Dénes Dienes: History of the Reformed Church Collég in Sárospatak (Sárospatak, 2013)

János Ugrai: „THE PERIOD OF NATIONAL ADVANCEMENT” 1777-1849 - The College and its environment - the manor farming of the College

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FROM THE ENLIGHTEMENT

TO THE END OF THE WAR

OF INDEPENDENCE

its use of the profit which it generated and, of course, in that other economic enterprises could not count on the generosity of dutiful benefactors. Despite these positive elements of its own activity, the College of this period was able to assist and encourage others only in a very limited way.

This situation underwent fundamental change as a consequence of the advances made in the supplying of credit loans. It is generally recognized that the prolonged existence of feudal estates played a significant role in retarding social development in Hungary as well as contributing to its general insolvency. The absence of a market for real estate prevented banks from evolving and from acknowledging the estates of insolvent clients as indemnities. In the absence of credit, however, even the wealthier were incapable of launching ventures of any significance, so both the economy and society stagnated. This immobility was eventually nudged into a few degrees of minimal movement by certain types of institutions. In addition to the smaller banks, the church districts and colleges figured among the more prominent institutions which provided credit in this underdeveloped economic situation. The College in Sárospatak, for instance, lent out more than one hundred twenty-six thousand forints to those submitting requests in 1808. Evidence of the high degree of demand and the tight supply was that those seeking loans often had to wait for months, even one or two years at times, until either a sufficient number of loans were repaid or the base capital of the school was increased by the arrival of a new donation.

The majority of individuals applying for loans were from among the ranks of the noble landlords of northeastern Hungary. These included the Rádays, the Vays, the Lónyays, the Fáys and the Ragályis but loans were also provided to local and regional merchants, entrepreneurs and to the professors of the College. Further beneficiaries included the pastor from Sátoraljaújhely, the entrepreneur managing the College’s press or its tavern, the Reformed Church congregation of Nagybánya and the Catholic parson in Tiszaörs. The low rates of interest provided substantial relief mainly to the nobles of the middle class and, in addition to generating increased profit for the school, the loans also helped enliven the economy of the region. Although this assistance did not suffice for extensive modernization, it provided the basis for smaller investments and for maintaining production at an acceptable level.

Sárospatak in 1785