THE BANKS' ROLE IN THE TRANSITION TO THE SIX-YEAR PLAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600260905-8
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 4, 2011
• Sequence Number: 905
• Publication Date: November 22, 1949
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000600260905-8
CLASSIFICATION RFS'TRICPED a1A~ED
INFORMATION FROM
COUNTRY
SUBJECT
PUBLISHED
WHERE
PUBLISHED
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
Economic - Banking
Biweekly periodical
Warsaw
15 Sep 191+9
DATE OF
INFORMATION l9h9
LANGUAGE Polish
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ANNNOtO T. TAN,i ......TI
tl?,YN'.. f1 ANO DIT AD TI N 6fSIOY Ot[TNi AS
01 ITS CONTi NTY !X ANY NANN[R YO AN UNAOTNORII[O ION,ON IS INO'
NE SIT[0 fY LAN. R[ISOAL'C)ION 01 iYli ICRY IS NRONIfITID._ -
'Se GosTZOdarcze (Economic Life), No 17, 191+9?
Chvogaa whict have already taken place in Polish anonomic organization
and which will be witnessed in the course of the Six-Year Plan have influenced
th3 reform of the banking system. Characteristic features of both the Three-
Year and Six-Year Plane delineate the type of operation required on the pert of
financial institution. In planned management, the key problem is one of mobiliz-
ing financial resources. This problem grows to even grater stature in the aix-
Year Plan.
In contrast with the Three-Year Plan of Reconstruction, the Six-Year Plan
is a plan for transforming the economy. This concept sets the course of
development in banking. The revolutionary character of the reform and the new
concept of the banks' role require such sweeping changes 1,1 the banking apparatus
that its similarity to capitalist institutions will exist in name only.
The banking reform and the creation of the investment Bank clearly indicate
a tendency to a unified system of financing investments. The duty of the Invest-
ment Bank will be to assemble and administer monetary resources for financing
investments -- both investments handled directly and those financed indirectly
through cooperating banks -- and to supervise the investment of such funds. The
Investment Bank will extend working capital to construction and factory installa-
tion enterprises and wi11 perform fiscal supervision corresponding thereto.
During the transit, or. from the Throe-Year to the Six-Year Plan, two
things nest he emphasized: (1) the need to put basic changes intr, effect
immediately and (2) the position of leadership to be held by the Polish Rational
Bank and the Investment Sank. Regarding the first point, the Bank of National
Economy (Bank Goepodaretwa Srajowego) is already on its course. The essence of
the reform, hc.+ever, lies not in the formal reorganization but in the new role
aseiA;ned to money, which has ceased to be a commodity.
The roles of the Polish National Bark and of the Investment Bank may be
stated as follows: the Polish National. Bank is a financial institution created
to regiln'-?e the circulation of money in its function as a source of working capital;
the introetment Beek 1- a tfnencial institution created to regulate the accumula-
tion and distribution of monetary media for investment purposes.
RESTRICTE9
1 -
CLASSIFICATION RESPRIGTED
STATE n~~^r Msae DISTRIBUTION
ARMY LAIR FBI I I I '
Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000600260905-8
 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000600260905-8
have been charged with certain functions. To the extent that these functions
are performed, the banks will have met their goal.
state of affairs has a strong influence on the activity of the Polish National
Bank, both with regcrd to the accu*mm,ation and the distribution of money. Since
the bulk of transactions of socialized industry are settled by check payments and
the insignificant amount of cash payments Is under control, fiscal management of
the Bank is facilitated. however, in the private sector, monetary control is by
indirect means, that is, via one of the cooperating banks appropriate to the
given group in the private sector (Agricultural Bank or Bark for Commerce and
Crafts) and via socialized outlets for the sale of commodities.
explanation. The cooperating bank acts on the initiative of the central bank.
:xerci+..of fiscal control by means of commodity outlets may be understood
as follows: the private sector is already quite intimately involved with economic
units engaged in the flow of commodities. With reference to the socialized out-
lets, transactions will, as a rule, be covered by checks in the settlement of
accounts. In this respect, although incompletely, the&Polish National Bank
through the exercise of fiscal control will be able to perform its functions of
accumulation and distribution. It will, of course, not completely drain the
money market, but the private sector's disposal over cash will he somewhat
hampered.
It was mentioned abov' that economic outlets retain control over till nney.
Cash from funds on hand, for the most part, finds its way to the public which is,
in principle, free to exercise its choice. However, part of this money will be
accumulated (via insurance, payments for services, etc.) and part will be used
for consumption. In consumption, again, the Polish National Bank will exercise
some cc.utrol through socialized retail outlets, but it most still be borim in mind
that a substantial portion will remain at the disposal of the public and outside
the domain of accumulation by the state. This fact will have some bearing on
the fiscal policy of the Polish National Bank. Such money can bring about delibe-
rate, harmful activity among reactionary elements and diethrbances in the commodity
markets, such as the runs on stores which have been observed in several wojewodztwoe
in the recent past.
Under these conditions, the Polish National Bank mu3t guard against temporary
difficulties that may arise during the period of transition to the Six-Year Plan
in connection with certain complications in the circulation of cash available
for immediate consumption.
Concerning the activity of the Investment Bank, an importz