| [Reprinted from Land
& Liberty, January, 1957] |
Dr. Charles Ravasz, who studied in Budapest under the eminent
late Dr J. J. Pikier, fled Hungary in 1949. For a short time he was
associated with the Henry George School of Social Science in London,
later emigrating to Australia. He edits our Sydney contemporary, "The
Standard," and is a Vice-President of the International Union for
Land Value Taxation and Free Trade.
Undaunted by gaol and the concentration camp, courageous
Hungarians have openly upheld the Henry George philosophy of freedom
and equal rights. Initial partial success was followed by persecution
during the police Reign of Terror. Since 1953 their voices were heard
increasingly -- demanding freedom, and influencing legislation.
A NUMBER OF OUTSTANDING contemporary historians and thinkers have
already expressed the opinion that the importance of the Hungarian
revolution for the history of mankind may equal the French and Russian
revolutions. Whether this is so future events will show.
It would be wrong to claim that the Hungarian freedom fighters were
motivated by any particular ideology, let alone a definite economic
programme. Revolutions are started to overthrow a social system which
has become intolerable, and it is generally only the main trends of
ideas and emotions that contemporary observers or even later historians
can trace. Nevertheless, Georgeists all over the world should have no
difficulty in proudly identifying themselves with the Hungarian
revolution.
Many who have played, on various levels, a very active part in recent
events are known to be well acquainted with the teachings of Henry
George and to have approved them at some time or other in their lives.
Among them are the revolutionary Prime Minister, Imre Nagy.
The revolution had no time to formulate an economic programme. The
demands of the revolutionaries were directed mainly towards the
establishment of human and civic rights, the respect for which
Georgeists share with all genuine liberals. This, of course, would be
sufficient for Georgeists to support the aims of the revolution. But I
used the word "identify " -- with good reason. To explain this
we have to delve a little into recent history.
The revolution was sparked by the liberal wing of the Hungarian
Workers' (Communist) Party. The demands enthusiastically accepted by the
entire people, and reiterated and adhered to throughout the revolution,
had been formulated by this group. After the Stalinists had managed to
remove Mr. Nagy from his first premiership following the fall of
Malenkov in Russia, in February, l95~the liberal wing continued to
resist re-Stalinisation. It was especially the writers and young
intellectuals who showed outstanding courage and who were successful to
the extent that the official party line almost completely lost control
of the literary and scientific periodicals. These periodicals provided
the ferment which led first to the demand for democratisation and, when
this was stubbornly resisted by a handful of Stalinists, finally to the
outbreak of the revolution.
The economic policy of the liberal wing was formulated by the head of
the Department of Statistics, Professor George Peter-Pikler, in several
articles which he published between 1954 and 1956 in the Hungarian Economic
Review. George Peter-Pikler is the son of Dr. J. J. Pikler, who was
for many decades the doyen of Hungarian Georgeists. It caused Dr. Pikler
much bitterness that his son had become a Communist, and it is a great
pity that he did not live to read his son's articles, which in their
very style, in their lucid and witty disposal of opposing views were so
reminiscent of the writings of Dr. Pikler himself.
Professor Peter-Pikler's articles were perhaps the most outspoken and
best documented condemnation of the planned economy ever written. They
showed that planning of production and distribution was not even a
Marxist policy, but was grafted on Marxism. Had not Marx him-self
rebuked Rodbertus when he proposed something similar? Professor
Peter-Pikler proved that the arbitrary determination of prices was
incompatible with the Marxian theory of value. He demanded that central
planning be limited to the allocation of new investments; that
production, distribution and exchange be completely free; and that price
should be allowed freely to fulfil its natural function of regulating
supply and demand.
Professor Peter-Pikler created a school of thought, and several
economists started to expound and amplify his views, including the Dean
of the Karl Marx University of Economics. Lecturer in Economics Peter
Erdos advised his students and readers to study the Physiocrats, who had
exposed all the fallacies and mistakes of government regimentation of
the economy 200 years before the Communist planners committed the same
errors again.
