Category Archives: economics

Budapest Inflation, 1945

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 317-318:

The Hungarian national budget over the next eighteen months set aside as reparations five times more than was allotted for post-war reconstruction for Budapest. UN officials estimated three years after the war that total losses, calculating reparations, occupation costs and looting, amounted to 40 per cent of national income.

The currency collapsed – as it did in many places immediately after the war. Yet Hungary beat all records in terms of inflation. In July 1945 one US dollar was worth 1,320 pengős; by 1 November that year the exchange rate was one US dollar to 296,000. By spring 1946 hyperinflation took the rate to 4.6 quadrillion to the dollar (that is an almost unimaginable 15 noughts, 158,000 per cent a day). Most people in Budapest refused to be paid in money. As buildings were being repaired throughout the city, the walls in many rooms were decorated with large banknotes in fantastical denominations. In his marvellous book My Happy Days in Hell, György Faludy described the effect this had on daily life. A year after the war ended his publisher brought out a new edition of one of his books. He was paid 300 million pengős (which before the war would have been worth something like US$60 billion). When he collected his money, in cash, knowing it would have devalued by the time he had walked through Budapest, he ran to the central market a few blocks away. He spent the entire amount, he said, ‘on one chicken, a litre of olive oil and a handful of vegetables’. On 5 July a 100-quintillion-pengő note was issued – that’s twenty noughts; when an elderly gentleman in Budapest received one as wages he used it as part of the lining of his hat.

The currency was stabilized, largely with the help of the Americans. In April 1944, a fortnight after the German occupation, the Nazis had taken US$40 million ($570 million at 2022 values) in gold from various Hungarian banks. It fell into US hands at the end of the war and the Americans returned it a year later. Had the gold remained in Hungary at the moment of liberation, it is certain it would have been looted by the Red Army.

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Hungary’s First Anti-Jewish Laws

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 272-273:

Horthy introduced anti-Jewish laws in Hungary while Hitler was still speaking to tiny groups of disaffected Germans in Munich beer halls. The first legislation specifically to target Hungarian Jews for discrimination was passed on 22 September 1920, barely six months after the admiral was elected regent. It was the Numerus Clausus Act, which restricted the number of Jews admitted to universities to 7 per cent of the total population, effectively ending the legal equality for Hungarian Jews that had been established under the Ausgleich in 1867. This had a profound effect in Budapest, where more than a quarter of the inhabitants at the end of the First World War were Jews – and on the universities. Many young people who could afford to leave went to study abroad, never to return. So did some of the ablest professors – a drain of talent that was never replaced. Horthy was not interested when a few academics, even among his own supporters, objected. ‘Concerning the Jewish question, for all my life, I have been an anti-Semite,’ he wrote to a friend, the future Prime Minister Pál Teleki. ‘I have never made any contact with Jews. I have found it intolerable that here, in Hungary, every single factory, bank, asset, shop, theatre, newspaper, trade, etc., is in Jewish hands.’

The passage of the law was accompanied by a wave of pogroms throughout Hungary. In Budapest a dozen Jews were killed and more than 150 injured during a vicious riot by the far-Right Turul organization, led by the highly ambitious ultra-nationalist politician Gyula Gömbös, who a decade later would become Prime Minister.

In 1925 the League of Nations threatened to impose sanctions and other retaliatory measures against Hungary unless it removed anti-Semitic legislation. Budapest’s Jews begged them not to. The National Jewish Congress of Hungary asked the League not to interfere, for fear of a further backlash against Jews.

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A City of Partition Refugees

From City of Djinns: A Year in Delhi, by William Dalrymple (Penguin, 2003), Kindle pp. 41-44:

I had been living in Delhi for some months before I began to realize quite how many of the people I met every day were Partition refugees. Even the most well-established Delhi figures – newspaper editors, successful businessmen, powerful politicians – had tales to tell of childhoods broken in two, of long journeys on foot over the Punjab plains, of houses left behind, of sisters kidnapped or raped: the ghastly but familiar litany of Partition horrors.

The Puris’ story was fairly typical. Before Partition they had a large town house in Lahore. When the riots came they packed a couple of suitcases, bought their bullock cart and headed off towards Delhi. Their possessions they left locked up in the haveli, guarded by Muslim servants. Like the Palestinians a year later, they expected to come back within a few months when peace had been restored. Like the Palestinians, they never returned.

