What to Do with Family Accounts? Two Sides of Raising the Living Standards in Czechoslovakia in the 1950s
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What to Do with Family Accounts? Two Sides of Raising the Living Standards in Czechoslovakia in the 1950s1 drahomír Jančík KEYWORDS: Czechoslovakia (1953–1959)— Individual consumption— Standard of living— Price policy— Money reform 1953 There is aplethora of sources on the history of consumerism in Czechoslovakia, even for such ashort period as the 1950s. However, the vast majority of them are of official provenance, in the same sense that statistical publications provide only aggregate data. They do not, however, take into account the struggle of the individual, the family, and not infrequently the entire social group, with the ordinary, but essentially existential, concerns of everyday life, which are determined by the seemingly simple accounting equation of give and take. The history of consumerism in this period is the history of consumer asceticism imposed in the name of the “great idea”, the “construction of asocialist society”. Aggregate data does not capture this reverse side of consumerism, does not express individual experience, lacks the power of the anxiety of helplessness with asimultaneous flash of sarcastic defiance encoded in the family account book of ahousewife, amother of three small children expecting afourth, in anote questioning her own conscience: “How can Ibelieve that the standard of living of aworking man is constantly rising when Icannot even buy the bare necessities, and yet Iwork from morning till night, am Ialso aworking man or only a‘lazy womanʼ, or is the standard of living so high that Icannot reach it?!”2 The “accounting diary” kept by this woman provides adetailed insight into the economic behaviour of the family as amicroeconomic unit within the conditions shaped by state economic policy (consumption and production of goods, running abusiness). 1 This study was carried out at Charles University as part of the PROGRES Q09: Historie— Klíč kpochopení globalizovaného světa (PROGRES Q09: History— The Key to Understanding aGlobalised World). It is ashortened version of the text Drahomír Jančík, Co srodinnými účty? Rub alíc zvyšování životní úrovně vČeskoslovensku v50.letech 20.století, Hospodářské dějiny/Economic History 35, 2020, no.3, pp.381–416. 2 “Accounting diary”, p.27 (the “accounting diary” is kept in the family of Ing. Václav Mahďák, whom the author thanks for his kind provision of it, as well as for numerous clarifying information and for his consent to mention the names of his parents). OPEN ACCESS
drAHOMír JAnčíK 87 THE “ACCOUNTING DIARY” It used to be common, well into the 1960s, for families to keep accounting records in an attempt to identify excess or excessive expenditure and, by cutting it out or reducing it, to create areserve for the purchase of necessities for which there was no money left over from the current salary. At the beginning of 1953, Marie Mahďáková also began to keep records, but by the end of the year her confidence in achieving abalance between family income and expenses was fading. She complained bitterly to her “accounting diary”: “Ihave been using you to manage for ayear now, counting halers and crowns, and yet there is no improvement. There are more children and less money. Isay goodbye to you, 1953, without acrown in my pocket, without abit of grease in the pot, and with only alittle flour in the sack”.3 These and similar emotionally charged entries, unfortunately not very numerous and disappearing at the beginning of 1955 with the laconic statement “the situation has not changed”,4 reinforce the testimony of the column of figures with expenses about the material life of the family, in which the crippling difficulties in providing 3 “Accounting diary”, pp.26–27. 4 “Accounting diary”, p.53. The author of the “accounting diary” Marie Mahďáková with her first-born son (Source: Private papers of the Mahďák family). OPEN ACCESS
88 WISOHIM/ESHP 31 for its elementary needs did not, after all, cover the excessive expenses, for the pleasure of the children, for example, for small trips, tickets to the cinema or circus, for asweet shop, even atoy, or for paints, brushes and other painting supplies for the husband’s painting hobby. There is not much more to be found in them— no winter or summer overnight outings, quite minimal improvements to household furnishings falling short of the contemporary standard, no purchases of fashionable goods, etc. Until the early 1960s, the “accounting diary” tells not only about the family’s consumption, the structure of which was limited by the disposable income of the breadwinner, determined by the state wage policy, and the insufficient and only very slowly increasing supply. The optimisation of consumption in the family was generally in the hands of women, whether in terms of substitutes in nutrition, given the scarcity of certain foods in the retail network or their price, or in terms of extending the life of various items of clothing, or in terms of their home production. After her mother, M.Mahďáková was an active player in the family, contributing to the enrichment and improvement of consumption in the difficult conditions of the time through “household