. gold was imported to the value of {10,000,000 and the gold standard was soon after adopted in australia, simultaneously with the return to the gold basis in england, thus placing the exchange position on a permanent and stable basis. australia the following statement shows the position of the various cheque-paying banks in australia:— capital, reserves and dividends of australian banks to june 30 1924 (excluding three foreign banks each with a single exchange agency) capital paid up . ; ; reserved and undivided profits dividends for year ‘ : £ 30,466,275 26,496,857 31353356 assets and liabilities in australia for quarter ended sept. 30 19025. (sworn averages) liabilities assets f £ notes of old is- gold and silver sues, unpre- coin and bullion | 33,235,455 sented 202,588] australian notes bills in circula- and cash with tion . 2,727,868 commonwealth balances due to bank 37,162,790 other banks 7,950,938) landed property. 7,255,407 deposits 316,763,543] notes and bills of other banks 2,726,341 balances due from other banks - 5,900,786 all debts due to the banks . total assets . 264,790,564 total liabilities . [£327,644,937 £351,071,343 biptiogrrapny.—c. c. faulkner, the commonwealth bank of australia: a brief history (1923); sce also publications issued by the commonwealth statistician: the australasian insurance and banking record; official history of the commonwealth bank, (c. a. b. c.) transport and communications railways.—the great majority of the railways are owned and con- trolled by the federal and state governments. between igi10 and 1925 the total mileage open for traffic increased from 18,012 m. to 27,644 m. on oct. 22 1917, the trans-australian railway from inalgoorlie in western australia to port augusta in south australia was opened for traffic; the line is controlled by the federal govern- ment. with the transfer of the northern territory by the south australian govt. to the commonwealth govt. on a. i 1911, the railways in the northern territory from darwin to pine creek, and in south australia from port augusta to oodnadatta came under federal control. the northern territory acceptance act 1910 provided for a trans- continental line from south australia to the northern territory. the extension of the existing line southwards from pine creek to emungalan was completed in 1917. there are four different gauges in use on the main lines in the various states. a royal commission (1921) recommended the conversion of all main trunk interstate lines to a standard gauge of 4 ft. 83 in. at a cost of £21,600,000. in 1925 the construction of a 4 ft. 83 in. gauge railway between grafton, new south wales and brisbane, queensland, was begun. this is the first action taken towards the unification of gauges. the electrification of the melbourne suburban railways (143 m.) was completed in 1923. work on the construction of the sydney city and suburban ilectric railway (11-9 m.) was recommenced in 1924 after being shut down for 43 years. motor traffic in australia developed considerably between 1910 and 1925. since 1918 the state governments and local authorities have expended considerable sums, not only in making new roads in newly settled areas, but in improving the existing trunk roads. in 1923 the commonwealth govt. passed the main roads de- velopment act, which provided for an annual grant to the state governments of £500,000 for the making of main roads. the grant is conditional on the respective states supplementing it on a pound for pound basis. the grant was increased to {1,000,000 in 1924, and up to the end of 1925 £3,250,000 had been expended under the arrangement. shipping.—rboth interstate and overseas shipping is controlled by the commonwealth govt. under the provisions of the naviga- tion act ig12-20. the act was assented to oct. 24 1913 and is being brought into operation in sections by proclamation. various sec- tions were proclaimed between july 1921 and dec. 1925, including the coastal provisions, which provide that all shipping engaged in interstate trade must conform to the regulations under the act in regard to wages, manning accommodation, etc. a decision of the high court, june 23 1925, held that the provisions of the colonial laws validity act applied to the commonwealth, and that the pro- visions of the commonwealth navigation act concerning the engage- ment and discharge of seamen were invalid, being repugnant to the imperial merchant shipping act. in 1916, owing to the scarcity of freightage due to war conditions, mr. hughes, then prime minister, bought 15 steamers for the com- monwealth, and a programme for the building of 48 vessels in aus- tralia was announced. owing to certain variations, the programme australia | resulted in the building of 21 steel cargo vessels and two five- masted schooners with auxiliary power. in addition, five steamers of 8,450 tons each were constructed in the united kingdom, and the commenwealth govt. also had 18 ex-enemy steamers and one ex- enemy vessel under its control. statutory provision for the estab- lishment of the australian commonwealth line of steamers was made in 1923, when the whole right and title to the 50 vessels then owned by the government was vested in a board of directors. the une was offered for sale in 1925, but only a few vessels were disposed of. , wireless —on march 28 1922 the commonwealth govt. entered into an agreement with the amalgamated wireless (australasia) ltd., whereby the company agreed to establish and maintain direct wireless communication between australia and the united king- dom and canada, and to take over from the commonwealth govt. the existing radio stations under its control. the company is re- quired, if desired, to hand over control of all stations to the govern- ment in time of war or public danger. broadcasting stations have been established in all the capital cities. the agreement provided for the erection of high-powered long-distance wireless stations in the united kingdom and australia. owing to refusal of british govt. to grant licenses for erection and operation of a trunk and other stations in the united kingdom for communication with australia, the agreement was amended in sept. 1924, the company undertaking to erect in australia a ‘‘ beam "’ station cap- able of providing a commercial wireless service with the united kingdom and canada of at least 21,600 words per day for 300 days per year. aviation.—an air navigation act was passed in 1920, the civil aviation department formed and a controller of civil aviation appointed. aerial surveys have been made in all mainland states and in the northern territory. nearly 1oo landing grounds have been acquired or leased. services have been established between. perth and derby (western australia), adelaide and cootamundra (n.s.w.) and charleville and camooweal (queensland). the sey ices are subsidised by the government for the conveyance of mails. bibliography, general. g. turner, first decade of the aus- tralian commonwealth (1911); c. d. allin, 4 history of the tariff relations of the australian colontes (1918); e. j. brady, australia unlimited (1918); c. a. wadsworth, biographical handbook and record of elections for the parliament of the commonwealth (1918, etc.); dr. t. g. taylor, australian meteorology (1920); r. l. jack, northernmost australia (1922); dr. j. a. leach, australia nature studies (1922); sir ross smith, 14,000 miles through the air (1922); a. j. stuart, a land of opportunities: the norihern territories of ausiralia (1923); w. e. thomas, some myths and legends of the australian aborigines (1923); c. f. thwing, human australasia: studies of society and of education in australia and new zealand (1923); a. wittler, an australian geography (1923); s. ll. roberts, iistory of australian land setilements (1924); dr. j. f. watson, fistorical records of australia 1914-24 (1925). see also offictal year-book of the commonwealth of australia; for further information on communications see the annual transport and communication bulletins of the commonwealth. industrial and social conditions _ the average weekly wage for male adults throughout australia for all industrial groups was estimated by the commonwealth statis- tician at £2 iis. 3d. in 1911, £4 14s. 6d. in 1921 and £4 14s. 3d in 1924. the printing group, with £5 &s. 3d., showed the highest average wage in 1924; the building group was next with £5 5s. 6d. and the agricultural group lowest with £4 5s. rod. (including board and lodging). for females, the average in 1924 was £2 9s. 7d. per week compared with £1 7s. 2d. in 1914. these rates of wages are the mini- mum for a full week’s work. the basic weekly wage was first declared in new south wales in 1914; the rates at march 1925 were £4 2s. for males and {2 is. 6d. for females. a royal commission appointed by the commonwealth government in 1919 declared in its findings for a basic wage of £5 16s. per week for a man with wife and three children under 14 years. in 1920 the commonwealth government fixed the basic wage for male employees at £4 per week and §s. for each dependent child. the board of industry of south australia, appointed under the industrial code, 1920, was charged with the fixation of the living wage. the first declaration was made in april 1922, the rates for male adults being 12s. 11d. per day; this was increased to 13s. id. in oct, 1923 and to 13s. 8d. in april 1924. in queensland, the in- dustrial arbitration court declared the basic weekly wage for adult male workers at from {4 5s. to £4 15s., according to the district. these rates were operative in 1925. | a statutory 44-hour weck was brought into operation in new south wales in 1921, the 48-hour week restored in 1922 and the 44- hour week again enacted in 1925. a statutory maximum 44-hour week was brought into operation in queensland in oct. 1924. the average working hours for all industries throughout the common- wealth (excluding shipping and agricultural) in 1924 were 46-66 per week for males and 46-02 for females. the conditions governing apprenticeship are clearly defined in each state, trade unions.—the trade unions range from the small independ- 281 ent associations to the large, interstate organisation, which, in some cases, is a branch of a british or an international union. the number of separate unions and branches in 1924 was 376. the number of male members was 1,175,749, representing 54-5 “o of estimated total number of employees. the figures for female members were 280,664 or 31°5%. the tendency towards closer organisation is evi- denced by the fact that, although membership of trade unions has increased since 1912 by 72°, the number and membership of unions having less than 2,000 members have considerably decreased. in 1924, there were 469 employers’ associations, with a membership of 77,930, united for their own protection and for representation in cases before arbitration courts, wages boards and other wage- fixing tribunals. associations of employers and employees are recognised under the commonwealth conciliation and arbitration act as well as under several state acts, and such organisations may be registered. unem ployment.—according to trade union returns, the average number of unemployed in australia in 1924, exclusive of persons un- employed through strikes or lock-outs, was 35,507 or 8-9 °%%o, as com- pared with 16,054 or 6:5% in 1913. very few unions pay unemploy- ment benefit. in 1922 the queensland government passed the un- employed workers’ insurance act, which provided for the establish- ment of an unemployment insurance fund from contributions by workers, employers and state in equal parts and for the payment of unemployed sustenance therefrom at the rates of from 15s. to 20s. per week for single (male or female) workers, and {1 5s. to {1 15s. per week for married workers, with 4s. or 5s. per week for each child under 16 years of age. the unemployed council, constituted under the act, was empowered to order employers to proceed with works that could reasonably be proceeded with, with a view to reducing unemployment. the act also provided for government relief work in localities affected by unemployment, and for the establishment of labour farms for unemployables. regulation of wages.—two systems exist for the regulation of wages and terms of contracts of employment. in victoria and tasmania there is the wages board system, and in western australia an industrial court. the industrial legislation of new south wales, queensland and south australia embodies both systems. i[ndus- trial courts in these states have been exercising the functions of wages boards. the new south wales industrial arbitration (amend- ment) act, 1926, abolished the state court of industrial arbitration and vested its powers in an industrial commission. in victoria, wages boards’ decisions may be reviewed by the court of industrial appeals. there is also the commonwealth court of conciliation and arbitration which has power to deal only with matters extend- ing beyond the limits of a single state. the industrial peace act, which was passed by the federal parliament in 1920, provided for the appointment of special tribunals for the prevention and scttle- ment of industrial disputes extending beyond the limits of any one state. this is supplementary’ to the court of conciliation and arbitration. the awards or decisions of a tribunal are binding at law and have the same effect.as an award of the arbitration court. health—though part of australia is within the tropics, there is practically no tropical disease. the death-rate from all causes in ea was 9-47 per 1,000. the infantile death-rate, which, owing to the hot summers ruling over the greater part of the commonwealth, is the chicf cause of anxiety to the public health authorities, has considerably improved. in rg901 it stood at 103-61 per 1,000, in 1924 it was only 57-08 per 1,000, the commonwealth government pays a maternity bonus of £5 for every child born of a white woman resident in australia, and the states have public health organisations dealing specially with infant welfare. apart from infant mortality, the chief foes to human life in australia are tuberculosis, cancer and diseases of the heart. a commonwealth department of health was formed on march 3 1921. education.—the most notable advance in the educational life of the commonwealth between ig1o and 1925 was in the rapid develop- ment of the younger universities. in 1925 there was a university tn each of the six states, and the tendency was more and more to decentralise university training instead of looking to svdney, mel- bourne and adelaide as the natural centres. considerable progress was made in the establishment of state secondary education, in the form of high schools and technical colleges, to continue the valuable work done in the primaty institutions which, in most of the states, provide free education for children up to 14 years of age. art.—one of the remarkable features of australian life during the post-war period was the rapid growth of a distinctively national school of art, and the appreciation of its work by the general public, men like lambert, streeton, heysen, hilder and roberts went to the australian ‘“‘ bush ” for their inspiration and gradually their fellow countrymen awoke to the realisation of the beauty that lay at their own doors. at the same time, norman lindsay was making a world-wide name for himself with his delicate etchings and his imaginative black and white work and bertram mackennal had established himself as a sculptor. an exhibition of australian art held in london in 1924 attracted considerable attention. sport.—the war did not have the same devastating effect on sport as it had in countries nearer the scene of hostilities. the traditional love of games, born of the sunny open air life, remained unchecked, and racing, cricket, football and lawn tennis suffered little as a 282 result of the war years. events particularly worthy of note are the victories of australia over england in the post-war series of test matches; the performances of the western australian race-horse eurythmic; the success of australian crews at ilenley for the first time and the consistently good showing of australian lawn tennis players in the davis cup contests. bibliography.—sir t. a. coghlan, labour and industry in australia (1918); j. t. sutcliffe, zhe history of trade unionism in australia (1921); h. b. higgins, a new province for law and order (1922); see also annual labour reports of the commonwealth. (m. l. $,) australian literature.—during the period 1910-25 occurred the death of two writers whose books have permanent value in australian literature. rolfe boldrewood (t. h. browne), who died 1915, wrote many popular novels, such as robbery under arms (1888), the squatter’s dream (1890) and the miner’s right (1890), all of which possess no small measure of literary charm. henry lawson, who died in sept. 1922, in his poems and short stories, described the life of the shearer, the small farmer and the swagman. his children of the bush (1910) was his culminating achievement as a story-writer. the book which attained the largest degree of public appre- ciation in australia during this period was c. j. dennis’s the sentimental bloke. written in slang, it was pervaded by warm humour, mingled with fine feeling. bernard o’dowd published the bush (1912), as well as an elaborate poetical rhapsody on venus-worship and a collected edition of his poems. mary gilmour’s the passionate heart (1918) and hound of the road (1922) contain mature examples of this poetess’ genuine art. j. b. o’hara published calypso and other poems (1912) and a collection of his best work as a writer of verse. a posthumous book by victor daley, wine and roses (1911), and the complete works of william gay (1911) should be noted. leon gellert’s songs of a campaign (1918) and the isle of the sun (ro1g) fully sustained this author’s poetic reputation. archibald t. strong published sonnets of empire (1915) and a volume of translations from theodore de banville (1913). bertram stevens’s golden treasury of australian verse (and edition, 1912) and walter murdoch’s oxford book of astra- lustian verse (1918) are good anthologies. the only critical works which call for mention, published within the period under review, are the peradventute (1912) of a. t. strong, a collection of essays, and t. g tucker’s critical edition of shakespeare’s sonnets (1924). kangaroo (1923), although written by an englishman, d. h. lawrence, was the most notable work of fiction dealing with australia during this period. the best of the humorous books of “ steele rudd” (arthur hoey davis)—on our selection and its several sequels—were reprinted in a uniform edition in 1913, and continued to command a well-merited popularity. among present writers of short stories none can compare with louis becke and henry lawson. mrs. a. gunn’s we of the netver- never (1912) was a vivid description of life in the interior of the continent, and c. a. bean’s two books, the dreadnought of the darling and on the wool track (1916) were pieces of descriptive realism of photographic fidelity. elsia masson’s an untamed territory (1915) was a charming account of life in the northern territory. r. l. jack’s northmost australia (1921) was the work of an eminent geologist, while baldwin spencer’s across australia (1912) was significant both as a description of travel and as the work of a noted anthropologist. the appeal of spencer’s native tribes of the northern territory of australia (1914) was more strictly scientific. biography and lhhistory.