On arrival in Delhi they found a gutted house in Subzi Mandi, the vegetable bazaar of the Old City. It had belonged to a Muslim family that had fled weeks before. The Puris simply installed a new door and moved in. There were still killings, and occasionally stray bullets ricocheted around the bazaar, but gradually the Puris began to find their feet.

‘We acquired slowly by slowly,’ Mrs Puri remembers. ‘My husband started a business making and selling small houses. I knitted woollens. At first it was very hard.’

After a year of carrying water in leaky buckets, the house was connected to the water mains; later the Puris got electricity installed. By 1949 they had a fan; by 1956 a fridge. In the late 1960s the Puris moved to a smart new house in South Extension. They had arrived.

We heard the same story repeated over and over again. Even the most innocuous of our neighbours, we discovered, had extraordinary tales of 1947: chartered accountants could tell tales of single-handedly fighting off baying mobs; men from grey government ministries would emerge as the heroes of bloody street battles. Everything these people now possessed was built up by their own hard labour over the last few years.

The violence totally gutted many of the poorer parts of Delhi, but even the very richest districts were affected. While shoppers looked on, Hindu mobs looted the smart Muslim tailors and boutiques in Connaught Place; passers-by then stepped over the murdered shopkeepers and helped themselves to the unguarded stocks of lipstick, handbags and bottles of face cream. In Lodhi Colony, Sikh bands burst into the white Lutyens bungalows belonging to senior Muslim civil servants and slaughtered anyone they found at home.

In some areas of the Old City, particularly around Turkman Gate and the Jama Masjid, the Muslims armed themselves with mortars and heavy machine guns. From their strongpoints in the narrow alleyways they defied not only the rioters but also the Indian Army. Many of the Muslim families who remain in Delhi today survived by barricading themselves into these heavily defended warrens.

The more I read, the more it became clear that the events of 1947 were the key to understanding modern Delhi. The reports highlighted the city’s central paradox: that Delhi, one of the oldest towns in the world, was inhabited by a population most of whose roots in the ancient city soil stretched back only forty years. This explained why Delhi, the grandest of grand old aristocratic dowagers, tended to behave today like a nouveau-riche heiress: all show and vulgarity and conspicuous consumption. It was a style most unbecoming for a lady of her age and lineage; moreover it jarred with everything one knew about her sophistication and culture.

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Delhi’s Extreme Mood-Swings

From City of Djinns: A Year in Delhi, by William Dalrymple (Penguin, 2003), Kindle pp. 35-38:

Delhi had many failings, but I had never felt it was a violent city. In all the time I had spent in the dark mohallas (quarters) of the old walled city I had never once felt threatened. There were no areas that I felt uneasy to visit after sunset. Instead I had always found Delhi-wallahs, particularly the poor, remarkable for their gentleness and elaborate courtesy. Wherever we went, complete strangers would invite Olivia and me to sit and talk and share a glass of tea with them. To one brought up on a diet of starchy English reserve this habitual kindness of the Delhi-wallah was as touching as it was strange.

Yet as Balvinder and Sandhu could witness, when provoked the inhabitants of this mild town could rise up and commit acts of extreme brutality. Men would avert their eyes as next door neighbours were burned alive or disembowelled. The same people who would invite you to share their last plate of food could, with equal spontaneity, lose control and run amok. Then, with equal ease they could return to their bazaars and shops, factories and offices and carry on as if nothing had happened. It was difficult to understand.

Moreover, despite Delhi’s historic reputation as the most cultured town in India, the city’s history was punctuated with many such flashes of terrible, orgiastic violence. It was not just invaders who put the people of Delhi to the sword. During the Middle Ages and throughout the long Mughal twilight the town was continually rent with bloody riots, even small civil wars. Out of the first twelve Sultans, only two died peacefully in their beds; the rest were killed, usually in a horrible manner and almost always by their courtiers or subjects. Invaders like Timur the Lame were able to storm the high walls of the city only because the inhabitants were already busy cutting each others’ throats. The death toll from bazaar disputes such as the eighteenth-century Shoe Sellers’ Riot could run into tens of thousands.

