The Dissolution of the Habsburg Monarchy

by Oscar Jaszi

A book report by America is Babylon

Written in 1929 by a Hungarian, this book describes all of the factors which contributed to the fall of the Austrian-Hungarian Empire.  This collapse was finalized in World War I.

The Austrian-Hungarian Empire consisted of 10 nation states and 20 or more divergent nationalities.  The two prominent distinct states which dominated over all were Austria and Hungary.  Jaszi gives very scientific reasonings to why this great conglomerate imploded, but the focus in this book report is to analyze the state of condition of the Empire before her collapse and how it compares to the United States.  This book gives insights regarding the reason anti-Semitism became such a rooted evil within Europe.  This will help the reader in understanding why Adolf Hitler was so anti-Semitic being that he was an Austrian by birth and was raised within this totally dysfunctional Empire.  Anti-Semitism was not invented by the Nazis but had been a reality long before.

This really is a book of foreign policy.  This frame of mind on how to deal with nationalistic tendencies within the continent of Europe or within the United States is still in place to this very day among our nations’ foreign policy makers and is implemented in all of America’s and Europe’s engagements with the world.  This book explains why today there is such malign towards nationalism among the rulers of Europe and why they push for globalism.  They are trying to avert another repeat of the Habsburg catastrophe, yet they will actually recreate this monstrosity with their New World Order.

DISCLAIMER: This book report is not intended to convey in any way, shape, or form racism or racial superiority of any race, nor is it intended to promote racial segregation. Please read carefully. It is only to shed light on to why Anti-semitism formed in Europe, as well as why countries with diverse racial populations tend to have problems overcoming racial divisions. Unfortunately, racial differences are easy for the elites to exploit in order to keep the common people in bondage.

Below are quotes from the book, and a comparison regarding America’s same problems and future.

1.“We can go even farther and say that this experiment of the Habsburgs would have signified a higher and more promising principle of evolution, not only compared with the old national states but also with the English and American kind of confederative state.  For the British Empire and the United States are in reality a continuation of the old national type.  In the United States the unity of the Anglo-Saxon culture and hegemony is uncontested, whereas the greatest part of the commonwealth of British nations is still under Anglo-Saxon leadership and the non-European stock of this commonwealth is scarcely beginning to participate in the political life of the whole organism.  Neither the United States nor the British commonwealth can be regarded as a supranational type of state life.” (page 4).

In 1928, and up until the past 15 years of America’s political history, European descent people have been in control of the government.  Now this is becoming not so.  We are seeing all the ethnicities and minorities which in the past, have never had political power or sway, becoming active and wielding power.  This is upsetting the apple cart now, why?  America was once united upon common Anglo-Saxon culture and Christianity.  Now, we are devolving into a cauldron of racial, class and religious divides in which we will not overcome.  Why?  Because the Habsburgs were not able to overcome it either.  History repeats itself.

In order to unite a people, there has to be a united force in which all can identify in, and now that force in America is gone.  The uniting force was belief in the Bible and Christianity as absolute and supreme Law.  This has eroded over the past 85 years.  We also had cultural unification because we were all white Europeans.  Now, we have been facing a flood of non white immigrants who are drastically changing the cultural landscape of this nation.  These ethnicities do not want assimilation into Anglo-Saxon culture, but they want to maintain their culture in the midst of the land.  This self determination by the minorities and ethnicities will eventually fracture the United States, and a house divided can’t stand.  

2. “Compared with the history of other states is the face that we do not find a single common ideal or sentiment which could have united the peoples and nations of the monarchy in any political solidarity whatsoever.” (page 129).

This is exactly what is happening in the United States.  We are unable to find a common culture to unite us all.  Even the Habsburg Empire could not bring its peoples together by Laws and Constitutional amendments.  Man-made law is not enough to unite people.  There are no transcendental aspirations and identity in them.  There was no common denominator amongst the peoples of Austro-Hungary.  As long as America kept her Anglo-Saxon hegemony in government and culture, then she was strong.  We have weakened because our culture is not homogenous it is now heterogenous.  The fruits of this path will lead to ultimate war and destruction.  We will slowly implode from the inside and weaken to the point in which a predator nation will take advantage- mainly Russia or China.

