Trujillo's Economic Crisis
When Trujillo assumed power, the economic situation was appalling in all its aspects. On the one hand, customs, banking and major companies were controlled by US investors. On the other hand, the State had no monetary reserves, plus the economic effects of the San Zenón cyclone and the world economic depression of 1929. The situation prompted the government to enact an emergency law in 1933, Through which it tried to negotiate in 1934 the readjustment of the external debt. With both measures, the economic policy of the government began to be delineated, explained as "a particularized capitalist system" that descended to the level of personal property, because Trujillo became the great territorial proprietor at the same time that made of the
dictatorship the instrument to take to Economic enterprise within a legal framework. In this respect it has been pointed out that the government was only the legal servant of the company; The army, the company's police; And the national territory the scope of it, and the people was the worker, the producer and the forced consumer of that company.
As agriculture was the basis of the Dominican economy, the government drew up an agricultural promotion plan that included the creation of a research service in the branch, and a system of agrarian colonization based on native colonists and immigrants, who came mostly from Europe. The process of agricultural improvements led to the regime being thrown into violent expropriation of the lands and assets of its adversaries.
On the financial level, Trujillo's policy was manifested since the 1930s by a desire for autonomy from the United States. That desire begins to be perceived in 1932 when the dollar is replaced by the circulation of the Dominican peso assimilated with this one. The first national bank created by the government was the Reserve Bank, established through the purchase of the branches of the National City Bank. The Reserve Bank began its operations with one million pesos with a commercial character and depository of the official funds. In 1947 the Banco Agrícola e Hipotecario was created with a wide variety of functions, such as "making short-term loans for the promotion of agriculture, livestock and industries, and especially for people of modest capacity Economic ".
dictatorship the instrument to take to Economic enterprise within a legal framework. In this respect it has been pointed out that the government was only the legal servant of the company; The army, the company's police; And the national territory the scope of it, and the people was the worker, the producer and the forced consumer of that company.
As agriculture was the basis of the Dominican economy, the government drew up an agricultural promotion plan that included the creation of a research service in the branch, and a system of agrarian colonization based on native colonists and immigrants, who came mostly from Europe. The process of agricultural improvements led to the regime being thrown into violent expropriation of the lands and assets of its adversaries.
On the financial level, Trujillo's policy was manifested since the 1930s by a desire for autonomy from the United States. That desire begins to be perceived in 1932 when the dollar is replaced by the circulation of the Dominican peso assimilated with this one. The first national bank created by the government was the Reserve Bank, established through the purchase of the branches of the National City Bank. The Reserve Bank began its operations with one million pesos with a commercial character and depository of the official funds. In 1947 the Banco Agrícola e Hipotecario was created with a wide variety of functions, such as "making short-term loans for the promotion of agriculture, livestock and industries, and especially for people of modest capacity Economic ".