Chapter 3: Peace and Calm, or is it so? (March - July 1936)
Industrial Investment
Additional infrastructural programs, meant to further the industrialization of Finland
Following the success of the infrastructural programs in the southern urban areas at the start of the year, Svinhuvfud and his cabinet decided to double down in the industrial development of the nation. After their completion at the start of March, a further industrialization program was created and approved by the government, this one specializing in the urban development of Uusimaa and Turku provinces. The capital, Helsinki, located in Uusimaa, was at the forefront of this initiative, with further heavy industry and urban expansion continuing to grow the city's size and population. The major port city of Turku was also invested in. What was not publicly stated however, was that the choices of these areas for further industrial expansion were not just for economic or political reasons, given their vital importance for trade and economic growth, but also for strategic reasons. Karelia, the eastern-most province bordering the Soviet Union, and which was only 20 miles away from Leningrad, had long been the industrial heartland of Finland. Its major city, Viipuri, and its industry, were well in reach of the Soviets, should they ever decide to retake it by force. Thus, by building up industry elsewhere, Finland did not have to be as dependent on this one region as it could otherwise, and the blow of losing it potentially would hurt far less, although still sting the national pride of the Finns.
By the spring, the research and development programs funded by the government into mechanical engineering and industrial development had been completed, and so further programs were begun to build off that research. Effort was placed into developing mechanical computing systems, which the government believed had the potential to increase other Research & Development programs in general. This program was expected to be completed by the end of the year and many hoped that its effects would bring plenty of advancement into the electronic sector in Finland, not to mention help boost the famed Nokia, which itself specialized in electronics.
Alongside the investment in mechanical research, Finnish scientists were hired to further develop industrial systems that would help with the industrial expansion of the nation. Research programs were started into the notion of dispersed industry, following the industrial programs at the start of the year that started to build up urban regions outside of Karelia. If war were to break out some day, better the factories of Finland be located spread around the country than just in one place, and be at the mercy of invading armies. This research program too focused on increasing production efficiency and output, concepts that were to grow the Finnish civilian and military industry exponentially eventually.
The Bank of Aland and its use in further industrializing Finland
In May, following the completion of the infrastructure programs in Helsinki and Turku, Svinhufvud and his government struck an agreement with the Bank of Aland, Finland's largest bank, that would enable a huge industrial investment program for the next two years. It was perceived that this additional backing would put the industrial expansion to another level, so further civilian industry projects were announced in Karelia, Helsinki and Turku provinces. Further strengthening of Finland's industrial basin could only be a positive.
The Beginning of the End for Svinhufvud?
Despite the success on the economic front in the early months of 1936 and efforts for urban development, Svinhufvud's own political standing was falling apart. Having come to power in 1931 off the support of many of the veteran Civil War Whites, the coalition that elected him had since changed ideologically, and by mid-1936, there was more opposition to this Founding Father than there ever was. There were even calls in the Parliament to impeach Svinhufvud, albeit unsuccessful.
The bulk of this dwindling support in Svinhufvud was being driven by the Social Democrats, who had formerly been his political allies in the days of Independence and the Finnish Civil War. These "liberal Whites" had been able to unite more socialist minded, anti-Red urban dwellers with the more conservative, agrarian rural farmers in Northern Finland, and this coalition, led by party leader Vaino Tanner, was only growing in strength. Despite Svinhufvud's allies demonizing them in the press as being Communist sympathizers, their values were much more aligned with Republican ideologies in Western Europe. Knowing that the next Presidential election was in less than a year, they began their plan on how to utilize their newfound political strength to topple the politically faltering Svinhufvud, and so they went reaching out for a candidate that could do just that. Their answer? Kyosti Kallio.
Kyosti Kallio, Social Democrat Candidate for President
Kyosti Kallio, like Svinhufvud, was a fellow Father of Independence. A farmer by trade, he had entered the political scene during the Russification campaign in the early 1900s, becoming a member of the Agrarian League. After the revolutions in Russia in 1917 and the subsequent Finnish rush to declare its independence, Kallio was one of the main figures in sealing it. He wrote the resolution to the Declaration of Independence, which passed, and became Agrarian Minister. When Civil War broke out soon after, Kallio found himself trapped in Helsinki, controlled by the Reds, as a White leader. Despite his support of the Whites, he lay low in those days until the Germans helped the White army take control of the city, and helped form a new government after the White victory. However, it was his role post-Civil War that made him immesnely popular. After the White victory and calls for retribution, Kallio offered a much more conciliatory tone, saying
"We have to create a Finland where there are no Reds or Whites, but only Finns that love their country, citizens of the Republic of Finland". This conciliatory tone would prove a great asset for him in his future ambitions.
Following the conclusion of the civil war and the White victory, the monarchism vs republicanism conundrum that split the White coalition led to him resigning from his Senate seat, though following the pro-Monarchist failure, Kallio returned to the political scene, becoming Prime Minister. As Prime Minister, Kallio became known for his reformist work, finding great popularity amongst rural farmers and social democrats due to his education programs and land reforms. Despite being socially conservative, his ability to reach out across the aisle and align different political groups made him immensely popular with a large swath of the population. His most important achievement in office was the "Lex Kallio" law, a major land reform proposal that encouraged people to buy themselves small farms. Despite being himself an anti-Communist, he was also against the far right, rejecting calls from the
Lapuas to join their movement.
Kallio's political career as a reformer, and his ability to acquiesce to different factions, made him the top candidate for the Social Democrat coalition, and he was officially announced as their candidate by party head Vaino Tanner.
The Shots Heard Round the World
While in Finland, industrial expansion, factionalism and an election in the all not-too-distant future were all the talk, the political climate in Europe was starting to simmer. While in Finland, liberal democracy had become stronger than ever before, in other parts of the continent, this was absolutely not the case. As the Finns knew well, in the Soviet Union, communism ruled the day. In Germany and Italy, the Fascists held all the power. Fascism and Communism, two politically opposite extremes, were vying for power and influence across Europe. In France, right and left wing riots constantly plagued the country and decimated internal stability. In Yugoslavia, nationalist elements and communists subverted the state consistently, each having backing from one of the major players
However, it was in Spain, which had long been a scene of political instability and polarization, where internal conflicts would boil over and come to a head..
