as inadequate. Slovaks in northern Hungary, Romanians in Transylvania, and Serbs in Vojvodina all wanted more autonomy, and unrest followed the act's passage. The government took no further action concerning nationalities, and discontent fermented. Anti-Semitism appeared in Hungary early in the century as a result of fear of economic competition. In 1840 a partial emancipation of the Jews allowed them to live anywhere except certain depressed mining cities. The Jewish Emancipation Act of 1868 gave Jews equality before the law and effectively eliminated all bars to their participation in the economy; nevertheless, informal barriers kept Jews from careers in politics and public life. Rise of the Liberal Party Franz Joseph appointed Gyula Andrássy—a member of Ferenc Deák's party—prime minister in 1867. His government strongly favored the Austro-Hungarian Compromise of 1867 and followed a laissez-faire economic policy. Guilds were abolished, workers were permitted to bargain for wages, and the government attempted to improve education and construct roads and railroads. Between 1850 and 1875, Hungary's farms prospered: grain prices were high, and exports tripled. But Hungary's economy accumulated capital too slowly, and the government relied heavily on foreign credits. In addition, the national and local bureaucracies began to grow immediately after the compromise became effective. Soon the cost of the bureaucracy outpaced the country's tax revenues, and the national debt soared. After an economic downturn in the mid-1870s, Deák's party succumbed to charges of financial mismanagement and scandal. As a result of these economic problems, Kálmán Tisza's Liberal Party, created in 1875, gained power in 1875. Tisza assembled a bureaucratic political machine that maintained control through corruption and manipulation of a woefully unrepresentative electoral system. In addition, Tisza's government had to withstand both dissatisfied nationalities and Hungarians who thought Tisza too submissive to the Austrians. The Liberals argued that the Dual Monarchy improved Hungary's economic position and enhanced its influence in European politics. Tisza's government raised taxes, balanced the budget within several years of coming to power, and completed large road, railroad, and waterway projects. Commerce and industry expanded quickly. After 1880 the government abandoned its laissez-faire economic policies and encouraged industry with loans, subsidies, government contracts, tax exemptions, and other measures. Between 1890 and 1910, the proportion of Hungarians employed in industry doubled to 24.2%, while the proportion dependent on agriculture dropped from 82% to 62%. However, the 1880s and 1890s were depression years for the peasantry. Rail and steamship transport