economy”. ACTORS OF CONSUMPTION IN THE MICROECONOMIC ENVIRONMENT OF THE FAMILY The “accounting diary” was written in the family of bank clerk Miroslav Mahďák, an employee of the Prague headquarters of the Státní banka Československá (State Bank of Czechoslovakia), since autumn 1953 of its branch in Čáslav in Central Bohemia. His birthplace was the small village of Podkopná Lhota, where his father, Inocenc Mahďák, ran atailoring business. He grew up in this village together with three other siblings until the family moved to Ostrava. There was agreater demand for tailoring services, including from the local military garrison. Miroslav completed his secondary studies at the local trade academy in 1941 during the Nazi occupation. After graduation, he received afive-month scholarship from the Zahraniční ústav českého obchodního školství (Foreign Institute of Czech Trade Education). It allowed him to work for free at the Rolný clothing company in Prostějov, where he attended acourse focused on foreign trade, probably at the local trade academy. Rolný then employed him in its export department. He worked there until the beginning of November 1942, when he was assigned by the occupying German administration to the foundry of one of the factories in Wrocław as part of the total labour deployment.5 After the end of the war, in the liberated Czechoslovakia, and after completing his military service, M.Mahďák started his professional career in the banking sector. In May 1946, he applied for aposition in the Ostrava branch of the traditional na5 Archiv české národní banky, Praha (Archive of the Czech National Bank, Prague, further as AČNB), fund (further as f.) Státní banka Československá (State Bank of Czechoslovakia, further as SBČS), Personal file of M.Mahďák, Letter of M.Mahďák dated 6May 1946. In Germany, M.Mahďák was stationed at the Metallhüttenwerke Schaefel & Schael Breslau, and in November 1944 he escaped and joined one of the partisan units operating in Wallachia. OPEN ACCESS
drAHOMír JAnčíK 89 tional Czech money institution Živnostenská banka (Trades Bank), and the following month he worked in its newly established “Slavic Department”, as he fully met the required criteria. In addition to German, he was proficient in three Slavic languages, Polish, Serbo-Croatian, and Russian, he was equipped for office work with knowledge of shorthand and typing and had some experience in foreign trade issues. As the “Slavic Department” was also being built in the Prague headquarters of the Živnostenská banka and there was ashortage of suitably qualified staff, the headquarters requested M.Mahďák from the Ostrava branch for its own department. Mahďák joined it at the beginning of November 1946, when he had been married for amonth. He lived with his wife Marie in her mother’s house in Zbraslavice.6 In March 1950, the Živnostenská banka was incorporated into the State Bank of Czechoslovakia, and so M.Mahďák became its employee. Miroslav Mahďák’s wife came from afamily which, after the Communist Party took power in February 1948, was classified as members of the former “exploiting class”. This was because her parents had developed atrade business in interwar Czechoslovakia. Her father, Antonín Vít, as awar invalid from the First World War, received aconcession to operate awholesale and retail tobacco business as part of the care for war victims. Her mother, Marie Vítová, was aladies’ dressmaker, trained in Vienna during the Habsburg monarchy. In 1929, thanks to her efforts, they bought ahouse in Zbraslavice for their business. Although the house was suitable for the business and the trade of aladies’ dressmaker, which prospered and employed several seamstresses, as aformer distillery it offered only modest possibilities for permanent housing— yet they lived there with their two daughters. After Antonín Vít died in 1937, both trades were run by his wife until 1948, when she had to terminate her tailoring business. However, she was left with atobacco shop, reduced to the right of retail sale of tobacco products, squeezed into one room of her ground floor flat.7 She kept the shop despite the administrative pressure exerted on the tradesmen to join municipal or state enterprises or to go out on their own. The communist regime tolerated essentially only aged and disabled tradesmen, “to live out their lives”. Marie Vítová also retained ownership of her house. Shortly after the end of the war, the housing shortage led to the legislative consolidation of the power of the local administration to assign tenants to privately owned houses. The house of Vítová’s house was additionally assigned to afamily of four, later asecond family was added, and other premises were occupied by the local administration. Their use changed, with the barbershop being replaced by apuppet theatre and later by the offices of asocial organisation. The modest income from the tobacco trade mitigated the harshness of the pension assessment regulations for former “capitalists”. M.Vítová was granted aretirement pension of only 160 crowns. She represented atype of “entrepreneur” who was pushed to the periphery of economic life and destined to disappear, but still contributed to maintaining awareness of private enterprise in society. Indeed, given the inflexibility of communal and cooperative service providers, this did not disappear 6 AČNB, f. SBČS, Personal file of M.Mahďák, Letter from Živnostenská banka-branch Ostrava dated 1November 1946. In Prague M.Mahďák lived with his relatives. 7 The operation of asmall tobacco shop was closed in 1985 at the age of ninety-two. OPEN ACCESS
