Evening star., 1926-05-02

Continued from First Page)
expect new trouble in the Balkans
Hungary already has made a good
commercial treaty with Austria it has
established very good relations with
Jugoslavia. 1t finds its political rela-
tions with CZechosiovakia and Ru-
mania improving.
In the larger sense conditions are
changing very rapidly in the center of
Europe. The little entente, which ex-
listed to control Hungary, is going
perhaps has already gone. Jugoslavia
has turned to Italy and made with
Mussolini a hard and fast alliance, a
thing which would have seemed in
credible three years ago. Rumania is
oscillating between the French and
Italian connection. but France is rap
idly ceasing to be a power in the east
of Europe. AS for CZechoslovakia,
menaced by the growing intimacy OF
Austro German relations. it must
either seek to make peace at Berlin
or follow in the lead of Rome.
Hungary's position remains always
exposed. Northward the Turk once
came, southwark lies the pathway Of
old German aspiration. Herself, she
is caught between the northern and
eastern Slavs-the upper and lower
millstones. If pan.Slavisn1 ever re-
turns as a force in Europe. Looking
to the future. il is hard to see how
she can be secure, save as she be-
comes a rather subordinate ally of
the German or of the Russian. Yet
neither destiny attracts people as
proud and independent as the Magyar.
1t is possible that IN some fashion,
economic rather than political. some
Danubian edifice may be erected,
some kind of tariff union created, be-
tween Austria. CZechoslovakia and
Hungary, to begin with, and extended
to include Rumania and Jugoslavia.
Obviously, this would be the ideal So
luton. This has been the conception
of many students of eastern Europea n
history, and certainly it remains a
possibility. Economically the combi-
nation Of the three states would be
both sound and certainly logical. But.
| unhappily. the political barriers are
almost insuperable.
Yet for the present it would seem
that the succession states are settling
down to a period of relative calm and
absolute peace. do not see any
reason to believe that the still dying
embers of the last conflict can be
blown up to new confiagration.
| believe that between Hungary and the
states which surround her relations
will improve. passions diminish, and,
what is not less hopeful, the tempta-
tions of larger states to interfere in
! this region may be at least temporarily
diminished. In q word, DelieVe that
Hungary, like all other states in Eu-
| rope. is dominated by men and by
| forces which are making for peace,
and that any actual explosion is un-
likely.
Currency Is Stabilized.
II there is one disturbing circum.
stance in Hungry it is economic.
Through the aid of the League of
! Nations and in large part as a result
| Of the skillful. tactful and successful
services OF jeremiah Smith of Boston,
| Hungarian currency has been stabil-
ized. the Hungarian budget has been
! balanced. and Hungary, like Austria,
has escaped from the evil conse-
ouences OF imitation. But Hungary,
| like MANY other countries, has en-.
| tered into a postwar period of ex'
treme protection and the encouraging
of infant industries. This means
erecting and maintaining high tariff
| walls against Austria and CZecho
| Sloyakia. and eventually 1t means the
great diminution Of purchase by these
states of Hungarian agricultural
! products. 1t also closes the door to
any economic combination of those
states. and thus opens the way fol
political combinations, such as the
union of Austria, and even of Czecho
sloyakia, with Germany.
do not find many HungarianS OF
any Austrians believing in tho prac