Csaba Lentner - East of Europe, west of Asia

44 | Chapter 2: State-controlled Economy in the Era of Dualism (1867–1918)
were granted preferences, including 267 agricultural distilleries, 598 other
industrial plants. In total, 2058 factories received state subsidies and cash
grants, of which 699 agricultural distilleries (34%) and 1359 other industrial
companies (66%), plus 380 factories received state aid for the acquisition
of machinery.
The most effective means of the state to support industry was the mandatory
provision of public transport (procurements by the state, other
authorities and state-supervised facilities like railways and shipping, and
the purchases of the beneficiary industrial companies) for the domestic industry.
The value of public transport in the early 1890s was 50 to 60 million
and in 1913 it was 404.2 million krones. Hungarian industrial purchases by
transport companies amounted to 308.3 million krones, the acquisitions of
the government and other authorities were 64.9 million, and the Hungarian
quota for the joint military and naval industry purchases was 31.0 million
krones. “Public consumption in proportion to the volume of industrial production
is not as important in any country of Western Europe as it is in our
country.” 182 In a short period of time, a state-driven market economy was
built up from a feudal society, creating an increasing production value, a
growing state budget, the results of which, unfortunately, were largely lost
in the First World War.