CZECHO-SLOVAKIA.

Dunstan Times, Issue 3136, 25 September 1922, Page 2

CZECHO-SLOVAKIA.

(By an Observer.) Prague, once the sleepy capital of the picturesque kingdom of Bohemia, and now the political and commercial centre of the Czeeho-Slovak Republic. which comprises not only Bohemia, but Moravia, Slovakia, and part of Silesia, has to-day become the most important city in Central Europe. Compared 1 with Vienna and Budapest, Prague presents an appearance of prosperity and alertness, of order, method, and definite purpose. There is not that sense of despair, groping uncertainty, and indecision which one has in Vienna. While other European capitals suffered by the upheaval of 1014, Prague was hardly affected until the revolution of October, 1918, when she awoke suddenly to find herself one of the great capitals of Europe. Thus, from being essentially an old-world, conservative town with a romantic history, she sprang into being as an important democratic entity. Her politics and form of government being based on the strictest democratic principles, her policy is one of innovation and evolution on Republican lines, not of an intensified Socialistic or Bolshevik order. Far-reaching changes were accordingly inevitable. The most obvious was some kind of land reform. Until the revolution, the landed proprietor had remained in a state of semi-feudal-ism, for it must be admitted that estates amounting to between 300,000 and 600,000 acres—the property of one single family—are move suited 1 to the Middle Ages than to the twentieth century. After the birth of the Republic land laws were passed to appease the Socialistic appetite of the masses. No one owner was entitled to hold more than 250 hectares of arable land or 500 hectares of forestai land. In order to put this vast scheme into force a Land Office was formed. This official bureau, composed of officials who unfortunately knew little of the difficulties of estate management, undertook to divide up the estates and assess the damages incurred by the confiscation of property. Compensation was granted at the market price of the years 1913-1915. As the value of the Czecho-Slovak crown had in the meantime fallen, the owner was thus only entitled to* receive a bare tithe of the market value of his laud. As regards the sale or mortgage of any part of his estates, no landowner m a free agent. Any such transaction can only be effected with the permission of the Land Office. Upon special application on the part of the proprietor, 500 hectares, instead of 250 hectares, may be released from the land taken over in the public interest. If not required for public use, the land is to be allotted to small' peasants, agricultural and forestai laborers, and, especially- to legionaries, soldiers, widows, and * orphans. Owing to the prevailing uncertainty as to the ultimate future of landed*proprietors and their domains, banks are unwilling to advance money threou at a lower rate than 12 per cent. Under a law passed in August, 1921, estates forming part of what is now Czechoslovakia, belonging to the Imperial family, including the family of Ferdinand of Este, and all Hapsburg property, were confiscated and amalgamated into the Republic. The largest landowner in the Czech Republic holds something like 600,000 acres with some 40 cashes. In connection with this, it is interesting to note that in 1910, out of a population of 6,800,000 inhabitants, Bohemia had 2,180,000 persons employed in agriculture. Two-fifths of the total land was held by some 1540 large land-owners. In Moravia, onethird, and in Silesia one-half of the total agricultural land was in tho hands of large landowners. In Bohemia there were over 700,000 small agricultural holdings not exceeding five hectares, while in Slovakia 90 per cent, of the population was landless. Middlesized holding were practically non-ex-istent. The peasants occupied only one or two hectares of land. With regard to present conditions it is interesting to see how the owner is effected by the land reform. Profiled they can sell at a reasonable price landlords are willing to part with the outlying portions of their estates. They fully realise that some measure of reform is necessary, and that they are called upon to make some •personal sacrifice. But many of the new laws have proved well-nigh impossible of application, and during the past three; years the Land Office has come to realise that these schemes of expropriation may be highly injurious to the country. The Czech Government have discovered that great economic damage would ensue from the rigid enforcement of these laws, for many of the material assets of the country can onlv be exploited to full advantage if operations are carried out on a large scale, as, for instance, in the case of timber, sugar-beet, and the manufacture of alcohol from potatoes. Unlike the German, Austrian, and Hungarian landlord under the new regime, the Czech has managed to retain a portion of his former wealth, though, as in other countries, he is experiencing the effects of the war and taxation. Perhaps his greatest tribulation is the feeling of uncertainty as to the future. He is never quite at ease, never quite without the thought that one day he will be faced with the regid enforcement of the new laws, and a descent will be made upon bis property. At any moment he is liable to have his house commandeered audited into a. "Ministerium," a school, or an asylum for the poor, aged, or blind. Naturally he is diffident about tiie development of Jus land, the spending of considerable sums on planting of trees, and other necessary measures. Why should Iksow that others may reap!- 1 On visiting the " beautiful homes situated among magnificent woods and forests of the average great landowners, one is struck by a sense of neglect, and lack of interest. And the host will not hesitate to explain the situation, to state that he does not consider himself justified in making any considerable outlay, that, owing to his present unsettled conditions, he feels inclined to "wait and see," hoping that events may prove favorable. In other respects there is no great change. The houses of the Bohemian country squire give an impression of ease and comfort that is less evident in other parts of Central Europe. As in former days, his table is well furnished. And he is still served by old family retainers, although few in number. Owing to tlie favorable exchange he can travel abroad, without seriously crippling bis yearly budget. He doe's not, like the unfortunate German or Austrian landed proprietor, feel a reluctant prisoner in his own domain. For the most parts, members of the old aristocracy live on their estates. For distraction and a glimpse of "town life" they frequent Vienna, lio t Prague.