—in biography, walter murdoch’s alfred deakin, a sketch (1923) stands prominent. prof. ernest scott’s life of captain matthew flinders, r.n. (1914) and his life of laperouse (1912) also belong to the biographical section. miss s. macarthur onslow’s early records of the macarthurs of camden (1914) was chiefly a collection of family papers. among autobiographies sir george reid’s afy reminiscences (1917) proved somewhat disappointing, but must be regarded as of some importance historically. dr. j. m. creed’s dfy recollections of australia and elsewhere (1916) and bishop gilbert white’s tiirty years in tropical australia (1918) may australian literature also be mentioned; and two popular books were c. a. w. monckton’s some experiences of a new guinea magistrate (1921) and further reminiscences (1922). a series of well-illustrated art books appeared from the office of the attractive periodical art in australia. the most suc- cessful volumes were those devoted to the art of the painters hilder, arthur streeton, hans heysen and george lambert, a.r.a. two volumes by the sydney architect, hardy wilson, old colonial architecture in new south wales and tasmania and the old cowpastures road, were excellent achievements. a volume of the drawings of norman lindsay exhibited many phases of the craftsmanship of this accomplished artist. amongst historical works, b. r. wise’s the making of the australian commonwealth (1913) is a spirited and valuable record of memorable controversies and momentous decisions. h. g. turner’s first decade of the australian commonwealth (rg11) is a useful survey. marion phillips’s a colonial autoc- yacy deals fully with the governorship of macquarie in new south wales. james collicr’s the pustoral age in victoria (r911) is written from intimate personal knowledge. r. c. mills’s the colontsation of australia (1915) traces particularly the influence of edward gibbon wakefield. dr. j. s. battye’s history of western australia (1924) is a very solid work, based on ample documentary material. j. t. sutcliffe’s history of trades unionism in australia (1921) and m. willard’s history of the white australia policy (1923) deal with two highly impor- tant phases of historical politics. edward sweetman’s two works on the development of responsible government, in victoria and in australia generally, brought together a mass of informa- tion that had been overlooked by all previous writers. the history of state education in victoria by sweetman, long and smyth, was a good piece of work. s. h. roberts’s history of australian land settlement (1924) deals with a subject which is the very core of australian history. in g. arnold wood’s the discovery of australia (1922) many popular misconceptions were shattered. scott’s terre napoleon (1910) discussed the several french expeditions dispatched to australian waters during the 18th and early 19th centuries. ida lee (mrs. c. bruce marriott) added to her studies in australian maritime history by publishing the log books of the lady nelson (1915), bligh’s second voyage to the south sea (1920) and early ex- plorers in australia (1925). scott’s short history of australia (1916), fitchett’s the new world of the south (1913), t. dundabin’s the making of australasia (1922) and sir t. a. coghlan’s four volumes on labour and industry in australia (1918) were more general works on australian history. dr. maclaurinan’s post mortem, essays historical and medical (1922) attempted to diagnose the maladies of a number of historical characters. the historical records of australia, published by the library committee of the commonwealth parhament under the editorship of dr. frederick watson (1913, et seg.) are invaluable, but unfortunately it has been determined to cease publication. for a good presentation of the physical conditions of australia an extremely valuable book is griffith taylor’s geography of australia (1914). books on sociological topics include h. l. wilkinson’s hiseory of the trust movement in australia (1914) and state regulation of prices in australia (1917); c. a. bernays’ queensland politics during fifty years (1916); duncan hall’s the commonwealth of nations and the book of essays by various hands edited by meredith atkinson under the title avstralta: economic and political studies (1920). a new province for law and order by h. b. higgins (1922) was an important work on the theory and working of industrial tribunals. amongst miscellaneous books may be mentioned 14,000 miles through the air (1922) by sir ross smith and an australian bird book by dr. j. a. leach (1911 and later editions). : books on the war.—the official history of the part taken by australia in the world war, edited by c. a. bean, was planned to fill twelve volumes, one half of which had been issued by 1925. this history will form an adequate record of the achieve- ments of the australian armies and a worthy literary monu- austria, republic of ment to the brave men whose names are inscribed within the volumes. sir john monash, in the australian victories in france in 1918 (1920), gave a survey of the operations leading up to aug. 8 1918, and of the great day itself. the desert mounted corps by r. m. p. preston (1921) and australia in palestine by h. s. gullett and c. barrett were devoted chiefly to the work of the splendid cavalry force commanded by sir harry chauvel. a. d. ellis’s the story of the fifth australian division (1920), f. m. cutlack’s the australians in their final campaign (1918), r. bridges’s the immortal dawn (1915), and p. f. s. schuler’s axstralia in arms dealt with particular phases. a few works on australia by foreign writers should be added to this review. c. h. northcott’s australian social development (1918) and c. d. allin’s history of the tariff relations of the australian colonies (1918) were by american authors. two very interesting french books were sous fa croix du sud by p. wenz (1910) and l’ australie et la pacifique by g. m. crivelli and pierre louvet (1924). r. schachner in australien in politth, wirtschaft und kultur (2 vol., 1910-11} gave a german account of many aspects of australian life. from stockholm came g. anderson’s australien: natur och kultur (1912). for a brief but penetrating piece of political observation by a bri- ton there is nothing better than viscount bryce’s chapters on australia in his modern democracies (1921). (e. sc.) austria, republic of.—this state was formed in nov. 1918 from a portion of the austrian lands of the former austrian empire. its area is 32,352 sq.m.; and the population is 6,526,661. (see 2.970 and 3.2.) i, area and population the territory included in the republic consists of some of the poor- est and most mountainous areas of the former austrian empire. only about one-third is under cultivation; another third is covered with forest, and the remainder is largely mountainous, though well- suited in parts to grazing and dairy farming. the economic situa- tion is completely dominated by the existence of vienna, a highly organised coal. commercial and industrial centre containing nearly one-third of the total population of the republic in a com- paratively poor state, unable to produce, under present conditions, sufficient foodstuffs to meet the needs of its people, and cut off from its former markets and sources of supply. the following table shows the areas and populations of the provinces of the republic:— province population area (sq. m.) 1,863,783 1,478,697 873,702 222.731 9775350 370,432 313,699 139,968 1,586 286,299 32,452 6,526,661 defence.—the present austrian federal army (bundesheer) orig- inates from the “ people’s army ”’ (volkswehr) formed by the revolu- tionary govt. simultaneously with the disbanding of the remainder of the. old imperial army. the treaty of st. germain limited the strength of this army to 30,000 men and officers. at present this limit is not reached by the actual number; budgetary reasons work for a reduction of military expenses. the present force numbers 15,000 men and non-commissioned officers. the austrian army is formed by voluntary enlistment for a period of 12 years. all means of mobilisation are forbidden by laws the army consists of six brigades each of two infantry regiments, six squadrons of cavalry, six artillery and six technical units. there is no air force. the men and officers enjoy, during the time they serve, the full rights of citizenship. ii. constitutional and political history the revolultion.—nov. 12 1918, the day after which the last em- peror of the habsburg-lorraine line abdicated in vienna, is also the day from which the new austrian republic formally and legally dates its birth. on oct 21 the assembly of all the german members of the lower house (abgeordnetenhaus) of the former austrian parliament had already determined to declare the german-austrian portion of the austrian territories, formerly vienna : lower austria upper austria salzburg styria carinthia tirol. ; vorarlberg burgenland 107 7,462 4,628 2,763 6,327 3,684 4,790 1,005 283 under habsburg rule, an independent state, and had constituted itself the provisional national assembly. the constitution of the former monarchy afforded a legal foundation for this action, for it was based on the emperor charles’ manifesto of oct. 16 inviting the racial entities of the non-hungarian half of his empire to constitute national states within the framework of the empire. on oct. 30 the provisional national assembly assumed the supreme independent authority in those austrian territories claimed by it to be predominantly german, and appointed a state council as executive under the leadership of the three presidents of the assembly, who then nominated secretaries of state as heads of the administrative departments simultancously organised for german-austria. but the revolutionary movement, which broke out in vienna at this moment as a consequence of the general military break-down of the central powers, led to the declaration of an independent german-austrian republic on nov. 12. this declaration, which was in accordance with the right of self-determination, was the result of revolutionary action, and expressly repudiated any legal descent from the broken-up empire. the czechoslovak republic had already come into being on oct. 28. the law promulgated by the provisional na- tional assembly on nov. 12 1918 explicitly declared in its first article: “‘ german-austria is a democratic republic,” and in its second: ‘‘ german-austria is a component part of the german republic.” thus in the proclamation itself of the new state, there was adumbrated its cessation by a future treaty uniting it with the german reich. ten days later, in a special law, on nov. 22 1918, the national assembly defined its territory. in addition to the ancient hereditary austrian lands (crown lands), with the exception of districts in- habited by the yugoslav and italian races, this law claimed the inclusion in its territory of a large number of predominantly german districts in moravia and bohemia. simultaneously with the con- stitution of a german-austrian republic as a whole, administration was taken over in the separate provinces (the former crown lands), of which the republic was composed. the provincial diets, resolving themselves into provisional assemblies, carried out corresponding changes, the presidents being entrusted with the conduct of the provisional administration and the executive power in their prov- inces. thus the autonomous organisation and provincial self- government, established by the constitution of the austrian empire of feb. 26 1861, was perpetuated asa real popular self-government in the separate provinces, this time on a really democratic foundation. the history of the austrian republic as far as its foreign re- lations are concerned, can be divided into three parts: the period up to the passing of the treaty of st. germain, ratified on oct. 17 1919; the period ending with the conclusion of the geneva pact with the league of nations, oct. 4 1922; and the period regulated by that agreement. from the constitution of the republic to the peace treaty of st. germain.—the treaty of st. germain finally defined the frontiers and extent of the new republic. austria was obliged to renounce all claim to the districts occupied by the czechs in 1919, but inhabited by a german population. in the south, towards yugoslavia, the frontier in the klagenfurt district was drawn in accordance with the plebiscite (oct. 10 1920) ordered by the treaty; in southeast carinthia it was essen- tially according to the ancient frontier of that province. the treaty also laid down that the republic was in future not to bear its own chosen name, but that of austria. the principle already laid down in the treaty of versailles, that the austrian republic must preserve her independence, and that union with germany could only take place with the consent of the league of nations, was also laid down in the dictated peace of st. ger- main. but the treaty awarded a large part of the old german- settled territories in west hungary to austria; and hungary was obliged by the treaty of trianon to evacuate and transfer them. the execution of these decisions of the paris treaties was not complete until well on into the year 1921. burgenland.—the austrian occupation of the west hungarian territory called the burgenland by the austrian govt. met with violent opposition in hungary from public opinion and from the government. troops of free lances, organised under official pat- austria english miles 20 40 60 kilometres 0 20 40 60 provincial boundasres ecacereee ap wt, ‘ net, a p’schwaz ‘leltdin see yoansbruck - o li j j < ny ‘ uy e cy : swlandeck tt ye sy > ~ da, wpa ry a ~ lf) cia? 3 ronage, prevented by force of arms the entry into the country of the austrian officials and gendarmes to whom the occupation was en- trusted, and even threatened the austrian frontier. an appeal by austria to the conference of ambassadors led to long diplomatic conversations, which culminated in a conference at venice, oct. 20 1921, when italy, as seli-constituted arbitrator, forced austria! to accept a plebiscite in oedenburg (sopron), the capital of the territory in dispute. this procedure, imposed on austria in the interests of the magyars, led toa magyar majority, and the town of oedenburg and several communes were left to hungary. minor frontier rectt- fications in favour of czechoslovakia, in accordance with the peace treatics, were carricd out without incident (see burgenland). difficulties of the new state —the law of oct. 1 roto definitely and finally drew austria's frontiers in accordance with the treaty. the carrying into effect of the onerous and complicated terms of the treaty became the chief task of austria’s foreign policy, which was prevented from following any independent line by the weak economic condition of the country and the ever-increasing financial difficulties of the state. in the years 1919 and 1920, it was only with the help of credits from the united states, granted largely in kind, that it was possible to maintain the town popu- lation, which had been reduced to destitution by the world war and the effects of the blockade. the most important agencies in relieving this extreme misery and suffering were the american relief organised by mr. herbert hoover, which fed the children, and the work of the society of friends for the starving popula- tion of vienna and other towns. thus at that time the whole political life of the republic was absorbed in the efforts to assure the existence of the republic under the burdens imposed on it by the consequences of the war and by the civision of the great and ancient empire into independent economic and political units; in the fulfilment of austria’s obligations; and in the task of main- taining public order in the face of internal and external dangers. the chancellor, karl renner, who had been at the head of the govt. since the revolution, nevertheless succeeded in 1920 in establishing friendly relations with the czechoslovak republic. numerous problems arising out of the execution of the treaty were harmoniously solved in an agreement concluded with the prague govt. at brno (brinn) (june 7 1920) and a supplemen- tary agreement at karlovy vary (carlsbad) (aug. 23 1920). tne law of the constitution and internal policy the constituent assembly —the revolutionary decisions of nov. and dec. ror8 had provided for the summoning of a na- 1 the venice protocol, approved by the council of ambassadors, oct. 27 1921. aw “ ae £ y ms ou 7 : : eg pr | ab ie j drau s. austria, republic of i-a ] jy s my: 1 ae . an ed shi ; e tschts vu. sl! any ay g a ; \ i ge “yy *e r x2 silt nes l ats sic° ~t ; =~ ual tt ' bhi : se =! t re . ra ath 4) je a* i 2 7 . b “dat kh or rs uh \\ anu, meat ps koy sen. vill omy , > hitioma qo np tte! wee) tional constituent assembly, elected on the broadest demo- cratic franchise and by proportional representation, which met at vienna on march 4 1919. the result of the elections was again to divide political power between the three parties, which to- gether had carried through the revolution, but in considerably altered proportions. out of a total of 159 deputies, 69 belonged to the social democratic party, 63 to the christian socialists and 26 to the pan-germans, t.e., to the nationalists. in accord- ance with the two laws of march 14 1919, on the franchise and on the govt., the constituent assembly retained for the time being the provisional constitution of the republic of 1918, but introduced fundamental changes. the council of state (staats- rat) and its three presidents were abolished. from this date the ministry, consisting of the state chan- celfor, the vice-chancellor and the secretaries of state, was en- trusted with full executive and administrative powers, and was henceforward to be elected on nomination of the main committee of the national assembly, consisting of the president, two vice- presidents and eleven deputies. several former functions of the council of state were now transferred to the ministry; some of its prerogatives, such as the appointment of judges and higher officials, were, however, transferred to the president of the na- tional assembly acting in agreement with his vice-presidents. ife became the representative of the republic abroad and treaties must be ratified by him. he represented the supreme power in the republic, although with strictly limited functions. ‘the con- ‘stituent assembly, elected for two years, was to be in continuous session for this period. the most important alteration in the character of the parliament was the appointment of the main committee to form the permanent link between legislature and executive and to regulate the work of parliament. centralised or federal goverument.