September 27, 1931 Sweden abandoned gold standard on economic matters, the Swedish government agreed to suspend gold standard strong>. As a result, local krone fell by 25%, discounts rose to 8%, stock market remains cloudy, and news shows optimism from exporters and announcement of import restrictions.
Since beginning of 1932 Kantian gap in documents has changed, and January mission reported to Scandinavian Conference on situation in field of trade and finance. In May, he pointed to a serious agricultural crisis complicating difficult economic situation, with government worried about economic problems and a budget deficit next year.
The Swedish government believes that plan, partly funded by public debt relief and higher alcohol taxes, should encourage modest increases in wholesale prices while taking strict measures aimed at reducing fiscal deficit It's unbalanced because British protectionist tariffs create problems.
In January 1932 mission issued a report analyzing political and parliamentary situation, in which parliamentary debate was characterized by opinion of Spanish Foreign Minister that, although Swedbank was abandoning gold standard, it was indecisive and criticized economic programs of government, but social democrats put forward many proposals on social issues.
Suggestions to ban volunteer militias such as Lieutenant General Monk have also been mentioned. In parliamentary debate that followed, Social Democrats expressed their disagreement with Sweden's approach to disarmament. Thus, diplomatic missions of Spanish Republic for first time touched on issue of defense, which will become another important issue for next decade.
Since beginning of last century, social conflicts have been intensifying in Sweden, same social unrest as in Spain, where churches and monasteries were burned. A notable event is sulphate and sulfite plant in Adalen, which in northern part of Sweden has become an important milestone in political and social development of Sweden.
On same day, about 4,000 workers held a large demonstration, mostly from workers in paper industry. They were on strike for eight months. Clashes erupted between Riskiros and authorities called in army to carry out ordered crackdown, resulting in deaths of five workers when they were fired on by law enforcement officials.
The incidents sparked widespread protests, a wave of solidarity strikes swept country, and conservative media outlets did not hesitate to blame workers' organizations for characterizing incident as a real massacre.
In spring of 1931 Sweden was ruled by a liberal government led by Carl Gustaf Ekman), they divided country into two factions and forced Gobmenno to immediate action, such as removal of prefect of area and appointment of a commission of inquiry, last time Swedish troops were used to maintain public order in country.
May 14, 1931, became symbol of Sweden. Since then, labor movement and Social Democratic Party have become real conductors of fate of country.
Spanish missions informed government of Madrid of Adalena incident on May 16 and June 6, and social unrest that resulted in five casualties can be considered Spanish diplomacy. it's like a trivial matter, especially compared to Spanish practice of time.
However, we do not think so, as number of letters on this issue, according to State Department, is significant. This seems to indicate that Spanish diplomats in Stockholm were aware of importance of Adalen affair to Sweden.
From then on, and for many months to come, social issues would constantly recur in reports of Garcia Conde, and on anniversary of Adalon incident, he explained, Proletariat organization appealed to government asking for appointment of a mediation committee between employers and workers to resolve strike of paper workers.
They were last mentioned in Spanish diplomatic corps in September 1932, when announcing new Swedish government, García Kant said that Social Democrat Arthur Enberg had recently been accused of slandering government officials and sentenced to imprisonment and fines. .
Adalen and social conflicts that followed played a decisive role in victory of Social Democrats in September 1932 elections as part of a comprehensive program of reforms and social legislation.
In spring of 1932 another major event took place in Sweden, with greatest impact since Wall Street crash of 1929. In early 1930s, infamous Kruger Affair sparked months of national debate.
In 1908, a young entrepreneur Ivar Krüger (varKreuger) founded a real estate company with engineer Paul Thor, and shortly thereafter Kalmar Trust . became leader in Sweden.
The Kalmar Trust was also created, which will give these companies, through their US and international subsidiaries, a global monopoly, Ivar Krueger strong>Soon established a good reputation in financial market across Atlantic. This allowed him to get loans on favorable terms and buy large amounts of government bonds in exchange for business privileges.
Many large Swedish companies became part of his business empire, among which Ericsson, Boliden, Film SF, Kruger also became SKF (SKF) and major shareholders of such companies, like Scandinavian Credit (SCA), and all of them will collapse due to financial crisis 1929 and impotence of Swedish bank.
Kruger was found dead in his home in Paris in spring of 1932, and economic crisis forced Swedish banks (except Stockholm Bank in Wallenberg) to demand that Kruger Consortium be fully transparent in as a precondition for new loans.
Swedish Prime Minister Carl Gustav Eckermann, who was later forced to resign, a Spanish suicide note will be enclosed as evidence that he accepted Kruger's donation without any reason, while Kruger dominated his ministers.
