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Anti-jewish Laws Disrupting Hungarian Economy, Economist Tells Nazis

The dilemma in which the Hungarian Government finds itself as a result of its attempts to satisfy German demands for a drastic solution of the “Jewish problem” along Nazi lines while at the same time encountering economic difficulties because of the ousting of Jews from many industrial and commercial enterprises is highlighted in an article in the political review, Magyar Szemle, which was received here today.

The article, which is written by one of Hungary’s leading economists, Sandor Borotvas Nagy, is presumably an attempt to explain Hungary’s position to Germany. “There are two ideas that dominate our age: race and economics,” Nagy writes. “The racial question cannot be treated from an extreme viewpoint because that would destroy the idea of the Hungarian state. We would have to face great difficulties if we examined everybody to find out the blood of his ancestors.”

Continuing, Nagy takes a stand directly opposed to the Nazi racial theories, stating that “not only in the Carpathian Basin, but throughout central Europe, there is a mixed race. In the spirit of St. Stephen we regard as a brother everyone who has declared himself to be a Hungarian, and who in critical times even shed blood for the country.”