—it was evident in the early days of the austrian republic, that, as in imperial austria, the relation to the state of the historic provinces presented the great problem, indeed the problem of the political existence of the state. from the very beginning the idea of centralisation had been most strongly emphasised by the social democrat leaders. opposition in the provinces increased. in the laws of march 14 1919 certain provisions were therefore inserted to meet the case of conflicts between the decisions of the provincial as- semblies and the federal laws, the central authority being em- powered to challenge such decisions before the newly instituted constitutional court. austria, republic of dr. renner’s government.—the republic and its govt. still rested on the coalition of the three parties, which included the whole population. social democracy remained politically the strongest factor; on the reconstitution of the govt. which took place on march 15 1910, by election from the national assembly, almost all the important posts were filled by social democrats:— the ministries of the interior, of foreign affairs and of war. the first chancellor, dr. renner, presided over the new minis- try, and was appointed head of the peace delegation to paris. the social democratic party found its main support in the trade unions and party organisations, which in vienna and in all industrial districts included almost the whole of the working classes. the revolutionary feeling which had resulted from the downfall of the monarchy during the war was a strong auxiliary. part of the official class and of the lower middle class also sup- ported it. but on the other hand, the christian socialist party had succeeded in winning over not only all the agricultural class, but also the overwhelming majority of the upper and middle classes in vienna and the provincial towns. the social demo- crat leaders regarded the coalition, from which the first con- stitutional govt. was formed, as a union of workers and peasants, from which a complete democratic republic would emerge through the legislation to be passed by the national assembly. the party, uncer the leadership of dr. renner, pres- ident seitz and dr. otto bauer (foreign minister), was able to preserve its unity by successfully combating those activities of its own left wing, which had been inspired by the establishment of the bolshevist republic in russia and by the temporary suc- cess of bolshevism in hungary. they succeeded in subordinating party differences to party unity. . in the spring of 9190, when the soviet republic in hungary under bela kun was exercising increasing pressure on austrian social democracy, the situation became at times highly critical, but the policy and tactics of the social democrat leaders di- rected against bolshevism were successful in restraining the population of vienna. ‘thus there was never serious danger from the isolated attempts by the extremist elements to disturb by violence of any kind the quict development of austria’s republi- can democracy. these attempts were repressed by the armed police. in spite of the deep depression which the dictated peace caused in aus- tria, and in spite of the increasing difficulties of social and eco- nomic conditions, the coalition govt. succeeded in preserving public order uninterruptedly. the gradual cooling of revolu- tionary sentiment in the masses did not therefore lead to any change in social democratic policy, which was directed to the maintenance and development of the democratic republic, nor to any reactionary movement against democracy by the chris- tian socialists, who represented the conservative elements in the community. this relative stability, in a community ever more severely threatened from day to day, was further demon- strated by the united opposition from both the great parties in the country to the two attempts made by the ex-emperor charles, on march 13 and oct. 26 1921, to restore the dynasty by his re- turn to hungary. nevertheless the second coalition, formed on oct. 17 1919, with dr. renner at its head, was felt to be an un- desirable hindrance to normal political developments, while the agricultural and urban middle classes, led by the christian so- cialists, began to resist the predominance of socialistic ideas in government and administration. these tendencies emerged most clearly on the question of the new army organisation. the proportional government—the coalition was formally dissolved, and a so-called ‘‘ proportional ’’ govt. formed, that is an administration containing representatives of the parties in proportion to their numerical strength. this ministry was to settle the law of the constitution, which had not yet been adopted and to transact business until the elections, which were to take place at an early date. this procedure, which again showed the strong leaning of all austrian parties to friendly compromise, was successful. the new federal constitution, after long prep- aration, was completed on oct. 1 1920 in the last days of the constituent assembly. : | 285 dr. mayr’s minisiyy—tthe elections which followed (oct. 17) showed a loss of nearly 200,000 social democrat votes, and a corresponding increase of the christian socialist vote, and led to the formation (nov. 20) of the first ministry, in which social de- mocracy was not included, under chancellor dr. mayr. the new national council consisted of christian socialists, 82; so- cial democrats, 66; german nationalists, 20; peasants’ party, 6; workers’ party, 1. the german nationalists supported the majority in most political questions, but the two non-socialist parties formed no coalition. the new federal constitution had to solve the fundamental problem whether austria should be organised on a federal or a centralised basis. the provinces demanded the greatest possible extension of their administrative and financial independence, a claim strongly supported by the whole agricultural class and by a part of the urban middle class in the provincial capitals; but the majority of the german nationalists and christian socialists of vienna demanded the retention of the “ centralist ’’ consti- tution. the social democratic party directed its efforts to pre- serving a strong central administration so as to weaken as far as possible the political influence of the christian socialists on the provincial bodies. status of vienna.—the main point of the compromise eventu- ally reached was the principle of an eventual administrative re- form on federal lines, the execution of which was deferred for future legislation. one consideration which carried great weight was the significant change in soctal democrat policy, which had hitherto been in favour of centralisation. the party demanded, and received, the assurance that the city of vienna, containing little less than one-third of the total population of the state, in whose city council social democracy had had an overwhelming majority since 1919, should be legally severed from the province of lower austria, and be declared an independent province (bundesland). in accordance with this stipulation the city council is at the same time the provincial diet, and has all the legislative and administrative powers which the constitution gives to the provinces. it became a provincial government, and the burgomaster the governor of a province. this arrangement led the social democrats to lose much of their interest in oppos- ing a further thorough-going federalisation of the republic. the constitntion.—some minor modifications of the principle were conceded to the christian socialists. austria was given a special head of the state, the federal president, who is elected by the federal assembly for four years. this latter consists of the national as- sembly, henceforward called the national council, elected on the widest franchise for men and women, and of the newly created federal council, elected by the provincial diets, from the inhabi- tants of their provinces by proportional representation. the federal council has a certain share in legislation, as all legislative decisions of the national council, with the exception of the budget, are sub- mitted to it, and it may within eight weeks exercise its suspensive veto. in this case the national council need only pass the legis- lation concerned a second time, and the veto is annulled. the federal president's position is a purely ceremonial one. he concludes foreign treaties, formally appoints a large number of federal officials and army officers, and has the right to pardon, and to confer honours and distinctions. he has no real political power. all his orders have to be countersigned by the chancellor and by a member of the federal government. he is responsible for the constitutionality of his actions, and can be indicted before the constitutional court by a majority of the federal council. the president may only hold office for two successive periods. he may not practise any profession, but he is awarded a reasonable annual salary to meet the costs of official ceremonies and hospitality. dr. michael hainisch was elected the first federal president on dec. 8 1920 and was re-elected on dec. 9 1924. the federal ministry, presided over by the chancellor, is composed of ministers whose numbers are not fixed by the constitution, and to whom state secretaries may be added. their powers remain unaltered under the new constitution. the great questions of the allotment of taxes between the central government and the provinces, and of the federalist demand that the whole internal administration be transferred to the provincial government, received no practical solution. | austria’s serious economic poosition austria’s internal policy was, from this time onward, domi- nated by the threatening conditions of the country’s economic life, above all by the rapid depreciation of the austrian exchange 286 in consequence of the continuous inflation of the currency. the ever-growing deficit in the federal budget and the provincial revenue necessitated the continuous output of currency notes. at the same time the yield of the taxes disappeared, and the levy on capital of 1920 remained inoperative. these events em- barrassed the mayr govt. all the more as they had great pressure put upon them by the popular movement for union with the german reich. this movement was instigated by the provincial governments, which had been working against vienna since 19109, led by the tirol. they were strongly under the influence of bavaria, where the conservatives and nationalists had consoli- dated themselves. the govt. under pressure of french inter- vention opposed the movement when its strength was evidenced in plebiscites. in the spring of 1921, the chancellor in vain endeavoured to secure financial help in london; both there and in america all efforts were unsuccessful. industry had begun to revive in the end of 1920, and needed foreign credit and currency to pay for imports of raw materials; the financial administration had imme- diate and similar needs, and this situation caused a more rapid drop in the value of the austrian crown abroad. the schober ministry.—the christian socialist party thought it advisable under these circumstances not to continue to bear alone the burden of unpopularity and responsibility which the conduct of government must necessarily impose in such difficult circumstances. they decided to join with the german national- ists in electing a ministry of officials, with the respected police president of vienna, schober,! as chancellor (june 21 1921). this ministry also had to struggle with economic and financial difficulties. with the fall in the exchange the cost of living rose terribly, especially in vienna: between july 1 1920 and july 1 ig2i prices were doubled; between oct. 1921 and jan. 1922 they were trebled. this and the feverish attempts to secure foreign currency were the clearest indications of the threatened collapse of the exchange. another result was serious social un- rest, which on dec. 1 1921 led to a working-class demonstration accompanied by looting and shop-wrecking. chancellor schober and his finance minister, dr. giirtler, concentrated their efforts on avoiding financial ruin. a number of new taxes were imposed on the wealthy classes, and preparations were made to with- draw the state subsidies towards the cost of living, which weighed heavily on the treasury. understanding with czechoslovakia.—at the same time the govt. endeavoured to put austria’s foreign relations on a firm foundation. the unfortunate ex-emperor charles’ attempts at restoration had proved the success of the policy of co-operation between the succession states, a policy developed by dr. bene§, the chief minister of the czechoslovak republic. austria, it is true, did not join the “‘ little entente,”’ but chancellor schober and the federal president visited president masaryk, and schober subsequently concluded at lany (lana) a treaty (dec. 16 1921) with the govt. of the czechoslovak republic, in which both states pledged themselves to carry out the peace treaty loyally, to support each other against all revolutionary movements and to submit all disputes to a court of arbitration. czechoslovakia granted austria a credit of 500,000,000 czech crowns, and promised to support her applications for credit both in london and paris. this rapprochement with the czechoslovak republic encount- ered strong opposition from the pan-germans, who now refused their support to the government. their defection jed to the fall of the schober ministry at a time when the devaluation of the crown was proceeding at headlong speed. the urgent demand for foreign currency and securities rapidly exhausted an english loan, and a catastrophe in the exchange seemed imminent. under these circumstances, the schober ministry resigned (may 31 1922) and the leader of the christian socialist party, mon- signor seipel, put himself at the head of a coalition govt. based on an agreement between his party and the german nationalists (pan-germans). so for the first time a united anti-socialist front was avowedly formed. dr. seipel decided to treat austria’s 1john schober, born oct. 14 1874, was appointed, by the ljast imperial govt., police president of vienna (1918). austria, republic of economic and financial helplessness not merely as her own bur- den, but as a problem of european policy, and on his diplomatic journeys to prague, berlin and verona, he prepared the chief lines of his policy in dealing with the western powers, which aimed at long-date and adequate credits, with the help of which austria might be entirely restored. the success which attended his efforts is dealt with in the section on economic and financial history p. 287. political effects of geneva a greement—the geneva agreement for the reconstruction of austria dominated the whole internal situation of austria in the three years following its conclusion; in spite of the indubitably great success of dr. seipel’s policy it has not been popular; the dismissal or pensioning off of nearly 100,000 state employees severely affected the lot of many fam- ilies, and all the more harshly as the economic crisis made new occupations impossible in most cases. the most severely affected were the middle classes, whose sons were unable to find employment in the liberal professions any more than in the civil service. even the officials in employment and the thousands of pensioned officials and employees complained bitterly of their inadequate salaries and pensions. here again it was the higher officials and judges who were most severely hit, for uncer party pressure the new scale of salaries and retiring pensions was so arranged that they were fixed at pre-war level for the lower classes in the service, whereas the middle, and, above all, the higher ranks only received from 60 to 30% of the pre-war salary or pension, and even in these figures no account was taken of the diminished pur- chasing power of money. the working class on the other hand, sup- ported by its strong trade unions, was able from 1920 to 1923 not only to secure its pre-war wages, but in many cases, to raise them. this favourable position has been maintained, although in the past two years the results of the economic crisis and of unemployment, in which the figures of those receiving relief reached at times 160,000, reacted more and more on wages. the political results of these conditions were that social! democracy maintained the strength of its position; indeed its majority in the city council of vienna has considerably increased. in spite of the steady opposition of the socialist minority of the national council to the “ geneva policy,” dr. seipel main- tained his majority in the elections of 1923, which only made small alterations in the strength of the parties. when dr. seipel, whose health was affected by the results of an attempt on his life, resigned in nov. 1924, the coalition govt., newly formed under his influence, was able to continue quietly the conduct of the affairs of state dr. ramek’s ministry —the new ministry under the chan- cellor, dr. ramek, continued dr. seipel’s policy of scrupulous fulfilment of the geneva agreements, and it was also able in the session of 1925 to complete the constitution in agreement with the social democrats. the essence of the reform lay in a further strengthening of the federal principle of the constitution, as the administrative authorities, formerly under the state and con- trolled by federal state departments, were now attached to the provincial governments. the ramek ministry maintained and extended the financial reform of 1924 in favour of the provinces and communes. the chief question in austria’s internal policy in the latter half of 1925 was the speedy removal, promised in the june ses- sion of the league of nations council, of the control over the finances of the republic, exercised for the past three years by the finance committee of the league of nations and the commis- sioner-general. the essential point in question is whether it is possible to maintain a lasting balance of the budget, although income and expenditure have long been considerably higher than was originally contemplated by the council of the league. more- over the question of the gradual abolition of the restriction of rents act, which has been in force since the war and has, to- gether with the fall in the value of the crown, almost entirely destroyed the value of house property in favour of the tenant, was a burning question in dispute between the majority and minority in the national council. financial problems such as the demands of the civil service for higher salaries and pensions continued to form the chief pre-occupation of the government. party conflicts were of a mild nature and unaccompanied by social disturbance. the demand for union with the german reich was strongly supported by social democracy. (j. re.) austria, republic of social democrat policy.