AUSTRIA-HUNGARY. 



The active army and the reserves are common 

 and are under the control of the Austro- Hunga- 

 rian Minister of War. The Austrian Landwehr 

 and the Honved are separate organizations, con- 

 trolled by the Ministers of National Defense in 

 the two monarchies; but all orders relating to 

 the concentration of troops must proceed from 

 the Emperor-King. 



The Government is providing the Austro- 

 Hungarian army with the new Mannlycher re- 

 peating-rifle, with which several corps are be- 

 ing armed. There have 600,000 of them been 

 ordered, to be delivered in five years, at a cost 

 of 35 florins apiece. 



The Navy. The Austro-Huugarian navy in 

 1885 consisted of 10 iron-clads, 2 frigates, 5 

 corvettes, 6 torpedo- vessels, 14 coast-guards, 

 5 transports, 2 monitors, and 18 torpedo-boats. 

 The most powerful vessel was the Tegetthoff, 

 with 14-inch armor, six 27-ton guns, and 6,500 

 horse-power. Two formidable armored ves- 

 sels were under construction. Of these, the 

 Kronprinz Erzherzog Rudolf, a barbette tur- 

 ret-ship, is intended to have 12-inch steel- 

 plates and a speed of 16 to 17 knots. The 

 other will be a barbette belted ship with 9-inch 

 armor. 



Finances. The estimated expenditure for the 

 whole empire in 1844 was 118,306,910 florins ; 

 for 1885, 119,453,510 florins. The budget esti- 

 mates for 1886 make the total revenue 119,724,- 

 748 florins, of which 25,914,132 florins come 

 from the surplus from customs, 90,643,089 

 from the contributions by the two parts of the 

 empire, and the remainder from the ministries. 

 The expenditures are set down in the budget 

 as follows, in florins : 



The debt of the empire stood at the end of 

 June, 1885, as follows: 



DESCRIPTION OF DEBT. 



General debt : Florins. 



consolidated debt 2,686,124,597 



Floating debt 99,875,P55 



Capitalized annuities 13,D17,1S8 



Austrian special debt : 



Consolidated debt 549,867,252 



Floating debt 1,487.737 



Land-redemption loans 183,738,620 



Total 3,485,010,765 



The main burden of the general debt, con- 

 tracted before 1868, falls upon Austria, the 

 Hungarian share amounting to only about 30.- 

 000,000 florins per annum. The Austrian debt, 

 with the share of Hungary deducted, but with 

 the addition of 358,000,000 florins of paper 

 money, amounts to about 3,250,000,000 florins. 

 Hungary owes, besides the common debt, only 

 127,158,000 florins. 



The Occupied Provinces. The area of Bosnia 

 and Herzegovina, with the Sanjak of Novi- 

 Bazar, Turkish provinces placed under Austro- 

 Hungarian administration by the Treaty of 

 Berlin, is 24,247 square miles; the population, 

 1,504,091. Of the population, 492,710 are Mo- 

 hammedans, showing an increase of 44,000 

 since 1879 ; 571.250 are of the Orthodox Greek 

 faith ; 265,788 Roman Catholics ; 5,805 Jews, 

 and the remainder of other faiths. 



The cost (if administration is estimated for 

 1886 at 8,453,535 florins ; the cost of the army 

 of occupation at 5,835,900 florins. 



The Austrian administration has wrought 

 many improvements in the material condition 

 of the country. Roads have been built, and 

 railroads in the chief lines of communication; 

 a system of jurisprudence has been introduced, 

 and the legal equality of the different confes- 

 sions established ; the productive capacity of 

 the land has been increased ; yet the Imperial 

 Government has totally failed to win the at- 

 tachment of the people. At first, the Roman 

 Catholics in the provinces were favored, and 

 the propagandist designs of the Austrian priest- 

 hood promoted by the officials. This error was 

 corrected, but the Moslem begs or landlords 

 were then taken into favor. There was no at- 

 tempt to solve the agrarian question, which un- 

 der Turkish rule constituted the chief difficulty. 

 The landlords still obtained their third part of 

 the produce, which was collected through the 

 Government officers in a less capricious and 

 oppressive way than formerly, but more thor- 

 oughly. The tithes due to the Government 

 were still collected, and in addition there were 

 new imposts and monopolies, so that the taxes 

 were heavier than under the Turkish regime. 



A railroad from Doboj to Siminhan, 67 kilo- 

 metres, was opened on April 28. It is a pro- 

 longation of the line starting at Brod, on the 

 Hungarian frontier, and will be continued to 

 Serajevo, meeting the line which will go to the 

 sea, the Mostar-Metkovic section of which was 

 completed in 1885. 



The Eastern Question. The revolution in Bul- 

 garia and the enforced abdication of Prince Al- 

 exander Battenberg provoked in Austria- Hun- 