The last great conflagration was Partition. In the dying days of the British Raj, when the subcontinent was split into Muslim-only Pakistan and Hindu-majority India, twelve million people were made refugees. Hordes of non-Muslims – Sikhs and Hindus – fled their ancestral villages in Pakistan; India’s displaced Muslims struck out in the opposite direction. It was the greatest migration the modern world had ever seen. Yet again Delhi was consigned to the flames. Following some of the worst rioting in its history, nearly half of its ancient Muslim population – the descendants of the people who had erected the Qutab Minar and lined the streets to cheer the Great Mogul – packed their bags and headed off to a new country. Their place was taken by refugees from the Western Punjab, among them Mr and Mrs Puri and Punjab Singh. Delhi was transformed from a small administrative capital of 900,000 people to a Punjabi-speaking metropolis half the size of London.

Of the two peoples who had ruled Delhi during the previous thousand years, the British disappeared completely while the Indian Muslims were reduced to an impoverished minority. In the space of a few months, the face of the city was probably changed more radically than at any other time since the Muslims first came to India, a millennium before.

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Budapest in 1919

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 253-256:

The country was renamed the Hungarian Socialist Republic of Soviets – an imitation of Vladimir Lenin’s Bolshevik regime in Russia, with all its expropriations, nationalizations, regimentation and terror. Short and unprepossessing, [Bela] Kun had a squat face, almost no neck and a flaccid mouth. But he was a surprisingly gifted speaker and showed some remarkably practical common sense amid the ideological jargon. A torrent of decrees poured out from the Revolutionary Council, but they were patchily implemented, especially outside Budapest. Not all of them were stupid and Kun’s regime, mainly of passionate young revolutionaries – Kun was one of the oldest in the leadership at the age of thirty-three – were convinced they could out-Lenin Lenin.

The Kun regime’s first decree on 21 March 1919, day one of the Revolution, proclaimed martial law and imposed the death penalty for any acts of ‘subversion’, which meant any opposition to his committee of Soviets. The second day he replaced the existing judicial system with ‘Revolutionary tribunals’ along the lines of those that had operated in the French Revolution.

Red Terror began from the Commune’s first day, presided over by Tibor Szamuely, a sinister figure who modelled himself on Felix Dzerzhinsky, the head of the Russian Soviets’ secret service, the Cheka. He introduced Red death squads – the most feared, active in many parts of Budapest, were the red-scarved and leather-jacketed Lenin Boys led by a sadistic twenty-three-year-old thug, József Czerny. It is estimated that at least 1,000 people were murdered in Budapest and the surrounding area in 133 days.

The Russian Bolsheviks gave the Hungarian Soviet plenty of vocal support and a modest sum of financial backing, but when it faced the prospect of losing power did nothing to intervene on behalf of world revolution or the cause of Communism close-ish to home – Hungary has a border with Ukraine, then still part of the Russian Empire. Romanian and Czech troops invaded Hungary in the summer of 1919 in their battle for independence and nationhood. Between them they controlled nearly half the country by the time the Kun regime collapsed and its leadership fled – most of them to Russia. The Romanians occupied Budapest from 4 August. Three nightmare months ‘of horror and misery as bad as the Soviet Commune followed…it was one of the darkest periods,’ one survivor of the invasion recalled. ‘The Romanians embarked on a systematic programme of looting, expropriation, deportations and terror.’

Children were taken from homes and sent into servitude in Romanian villages and towns. More than 500 Hungarians were murdered by Romanian troops and estimates suggest that 1,000 women were raped. Valuable art treasures, large amounts of agricultural produce and industrial plant were loaded on trains and sent east to Romania. They stole, among other things, 4,000 telephones from private homes they had ransacked. Bands of soldier-looters took railway locomotives and carriages, industrial machinery, and thousands of horses and cattle worth nearly 3 million gold crowns, more than twelve times in value than all the loans Hungary received four years later to get the country back on its feet. The Romanians took treasures from the National Museum, but were prevented from taking more by Brigadier General Harry Hill Bandholtz, the American member of the Allied Control Commission, which was supposed to supervise the Romanian army’s disengagement from Hungary.

Kun escaped in November 1919 and found refuge in Russia. As he left, without a hint of irony, he told a comrade: ‘the Hungarian proletariat betrayed us’ – by ‘us’ he meant the Communists. For a while he was treated as a hero in Soviet Russia, as one of the leading martyrs of the cause of world revolution. He was relatively successful in a series of roles in the Comintern in the 1920s and early 1930s. But Stalin loathed him. He disappeared into the great maw of the Gulag and was shot during the Great Purge in 1938.