—the austrian social democrat party became the most powerful force in the country in 1918. in the first of the two coalition governments it was the predominating, in the second an equal, partner. it thus had nearly two years in which to put its views on government into practice, although always with great reservations owing to the coalition with the christian socia- lists, and the dependence of austria on foreign countries. these reservations made it impossible for it to carry through the large programme of nationalisation of factories, banks, mines and large estates, which it formulated in 1919. in fact it accomplished no expropriation at all. the old state military factories were taken over for peace production on socialised or semi-socialised lines. these experiments were based on the lessons of english guild socialism and russian bolshevism; the control was in the hands of a mixed body of the producers, the consumers and the state, the work- men receiving a share in the profits. in general, these concerns suffered from shortage of capital, and few survived long. ‘the workmen's council, elaborately organised parallel to parliament, pfoved efficient only in preventing an open breach with the left- wing extremists; the soldiers’ council succeeded in preventing a military reaction, if one was planned but broke down in the field. the first agrarian programme encountered the hostility of the farm- ers and the church, and was never fulfilled at all. the party there- fore returned to its old stronghold of the trade unions, which had expanded to embrace practically all manual and lower intellectual labour, fortified by a soldiers’ union in the army and a very com- plete system of works councils (betriebsrdte), its active experiments hh communal lines being confined to the powerful municipality of lenna. social legislation.—on the other hand the first ministry of social welfare under hainisch accomplished remarkable work in purely social legislation, including laws establishing the eight-hour day, insurance against accidents, extension of sickness insurance, state assistance for mothers and infants, a subsidy for children and numer- ous other measures for the protection of particular classes, especially children. social legislation in austria is now very complete, though no provision for old-age pensions has been made. the workmen are in a strong position and the conciliation boards have greatly reduced the number of strikes and lockouts. the new education laws aroused much opposition owing to their anti-clerical tendency. at the party conference of 1925, dr. otto bauer produced a new agrarian scheme based on the old austrian gemain or common land. its effect would be to establish a number of village communities of small-holding, dairy and cattle-farming proprietors, each largely dependent on his usufruct of the common land. afforestation, the common land and, to some extent, even the small-holding private property would be subjected to a large amount of state and com- munal control. cereals would become a state monopoly, the cheap credit required by the small holders being supplied by an extension of co-operative socicties and banks. (see land tenure.) bibliography.—h. kelsen, die verfassungsgesetze der republik deutsch-oesterreich, 5 teile (vienna, 1919-22); h. kelsen, oesterrez- chisches staatsrecht (tiibingen, 1923); o6¢esterretchisches jahrbuch (1919-25); wrener statistisches handbuch fir die republik oesterreich, 1-4 jahrgang (1920-5); otto bauer, die gsterreichische revolution (vienna, 1923); gustav stolper, deutsch-oesterreich als soztalund wirtschaftsproblem (munich, 1921); gustav stolper, deztsch- oesterreich; neue beitrege tiber seine wirischaftlichen verhdlinisse (leipzig, 1921); marcel dunan, z’autriche (paris, 1921); c macartney, the social revolution in austria (1926). (x,) iii. economic and financial history in order to follow the development of the economic and finan- cial history of austria, it is necessary to distinguish two periods. from 1919 to 1922 austria awaited salvation from without which it thought impossible from within; it was a period of discourage- ment and financial crisis, when many thought that only the steady provision of credits by foreign states, or union with ger- many, could help her. from 1922 to 1925 certain austrian poli- ticians showed real determination to re-organise the country, and, with the help of the league of nations, austria reformed her finances; at the same time she worked at economic recon- struction, a more difficult task, and one of lower achievement. the beginning of the crisis the day after the proclamation of the republic a first prelimi- nary budget had to be framed for the period nov. 1 1918—june 30 1919. in theory 41 % of the 3} milliards of normal expenditure was covered by taxation; but neither frontiers, territories, nor sources of revenue were clearly indicated. the finance minister tried to raise a loan, and demanded the payment of taxes (old and new) for the whole financial year before the middle of 1919; otherwise, he stated, resort would have to be made to the note printing presses, which would lead to the collapse ef the currency. 287 the austro-hungarian crown, which before the war was worth 1:05 fr., had fallen on the ziirich exchange to 37-75 centimes on nov. 11 1918 and to 18 centimes in june 191g. the districts which had formerly furnished cereals and coal to austria had been detached from the republic and had adopted a new money. the govt. therefore had to buy in foreign exchange and to im- port corn and fuel; but to assure the maintenance of order, it decided to furnish them to consumers at a very low price. the difficulties were accentuated by the necessity of employing the large number of german-speaking officials dismissed by the suc- cession states. the increase in expenditure and the fall in the exchange made it impossible to adhere to the estimates. the tax on capital had, in the spring of 1919, provided funds which en- abled the finance minister, dr. j. schumpeter, to reduce for some weeks the additions to the paper currency; yct the issue of paper moncy reached 9 milliards in aug. and 12 milliards at the end of the year. only 37% of estimated expenditure for 1919-20 (17 milliards) could, according to the budget, be covered by tax- ation. it was known that expenditure was increasing much more rapidly than revenue, and capital was exported on a large scale in anticipation of a period of inflation. the terms of the peace of st. germain, ratified in oct. ro19, further aggravated the situation; indeterminate financial obligations weighed down the new republic, and a first claim was established on all property to guarantee the payment of reparations. the crown fell to a value of 3 swiss centimes at the end of 19109. financial catastrophe—immediately after the armistice, foodstuffs were sent into austria by the allied governments, sup- plies being granted on credit. private relief centres, notably those of the american relief fund and the society of friends, were established in vienna. on march 1 rg19 a relief credit of $30,000,000, subsequently increased to $48,000,000, was granted to austria for the import of food. the credits were furnished in equal amounts by france, great britain and italy, certain spe- cific austrian public assets being assigned as security. the aus- trian govt., in may 1or9, made the repayment of these relief credits a prior charge on all its revenues. the austrian section of the reparations commission, sitting in vienna under the presidency of sir william goode, was concerned in 1920-1 with deciding what, if any, reparations could be paid by austria. the section decided that austria was not in a position to pay any reparations and suggested that a loan should be granted her to enable a definite scheme of reconstruction to be carried out. meantime the austrian budget for 1920-1 showed an esti- mated deficit of 41 milliard crowns at a time (june 1920) when the total circulation was only 17 milliards. the crown continued to depreciate. at the end of 1920 it was worth less than a swiss centime. the printing of notes continued, from 17 to 30 milliards and then to 175 milliards. at the end of 1921, 14 paper crowns were equivalent to one swiss centime. at first, speculators in other countries had refused to believe in the finality of such a collapse, and collected depreciated money in the hope of a rise, but austrians, on the contrary, lost all faith in the currency, and changed it as rapidly as possible for foreign securities or for goods. the policy of subsidising food made it possible to pay very low wages and to produce goods at prices below those of the world markets. this premium on exports only disappeared when pro- ducers learned, after cruel experience, not to confound real gains with differences in rates apparent at a time of depreciation. proposed international action.—at the london conference of the allies, feb. 21—march 14 1921, the austrian chancellor, dr. mayr, submitted a proposal for the application of the ter meulen scheme to austria, and great britain, france, italy and japan decided to suspend the mortgages which guaranteed their credits to austria. dr. mayr’s proposal was referred to the league of nations. the financial committee met at once, and sent to vienna (april 15 1921) a delegation consisting of m. j. avenol, sir drummond fraser and m. gliickstadt, whose recommendations were accepted by the league and forwarded (june 3) to the supreme council. but the suspension of all the mortgages encumbering austrian assets on account of repara- 288 tions and credits for reconstruction necessitated negotiations with 18 states. while they were proceeding, the situation be- came worse and the project fell through. the actual situation in austria went from bad to worse. once more the entente powers had to come to the help of aus- tria and consented to advance funds, partly for the formation of a new bank of issue. the british credit of £2,250,000 was used, however, in a vain attempt to support the crown for a few wecks. after it was exhausted the depreciation of the crown was accel- erated, accompanied by an immediate rise of prices. the long forescen collapse seemed inevitable. the feod subsidies, which accounted for half the deficit on the budget, had been suppressed in dec. rg21 and a budget with rev- enue to cover 60% of the 348 milliards expenditure had been drawn up for 1922; but the automatic adjustment which it had been necessary to enact between salaries and cost of living led to a rapid increase of expenditure, without any counterpart in in- creased revenue. ina few months all the estimates were exceeded; prices rose rapidly, and the public felt the burden of reforms more than their necessity. in aug. 1922 the circulation exceeded 1,000 milliard crowns, and 15,000 crowns were worth one gold crown (140 crowns were equivalent to one centime). on aug. 7, dr. seipel made a despairing appeal to the su- preme council, informing it that neither the present govt. nor any other could continue to administer the state. on aug. 15 1922 the austrian question was referred a second time for “ ex- amination and report ” to the league of nations, with an indi- cation of the possibility of a plan for making private credits avail- able for austria, providing such credits would not be wasted lke previous ones. the league of nations plan.—in sept. 1922, thanks to pre- paratory work and to the atmosphere of the assembly, of the council and of the committee for austria, presided over by lord balfour, invaluable support was obtained, and a plan for the purpose was elaborated. the reparations commission granted an exceptional mora- torium, suspended all claims for 20 years, renounced the pledges of its mortgage and announced a similar decision on the part of the states which provided the relief credits, and thus created a basis for credits. the financial committee of the league reported that, when all possible economies and reforms had been carried out by the austrian govt., a loan of £30,000,000 would be required to put austria on her feet. they estimated that the charges on the loan could be met, under strict administrative methods, from the proceeds of the customs and the tobacco mo- nopoly. they pointed out that the process of reconstruction en- tailed that austria “‘ must endure and support an authority which must endorse reforms entailing harder conditions than those at present prevailing, knowing that in this way alone can the state avoid an even worse fate.” a complete scheme of reconstruction was adopted on oct. 4 1922, agreed by great britain, france, italy, czechoslovakia and austria. it was embodied in three protocols, the first reaflirming austrian independence and sovereignty; the second stating the conditions of the loan, and the third laying down the functions of the commissioner-general of the league, charged with the ad- ministration of the scheme and the reciprocal obligations of the austrian government. a delegation of the council, presided over by m. albert janssen of the national bank of belgium, pro- ceeded on oct. 17 1922 to vienna, and remained there until the middle of dec. when the commissioner-general, dr. alfred zim- mermann, took over his duties. the geneva protocols put the govt. under the immediate obli- gation to take steps to reduce the deficit and to present to parlia- ment a bill conferring on it full powers to insure within two years the balancing of the budget. the delegation supported the govt., helped it to organise a bank of issue completely independent of the state and procure necessary financial resources by credit operations. it drew up a programme for budgeting by stages, fixing for each half year the maximum figure for expenditure, and estimated the receipts. the total charges on the state were to fall progressively from 672,000,000 gold crowns to 350,000,000 austria, republic of in the year 1925, so that the deficit to be covered amounted to 520,000,000 gold crowns. far-reaching reforms had to be carried out in order to conform with the plan: the provisional delegation and the govt. had agreed on a scheme of rcorganisation providing for the dismissal of 100,000 civil servants, the re-arrangement of departments, the putting of state undertakings on a sound basis, the increase of receipts, and the provision of financial resources for the provinces and communes. this programme was carried out from 1922 to £o25. the reconstruction loan inflation was stopped on nov. 18 1922, and the govt. aided by the confidence inspired by the new scheme was able to raise short-term loans to meet the immediate needs of the situation. the committee of control authorised the negotiation of short- term loans amounting to $10,600,000 in austria and £3,500,000 raised successfully abroad under the guarantce of the four guar- anteeing powers. on april 16 1923 the assent of the committee of control was given to the raising of the long-term loan, to run for 20 years, redeemable by june 1943. three trustees, m. albert janssen, m. wallenberg and mr. jay, were appointed to watch the in- terests of the bondholders. the guaranteeing powers were the four original guarantors, whose guarantee covered 94% of each franche, together with belgium, sweden, holland and denmark. the following are the details of the issue:— a total rate of | rate of market (nominal) interest, issue, ; per cent | per cent londen £14,000,000 6 80 new york . $25,000,000 7 go stockholm . 13,110,000 6 so swedish crowns amsterdam 3,000,000 gull, 6 80 brussels 25,000,000 belgian francs 6) 80 switzerland 25,000,000 6 80 swiss francs austria $13,000,000 . 93 paris 170,000,000 6) by }'rench francs rome . 200,000,000 lire 63 93 prague 60,000,000 gold crowns (no public! emission) the long-term loan yielded the austrian govt. 585,000,000 cold crowns, 7.e., the sums necessary for the repayment of the obligations incurred to the allied governments in 1922 and the repayment of the short-term loans plus new money amounting {o more than 326,000,000 gold crowns. to this sum should be added a further 20,000,000 gold crowns, lent directly to the aus- trian govt. by the swiss govt., and 26,000,000 gold crowns, the yield of the spanish guarantee. thus a total sum of 372,000,000 gold crowns of new money was available, sufficient to meet the needs of the austrian ‘treasury up to the end of 1924 under the programme of reform. the new national bank.—from jan. 2 1923 the new national bank of issue, with a capital of 30,000,000 gold crowns, began to func- tion independently of the state, under the presidency of dr. reisch. its cash balance in gold and securities of 93,000,000 gold crowns came in great part from the repatriation of austrian capital, which had been going on since the initiation of the scheme, the foreign securities held by austrian nationals being exchanged by them for crowns. the proceeds of the reconstruction loan and ihe specula- tive influx of capital from abroad, raised the cash balance in 1923 to oe. gold crowns, that is, to io times the value of the bank capital, the new currency.—the currency was stabilised at 14,400 paper crowns to one gold crown, this rate being strictly maintained, and the monetary reform of 1924 made the situation still more secure by establishing a new monetary unit, the schilling, on a gold basis, equal to 10,000 crowns, or 0-694 of the gold crown, 1.e., containing 0-2117 grammes of fine gold. execution of internal reforms.—the stipulations of the reform programme in other departments, without being rigorously followed, were carried out courageously. the dismissal of state officials and employees, which proceeded at first at the prescribed rate, became more difficult lager on; 25,000 employees had been aismissed between. austria, republic of oct. 1922 and jan. 1923, according to plan; at the beginning of july 1924 the figure reached 68,000 instead of 100,000. up to the close of 1925 the figures reached about 80,000. the high cost of pensions and increases of salary of the personnel employed have pre- vented the hoped for economies from materialising in full measure; nevertheless the administrative machine has been put on a much more economical footing. the re-arrangement of government <e- partments also disappointed expectations; in april 1923 the number of ministries was reduced from 11 to 7, but the saving effected by concentration and reduction of personnel was outweighed by in- creases of salary to those who remained. on the other hand, the re- organisation of state undertakings has effected great improvements. helped by the advice of forcign experts, the austrian administration has succeeded in making current receipts cover expenses, but owing to the neglect of capital outlay during the period of confusion, the financial needs are still great. the cutting down of expenses went well at first but grew more difficult later; real economies were effected and wasteful expenditure checked, but necessary expendi- ture on repairs to roads and buildings, and legitimate increases of salary, as well as the service of the new public debt, have counter- balanced the saving. budgets of 1023-5.