3. “The Empire collapsed because the historic tradition of each nation stood in a hostile and hateful way against the historical experiences of the other nations.” (page 130).

When people cling to their own cultures and experiences they will never align with a foreign one.  This is true of the immigrants, who will not assimilate to European/American culture, but cling to theirs.  Just as much as the European Americans cling to their past culture and experiences, but have xenophobia against the foreigners that bring theirs here. 

4. “Here the peoples did not do anything in common and they did not forget anything.” (page 130)

This is happening in America where grievances by Native Americans and blacks over slavery or land usurping have never been forgotten but constantly perpetuated down the generations.  This wound will never be allowed to heal and therefore it is divisive.  New immigrants, and first generation children have no memory or generational experience of national traditions or holidays that have been embedded within American culture and therefore they do not identify with it.  This lack of identity further divides the peoples.  The more immigrants constantly streaming in, constantly bringing their culture with no time for their children to assimilate into American culture, the more divided we become.  

5. “This endeavor had the character of a political universalism.  Among their immense conglomeration of peoples and countries the Habsburgs would not suffer political or religious divisions.” (page 136).

The Habsburg state’s endorsed religion was Roman Catholicism, but there were many Protestant sects as well as Greek Orthodox and Russian Orthodox.  They were persecuted by the state to a degree.  The Monarchy also utilized the hostile Turks and Islam to the south of their Empire as a weapon of fear and division amongst the Balkan region peoples of Croatia and Serbia.  The German culture and language being pushed by the Monarchy as superior to all others and the favored second status to the Magyar inflamed the resentment of the slavic peoples who then leaned towards Mother Russia for their liberation.  

6. “This Empire counts thirty-four million inhabitants, but in reality it has no more than six million people; namely six million Germans keeping twenty-eight millions of other stocks in bondage.  If one subtracts from these six millions the numbers of peasants, artisans, merchants, etc., who have no share at all in the government, there remain at most two million Austrians who rule all these masses.  These two millions or rather their interests and opinions are represented approximately by a hundred families which are German, Hungarian, Polish, or Italian but which commonly speak French and have their capital largely outside the country.  Using in their service two million bureaucrats and soldiers they rule through them the other thirty-two millions.  That is a society modeled on the pattern of the English East Indian Company….Ordinarily, people have a false idea of this Austrian Empire which never was a German, Hungarian or Slavish empire, but a kinship of all those who aim at drawing out the marrow of so many extensive countries rich in population.” (page 8).

7.“In his religious mysticism each Habsburg felt himself connected by a special tie with divinity, as an executor of the divine will.  This explains their almost unscrupulous attitude in the midst of historical catastrophes and their proverbial ungratefulness.” (page 135)

This describes our modern day Elites who are detached from the masses, elevate their industry and capital over law or border, and look to rob the masses and country for their own gains.  This is why there is vitriol projected at those in politics who wish to remain sovereign and to restore the power back to the people.  The Habsburgs and their minions are exactly like the dynastic families of America and Europe who have dominated our political processes for decades and pushed this nation further and further into globalism.  They are the relatives and descendants of the Habsburgs. They utilize the media and propagandize the masses by pitting the peoples against one another rendering them helpless to rise up against their brutal oppressors. 

8.“The thought was often expressed that there were in Austria some sixty aristocratic families who conducted the state as their private enterprise and attempts were made in an ingenious way to deduce the story of Austria from this proposition.  This thought has some truth in it but it is incomplete.  Add to these sixty aristocratic families thirty or forty bishops and you will have the whole truth.” (page 149)

9.“And again, if the Austro-Hungarian state experiment had been really successful, the Habsburg monarchy would have solved on its territory the most fundamental problem of present Europe, which is also the problem of the League of Nations.  How is it possible to unite national individualities of very divergent ideals and traditions in such a way that each of them can continue its own particular life, while at the same time limiting its national sovereignty enough to make a peaceful and effective international co-operation possible?” (page 4).

