Dorothy Thompson

San Francisco Bulletin/December 12, 1921

VIENNA, Dec. 12. — More than a week since the first riot occurred, the city now is quiet and a semblance of order has been restored. Many of the shops and cafes still are closed in order to make repairs. These forced closings are greatly embarrassing to foreigners who are hard put to find places to eat. Consternation was caused by the announcement that shopkeepers and hotel proprietors intend to demand full indemnity from the government, while those shopkeepers, whose property was not injured, are taking up collections to aid those who were attacked.

The government is holding conferences with labor leaders who are demanding a revamping of the whole government fiscal policy and the substitution of a Social-Democratic scheme which demands, first, the gradual abolishment of government food subsidies by January 1; second, the seizure of all gold supplies, and, third, the seizure of all foreign holdings and the establishment of state control of the money market.

Will Concede Demands

I am reliably informed the government will concede most of the demands and this possibility is causing great consternation in industrial circles, many industries having large amounts of foreign holdings in order to purchase raw materials.

Significant is the feeling against America in some circles where America is held responsible for being the only nation refusing to postpone the lien on the Austrian relief debt, thus preventing the release of credits for Austria. Influential Americans are bringing pressure to bear on the State Department to obtain immediate postponement of the lien. No well-informed person believes the disturbance is over. The condition of the masses, the attitude of labor, and the sympathy among the equally miserable middle classes for the’ starving make fresh outbreaks inevitable unless there is speedy amelioration.

A persistent rumor prevails here of a pending general strike. Although the majority are against it, the more radical bodies, particularly the metal workers, are likely to start a wire strike similar to the demonstration of the telephone and telegraph mechanics Tuesday which absolutely isolated Vienna from the outside world as well as severing internal communications for the entire day.

The strike was against the abolishment of the 5,000 kronen monthly food subsidy from the government. Sporadic raids continued almost all week, though the police were strongly reinforced since the riots and now have the situation seemingly well in hand. The growing bitterness of one section of the population against the other manifests itself in many ways. Just now the butchers are the main point of attack from the population because of the sudden and enormous rise in meat prices, but the butchers are blaming the middlemen for the acute food situation, which is greatly enhanced by the appalling housing conditions. Eighty-two thousand Viennese homeless are living in one or two rooms with other families unable to move because of no available lodgings. A mass meeting, held a few days ago, adopted a bitter resolution against foreigners demanding their expulsion and threatening direct action if no government measures were taken by the end of this month.

 US May Assist

No official announcement of the result of the government negotiations with the Socialist leaders has as yet been made, this adding to the general unrest. The only rays of hope this week come from America in the announcement that the government is urging Congress to pass the Mellon bill, permitting America to renounce financial claims on Austria, and also the announcement that America will participate in the international economic conference to stabilize exchanges.