90 WISOHIM/ESHP 31 even after the near 100 % liquidation of the trades and the transition to the shadow economy. Even the widow M.Vítová earned aliving by sewing, but due to the circumstances, only for good friends. It is one of the many paradoxes of the time that she was able to support her daughter Marie’s family financially from her small income. The only thing she had left from her former trade was asewing machine, and she also helped her daughter by sewing and repairing clothes. The originator of the “accounting diary”, Marie Mahďáková, graduated from abusiness school, and even during the German occupation, she was not spared the total deployment. After her marriage in 1946, two sons were born ayear apart. As athird addition to the family was expected, she quit her job at the end of 1949. She became ahousewife, fully occupied with caring for her gradually growing family, with the birth of athird son in 1950 and adaughter three years later. She was brought up in the Catholic faith, which she carried into her family. Despite official and often enforced atheism, she remained apracticing Catholic. Her musical talents enabled her to take up the organ at services when needed. The family thus consisted of six members: abreadwinner, ahousewife, and four children born between 1947 and 1953. The ruling Communist Party stressed that from money reform to the spring of 1955 there had been a“rapid increase in personal consumption” as aresult of rising real wages, although it admitted that the dynamics varied from one social group to another, with the lowest rates precisely in families with one income and alarger number of children.8 While from amacroeconomic point of view the increase in aggregate numbers, even if only one point, represented growth, in the microeconomic environment of the family it was essentially imperceptible in its consumption, as evidenced by aremark in the “accounting diary” at the beginning of the February 1954 accounting period: “My plan for February is not at all demanding and yet its quantification is Kčs 2 045 and my income only 1 710. Let us not be curious, but let’s wait to see how it turns out”.9 The result of the expectations is summed up in the entry for the following month: “The standard of living is rising so rapidly upwards that Icannot reach it; the more Ireach for it, the more Ifall into the depths of misery”. This was followed by anote on the repayment of asmall debt and then aloan of six times that amount.10 M.Mahďáková’s efforts to balance the family budget without debts did not bring the expected result. When she had to borrow 25 crowns from her “home savings” for one of her sons, she complained to her “diary”: “When, oh when will Iget rid of the debt?”11 Without debts, however, the basic needs of the family could not be met throughout the period under review. 8 Národní archiv, Praha (National Archives, Prague, further as NA) f. Předsednictvo Ústředního výboru Komunistické strany Československa 1954–62 (Presidium of the Central Committee of the Communist Party of Czechoslovakia 1954–62, further as PÚV KSČ), vol.87, archival unit (further as a.u.) 105, b. 1-Development of the standard of living of the population in the draft directives for the perspective plan for the development of the national economy of the Czechoslovakia for 1956–1960, p.6. 9 “Accounting diary”, p.30. 10 Ibid., p.32. 11 Ibid., p.40. OPEN ACCESS
drAHOMír JAnčíK 91 THE EFFECTS OF THE MONEY REFORM The abolition of the “dual” market (tied and free), together with the money reform announced at the end of May 1953, had asevere impact on the development of the family budget. These measures were intended, among other things, to solve the growing problems in the supply of the population, primarily with foodstuffs, but also with consumer goods, the production of which was lagging behind growing consumption. The discrepancy between production and consumption was particularly marked in the case of meat, meat products, and fats. The solution was found in the “price index being ahead of the wage index” and in the new, higher valuation of existing stocks, which had increased in value. These administrative measures reduced the purchasing power of the population. Under the Money reform Act, wages and salaries were recalculated at aratio of 5:1.12 The new state retail prices of basic foodstuffs were substantially higher than the 5:1 recalculation of prices on the tied market. While the prices of bread, pastry, and flour on the single market were set below the double, the prices of other staple 12 Sbírka zákonů anařízení republiky Československé (Collection of Laws and Regulations of the Czechoslovak Republic, further as Sb. z. an.) 1953, no.41, p.223. In the kitchen (Source: Private papers of the Mahďák family). OPEN ACCESS
