These were fine phrases, but, like all other pronunciamentos and reforms of October, they came too late. The political censorship had recently been relaxed, and the people, ignorant though they may have been of actual conditions at home, knew what was going on within the borders of their greatest ally. Ten days earlier a strike had been begun at Prague as a peace demonstration, and had involved much of Bohemia and Moravia. At Budapest revolution was in the air, and the Magyar deputies of the Parliament were openly discussing the question of declaring Hungary's independence. On October 17th, Kaiser Karl announced that steps were to be taken to reorganize the Monarchy on a federalized basis.
Two days later President Wilson rejected Baron Burian's peace offer. He declared that the United States Government had recognized the Czecho-Slovak state and the aspirations of the Jugo-Slavs, and he was therefore "no longer at liberty to accept the mere autonomy of these peoples as a basis of peace, but is obliged to insist that they and not he shall be the judges of what action on the part of the Austro-Hungarian Government will satisfy their aspirations and their conception of their rights and destiny as members of the family of nations."
Count Michael Karolyi, leader of the opposition in Hungary, on the same day, in a speech in the lower house of Parliament at Budapest, attacked the alliance of Austria-Hungary with Germany. He admitted that the Central Powers had lost the war, and appealed to his countrymen to "try to save the peace." A memorial was sent to Kaiser Karl declaring that "Hungary must return to its autonomy and complete independence."
The Czechs were already in virtual control in Prague. Magyar Hungary was rotten with Bolshevism, the fruits of the propaganda of returned soldiers and Russian agents. Croatian soldiers at Fiume had revolted. Baron Burian retired and was succeeded by Count Andrassy.
Much of this was known to all Germans when the Kaiser's decree was issued. But they did not know what the Kaiser and his advisers knew, and they did not know why Ludendorff had deserted the sinking ship a day earlier, sending his resignation to the Kaiser and being succeeded as Quartermaster-General by General Groener. All indications had, indeed, pointed to the defection of Austria, but so long as it did not come the Germans--that is, such of them as had not completely lost hope or been infected with internationalist doctrines--still had a straw to cling to.