THE DANUBE REGION UNTIL 1918: MOSAIC OR MELTING POT OF CENTRAL EUROPE

Budapest, market hall

The Canadian historian William Hubbard showed how tightly social, economic and demographic developments in the second half of the 19th century in Cisleithania, the western Austrian part of the Austro-Hungarian Empire were linked to the migrational processes and the minorities issue. In the seven biggest cities in this area, namely Vienna, Graz, Trieste, Prague, Brno, Lemberg/Lvov/Lviv and Krakow, the share of the population born in these cities was rather small. As in other European and American cities urbanisation was fed by migration from the countryside, not by higher birth rates in the cities. In Vienna you had in 1880 a share of immigrants of 65 %. Especially in Vienna immigration was a hot issue of social and political debate. The dynamisms of migrational processes and the political, economic and social status of minorities in the 19th and 20th century were undoubtedly due to urbanisation and industrialisation processes. Immigration followed the allocation of capital, but also traditional migrational processes continued that added to the numbers of already existing minority groups dispersed across the Danube region. One should not forget that migration was already a central phenomenon of the pre-industrial society here.…

AUSTRIAN FINANCIAL INSTITUTIONS IN CEE DURING THE INTERWAR YEARS

Österreichische Postsparkasse, Vienna, founded 1883 “k.k. Österreichisches Postsparkassenamt”, architect: Otto Wagner (built 1904-1912)

As a result of the First World War the persistent shortage of domestic and foreign capital for investment in the economies of Central and Eastern Europe, as mentioned above, worsened. At the same time, due to the devastation of the war the demand for capital rose dramatically. After the collapse of the Austro-Hungarian Empire in 1918 new stock exchanges were established in the successor states of the former empire. The scene had been dominated by the Vienna Stock Exchange and to a much lesser degree the Prague Stock Exchange, founded in 1871. In the 1920s new stock exchanges opened up in Belgrade, Bratislava, Brno, Ljubljana, Warsaw and Zagreb, which competed with Vienna. Their main business was in dealing in securities, bills and foreign currencies and not shares. The same was true for the Vienna Stock Exchange during the interwar years. Only in the years 1926/27 did the currency situation stabilise after the hyper-inflation in the successor states of the Habsburg Empire after the First World War and central banks had been established in all new states. The finances of Austria, Hungary, Poland and Bulgaria were under international supervision and the new central banks had to be independent from the state, but they had to act as lenders of last resort together with the respective governments. Especially in Austria the “Franc Speculation” further destabilised the financial scene.…

THE CONCEPT OF CENTRAL EUROPE

Cesky Krumlov, Czech Republic

If there is a distinctive division, where does east and west meet? There is an ancient invisible line from Gdansk in the north to Trieste in the south that separates the two parts with remarkable continuity from the eastern border of the Carolingian Empire to the frontier between the Austrian and Hungarian part of the Habsburg Empire to the western border of “real existing socialism” after 1947. From the Dalmatian coast to Lithuania there is a line dotted with fortresses, frontier settlements, strategic towns and historic cross roads. For centuries this area has been a point of encounters of Germans and Slavs, Austrians and Turks, Catholics and orthodox Christians. But it falls across a terrain, where peoples for centuries have met, mixed and fought. Contrary to other areas in Eastern Europe, Bohemia was until 1948 a flourishing component in the Industrial Revolution, which marked the western part off from the rest of the continent more than anything else, and it was firmly settled in the western European culture.…