92 WISOHIM/ESHP 31 foods, especially meat and dairy products, were higher.13 The price of 1 kg of butter increased by 175 % compared to the recalculated prices on the tied market, beef by 160 %, margarine by 215 %, and sugar by 346 %.14 The changes in prices significantly affected the purchasing power of the household’s permanent income. The money reform was adisaster for family budgets, especially when they depended on asingle income. Whereas in January 1953 the purchase of foodstuffs accounted for 70.3 % of the salary of the head of the household (68 % if the Kčs200 allowance per housewife is included), by June food expenditure had risen sharply to 84 % and in the last quarter of 1953 it averaged 77 %. These overwhelming figures were softened in June by the “outfitting allowance” for anewly born daughter from the household head’s insurance premium of Kčs 650, but especially by the family allowance. The family had no major savings and entered 1953 with adebt of 3 500 crowns. Permanent deficits in the family budget, generated by daily food purchases and household expenses (e.g., coal purchases), were bridged by loans within the extended family. From the beginning of 1953, the growing distrust of the population towards the crown currency, the alarming premonition of money reform, and the fear of rising retail prices also prompted the family in question to make purchases. However, their financial reserves were modest, only enough to buy bed linen, two pairs of shoes, three pairs of children’s shoes, diapers, and afew yards of fabric. At the same time, she paid off some of her debts. On the date of the announcement of the money reform, she was left with adebt of Kčs 2 000. The wife of the head of the household closed her statement for May in her “accounting diary” with the statement “The old currency has fallen, Ido not pay my debts”.15 The two thousand owed had suddenly turned into 91 dkg of butter, i.e. Kčs 40.16 CONSUMPTION FROM THE MACROECONOMIC PERSPECTIVE OF STATE ECONOMIC POLICY The fall of the old currency represented the first shock wave that the population anticipated and tried to mitigate by realising their cash. But then came the second in the form of price tags on the shop shelves. The price was meant to limit food consumption, as the countryside disturbed by collectivisation process was unable to produce food in sufficient quantities. Asimilar situation applied to consumer goods, the limited supply of which was due to the oversized construction of heavy industry at the 13 Václav Průcha et al., Hospodářské asociální dějiny Československa 1918–1992 (Economic and Social History of Czechoslovakia 1918–1992), vol.2, Brno 2009, p.284; Vladimír Mička— Václav Čáp— Jana Bondyová, Historická statistická ročenka ČSSR (Historical Statistical Yearbook of the Czechoslovak Socialist Republic), Praha 1985, p.154. 14 Calculations based on the Statistická ročenka ČSR 1959 (Statistical Yearbook of the Czechoslovak Republic 1959), Praha 1959, p.383. 15 “Accounting diary”, p.10. 16 V.Průcha et al., Hospodářské asociální dějiny, p.284. OPEN ACCESS
drAHOMír JAnčíK 93 expense of consumer industry. In an effort to counter the rising discontent fed by these prices, party and government leaders therefore committed themselves to annual reductions. The price cuts were presented as the results of the Communist Party’s successful economic policy. As early as the end of September 1953, the first reduction in retail prices took place, the last in March 1959. While prices doubled or tripled after the abolition of the tied market, selected types of food were reduced by between 5 and 25 %. Prices were reduced mainly for flour, pasta, bread, and sugar, and in the case of meat only for the lower-value types (e.g. pork belly), but also for mutton, the consumption of which was not common in the Czech environment, unlike in Slovakia. The low purchasing power of households was not sufficient to absorb the consumer goods that were produced for domestic consumption, including those that could not be exported and were piled up in warehouses as surplus stocks. The purchase of astandard men’s overcoat for Kčs 650 (about half amonth’s salary), women’s dresses for Kčs 333, or men’s shoes for Kčs 200, represented asignificant hit to most households’ budgets. The purchase of durable industrial goods, e.g. amedium radio receiver for Kčs 2 200, let alone afirst television set for Kčs 4 000, was almost unaffordable for most of them. From an economic as well as apolitical point of view, it was therefore necessary to reduce the prices of consumer goods. The price reduction contributed to an increase in sales, by about one-third in 1955 compared to 1952. By April 1955, although the retail price index had fallen to 96.4 points compared with 1952 as aresult of the price cuts, and the volume of purchases of basic foodstuffs and consumer goods by households had increased, these purchases often fell short of the 1952 level.17 Table 1:Sales of selected staple foods and consumer goods (1952=100; in material units) 1953 1954 1955 milk 85.5 88.1 86.5 butter 81.5 106.1 106.2 eggs 77.4 91.5 90.2 wheat flour 88.1 91.0 90.2 sugar 99.1 116.9 122.9 minced meat 108.9 112.7 115.0 cotton cloth 83.2 96.3 98.1 leather footwear 89.3 98.6 92.2 Source: NA, f. PÚV KSČ, vol.87, a.u. 105, b.1-Development of the standard of living of the population in the draft directives for the prospective plan for the development of the national economy of the Czechoslovak Republic for 1956–1960, p.7. Changes in household consumption behaviour, which the planning system did not take into account, were becoming increasingly evident. The register of unmet demand was gradually expanding, and the persistent shortage of meat was joined by 17 NA, f. PÚV KSČ, vol.87, a.u. 105, b. 1, p.7. OPEN ACCESS