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The Bishop and the Navajo “Long Walk”

From Death Comes for the Archbishop, by Willa Cather (Project Gutenberg, 2023; Knopf, 1927), Book 9, Chapter 7:

THE Bishop’s middle years in New Mexico had been clouded by the persecution of the Navajos and their expulsion from their own country. Through his friendship with Eusabio he had become interested in the Navajos soon after he first came to his new diocese, and he admired them; they stirred his imagination. Though this nomad people were much slower to adopt white man’s ways than the homestaying Indians who dwelt in pueblos, and were much more indifferent to missionaries and the white man’s religion, Father Latour felt a superior strength in them. There was purpose and conviction behind their inscrutable reserve; something active and quick, something with an edge. The expulsion of the Navajos from their country, which had been theirs no man knew how long, had seemed to him an injustice that cried to Heaven. Never could he forget that terrible winter when they were being hunted down and driven by thousands from their own reservation to the Bosque Redondo, three hundred miles away on the Pecos River. Hundreds of them, men, women, and children, perished from hunger and cold on the way; their sheep and horses died from exhaustion crossing the mountains. None ever went willingly; they were driven by starvation and the bayonet; captured in isolated bands, and brutally deported.

It was his own misguided friend, Kit Carson, who finally subdued the last unconquered remnant of that people; who followed them into the depths of the Canyon de Chelly, whither they had fled from their grazing plains and pine forests to make their last stand. They were shepherds, with no property but their live-stock, encumbered by their women and children, poorly armed and with scanty ammunition. But this canyon had always before proved impenetrable to white troops. The Navajos believed it could not be taken. They believed that their old gods dwelt in the fastnesses of that canyon; like their Shiprock, it was an inviolate place, the very heart and centre of their life.

Carson followed them down into the hidden world between those towering walls of red sandstone, spoiled their stores, destroyed their deep-sheltered corn-fields, cut down the terraced peach orchards so dear to them. When they saw all that was sacred to them laid waste, the Navajos lost heart. They did not surrender; they simply ceased to fight, and were taken. Carson was a soldier under orders, and he did a soldier’s brutal work. But the bravest of the Navajo chiefs he did not capture. Even after the crushing defeat of his people in the Canyon de Chelly, Manuelito was still at large. It was then that Eusabio came to Santa Fé to ask Bishop Latour to meet Manuelito at Zuñi. As a priest, the Bishop knew that it was indiscreet to consent to a meeting with this outlawed chief; but he was a man, too, and a lover of justice. The request came to him in such a way that he could not refuse it. He went with Eusabio.

Though the Government was offering a heavy reward for his person, living or dead, Manuelito rode off his own reservation down into Zuñi in broad daylight, attended by some dozen followers, all on wretched, half-starved horses. He had been in hiding out in Eusabio’s country on the Colorado Chiquito.

It was Manuelito’s hope that the Bishop would go to Washington and plead his people’s cause before they were utterly destroyed. They asked nothing of the Government, he told Father Latour, but their religion, and their own land where they had lived from immemorial times. Their country, he explained, was a part of their religion; the two were inseparable. The Canyon de Chelly the Padre knew; in that canyon his people had lived when they were a small weak tribe; it had nourished and protected them; it was their mother. Moreover, their gods dwelt there—in those inaccessible white houses set in caverns up in the face of the cliffs, which were older than the white man’s world, and which no living man had ever entered. Their gods were there, just as the Padre’s God was in his church.

And north of the Canyon de Chelly was the Shiprock, a slender crag rising to a dizzy height, all alone out on a flat desert. Seen at a distance of fifty miles or so, that crag presents the figure of a one-masted fishing-boat under full sail, and the white man named it accordingly. But the Indian has another name; he believes that rock was once a ship of the air. Ages ago, Manuelito told the Bishop, that crag had moved through the air, bearing upon its summit the parents of the Navajo race from the place in the far north where all peoples were made,—and wherever it sank to earth was to be their land. It sank in a desert country, where it was hard for men to live. But they had found the Canyon de Chelly, where there was shelter and unfailing water. That canyon and the Shiprock were like kind parents to his people, places more sacred to them than churches, more sacred than any place is to the white man. How, then, could they go three hundred miles away and live in a strange land?