While no empire on the planet to date has successfully become a united global world order, there is one in the future that will.  This is the empire of the future Antichrist.  We are headed into war now, and this war will bring this final global order together for the final time.  What Europe could not attain before WWI and WWII they could after.  In order for the final world order to come about, there must be another world war to devastate  the land and convince the peoples that nationalism and self determination are to blame.  Each time these supranational organizations were able to commandeer more power than the previous and were able to erode sovereignty of the individual nation states.

Jaszi goes into detail that the assassination of the archduke Ferdinand and his wife was not the sole cause of the WWI, but only the straw that broke the camel’s back.  The internal disputes, rot, and corruption of the Habgsburg monarchy and its Parliament were going on long before.  There was corruption going on at all levels of government and nationalities were pitted against one another through erroneous propaganda, government favoring, and self interests.  No Empire could survive this type of constant undermining. 

10.“The spirit of militarism in the Habsburg Empire was far more than in the western states an instrument for the maintaining of inner cohesion than of a defense against foreign aggressors.” (page 137)

11.“In spite of the tragic collapse of the Habsburg experiment, this problem of state organization has still a great theoretical and practical importance.  For the question is, whether the Danubian experiment was due to fail because it was in its essence an organic, almost a natural impossibility, or because it was only a consequence of factors depending on will and insight which could have been avoided by a more advanced statesmanship, a more clear-sighted policy, and a better organized civic education.  The answer to this question will determine almost sub specie aeternitatis the fate of all future experiments intending to unite various and antagonistic national wills into a harmonious international order, protecting and supplementing the interest of each nation.  This problem is not only a problem of the remote future but the vital problem of those states which were established on the ruins of the Habsburg monarchy, for these new states are not unified nation states but states resulting from the cooperation of different national elements.  At the same time our problem is closely connected with the general problem of Europe.  The saving of that Continent, destroyed by the unbridled forces of nationalism, depends on whether or not we are compelled to accept national antagonisms as final necessities or whether we can eliminate these national rivalries or at least replace them by other methods.” (pages 4,5)

This why the populist uprising in America will be squashed in another world war.

12.“We can even affirm that the unsuccessful experiment of the old Habsburg monarchy affects not only European future but also those problems by which the Far East is menacing the European powers and the United States, because all these problems are intimately connected with a national conflict aggravated by racial and religious antagonisms” (page 5)

13.“This policy of divide et impera, however was not an invention of the Habsburgs but seems to be very deeply rooted in some sad instincts of our human nature.  In ancient Rome “it was an economic principle to foster rather that to suppress dissentions inside of slavedom.  In the same spirit Plato and Aristotle had already warned… not to gather slaves of the same nationality in order not to bring about local alliances and perhaps plots… And curiously enough, I was recently told by a German foreman of a big automobile plant in Detroit that for avoiding strikes they always divide their workers in such a way that in each section workers of various nationalities should be forced to cooperate.” (page 253)

This is the true reason elites push unfettered immigration.

14.“The Habsburg empire became more and more a conglomerate of various nationalistic feelings among peoples which did not know each other but which hated each other bitterly.  The state of the Habsburgs collapsed in the final analysis, because it was unable to offer a real solidarity to its various nations by the help of a system of serious civic education.” (page 449)

Jaszi believed that the collapse could have been stopped if they had vigorously pursued a reformed civic education.  This is why American government is so intent on controlling the educational system.  If the states were to do free will with their education without federal government involvement, then there would rapidly develop a sense of detachment to the union.  This is why our federal curriculum is so anti-traditional and unwilling to teach American’s Christian and European founding because it does not meld with the ethnic minorities’ desires who live amongst us.