Land-value taxation was included in the programme of the liberal wing
of the Workers' Party. It was under pressure from them that at the
beginning of 1956 a new "agricultural income tax" was
introduced, which was based entirely on the value of the land, and
disregarded actual income. The Government explained that as the tax was
constant and did not rise with any increase of the farmer's income due
to his own efforts, it would encourage production. However, the tax was
graduated and it differentiated between collective farmers, individual
farmers, etc. The liberal wing demanded that these graduations and
differentiations, in which the Stalinist policy of forced
collectivisation was reflected, be removed.
Although, as already mentioned, the revolution had no time to develop
an economic policy, it is virtually certain that it would have followed
the policy laid down by George Peter-Pikler.
To my knowledge the only economic programme reported was that put
forward by the students of the University of Mining Technology in
Sopron. The students declared that while oil and other mineral resources
should belong to the entire Hungarian nation, they saw no reason why
mining equipment should not be privately owned. They proposed that
concessions to exploit mineral wealth be openly auctioned to the highest
bidders, even expressly declaring that the Soviet Union should be
invited to bid on equal terms. Such a view is, of course, wholely in
line with Georgeist theory and policy. Yet the students of Sopron
probably had never heard of Henry George. This solution just seems
natural and it appears likely that it would have commended itself in
many branches of the economy.
Taught in the Colleges
One should not imagine, however, that conscious proponents of Georgeist
policy were far removed from the scene of action. It is difficult to
know to what extent, if any, juvenile memories have influenced Imre
Nagy, or to what extent they might have influenced his decisions on
economic policy should the revolution have prevailed. But there was a
small but very capable set of men in their thirties whose Georgeist
education was much more recent. In 1945-46 a great popular youth
movement arose in Hungary: the People's Colleges. Young intellectuals,
mainly of peasant ancestry, founded colleges all over the country which
copied all that is best in the English public school and university
college system. They were very largely autonomous and self-supporting
and at first were enthusiastically supported by the Communist Party.
However, Georgeist study circles were formed in some colleges and short
Georgeist lectures were delivered in others. The effect was such that it
caused serious concern to the Communists, and the chief ideologist of
the Communist Party, Joseph Revai, personally conducted an investigation
and threatened to withdraw support from the colleges. (This was during
the coalition period, before the Communists gained complete control of
the country.)
I would not assert that the acceptance of Georgeist views spread at
that time very much beyond the hard core who had been taught by Dr.
Pikler or by his immediate disciples. The general reaction of the
students in the People's Colleges, who were to a certain extent already
indoctrinated by Marxists, was that the Georgeist system seemed to be a
good and desirable one but was not possible to be achieved while there
was a class-society dominated by landlords and capitalists. They thought
that the next step of social evolution was necessarily the liquidation
of the landlord and capitalist classes (as classes not as individuals)
and that a Georgeist society would then be to use the exact words of
many of them, "the next stage In the light of recent events these
views may or may not be very significant.
Because of my work I lost contact with my Georgeist friends in 1946,
and when I was again able to look around for them two years later, I
found that those of my generation had split and gone two completely
separate ways. While the more urban types chose internal or external
exile, some -- mainly those who had close contact with the peasantry --
had joined the Communist Party and were in leading positions in the
Communist Youth Movement the People's Colleges, and even in the Faculty
of the University of Economics. Whether they had abandoned Georgeism
completely arid had become convinced that the Communists were right, or
whether they sensed that this was the only way in which one could
actively do something. I do not know, and I chose not to ask. That was
the ear when police terror became oppressive and even good friends
avoided asking each other delicate questions.
However, the People's Colleges were soon declared unreliable and
dissolved. The charge against their members and leaders was that they
were "Narodniks" (the Narodniks vied with the Socialists for
the leadership of the Russian revolutionary movement around the turn of
the century. They were influenced by Tolstoy and George, and were
attacked by the Bolsheviks mainly for their "romantic"
attachment to soil and people). Between 1949 and 1953, among many
others, the former Georgeists disappeared one after the other. Some, I
know, spent years in gaols and concentration camps. Then, during the
first premiership of Imre Nagy, towards the end of 1953 and at the
beginning of 1954, I began to hear news of some of them again. And early
in 1956 when the writers became the vanguard of the coming revolution, I
could hardly wait to see new issues of the writers' journal. I know now
that I was not alone. On the eve of the day on which this weekly journal
was published in Budapest people started to queue up after work in front
of the publishing house and stood all night to make sure they got a copy
in the morning. The Government limited the journal's circulation, but
did not dare to suppress it altogether. Every issue had a special
interest for me, for in each I found the names of two or three,
sometimes four, of my former Georgeist friends. They were still speaking
and writing as Communists but they were in the forefront of those who
demanded freedom in all its aspects.