Moreover, the Bosque Redondo was down on the Pecos, far east of the Rio Grande. Manuelito drew a map in the sand, and explained to the Bishop how, from the very beginning, it had been enjoined that his people must never cross the Rio Grande on the east, or the Rio San Juan on the north, or the Rio Colorado on the west; if they did, the tribe would perish. If a great priest, like Father Latour, were to go to Washington and explain these things, perhaps the Government would listen.

Father Latour tried to tell the Indian that in a Protestant country the one thing a Roman priest could not do was to interfere in matters of Government. Manuelito listened respectfully, but the Bishop saw that he did not believe him. When he had finished, the Navajo rose and said:

“You are the friend of Cristobal, who hunts my people and drives them over the mountains to the Bosque Redondo. Tell your friend that he will never take me alive. He can come and kill me when he pleases. Two years ago I could not count my flocks; now I have thirty sheep and a few starving horses. My children are eating roots, and I do not care for my life. But my mother and my gods are in the West, and I will never cross the Rio Grande.”

He never did cross it. He lived in hiding until the return of his exiled people. For an unforeseen thing happened:

The Bosque Redondo proved an utterly unsuitable country for the Navajos. It could have been farmed by irrigation, but they were nomad shepherds, not farmers. There was no pasture for their flocks. There was no firewood; they dug mesquite roots and dried them for fuel. It was an alkaline country, and hundreds of Indians died from bad water. At last the Government at Washington admitted its mistake—which governments seldom do. After five years of exile, the remnant of the Navajo people were permitted to go back to their sacred places.

In 1875 the Bishop took his French architect on a pack trip into Arizona to show him something of the country before he returned to France, and he had the pleasure of seeing the Navajo horsemen riding free over their great plains again. The two Frenchmen went as far as the Canyon de Chelly to behold the strange cliff ruins; once more crops were growing down at the bottom of the world between the towering sandstone walls; sheep were grazing under the magnificent cottonwoods and drinking at the streams of sweet water; it was like an Indian Garden of Eden.

Now, when he was an old man and ill, scenes from those bygone times, dark and bright, flashed back to the Bishop: the terrible faces of the Navajos waiting at the place on the Rio Grande where they were being ferried across into exile; the long streams of survivors going back to their own country, driving their scanty flocks, carrying their old men and their children. Memories, too, of that time he had spent with Eusabio on the Little Colorado, in the early spring, when the lambing season was not yet over,—dark horsemen riding across the sands with orphan lambs in their arms—a young Navajo woman, giving a lamb her breast until a ewe was found for it.

“Bernard,” the old Bishop would murmur, “God has been very good to let me live to see a happy issue to those old wrongs. I do not believe, as I once did, that the Indian will perish. I believe that God will preserve him.”

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Bishop and Vicar in Navajo Country

From Death Comes for the Archbishop, by Willa Cather (Project Gutenberg, 2023; Knopf, 1927), Book 7, Chapter 3:

Although Jean Marie Latour and Joseph Vaillant were born in neighbouring parishes in the Puy-de-Dôm, as children they had not known each other. The Latours were an old family of scholars and professional men, while the Vaillants were people of a much humbler station in the provincial world. Besides, little Joseph had been away from home much of the time, up on the farm in the Volvic mountains with his grandfather, where the air was especially pure, and the country quiet salutary for a child of nervous temperament. The two boys had not come together until they were Seminarians at Montferrand, in Clermont.

When Jean Marie was in his second year at the Seminary, he was standing on the recreation ground one day at the opening of the term, looking with curiosity at the new students. In the group, he noticed one of peculiarly unpromising appearance; a boy of nineteen who was undersized, very pale, homely in feature, with a wart on his chin and tow-coloured hair that made him look like a German. This boy seemed to feel his glance, and came up at once, as if he had been called. He was apparently quite unconscious of his homeliness, was not at all shy, but intensely interested in his new surroundings. He asked Jean Latour his name, where he came from, and his father’s occupation. Then he said with great simplicity:

“My father is a baker, the best in Riom. In fact, he’s a remarkable baker.”

Young Latour was amused, but expressed polite appreciation of this confidence. The queer lad went on to tell him about his brother and his aunt, and his clever little sister, Philomène. He asked how long Latour had been at the Seminary.

