Lands of the Crown of Saint Stephen
Encyclopedia
The historical term Lands of the Crown of Saint Stephen was used to denote a group of territories connected to the Kingdom of Hungary within Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...

. This system of states is sometimes named Archiregnum Hungaricum ("High Kingdom of Hungary") using a medieval terminology.

Name variants

  • Hungarian
    Hungarian language
    Hungarian is a Uralic language, part of the Ugric group. With some 14 million speakers, it is one of the most widely spoken non-Indo-European languages in Europe....

    : Szent István Koronájának Országai – Lands of the Crown of Saint Stephen, Szent Korona Országai – Lands of the Holy Crown, Magyar Korona Országai – Lands of the Hungarian Crown, Magyar Szent Korona Országai – Lands of the Holy Hungarian Crown
  • Croatian
    Croatian language
    Croatian is the collective name for the standard language and dialects spoken by Croats, principally in Croatia, Bosnia and Herzegovina, the Serbian province of Vojvodina and other neighbouring countries...

    : zemlje Krune svetog Stjepana – Lands of the Crown of Saint Stephen
  • German
    German language
    German is a West Germanic language, related to and classified alongside English and Dutch. With an estimated 90 – 98 million native speakers, German is one of the world's major languages and is the most widely-spoken first language in the European Union....

    : Länder der heiligen ungarischen Stephanskrone – Lands of the Holy Hungarian Crown of (Saint) Stephen
  • Czech
    Czech language
    Czech is a West Slavic language with about 12 million native speakers; it is the majority language in the Czech Republic and spoken by Czechs worldwide. The language was known as Bohemian in English until the late 19th century...

    : Země Koruny svatoštěpánské – Lands of the Crown of Saint Stephen
  • Slovak Language
    Slovak language
    Slovak , is an Indo-European language that belongs to the West Slavic languages .Slovak is the official language of Slovakia, where it is spoken by 5 million people...

    : Krajiny Svätoštefanskej koruny – Lands of the Crown of Saint Stephen, Krajiny uhorskej koruny – Lands of the Hungarian Crown
  • Serbian
    Serbian language
    Serbian is a form of Serbo-Croatian, a South Slavic language, spoken by Serbs in Serbia, Bosnia and Herzegovina, Montenegro, Croatia and neighbouring countries....

    : Земље круне Светoг Стефана / zemlje Krune svetog Stefana – Lands of the Crown of Saint Stephen
  • Romanian
    Romanian language
    Romanian Romanian Romanian (or Daco-Romanian; obsolete spellings Rumanian, Roumanian; self-designation: română, limba română ("the Romanian language") or românește (lit. "in Romanian") is a Romance language spoken by around 24 to 28 million people, primarily in Romania and Moldova...

    : Teritoriile Coroanei Sfantului Stefan – Lands of the Crown of Saint Stephen

Transleithania

The term of Transleithania was an unofficial term for the Hungarian
Kingdom of Hungary
The Kingdom of Hungary comprised present-day Hungary, Slovakia and Croatia , Transylvania , Carpatho Ruthenia , Vojvodina , Burgenland , and other smaller territories surrounding present-day Hungary's borders...

 part of Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...

, the Dual monarchy created in 1867 and dissolved in 1918. The Transleithanian lands were officially known as the Lands of the Crown of Saint Stephen (or of the Holy Crown of Hungary).

The Latin
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...

 name Transleithania derives from the Leitha (Lajta) river as most of its territory lay east of itor "beyond", from an Austrian
Archduchy of Austria
The Archduchy of Austria , one of the most important states within the Holy Roman Empire, was the nucleus of the Habsburg Monarchy and the predecessor of the Austrian Empire...

 perspective. Cisleithania
Cisleithania
Cisleithania was a name of the Austrian part of Austria-Hungary, the Dual Monarchy created in 1867 and dissolved in 1918. The name was used by politicians and bureaucrats, but it had no official status...