94 WISOHIM/ESHP 31 shortages of quality textiles and durable industrial products, washing machines, and refrigerators.18 In the category of workers’ and employees’ households, the number of households with an average net income of more than Kčs 600 per member was slowly increasing; by the end of 1958, one quarter of them were to be so. The average income of another quarter of households was about Kčs 600 per head, but they also spent most of their income on food and clothing. The remaining half of households, however, had an average income of up to Kčs 400 per capita, which was barely enough to cover the basic necessities of life.19 Such astructure of income groups, with three-quarters of households spending more than half of their income on food and clothing, predetermined the stagnation of sales of industrial goods, the growth of which, however, was foreseen in the plan. Table 2:Share of food and non-food goods in total retail sales (in %) 1955 1957 1959 1960 food 59.4 56.0 56.4 55.1 non-food goods 40.6 44.0 43.6 44.9 Source: NA, f. KSČ-ÚV-AN I., b. 133, Analýza rozvoje národního hospodářství ČSSR vobdobí od XI.sjezdu (Analysis of the development of the national economy of the Czechoslovak Socialist Republic in the period since the XI Congress), p.139. The Communist Party leadership preferred to increase personal consumption by lowering retail prices. On the one hand, because it was of ageneral nature, in theory benefiting the entire population without distinction, and on the other hand, because it was atool for targeting their consumer behaviour. However, the reduction of retail prices had its limits due to the relatively high cost of production. Retail prices of, for example, children’s clothing were already depressed by waves of discounting as early as 1958. Agricultural production suffered from similar problems, where disproportionately high production costs prevented price reductions in, for example, eggs, and milk.20 The reduction of retail prices was carefully combined with awage policy, which the Communist Party leadership held back for fear that wage increases would raise production costs.21 These were already high enough given the obsolescence of 18 Ibid. 19 NA, f. Komunistická strana Československa— Ústřední výbor. Kancelář 1.tajemníka ÚV KSČ Antonína Novotného (Communist Party of Czechoslovakia— Central Committee. Office of the First Secretary of the Central Committee of the Communist Party of the Czechoslovak Communist Party, Antonín Novotný, further as KSČ-ÚV-AN I.), box (further as b.) 70, Session of the Central Committee of the Communist Party of the Czechoslovak Communist Party, 13–14November 1958, Questions of the development of the standard of living, problems of reconstruction of the workers’ wage system and the solution of housing construction (thesis report), p.28. 20 Ibid., p.30. 21 Ibid., pp.9–10. OPEN ACCESS
drAHOMír JAnčíK 101 The consumption behaviour of the household surveyed was influenced by its composition, the level of its net income, and, not least, the limited supply and scarcity in the shops. Its consumption was dominated by milk and dairy products, roughly double that of the average household, and dairy and bakery products. Among the dairy products, cottage cheese (tvaroh) had aspecial place, certainly not under the influence of contemporary propaganda, which recommended cottage cheese as the richest source of protein because of the lack of more valuable sources of protein (beef or fish). Regardless of this, cottage cheese was asuitable and extremely affordable substitute in the face of the general shortage of quality meat. Cheese was consumed relatively little by the household in question, given its price, which was in line with that of meat products, and yoghurt rarely appeared on the shelves. Flour-based foods in awide range (from Czech buns to dumplings in the case of ordinary consumption, from cakes to sweets for more festive occasions) constituted an important, affordable component of the diet of the family in question. Their calorific value was increased by fats, primarily butter, and eggs. The high consumption of eggs in the preparation of flour dishes, as well as other meals, led to the establishment of abackyard layer hen farm in 1954–1955, which reduced the retail price of eggs. Consumption of dairy and bakery products, unlike consumption of dairy products, saw partial changes from the mid-1950s, probably linked to amodest increase in family income and only partly influenced by price discounts. They were reflected in the declining consumption of flour, although its retail price was reduced, but even so its consumption was well above that of the average household in almost all years. The composition of the diet undoubtedly rested on the shoulders of the mother, who, in the face of permanent financial constraints, sought to optimise it within the limits of the time, primarily with aview to the healthy development of the children. Her family’s