State Establishing Legislation 1921-1931

Financial improvements

After gaining admittance to the League of Nations on 18th September 1922, the Hungarian government in the Spring of 1923 submitted a request for a loan of 600 – 700 million golden crowns This the at first opposed, however thanks to the support of the United Kingdom, a loan of 250 million Golden Crowns is awarded for the stabilisation of the economy and halting inflation. In addition, Hungary agreed that its economy will be overseen by the League of Nations for 18 months. The first payment was to be made in July and Britain agreed to cover more than half of the amount. From this financial background was established the Hungarian National Bank in 1924. ^[1]

Education

Minister of educations over the greater part of this period was Kunó Kebersberg, and then from 1932 to 1942 except f for one brief interruption, Bálint Hóman. Both of them believed that one of their highest priorities was to encourage elementary education.

Once the country’s eoconomy and the state budget had been brought under control by the 1924-1925 reconstruction plan a programme for developing elementary education was approved ( Law VII. of 1926). Which set a target of building 3500 new classrooms and 1750 service aparments for teachers

At an intermediary level, teh four-year upper school „polgári” following the completion of the first four year of elementary remained the most popular. The Law XII / 1927 set ap a polgári school in every city of more than 5000 habitants.

The two dominant ministers had different ideas when it came to secondary schools. In his reform plan of 1924 ( Law XI.) Klebersberg introduced a third type of establishment. The modern „reál” hig school offering exeptional education in natural sciences German and French was introduced. ^[2]

Agricaltural legislation

The peasantry still comprised the largest segment of the population. Over the two decades after 1920 their numbers remained essentially constant at 4,4 – 4,5 million, which represented a decline in relation to the total population from 55% to 48%/. The dwarf holders with 1-5 hold made up 24%, and 46% of them were landless.

The firs agricultural law ( XXXVI 1920) which gave its name after the current agricultural minister, István Nagyatádi Szabó, aimed to supply the landless peasantry with housebuilding plots and small estates. However the representatives in the parlament did not take the risk of maxilmalizing the size of the giant estates in the country, s a result of which only dwarf sized estates, consisting of 1-2 holds were supplied to the applicants, which could not ease the living of the lowest classes of the peasantry.

The so called „settling decree” in 1936 was proposed to correct the mistakes of the Nagyatádi law. This new legislation ( XI of 1936) maximalised the size of the estates allowed to have one owner - in 3000 holds. This step freed more than half of Hungary’s territory. However the proopsed time-period for executing the law was more than 25 years – as a result of which only a minor part of the peasantry was supplied with new estates.

Through an agrarian law in 1940 ( IV / 1940) the goverment intented to take over further 100 000 holds, which would have been supplied to the landless peasantry afterwards. Due to the war this has never been carried out.

Legislation on the social conditions

The law of XXI / 1927 established the the National Worker Insurance Institute, which later was renamed to National Insurance Institute. It supplied pension for the sick, the elderly, and the disabled. However the legislation did not cover the peasantry, which made a large part of the Hungarian population.

The law o f XI / 1928 extended the coverage of the National Insurance to victims of work accidents, to orphans, and widows. ^[3]