“Have you always intended to take orders? So have I, but I very nearly went into the army instead.”

The year previous, after the surrender of Algiers, there had been a military review at Clermont, a great display of uniforms and military bands, and stirring speeches about the glory of French arms. Young Joseph Vaillant had lost his head in the excitement, and had signed up for a volunteer without consulting his father. He gave Latour a vivid account of his patriotic emotions, of his father’s displeasure, and his own subsequent remorse. His mother had wished him to become a priest. She died when he was thirteen, and ever since then he had meant to carry out her wish and to dedicate his life to the service of the Divine Mother. But that one day, among the bands and the uniforms, he had forgotten everything but his desire to serve France.

Suddenly young Vaillant broke off, saying that he must write a letter before the hour was over, and tucking up his gown he ran away at full speed. Latour stood looking after him, resolved that he would take this new boy under his protection. There was something about the baker’s son that had given their meeting the colour of an adventure; he meant to repeat it. In that first encounter, he chose the lively, ugly boy for his friend. It was instantaneous. Latour himself was much cooler and more critical in temper; hard to please, and often a little grey in mood.

During their Seminary years he had easily surpassed his friend in scholarship, but he always realized that Joseph excelled him in the fervour of his faith. After they became missionaries, Joseph had learned to speak English, and later, Spanish, more readily than he. To be sure, he spoke both languages very incorrectly at first, but he had no vanity about grammar or refinement of phrase. To communicate with peons, he was quite willing to speak like a peon.

Though the Bishop had worked with Father Joseph for twenty-five years now, he could not reconcile the contradictions of his nature. He simply accepted them, and, when Joseph had been away for a long while, realized that he loved them all. His Vicar was one of the most truly spiritual men he had ever known, though he was so passionately attached to many of the things of this world. Fond as he was of good eating and drinking, he not only rigidly observed all the fasts of the Church, but he never complained about the hardness and scantiness of the fare on his long missionary journeys. Father Joseph’s relish for good wine might have been a fault in another man. But always frail in body, he seemed to need some quick physical stimulant to support his sudden flights of purpose and imagination. Time and again the Bishop had seen a good dinner, a bottle of claret, transformed into spiritual energy under his very eyes. From a little feast that would make other men heavy and desirous of repose, Father Vaillant would rise up revived, and work for ten or twelve hours with that ardour and thoroughness which accomplished such lasting results.

The Bishop had often been embarrassed by his Vicar’s persistence in begging for the parish, for the Cathedral fund and the distant missions. Yet for himself, Father Joseph was scarcely acquisitive to the point of decency. He owned nothing in the world but his mule, Contento. Though he received rich vestments from his sister in Riom, his daily apparel was rough and shabby. The Bishop had a large and valuable library, at least, and many comforts for his house. There were his beautiful skins and blankets—presents from Eusabio and his other Indian friends. The Mexican women, skilled in needlework and lace-making and hem-stitching, presented him with fine linen for his person, his bed, and his table. He had silver plate, given him by the Olivares and others of his rich parishioners. But Father Vaillant was like the saints of the early Church, literally without personal possessions.

In his youth, Joseph had wished to lead a life of seclusion and solitary devotion; but the truth was, he could not be happy for long without human intercourse. And he liked almost everyone. In Ohio, when they used to travel together in stagecoaches, Father Latour had noticed that every time a new passenger pushed his way into the already crowded stage, Joseph would look pleased and interested, as if this were an agreeable addition—whereas he himself felt annoyed, even if he concealed it. The ugly conditions of life in Ohio had never troubled Joseph. The hideous houses and churches, the ill-kept farms and gardens, the slovenly, sordid aspect of the towns and country-side, which continually depressed Father Latour, he seemed scarcely to perceive. One would have said he had no feeling for comeliness or grace. Yet music was a passion with him. In Sandusky it had been his delight to spend evening after evening with his German choir-master, training the young people to sing Bach oratorios.

Nothing one could say of Father Vaillant explained him. The man was much greater than the sum of his qualities. He added a glow to whatever kind of human society he was dropped down into. A Navajo hogan, some abjectly poor little huddle of Mexican huts, or a company of Monsignori and Cardinals at Rome—it was all the same.

