74 HUNGARY - AGRICULTURAL ECONOMY IN GENERAL 



might be reached by means of contracts for long leases. In this way a 

 movement became apparent in Hungary, in consequence of the action of 

 Count Alexander Karolyi and the Federation of Agriculturists, towards the 

 formation of farmers' co-operative associations. To this movement be- 

 longs the foundation of independent farmers' co-operative associations, 

 having more or less fixed by-laws, of registered co-operative associations, 

 of mere societies, and of lesser groups of local co-operative credit associations 

 belonging to the federation of the central fund of Hungarian co-operative 

 credit associations, and of their special branches. 



All this certainly shows progress towards the realization of the pro- 

 gramme for the constitution of small farms, biit the development has not 

 yet taken a precise direction. Two of the most important corporations 

 insisted, by means of collective manifestoes, on the necessity of interior colo- 

 nization and of introducing without delay a law for its organization. It 

 was the Federation of Hungarian Agriculturists and the Hungarian Repre- 

 sentation of the Interests of Agriculturists of Transylvania who thus 

 distinguished themselves. 



Thus little by little the problem of interior colonization and of a rural 

 policy became ripe for solution. All connected and contingent questions 

 had been examined, studied and analyzed. The comparative value of the 

 various S3'stems of colonization had been analysed : that is to say that the 

 question of whether colonization based on freehold or leasehold tenure were 

 the more profitable had been investigated. 



The projected Daranyj law of 1909 was rid of certain provisions which 

 had come to be out of date. The scheme remained legally the most com- 

 plete, where its matter was concerned, and could form a point of departure 

 for the new colonizing activity, both theoretical and practical. 



In Hungary the development and success of interior colonization are 

 facilitated by factors which have an evident importance. Above all no 

 one can say that there is not land to be colonized. In a countr}^ where 

 the lands which, by selling and purcha.sing contracts, change hands every 

 year, reach an area of two million arpents, there is no difiiculty in finding 

 land to buy. We should add that in Hungary large estates will lack capi- 

 tal after the war, and owing to the lack of labour a part of their lands will 

 have to be sacrificed to allow the organization of the remaining part with 

 the money obtained by the sales. 



The agency for colonization must be founded on the principle of decen- 

 tralization. In Hungary there should be such agencies in every comitat, on 

 th2 model of the provincial rural societies of Prussia [Landegeselhchaften). 

 The foundation of an institution of central credit will be necessary only for 

 the financial side of the enterprise. 



These principles ruled in Hungar7^ in the matter of interior coloniza- 

 tion until the outbreak of war. Other factors have since complicated the 

 problem, which is, in spite of all that has been accomplished, still far from 

 being solved in practice. 



We will now examine the present attitude of public opinion and of 

 competent influences in Hungary with regard to the problem. 