A Clean and Peaceful Revolution
I have no wish to exaggerate the r6le of Georgeists or former
Georgeists in recent events. Perhaps it was only a drop in the sea --
perhaps it was much more; it is difficult to fathom. What is certain is
that events have vindicated Henry George's teaching that no amount of
tyranny can ever erase the yearning for freedom from the human soul.
So far I have written of the positive aspects which I believe will
induce Georgeists to identify themselves with the Hungarian revolution.
But I feel that it is also necessary to say a few words of the absence
of any negative aspects that might prevent Georgeists from doing so.
The first question is that of the use of violence. There are many
people who maintain that it is wrong to use violence even for a just
cause. It should therefore be clearly understood that the revolution
started as a peaceful demonstration, and that it was only after the
massacre of defenceless people by the Russians and some formations of
the Security Police that the people proceeded to take up arms and to
defend themselves against the reimposition of a fearful terror regime.
All western observers who were present agree that it was the cleanest
revolution in history. There were only a few isolated cases of lynching
of Security Police officers who had opened fire and killed scores of
demonstrators. Perhaps for the first time in the history of armed
revolts there was no looting. Beside the extreme courage shown in
battle, the moral conduct of practically the whole people was what made
the greatest impression on western observers, and this may give a clue
to one of the reasons for the revolution and re-affirm our faith in
human nature. For ten years everybody was forced to lie, to cheat, to
hide his real thoughts and personality day after day, and often even to
steal regularly in order to be able to support his family. While
everybody knew that he was doing all this under duress, he could not
escape a sense of guilt. When the day of the revolution came everybody
wanted to prove to himself and to the world that he or she was a decent
man or woman who wanted to live up to the highest moral standards.
It is difficult to say which is greater, the monstrosity or the
ludicrous absurdity of the Soviet assertion that the Hungarian freedom
fighters were fascists or counter-revolutionaries. Not only in the
history of Hungary, which proverbia4ly has always been rent with
internal strife, but in the history of any nation, it is almost
impossible to find an instance of such complete unity as was
demonstrated in the revolution. Catholics, Protestants, Jews and
non~believers fought side by side in complete harmony. As to the
allegation that it was a counter-revolution, it is the fondest wish of
the Soviet bureaucrats that it should have been that. Then they would
have little need to worry.
As Milovan Djilas, the leader of the unofficial Yugoslav opposition,
and the former second-in-command to Marshal Tito, pointed out in his
article for
The New Leader, the most reactionary element in the Soviet Union
realised that they had to crush the Hungarian revolution because its
success would have demonstrated that it was possible t6 establish a
society in which there was no exploitation of man by man in which the
individual enjoyed freedom. This would have rendered completely invalid
the argument that it was necessary to maintain a terror regime to
prevent exploitation and would have shown that this argument was nothing
but a pretext under which the Soviet bureaucracy; itself was exploiting
the masses.
Tools of Reaction
I believe that we can accept Djilas' analysis as essentially correct.
Even those who assert that where landowners and monopolists exploit the
people Marxist-Leninist Communism is a step forward can have no argument
to justify the suppression of a people's demand to establish freedom in
their classless society. Perhaps one of the reasons of the complete
unity of the Hungarian people in their revolution was that there were no
classes or vested interests which would have turned Hungarian against
Hungarian, except for a very small group of Stalinist bureaucrats and
the Security Police. Even members of this group could not feel secure or
completely detached from their exploited relatives.
Even if somebody chose to apply the Marxian theory of social evolution
and revolution to the events in Hungary, he would have to come to the
conclusion that the Hungarian people had overthrown a social system
which had become completely out-dated and useless, which had outlived
itself, an empty shell. He would find evidence to support his theory in
the inability of the Soviet army to re-establish the overthrown social
order by the use of thousands of tanks and scores of divisions. Besides
the loss of life and the tragedy that has befallen the Hungarian people,
the most ominous feature of the events is that the Soviet government and
army have become a tool of reaction even by their own Marxist standard
and yardstick.
No amount of dialectics can offer an escape from this fact.
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