The Path to Central Bank in Poland: The Duchy of Warsaw

This thesis investigates the foundations of central banking in the Duchy of Warsaw, a client state of the French Empire, within the broader context of economic and political history. While much has been written about the Duchy of Warsaw, its economic aspects, particularly the development of central banking, require further exploration. Due to the scarcity of archival documents, many of which were destroyed during World War II, this research builds a comprehensive background to explain the motivations and feasibility of establishing a central bank in the Duchy. The study delves into the economic conditions of the Duchy from both domestic and international perspectives, analysing the economic status of its citizens and the significant influence of French policies. The French influence, crucial for the idea of a central bank, extended beyond the independence of Poland from the partitions of 1795 to include extensive social, legal, and administrative reforms. However, the Duchy’s status as a French client state also meant participation in the Continental Blockade and involvement in the wars of 1809 and 1812, ultimately leading to its transition into the Congress Kingdom under Russian control in 1815. This thesis utilizes various sources, from economic analyses to historical legislation, to understand the unstable economic situation of the Duchy and its impact on regular citizens. It traces the continuity of legal concepts from the Duchy to the Congress Kingdom, highlighting the significant legislative acts introduced by Napoleon, such as the Code de Commerce and the Code Civil. By exploring the central banking proposals from the era of the Polish-Lithuanian Commonwealth and the Duchy of Warsaw, and contrasting them with the Bank of Poland established in 1828, this research highlights the unique characteristics of these early central banking initiatives. The findings underscore the ambitious but flawed attempts to implement central banking in Poland, driven by mercantilist goals of economic development and financial stability. Overall, this research not only sheds light on the economic history of the Duchy of Warsaw but also provides a foundation for further studies on central banking and banking relations in Europe.