—austrian experience has shown that it was useless to count on a great reduction of total expenses, but has proved how quickly revenue recovers when the currency is stabilised, and private incomes have adapted themselves to the change. from the moment that the crown was stabilised the fiscal system could work. the state levied direct taxes in the same currency in which the taxpayers received their incomes, and in the case of indirect taxation it profited by the increase in general prosperity and in consumption. thus the gross revenue from customs and tobacco pledged for the reconstruction loan was estimated at 100,000,000 gokl crowns a year; but the receipts for 1923 reached 190,000,000, those of 1924, 270,000,000 and those of 1925 are at the rate of more than 300,000,- 000. the total receipts from taxation have exceeded forecasts, showing that the austrian state can count permanently on receipts much above 350,000,000 gold crowns per annum. the council of the league of nations therefore authorised the austrian govt. in sept. 1924 to budget for a higher amount than that fixed originally. he figure of 495,000,000 plus 50,000,000 for capital expenditure, totalling 545,000,000 gold crowns, has been fixed for 1925. control will be abolished if these results are maintained, but during the following 10 years it may be re-introduced if the balancing of the budget or the service of the loan should be threatened. the com- mittee of guarantor states will continue to meet periodically until the loan is amortised in 1943. for three years the commissioner-general has fixed the preliminary monthly budget with the finance minister, fixing the figures of expenditure, approving estimated receipts and using the loan to cover the difference. a year after the adoption of the scheme, when the programme estimated a deficit of about 158,000,000 gold crowns per annum, a monthly surplus was recorded. in 1924 and 1925 the total deficit on the budget was less than productive capital expendi- ture shown by the accounts. thus a considerable sum remains over from the loan, and the method of its expenditure should be fixed when control will cease, as it seems not to be needed to cover current deficits, as had originally been planned. the economic problem the re-establishment of a firm financial situation convinced a growing number of austrians that the austrian state could catry on an autonomous existence, but hesitation and doubt reappeared with regard to economic conditions. toward the close of 1923, the adaptation of economic life seemed to take place even more rapidly than the budgetary improvement. thanks to a restoration of confidence there was a reversal in the movement of capital, which flowed into austria at the be- ginning of the reform as quickly as it had flowed out in previous years. the result was that austrian accounts balanced so easily that the difficulty of the economic problem was lost sight of. in spite of press campaigns the national bank remained faith- ful to the stabilisation policy inaugurated by dr. h. schwarz- wald; it absorbed at this time all surplus foreign exchange, buy- ing it from the public and putting it to reserve, without letting the crown appreciate. this policy was the wiser, as the casy balancing of accounts in 1923 was not permanent. some sources of revenue, such as the repatriation of capital invested abroad, would not recur; others, such as the influx of foreign capital for speculation on the bourse, were but temporary, and withdrawals would shortly exceed the original investments. this is exactly what happened. foreign capital, attracted to austria, did not permanently remain, although the country suffered from lack of capital as a result of the losses due to monetary depreciation. at the moment when the state realised that with its limited 2389 resources it must retrench, financial circles in austria did not at once realise that, in private business, unhealthy elements should be climinated. instead of reserving the exceptional credits at the disposal of the market for productive enterprises, the banks in 1923 were tempted too often to attract foreign capital to all business on the market, whatever its nature. the result was a general speculative rise, rather than an improvement in the con- ditions of production of promising business. industrial capital—when the inevitable decline took place in 1924 on the stock exchange, the foreigner having then with- drawn his capital, the lack of floating capital was sharply felt in the country. the national bank, in order to avoid a catastrophe, had to increase its discount business, at the same time that it supplied the foreign exchange necessary for external payments. the rise in the rate of discount, which it was obliged to adopt, stabilised the high rate of interest, to the detriment of production. this rise brought back short-term foreign capital to a certain extent, and thus enabled accounts to be balanced, but it fright- ened people abroad, who had been disposed to make long-term investments in austria, by its reaction on the income of business enterprises. productive business was left with insufficient float- ing capital. industrial capital was, in gold values, much less than before the war, for during the depreciation period all re- serves had depreciated or had been invested. in the first case they were non-existent; in the second, they had to be converted afresh into floating capital, which could only be done by realis- ing a part, that is, by investing a certain percentage of shares abroad. meanwhile, manufacturers had to pay enormous rates to pro- cure funds necessary for the payment of salaries and for raw materials (25 to 28% per annum to the beginning of 1925, then less); net costs and possibilities of sale abroad suffered accord- ingly, and the conditions of home production made a barrier to export more dangerous than any foreign customs barrier. under these circumstances, severe unemployment developed; 200,000 unemployed (about a fifth-of the working-class popula- tion) had to draw relief in the spring of 1925. building, metal and textile industries and trade were particularly affected, and the effort to reduce costs of production increased unemployment. owing to lack of outlets, emigration and intensified production were difficult. the layton-rist report——this was shown in the report pre- sented to the league of nations in sept. 1925 by mr. w. t. layton and prof. charles rist. they reported a slow but sure improvement in the economic situation from 1922 to 1925. austrian economy seemed to them to be suffering from the same evils as the rest of post-war europe, but more acutely. the increased customs tariffs and the difficulty of commercial rela- tions between states were especially prejudicial to a country like austria, separated by its new frontiers from its former normal markets. (p.o) trade and commerctal poltcy.—the outstanding feature of the post-war trade of austria is the large adverse visible balance which is shown in the table below. 1922 1923 sn ee ec eel (a) imports (b) exports 37,673,700 iexcess of (a) over (b) 33,172,300 the chief imports are fuel, raw materials, cereals and finished goods; exports are mainly iron and magnesite, timber and wooden manufactures, textiles, leather and leather goods, machinery and chemicals. tariffs and commercial treaties the commercial] policy of the republic is largely influenced by the situation in central europe. the austrian tariff is mainly designed to provide revenue and give protection to home industries; but it is also intended as a weapon for obtaining commercial concessions from other countries and, with this end in view, the duties on imports were increased in 1925. com- mercial treaties were concluded in 1924-5 with great britain, czechoslovakia, germany, france, the belgium-luxemburg customs union, spain, greece and norway. these treaties, negotiated by 7 3,219,000 | 80,091,500 [100,515,000 44,308,000 | 47,062,000 | 57,526,000 28,911,000 | 33,029,500 | 42,989,000 290 dr. r. schiiller, secured appreciable advantages, and the adverse visible balance of trade, which reached 686,000,000 schillings in the first half year of 1924, was only 333,000,000 in the corresponding period of 1925; 73° of imports were covered by sales abroad. ‘the big commercial deficit alarms the austrian public, which forgeis that many prosperous countries before the war paid with exports for a similarly small proportion of their imports (see balance of payments). if, in 1913, an economic zone comprising the regions forming post-war austria had been detached from the rest of the austro-ilungarian empire, it would have been seen that this region could be seli-suthcing; although it produced materially much less than it consumed, it bridged the gap by other means. the position of vienna.—vicnna was a great international busi- ness and financial centre, and, above all, was a reservoir for capital, which she could invest profitably and which returned with increased interest. vienna also attracted foreigners, and the profits from services that it rendered enabled it to pay for the products which came from other parts of the empire. to-day, the regions composing new austria remain organised materially as before the war, but monetary depreciation has destroyed a great part of the capital which assisted the provision of “‘ invisible exports.’” austria has become a country which temporarily needs capital, whilst retaining the structure of a country which invests capital, and consequently a debit commercial balance. it is to be hoped that a general diminution of protective tariffs will allow austrian exports to increase, but it would be foolish to expect the disappearance of the excess of imports in a country which has always imported more goods than it produced. it is normal for austria to have a large commercial debit balance, and it would not be possible to change that state of affairs, even by devoting many years to the formation of productive machinery in the centre of europe, already excessively industrialised. it is not normal for vienna to lack capital, because it has an organisation which has always successfully handled and directed it. the problem with which austria is confronted is to secure loans, and to make them yield more than they cost until she has been able, out of her national savings, to provide sufficient working capital of her own; economic stabilisation will then probably be attained by vienna again be- coming a european financial centre. production and industry during the years 1914-8, agriculture declined very considerably, and a disturbing feature in the new state is the slow recovery that is being made. the following table gives the yield in tons of the chief crops in 1913, 1919 and 1924:— ; iqig 139,171 229,503 83,207 197,132 §3,735 544,904 74,190 1924 237,662 497,331 158,921 331,902 91,856 1,524,996 365,214 4.117882 1913 289,939 604,057 179,443 465,804 78,266 1,508,320 403,621 355295450 wheat rye barley oats. | maize potatoes sugar beet 1321042 these figures refer to the areas included in the austrian republic, except that the figures for 1913 and 1gtg do not include the crops of the burgenland, which represent some 10% of the 1924 yields. cattle-raising and dairy-farming are suited to the climate and con- figuration of the republic, and are slowly tmproving. the following table gives the numbers of livestock in 1910 and 1923 :— horses: | cattle’ | sheep goats 318,217 | 2,356,012] 301,404 | 239,340 | 1,935,536 282,484 | 2,163,025 | 507,414 | 382,204 | 1,472,821 mineral deposits are of considerable importance: the chicf are iron, magnesite, salt and graphite. the industries of austria are well organised and equipped, and capable of producing a large surplus for export. the plentiful supplies of iron ore are more than sufficient for the needs of her important metal-working industry, and the forests ensure a constant supply of timber. the lack of coal hampers in- dustrial progress and has resulted in the exploitation of waterpower resources; it is estimated that the total waterpower capable of being harnessed amounts to some 3,500,000 horsepower. the textile, iron, metal-working, electrical, motor vehicle, woodworking and paper- making industries are the most important. owing, however, to the lack of working capital, the loss of pre-war markets and the post-war financial crisis, conditions in industry are very depressed and a con- siderable time must elapse before the pre-war prosperity can be regained. communications the railways of the republic have a total length, of over 4,000 m., and link up every part of the country with vienna, which 1s an im- portant station on the line from western to southeastern europe. the railways, over three-quarters of which are state owned, have been reorganised under expert commercial management, independent austria-hungary of the government. electrification is rapidly proceeding, and a programme for the electrification of the railways in the western area was laid down in the law of july 23 1920; the first part of this programme was practically completed by the middle of 1925. the river danube is of great importance, owing to the lack of seaports, as an artery of transport; its value to austria should greatly increase when the deep water rhine- main-danube canal, under construction, is completed. vienna has developed into an important centre for aerial services; it isa landing station on the paris-constantinople and prague-budapest air routes, and a terminus for lines running to munich and trieste. bibllography.—documents issued by the league of nations: a. the frnanctal reconstruction of austria (1) report of the financial committee, 1921; (2) 1923; (3) special supplement to monthly sum- mary, march 1923. b. the reconstruction of the austrian state ratiway (acworth-herold report, 1923). c. the restoration of austria (text of the geneva agrcement of oct. 4 1922). d. afonthly reports of the commissioner-general at vienna. fe. report to the counctl en the economie situation of austria (layton-rist report, 1925); o.s. philpotts, reperis on the industrial and commercial situation of austria (1920-5); l. stolper, deutsch-oesterreich (vienna, 1921); o. bauer, die oesterreichische revolution (vienna, 1923); f. eleitz, zahlungsbilanz und lebensfahigkeit ocesterreichs (vienna, 1925); c. a. macartney, the social revolution in austria (cambridge, 1926). austria-hungary (see 3.2), the name given to the dual monarchy of austria-hungary, dissolved in 1918. area, 264,062 sq. m.,; population, 51,352,429 (1910). with the annexation of bosnia and the hercegovina in oct. 1908, the austro-hungarian monarchy reached its final form. it consisted of two independent states, whose relations were governed by the compromise of 1867: the complex in the west which may be termed austria, consisting of numerous provinces (kronlander) with local diets, united by a central parliament; and the kingdom of hlungary, a unity affected only by the local independence, under a governor and a diet, enjoyed by croatia. the emperor-king, their common ruler, reserved the unity of control over foreign affairs, the armed forces and certain other matters, in which the people had a voice only in the delegations appointed for the purpose from the respective parliaments. the annexed provinces were to be ab- sorbed later in the dualist system, but no agreement could be reached on their destiny. for the moment they were administered by the common finance minister, assisted after 1910 by an elected diet which was autonomous in internal affairs. population.—the last census for the monarchy as a whole was that of 1910. it gave the total population as 51,352,429 (austria 28,567,898; hungary with transylvania 18,264,533; croatia and slavonia 2,621,954; bosnia and the hercegovina 1,898,044). no figures for nationality were then given; but figures for the habitual language (umgangsprache) were given, which must be taken with caution. apart from the dubious nature of magyar official statistics, jews are only reckoned separately in the annexed provinces, while they actually form no mean proportion of the german, magyar and polish speakers. austria puts serbo-croat under one heading, hungary distinguishes serbs and croats, but puts slovene under “other languages.”’ the approximate racial totals and distribution were: germans (in the territory of the present republic, the sudetic lands of bo- hemia, moravia and silesia, parts of west ilungary, transylvania and the banat) 12,050,000; czechs (bohemia and moravia) and slovaks (north ilungary) 8,500,000; poles (east silesia, west galicia) 5,070,000; ukrainians (east galicia, northeast ifungary) 4,000,000; slovenes (south styria, southeast carinthia, carniola, the coast- land) 1,390,000; serbs (southeast croatia, the annexed provinces, parts of the banat and backa in south ifungary) 2,675,000; croats (croatia, dalmatia, the annexed provinces) 3,000,000; italians and ladins (south tirol, trieste and district, some dalmatian towns) 800,000; rumanians (paris of transylvania and the banat), 3,250,- 000; magyars (central ifungary with szekler settlements in tran- svlvania) 10,200,000. the official figures were as shown on the next page. lhe balkan danger.—y¥rom the date of the annexation of bosnia and the hercegovina (oct. 1908), the differences which were dividing europe into two hostile camps centred ever more clearly round the contlict of interests between austria-hungary and serbia. with the turkish empire again on the brink of collapse, the balkans were the ficld in which any change, however trivial in itself, might develop into a trial of strength involving first germany and russia, then all europe. nationalist movements.—internal conditions in the monarchy made a pacific solution of this problem almost impossible. the extension of the franchise in austria (1907) had not had the de- sired result of allaying the nationalist agitation. the social democrats, austria’s one international party, emerged indeed from the first elections on the new basis as the strongest parlia- austria-hungary racial distribution in roro crete: bosnia rotia sod language austria | hungary and © fice: slavonia ovina german 9,950,678 | 1,903,357 | 134,078 22,968 bohemian, mora- vian and slovak | 6,435,532 | 1,946,357 21,163! 77,5272 polish. 4,965,667 sa - 10,975 ruthenian (ukrainian) . | 3,518,882 464,270 8,317 7,431 ben 1,253,148 ; (3) (3) 3,108 der ‘| 461,516 | 644,955 825,418 croat 783,010" 194,808 | 1,638,354 385,009° maho|mmedan slerbo-croat |s, 612,137 italian and ladin 768,592 ; oe 2,462 rumanian . 275,088 | 2,948,186 846 608 magyar 10,899 | 9,944,627 105,948 6,443 other languages ee 401, 4128 67,843" 13,958 slovak; czech is included in “ other languages.”' *czech and slovak. included in ‘‘other janguages.”’ ‘from religious figures one may deduce 110,000 serbs, 670,000 croats. ® figure arrived at by subtracting the figures for orthodox serbs and mahommedan serbo-croats from the total of serbo-croat language. § described by the magyar official statistics as “ principally wendisch (slovene), bunyewatisch, gipsy, czech- moravian, polish, bulgar and italian.” estimated figures for hungary with croatia and slavonia on the basis of the 1890 census, 115,000 slovenes; 200,000 gipsies. of the remaining contingents the largest are czech, polish and bulgarian. 