Paris Peace Conf. 184.011102/640
Mr. Albert Halstead to the Secretary of State52
Subject: Conditions in Austria and Vienna.
Sir: I have the honor to submit the following report on existing conditions in Austria and in Vienna particularly.
The general situation appears still to be going from bad to worse. The crown which was worth about 3 cents six months ago is worth just a little less than four-fifths of a cent today. Prices have advanced almost proportionately except on articles produced before the tremendous fall, but practically almost all of these have been purchased by foreigners who realized how cheap they were. There seems to be no end to the steady depreciation of the money. The fall is not surprising, however, when the expenditures of the Government are practically three times its revenue and when the printing presses are worked overtime to pay for running expenses.
Six months ago the people were depressed and apprehensive of an outbreak of bolshevism, but they were buoyed up by the feeling, which would appear to have been wholly illogical that the four great powers who were preparing the Treaty of Peace would see to it that they did not go under. When the Treaty of Peace was presented and the question of its signature came before the government, Doctor Renner insisted [Page 588] strongly upon its signature. He believed this was the only course possible. A few there were who feared that the treaty would not permit Austria under the most favorable circumstances to meet the obligations it imposed and to gradually rebuild. These argued that the Peace Treaty should not be signed and that Austria should stand back and say to the powers “what are you going to do about it.” If a popular vote were now taken upon the question of signing the Peace Treaty the chances would be against a vote to ratify. Developments in Hungary have accentuated this feeling as the increasing hopelessness of the situation became manifest. They see that the Rumanians remained in Hungary contrary to the wishes of the Peace Conference for several months and that they successfully looted the country and that even now the opposition of the powers to a monarchy has not decreased the sentiment for that form of government to any appreciable degree. They fear that even though the will may be there the powers have so far found it practically impossible to really improve the outlook. “Why” then is the question, “should we struggle on and why did we not force the powers to solve the problem that we cannot solve, for then theirs would have been the responsibility.”
For the last few days there has been the gravest danger that there will be no bread and as it is the ration is reduced more than half. The most strenuous efforts are being made to obtain more bread but the city continues to live literally from hand to mouth. The harvest has been over for some months and the provinces have only given Vienna about 32% of the normal supply. From every neighboring country difficulties arise with regard to the supply for Austria, the chief one being the question of finance. The supply of clothing is insufficient and the price almost prohibitive—though in the shops that cater to the well-to-do, to the thousands who are here in one form or another for foreign missions, for liquidating the assets of the Empire, and for other purposes, and those catering also to the war-profiteers clothing of a luxurious kind and all other luxuries are readily obtainable. The apartments of practically all of those except the foreigners who have an official or semi-official status are cold. A little wood is purchasable but at exceedingly high prices and the poor in many cases are unable to obtain fuel to cook their meals.
There was a danger yesterday that the electric light service could not be used because there was no coal and the bins were being swept to secure something to burn to keep the boilers warm, but a small supply of peat was finally secured which burned better than had been expected. This may improve the situation somewhat. The same difficulty of hauling occurs with this as with coal. Many trains have been reported on their way to Vienna, laden with coal, but have been delayed for one reason or another, chiefly because of the breaking down of the railroad stock.
[Page 589]I have visited the poorer quarters and in one 9 x 5 room found a family without furniture, with children and parents in rags, and am told that this is not in the least an unusual case. In these circumstances the patience of the people is astonishing. This is both due to their nature and to the fact that their condition makes resistance and resentment most difficult.
One hears daily rumors of expected popular demonstrations, of public rioting and of the likely overthrow of the government. With everybody depressed, discouraged and hopeless such rumors naturally grow. The government is anxious and it has been stated that the socialists finding they can do nothing are not unlikely to turn the responsibility over to the Christian Socialists, who are a mixture of conservatives and clericals. There is much talk and there have been plans for an attempt to restore the monarchy. The tradesmen, the old officials, the aristocrats and those who are dependent upon a gay city and a majority of the bourgeoisie would favor a monarchy. To the peasants of at least Tyrol, Salzburg and Vorarlberg a restoration of the monarchy would be welcome. Even in Styria there is a strong feeling for the restoration of the monarchy.
The situation in Vienna is complicated by the hostility of the provinces which are seeking more and more to force the government to regard them as independent as the Swiss cantons. In several cases the government has been wholly defied and there is a case pending against the provincial council of Styria because it has acted unconstitutionally. The provincial council of Upper Austria insists upon a right to decide for itself what should be shipped from there, and who should be permitted to enter that territory. A comparatively little respect for law anywhere is apparent and the condition is actually one of peaceful anarchy. The one strong force for real order is the police of Vienna and that under existing conditions it should remain so loyal is the highest tribute to its discipline and efficiency. It appears to be almost the only body that has any real patriotism but that patriotism is largely due to the habits of obedience and discipline.
I have [etc.]
- Copy transmitted to the Commission by Mr. Halstead under covering letter No. 488, November 21; received November 24.↩