It was only too well known in diplomatic circles that Russia coveted
the railroads of Graustark, as a means of throwing troops into a
remote and almost impregnable portion of Austria. If the debt were
paid promptly, it would be impossible, according to international
law, for the great White Bear to take over these roads and at least a
portion of the western border of the principality. Obviously, Austria
would be benefitted by the prompt lifting of the debt, but her own
relations with Russia were so strained that an offer to come to the
rescue of Graustark would be taken at once as an open affront and
vigorously resented. Her hands were tied.

The northern and western parts of Graustark were rich with productive
mines. The government had built railroads throughout these sections
so that the yield of coal and copper might be given an outlet to the
world at large. In making the loan, Russia had demanded these
prosperous sections as security for the vast sum advanced, and
Graustark in an evil hour had submitted, little suspecting the trick
that Dame Nature was to play in the end.

Private banking institutions in Europe refused to make loans under
the rather exasperating circumstances, preferring to take no chances.
Money was not cheap in these bitter days, neither in Europe nor
America. Caution was the watchword. A vast European war was not
improbable, despite the sincere efforts on the part of the various
nations to keep out of the controversy.

Nor was Mr. Blithers far from right in his shrewd surmise that Prince
Robin and his agents were not without hope in coming to America at
this particular time. Graustark had laid by barely half the amount