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Language Change in Budapest

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 198-199:

Demographics as well as politics were changing on both sides of the Danube, principally the rapid decline in the use of the German language – a victory for the cause of Hungarian nationalism. The German populations almost everywhere else in Central and Eastern Europe maintained their German heritage and their separation from the other, mainly Slavic, populations surrounding them – in the Czech lands, Galicia and parts of Romania. In Buda and Pest, if not the rest of Hungary, things progressed differently. The German-Austrian populations in Pest and Buda merged with, and then were absorbed by, the Magyars into a linguistic, political and cultural ‘Hungarianness’.

Another big demographic factor was the rapid influx of immigrants, mostly Jews, into Pest, who adopted the Hungarian language to assimilate into Magyar life. The main political manager of the unification was a prominent son of immigrants whose family had moved to Pest in the 1820s, the vastly experienced (and wealthy) Moritz Wahrmann. In 1869 he was the first Jew elected to the Hungarian Parliament, for the Leopoldváros (Leopoldtown) district of Pest, an area of large town houses and a few commercial businesses in the finance sector, populated by many better-off Jews. A close associate of Andrássy and a moderate Liberal, he steered the legislation uniting the city through Parliament. By then, though, the population of Buda was in decline compared with that of Pest. In 1848 the population was nearly even, with 46 per cent in Buda. Twenty years later this proportion fell to 25 per cent. By 1900 only one in six of the city’s inhabitants lived in Buda.

There was snobbery and parochialism on both sides of the river for decades after the unification. The writer Sándor Márai could be happy only in Buda, close to the Castle district where he lived, until he emigrated to the US after the Second World War. A Pest loyalist profoundly disagreed: ‘The Danube flows along the edge of Budapest, because Buda is not really one half of the capital city but merely a place for excursions,’ wrote Adolf Ágai, founder and long-time editor of the humour magazine Borsszem Jankó and author of the classic Travels from Pest to Budapest. ‘It is naturally right to rejoice in the dawn of tomorrow even while looking back wistfully to yesterday,’ he wrote. ‘Pest represents dynamism of the present and future…the other side is sleepy and secretive…I think highly of Buda but I am not familiar with it. My imagination remains baffled by its monotonous hills and valleys…I have travelled through all the great capitals of Europe but Buda remains a foreign place to me.’

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Austro-Hungarian Ausgleich Quirks

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 191-194:

By the day of the coronation only the most dissenting voices in the court were complaining about the Compromise. Most had come round to accepting it as a consummate act of outstanding diplomacy by the emperor. In Hungary Andrássy and Deák were declared the presiding political geniuses and it was generally agreed that the Hungarians had received from the arrangement more than they had thought possible a few years earlier. ‘Hungary won victory from defeat,’ as Jókai once said. He meant it with a degree of irony, but the phrase has stuck and entire histories of Hungary have been written with the famous phrase as their titles.

The old Hungarian constitution was re-established, giving the Hungarian nobles essentially the same rights they had before 1848, though technically serfdom was abolished. The Empire of Austria became the Dual Monarchy of Austria-Hungary with two capitals, two parliaments (both with limited powers) and two Cabinets. Only the Foreign Minister, the War Minister and the Finance Minister acted for both (and even then only for financial issues that affected the Empire as a whole). It was a highly complex structure that gave the Hungarians far more power as a proportion of their population. But Austria was far richer and paid 70 per cent of Imperial costs.

The system worked, for the moment, by balancing and safeguarding the Magyars’ sense of identity and the dynastic sovereignty of the Habsburgs. It was an intricate and fragile system, which worked for a limited period and gave rise, in Hungary at least, to an extraordinary spurt of prosperity and creativity. Essentially, modern Budapest is the product of the Dual Monarchy – and despite sporadic hostile reactions in Hungary, people were more satisfied with it than frustrated. It had plenty of absurdities: Hungary was under the king-emperor’s rule but was not subject to the Austrian Imperial government, a fact that wasn’t even mentioned in the Compromise Laws that brought the new empire into being and would cause severe problems later.

The nomenclature of ‘dualism’ had to be navigated with extreme tact for there were endless snares and traps. The joint institutions were called ‘Imperial and royal’ (kaiserlich und königlich), or k.u.k. The Hungarians had insisted on ‘and’ to signify that they were equal. The purely Austrian offices were called Imperial-royal k.u.k., but the purely Hungarian ones just royal (königlich, or simply k). But in Budapest the term magyar királyi (Hungarian royal) was in general use, abbreviated as often as not on official signs in Budapest as magy.k.