consumption of meat and meat products was below average. In 1958, in afamily of four with an average income, each member of the family had 44.5 kg of meat34, whereas in the family in question, the average consumption was only 29 kg. Meat products accounted for 14.1 % of the total expenditure of the family, while they accounted for only 8.6 % of that of the average working family. The meat supply suffered not only from scarcity but also from poor quality, as the “diary” entry of December 1953 shows: “My nerves and my poor stomach must eat what does not suit it and what it refuses to accept. Iam beginning to forget what the butcher and the things on sale at his shop look like.”35 The deficit in meat consumption was partly made up by the family in question from their own resources by breeding rabbits, by replacing laying hens, and by increased consumption of floury foods and vegetables, especially potatoes. The household’s vegetable consumption was above average, with purchases from the shop supplemented by vegetables grown in the small garden at the house. The 34 The data reflects the average actual meat consumption in working families based on astatistical survey. Statistická ročenka ČSR 1959, pp.380–381 (own calculations). In contrast, the data in Table 7 shows the average per capita meat consumption derived from the weight of whole pieces of meat entering the processing process. It includes waste and losses estimated at up to one third. 35 “Accounting diary”, p.24. OPEN ACCESS
102 WISOHIM/ESHP 31 same was true for potatoes, as the household obtained acertain quantity of these, as well as some other agricultural products, in return for help with fieldwork and other work on the private farm of one of its relatives.36 However, the consumption of fruit, let alone southern fruit, was below average, probably because of the price and, in the case of southern fruit, because it was rarely available in the shops, usually only on holidays such as Christmas. Other types of food, such as pasta, legumes, and rice, had amodest position in the consumption of the family in question. Even the expenditure on purchases of beverages was more than modest. Beer and soft drinks tended to be on the table only on Sundays and holidays. Only on very rare occasions was spirits or abottle of wine purchased. In the expenditure on consumer goods, the first place was occupied by expenditure on clothing and footwear, almost exclusively for children. Most of their clothing, however, was provided by “hand-me-downs” from older siblings, and re-sewing and re-weaving older items of clothing. The family was forced to do this not only by their financial situation, but also by the lack of cotton and woollen goods in the shops. It was rare to buy new fabric for home sewing or yarn for home knitting. The parents reduced their needs considerably, basically only to the essentials (e.g. shirts, stockings, socks). The breadwinner of the family bought only one jacket and two trousers while his wife bought two dresses in the period under review, but the latter were made only from newly discounted artificial silk. Table 8:Expenditure on clothing and footwear (in Kčs) expenditure on 1953a1954 1955 1956 1957 1958 1959 clothing 88.6 231.0 435.2 966.3 814.3 838.1 958.6 footwear 468.6 204.4 510.2 778.9 374.2 492.3 405.6 fabrics 60.0 104.0 32.2 108.0 159.8 301.5 348.2 yarn 125.2 23.2 71.9 193.4 22.6 54.0 89.4 total 742.4 562.6 1 049.5 2 046.6 1 370.9 1 685.9 1 801.8 a June-December Source: “accounting diary”. Expenditures on food and clothing absorbed most of the breadwinner’s income, and thus the necessary funds were lacking to improve housing conditions and increase the amenities of the home. The apartment in which the family in question lived was still very much in the nature of the “pavilion apartments” that were still abundant in the 1950s. The main room was the kitchen, where family life was essentially con36 He was acousin on his mother’s side in Nové Nespeřice, about 20 km from Zbraslavice, who resisted joining the so-called unified agriculture cooperative (jednotné zemědělské družstvo— JZD) and managed to run asmall local shop and apub in the evenings in addition to the farm. The family in question had one room in his building, and the children spent part of their holidays there. At the end of the 1950s, these private farmers could not withstand the pressure of high compulsory agricultural deliveries and joined the local agricultural cooperative. They kept the shop and the pub, but they gradually became unprofitable and closed in the early 1970s. OPEN ACCESS
