1867-1919 - Political Life
Franz Joseph appointed Gyula Andrassy -- a member of Deak's party -- prime minister in 1867. His government strongly favored the Compromise of 1867 and followed a laissez-faire economic policy. Guilds were abolished, workers were permitted to bargain for wages, and the government attempted to improve education and construct roads and railroads. Between 1850 and 1875, Hungary's farms prospered: grain prices were high, and exports tripled. But Hungary's economy accumulated capital too slowly, and the government relied heavily on foreign credits. In addition, the national and local bureaucracies began to grow immediately after the compromise became effective. Soon the cost of the bureaucracy outpaced the country's tax revenues, and the national debt soared. After an economic downturn in the mid-1870s, Deak's party succumbed to charges of financial mismanagement and scandal.
As a result of these economic problems, Kalman Tisza's Liberal Party, created in 1875, gained power in 1875. Tisza assembled a bureaucratic political machine that maintained control through corruption and manipulation of a woefully unrepresentative electoral system. In addition, Tisza's government had to withstand both dissatisfied nationalities and Hungarians who thought Tisza too submissive to the Austrians. The Liberals argued that the Dual Monarchy improved Hungary's economic position and enhanced its influence in European politics.
Tisza's government raised taxes, balanced the budget within several years of coming to power, and completed large road, railroad, and waterway projects. Commerce and industry expanded quickly. After 1880 the government abandoned its laissez-faire economic policies and encouraged industry with loans, subsidies, government contracts, tax exemptions, and other measures. The number of Hungarians who earned their living in industry doubled to 24.2 percent of the population between 1890 and 1910, while the number dependent on agriculture dropped from 82 to 62 percent.
However, the 1880s and 1890s were depression years for the peasantry. Rail and steamship transport gave North American farmers access to European markets, and Europe's grain prices fell by 50 percent. Large landowners fought the downturn by seeking trade protection and other political remedies; the lesser nobles, whose farms failed in great numbers, sought positions in the still-burgeoning bureaucracy. By contrast, the peasantry resorted to subsistence farming and worked as laborers to earn money.
Tisza directed the Liberal government until 1890, and for fourteen years thereafter a number of Liberal prime ministers held office. Agricultural decline continued, and the bureaucracy could no longer absorb all of the pauperized lesser nobles and educated people who could not find work elsewhere. This group gave its political support to the Party of Independence and the Party of Forty-Eight, which became part of the "national" opposition that forced a coalition with the Liberals in 1905. The Party of Independence resigned itself to the existence of the Dual Monarchy and sought to enhance Hungary's position within it; the Party of Forty-Eight, however, deplored the Compromise of 1867, argued that Hungary remained an Austrian colony, and pushed for formation of a Hungarian national bank and an independent customs zone.
Franz Joseph refused to appoint members of the coalition to the government until they renounced their demands for concessions from Austria concerning the military. When the coalition finally gained power in 1906, the leaders retreated from their opposition to the compromise of 1867 and followed the Liberal Party's economic policies. Istvan Tisza -- Kalman Tisza's son and prime minister from 1903 to 1905 -- formed the new Party of Work, which in 1910 won a large majority in the parliament. Tisza became prime minister for a second time in 1912 after labor strife erupted over an unsuccessful attempt to expand voting rights.
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