, i.e. the Habsburg
Habsburg Monarchy
The Habsburg Monarchy covered the territories ruled by the junior Austrian branch of the House of Habsburg , and then by the successor House of Habsburg-Lorraine , between 1526 and 1867/1918. The Imperial capital was Vienna, except from 1583 to 1611, when it was moved to Prague...

 lands of the Dual Monarchy that formerly were part of the Holy Roman Empire
Holy Roman Empire
The Holy Roman Empire was a realm that existed from 962 to 1806 in Central Europe.It was ruled by the Holy Roman Emperor. Its character changed during the Middle Ages and the Early Modern period, when the power of the emperor gradually weakened in favour of the princes...

 with Galicia
Kingdom of Galicia and Lodomeria
The Kingdom of Galicia and Lodomeria was a crownland of the Habsburg Monarchy, the Austrian Empire, and Austria–Hungary from 1772 to 1918 .This historical region in eastern Central Europe is currently divided between Poland and Ukraine...

 and Dalmatia
Dalmatia
Dalmatia is a historical region on the eastern coast of the Adriatic Sea. It stretches from the island of Rab in the northwest to the Bay of Kotor in the southeast. The hinterland, the Dalmatian Zagora, ranges from fifty kilometers in width in the north to just a few kilometers in the south....

, lay to the weston this sideof the Leitha river.

The territory reached from the arc of the Carpathian Mountains
Carpathian Mountains
The Carpathian Mountains or Carpathians are a range of mountains forming an arc roughly long across Central and Eastern Europe, making them the second-longest mountain range in Europe...

 in present-day Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...

 to the Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...

n coast of the Adriatic Sea
Adriatic Sea
The Adriatic Sea is a body of water separating the Italian Peninsula from the Balkan peninsula, and the system of the Apennine Mountains from that of the Dinaric Alps and adjacent ranges...

. The capital of Transleithania was Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...

.

Crown lands

After the Austro-Hungarian Compromise of 1867 Transleithania consisted of the Kingdom of Hungary
Kingdom of Hungary
The Kingdom of Hungary comprised present-day Hungary, Slovakia and Croatia , Transylvania , Carpatho Ruthenia , Vojvodina , Burgenland , and other smaller territories surrounding present-day Hungary's borders...

 including Hungary proper, the former Principality of Transylvania (Erdélyi Fejedelemség) as well as the Voivodeship of Serbia and Banat of Temeschwar, furthermore the internally self-governed Kingdom of Croatia-Slavonia
Kingdom of Croatia-Slavonia
The Kingdom of Croatia-Slavonia or Croatia Slavonia was an autonomous kingdom within the Austro-Hungarian Empire. It was part of the Hungarian Kingdom within the dual Austro-Hungarian state, being within the Lands of the Crown of St. Stephen or Transleithania...

 with the Military Frontier
Military Frontier
The Military Frontier was a borderland of Habsburg Austria and later the Austro-Hungarian Monarchy, which acted as the cordon sanitaire against incursions from the Ottoman Empire...

, and the free port
Free port
A free port or free zone , sometimes also called a bonded area is a port, port area or other area with relaxed jurisdiction with respect to the country of location...

 of Fiume
Rijeka
Rijeka is the principal seaport and the third largest city in Croatia . It is located on Kvarner Bay, an inlet of the Adriatic Sea and has a population of 128,735 inhabitants...

.
Crown lands of Transleithania
StateHungarian nameCapital
Kingdom of Hungary
Kingdom of Hungary
The Kingdom of Hungary comprised present-day Hungary, Slovakia and Croatia , Transylvania , Carpatho Ruthenia , Vojvodina , Burgenland , and other smaller territories surrounding present-day Hungary's borders...

Magyar Királyság Buda
Buda
For detailed information see: History of Buda CastleBuda is the western part of the Hungarian capital Budapest on the west bank of the Danube. The name Buda takes its name from the name of Bleda the Hun ruler, whose name is also Buda in Hungarian.Buda comprises about one-third of Budapest's...


Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...

 from 1873
Kingdom of Croatia-Slavonia
Kingdom of Croatia-Slavonia
The Kingdom of Croatia-Slavonia or Croatia Slavonia was an autonomous kingdom within the Austro-Hungarian Empire. It was part of the Hungarian Kingdom within the dual Austro-Hungarian state, being within the Lands of the Crown of St. Stephen or Transleithania...

Horvát-Szlavónia Királyság Zagreb
Zagreb
Zagreb is the capital and the largest city of the Republic of Croatia. It is in the northwest of the country, along the Sava river, at the southern slopes of the Medvednica mountain. Zagreb lies at an elevation of approximately above sea level. According to the last official census, Zagreb's city...

 (Zágráb)
City of Fiume with territory
Corpus separatum (Fiume)
The Corpus separatum of Fiume was the name of the legal and political status of the city of Fiume , instituted by Empress Maria Theresa in 1776, determining the semi-autonomous status of Fiume within the Habsburg Empire until the fall of the Austro-Hungarian Empire in 1918 - the longest-lasting...

Fiume város és területe Rijeka
Rijeka
Rijeka is the principal seaport and the third largest city in Croatia . It is located on Kvarner Bay, an inlet of the Adriatic Sea and has a population of 128,735 inhabitants...

 (Fiume)

Characteristics

The term was widely used in the eighteenth and nineteenth centuries to distinguish the Transleithanian or Hungarian part of the Habsburg Monarchy
Habsburg Monarchy
The Habsburg Monarchy covered the territories ruled by the junior Austrian branch of the House of Habsburg , and then by the successor House of Habsburg-Lorraine , between 1526 and 1867/1918. The Imperial capital was Vienna, except from 1583 to 1611, when it was moved to Prague...

 (later Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...

) from the Cisleithania
Cisleithania
Cisleithania was a name of the Austrian part of Austria-Hungary, the Dual Monarchy created in 1867 and dissolved in 1918. The name was used by politicians and bureaucrats, but it had no official status...

n territories. It meant three main administrative districts:
  • the Kingdom of Hungary proper (including former Principality of Transylvania)
  • the Kingdom of Croatia-Slavonia, which had autonomy under the Croatian-Hungarian Settlement signed in 1868 and a territory known as the Military Frontier
    Military Frontier
    The Military Frontier was a borderland of Habsburg Austria and later the Austro-Hungarian Monarchy, which acted as the cordon sanitaire against incursions from the Ottoman Empire...

    .
  • Fiume and its surroundings (separatum sacrae regni coronae adnexum corpus)
    Corpus separatum (Fiume)
    The Corpus separatum of Fiume was the name of the legal and political status of the city of Fiume , instituted by Empress Maria Theresa in 1776, determining the semi-autonomous status of Fiume within the Habsburg Empire until the fall of the Austro-Hungarian Empire in 1918 - the longest-lasting...



While the Diet of Hungary
Diet of Hungary
The Diet of Hungary was a legislative institution in the medieval kingdom of Hungary from the 15th century, and in its successor states, Royal Hungary and the Habsburg kingdom of Hungary throughout the Early Modern period...

 opposed the separation of Transylvania
Transylvania
Transylvania is a historical region in the central part of Romania. Bounded on the east and south by the Carpathian mountain range, historical Transylvania extended in the west to the Apuseni Mountains; however, the term sometimes encompasses not only Transylvania proper, but also the historical...

 (being an integral part of medieval Hungary), they unsuccessfully demanded to reestablish the historical connections with Dalmatia
Dalmatia
Dalmatia is a historical region on the eastern coast of the Adriatic Sea. It stretches from the island of Rab in the northwest to the Bay of Kotor in the southeast. The hinterland, the Dalmatian Zagora, ranges from fifty kilometers in width in the north to just a few kilometers in the south....