7 includes 7,886 spanish jews; 5,419 gipsies. mentary party; but only to succumb themselves to disintegra- tion, the majority of the czech members splitting off into a separate and often hostile nationalist group. the chief gainers from the extended franchise were the more backward slav races particularly the ukrainians and slovenes. here the change deepened and complicated the nationalist movement, and brought its democratic character into increasing conflict with the ruling system. the neo-slav movement gained in strength, and its political character was increasingly evident and increas- ingly directed against the organisation of the monarchy. the central figure of the russophils in austria was kramar, leader of the young czech party. the young czechs, the polish national democrats, the pan- russian party among the ukrainians and the slovenes, who were now awakening to the sense of brotherhood with the other south- ern slav races, were in violent opposition to their government’s policy toward serbia and russia. the austrian slavs were now in close political connection with the slovaks, and still more with the southern slavs in hungary. the dynasty had long used the croats as a counter to the magyars, who in turn had played off the serbs of hungary and croatia against the croats. but since the resolution of fiume (1905) the political leaders of serbs and croats had united, at first to support the magyars against the dynasty; but when the magyars left their help unrewarded they allied themselves with serbia against vienna and budapest alike. the slavs of the monarchy could only have been appeased by a complete reorganisation, involving the abandonment of the dualist system and probably of the german alliance. they were strongly supported by the social democrats, who advo- cated the transformation of the monarchy into a “ second switzerland,” with complete liberty of development for all its nationalities. even had it been possible to carry this through peacefully in austria, it would have led to civil war in hungary, and probably to war with serbia. the military party, led by conrad von hitzendorf, the chief of the general staff, was pre- pared to face the latter risk; on several occasions conrad advo- cated annexing serbia bodily. the heir to the throne, francis ferdinand, was in close touch with the military party, although by no means always in agreement with their views. with time he had assumed practical control over the army, and it was thanks to his influence that the army reforms, which were ur- gently necessary, were taken in hand seriously from 1908 on- wards. but these reforms aroused almost universal opposition; among the slavs, who feared an aggressive policy against serbia, and still more among the magyars. francis ferdinand disliked 291 the magyars personally and politically, and it was known that his first act on accession to the throne—before his coronation in hwungary—would be to break the magyar supremacy, either by adopting a system of “ trialism ’’ which would elevate the south- ern slavs to the position of a third partnership in the monarchy or by some less drastic form of federalism. but while the pros- pect aroused the magyars’ fear and resentment, and was at the back of most of their agitation for a national army, the arch- duke’s ideas were too reactionary and clerical to awaken cor- responding hopes among the slavs. rule of the bureaucracy.—francis joseph was in any case too old to change. he clung tenaciously to the german alliance and the basic principle of the dualist system, the twin hegemony of germans and magvars. he had never really either understood or sympathised with the slav national movements, and as his slav subjects moved further from his ideas, and as constitu- tional government in austria became a real impossibility—the weary nationalist obstruction had made the proceedings of the reichsrat and the diets alike into a tragic farcc—he restored the real authority to the hands of the old bureaucracy, which in its higher branches was still mainly german and loyal; while political control was concentrated in the hands of the minister president alone. beck’s ministry, which had carried through the electoral reform, fell in 1908; both bienerth who succeeded him (nov. rg0o8—june rorr), and stiirgkh, austria’s last peace minister president, from nov. 1911 (gautsch’s ministry, june— oct. 1911, was only a temporary stop-gap) were absolutists at heart; and in march 1914 stiirgkh dismissed the austrian par- liament altogether. up till then, necessary government measures were forced through under paragraph 14 of the constitution, or the parties sold their votes for appointments in the bureaucracy —the logical reply to this policy, but one which would have had the effect, in a few years, of disintegrating the bureaucracy and even the army altogether. | hungarian dissensions—in hungary francis joseph had an ally in count tisza. the struggle in hungary, bitter as it had been, had been to some extent unreal. the magyar gentry and jewish financiers who monopolised the seats in the hunga- rian parliament and the political and economic influence in the country differed only on the degree of independence which it was safe to claim; their interests were homogeneous, and none of them could afford to face an electoral reform in favour of the poorer classes and the non-magyars. thus the monarch’s threat to introduce universal suffrage proved effective. the party of independence split. the old liberal party reorganised itself as the national party of work and entered parliament in june 1910, with a large majority. tisza, who became president of the hungarian parliament in 1912, and hungarian minister president in 1913, was convinced that the magyar nation could not afford to do without the backing from germany and austria afforded by the dualist system. he therefore carried the army measures 1n 1912 with a high hand against the party of inde- pendence. at the same time, he maintained the claims of his na- tion and his caste most ruthlessly. the electoral law of 1913, with which his name and that of lukacs were associated, and which became law but was never applied, was a reform only in name. in ror2 he crushed a workman’s demonstration in budapest with much bloodshed, and cuvaj, appointed under his influence in that year to be ban of croatia with the powers of a royal commissary, suspended the croat constitution, and surpassed all records of corrupt despotism; the memory of his rule was not wiped out by the milder period which succeeded it. the unity of the army had been saved and a temporary stability restored in hungary; but at the price of the final estrangement of the southern slavs of the monarchy and the passionate hatred of serbia, whom the magvar land-owners, intent on their economic interests, denied the most legitimate outlet for her aspirations. home and foreign policy thus moved in a vicious circle. the hegemony of the german and magyar upper classes alone en- abled the monarchy to show a strong face to the world and to reorganise the army. but it put a peaceful solution of the serb problem out of the question, while the discontent of the italian 292 and rumanian minorities in the monarchy aroused the hos- tility and ambition of italy and rumania, and endangered austria-hungary’s understandings with these countries. war loreseen.—from 1908 the war party was convinced that a conflict was inevitable. its members urged a drastic solution of the slav problem, and rapid reform in the army. conrad was in favour of annexing serbia in 1909, and in 1911 he advised a “‘ defensive war” against italy while she was engaged with turkey in tripoli. francis joseph, however, earnestly desired peace and believed that it could be maintained; partly, no doubt, because only the most optimistic reports were allowed to reach his ears. aehrenthal also wished and worked for peace, and with some success, once the storm after the annexation had been weakened. he therefore offered italy a free hand in tripoli in return for non-interference with austrian plans in the balkans. the allies were drawn together by the common desire to prevent serbia’s access to the adriatic, and united in their albanian policy; the triple alliance could therefore be renewed as early as dec. 1912. the balkan wars—the balkan wars (g.v.), however, put berchtold, who became foreign minister on achrenthal’s death (feb. 17 1912), in a most difficult position. an active pro- turkish policy was impossible in view of the feeling among the slav populations and the danger of a conflict with russia. austria-hungary remained a spectator, and carried her point as regards albania, so that serbia was still denied an outlet to the adriatic. but she could not prevent serbia from joining hands with montenegro across the sanjak of novi pazar, so that these two countries, while remaining her irreconcilable enemies, were now increased in strength. in the eastern balkans her prestige diminished. with rumania allied with serbia against bulgaria, to intervene in bulgaria’s favour meant disappointing rumania; not to intervene meant the loss of a potential ally against serbia. in fact, austria-hungary worked for a com- promise; disappointing bulgaria, whom her efforts could not save from dismemberment, and estranging rumania, who now showed a marked desire to join the russian camp, with, pre- sumably, designs on transylvania. there was a grave danger that all balkan states would reunite in a new balkan league under russian leadership against the monarchy. to prevent this, one secure ally was necessary, and austria-hungary urged that bulgaria was the most suitable, while germany believed that rumania should be made safe, even at the cost of sacrifices. the viennese policy prevailed. from march ro9r4 on, the chief aim of the central powers was to secure bulgaria as a firm ally. meanwhile, rumania grew more hostile, irredentism increased in italy and serbia’s hatred was unbounded. in june 1014 conrad drew up a memorandum describing conditions in the balkans as intolerable. rumania must state her attitude clearly, bulgaria be induced to sign a definite alliance. berchtold hoped to unite rumania, bulgaria, greece and turkey in a new balkan league against serbia. outbreak of war.—when the news of the murder of francis ferdinand at sarajevo on june 28 reached vienna, all those in authority, except tisza, considered the time had come for a reckoning with serbia, to whom, in spite of the negative report of the investigators, they ascribed the guilt of the murder. it was understood that germany would support her ally in a con- flict with serbia; and conrad reported that the military situa- tion, even in a world war, would be better now than later. on july 23 an ultimatum was despatched to serbia, containing conditions of which the rejection was inevitable. in fact, serbia accepted nearly all the conditions, but the die once cast, the advisers of the monarchy refused to draw back. they rejected all efforts of mediation, and declared war on serbia on july 28. within a week the world war had broken out; austria-hun- gary and germany were pitted against serbia, montenegro, russia, france, belgium and great britain, with her daughter states (see europe). the monarchy’s internal dissensions were little apparent on the outbreak of the war. among the troops, only the czechs were partly disaffected. the civilian opposition, both nationalist austria-hungary and democratic, declared for the govt. if without enthusiasm. in austria, the bureaucracy and military were already in charge, parliament having been suspended in march, and could carry through mobilisation, militarise the war industry and much of the administration and justice and establish a state of siege, without interference. this dictatorship continued in fact for nearly three years, during which censorship and courts-mar- tial solved the complications of internal politics. in hungary, tisza’s regime left the “‘ nationalities ’ and lower classes equally helpless; the magyar “ gentry,” however, still met in the hunga- rian parliament and thus, as the only vocal class in the mon- archy, acquired a dominating influence in its politics. the effects of the nationalist discontents were, however, immediately apparent in the foreign relations of the monarchy. although she could conclude alliances with turkey (aug. 5 1914) and bulgaria (sept. 6 1914), her two former allies, italy and rumania, not only admitted no casts foederis, but demanded territorial concessions as a price for their neutrality. burian, who succeeded berchtold on jan. 13 1915, at last consented to surrender some districts in austria—a step urgently advised by the german and austrian high commands—but was never able to concede what the entente offered. italy therefore concluded the treaty of london on april 26 1915, and declared war on may 23. rumania hesitated longer, but, as tisza passionately refused to yield an inch of soil in transylvania, rumania also declared war on aug. 27 1916. | the polish question.—meanwhile the fatal difficulties of the polish question had become acute. russia was driven out of ‘“‘ congress ” poland, warsaw falling on aug. 5 1916. the cen- tral powers administered the country provisionally by means of two provincial governments in warsaw and lublin respectively. but when russia refused to take the province back at the price of leaving the entente, neither ally would allow the other com- plete control over poland, and both were embarrassed by the ambiguous attitude of their own polish subjects. no settlement of the question could be reached. the poles of austria, germany and russia worked together very skilfully to get the best out of any possible situation, including the defeat of the central pow- ers. in the hope of securing polish soldiers, a proclamation on nov. 5 1916 promised the restoration of an independent poland as an hereditary constitutional monarchy. galicia was to re- ceive increased autonomy within austria. blockade of austria.—this proclamation was almost the last act of francis joseph, and the concession was sweetened by the news of the military success in rumania. but it was the begin- ning of the national concessions in austria, while hungary had already struck a blow at the unity of the monarchy. early in 1915, tisza had closed the hungarian frontier against the export of foodstuffs to austria. such small quantities as were later released were bought at the secret price of a further alteration of the “‘ quota ” in hungary’s favour. the blockade, the loss of supplies from hungary and galicia—ravaged in the first fighting —and the diminution of home production consequent on shortage of human and animal labour made the food situation in austria already desperate, especially in the towns; the country districts shut themselves off, held up supplies and ran up prices in defiance of the law. foreign nationalist committees —the czechs and southern slavs had established foreign committees in 1915, while the disaffection in their home provinces was growing rapidly. the latter were still hampered by mutual jealousies and by the com- mitments of the entente to italy. only a minority favoured the ** great serb ” solution proclaimed by the serb govt., the ma- jority inclining to a “‘ great croatia ” or a yugoslav union under the habsburgs. the czechs, too, worked still for autonomy within the monarchy. but their troops were by now quite unre- liable, and the protracted trial of the young czech leader kramaf proved how very widespread was this anti-austrian and this pro-russian feeling. while the dominant classes of the germans supported the dic- tatorship as indispensable and were even considering a new arrangement for the future austria under which the german austria-hungary hegemony should be established securely, war weariness and discontent were growing among the working classes. but they were too cowed and too lethargic to protest, until friedrich adler, the socialist leader—at the time a solitary figure—did this in startling fashion by shooting stiirgkh dead on oct. 21 1916, “‘ as a demonstration.” when francis joseph died (nov. 21), his successor charles, a young man of undoubted good intentions but mediocre ability, thus found a very difficult situation, which he hoped to solve by a change of regime. conrad von hetzendorf exchanged the post of chief of the staff for an army command, and there were other important military changes. count czernin became (dec. 22 1916) foreign minister and real head of the government. peace proposal of 1917.—the march revolution in russia gave a great impetus to the slav national movements and to the social democrat agitation, which was more perceptible as the military pressure on the population was now relaxed. charles and czernin saw the danger and worked hard for peace. the emperor opened up secret negotiations with the entente through prince sixtus of parma, and promised in a letter of march 24 1917 to support the “‘ just claims ” of france to alsace-lorraine. these negotiations broke down, however, as italy insisted on the full measure promised her in the treaty of london. czernin now turned to the germans and asked them to offer peace, renouncing alsace-lorraine for compensations in poland. this germany refused to do, although she would have taken poland, giving austria-iiungary compensations in the balkans. it became clear that germany would turn her armics on austria if she abandoned the alliance. czernin could not face this dan- ger and was obliged to continue the war, and even to consent to germany’s wish for unlimited submarine activity. meanwhile, an attempt was made to allay discontent at home. charles called on tisza to introduce electoral reform with sol- diers’ votes in hungary. ‘tisza resigned on may 22 1917 anda fresh hungarian cabinet was formed to carry through the re- form. a general amnesty (july 2 1917) was issued for political offences and the austrian parliament summoned on may 31 1917. nationalist claims.—but its first meeting showed how far pop- ular ideas had moved. the poles demanded an ‘‘ independent and united poland,” declaring that the polish question was one for international consideration; the czechs, that the monarchy be “transformed into a federal state of free and equal national states’; the slovenes, that all southern slavs of the monarchy be united into one independent democratic state under the habs- burgs; motions which involved the end of the dualist system. the austrian social democrats supported the claims of the slavs. adler’s trial (may 18-19 1917), during which he delivered an extraordinary indictment of prevailing methods, gave them cour- age and a programme. the poles were finally alienated a few months later. a separ- ate peace with the leaders of soviet russia was signed on march 3 1918 at brest-litovsk. during the negotiations a ukrainian delegation appeared, claiming autonomy. czernin signed (feb. 9) a separate peace with them by which he allowed the district of kholm to be included within the frontiers of the new ukraine, and austria’s ukrainian districts, east galicia and the buko- vina, to be formed into an autonomous crownland. these con- cessions infuriated the poles, who had acquired their inde- pendence from soviet russia. they turned their backs on aus- tria, and from now on were practically independent. meanwhile, the peace with the ukraine failed to achieve the hoped-for results. it had been dictated by the urgent need to replenish austria’s food stocks, but the armies of occupation could send few supplies into austria owing to the breakdown of communications, and their requisitionings turned the inhabitants into enemies. the shortage continued to be terrible. it had already led toa strike in jan. ror8 in the austrian and hungarian munitions dis- tricts, which almost amounted to a revolution, when the govt. had had to make terms with the workmen’s leaders. america’s entry into the war increased the hopes of the remain- ' count esterhazy formed a hungarian cabinet in june, and was followed two months later by wekcerle. 