Early attempts at economic unity within the Habsburg Empire

15. “During the reign of Charles VI, as Hungarian King Charles III (1711-40), there was beginning a conscious and consequent mercantilistic policy.  Until then every kingdom, province, or crownland constituted an economic unity but now the so-called transito was introduced, that is, measures were taken to make it possible for goods introduced in any of the Habgsburg countries to pass from one into the other without paying custom duties over again.  This policy was energetically continued by later kings and in 1775 it was successful in uniting the Bohemian countries and the Alpine countries (with the exception of Tyrol) in a single custom union.  By and By all the countries grew into a vast united market.  The local merchants of the former periods who supplied only a closely limited area with their goods were replaced by big industrial and agricultural producers who possessed privileges for the whole economic territory.” (page 58).

16. “Therefore, the dynasty as a matter of fact employed by preference foreigners, very often adventurers, who sought for bread and glory in the imperial service.” (page 163)

There is nothing more maddening to a nations’ populace then to have the government prefer or give elevated status to foreign nationals.  This is not how you garner admiration and loyalty from your populace.  This is happening in the United States with affirmative action and other refugee programs which favor the foreign nations as they fail to neglect their own people.  If you are severely impoverished, which the majority of the Austro-Hungarians were, they were very resentful of the few jobs being given to foreigners.

17.“Nothing can show more clearly the abnormal state condition of the Danube monarchy than the fact that the strong parliamentary progress of Socialism could be regarded as a gain for the state.” (page 177)

18. “The truth is that national solidarity vanquished class solidarity.” (page 184)

This is why even though they had rudimentary labor unions forming for the workers, they could never unite fully against the corporations on account that the people were different nationalities.  Money is not enough to unite a people.  The true pillars that must be established for a one world order to be successful are: money, religion, and technology combined.

19.“it is now the general opinion both in Europe and America, expressed by the International Manifesto of the leading bankers, that the dismemberment of the Austro-Hungarian customs union was a great disadvantage to all the peoples concerned.  That is also the chief argument for all those efforts which endeavor to use propaganda for the re-establishment of the Habsburg empire under an economic disguise.” (page 185)

20.“For instance the Viennese Rothschild group or the Wiener bankverein controlled several of the most influential Budapest banks.” (page 204).

21.“It was quite easy to monopolize the industrial and mining production by the means of trust-like organizations called ‘cartels’.  It was characteristic of these conditions that no less than fifty-six special Austro-Hungarian cartels were functioning in the customs union, not taking into account the international cartels and many local similar concerns of Austrians or Hungarians alone.  The cause of this phenomenon was that on the one hand, the finance capital enforced high protective duties, and on the other, it formed cartels in order to monopolize the advantages of protection.  This monopolistic system of industry concentrated around the Viennese finance capital had two great detrimental effects- two results which contributed to the undermining of a veritable free-trade policy.  The one damaging result was the checking influence of the cartel system upon industrial development.  In the evolution of capitalism we can well discriminate between a lower and a higher stage.  The lower, the primitive type of capitalism, is characterized by the effort of the capitalists to net high profits without productive investments by usurious loans.  Or, if they are compelled to make productive investments, they try to gain big returns not so much by increasing production as by raising the prices and lowering wages.  The other, the more evolved type of capitalism obtained its highest expression in the American Fordism, the basic principle of which is high wages, expansion of production through the cheapness of the products, and a very high efficiency of labor.  The capitalism of the former Austro-Hungarian monarchy belonged to the lower primitive type of capitalism.  This usurious tendency of Austro-Hungarian capitalism was partly a results of the shortage of capital and of the high rate of interest.  But it was still more accentuated by the system of protection, and the cartel monopolies.  At the same time the cartel system impeded the development of industry in another direction.  When the ruling ‘big banks’ established their cartels, they took care that inside of the customs union no new enterprise should be created which could rival their plants….The Hungarian party of independence put in its program the establishment of a distinct Hungarian bank of issue…A Hungarian enterprise troubling the interests of the Rothschild group could scarcely obtain a loan.” (pages 205-206).