The Kruger incident was different, most exciting diplomatic mission went to Spanish legation in Stockholm, it was not just a consequence of transcendence, it led to collapse of Swedish domestic politics, especially termination of powers of Prime Minister. , they supported victory of Social Democrats in 1932 elections and fact that Spanish State also participated.
March 13, 1932 Krueger was notified by Spanish minister by telegram that he had committed suicide. Returning to US, he began seeking rejected loans and committed suicide in Paris. Known as King of Phosphorus, these figures and influence cause a stir in cabinet, which is headed by Prince Regent.
They allow Kruger Consortium to suspend operations and Parliament to hold a special session to consider government proposals and other measures to prevent possible panic, especially concerns about main operations center of a Scandinavian Bank client. The stock market may be closed for several days before Great Stock Market Depression.
The text of count's telegram clearly conveyed enormous impact of this event on political life of Sweden, which caused an extraordinary evening meeting of Swedish government and parliament. Successive cables expanded message, mentioning Krueger's plight and possible Spanish involvement in financial irregularities uncovered by Swedish consortium.
The impact of Kruger affair on Swedish politics did not go unnoticed by Spanish delegation, in April Garcia Conde mentioned a surprising detail, some of statements made by leader of Swedish Social Democratic Party Albin Hansen has suggested that tycoon Kruger is suspected of being involved with Swedish Socialist Party "Kilbohm Socialist" (communists who broke away from Moscow) were involved.
In August Spanish minister mentioned Kruger case as main reason for resignation of Swedish Prime Minister. Mr. Ekman, Prime Minister, said that no one doubted his personal loyalty, but he was condemned , when a few days ago, when Kruger's liquidation commission returned 150,000 crowns after bankruptcy, he claimed that he had betrayed Kruger.
Now being forced to admit that real amount received was 200,000 crowns, he found himself in a state of extreme disappointment, lack of sincerity or former value, and finally Ekman decides to retire, and on he did not attend subsequent meeting of Council of Ministers, because he resigned, and minister of finance was appointed by president.
Kruger's will reports incarceration of Thorsten Kruger, Laval's brother, as director of a company accused of committing irregularities, including during Kreuger & Toll consortium, and declaring Corruption bankrupt.
The following March, he reiterated that Icke's resignation was due to disgrace he suffered because of his questionable relationship with Krueger, and began to seek financial support for his party, Kruger's case in 1934< It was not completely buried until February, when Foreign Office broke unconfirmed news: Krueger had made deals with match companies in Spain.
In summer of that year, Foreign Office discovered that Kruger's German loans were a very delicate aspect of economic and trade negotiations with Germany that Sweden was in at time.
As we have seen, Kruger case led to fall of cabinet of liberal Carl Gustav Eckermann, who admitted his involvement in Kruger case and submitted his resignation to Gustav King V, and elections were called.
The September 1932 elections marked a turning point in Swedish history when Social Democratic Party began its hegemony at forefront of fate of nation and for rest of 20th century are almost absolute authority.
The leader of new government is Albin Hansen, who in modern Sweden is called "Father of Fatherland", after whom people named an entire era:The Age of Albin Hansen (1932 -1946).
In 1928, in a famous speech on proposals of Swedish Social Democratic Party, Hansen in 1921 said: "Designing a policy aimed at achieving consensus". A special model of "people's house" must be created Swedish socialism, away from class struggle, and advocates disappearance of class struggle.
In role of Albin Hansen, pragmatic force of his folklore thinking paved way back in 1932. That was year he seized power, and Swedish Social Democratic Party will henceforth base its policies on ideas of planned economy and so-called “functional socialism” of 1960s.
The state will pass a law regulating national economy, but will leave property to entrepreneurs and "wealth-creating professionals". Obviously, restriction of individual freedom in interests of majority requires a very strong state.
This is Per Albin's concept of democracy, which has characterized Swedish democracy ever since, freedom not "in relation to state" but "through state". In Sweden, there is even talk of "albinism", defined as "liberalism through a conservative approach".
They sanctioned junior diplomats, including Secretary of Mission José González de Gregorio, who changed his fortunes when García Conde became chargé d'affaires in his absence, preserving results of 1932 general election in Madrid.
In this regard, Luis Amado Sanchez, Spanish consul in Gothenburg, sent his report directly to State Department.
This is an amazing document, not only because of nature of events, but also because if there is an embassy or embassy in country of destination, task of consulate is not to send a political message directly to their government. , but mainly because of content and tone, their unprofessionalism and understanding of Swedish realities and mentality.
Among them, Norwegian Parliament (Storting) falsely claimed that "Doctrine Party" had an absolute majority, and called Conservative Party "The German Party" strong>, calling Independence Party a "religious party".
But to a greater extent, information is disinformation, motives of which are unclear, and they must be considered in context of consular revenge at odds with embassy.
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