293 ing slavs, especially since the new regime! in hungary proved quite powerless in the face of the opposition of tisza’s party, and the position of the non-magyars grew no better. it was, however, impossible for the emperor to negotiate on the basis of the fourteen points in face of the attitude of germany, while the magyars would have answered any attempt to satisfy south- ern slay and czechoslovak wishes by breaking with austria and probably joining hands with germany against her. this fear kept austria true to the alliance, and temporarily restrained the nationalist and revolutionary movements while germany was rallying for her great military effort of 1918. at the same time, clemenceau’s revelation (april 1918) of the sixtus negotia- tions strained the alliance badly, and irreparably damaged the prestige of the dynasty among its german and magyar subjects. when the great german and austrian offensives had shot their bolt, the national movements revived. in the course of the sum- mer the entente recognised the czechs as a belligerent power, and all the slavs began to see that the break-up of austria would give them more than her continued existence. the slavs now based their calculations on a break-up, the austrian social democrats had adapted theirs in their party conference of oct. 1917, and the party in hungary which demanded com- plete independence with democratic reforms and immediate peace grew very strong. desertions at the front and mutinies in the hinterland grew rife; the fleet mutinied on a grand scale and hoisted the red fiag (feb. 1918). request for peace.—on sept. 15, the bulgarian front broke. the armistice of the zoth left hungary unprotected. the mag- yar regiments demanded to be sent home to guard their own frontiers. the govt. was distracted between the centrifugal de- mands of the slavs and the insistence of the magyars on hun- gary’s integrity. on oct. 1, the minister president of austria announced that austria was to be transformed into a “ federa- tion of free states.”” two days later, austria-hungary, with her allies, begged wilson for an armistice. meanwhile, the poles proclaimed their independence in warsaw on oct. 7, the ukrain- ians summoned their national council for the 19th, the czech govt. was formed in paris on the 14th. on the 16th, the emperor issued a manifesto promising that every nation should form a separate state. but the magvars had threatened separation unless a clause were inserted that the integrity of hungary should not be affected thereby; this stultified the whole procla- mation. meanwhile, the hungarian peace party had the coun- try behind it, and the slovaks, serbs and rumanians of hungary were at last able to voice their demands. the germans of aus- tria prepared to erect their own state, as the emperor’s mani- festo had sanctioned. viktor adler, speaking for the social demo- crat party, demanded that austria should become a federal state of the german reich; the other parties were still monarchist. break-up of the monarchy—on the 31st, president wilson replied that the complete satisfaction of the slavs was a condition of the armistice, which was now vital to austria, since a fresh italian offensive had commenced. first the magyar, then the other troops—the germans excepted—left the front for their own countries. the austrian fleet handed itself over to the croats. in the last days of oct., autonomous governments were formed in prague, laibach, sarajevo, trieste, cracow and lemberg, and a neutral govt. was set up in vienna to liqui- date the central administration. on oct. 27 the foreign min- ister accepted wilson’s conditions regarding the rights of the nationalities, ‘“‘ especially of the czechoslovaks and yugoslavs.” the dualist system was officially abandoned. on the 3oth a national hungarian govt. was formed in budapest; on the 31st tisza was assassinated. the provisional govt. in vienna de- clared the legislative power to rest with itself, the executive with a national council to be elected immediately. the socialists and german nationalists now demanded a republic. on nov. 2 the emperor accepted italy’s conditions for an armistice. the austrians ceased hostilities on the 3rd, the italians on the 4th. on the rith, the emperor renounced his share in the conduct of government; on the 12th, the german-austrian republic was proclaimed last of the succession states (sce also europe). 294 brstiocrapny.—f, adler, vor dem ausnahmegericht (vienna, 1919); auffenberg-komarow, aus oesterreichs llehe und niedergang (1921); o. bauer, die oesterreichische revolution (vienna, 1923), english translation (london, 1925); s. briigel, geschichte der oester- reichischen sozialdemokratie, 4 and 5; r. charmatz, oe¢esterreichs dussere und innere politik, 1895-1914 (leipzig and berlin, 1918); f. conrad, aus meiner dienstseit, 1-5 various; denkschrift tiber die von der k.u.k. regierung aus anlass des krieges getroffenen mass- nahmen (austrian official publication), 5 parts (1915-8); hi. friedjung, das zeitalter des imperialismus, vols. 2 and 3 (berlin, 1922); rk. goos, das wiener kabinett und die entstehung des welt- krieges (vienna, 1919); karolyi, gegen eine ganse welt (1923); kirch- nawe, der zusammenbruch der oesterreichischen-ungarischen wehr- macht im herbste 1918 (1920); i. wleinwiichter, der untergang der oesterreich-ungarischen monarchie 1919 (1920); c. a. macartney, the social revolution in austria (1926); neue oesterreichische biblio- graphie, vol. 1 (articles on francis joseph, k6rber, tisza, lam- masch) (1923), vol. 2 (1925); meisser, politische chrontk der oester- reichungarischen monarchie (1910-8); margutti, wont alten kaiser (1920); a. f. pribram, austrian foreign policy 1908-18 ({.ondon, 1923); j. reclich, oesterreichische regierung und verwaltung im weltkriege (vienna, 1925); th. sosnosky, die politik im iabsburger- reiche, 2 vol. (berlin, 1912, 1913); szilassy, der untergang der donaumonarchie (1921); s. tisza, ossres munka i, 2 vol. (1925); wieser, oesterreichs ende (1919). seealso europe; czechoslovakia} yugoslavia; etc. (cas ats) austrian literature.—the hterature of austria is so closely connected with that of germany that in order to get a correct perspective of the subject during the years between 1010 and 1926 one must bear in mind the chief phases through which german literature has passed in the same period. these may be described as (1) naturalism, not the uncompromising aggressive- ness of holz and schlaf, but of a mitigated and domesticated species; (2) neo-romanticism, which from about 1910 was also made to suit the average public; and finally (3) expressionism, a movement that is opposed to, and yet is linked up with its predecessors. although austrian literature has passed through the same stages, it has preserved its own specific and unmistakable char- acteristics, due before the world war to the peculiar position of the alpine and sudetic germans within the habsburg monarchy, and their close, albeit hostile relations, to so many other nations; due after the war to the revolution and other crises. but many distinctive traits of austrian literature must be explained from causes common to pre-war and post-war conditions: from the history of the country as an autonomous body politic, geo- graphical features, its roman catholicism and its various local traditions. especially the temperament and mentality of the people of vienna, which is, and always has been, a literary centre, have modified to a certain extent the austrian development of german tendencies in general. the viennese have a vivid per- ception of beauty as well as of sentiment and of fun; they love music, nature and everything spectacular; they are endowed with a subtle taste in art. on the other hand they take life as easily as possible, by avoiding everything unpleasant. they dislike extremes, are always glad to compromise, and usually take little interest in metaphysical phenomena and problems. since 1914 this mentality has undergone a slight change, but it will be found faithfully expressed in a great part of pre-war and post-war austrian literature. three periods.—there are three distinct periods in modern austrian literature. in the first period are to be found those authors (best known abroad), who in the ’8o0s and ’gos laid the foundations of the austrian ‘“* moderne” on the basis of realistic or neo-romantic principles. these men by now have either com- pleted their life-work or at least are not likely to reveal any new features, although their former leader, hermann bahr, is a per- fect proteus in versatility. there are secondly, those wriiers who between 1900 and the world war, represented various as- pects or combinations of realism and romanticism; and lastly, the authors of the war and post-war period: most of them, but not all, intluenced by expressionism. this division is by no means arbitrary and, if applied without pedantry, it gives an adequate survey of modern austrian literature. these three groups are easily distinguishable, if we turn to the field of lyrical poetry. the leadership among the “ old moderns,”’ must be awarded to iiugo hoimannsthal. he is pre-eminent in austrian literature the school originated by the rhinelander stefan george in oppo- sition to the crude naturalism of the early ’90s. his style may best be conceived by thinking of him as a reincarnation of swin- burne, to whom he is deeply indebted. there is the same exu- berance of language, the same gorgeous imagery, the same quest for subtle beauty and the same interest in complicated or ab- normal psychical phenomena; hofmannsthal’s personal charac- teristic being an elegant weariness, an aristocratic aloofness from everyday matters. the next group consists of lyric poets, more or less under the influence of ilofmannsthal: wladimir hartlieb, hans miil- ler, alfred griinewald, stefan zweig, otto hauser, felix braun, paul wertheimer, max mell and the passionate anton wildgans. but the third group follows the banner of expressionism, and is characterised by a conscious, nay deliberate disregard of the laws of logic and of metre, and an all-embracing love of the universe and of mankind as a part of it, reminiscent of walt whitman and the french unanimists. albert ehrenstein, franz werfel, georg trakl (d. 1914), karl schossleitner, friedrich schrey- vogl, the painter uriel birnbaum may be mentioned here; and there is a certain affinity in matter and thought between their poems and those of the powerful satirist, karl kraus, and of the labour poct, alfons petzold (d. 1923), although in age both belong to an earlier period, as well as peter altenberg (d. 1919), equally original in life and art, whose short ‘‘ prose poems ” sometimes possess an irresistible charm and a childlike wisdom. independent of these groups are richard kralik, karl f. ginzkey, richard schaukal, the religious poetess enrica handel- mazzetti, erika spann-rheinsch, the tyrolese poets arthur walipach, karl dallago, heinrich schullern, all belonging to the school of the old romantics rather than to the new. narrative literature ——in narrative literature also the ‘‘ mod- erns ”’ of the ’gos hold their own with their younger competitors, and in some cases are ahead of them. in the forefront are arthur schnitzler and jacob wassermann, the latter an immigrant from the german reich. both have mastered the technique of fiction, and have never quite lost touch with naturalism. both deal especially with the present day and the lifeof great cities, schnitz- _ ler devoting himself chiefly to personal problems, wassermann, with no common imaginative power, to social questions too. among schnitzler’s rivals may be mentioned: bahr, the founder of the austrian “‘ moderne ”’, raoul auernheimer, felix salten, hans miller, paul zifferer, robert musil and among the younger generation, ernst lothar; while otto stoessl’s measured and thoughtful style is somewhat reminiscent of wassermann. the next group which appeared about 1908 adopted an atti- tude of tacit opposition to the schnitzler school; the scenes of their novels are laid for the most part, not in vienna, but in the provinces, and the leader of this “ kailyard ”? movement is the styrian, rudolf hans bartsch, an emotional writer with a fervid imagination and a florid, sometimes ecstatic style, a master in the word painting of landscapes. he had numerous followers, who shared his power of giving speech to nature, and his sym- pathy with the life of the countryside and the provinces. these were ginzkey, karl h. strobl, franz nabl, robert hohlbaum, josef f. perkonig, ilans sterneder, hans hammerstein—and again a separate group of tyrolese: hans hoffensthal (d. 1915), dallago, schullern, albert trentini. the historical fiction of austria, after having been severely boycotted by ‘“ thoroughgoing ” naturalism, received a fresh impetus before the war from the philosophic writers, josef popper-lynkeus, erwin g. kolbenbeyer, emil lucka, all excelling in technique, vividness of style and depth of thought. it was also influenced by the devout handel-mazzetti and the learned otto hauser—and in their wake alma j. koenig, her- mann graedener, braun and egmont colerus have followed. hohlbaum, endowed with a great wealth of invention, wrote suc- cessful novels giving, lf considered as a series, the development of the german “ geist.”” the last generation of novelists, the writers of the war and post-war period, are characterised by weary resignation, by passionate negation or assertion of the life force. spiritualism, occultism and religion have become fashionable autogiro—automatic machinery again, and find expression in novels of terror and in wellsian utopias. otto soyka, franz spunda, paul busson, (d. 1924) franz rebiczek and rudolf j. kreutz, a no-more-war novelist, may all be included in this category. the eminent prose work of kraus, begun as early as 1899, stands apart from the mainstream. drama.—in the drama of the period under revision the modi- fied naturalism of the schnitzler school and the new romantic or neo-baroque style of ifofmannsthal have held their own, but the leadership is undoubtedly with the tyrolesc, karl schenherr. society comedy with its graceful discussion of erotic problems continues to be cultivated in the schnitzler manner, by bahr, salten, wertheimer, auernheimer, the shaw apostle siegfried trebitsch and kurt frieberger; and, quite recently, by hof- mannsthal, too. on the other hand, mell and georg terramare attempted to revive the mediaeval morality play, suggested by hofmannsthal’s arrangement of everyman in 1912. otherwise the neo-romantic drama shows only a poor harvest (richard beer-hofmann, braun, zweig). next to schenherr’s super- realistic plays are to be mentioned the dramas of wildgans, whose style indicates clearly the transition from unrelentingly cruel naturalism to ecstatic expressionism. this reaction directed against the mere exact rendering of visual and acoustic phenom- ena as well as against the academic and somewhat anaemic ideals of the neo-romantics, was begun in the pre-war empire and eagerly followed in post-war austria: it restored and enhanced the poet’s ego and liberated the drama from all the conventions hitherto determining form and subject. the young dramatists arnolt bronnen, franz th. csokor, oskar m. fontana, hans kaltneker (d. r919), walter eidlitz, otto marbach and richard billinger are all followers of this school, but werfel has shown the greatest creative power among his contemporaries. hans miller has tried his hand in diverse stvles. the vienna burgtheater, which formerly gave the lead to theatrical and, in some degree, to dramatic art in germany, had already been deprived of its hegemony before 1900, and now has a dangerous rival in max reinhardt’s theater in der josefstadt. the annual summer festivals in salzburg are also due to rein- hardt’s initiative. | see h. naumann, denische dichtung der gegenwart 1885-1924 (1924); chr. touaillon, in oesterreich in wort und bild, edited by c., brockhausen (1925); j. bab, in das deutsche drama, edited by r. f. arnold (1925). (r. f. a.) autogiro: see airscrew. automatic machinery.—tthe greatest single advance that has been recently made in the evolution of machine tools has been that of movements which are effected without requiring the direct interposition of the attendant. speeding-uip.—with the rapid growth of automatic move- ments, general speeding up has become increasingly necessary in order that inoperative intervals shall not check the rapid sequences of tooling. a notable result has been the growth of time studies, and the functions of the route men in the shops. this also has been vastly quickened by the general substitution of tools of high speed steels for those of carbon steels, the increase in speed being approximately three to one. a consequence is that it now becomes increasingly difficult to prevent the time spent in fixing up work from lagging behind that occupied in actual tooling. a solution 1s reached partly by the use of fixtures to receive the work, partly by continuous methods of tooling on rotating tables, and by modifications in the details of machines, included in the vast subject of machine design. the advances that have been made in automatic movements may be broadly classified under three heads—the supply and feeding of the work blanks, the details of tooling, and the multi- plication of the tool-holding and of the work-holding equipments. nearly all recent machine tools have been intluenced by these changes in some degree. the great compelling influence that has galvanised these swift developments has been the procdluction of component parts in large quantities, the adoption of which is now impcrative in all highly competitive manufacture. the output is vastly larger now from a modern machine than from its very recent predecessor of less than ten years since. and equally essential! and remarkable is the fact 295 that all the parts produced in almost incredibly short periods will interchange without corrections. ‘these results, impossible of attain- ment in the older practice, are conmonplace facts in the new de- signs and conditions. (see mass production.) work blanks.