, Bosnia
Bosnia (region)
Bosnia is a eponomous region of Bosnia and Herzegovina. It lies mainly in the Dinaric Alps, ranging to the southern borders of the Pannonian plain, with the rivers Sava and Drina marking its northern and eastern borders. The other eponomous region, the southern, other half of the country is...

, and Galicia and Lodomeria
Kingdom of Galicia and Lodomeria
The Kingdom of Galicia and Lodomeria was a crownland of the Habsburg Monarchy, the Austrian Empire, and Austria–Hungary from 1772 to 1918 .This historical region in eastern Central Europe is currently divided between Poland and Ukraine...

 . These Cisleithanian provinces were theoretically part of the Lands of the Crown of St. Stephen, according to the historical right . The Habsburg rulers occupied these territories as "Hungarian kings" alluding to the Árpád-dynasty
Árpád dynasty
The Árpáds or Arpads was the ruling dynasty of the federation of the Hungarian tribes and of the Kingdom of Hungary . The dynasty was named after Grand Prince Árpád who was the head of the tribal federation when the Magyars occupied the Carpathian Basin, circa 895...

, but these provinces were attached to Austria not to Hungary.

After the union with Transylvania in 1848 and 1867, the term denoted only the Hungary proper and Croatia-Slavonia.

On 29 October 1918 the Croatian Parliament joined the State of Slovenes, Croats, and Serbs (later the Kingdom of Yugoslavia
Kingdom of Yugoslavia
The Kingdom of Yugoslavia was a state stretching from the Western Balkans to Central Europe which existed during the often-tumultuous interwar era of 1918–1941...

). The kingdom of Hungary ceased on 16th of November 1918 and the first republic of Hungary was proclaimed. At that point the term lost its meaning and its use ceased.

History

The Compromise of 1867, which created the Dual Monarchy, gave the Hungarian government more control of its domestic affairs than it had possessed at any time since the Battle of Mohács
Battle of Mohács
The Battle of Mohács was fought on August 29, 1526 near Mohács, Hungary. In the battle, forces of the Kingdom of Hungary led by King Louis II of Hungary and Bohemia were defeated by forces of the Ottoman Empire led by Sultan Suleiman the Magnificent....

 (see fig. 4). However, the new government faced severe economic problems and the growing restiveness of ethnic minorities. The First World War led to the disintegration of Austria-Hungary, and in the aftermath of the war, a series of governments—including a communist regime—assumed power in Buda and Pest (in 1872 the cities of Buda and Pest united to become Budapest).

Constitutional and legal framework

Once again a Habsburg emperor became king of Hungary, but the compromise strictly limited his power over the country's internal affairs, and the Hungarian government assumed control over its domestic affairs. The Hungarian government consisted of a prime minister and cabinet appointed by the emperor but responsible to a bicameral parliament elected by a narrow franchise. Joint Austro-Hungarian affairs were managed through "common" ministries of foreign affairs, defense, and finance. The respective ministers were responsible to delegations representing separate Austrian and Hungarian parliaments. Although the "common" ministry of defense administered the imperial and royal armies, the emperor acted as their commander in chief, and German remained the language of command in the military as a whole. The compromise designated that commercial and monetary policy, tariffs, the railroad, and indirect taxation were "common" concerns to be negotiated every ten years. The compromise also returned Transylvania
Transylvania
Transylvania is a historical region in the central part of Romania. Bounded on the east and south by the Carpathian mountain range, historical Transylvania extended in the west to the Apuseni Mountains; however, the term sometimes encompasses not only Transylvania proper, but also the historical...

, Vojvodina
Vojvodina
Vojvodina, officially called Autonomous Province of Vojvodina is an autonomous province of Serbia. Its capital and largest city is Novi Sad...

, and the Military Frontier
Military Frontier
The Military Frontier was a borderland of Habsburg Austria and later the Austro-Hungarian Monarchy, which acted as the cordon sanitaire against incursions from the Ottoman Empire...

 to Hungary's jurisdiction.

