id and,
indeed, its disruption was frequently prophesied and as frequently
expected. It is clear, therefore, why every attempt on the part of
the different Balkan nations to readjust their affairs deeply
interested and affected Austria-Hungary. For, even if the empire had
given up all thought of profiting itself by such a readjustment,
there was always the danger that it might lose both in territory and
population. Such a loss, however small, would have seriously
embarrassed the Dual Monarchy. For not only might it have resulted
in further losses of the same nature, but also from a financial
point of view the empire could not afford a diminution of any of its
resources. As national wealth goes, Austria-Hungary cannot be
considered rich by any means, being in this respect almost on an
equal basis with Italy, which has only two-thirds the number of
inhabitants and less than one-half the extent of the Dual Monarchy.

Considering the many difficult problems of political, financial and
economic nature which the possession of colonies created for the
various colonial powers of Europe, Austria might have considered
itself fortunate because of its entire lack of colonies. However,
the problem of Balkan readjustments, upon which we have touched just
now, took the place of colonial problems and brought to Austria as
many difficulties and entanglements as any colony has ever brought
to its possessor. It was along that line that Austria-Hungary was
brought into contact with the other nations of Europe. Of these
Russia was the one most vitally interested in the same questions as
Austria. For of almost every race that inhabited Austria additional
numbers were living in Russia and whatever one country did or
attempted to do in the Near East was looked upon with suspicion by
the other. Turkey, too, of course, was vitally interested and
affected by Austria's policy in the Near East and so was England
ever since its foreign policy had been committed to the principle of
keeping the Near Eastern _status quo_ undisturbed.

Outside of these possibilities of becoming involved with another
nation the Dual Monarchy had long-standing difficulties with Italy.
For, previous to the creation of the present kingdom of Italy,
Austria had possessed large parts of northern Italy, and the loss of
these fertile and rich territories was a severe blow to Austria.
The enmity between the two countries was still more enhanced when,
in 1866, Austria had to g