Evening star., 1914-10-25
The Proposed
Austrian Loan
On the conciusiun or rneFr

i
Hungary desired that a more favorable
attitude might be brought about be-
tween France and the dual mona rchy'
1t would be unjust to charge this
somewhat sibyline language of the
journal to the account OF the Austro-
Hungarian government 1t will be re-
called that the Austrian delegate to the
AlgecfraS conference In 1906 declined to
follow Germany's policy then, and 1t was
publicly stated in Vienna and in the
dispatches therefrom at that time that
the Vienna government had informed
the government at Berlin that IL would
not support Germanys attitude in the
conference on the Moroccan question.
Austria Hungary, in view of her sym
pathetic support of France in the con-
ference at Algeciras. felt that there
was no indiscretion in asking the favor
of placing a loan in France.
For a fact, Baron dAehrenthal COM
municated to NJ. Crozier, French am
bassador at Vienna.
Austro- French his adhesion in prin-
p.1.+;. ciple to the Franco
German agreement in
Morocco. The Austrian minister inti-
| mated that the good relations. of the
Hapsburg monarchy with France in
duced him to believe that tha Proposed
loan would tend to strengthen those re-
lations In view Of such consideration
NJ. Crezier visited Paris In eFdbec to .ub-
init in person the matter, which Ras per-
haps of too delicate -nature~to trust
teven TO, tha diplomatic ic~ mall SACK.
Austr1a-Hunsarys policy, however, in
lthe. Balkans waS Undoubtedly barrier
that could not be passed. To permit Aus
ftrta to supply atniamehts which might
be used against the friende ofs France
against Russia. ITALY, Or others was not
to- to, es entertainsd,. ,aa and the deposition
On the question OF .aaanes .aaaness.s :; and the
facility with which loans @hsd~heen made
in France. it Is fnstructixs.stH~fite the
Monde Economique of February %. 1905.
which wrote.
"Truly 1t is astonishing that the great
French corporations of Paris place in
German banks between three hundred
and four hundred millions Of francs.
They thus become the bankers of all
governments of the globe. and they re-
fuse to discount French commercial
stocks. to mahe-adrances- on exterior
ffaustrfes"
NJ. Ferrand. French commercial at
tache at Berlin. reported in one of his
| memoranda to the ministry In 1901
that during the crisis of that year
| Germany was within two points of
| failure. French finance saved Ger
many's credit by sending her $24o.ooo.-
900 in six insta1lments Of $40,000. 600 At
a large interest,""
!. eIns. a11 : tile -~srsaco-GsssAsa crisis
placed that situation in a new light
thsrg.-wes-a.sn,pna.Q Qoa.eE~ 1ssssh CAPT
tai placed at the disposal ar German
! finance. That money rendered inralu-
able service to Germany. whose capital
was insufficient for the purpose of her
enormous necessities and for her
economic ambitions. 1t was esta ablish-
ed that certain. great financial estab
tlishments~ In France were ~eedNced by
teasy-antf fruitful UpeIX on the
destined to be exporter were concen-
I tratsd in the hands of few inter-
| mediary banks in which there were i'm
portant foreign elements. ~7'
=, ,l-'''.er
Under the influence of these banks
| the money of their clients was placed
at the most advan-
German Use of c".tageouss rates, and
French Funds. .ssa Sc n, 1,,,,,aras fnan,isr
Certain Partisan banks were reall2.
German banks in disguise. employing
French capital in favor of German en-
terprises. .,-. \
That, Germany recognized the rela-
tfonr between finance and~dfploma cy
was apparent in 1911, when for reasons
purely political she edeeisied to close
her financial market and barred there
from the American railroad securities.
aNJilwaukee (,hic3 90 ST Paul On
that occa sion the. minister. Herr Del
bruck, said: I'VE should not invest in
foreign securities which in jure the de
velopment of our industry. Consequent
ly it is right that the state should in
terfere to interdict their Introduction
at the bourse
The necessity of unity OF action be-
tween finance and diplomacy was
ma infested in the matter Of the OTTO
man loan in 1910. when Djavid Bey at.
tempted. with the aid of Sir Ernest
Cassel, TO effect loans at Paris ana
London. but Intellectually.
The present var proclaims the signal
failure of diplomacy which should have
and cruel of all wars. Nor is the fail
ure of diplomacy exceptional
Among diplomacy's failures there
may be cited. first. the Schieswig Hol
stein question which led to scission be-
tween Denmark and Prussia, the treaty
of London uS52) and the violation OF
that treaty in 1864: second. Rome was
seized and occupied by an Italian arm!
C1s70). and without serious protest
from Austria Hungary. which was the
special protector of the holy see: third.
England occupied Cyprus nS1sl with
out diplomatic protest; fourth. England
occupied Egypt in 1SS2 without dipio-
matte protest: fifth. Norway separated
from Sweden in 1905. despite Europe's
disapproval. but no united protest was
formulated: sixth. Austria-Hung
annexed Bosnia Herzegovina In l9os
and diplomacy was silent; seventh. Tur-
key violated the treaty Of London
lS13) by the reoccupatiOn of Adrian
ople. to which diplomacy made no seri-
Gus protest: eighth. Turkey defied the
powers by the insolent abrogatfon OF
the capitulations. and diplomacy has
formulated a weak and inef1icacious
protest 1919.
Diplomacy confronted since hall
century with failure to improve 1t, will
in the interests of the peace Of Europe
yield again to that force" which Bis
marck declared in 1870 "suppresses
right Diplomacy has been a great
force even as far back as twenty-four
centuries ago. when the great Philip OF
Macedonia maintained that mo place
was impregnabIe into which one might
send a mule laden with a bag OF gold
CHI. CHAILLE-LONG-