The princess smiled in the manner of those who are satisfied with something they have done.

"The problem is solved, monsieur!" she said. "This morning I shipped my boy to where the cow is."

There was no longer any doubt that food regulation was on in real earnest. When a woman allied to the imperial house was unable to get for her child more milk than some other mother could get, things were indeed on the plane of equity. That every person should thereafter get his or her share of the available store of bread is almost an unnecessary statement.

The Austrian civil authorities had not made a good job of food administration. They were too fond of the normal socio-economic institutions to do what under the circumstances had to be done, and were forever afraid that they would adopt some measure that might bring down the entire economic structure. And that fear was not unwarranted, by any means. The drain of the war had sapped the vitality of the state. Though Austria was for the time being a dead tree, the civil administrators thought that a dead tree was still better upright than prostrate.

Emperor Charles had surrounded himself with young men, who were enterprising, rather than attached to the interests of the privileged. Among them was a man known as the "Red Prince." It was not the color of hair that gave this name to Prince Alois Lichtenstein. Odd as it may sound, this scion of one of the most prominent families in Europe is an ardent socialist in theory and to some extent in practice, though not anxious to be known as one. He holds that the chief promoters of socialism the world over are professional politicians who have seized upon a very valuable socio-economic idea for the purpose of personal promotion, and that under these circumstances he cannot support them.

His influence with the new Emperor was great, and led to a rather "unsocialist" result—the appointment of a military food-dictator, General Höfer, a member of the Austro-Hungarian general staff.

It was argued that equity in food distribution could be effected only by placing it in charge of a man who would treat all classes of the population as the drill-sergeant does his men. The military food-dictator had no favors to grant and none to expect. General Höfer acted on this principle, and despite the fact that he was handicapped by a top-heavy regulation machine and a shortage in all food essentials, he was shortly able to do for Austria what Dr. Karl Helfferich had done for Germany.

In speaking here particularly of Austrian regulations when the crisis came I have a special objective. I am able to give in this manner a better picture of what was done throughout Central Europe. The necessity for a certain step in food regulation and the modus operandi move in a narrower sphere. In Germany the situation had been met more or less as its phases developed; in Austria and Hungary this had not been done. There had been much neglect, with the result that all problems were permitted to reach that concrete form which extremity was bound to give them. So many threads had been pulled from the socio-economic fabric that holes could be seen, while the Germans had always managed in time to prevent more than the thinness of the thing showing.

The profit system of distribution manages to overlook the actual time-and-place values of commodities. Under it things are not sold where and when they are most needed, but where and when they will give the largest profit. That the two conditions referred to are closely related must be admitted, since supply and demand are involved. But the profit-maker is ever more interested in promoting demand than he is in easing supply. He must see to it that the consumer is as eager to buy as the farmer is anxious to sell, if business is to be good. This state of affairs has its shortcomings even in time of peace. What it was to be in war I have sufficiently shown already.

The regulations to which the food crisis of the fall of 1916 gave justification laid the ax to the middleman system of distribution. The several governments empowered their Food Commissions and Centrals to establish shortcuts from farm to kitchen that were entirely in the hands of the authorities. Though the Purchasing Central was even then not unknown, it came now to supplant the middleman entirely.