At Franz Joseph's insistence, Hungary and Croatia reached a similar compromise in 1868, giving the Croats a special status in Hungary. The agreement recognized the Croat autonomy and granted the Croats autonomy over their internal affairs. In practice, however, this autonomy was fairly limited. The Croatian
Ban
Ban (title)
Ban was a title used in several states in central and south-eastern Europe between the 7th century and the 20th century.-Etymology:The word ban has entered the English language probably as a borrowing from South Slavic ban, meaning "lord, master; ruler". The Slavic word is probably borrowed from...

 would now be nominated by the Hungarian prime minister and appointed by the king. Areas of common policies included finance, currency matters, commercial policy, the post office, and the railroad. Croatian became the official language of Croatia's government, and Croatian representatives discussing "common" affairs before the Hungarian diet were permitted to speak Croatian.

The Nationalities Law enacted in 1868 defined Hungary as a single Hungarian nation comprising different nationalities whose members enjoyed equal rights in all areas except language. Although non-Hungarian languages could be used in local government, churches, and schools, Hungarian became the official language of the central government and universities. Many Hungarians thought the act too generous, while minority-group leaders rejected it as inadequate. Slovaks in northern Hungary, Romanians in Transylvania, and Serbs in Vojvodina all wanted more autonomy, and unrest followed the act's passage. The government took no further action concerning nationalities, and discontent fermented.

Anti-Semitism appeared in Hungary early in the century as a result of fear of economic competition. In 1840 a partial emancipation of the Jews allowed them to live anywhere except certain depressed mining cities. The Jewish Emancipation Act of 1868 gave Jews equality before the law and effectively eliminated all bars to their participation in the economy; nevertheless, informal barriers kept Jews from careers in politics and public life.

Rise of the Liberal Party

Franz Joseph appointed Gyula Andrássy
Gyula Andrássy
Gyula Count Andrássy de Csíkszentkirály et Krasznahorka was a Hungarian statesman, who served as Prime Minister of Hungary and subsequently as Foreign Minister of Austria-Hungary...

--a member of Deák's party—prime minister in 1867. His government strongly favored the Austro-Hungarian 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, Deák's party succumbed to charges of financial mismanagement and scandal.

As a result of these economic problems, Kálmán Tisza
Kálmán Tisza
Kálmán Tisza de Borosjenő was the Hungarian prime minister between 1875 and 1890. He is credited for the formation of a consolidated Magyar government, the foundation of the new Liberal Party and major economic reforms that would both save and eventually lead to a government with popular...

'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.

Social changes

Hungary's population rose from 13 million to 20 million between 1850 and 1910. After 1867 Hungary's feudal society gave way to a more complex society that included the magnates, lesser nobles, middle class, working class, and peasantry. However, the magnates continued to wield great influence through several conservative parties because of their massive wealth and dominant position in the upper chamber of the diet. They fought modernization and sought both closer ties with Vienna and a restoration of Hungary's traditional social structure and institutions, arguing that agriculture should remain the mission of the nobility. They won protection from the market by reestablishment of a system of entail and also pushed for restriction of middle-class profiteering and restoration of corporal punishment. The Roman Catholic Church was a major ally of the magnates.

Some lesser-noble landowners survived the agrarian depression of the late 19th century and continued farming. Many others turned to the bureaucracy or to the professions.

In the mid-19th century, Hungary's middle class consisted of a small number of German and Jewish merchants and workshop owners who employed a few craftsmen. By the turn of the 20th century, however, the middle class had grown in size and complexity and had become predominantly Jewish. In fact, Jews created the modern economy that supported Tisza's bureaucratic machine. In return, Tisza not only denounced anti-Semitism but also used his political machine to check the growth of an anti-Semitic party. In 1896 his successors passed legislation securing the Jews' final emancipation. By 1910 about 900,000 Jews made up approximately 5 percent of the population and about 23 percent of Budapest's citizenry. Jews accounted for 54 percent of commercial business owners, 85 percent of financial institution directors and owners, and 62 percent of all employees in commerce.