—the feeding of the work blanks is the first stage in an automatic scheme. it occurs in two forms—one em- bracing pieces of small diameter that are not rotated on centre points as in a common lathe, but which are fed through the hol- low spindle of a headstock and gripped during the tooling with some form of collet chuck at the front; and the other, that of articles too large in diameter to be passed through the spindle, but which are inserted and chucked from the front. in each, intervention on the part of the attendant is frequently dispensed with. in the first, a self-acting toggle mechanism at the tail of the head-stock grips the hinder end of the stock bar and feeds it forward through the spindle immediately a piece has been tooled and severed, and the same movement grips the front end in the spindle by the automatic closing of the collet chuck, when the tooling of the succeeding piece commences. the duty of the attendant is limited to the insertion of a new bar as often as the previous one has been used up. in the second case, that of articles too large to pass through the hole in the spindle, limited usually to about 4 in., a chuck & screwed to the nose of the spindle. when the volume and the shape of the arti- cles permit, these also are fed automatically by sliding them by gravity down a chute, with a few exceptions the attendant has then to place the work in the chuck. but this is never the older form with gripping screws that are tightened individually on the work. in the greater number of instances this is an “‘ adapter,” designed precisely for the shape of the work, and closed instan- taneously with the same mechanism that operates the smaller collet chucks used for bar work. a variant on this, the use of which is increasing, is the pneumatic chuck opened and closed with compressed air, all trouble with screw adjustments being eliminated. and where a large volume of repetitive work is in hand, the chucks are designed for that alone, or a standard chuck is adapted by fitting false jaws in iron or steel to suit it. grinding.—in the latest method of grinding, the articles are ncither mounted between centres, nor fed by the movement of a table, nor is the grinding wheel traversed. the time commonly occupied in drilling centres and in chucking between head and tailstocks is wholly saved, with the result that grinding is accom- plished in about one-third of the time that is occupied in the ordinary machines. and being centreless, the allowances left for grinding can be smaller. the rotation and feeding of the work longitudinally are ef- fected with one wheel, the grinding is done with another, the peripheries of the two facing each other, and revolving in oppo- site directions. the pieces, which are usually short, are brought through a chute to the whecls, and discharged into a box when finished, so that the cycle of movements is wholly automatic. the principle is simple. the controlling wheel rotates at the relatively slow speed at which work is run, and being in close contact with it, drives it frictionally at the same speed, while the wheel that grinds and is opposed to it, and driven indepen- dently, running at the peripheral speed of grinding wheels, from 5,000 to 6,000 ft. surface speed per minute, removes material. the exact amount ground off is controlled by the micrometric radial settings of the two wheels, which also effects the settings for pieces of different diameters within the range of capacity of the machine. the automatic feeding is eflected by the inclination of the axis of the controlling wheel in rclation to the axis of the grind- ing wheel. if the axes were parallel, the work would be merely rotated, but the angular disposition combined with rotation compels the work to move endwise. the rate of feed is deter- mined by the amount of angularity given to the controlling wheel, the range of which is from o to 6 degrees. only in one machine is the feed imparted by giving the angularity to the rest that supports the work between the wheels. ‘these machines work to best advantage on short picces of moderate diameter, not exceeding about 12 in. long by 4 in. diameter, but this 296 embraces a vast quantity of spindle stud and pin work. the same machines will shoulder small pieces, in which case the longitud- inal feed is not used, but only a radial movement. tooling.—the details of tooling and of tool equipments are much more highly elaborated than they have been. this work is now allotted to specialists, the tool setters, in the tool room. arrangements may be very simple, or extensively elaborated. but always the cost of tool making has to be correlated to that of production, the controlling factor of which is the number of pieces to be tooled. if these total to many thousands, the cost of the tool equipment divided among them is negligible. the same relation holds in elaborated work—holding fixtures, and tool-controlling jigs, which now fill so large a place in manufac- ture. cost is only relative, the essential being the rapid and uniform production of very large quantities. an immense num- ber of small articles that involve several separate tooling cuts— turning, drilling, boring, threading, within fine limits—are pro- duced in periods that are measured by one or two minutes, and at a cost of a fraction of a penny. these are triumphs of the tool designer, associated with the automatic arrangements of the ’ machines. all advanced tool arrangements now are based on the principle of “multiple cutting? that is, several tools, or tool edges, or points, operate either at the same time, or in very rapid succession. the most familiar example of this kind is the older one afforded by the screw machines and turret lathes, with their polygonal turrets, cach carrying its tool or set of tools, on the several faces, and the cross- or cut-off slide with tools supported both at front and rear. after the various tools have been set up, their action ts wholly automatic under the operation of cams and stops. some turret faces may be occupied with simple turning tools, or drills, or taps or dies, but others carry veritable batteries of tools, that perform several dis- tinct operations, or turn several diameters. turning.—invention has taken a more specialised direction, to deal with a large volume of work for which turning and facing alone are employed, and for which the extensive elaboration of the turret lathes would not be economical. for this, the turning- machines built broadly on the lathe model are designed. in these, the work is carried between the centres of head and tail- stock, and is turned with batteries of tools clamped to rests sup- ported at front and rear of the lathe bed. the possibilities of so simple a scheme are immense. within the limits imposed, they far exceed those which the turret lathe affords. details differ widely in various machines, but the feature common to all is that a large number of simple tools, not forged, but severed from plain rectangular bar and suitably ground, are carried rigidly in holders clamped down to the tool base, and fed automatically, those at the front in a longitudinal direction, those at the rear radially inwards for shouldering. by the aid of suitable forms, tapered or curved outlines can be produced as readily as parallel pieces. as many as ten or a dozen separate tools can be mounted on a single bar, each having minute radial adjustments with a screw. in addition to the multiplication of tools, there is a feature which increases econotny. in many shafts and spindles having several diameters and shoulders, one portion is often much longer than others. then the tools are set so that the time oc- cupied in cutting this length determines the periods of all the other cuts, so that when the maximum length has been turned all the others are completed. the economy is often carried far- ther. if one length is very much in excess of the others, two tools are apportioned to deal with that, in tandem, the hinder finish- ing where the leading one had commenced. the work of the automatic turning machines is usually limited to pieces that are carried between centres, or, which having been bored elsewhere, are mounted on arbors supported between centres. if this should appear a limited range of functions, it is not so, remem- bering the immense numbers of short shafts, spindles, shouldered and flanged elements that enter into motor work, and into the gear cases common now on nearly all machine tools, lengths of pieces are gencrally limited to about 20 in., and diameters are moderate. but within these limits, given a constant product, they are more econom- ical than any other lathe or turret machine. in some modifications, lengths are extended to take motor crank shafts, and cam shafts, with corresponding increases in the numbers of tools. automatic machines—averescu work holders —the multiplication of work holders, and of corresponding tool-holding equipments, is an equally stnking development. if the turret lathe with a single work spindle has lost ground before the invasion of new machines in one direction, the principle has made headway in others. given a very large product, the greatest demands for which are now made by the builders of motor vehicles, the single spindle automatic lathe is being surely displaced by lathes that have from three to five work-hokling spindles all having their bearings tn a rotating head which is locked at each station while all the pieces in all the spindles are being subjected to simultaneous tooling opera- tions from tools mounted on bars aligned with the spindles, and the numbers of which correspond with those of the work-holding spindles. during a single revolution of the head, an article will be completed, or if it is of a simple character, two may be pro- duced. all the movements are automatic. the multiple spindle automatics fall under two groups, those for bar work, and those for chuck work—the same division that exists in the single spindle automatics and turret lathes. in the first the stock bars are fed through the hollow spindles with tog- gles, and gripped during the tooling. in the second the work is chucked from the front by an attendant stationed there. the chucks used have jaws suited to the shapes of the work, and give an instant grip. continuous automatic work is done on machines with hori- zontal work tables that rotate constantly. chief among these are the vertical spindle milling-machines and the grinding-ma- chines of the same class. a circular table, or, as often, a fixture attached to it, or for some light grinding, a magnetic table ro- tated without intermission, receives large numbers of small parts, as races for ball bearings, levers, etc., which are all tooled in the course of a revolution, removed and replaced by others by an attendant stationed at one locality. lubrication.—in all these machines lubrication and cooling are amply provided for. not infrequently as much as 15 gal. of cooling compound are pumped automatically over the tools and the work per minute. in some machines the supply is automat- ically cut off the instant that a series of operations is completed. gear cutting—in the extensive field of gear tooth cutting, automatic provisions have been made as nearly perfect as pos- sible. in all the later machines, indexing is effected without in- terference by the attendant. in those machines where both sides of a tooth are being cut simultaneously, whether they use a hob, a rack, a pinion cutter or planer arms, movements are automatic from the setting up until the completion of the gear. in these also the indexing is performed after every cut, so that many revolutions of the blank have to be made before the teeth are finished to their correct depth and section. when opposite sides of teeth are cut alternately, risk of local heating is lessened by taking a central gashing cut all round first, using a form cutter, and finishing each side subsequently with lighter cuts. recording.—automatic recording fills an essential place in many mechanisms. by means of it an inspector can read results that are plotted on a sheet of paper without watching the actual recording. it is used on gear tooth testing machines, on pyro- metrically equipped furnaces and in a number of other industrial operations. automatic movements include services of the machine shops. feeding chutes are supplied in increasing numbers to supply blanks to machines. work is brought to, and carried away from machines on moving conveyors, in place of hand carrying, wheel barrows or trucks. motors are assembled while travelling on conveyors past the workmen, each of whom contributes his little quota to the building up. work is carried between floors on inclined or spiral conveyors. automatic conveying systems are adopted in many industries other than those associated with engineering. (j. g. h.) automobile: see motor vehicles. avebury, john lubbock, ist baron (1834-1913), british banker (see 3.51), died at kingsgate castle, kent, may 28 1913. averescu, alexandre, (18s9- ), rumanian general and politician, born march 9 1859 at ismail (bessarabia), was a aviation—azerbaijan volunteer in the war of independence against turkey in 1877-8. promoted officer at the conclusion of peace, he remained in the army and studied at the high military school of turin (italy). he was minister of war in 1907 when he repelled the peasants’ revolt. in 1913 he conducted the military operations in the war against bulgaria as chief of the general staff. as commander of the ii. and iii. armies, and later of the armies in the dobruja, during the 1916 campaign, gen. averescu became enormously popular with his soldiers, a popularity which later on helped him considerably in his political career. in march 1918 he was en- trusted by the king with the formation of a cabinet and con- ducted the peace negotiations with the central powers. after- wards he retired from the army and entered the field of politics. he was proclaimed president of the people’s league, which later became the people’s party, and thanks to the popularity of gen. averescu this organisation was called to power in march 1920 with its president as prime minister. after holding this office for a year and ten months he resigned on dec. 17 1921 but remained president of the party. aviation: see aeronautics; aeroplane; airship; flying. ayub khan (1855-1914), afghan prince, son of shere ali (see 3.77), died at lahore april 6 1914. azcarate, gumersindo (1840-1917), spanish politician, was born at leon, spain, jan. 13 1840. educated at the univer- 297 sities of oviedo and madrid, in 1868 he was appointed assistant professor of comparative jurisprudence at the latter university and four years later became professor. in 1875 he resigned rather than submit to the famous orovio decree limiting the liberty of the chair. he was, however, reinstated six years later and became one of the group headed by francisco giner, to which spain owes most of its up-to-date educational institutions. t'rom 1868 he represented, almost continuously, leen, in the cortes, as a moderate republican. he had learned by painful experience that the attempt to set up a republic in a country where there was no genuine republican party could only result in anarchy and military dictatorship. he, therefore, expressed his approval of the reformist evolution toward monarchism initiated by melquiados alvarez, but, upon his defeat as a deputy, he proved the strength of his principles by refusing a seat as senator for life. after the barcelona outbreak of 1909 he kept apart from the violent section of his party. his position was less that of a'leader than of a man whose personal character gave a certain dignity to the anti-dynastic parties. he died at madrid dec. 14 1917. azerbaijan (see 3.80), a socialist soviet republic, forming part of the transcaucasian federation of soviet republics, inhabited principally by tatars. the capital is baku and the principal industry is provided by the oil wells there, the produc- tion from which in 1926 was improving (sce transcaucasia). 298 tician, was born at rome in 1830. after graduating in medicine at the university of rome, he became assistant professor of medical jurisprudence in 1856, and some years later professor of clinical medicine. he soon acquired a great reputation as a practising physician, and devoted himself particularly to the study of malaria; his researches proving invaluable for the reclamation of the roman campagna. in 1875 he was elected deputy for a division of rome, which he represented until his death. he was minister of education in various cabinets from 1879-99, and of agriculture under za- nardelli (1901-3); from 1889 to 1893 he was vice-president of the chamber. a keen classical scholar, he took an active in- terest in archaeological matters, although in some of his projects, such as the famous passeggiata archeologica in rome, he showed more enthusiasm than judgment. his labours for the isolation of the pantheon and the creation of the museum of ancient art and of the modern art gallery in rome deserved and met with more general approval. he died in rome jan. 11 1916. bacon, henry (1866-1924), american architect, was born at watseka, iil., nov. 28 1866. in 1884 he entered the univer- sity of hhnois to study architecture. from 1888 to 1897 he was with mckim, meade & white, in new york, excepting the years 1889-91, which he spent in europe as rotch travelling scholar. from 1897 to 1903 he was a member of the firm of brite & bacon, in new york, but after that time he worked independently. among his important works were the court of the four seasons at the panama-pacific expositions; the union square savings bank, new york city; the public library, paterson, n.j.; the waterbury general hospital, waterbury, conn., and the whittemore memorial bridge, naugatuck, connecticut. of numerous monuments, some designed in collaboration with various sculptors, the following should be mentioned: the lafayette monument, brooklyn, n.y.; the lincoln monument, lincoln, neb.; the longfellow monument, cambridge, mass.; the republic monument and the centennial monument, chicago, ill.; the president harrison monument, indianapolis, ind.; the civil war memorial and world war memorial, yale university, and the parnell monument, dublin, ireland. in 1920 the lincoln memorial, at washington, d.c., designed by him, was completed at a cost of more than $2,500,000. he died feb. 16 1924 in new york city. bacon, robert (1860-1919), american banker, was born in boston, mass., july 5 1860. he graduated from harvard in 1880, and the following year entered the banking business in boston. in 1894 he joined the house of j. p. morgan & co. in new york. he was assistant secretary of state, 1905-9, and then for a short time secretary of state, succeeding elihu root on the latter’s election to the senate. ambassador to france from 1909 to 1912, he was commissioned major in the u:s. reserves in 1917, being assigned to the staff of gen. pershing in france. he returned to america with the rank of colonel in 1918, and died in new york city may 29 19109.