MARSHAL PILSUDSKI'S RULE, 1926-35 Meanwhile internal dissensions intensified while the conclusion of a new Russo-German treaty in Berlin (March 1926) increased the gen eral nervousness. Pilsudski, in his retreat, was looked up to by large masses of the people as the only man who could secure a better future for the country. His adherents and opponents formed two opposing camps in the army. In parliament, the Right, since the days of his provisional presidency, had used every legislative device to limit his power and influence. Now, in the dispute over his commandership, the Right desired to frame the Army Organization bill in such a way as to bring the army under the direct control of parliament, while Pilsudski insisted on complete independence of the commander-in-chief.
Matters came to a crisis, when, owing to the dissensions over the budget, the Socialist ministers left the cabinet, and Count Skrzyfiski himself resigned in consequence. After a prolonged period of negotia tions Witos succeeded in forming a ministry. Rumours were current that he meant to rely exclusively upon the support of the Right, and to settle the question of the commandership in the sense demanded by the Nationalists. Thereupon, on May 12, Pilsudski suddenly entered Warsaw at the head of troops. The Government proclaimed him a rebel. The concentration of Government troops in Warsaw, however, was hampered by a strong strike movement in the country, chiefly among the railwaymen ; and after two days of heavy fighting in the streets of Warsaw, Pilsudski was master of the capital. The Govern ment resigned, and the president of the republic abdicated. Rataj, the marshal of the Seyin, became acting head of the State, in accordance with the terms of the constitution. A provisional cabinet under Pro fessor Bartel was appointed, pending the election of a new president. By May 17, the country was quiet, and when the two chambers met for the presidential election, there resulted an overwhelming majority in favour of Pilsudski. He, however, refused the office in favour of his nominee, Professor Ignacy Moscicki, a scientist not formerly en gaged in politics, who was duly elected. Pilsudski himself became minister of war, and a few months later, officially assumed premier ship in the cabinet.
Pilsudski met with little opposition when he proceeded to reform the constitution in the sense of limiting the powers of parliament, and strengthening the executive. In doing this, he stopped short, however,
of the more thorough-going dictatorship established in Italy. Many points in State organization which it had proved impossible to get settled by parliament, were now settled by decree. Many personal changes were made in the higher posts both of the civil administration and of the army: they were not always improvements as far as pro fessional efficiency was concerned, but they invariably strengthened the Government's grip of the country. The freedom of political dis cussion in the press was curtailed by two severe decrees. On the whole, however, the home policy of the new Government was liberal and democratic enough to cause no discontent among the masses.
Inflation, which had begun to reappear, was stamped out ; the budget was strictly balanced, and reserves created. The urgent need for an increase in the salaries of the State servants was satisfied only gradually and by very economic instalments. This policy of circum spection, coupled with a fairly good harvest in 1926 and the favour able effect of the English coal strike of that year on Polish coal export, produced good results: the rate of exchange of the zloty ceased to waver, and remained de facto stabilized at about 43.60 to the f, or 8.90 to the $. The Government engaged the services of the American currency expert Professor Kemmerer, and the principal recommenda tions of his mission concerning reforms in financial administration were carried into effect by presidential decree. An American loan of $70,000,000 was obtained by Poland in autumn, 1927, and was used principally for the final stabilization of the currency system. The appointment of an American adviser as a member of the board of directors of the Bank of Poland established a useful permanent con nection with American capital. In spite of frequent provocation, peace with Russia was steadily maintained; even after the murder of the Soviet envoy in Warsaw by a Russian emigrant student, a rupture was avoided, and negotiations towards the conclusion of a commer cial treaty were begun. Similarly, everything was done to produce better relations with Germany, although incidents which might have caused quarrels were frequent. With Germany also, negotiations for a commercial treaty were opened in 1927.