Bank Emisyjny w Polsce
Encyclopedia
Bank Emisyjny w Polsce was a bank
created in the General Government
(Nazi occupied Poland) in 1940.
decided not to introduce German currency there, as it did not want to increase the money supply
. Instead, it introduced a system of Reichskreditkassen (credit offices of the German Reich), which issued temporary bonds. This system, intended to be temporary from the beginning, was to be replaced by a new German controlled currency and central banks in occupied territories. In the meantime, various Polish banks and credit institutions were temporarily closed, while some of their assets were nationalized by the German government. Many people lost their savings. In particular, institutions with Jewish ownership were targeted, as well as Jewish customers. At the same time, German banks began opening their offices in the newly available territories. The plans for a complete takeover of the Polish financial system by the Germans was never finished before the war ended.
On 15 December Hans Frank
, the governor of the General Government
, passed a decree creating the Bank Emisyjny, which begun operating in April. Bank Emisyjny was located in Kraków
.
It was the only institution in occupied Poland with the name Poland in its title.
It was headed by Polish economist, Feliks Młynarski. His German supervisor, and representative of the Reichsbank, was Fritz Paersch.
of Poland, the Bank of Poland
, which managed to evacuate most of its assets, including gold
, and part of the mint
, before the invasion. Officially, however, the Bank of Poland still existed, as Germans unsuccessfully tried to use it on the international scene to regain the assets evacuated and under the control of the Polish government in exile
.
The bank's main functions were: issuing currency, discounting promissory note
s and cheque
s, issuing short term loans, and taking deposits.
The official exchange rate was set as 2 złoty = 1 reichsmark. This system, favoring the German currency, was one of the ways of boosting the Nazi economy by pillaging that of a conquered country. A black market exchange rate would vary from 3 to 4 złoties for a reichsmark.
From 1940 until 1945 it financed the Nazi economy with little regard for the Polish economy. The Bank, as well as other financial institutions in occupied Poland, were tasked with gathering as much capital
as possible, to be invested in the German economy. Approximately 11 billions złoties (5.5 billions reichsmarks) were transferred to the German army. It printed new currency
(unofficially named after the Bank headquarters "złoty krakowski" - Złoty of Kraków - or after director Młynarski "the młynarki") with no backing which resulted in increasing inflation
(market prices rose by three to six times and the exchange rate for an American dollar doubled over the war period).
In January 1945, remaining assets and German personnel of the Bank were evacuated into Germany proper. It was officially liquidated by the Polish communist government in 1950.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
created in the General Government
General Government
The General Government was an area of Second Republic of Poland under Nazi German rule during World War II; designated as a separate region of the Third Reich between 1939–1945...
(Nazi occupied Poland) in 1940.
Creation
After the German invasion of Poland, the ReichsbankReichsbank
The Reichsbank was the central bank of Germany from 1876 until 1945. It was founded on 1 January 1876 . The Reichsbank was a privately owned central bank of Prussia, under close control by the Reich government. Its first president was Hermann von Dechend...
decided not to introduce German currency there, as it did not want to increase the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
. Instead, it introduced a system of Reichskreditkassen (credit offices of the German Reich), which issued temporary bonds. This system, intended to be temporary from the beginning, was to be replaced by a new German controlled currency and central banks in occupied territories. In the meantime, various Polish banks and credit institutions were temporarily closed, while some of their assets were nationalized by the German government. Many people lost their savings. In particular, institutions with Jewish ownership were targeted, as well as Jewish customers. At the same time, German banks began opening their offices in the newly available territories. The plans for a complete takeover of the Polish financial system by the Germans was never finished before the war ended.
On 15 December Hans Frank
Hans Frank
Hans Michael Frank was a German lawyer who worked for the Nazi party during the 1920s and 1930s and later became a high-ranking official in Nazi Germany...
, the governor of the General Government
General Government
The General Government was an area of Second Republic of Poland under Nazi German rule during World War II; designated as a separate region of the Third Reich between 1939–1945...
, passed a decree creating the Bank Emisyjny, which begun operating in April. Bank Emisyjny was located in Kraków
Kraków
Kraków also Krakow, or Cracow , is the second largest and one of the oldest cities in Poland. Situated on the Vistula River in the Lesser Poland region, the city dates back to the 7th century. Kraków has traditionally been one of the leading centres of Polish academic, cultural, and artistic life...
.
It was the only institution in occupied Poland with the name Poland in its title.
It was headed by Polish economist, Feliks Młynarski. His German supervisor, and representative of the Reichsbank, was Fritz Paersch.
Operations
Bank Emisyjny de facto replaced the independent central bankCentral bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Poland, the Bank of Poland
Bank of Poland
Bank Polski is the name of two former banks in Poland, each of which acted as a central bank. The first was founded by Franciszek Ksawery Drucki-Lubecki in 1828 in Congress Poland and functioned until 1885, when it was absorbed by the State Bank of the Russian Empire.The second was founded in 1924...
, which managed to evacuate most of its assets, including gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, and part of the mint
Mint (coin)
A mint is an industrial facility which manufactures coins for currency.The history of mints correlates closely with the history of coins. One difference is that the history of the mint is usually closely tied to the political situation of an era...
, before the invasion. Officially, however, the Bank of Poland still existed, as Germans unsuccessfully tried to use it on the international scene to regain the assets evacuated and under the control of the Polish government in exile
Polish government in Exile
The Polish government-in-exile, formally known as the Government of the Republic of Poland in Exile , was the government in exile of Poland formed in the aftermath of the Invasion of Poland of September 1939, and the subsequent occupation of Poland by Nazi Germany and the Soviet Union, which...
.
The bank's main functions were: issuing currency, discounting promissory note
Promissory note
A promissory note is a negotiable instrument, wherein one party makes an unconditional promise in writing to pay a determinate sum of money to the other , either at a fixed or determinable future time or on demand of the payee, under specific terms.Referred to as a note payable in accounting, or...
s and cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
s, issuing short term loans, and taking deposits.
The official exchange rate was set as 2 złoty = 1 reichsmark. This system, favoring the German currency, was one of the ways of boosting the Nazi economy by pillaging that of a conquered country. A black market exchange rate would vary from 3 to 4 złoties for a reichsmark.
From 1940 until 1945 it financed the Nazi economy with little regard for the Polish economy. The Bank, as well as other financial institutions in occupied Poland, were tasked with gathering as much capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....
as possible, to be invested in the German economy. Approximately 11 billions złoties (5.5 billions reichsmarks) were transferred to the German army. It printed new currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
(unofficially named after the Bank headquarters "złoty krakowski" - Złoty of Kraków - or after director Młynarski "the młynarki") with no backing which resulted in increasing inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
(market prices rose by three to six times and the exchange rate for an American dollar doubled over the war period).
In January 1945, remaining assets and German personnel of the Bank were evacuated into Germany proper. It was officially liquidated by the Polish communist government in 1950.
Resistance connections
Młynarski was in fact connected to the Polish Underground State which allowed widespread falsification of the new currency by the Polish underground. His very nomination to the post of the director was made in consultation with and approved by the Polish government in exile. The mint's printing presses were also used for falsification of other documents.Further reading
- Feliks Młynarski, Wspomnienia (“Memoirs”). Warsaw, 1971
- Franciszek Skalniak, Bank emisyjny w Polsce 1939-1945, Państwowe Wydawnictwo Ekonomiczne, Warsaw, 1966