Hungary was even more caste-conscious and hierarchical than Austria. Titles were important and there were highly complex rules about how to address different grades in the civil service. The first two grades were addressed as Gracious Sir (kegyelmes), grades three to five as Dignified Sir (méltóságos), grades six to nine as Great Sir (nagyságos) and grades ten and eleven as Respectable Sir (tekintetes or cimzetes). This was followed in various ways in a whole range of other managerial jobs and professions, and navigating proper usage was a minefield until after the Second World War.

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Buda and Pest Under Maria Theresa

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 102-104:

The relative peace and stability of Maria Theresa’s reign brought growing prosperity, and living conditions in the twin towns improved, though slowly. Some municipal services began running fairly well. From the 1770s the water supply in large parts of both Buda and Pest were built – first with wooden and then lead pipes. The first postmark in Buda dates from 1752 and the first post office opened in 1762, opposite the Matthias Church in Buda. A music conservatory, a veterinary school and a botanical gardens opened in Buda in the 1780s. In the 1730s in Pest there were very few stone buildings; most were made of puddled clay with thatched roofs. By 1765 453 of the 1,146 known buildings on the Pest side of the river were made of stone, and by 1790 around three-quarters of the 2,250 buildings were.

But there was no boom for business, and no lines of credit available to start one. The Hungarian nobles – the lesser and higher – had a disdain for commerce and trade that the British gentry had lost sometime in the seventeenth century. The few financiers, manufacturers, large-scale traders and better-off artisans of both Buda and Pest invariably came from non-Magyar families, which in any case formed the majority of the twin towns’ population. The earliest, almost immediately after the siege of Buda ended, were a number of Greek families who saw an opportunity – as well as escape from Turkish rule – and established businesses in Pest. Their names, Magyarized from around the 1730s onwards, became well known: Haris, Sina and Nákó for milling and foodstuffs, Sacelláry, Lyca and Mannó for textiles, leather and timber, Agorasztó and Muráthy for the wine trade. Then more came from further afield: Gregerson (Norwegian) and Ganz (Swiss) for clothes; the Swiss traders Aebly, Haggenmacher and several Serbs – Petrovics, Vrányi, Grabowski, Bogosich, Mosconyi – for assorted trades from metalwork to carpentry. Few Magyars were setting up businesses. The real problem, in Buda especially, was that comparatively few people engaged in any kind of trade or industry – according to contemporary economists who studied census figures, just one in eighty-nine people in Hungary at the end of the eighteenth century, compared to one in fourteen in Austria and one in nine in the Lombardy region.

The British naturalist Robert Townson visited Budapest in 1790, as few of his compatriots did then. Pest and Buda were definitely not on the Grand Tour at that time. The Turkish baths of Buda fascinated him; they were not strictly segregated as they would be from the middle of the nineteenth to the twenty-first century, but were more gender-neutral.

The animal fights in Pest, involving bears, cocks and dogs, horrified him. His journal mentions many times how diverse the towns were, with Greek, Balkan and Jewish traders crowding the marketplace. He mentioned one type of business that as much as any other was the defining feature of the Habsburg lands, and crucial to the culture of the city that would become Budapest. Kemnitzer’s was the progenitor of all the coffee houses in the golden age of Budapest and it became an instant success. It was the creation of Johann Kemnitzer, a master tanner, who had done well in his trade and built a large, three-storey house at the Pest side of the pontoon bridge, where Vigadó Square meets Deák Street today. In 1789 he opened the ground floor as a café and within a few months it was the most famous coffee house east of Vienna, with spacious rooms, marble columns, stucco on the arched ceilings, four crystal chandeliers, ornately gilded fireplaces and a fine kitchen.

Townson went there every day during his stay to listen and watch, surprised at the varied clientele who frequented the place: ‘All ranks and both sexes may come; hairdressers in their powdered coats, and old market-women come here and take their coffee or drink their rosolio as well as Counts and Barons…it is an elegant house and very comfortable dinners may be had.’

Another thing that surprised him was that the main language he heard on both sides of the river was German, spoken by Hungarians, Germans, Slavs and Jews on the streets. He almost never heard the sound of Magyar.

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