Pola

As a political force Communism was killed by Polish national ism and the Russian war. But Socialism of the Marxian type is important both in politics and in trade unionism. In the latter it has combined with economic forces to restrict output and promote unrest and strikes, which have been very frequent. However, in many industries, notably in Upper Silesia, under the stress of "stabilization" and German competition, the hours and efficiency of labour have been increased. A number of statutes for the pro tection of the workers against accident, illness, old age and unem ployment have been passed. In this, as in some other fields, there is a difference between Polish law and Polish practice.

Commerce and Trade.

For the first few years of the Polish Republic trade was carried on under war conditions and commer cial policy was opportunistic. The situation was serious. Com plete ruin resulted from the war in all the central, southern and eastern provinces. Injurious also were loss of the Russian markets for Polish textiles, the monopoly of trade in the western prov inces by Germany, and the political collapse and economic disintegration of Austria. Not till 1924 did trade become at all normal. The most favourable feature was the size and impor tance of the internal market, due to the reunion of a Polish people numbering nearly 3o millions and the increasing pros perity and purchasing power of the peasant proprietors, who formed the majority of the population, and whose labour, as early as 1922, satisfied the needs of the home consumer and had two million tons of potatoes, half a million tons of corn and 15o,000 tons of beet sugar available for export. These agricultural prod ucts have increased in amount since 1922, while both meat and live stock are exported. Timber and coal, however, are Poland's chief exports at present ; and she has found a new market for her textiles in Rumania, and is seeking markets in the new Baltic States and in western Europe.

Foreign Trade Relations.

The political framework of Poland's foreign trade has been but recently shaped and is not yet complete. Commercial agreements were made with Czecho slovakia and Rumania in 1921, and with Austria, Yugoslavia, Switzerland, France, Italy and Japan in 1922, with Finland and Turkey in 1923, with Denmark, Iceland, Sweden and Great Britain in 1924, with the United States, Czechoslovakia and Norway in 1925 and 1926, and with Estonia, Persia and Latvia in 1927. With Germany and Russia Poland's largest neighbours

only temporary agreements were effected. During the period of inflation, prohibitions both of export and import were common, but with the stabilization of the currency and some years of expe rience the way was open for the introduction of a new customs tariff which was instituted in 1924.

Political changes have not greatly affected the main currents of Poland's foreign trade. Estimates of percentages differ, but about half of both exports and imports are German, and important amounts (e.g., of American cotton) come through Germany. The bulk of the remainder is with Poland's neighbours, notably Ru mania and Austria. Great Britain takes about 7% of both imports and exports. The part played by Russia is much less than in pre war times. The nature of the trade has undergone little change. The exports are (a) cereals, dairy produce, timber, sugar and flax; (b) coal, iron, steel, petrol and chemicals from the mining areas; and (c) textiles. The imports are (a) fertilizers and agri cultural machinery and equipment (b) machinery and raw materials for the industrial areas; and (c) fish, cocoa, fats and other foodstuffs not produced at home.

With the stabilization of the currency after the post-war infla tion the banks resumed something of their importance. Some of the weaker banks disappeared. Some Government banks were amalgamated. In general, deposits increased continuously and with them discounts and advances.

Figures of note issues are as follow:— (a) In millions of marks till April 27, 1924.

(b) Henceforward in thousands of zloty. The zloty currency was introduced on April 28, 1924, at a rate of 1,800,000 marks to the zloty, and gold parity of 25.22 zloty= i.

(c) New gold parity from Oct. 13, 1927; zloty 43.382=41; zloty 8.9141 =$I.

Before the introduction of the zloty currency, the note circu lation was in the hands of the Polska Krajowa Kasa Pozyczkowa or P.K.K.P. (the State Loan Bank), a Government institution, whose dominant position in commercial banking was the special feature of the inflation of With the new currency, this bank was merged in the new Bank Polski (Bank of Poland), which was established as an independ ent central bank on the model of those set up (e.g., in Austria, Hungary, etc.) in the course of post-war reconstruction schemes.