iefly directed against the renewal of the Ausgleich;
for, as this was the first necessity of state, no government could remain
in office which failed to carry it through. The extreme parties of the
Germans and the anti-Semites were also, for racial reasons, opposed to the
whole system. When, therefore, the government at the end of 1897 introduced
the necessary measures for prolonging the existing arrangements
provisionally till the differences with Hungary had been settled, scenes of
great disorder ensued, and at the end of the year the financial
arrangements had not been prolonged, and neither the bank charter nor the
Customs Union had been renewed. The government, therefore (Badeni having
resigned), had to proclaim the necessary measures by imperial warrant. Next
year it was even worse, for there was obstruction in Hungary as well as in
Austria; the Quota-Deputations again came to no agreement, and the
proposals for the renewal of the Bank charter, the reform of the currency,
the renewal of the Customs Union, and the new taxes on beer and brandy,
which were laid before parliament both at Vienna and Pest, were not carried
in either country; this time, therefore, the existing arrangements had to
be prolonged provisionally by imperial and royal warrant both in Austria
and Hungary. During 1899 parliamentary peace was restored in Hungary by the
resignation of Banffy; in Austria, however, though there was again a change
of ministry the only result was that the Czechs imitated the example of the
Germans and resorted to obstruction so that still no business could be
done. The Austrian ministry, therefore, came to an agreement with the
Hungarians that the terms of the new Ausgleich should be finally proclaimed
in Austria by imperial warrant; the Hungarians only giving their assent to
this in return for considerable financial concessions.

The main points of the agreement were: (1) the Bank charter was to be
renewed till 1910, the Hungarians receiving a larger share in the direction
than they had hitherto enjoyed; (2) the Customs Union so far as it was
based on a reciprocal and binding treaty lapsed, both sides, however,
continuing it in practice, and promising to do so until the 31st of
December 1907. Not later than 1901 negotiations were to be begun for a
renewal of the alliance, and if possible it was to be renewed from the year
1903, in which year the commercial treaties would expire. If this were
done, then the tariff would