The Big Financial Theft, or the Czechoslovak Currency Reform in 1953 and Its Reflection in the Criminal Legal Sanction of the Participants in the Pilsen Protest Actions

Abstract

The currency reform of June 1, 1953, became one of the dark points in the history of the Czechoslovak state. Almost overnight, people’s savings turned into a worthless pile of crowns. The regime of the time kept it a secret until the last moment. More than a hundred protests broke out across the country, the largest of which took place in Pilsen. The currency reform, which was being prepared by a team of economists led by Václav Hůla with the help of Soviet advisors, was presented to the population as a blow against the “speculative elements” and a victory for the working people. However, when people first felt its real effects on June 1, spontaneous protests and strikes broke out in many places. The events in Pilsen were the most turbulent. In addition to the West Bohemian metropolis, larger unrest took place in Strakonice, Bohumín, Ostrava and Prague. Many participants in the protests ended up in prison, labor camps, or were sentenced to other forms of punishment. One of the harshest was forced eviction. The State Security, the militia and the army expected some resistance, but they did not expect it to happen in key factories, such as the Škoda Plzeň or ČKD factory in Prague. The biggest impact on society was that the motivation to work, the desire to save and the ability to take care of oneself for a long time was undermined. People’s loss of economic self-sufficiency due to actions of the state and the Communist Party, their subjugation to the state and forced dependence on state revenues and state salaries was proof of the state’s bankruptcy.