t with it the uncovering of a rather
extensive scandal in connection with the manufacture of guns and
other war materials. One of the Socialistic leaders in the Reichstag
charged some officials of the great munition firm of Krupp and of
other firms with bribery of War Department officials, and with the
creation of artificial war scares in other countries for the sake of
increasing munition orders. Although the German courts later
sustained this contention to a certain extent, and although it
resulted in a certain amount of antiwar sentiment, Germany continued
with its well-defined program of increased preparedness. That the
Government had behind it in its efforts the full support of public
opinion was proven in June of the same year, 1913, by the passage in
the Reichstag of another bill carrying considerable increases in the
peace strength of the army, and by the fact that the necessary
expenditures were met by special taxation, which, though severe in
its effects alike on poor and rich, was borne cheerfully by the
entire nation.

[Illustration: Nicholas II, Emperor of All the Russias.]

Although the Balkan question continued to be the source of
considerable anxiety and extensive diplomatic conferences, the
political horizon of Europe during the latter half of 1913 and the
first half of 1914 seemed comparatively cloudless to all but the
keenest observers. Like a flash of lightning out of a clear sky,
therefore, came the news that the heir to the throne of
Austria-Hungary, Archduke Francis Ferdinand, and his wife, the
Duchess of Hohenberg, had been assassinated during a visit to
Sarajevo, the capital of Bosnia, June 28, 1914, and that the
Austrian Government had determined to hold Serbia responsible.
England, France, Russia, and Serbia tried, in vain, during the next
five weeks to check the outbreak of a general European war.

CHAPTER II

AUSTRIA-HUNGARY

Amongst the great European nations the Austro-Hungarian Empire
occupies a unique position. In number of inhabitants it is inferior
only to Russia and Germany, whereas it occupies more territory than
any other European country, with the single exception of Russia. In
spite of this, however, Austria-Hungary possesses no foreign
colonies, and those of its inhabitants who, for one reason or
another, decided to leave the land of their birth, have, therefore,
for years emigrated to foreign countries, and have been lost, in
large numbers, to their native countr