Social entertainments in the Czech capital consist chiefly of receptions given by the Corps Diplomatique and Government officials. For the most part tho intensely Royalist section will not mix with Republican society. Thev stand aloof. Many of the poorer nobility have emigrated to Vienna, Munich Berlin, Poland, or Hungary in order to benefit by the rate of exchange. Others occupy a small corner of the vast palaces which have been in the possession of their family for centuries. These palaces, which are built some-

what on the Roman Renaissance style, are now either foreign delegations, Government offices, or divided into flats; the owner perhaps occupying a few rooms, according to the size of his family. As in Berlin, space is limited, the housing problems being acute. Thus, any owner of a spacious flat or house is liable to have this commandeered bv the State. In spite of the Government's endeavors to encourage the erection of new buildings, the building trade has remained practically suspended. The Government offered substantial assistance to anyone who would undertake to erect new buildings containing small dwellings or Hats. A loan was floated on the most attractive terms, and relief offered to the taxpayer in respect of income derived from new private building enterprise. Rut none of these measures met with success. And the shortage of houses has reached a crisis. In the town of Prague there is practically no accommodation to he had, and prices are exceedingly high as compared with those in the rest of Central Europe. The cost of living can he said to be almost on a level with Paris. Tho high cost of living is due principally to the fact that the prohibition imposed on the import of many of the most necessary foodstuffs and fuel restricts the supply, while the inordinately high import duties increase enormously the price of other articles. The excessive price of labor is another cause. Owing to their increased wages the working classes live in comfortable content. There is little unemployment, but, unless during the next year, as food prices begin to fall, there is a substantial reduction in the price of labor, there is every probability of a serious financial and industrial crisis. Already, when threatened with a reduction of wages, the working man has protested by strikes and demonstrations. The rise of the Czech crown has brought the country face to face with a serious econmic problem. With the Czech crown at its present value, the Czech manufacturers are unable to sell their goods at competitive prices. The gravest menace is that of Germany, who, owing to her inflated currency, can effectively undersell Czecho-Sl'o-vakia on the markets of the world. Under these circumstances this enigma remains to be solved. How are the costs ol production to be adjusted to the exchange value of the crown After three years of unmitigated prosperity the country is- confronted with circumstances that justify a considerable amount of anxiety. It is, however, impossible that she 'can suffer the cataclysmic collapse experienced by other Central European States. A difficult period may lie before them, but the Czechs are a hard-working and plucky race, full of commonsense, and one cannot help feeling confident that, with the policy of rigid economy to which the Government is pledged, they will steer their country safely through tho troubled waters.