Hungary lost most of her hydraulic power, forests, paper-mills, cereals, potatoes, honey, silk-cocoons, coal, and everything else that went to make up the economic life of this Danubian region centered at Budapest. In the era of steam-power and world markets, Hungary, like other states, had developed as a whole, each region fitting in a scheme of things that made the different parts dependent upon one another. Commerce and manufacturers were concentrated at Budapest, which was equipped with transportation, warehouses, and banks to handle the business of the entire country. Fiume had been the common port for all the Hungarian provinces. Now in her shorn state, cut off from access to the sea, and with the former subject regions raising tariff-walls against her, what was left of Hungary, and especially the city of Budapest, seemed to be condemned to ruin. But when one visits Hungary three years after the signing of the Treaty of Trianon and asks for an honest answer to the question, “Is the present Hungary a hopeless proposition, a state that cannot live?” one does not get a categorical affirmative. Nor have any leaders whom I interviewed declared that the payment of reparations was impossible, provided a definite and reasonable sum was finally agreed upon. When I probe, and try to get at the bottom of the grievances, I discover that my Hungarian friends are invariably comparing the present situation, and its calamities, with what Hungary used to be. Like the Turks, the Hungarians won and maintained by superior force a privileged position in a vast country which they shared with other peoples. They were a dominant race, who tried to impose their language and culture on others. When they fought the Germans to retain their independence and arrived at the compromise of the Dual Monarchy, it did not occur to them that self-government was a privilege as precious and as advantageous to other peoples as to themselves. And, now that they have lost their dominant position in the same way in which they gained it, that is, by war, it is hard for them to reconcile themselves to a more humble station in life. They accepted the treaty, for they did not intend to commit national suicide. But after the power to impose their rule upon others has gone, they retain the curious feeling that they still ought to be considered as possessing the inalienable right to all the regions they once ruled!