22.“The fragmentary parcels of land cultivated by the peasants were scattered confusedly beyond the territory….in order to reach his tiny property the peasant was compelled to walk several hours without roads over ditches without bridges.  The mammoth forest of the estate pressed hard on the village and projected into the churchyard.  If the calf or the hen of the peasant strayed into it, he was heavily fined.  The hand of the estate is everywhere… If the little boy gathers some faggots in the forest in order to prepare fire because his sick mother is quivering with fever, that is a grave crime for which he must be sentenced….If the little girl picks some strawberries or mushrooms, the inspector catches her, tears off her clothes and takes away her plate…..The colossal forest served exclusively for hunting purposes.  A forest economy is almost unknown in this primeval forest latifundium (land baron owned estates) of 200,000 holds.  Game is the only care of the administration.  The sovereign stag should not be disturbed in its family entertainments….What is a Ruthenian compared with it?  Only a peasant!  The hunting periods lasted two weeks.  There come some of the Schwarzenbergs, of the Kolowrats, of the Liechtensteins, they tell each other their hunting adventures, it was so last year, it was so the year before….In order that they should tell each other all this in the smoke of excellent Havana cigars in the flickering light of a fire place, 70,000 Ruthenians must be doomed to starvation by the army of the officials.  The deer and the wild boar destroy the corn, the oats, the potato, and the clover of the Ruthenian (the whole harvest of his tiny lot of half an acre)…..Their whole yearly work is destroyed.  The people sow and the deer of the estate harvest.” (page 235)

side note:  A Ruthenian is a Ukrainian; a Magyar is a Hungarian; Galicia was southern Poland/northern Czechoslovakia.

The Roots of Anti-Semitism

1.“….The German liberal party during its long government sacrificed entirely the social interests of the big masses to the leading financial groups, mostly Jewish, a tendency which resulted in the formation of a Christian socialist anti-semitic party under the energetic leadership of Karl Leuger, the later mayor of Vienna (1897-1910).” (page 114)

The peoples, especially the peasant classes were aware that the government was bought and paid for by the financial interests, mainly the banking industry, which was predominantly Jewish.  This is because the Jewish element was restrained to interest loan occupations only (by the Catholic Church).  It was also because the Jewish elements, did not assimilate nor did they acquire a bond with the land as the peasant class did whom were mainly agricultural in their occupations.  The Jews, from years of wandering from country to country, developed pawn interest loans simply because it was an occupation that could be easily moved from one place to another.  This favoring however, instigated much resentment amongst the populace whom felt these Jewish interests, having no interest in becoming one of their own countrymen, were dictating all policy within the empire.  It does not sit well when a people feels they are being led by a foreign element that has interests which are not patriotic or nationalistic which ultimately does not benefit the populace within that nation.  Leuger was mayor during Hitler’s early years as a vagabond in Vienna and Hitler was influenced heavily by the Christian socialist anti-Semitic rhetoric.

2.“The real soul of this movement in the eighties of the last century was Karl Leuger, the later Viennese Mayor, who combined skillfully his enthusiastic Catholicism with the interests of the dynasty and of a so-called Christian Socialism, the edge of which was mainly directed against the Jewish better middle classes the financial and political preponderance of which pressed heavily on the working people and small bourgeoisie of the bigger cities, especially of Vienna.” (page 159).

