Budapest in 1896

From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 12-14:

In 1896 Budapest was the largest city of mills in the world (rivalled at that time only by Minneapolis). Wheat from the great plains of Hungary and other parts of the Balkans was turned into flour in the mills of Budapest. Many of the successful entrepreneurs who began their business lives as grain traders became mill owners and then diversified. Budapest was by far the busiest port on the Danube. The (mostly nationalized) Hungarian river transport company, MFTR, had overtaken the Austrian equivalent more than thirty years earlier and was thriving. A pleasant daily Budapest–Vienna overnight journey on white paddle steamers was highly popular until the 1920s. Trains between the two cities were fast – four and a quarter hours in 1896. In 2022 it was three hours and thirty-five minutes.

Budapest finance caught up and surpassed the growth of agricultural and industrial production. By 1900 Budapest became the banking centre of Central and Eastern Europe. Between 1867, the date of the ‘Compromise’ which created the Dual Monarchy of Austria-Hungary, and 1914 the number of Hungarian banks grew from eleven to 160 and their capitalization increased fivefold. A few of them – the First Hungarian Commercial Bank and the Hungarian Credit Bank – rivalled the biggest Viennese and German banks in size and prestige, as their palatial headquarter buildings in downtown Budapest, designed by the most renowned European and Hungarian architects, showed. Their owners, such as the Wolianders, the Wahrmanns, Hatvany-Deutsch and Chorins, joined the European super-rich.

Sixty per cent of the Hungarian manufacturing industry was based in Budapest, from small enterprises to the giant Manfréd Weiss works, which employed more than 5,000 workers by 1913 in a vast factory complex on Csepel Island in the Danube, just north of the city. The factory exported munitions to Spain, Mexico and Britain, whose forces would soon be using them in a war against Austria-Hungary.

Little suggested that the unprecedented boom would not continue. Tekla Szilard, the mother of the Nobel Prize-winning physicist Leo Szilard, who would later flee Budapest from fascism and work on the Manhattan Project that designed and built the first nuclear bomb, described her mood on her wedding day, 25 April 1897, and ‘the boundless optimism we all feel…The city was growing by leaps and bounds. I felt as though this was my progress…my development.’ But some prescient people were more wary about the pace of change and thought of what was left behind. Krúdy wrote in 1900 about his beloved Budapest: ‘They kept on building every day, palaces topped by towers rising towards the sun; and at night it seemed there were endless burials…of the town’s broken matter, of old people and old houses, of old streets and old customs.’

Within a generation much of this new wealth, optimism and confidence would disappear. In the millennium year Hungary was nearly three times the size it would be just twenty-five years later and its population around 50 per cent higher. Most of present-day Croatia and Slovakia, a third of Romania and a large slice of Serbia were all part of Greater Hungary. It possessed a busy seaport [Trieste] on the Adriatic with a busy merchant navy. Then the disaster of the First World War struck and Zweig’s World of Yesterday came to an end. Hungary has never recovered from the shock.