- Bank of Poland
"Bank Polski" (the Bank of Poland) is the name of two former
banks inPoland , each of which acted as acentral bank . The first was founded byFranciszek Ksawery Drucki-Lubecki in 1828 inCongress Poland and functioned until 1885, when it was absorbed by theState Bank of the Russian Empire .The second was founded in 1924 in the
Second Polish Republic byWładysław Grabski and was liquidated in 1952.Their legacy is continued by Poland's present
central bank , thePolish National Bank , founded in 1945.History
The first Bank of Poland was founded in
Warsaw in 1828 by PrinceFranciszek Ksawery Drucki-Lubecki . An institution of the government of the Kingdom of Poland, it was entitled with issuance of the Polish currency as well as control over the credit rates. It was also entitled with a concession to operate foreign currencies and buy off credits issued by foreign companies and banks. Throughout its existence, the Bank of Poland was allowed to issue banknotes and coins up to the amount of itsstock (initially 30,000,000 złotych, 42 millions in 1834 and 53 millions in 1841). As a legal entity, the bank also financed a number of important enterprises in Russian-held Poland. Between 1829 and 1837 it spent a large part of its income on road construction, until 1842 it was also the main sponsor of the coal mining development in the region ofZagłębie and theOld Polish Industrial Area aroundSkarżysko-Kamienna . Seriously crippled by administrative measures after theNovember Uprising , after theJanuary Uprising it was made subordinate directly to the Russian Imperial Ministry of Treasury. During the period of liquidation of Polish institutions following the failed uprising, in 1870 it was deprived of the rights of a currency issuing organ and banned from giving long-term credits. OnJanuary 1 ,1886 it was officially closed down and by 1894 its assets were swallowed by the State Bank of Russia.When Poland regained its independence in 1918, it was lacking a central bank. Following the State Treasury Repair Act of
January 11 ,1924 , ministerWładysław Grabski created a new "Bank of Poland" as ajoint stock company . Its stock was soon raised from the initial 100,000,000 złotych to 150 million, split onto 1.5 millionshare s. The bank was independent of the government of Poland, though it carried out its monetary policies. As the mainshareholder , thePresident of Poland had the right to name the chairman and deputy chairman of the bank's board of trustees.Until
December 31 ,1944 the bank had amonopoly for printing currency, with the gold reserves of 40% or higher. Thedividend could not exceed 8% of income. In case of higher income the state treasury had the right to 50% to 66% of it. Prior to the Polish Defensive War of 1939, all of the gold reserves were evacuated from Poland to Paris and then to London and Canada. The Bank continued its functioning in exile, as the central bank of thePolish Government in Exile and financed most of its armed forces. In 1946 the remaining pre-war gold reserves were returned to the new communist authorities of Poland, while the Bank of Poland itself was closed down and finally swallowed by the newly-createdNational Bank of Poland in 1952.
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