3.“The Jews, with a total of 1.3 million (4.6%), lived far too remote from Christian society to influence its general religious texture.” (page 160)

4.“Finally a Jewish minority of 5 per cent was a very active element in all the intellectual spheres of Hungarian society.” (page 161)

5.“This capitalism, proceeding with growing energy and assuming more and more an outstanding Jewish color, became a very efficacious force in the unification and cohesion of the monarchy.  The empire gained through it a unity of economic life, a more complete division of labor, and a more efficient credit system.  It is one of the most interesting problems by which foreign observers are often startled as to why these powerful economic advantages were not able to maintain the unity of the monarchy and why the capitalistic forces of integration did not become victorious over the forces of national particularisms.” (pages 170-171)

6.“Austrian capitalism, the leading elements of which were intimately connected with the liberal movement, gained a special color by the fact (and in Hungary this feature was even more outstanding) that among its members and especially the ruling financial powers, the Jewish element was predominant.  This phenomenon had two historical causes: the one was that, until the modern constitutional era, the Jews were excluded from all other than financial activities.  The other shows us a continuous migration of Jewish capitalists from west to east, due to the fact that a national capitalism was developed in the Western countries which tried to oust their Jewish rivals.  As William Roscher, the great German economist, characterized this process, “For many centuries the Jews were commercial trustees of the newer nations, also to the advantage of these latter.  But every tutelage becomes burdensome when it lasts longer than the immaturity of the pupil.”  That is the reason why a considerable part of Jewish capitalism moved toward the east where it found an unrivaled opportunity in exploiting the almost virgin resources of the younger states.  Under these circumstances all the abuses of capitalism and its political representatives appeared before the uncritical mass mind as the abuses of “Jewish” capital, the more as the leading daily press stood largely under the control of the financial powers.  In Austria this situation led to an acute anti-Semitic movement under German nationalist and Christian Socialist flags.  All the shortcomings and abuses of the capitalistic system were demagogically denounced as crimes of “Jewish liberalism”.  Especially since the great crisis of the stock exchange of 1873 which followed the bogus activity, this tendency assumed dangerous proportions and finally swept away the liberal party from Austrian public life.  In vain the widely spread co-operation of the feudal classes in the financial scandals was demonstrated.  In vain it was pointed out that in the most outstanding “Jewish” enterprises 13 princes, 64 counts, 29 barons, and 21 nobles were participating, who lent their aristocratic names for opulent profits of the hazardous business men: public opinion saw only the Jewish capitalists and their press as the real responsible parties.” (page 172)

7.“Be that as it may, it is certain that the reigning German and Hungarian states possessed an extremely passionate, loud, and bigoted Jewish bodyguard which extended far beyond the circles of capitalism.  This attitude of the Jews augmented the exasperation of the oppressed nationalities against the state and sanctioned at the same time the anti-Semitic currents increasing, in a pathological manner, the centrifugal forces of the monarchy.  So, for instance, both in Austria and in Hungary, the Jewish capitalistic press took the crudest jingoist attitude in the national struggles and was a chief obstacle to a reasonable compromise among the rival nations.  This press denounced all serious efforts toward compromise and was the loudest in Hungary in the unveiling of the so-called ‘treasons of the nationalities’ and in fomenting the trend of national chauvinism against Austria and the joint institutions of the monarchy.  This attitude, especially in Hungary, was so manifest that Leuger and his anti-Semitic friends liked to declaim on the terrorism of “the Judeo-Magyars”. (page 174)

8.“Nicholas Bartha, one of the most brilliant and influential publicists of Hungary at the end of the last century… Bartha was not only a conservative but an almost reactionary politician who had great responsibility in the increasing acuteness of the Rumanian question in Transylvania in consequence of his ultra-chauvinistic policy.  This man wrote a book, in 1901, entitled In the land of the Kazars (“Kazar” was the nickname of the Jewish usurers in this region) which had a great repercussion throughout the whole country.” (page 234)

9.“Besides usury and alcoholism pressed heavily on the whole peasant population…. The Jew is the entrepreneur and he often pays to his lord 50 per cent higher rent that those aristocrats pay to the state….but the great lords understand very well how to divert the odium of the exploitation to the Jewish innkeepers…The truth is that the Jewish usurers and the Polish aristocrats had the same responsibility for the expoltation and poisoning with alcohol of the Galician people.” (page 236)

Jászi, Oscar. The Dissolution of the Habsburg Monarchy. Univ. of Chicago Press, 1966. 

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