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arrested and roughly treated by the police. Since, however, a counter-revolution on national lines was gaining strength in the country, and, on the other hand, the workmen's and soldiers' councils were becoming daily more radical under the influence of the Communist agitation, the leaders of the Social Democrats decided to seek escape from this situation by a fusion of the two Labour parties and the proclamation of the " dic- tatorship of the proletariat " on the Bolshevist model. In accordance with the compact signed (March 4 1919) by the Socialist minister Kunfi and the Communist leader Bela Kun \n the latter's prison, both groups united to form the Hungarian Socialist party, abandoned democratic principles, and took over the government of the country in alliance with Soviet Russia. The People's Government resigned, and President Karolyi sur- rendered his powers to the new Hungarian Soviet Government.

Period of Soviet Government. According to the Constitutional Law (Soviet Ordinance No. XXVI.), which was borrowed from Russian Bolshevism, the object of Soviet dominion in Hungary was " the destruction of capitalistic production and society and the creation of social (communistic) production and society by securing the dominion of the workers over the exploiters by means of the dictatorship of the proletariat." The dictator- ship, according to this regulation, was to be exercised through the workmen's, soldiers' and peasants' councils (soviets). Only " workers " were allowed to vote for the local Soviets; traders, the clergy, monks and nuns, and all who lived on rents or the interest on investments were disfranchised. Deputies from the local Soviets constituted the central soviet, which was to choose the People's Commissaries, in whom all actual power was vested. The 16 People's Commissaries to whom Karolyi had transferred his powers on March 21 were subsequently confirmed in their authority by the central soviet. A stonemason named Alexan- der Garbai (b. 1879) became President of the Republic, but the actual ruler was Bela Kun, " People's Commissary " for foreign affairs, who was in direct contact with Lenin in Russia. As candidates for the local Soviets had to be chosen from the official list, power was permanently secured to the People's Commis- saries. The old administrative system was in principle abol- ished. At the head of the more important offices were placed " political commissaries," appointed by the People's Commis- saries and armed with dictatorial power. The officers of the law were removed from their posts and the courts done away with; the new " revolutionary tribunals " were composed en- tirely of workmen. Workmen also supervised education.

In making the compact with Bela Kun the Social Democrats had, indeed, abandoned democratic principles, but they failed to understand the methods of the new dictatorship and to the last their attitude towards it was purely passive. The only active agents of the dictatorship were the true Communists who in the whole country numbered only some 15,000, mostly unemployed, and Budapest soldiers won over by Bela Kun with money and promises. In order to maintain its power this minority had to imitate the methods of Bolshevist Russia by a system of terror and propaganda in the towns and countryside in the interests of the dictatorship. Terror was proclaimed as an instrument of government in the official declarations and proclamations of the Communists. It took the form of the enlistment of a Communist army, of the quartering of Com- munists on middle-class families, of the arrest of " hostages " (in Budapest only) some 4oo-odd distinguished citizens, poli- ticians and writers, of whom some were bestially murdered and, finally, of the organization of special " terror troops " whose function was to terrorize the people. The " terror troop " known as " Lenin's ruffians," which acted as guard to the strongly fortified house in which the People's Commissaries lived and worked, arrested, tortured and executed people on their own authority. For the provinces a special terror troop was created, under the leadership of the People's Commissary Tibor Szamuelly, which was empowered to inflict the death pen- alty without any formalities whatever.

In the interests of the propaganda an attempt was made to suppress all expressions of national and religious life, and to

spread the Communist conception of the world which had been imported from Russia by means of posters, pamphlets, brochures, processions, meetings and education. With the exception of three official Communist journals, all newspapers were sup- pressed, and the writers were placed in a Government office where they could only work under State supervision and cen- sorship. The right of public meeting was abolished, except for Communistic objects. A propaganda abroad was instituted in order to spread Bolshevism in the countries bordering on Hungary; schools of propaganda for the training of agitators were established, and an " international red army " consisting of Russian and Italian prisoners-of-war was created. The prin- cipal object of all this was the erection of Soviet Government in Austria. For this purpose the Communist party in Vienna was provided with money; and when a demonstration organized by this party with a view to the proclamation of the Soviet regime resulted in nothing but futile bloodshed, Bela Kun deposed the leader of the party and replaced him by a Hungarian Communist. On this particular work of propaganda the diplomatic mission of Soviet Hungary in Vienna spent 60,000,000 kronen.

The schools served the Soviet Government chiefly by way of propaganda; and with this in view all religion and authority were excluded. In the middle schools the pupils themselves elected Pupils' Councils whose function was to control the activities of the teachers. All mention of the nation or of reli- gion in the lessons was forbidden, and, instead of the national heroes, Marx, Engels and Lenin were glorified, together with Spartacus and Catiline, their forerunners in the task of liberating the working-classes. It was sought to spread the doctrines of historical materialism; the university was reorganized and deprived of its autonomy, and, as the highest educational estab- lishment, an " Institute for Research into Historical Material- ism" was founded. In boys' and girls' schools the pupils re- ceived enlightening instruction in the processes of generation, birth, etc., with disastrous results to juvenile morality.

A complete revolution was brought about in the economic organization of the country. Certain occupations were entirely prohibited, such as judges and lawyers generally, bank officials, trade employees, workers in gold, confectioners, cooks, hotel employees, paper-hangers, sign-writers, hatters, bookbinders and barbers. All private property was declared to be the property of the State; business houses were closed and their wares sold by official agents for the benefit of the State. The most valu- able furniture, carpets, pianos, pictures and libraries were col- lected from private houses and taken to Government stores. Trade became a State monopoly. Manufactories were taken over by councils of workmen connected with the particular industry; manufacturers, engineers and officials were placed under the orders of these councils, or driven away. The dis- tribution of raw materials to the factories was managed by a Government office. Industries declined through want of capi- tal, and the diminution of output owing to payment by time was so great that presently the workmen themselves were anxious to return to the piece-work system. Cost prices ad- vanced by leaps and bounds. In March 1919 the cost price of cast iron was 50-80 kr. per 100 kgm.; in April 2,700 kronen. The output of the Salgo-Tarjan mines fell by more than 50% under the Soviets. The small manufacturers and homeworkers, who were regarded as exploiters, were refused raw material and their businesses were closed. In the agricultural districts, all landed property was taken over by the State, the large estates were placed under the management of workmen, but the Gov- ernment allowed the peasants to retain holdings up to 100 Joch (about 180 acres) as private property.

Counter- Revolutionary Movements. A few weeks only had passed under this regime before the Soviet Government had to fight for its life both at home and in its relations with foreign Powers. Nobody but the small Communist minority was satis- fied with its decrees. It found opponents alike in the trades unions, which the Communists wished to destroy because of their democratic past ; the terrorized middle classes, traders and industrialists, who were without bread to eat; and the clergy,