Economic effects of the May coup

Economic effects of the coup

A feeling of relief, which took place a year after the "May accidents", the economic recovery was explained by itself, and this revival was attributed to Piłsudski. The undeniable facts are as follows: 1/ Since June 1926 r. until November 1927 r. the number of the unemployed decreased from 300 do 117 thousand; 2/ Trade balance throughout the year 1926 active, with an average monthly increase 34 million [PLN], broke down from the second quarter 1927 r. and from then on we paid extra monthly 19 million [PLN]; 3/ The first Sanacja government found a budget balanced by Zdziechowski, which Minister Klarner admitted, who himself brought a budget with a deficit 250 million [PLN]. And what were the conclusions here?? If the trade balance was active before May, this was caused by the restrictions of the coalition government, and a reduction in the zloty also helped: cheap production could be widely distributed. Then, in second half 1926 r. a lucky strike of English miners broke out and coal exports increased more than threefold (from VI to X – 8 600 thousand. your). If, nevertheless, a passive trade balance was soon achieved, it shows, that the government stopped looking after other branches of exports and indulged importers. The reduction in unemployment was undoubtedly a consequence of the English strike. This boom has stopped smiling since December 1927 r. Probably the Klarnerian deficit was explained by contributions to the revival of the domestic economy, but the officers were also due something. After the above experiences with the trade balance, no one wanted to go back to the high currency and the dollar exchange rate – 8,90 PLN has been established for many years.

A loan was cited as proof of foreign confidence in the new government, which Poland obtained from American banks in the fall 1927 r. in the minimum amount 72 min dollars, the majority of which was to contribute to the capital of Bank of Poland, a 1/4 part to revive the economic development of the country. Previous loans, e.g.. Sanatoriums called Grabski's "dillonowska" liabilities, because they were placed under conditions. But now an unpleasant condition has been imposed, that a delegate from those Dewey creditors would join the Board of Bankers. This is how foreign countries reacted to the official attitude of Warsaw, who reluctantly listened to the calls of the domestic opposition for control. The increase in confidence was not in doubt, however. Ever since the disruptive and negative opposition was replaced by a creative opposition, not prone to strikes and attacks, and representing the majority of Poles according to previous elections – 3 millions of active voters, since the upheaval factors shared responsibility for the state, it could be managed with a plan and even on a grand scale.

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