takings for the encouragement of cottage industry, and committees and societies working for the furtherance of industrial objects. Gifts of machinery are made to independent craftsmen, to people engaged in cottage industry, and, in cases where a moderate extension of premises, plant, etc., is contemplated, to factories of medium size.

We find the first traces of subsidies being given by Government as far back as 1868 :

The sums appropriated for this purpose were :-Between 1868 and 1880, 420,414 crowns, 86 fillér; between 1880 and 1890, 1,259,530 crowns, 24 fillér. Most of this money was, however, given to support cottage industry, handicrafts, and independent craftsmen (master workmen).

Factories received State favours (concessions) only.

Between 1890 and 1899 the sums appropriated for subsidies increased enormously from year to year during this period an aggregate of 4,386,412 crowns, 52 fillér (an annual average of 487,379 crowns) was devoted to this purpose.

The rapid increase in this field dates from 1899, the year in which the measures for the development of industry began to assume a more serious aspect, their scope being at that time extended considerably. Between this year (1899) and 1906, roughly speaking, 16 millions of crowns, and between 1907 and 1909, 19,800,000 crowns were distributed under the head of subsidies.

We must not omit to mention the fact that the subsidies actually voted, a great part of which are not distributed until the following years, are considerably in excess of the sums quoted above; e.g., between 1900 and 1906, the aggregate of the subsidies voted amounted to 29,600,000 crowns, between 1907 and 1909, to 38,400,000 crowns.

The moneys referred to above were devoted, partly to the support of manufacturing industry, partly to the assistance of independent craftsmen, or to the encouragement of industry in other ways.

Table A (see below) will give the reader an idea of the vast sums devoted between 1899 and 1909, in the form of subsidies, to the support of manufacturing industry, and of the results achieved (by the end of 1909).

During the period referred to altogether 181 new factories were established and additions made to factories in 156 cases, with the help of the State.

These factories were distributed among the various branches of industry as follows:

As will be seen, for the reasons put forward above, the greater part of these factories are engaged in textile and iron industry.

In return for the subsidies voted, it was stipulated that a capital of, altogether, 138,000,000 crowns should be invested, and 36,843 hands permanently employed.

The results of the measures taken to develop industry are shown in a favourable light by the reports of the officials deputed to control the use made of the subsidies between 1899 and 1909 : the data contained in the same prove that, at the time the work of control was carried out in 1909, the amount of capital invested was not 77,000,000 crowns, as stipulated, but, roughly, 106,000,000 crowns, and that the number of hands employed exceeded that stipulated (22,361) by 9,039.

Between 1899 and 1901, in addition to the subsidies in money referred to above, 404 factories received gifts of machinery of an aggregate value of 4,800,000 crowns. Here, too, the results achieved were relatively of extreme significance, for only in 14 cases had machines (representing a total value of 114,000 crowns) to be forfeited (taken back) for non-fulfilment of the conditions stipulated, or owing to the establishment in question being closed.

As regards the machinery supplied between 1899 and 1909 to independent craftsmen (master workmen) and the results achieved thereby, the table (B) to be found below, containing the data comprised in the reports of the controlling officials, shows us how things stood at the close of 1909 :

TABLE B.

Concerning the machinery supplied to independent craftsmen (master workmen) between 1899 and 1909, and the results shown at the close of 1909.

According to the above data, 1,922 independent craftsmen were supplied with machines of the aggregate value of 3,762,567 crowns. In 48 cases the machines had to be declared forfeited, because the craftsmen in question were unable to use them or keep them permanently working.

A considerable sum is represented by the machines supplied to co-operations, too-219 cases in all, the machines involved. being of a total value of 1,058,007 crowns. Of the aggregate number of cases where machinery was supplied, 2'6 per cent. have had to forfeit the machines, while in 13'1 per cent. the machines have passed into the permanent possession of the recipients. The rest are still under control: and, according to the reports of the respective inspectors of industry and chambers of commerce, the majority of the machines are being used with favourable results.

The figures above quoted show the measures taken by the State for the development of industry to have been remarkably successful, the proportion of failures being a very small one, whether we take manufacturing industry or independent craftsmen. However, these data are in themselves insufficient to enable us to judge clearly of the results: and the picture thus offered might lead to incorrect conclusions. To avoid such an eventuality, we must investigate the said results from the point of view of the actual development of industry, a correct estimation of which may perhaps be formed by a comparison of the respective outputs of two particular years, and by quoting the data referring to the foreign trade of the country.

We have no detailed figures but those referring to the production of manufacturing industry: for that reason it is with the latter that we intend principally to concern ourselves.

The statistics of the years 1898 and 1906 may serve as a guide in our investigation of the development of the production of manufacturing industry.

In order to determine the actual results of the measures taken for the development of industry, we should prefer to have at our disposal the data referring to the production of Hungarian manufacturing industry in 1909; in fact, we ought really to wait a few years more if we would observe the effective results of the secrifices made by the State, and would express the same in figures reflecting the exact state of affairs.

However, we believe that even the statistical data of 1906 will offer a suitable basis for the making of comparisons: development in the field of industry does not take place by leaps and bounds; and in the present case we are endeavouring to determine, not absolute, but relative results.

The development of the production of our manufacturing industry between 1898 and 1906 is shown in the following table (C):