drAHOMír JAnčíK 103 ducted. The kitchen was not only used for cooking on asolid fuel stove, but also for eating, the children studied in it, and it was the only room heated throughout the winter. From the kitchen one entered through awindowless connecting room to the bedroom, which was heated only in severe frosts. It was filled with cots, later replaced by folding beds. The owner, her two daughters’ families, and another family placed by the housing department of the national committee lived in the house separately, and later another family was added. Asingle toilet was available for all of them in the hall way, which also housed the only water supply with asink in the house. The first hint of modernisation of the household under review was the installation of awater supply to the kitchen in April 1954.37 For along time the only electrical appliance in the household was aradio receiver. In 1955, asecond one was added, avacuum cleaner for 1 100 crowns (58 % of the average monthly net income of the family), which was made possible by a“home family” loan of 800 crowns, and in February of the following year anew stove was purchased, again on credit.38 The biggest modernisation of the household took place in May 1957, when awashing machine was purchased thanks to acash present from the parents of the head of the household.39 Along with it, atin bathtub was purchased to replace the wooden baskets brought down from the attic each week to bathe all the family members in order from youngest to oldest. The water for the bath was heated in pots on the stove in the kitchen. Until the water supply was brought in, water had to be brought in from the hallway and poured out there as well. The last improvement in the furnishings of the flat during the period under review took place in August 1957, when acouch and amattress were purchased, as it was already necessary to provide each child with his or her own bed.40 Table 9: Expenditure on utilities (in Kčs) type of service 1953a1954 1955 1956 1957 1958 1959 crafts and repairs 407 678 820 947 705 924 679 transport (fares) 247 327 380 496 398 682 507 postal services, radio fee 64 116 68 85 72 77 91 financial services (insurance) 25 116 84 84 84 84 84 health 275 — — — — — — entertainment, culture (cinema, theatre, ball, etc.) 12 114 301 148 137 217 242 education (violin lessons) — — — 160 440 500 290 electricity and water supply 143 415 378 366 491 431 494 total 1 173 1 766 2 031 2 286 2 327 2 915 2 387 a June-December Source: “accounting diary”. 37 “Accounting diary”, p.34. 38 Ibid., pp.60, 83. The stove was worth 324 crowns (16.7 % of the average monthly net income of the family). 39 Ibid., p.115. The Romo washing machine cost Kčs 1 860 (97 % of the average monthly net income of the family). 40 Ibid., p.121. The couch cost Kčs 1 090 and the mattress Kčs 285. OPEN ACCESS
104 WISOHIM/ESHP 31 The largest item in expenditure on services was reimbursements for services provided by local private artisans, primarily alocal shoemaker for shoe repairs. Extending the life of shoes, especially children’s shoes, was necessitated by their relatively high price and the narrow choice of suitable types in the shops. During the 1950s, private craftsmen were forced to join production cooperatives or communal enterprises. The availability of services deteriorated, except perhaps for the most basic ones, such as barber and hairdresser shops, dry cleaners, shoe repair shops, and public laundries. This created space for former private craftsmen, now employees of municipal or state enterprises, to make extra money after hours and outside the legal framework by doing minor repairs and other work for the citizens. In the 1950s, some door-to-door services such as pot-wiring, which had already been corroded by long-term use, were still alive. Housewives had them repaired not only out of thrift, since especially in the first half of the 1950s there were not enough kitchen utensils in the shops. The entries in the “accounting diary” also bear witness to neighbourly help, e.g. in spinning shearling, feathering, or various minor repairs, often for arather symbolic fee, often free of charge. There was not much money left for entertainment, especially for the children. The amounts spent annually on cinema, theatre, and circus tickets, as well as on small trips to the countryside in the vicinity, were more than modest. However, there was always money for the children’s education, as was the case with violin lessons. CONSUMPTION AT CHRISTMAS TIME State propaganda presented the Christmas holiday period as a“holiday of consumerism”, which was supposed to be areward for the year’s work and at the same time proof of success in the construction of the “material base of socialism” that would allow the standard of living to rise. In the phraseology of the time, it portrayed the richness of the festive table setting and the joy of the gifts to be brought by the atheist substitute for in the Czech environment traditional Baby Jesus, Grandfather Frost (Russian “Ded Moroz”, Czech “Děda Mráz”), imported from the Soviet Union.41 The true state of the economy and the never-ending difficulties in supply were, of course, not consistent with this view. Population groups with average, let alone below-average income, which the family in question also possessed, did not share the official optimism proclaimed at Christmas time. The income barely covered the household expenses, living from one pay check to the next, and therefore the Christmas season brought more trauma to the children’s parents than the joy of the festive days, as evidenced by an entry in an 41 Martin Franc, Šťastné abohaté! Vánoce včeských zemích vpadesátých ašedesátých letech jako svátky konzumu (Happy and Wealthy! Christmas in the Czech lands in the 1950s and 1960s as aholiday of consumerism), In: Oldřich Tůma— Tomáš Vilímek (eds.), Pět studií kdějinám české společnosti (Five Studies on the History of Czech Society), Praha 2008, p.244. OPEN ACCESS
