Pál Szende (1879-1934)

Pál Szende: The future of the Hungarian mercantile class


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Dr. Pál Szende secretary general:

Dear Assembly!

Our annual report covered the past and present of the Hungarian mercantile class; it was expounded in details in the chapter "Anti-trade policy"; so, now I would like to deal with its future.
The activity by trade intermediaries has economic importance only if economic advancement is low, so it is temporary; it will be pushed into the background by direct contact of growers (producers) and consumers. However, this ideal condition is delayed by another situation when consumer cooperatives come between growers (producers) and consumers. Unfortunately, these conditions are far from the ideal state due to infringement and violence in agrarian circles and business.  

Let's have a brief foresight to the future of mercantile class (in Hungary and abroad).
The organization of consumers by and in cooperatives is advanced in Germany, where the centralizations of industrial plants are quite strong, and it is one of the most important criteria of the direct contact between the grower (producer) and consumer.

If we focus on the period of 1895-1907, we can see that number of inhabitants working in agriculture decreased; the ratio between earners and dependants also changed, it decreased to 32.69 percent.

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Number of independent plants decreased with 4000 in industry during the period. By contrast, the number of independent shopkeepers increased with 105 000 in trade; that is 21 percent. 
The pieces of information mentioned above show that number of independent plant owners and artisans working in small  industry decreased, however, trade in general and number of  merchants increased. And  big plants also were widespread in German industry.
Considering all these information we can say that strong decline of mercantile class does not happen within a short period, due to the economic development gap of 50 years as Germany and Hungary are compared. Moreover, more space and more chances are provided to intermediaries in trade and  (mainly)  to small trade.

So, dear Assembly, I am confident that in 40 years we will have the opportunity to see intermediaries in trade. So, it is totally enough to outline the image of progress and behaviour of mercantile class for the period of next 4 decades.

It is sure that Hungarian economic development does not exclude intermediaries in trade.
There are two ways as the future of Hungarian mercantile class is concerned.

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One of them is that anti-trade trend will decline or cease in the future, though it is  less probable than the other possibility (or we can say way).

The anti-trade trend covers the struggle of ruling landowners against industrial bourgeoisie and mercantile bourgeoisie - to confine them because they got stronger during the last four decades. Besides it, industrial workers and peasantry are restive due to dissatisfaction. Agrarians and landowners want to instigate workers to go against trade, deceiving the labourers for the sake of their own interests.

Unfortunately, class interest has the control over individual intentions, so, the conditions of trade cannot change (get better) on the basis of a few individuals' efforts.

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The anti-trade trend became strong in Hungary under the period of liberal government. Although leading politicians and representatives of industry and trade as well as prominent persons of agrarian industry were interested in mercantile matters, they confront the government not once (or twice).  

The other way is much more possible: anti-trade trend will become stronger or it will not decline at least.

Although economic development supports the existence of the mercantile class (and mercantile class supports economic development), it has to seize the opportunity and the tools of protection and it needs to struggle for survival or rather to maintain itself; it has to be bold and avoid being defenceless against its resolute enemy.

Agrarianism and agrarians do not give a reason for anti-trade trend by its class interests but they explain the trend with the purpose of protection for the men of the land (including peasantry) against exploitation. This effort was the root of the swindle of cooperatives (and some tax laws).

The bad intention of agrarianism is to have everything under control in the field of trade, moreover in the field of industry as well, because it wants to give all authority to cooperatives; so they (consumer cooperatives) could place all industrial products on the market and sell them instead of merchants.

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It is illustrative of the situation that consumer cooperatives (which are mercantile companies, actually) are under the control of the Ministry of Agriculture.

To tell the truth, when we deal with the issues of land and agricultural production, we can see with surprise that Hungarian trade has no bigger interest than alteration of agricultural production and agricultural population.

65 percent of the land  belong to big landowners, 35 percent can be regarded as defined (fixed) area in Hungary, so land distribution is unequal and this is the main cause of poverty in Hungary; 90 percent of the nearly 14 million people of agricultural population can hardly live on their work, without any consuming capacity.

Strong industry and trade as well as independent customs district cannot be developed until unequal land distribution is not altered and defined (fixed) estates (lands) are not set free.  Alteration is an important interest not only for industry and trade but the majority of Hungarian inhabitants because it is the basis of the process that 14 million peasants and agricultural workers become free members of consumer society; it is a vital criterium which would lead to better life for 4 million inhabitants of industry and trade... 

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We have to have respect for the welfare of more than 18 million people comparing with a few hundred thousand privileged men. 
We have to deal with the possible solutions that result in bigger consuming capacity of agricultural inhabitants, we have to demand for cancellation of customs policy and the reform of land-tax; otherwise the burdens due to the growth of state expenditures should be carried by industry and trade and the owners of small lands.

 If  peasantry gets stronger it would break the power of big landowners. So, rural people are hoaxed by agrarianism and big landowners in order to make them dependent by the movement of agrarian cooperatives.  Boundness of rural inhabitants covers not only economic dependency;  people are also used for political, social and other purposes.

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However, significant change will occur if worker's co-operative societies become stronger. Actually, agrarianism has special antipathy to farmer's co-operatives of smallholders because economic dependency of peasantry can be ceased by development of the farmer's co-operatives mentioned before; so, representatives of agrarianism consider it to be dangerous...
If we want to stand up to misuse,  we have to fight not only against consumer cooperatives but for development of the farmer's co-operatives because by establishment of the farmer's co-operative we can keep the touch with producers (by direct contact); so we do a great service for Hungarian economic interest as well as Hungarian trade.
If we do not want to watch disimprovement of our economy and trade passively, our chief duty is to deal with the issue of lands which is the issue of trade as well.

The issues raised above were my own ideas as a simple lecturer's ideas, not the ones of secretary general of the Assembly. I think that they are very important, so one of my purposes (as secretary general) is to persuade the members of the assembly of the possible right way to the future of mercantile class while I am in office.
I am convinced that it is very important to alter land distribution and set free defined (fixed) estates (lands) because it is in the national interest - important for all who have major concerns about Hungary and mercantile class that also can struggle for the welfare of Hungarian society.

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The assembly was favourably inclined towards the whole lecture by the secretary general, after the lecture it was acclaimed and applauded.

It was proposed by Miklós Mocsáry (Ungvár) that the presentation of the secretary general should be printed and spread in the country.

The president of the assembly said grateful thanks to the lecturer, mentioning that members of the board would give heed to all ideas presented by the lecture...

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