Evening star., 1924-06-15
DANUBE Federation
IDEA GAINS GROUND
States of Old Austrian Empire
Find Customs Barriers
Bothersome.
BUSINESS OF ALL INJURED
Iealousies Alone Prevent Economic
Union. 80 '..
of The Star and Chicago Daily
BY A. II. DECKER.


BY A. II. DECKER.
VIENNA, Austria, June IL - AL
though none of the governments of
the succession states of the former
Austro- Hungarian empire and none
of the parties within those new states
has taken up the battle for a Danube
confederation, the idea is slowly but
steadily gaining ground. The need
OF way out of the economic OBJ
stacles arising from the artificial
frontiers is being increasingly felt.
Austria-Hungary was an economic
unit with Vienna as its cross roads
The rail lines followed the valleys and
the valleys led to Vienna. Peace trea-
ties have not changed the topography
of the country and the natural trade
routes are still through Vienna. That
is why Austria is Czechoslovakia's
biggest customer for manufactured
products and why Vienna is still the
big market for Hungarian, Jugoslav
and Roumanian farm products. Many
of the manufactured products are for
re-export, but most. of the foodstuffs
are consumed in Austria.
Austrian banks still control many
industries In the neighboring. states
despite attempts to legislate against
ii. The last panic on the Vienna ex-
change was felt just as much in
Prague, Budapest and Agram as in
Vienna. Business firms are still de-
pendent upon Vienna for new funds.
Effect Felt Daily.
Daily the effects of the artificial
frontiers are being impressed upon
the different countries as the needs
of industry increase. Each new state
has erected customs barriers partly
to protect home industries and partly
to provide revenues with which to
finance topheayy governments. There
is little doubt that the cost of gov
ernment has increased until each
state is spending almost as much as
did the old empire.
Perhaps the country most interest
ed in the formation of a Danube con-
federation would be Czechoslovakia-
Possessing from 60 to so per cent of
the industry of the former empire,
CzechysloYakia is without the market
of the old empire. On every side it
encounters customs barriers. Austria
does not permit Czech automobiles to
enter. therefore the Czechs are forced
to build plants in Austria, or at least
threaten such competition in order to
obtain more favorable tariffs. BY
making large number of trade
agreements the Czechs are trying to
turn the customs obstacles, but thus
far not successfully.
Hungary also finds obstacles in the
way of marketing its products. For
example, Austria placed a heavy duty
on Hungarian wine. At the same time
Italian wine was favored through
classification of the alcoholic percent
age. Much to the surprise of the tar
iff trainers the Hungarians found a
way of chilling their wine so that it
had to be accepted. Thus by exert
ing pressure and by ruses the from
tiers are crossed. And there is an
immense amount of smuggling.
dealer along a frontier will guaran-
tee to deliver small pieces of mer-
chandise at any point on the other
side of the Frontier.
Business Protests Barriers.
Producers, merchants and consum-
ers are protesting against the arti-
They are beginning to see that the
different governments, postal and
railroad administrations, currencies
and laws are combining to make the
ultimate cost of all articles unneces-
sarily high.
There is no movement for the re-
turn of the monarchy except in Hun.
gary. The supporters of the Danube
confede ration idea think in terms of
economics and not politics. They
want a free exchange of goods,
common post common currency and,
as far as possible the maintenance
the Hungarian exchange rate at the
same level with the Austrian is an
expression of the tendency to make
trading easier.
the old empire are for the Danube
confederation there are many strong
influences against it. The national
lists want to conserve full liberty TO
develop the individual states Each
government is trying to make its
state self-supporting and independ-
ent. Hence often tariffs are made
with the idea of forcing production
along certain lines, although the
neighboring state produces those
lines cheaper and better.
Objections From Outside.
For the same reason strategic rail-
roads are built, although they serve
no economic purpose. Indeed, the sue
building munition plants and arrang-
ing airplane fields. 1t is said the
Czechs are arranging north of Bratis
lava a flying field large enough to
accommodate all the planes of the
little entente.
Probably the German part of for
mer Austria would fear a Danube
confederation because it might mean
the domination of the Slavs. But the
greatest opposition would come from
outside the former empire. Italy
doubtless would consider a Danube
confederation a direct menace, be-
cause Sucn a com DlndIlOn would need
outlets to the sea-Trieste and Fiume.
Poland would probably oppose a Dan
ube confederation, just as Russia was
ininical to the Austrian empire. Ger
tainly even an economic Danube con-
federation would make it more diff
cult for France and Great Britain to
deyelop their policies.
1t is probable, therefore, that the
succession states of the old empire
viii continue to founder about aim
lessly, struggling against one another
instead of cooperating to bring about
real reconstruction.