Czechoslovakia: A Survey of Economic and Social Conditions

By Josef Gruber; A. S. V. Klíma BroŽ et al. | Go to book overview

GOVERNMENT FINANCE
DR. KAREL ENGLIŠ, PROFESSOR AT MASARYK'S UNIVERSITY IN BRNO, MEMBER OF PARLIAMENT AND FORMER MINISTER OF FINANCE

Immediately after the establishment of the Czechoslovak Republic the Czechoslovak State finances were naturally in a difficult position. The newly established State was confronted by great tasks such as the creation of an army and an administration, the reconstruction of railroads, and the building of new schools; it had to deal with social problems such as the care of the invalids, unemployment, food subsidies, and all this had to be accomplished in a country exhausted by the war. It was only natural that the performance of these great tasks seriously affected the finances of the State. The resulting crisis was complicated by the collapse of the financial administration throughout the State, and especially in Slovakia, and became all the more acute because ever since its establishment the State had refused to cover the deficits in its finances by the comfortable method of issuing new notes as was unfortunately the case in the neighboring States. Czechoslovakia, on the contrary, decided to cover its deficits by regular credits only. But the obtaining of credits at home was a matter of considerable difficulty

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