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2. Inter-war Czechoslovakia and Legal Regulation of the Status of Minorities
in the majority of nostrified businesses, and in many nostrified businesses the Czech capital gained decisive influence. In this way, nostrification, which was meant to release the Czechoslovak Republic from the economic influence of Vienna and Budapest, introduced complex mechanisms to promote the participation of the Czech capital, and consequently rearranged the powers of individual nations within the Czechoslovak economy, weakening the Germans and Hungarians. The persons concerned were mostly foreigners, i.e. citizens of newly established Austria and Hungary, but that was largely irrelevant in terms of the influence of the nations within the state. Overall, through monetary reform, nostrification, and repatriation of the capital the Czech business elite managed to eliminate German and Hungarian supremacy in industry, business and banking, and to effect large capital and property transfers to their own benefit. On the other hand, it should be emphasised that the strengthening of the Czech positions in the economy was a long-term process which had started at the time of the Habsburg Monarchy, and that the Germans themselves were largely responsible for the weakening of their positions. Notably during the crucial initial stages after the establishment of the Czechoslovak Republic the Germans felt distrust and antipathy toward Czechoslovakia, and lesser participation of the German capital significantly contributed to a reinforced Czech position within the new state’s emerging economy.265 While the crucial influence of the German capital was weakened, it remained greater than what the proportion of the minority to the population would suggest. Thus, in many prominent businesses (notably in the mining and metallurgy industry) the German language remained as the official language, and Germans often held dominant positions in businesses with a predominantly Czech workforce. “Managers of mines and ironworks who were in charge of production tended to prefer German workers, assigned better paid work to them, and did not dismiss them among the first ones to be dismissed . . . , etc.”266 In this way, the members of the largest German minority managed to maintain, at least partially, their advantageous position in the private sector, unlike in the public sector. As in the case of industry and business, at the beginning of the existence of independent Czechoslovakia agricultural property was largely held by the Germans and Hungarians. One third of all land belonged to large farm estates which were predominantly owned by German and Hungarian aristocracy and the Catholic church. The land reform, in addition to its national significance, also aimed at social aspects because the rural population had struggled with 265 Lacina, Formování československé ekonomiky, pp. 91, 100, 109 and 125; Kárník, České země v éře první republiky, vol. 1, pp. 213–220. 266 Deyl, Sociální vývoj Československa 1918–1938, p. 40.
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