The rise of a working class came naturally with industrial development. By 1900 Hungary's mines and industries employed nearly 1.2 million people, representing 13 percent of the population. The government favored low wages to keep Hungarian products competitive on foreign markets and to prevent impoverished peasants from flocking to the city to find work. The government recognized the right to strike in 1884, but labor came under strong political pressure. In 1890 the Social Democratic Party was established and secretly formed alliances with the trade unions. The party soon enlisted one-third of Budapest's workers. By 1900 the party and union rolls listed more than 200,000 hard-core members, making it the largest secular organization the country had ever known. The diet passed laws to improve the lives of industrial workers, including providing medical and accident insurance, but it refused to extend them voting rights, arguing that broadening the franchise would give too many non-Hungarians the vote and threaten Hungarian domination. After the Compromise of 1867, the Hungarian government also launched an education reform in an effort to create a skilled, literate labor force. As a result, the literacy rate had climbed to 80 percent by 1910. Literacy raised the expectations of workers in agriculture and industry and made them ripe for participation in movements for political and social change.

The plight of the peasantry worsened drastically during the depression at the end of the 19th century. The rural population grew, and the size of the peasants' farm plots shrank as land was divided up by successive generations. By 1900 almost half of the country's landowners were scratching out a living from plots too small to meet basic needs, and many farm workers had no land at all. Many peasants chose to emigrate, and their departure rate reached approximately 50,000 annually in the 1870s and about 200,000 annually by 1907. The peasantry's share of the population dropped from 72.5 percent in 1890 to 68.4 percent in 1900. The countryside also was characterized by unrest, to which the government reacted by sending in troops, banning all farm-labor organizations, and passing other repressive legislation.

In the late 19th century, the Liberal Party passed laws that enhanced the government's power at the expense of the Roman Catholic Church. The parliament won the right to veto clerical appointments, and it reduced the church's nearly total domination of Hungary's education institutions. Additional laws eliminated the church's authority over a number of civil matters and, in the process, introduced civil marriage and divorce procedures.

The Liberal Party also worked with some success to create a unified, Magyarized state. Ignoring the Nationalities Law, they enacted laws that required the Hungarian language to be used in local government and increased the number of school subjects taught in that language. After 1890 the government succeeded in Magyarizing educated Slovaks, Germans, Croats, and Romanians and co-opting them into the bureaucracy, thus robbing the minority nationalities of an educated elite. Most minorities never learned to speak Hungarian, but the education system made them aware of their political rights, and their discontent with Magyarization
Magyarization
Magyarization is a kind of assimilation or acculturation, a process by which non-Magyar elements came to adopt Magyar culture and language due to social pressure .Defiance or appeals to the Nationalities Law, met...

 mounted. Bureaucratic pressures and heightened fears of territorial claims against Hungary after the creation of new nation-states in the Balkans forced Tisza to outlaw "national agitation" and to use electoral legerdemain to deprive the minorities of representation. Nevertheless, in 1901 Romanian and Slovak national parties emerged undaunted by incidents of electoral violence and police repression.

Political and economic situation in 1905–1919

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.

First World War

On June 28, 1914, a Bosnian Serb assassinated Archduke Franz Ferdinand, heir to the Austrian throne. Within days Austria-Hungary presented Serbia with an ultimatum that made war inevitable. Prime Minister István Tisza
István Tisza
Count István Tisza de Borosjenő et Szeged was a Hungarian politician, prime minister, and member of Hungarian Academy of Sciences....

 initially opposed the ultimatum but changed his mind when Germany supported Austria-Hungary. By late August, all the great European powers were at war. Bands playing military music and patriotic demonstrators expecting a quick, easy victory took to Budapest's streets after the declaration of war. However, Hungary, was ill prepared for war. The country's armaments were obsolete, and its industries were not prepared for a war economy. By 1915 and 1916, Hungary started to feel the full impact of the war. Inflation ran rampant, wages were frozen, food shortages developed, and the government banned the export of grain even to Austria. Franz Joseph died in 1916, and Charles IV
Karl I of Austria
Charles I of Austria or Charles IV of Hungary was the last ruler of the Austro-Hungarian Empire. He was the last Emperor of Austria, the last King of Hungary, the last King of Bohemia and Croatia and the last King of Galicia and Lodomeria and the last monarch of the House of Habsburg-Lorraine...

