Władysław Grabski
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Władysław Grabski (7 July 1874 - 1 March 1938) was a Polish politician, economist and historian. Main proponent of the currency reform, Prime Minister of Poland (1920 and 1923-1925), brother of Stanisław Grabski.
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[edit] Biography
Władysław Grabski was born in 1874, in a family manor in Borowo near Łowicz, Poland. He was an educated man, who studied politics at the School of Political Science in Paris and history at the University of Sorbonne. While in Paris, Grabski’s political views changed drastically: he “surrendered his belief in the socialist theory of class struggle and adhered to the idea of social and national solidarity" Arguably, this shift in political ideology became an essential component in Grabski’s policy making. He became an outward looking visionary, a man who would be responsible for creating the Bank of Poland and implementing the Polish currency. Grabski’s cabinet became the longest standing cabinet in the interwar Poland, precisely because his contributions in the agricultural and financial sectors in inter-war Poland remain unmatched. At the same time, however, Grabski’s cabinet was severely criticized. Stanisław Głąbiński, for example, criticized Grabski’s inefficiencies in the sphere of international relations, and Wincenty Witos disapproved of Grabski’s deficient agricultural reform, as well as his inability to inform the public of the state’s real financial situation.
The years Władyslaw Grabski had spent in Paris became an impetus behind Grabski’s desire for his involvement in the Polish government. Soon after Grabski’s return from Paris, in 1905, he founded the Agricultural Society in Łowicz, in central Poland. The founding of the Agricultural Society was quite significant. It was the first such organization founded in the Russian partition of Poland. Grabski’s Agricultural Society quickly won the support of many peasants, which in turn led to the creation of the National Labor Union. Due to the growing autonomy and strength of Grabski’s Agricultural Society and the Labor Union, in 1905, Władyslaw Grabski was arrested by the Russian authorities and imprisoned in Warsaw. Grabski’s imprisonment, however, lasted less than a year and interestingly enough, in 1906, Władysław Grabski was elected a member of three successive sessions of the Duma, the legislative assembly of the Russian Empire. It was at that time that he became involved in the work of the budgetary commission with the Russian Ministry of Agriculture. Grabski’s involvement in the budgetary Commission became an impetus for his later desire to become the finance minister in the Polish parliament. When World War I broke out, he organized the Central Citizens' Committee, which was responsible for restoring order into the life of a society devastated by the partitions, and to represent the interests of Polish people before the Russian authorities.
Certainly, Grabski’s influence in the Polish affairs increased when he became Minister of Treasury in 1920. In December 1923 he became Prime Minister and served as Treasury Minister in a specialist cabinet (appointed by but not necessarily composed of elected parliamentary representatives). Holding two positions of such importance at the same time was extremely difficult and previously unseen. And yet, not only did Grabski manage to implement reforms which undoubtedly alleviated Poland’s economic situation, but he managed to preserve his cabinet for twenty three months, an unprecedented length for a cabinet in interwar Poland. Until the end of 1924, Grabski’s cabinet enjoyed a great popularity among the masses. Poland considered Grabski a visionary, and the Jews commented that “Grabski was a God [because] he saved the currency".
Yet Grabski remained a controversial figure for the twenty three months he remained in office. Stanisław Głąbiński, for example, argued that in the sphere of foreign relations, Grabski did not show the desired assertiveness. At the League of Nations conference, Grabski did not mention the League’s unresponsiveness to the Russo-Polish War of 1919-1923. According to the tenth article of the treaty of Versailles, “The Members of the League undertake to respect and preserve as against external aggression the territorial integrity and existing political independence of all Members of the League.” Clearly, however, the League of Nations remained aloof and impassive in 1920. Grabski’s decision not to raise the issue of the League’s lack of action cost him severe criticism from the Polish parliament. Głąbiński was not the only critic of Grabski’s cabinet. Wincenty Witos criticized Grabski for his excessively optimistic attitude regarding the financial reforms. Grabski’s continual optimism became the sign of hope for stabilization of the Polish currency. During one of many parliamentary debates, Witos recalled minister Byrka’s speech, which virulently attacked Grabski’s “frivolous politics” and urged the sejm to give Grabski the “vote of confidence.” Even though Byrka’s appeal was denied, Grabski was forced to resign.
[edit] Currency reform
Grabski’s (and the ministerial cabinet’s) great achievement in those years was the foundation of the Bank of Poland and the creation of the new Polish currency – the gold-based złoty which replaced the Polish mark. The Act of January 11, 1924 on the improvement of the state's treasury and currency reform introduced a new monetary system and established the issuing bank. “The Bank of Poland was founded as a joint stock company, which guaranteed its independence from the government and the state treasury. The Act also abolished the Polish National Savings Union which had acted as an issuing bank. Its functions were taken over by the Bank of Poland.” Stanisław Karpiński became the first president of the Bank of Poland. On January 14 the organizing committee of the Bank of Poland was established, and on January 26 the sale of the bank's shares began. Payments could only be made in foreign currencies and in gold. On April 15, during the first shareholders' meeting, the Bank of Poland Joint Stock Company was established.
Władysław Grabski went further than establishing the Bank of Poland and the currency. He built a network of state banks and founded the Bank for National Economy. He also initiated far-going changes in the structure of Polish exports and industrial output. He established the Border Defence Corps. After the end of the so called "tariff war" with Germany he retired from active politics and devoted himself to pedagogic and academic work at the Warsaw Agricultural University (SGGW). In 1926, he became its rector. In 1936 on his motion the Rural Sociology Institute was established, of which he remained head until his death in 1938.
At the same time however, there were continuous criticisms directed against Władysław Grabski’s reforms. In 1925, Grabski himself commented that he was too optimistic about his economic reforms and that he should have realized that given the circumstances (great depression and the recuperation from World War I), a complete recovery of Polish economy was virtually impossible. There were enormous price discrepancies between agricultural and manufactured goods. The Bank of Poland was faced with both a commercial deficit and an increasing national debt. The government made numerous unfavorable investments and in 1925, the Sejm approved a proposal for an excessively high budget, despite frequent warnings from Grabski’s cabinet. On July 29, 1925, the value of the Polish złoty declined significantly, foreshadowing the eventual “tariff war” with Germany.
Undoubtedly, despite the magnitude of problems faced by many interwar Central European countries, Poland was fortunate to have had Grabski as the minister of finance. The magnitude of Grabski's accomplishments remains unforgotten. In 2004, Poland celebrated the 130th anniversary of Władyslaw Grabski's birthday and the 80th anniversary of the public finance reforms he introduced. In 2004, the Sejm of the Republic of Poland passed a resolution proclaiming 2004 as Władyslaw Grabski's Year. However, at the same time Władyslaw Grabski does not remain a central figure in inter-war Polish history.
[edit] Bibliography
Most important papers:
- Bilans Królestwa Polskiego w finansach Rosji 1909
- Rocznik Statystyczny Królestwa Polskiego 1914 (ed.) 1915
- Cele i zadania polityki agrarnej w Polsce
- Dwa lata pracy u podstaw państwowości naszej 1927
- Historia Towarzystwa Rolniczego 1858-1861
- O własnych siłach
- Historia wsi w Polsce
- Wieś i folwark
- Wieś jako siła społeczna
[edit] References
[edit] External link
- Grabski's bio at the webpage of the National Bank of Poland
| Preceded by Leopold Skulski |
Prime Minister of Poland 1920 |
Succeeded by Wincenty Witos |
| Preceded by Wincenty Witos |
Prime Minister of Poland 1923–1925 |
Succeeded by Aleksander Skrzyński |
