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 to prevent people with money from buying up all the small supply there is. The second method is to limit the men with money to the income of the highest paid physical worker. If at the time of the revolution a man or woman had an account in a bank, that amount up to a hundred thousand crowns is credited to him or to her, but the power to draw upon the account is limited to ten per cent, of the amount, and not more than two thousand crowns a month. If a person's wealth before the revolution happened to be in merchandise, such as a grocers' stock book would show, the value of the property is credited to that person at the socialised bank, up to the amount of one hundred thousand crowns. The bourgeoisie is therefore not deprived of the means of existence, as one hundred thousand crowns is considered ail that an industrious workman can save from his earnings during his lifetime, and two thousand crowns a month is the highest wage paid."

Gyula Havesi, the young Commissary for Social Production, only twenty-nine years old, said that the intellectuals as a class were not among the few who were antagonistic to the establishment of the communist state. He believes that the idea advocated in Austria that socialisation should take place by degrees is wrong, because the taking over of industry in Hungary was practically bloodless and the Austrian method cannot be called, in his opinion, even a half measure of socialisation so long as private capital is considered. He also believes that just as men and women can be persuaded to go to the battlefield for an idea, so they can also be taught to work for the community when once the schools teach them their moral obligations towards the state.

"Our present object is to make the management of production truly democratic by allowing the proletarian organizations a proper share in the management of industry," said Havesi, "with this object the People's Commissariat for social production, food supply and finance has been co-ordinated, so that things of economic importance can be done only through this council, and conflicting orders by different local Soviets can be avoided. Besides the board, composed of the presidents of these three councils, there is a committee of fifty appointed by the trade unions, which decides upon the economic policy of