 (1916–18) became Hungary's new king. Before being crowned, however, Charles insisted that voting rights be extended to a larger proportion of the Hungarian population. Tisza resigned in response. By 1917 the Hungarian government was slowly losing domestic control in the face of mounting popular dissatisfaction caused by the war. Of the 3.6 million soldiers Hungary sent to war, 2.1 million were wounded or killed. By late 1918, Hungary's farms and factories were producing only half of what they did in 1913, and the war-weary people had abandoned hope of victory.

On October 31, 1918, smouldering unrest developed into revolution in Budapest, and roving soldiers assassinated István Tisza. Pressured by the popular uprising and the refusal of Hungarian troops to quell the disturbances, King Charles was compelled to appoint the "Red Count" Mihály Károlyi
Mihály Károlyi
Count Mihály Ádám György Miklós Károlyi de Nagykároly was briefly Hungary's leader in 1918-19 during a short-lived democracy...

, a pro-Entente liberal and leader of the Party of Independence, to the post of prime minister. Chrysanthemum-waving crowds poured into the streets shouting their approval. Károlyi formed a new cabinet, whose members were drawn from the new National Council, composed of representatives of the Party of Independence, the Social Democratic Party, and a group of radical bourgeois. After suing for a separate peace, the new government dissolved Parliament, declared Hungary to be an independent republic
Hungarian Democratic Republic
The Hungarian People's Republic was an independent republic proclaimed after the collapse of Austria-Hungary in 1918...

 with Károlyi as provisional president, and proclaimed universal suffrage and the freedom of the press and assembly. The government launched preparations for land reform and promised elections, but neither goal was achieved. On November 13, 1918, Charles IV surrendered his powers as king of Hungary. However, he did not abdicate, a technicality that made a return to the throne possible.

The Károlyi government's measures failed to stem popular discontent, especially when the Entente powers began distributing slices of Hungary's traditional territory to Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...

, the Kingdom of Serbs, Croats and Slovenes
Kingdom of Yugoslavia
The Kingdom of Yugoslavia was a state stretching from the Western Balkans to Central Europe which existed during the often-tumultuous interwar era of 1918–1941...

 (colloquially Yugoslavia until the name became formal in 1929), and Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...

. The new government and its supporters had pinned their hopes for maintaining Hungary's territorial integrity on the abandonment of Austria and Germany, the securing of a separate peace, and exploiting Károlyi's close connections in France. The Entente, however, chose to consider Hungary a partner in the defeated Dual Monarchy and dashed the Hungarians' hopes with the delivery of successive diplomatic notes, each demanding the surrender of more land. On March 19, 1919, the French head of the Entente mission in Budapest handed Károlyi a note delineating final postwar boundaries, which were unacceptable to the Hungarians. Károlyi resigned and turned power over to a coalition of Social Democrats and communists, who promised that Soviet Russia would help Hungary to restore its original borders. Although the Social Democrats held a majority in the coalition, the communists led by Béla Kun
Béla Kun
Béla Kun , born Béla Kohn, was a Hungarian Communist politician and a Bolshevik Revolutionary who led the Hungarian Soviet Republic in 1919.- Early life :...

 immediately seized control and announced the establishment of the Hungarian Soviet Republic
Hungarian Soviet Republic
The Hungarian Soviet Republic or Soviet Republic of Hungary was a short-lived Communist state established in Hungary in the aftermath of World War I....

.
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