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lavia, and had Germany and Austria won, a new constituent of Central Europe was to have been inaugurated with its capital of Zagreb. The name Jugo-Slavia was familiar to the Croats and popular with them before the Serbs adopted it. The Croats think that because they are more educated than the Serbs they should be the dominant party in the government of the new State. The quarrel is aggravated by religious difference, Croats being Roman Catholics and Serbs Orthodox. A number of the separatist leaders, the chief of whom is Radic, an ex-bookseller, languish in gaol. These are evidently self-centred people. If they think that Europe would tolerate another independent Slav State with passports, frontiers, tariffs, armies, and the rest, surely they are mad. And if on the other hand, they would like to revert to ruined Austria and have the value of all their money reduced ten times, surely they are not very sane. Or if they think that they who suffered little should reap the major benefits of the war-victory, they are certainly pitiable egoists. What is lacking in the new State is goodwill and the spirit of co-operation. Serbia is terribly hampered by lack of loyalty in her constituent elements. There is an impression of great uncertainty and instability. The general bad health of Europe shows sharply at Belgrade. The cost of living is irrationally high. There is something of the atmosphere of Russia in 1916. Beggars swarm about the restaurants and cafes. Cabmen, hawkers, and the poor hold one up for absurd prices. The shops have odd sets of goods which seldom correspond to one's desires. The value of the dinar fluctuates violently, and offers golden opportunities to the many speculators. The commonest trade-establishments are small banks and bucket-shops; they range in fours and fives before the eyes. The Government is very poor, and never feels out of financial difficulties. "We are always faced with bankruptcy in three months," said Dr. Yannic in conversation. The Government has been very hospitable to the Russians, of whom it has almost 60,000 on its hands. It feeds them and tries to place them where they can do work. It treated with Wrangel for the establishment of 20,000 Cossacks to be planted along the marches of Albania, and would have loved to have them, but has not as yet been able to take them for lack of money. Serbia has done more for Russia than any other nation. "We've received not a
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