CRISIS IN AUSTRIA.

Taranaki Herald, Volume LXVI, Issue 16194, 27 July 1918, Page 4

CRISIS IN AUSTRIA.

SITUATION OBSCURE. DISAFFECTION IN ARMY AND NAVY. “Never was it more difficult than at present to decide whether or not Aus-tria-Hungary is on tho verge of upheaval.” Such is the view expressed by a well-informed correspondent of the London Daily IMail. It is beyond question that the position of the Dual Monarchy, political and economic, is highly critical. Austrian industry is going to pieces. The paper money in circulation amounts to 17i milliard kronen against a metal reserve of 400 millions. Tho state of tho food supplies in Austria proper is one which, in any other country; must prove intolerable. And, more ominous still, tho army and the fleet are becoming mutinous.

As far back as January, on tho Lower Fiave, a Hungarian regiment mutinied on account of hunger, and on its voluntary retreat mot and fought with German troops. Early in February there was a serious outbreak at Cattaro, the admiral of tho base being made prisoner and a Sailors’ Revolutionary Committee appoin tod. The approach of loyal naval forces from Pola caused the flight of the chief mutineers, who escaped to Italy in a seaplane. Similar incidents, both among the troops and among the sailors, occurred in March. It is not imxtrobablc that these facts, coupled with the serious development of the national problem, are connected with tho non-appearance of tlic loiig-oxpcctcd offensive on tho Italian front. GERMANY AND THE FUTURE. In Germany, as previous reports have shown matters, though, -serious enough, have not reached anything like so grave a stage. It would not be safe, at the present moment, to assert that tho German nation is even approaching the limit of endurance. New and determined efforts are being made to cope with tho problems of food and industry, and there is abundant evidence that the Government is aiming at concentrating all the industrial forces of the country under its own control, with tho object of placing German trade in a better position to compete in the commercial “war after the war.” To this end _ compulsory syndication is being carried out in every branch of industry, with the incidental result that for the time being industry is being restricted, it being stated in the press, for example, that of 1700 spinning and weaving mills only 70 are still running at full pressure. To niet tho difficulties arising from the exhaustion of man-power, something akin to forced labour is imposed upon the whole working-class population of tho empire, and soldiers’ wives are deprived of their separation allowances if they do not work. GAMBLING IN FOOD. The food conditions show some improvement as compared with the situation a year ago. This is largely due to better supervision and distribution. It is also possible that, though practically nothing in the way of foodstuffs has been reaching Germany from Russia or tho Ukraine, the German food authorities have been using up their own stocks and gambling on the replenishment of their supplies from that quarter.

A device, moreover, has been adopted by the Government which oncourages production without increasing the cost of. the fond ration to the public. Tho farmer was formerly bound to sell all his produce to the authorities at a fixed price, which loft him little profit, with the result that production was curtailed or stocks concealed. Under the new system ho is obliged to sell only a fixed quantity at the low official rate, and can dispose of the surplus of his stocks for any price ho can get. Fixed prices are not always observed even by the authorities themselves, and the proceedings arising out of the purchase of foodstuffs through secret channels by the Neukolln, Municipal Council, at prices above the maxima throw a lurid light on tho conditions which lead to such practices. WOMEN STORM TOWN HALL. The council was absolutely forced to dp what it did owing to tho increasing clamour for food. Women penetrated into the Town Hall, and throw themselves on the ground begging for .blend, while others forced their wav into the private rooms of the Chief Burgomaster and oven assaulted him. , The most favourable German estimate of tho corn to be procured from the Ukraine before the end of the harvest year is 550,000 tons, which would barely .suffice the Central Powers for one week at a normal rate of consumption. The difficulty of finding means of payment acceptable to tho Ukrainian peasants is seemingly a. very real one. They refuse Russian, German, or Austrian currency, but are willing to accept American or English notes, which is tho probable explanation of tho demand for this paper in Switzerland and other neutral countries. As showing the lack of proper clothing in Germany just now, a foreigner resident in Berlin writes, that in tho poorer quarters of tho city ho has seen children wearing garments roughly made from sun-blinds, curtains, and carpets, and that tho only boots and shoes to be seen are made of sackcloth, wood, or cardboard. These shortages, however, do not affect the equipment of tho fighting forces.