drAHOMír JAnčíK 105 accounting “diary” from early December 1953: “The golden age of socialism and the last month of the last year of the ‘Glorious Five-year Planʼ, when the hair on my head stands up in horror when Ithink of Christmas and the little children hoping that everything their mother cannot buy for them will be given to them by the Baby Jesus. My dear children, you don’t even know what real chocolate tastes like, which cost Kčs 6 in the sad days of the infamous republic of Masaryk and Beneš, and now, even with its thick tinfoil wrapping, Kčs 160. You can’t live like during the ‘old timesʼ, but you can die during the ‘new timesʼ”.42 Spending at Christmas increased slightly in line with the growth of the breadwinner’s income and the changing needs of the children according to their age— from toys to practical gifts (shoes, clothes) and gifts channelling their interests or aptitudes (e.g. hockey sticks or violins).43 Their parents gave each other only small gifts (e.g. abook, house shoes, stockings, lipstick) and only rarely more expensive residual items, such as aset of paintbrushes for their father, who liked to paint landscapes in his spare time.44 An annual treat at Christmas time was asupply of citrus fruits, especially oranges, as they were only available sporadically, about two or three times during the year. The expenses for baking Christmas candy were kept in an accounting “diary” separate from the regular purchases. They ranged from three to four hundred crowns, while the expenditure on gifts, with the exception of perhaps 1958,45 showed an increase, from less than two hundred crowns in 1954 to almost eight hundred crowns in 1959. “HOUSEHOLD ECONOMY”— SUBSISTENCE SELF-HELP The announcement of the second reduction in retail prices from the currency reform on 1April 1954 raised hopes of easing the still widening gap between afamily’s basic needs and disposable income. This can be read from the entry in the “diary”, albeit with aquestion mark signalling doubt: “The pervasive reduction in prices will enable me to pay off my debts and, Ifirmly hope, to save adecent amount of capital? We may be able to show our gratitude to our socialist government, with only the welfare of the working people in mind, at the elections in May.”46 It was pointed out in the press that this measure increased the purchasing power of the population by 5.6 billion 42 “Accounting diary”, p.24. The “Glorious Five-Year Plan” refers to the so-called “First FiveYear Plan”, the economic development plan for Czechoslovakia 1949–1953. “The famous republic of Masaryk and Beneš” refers to the so-called First Czechoslovak Republic of the interwar era (1918–1938). 43 Extra Christmas expenses (rounded): Kčs 600 (1954), Kčs 800 (1955 and 1956), Kčs 1 200 (1957), Kčs 800 (1958), Kčs 1 200 (1959). 44 “Accounting diary”, pp.52, 78, 105, 149–154, 179. 45 Christmas expenses in 1958 are not itemized in the “accounting diary”. Data on “extraordinary expenditures” from September to the end of the year were used to estimate them. 46 “Accounting diary”, p.34. OPEN ACCESS
106 WISOHIM/ESHP 31 “Accounting diary”— sample records from November 1955 (Source: Private papers of the Mahďák family). OPEN ACCESS
drAHOMír JAnčíK 107 crowns ayear.47 The reality, however, was far more modest. Only afew staple foods were cheapened, 1 kg of bread by 7.1 %, wheat flour by 10.9 %, butter by 4.5 %, sugar by 8.3 %48 and the summer price of eggs by 9.1 % apiece.49 From amicroeconomic point of view, these price reductions could not compensate for the increase in the consumption of staple foods by the family in question. This is evidenced by the rise in the share of food in the family’s total expenditure, up by almost 7 % in 1954 compared with the previous year. In the circumstances, there was no alternative but to resort to at least partial subsistence within the limits of one’s means. Among the most common forms were vegetable growing and the small-scale rearing of small livestock, usually rabbits and poultry in urban areas. Rabbit farming was the most common, reducing the deficit in meat supply. The family in question was no exception and maintained rabbit breeding throughout the 1950s. In addition to the common type of rabbit, they attempted to breed Angora rabbits, from which they expected adual benefit— meat and pelts. The pelts in particular failed to meet expectations, and the breeding was abandoned as early as 1955. Domestic poultry rearing was dominated by laying hens, with only afew ducks or geese reared for fattening and feathering. The rearing of laying hens was one of the most efficient activities in the “household economy”, as the cost of maintaining it was considerably lower than the retail price of eggs. From the beginning of 1953 until the currency reform, at the time of the rationing system, the family in question could afford to buy 288 eggs, although from March to May their sale on tickets in the tied market was restricted to children only. After the single market was restored in June, however, only 185 eggs could be purchased by the end of the year, partly because of the introduction of a55 % higher “winter price”.50 This development was commented on in the “diary” with ahopeless sigh: “Milk is 40h more expensive per litre and eggs 60h more per piece. My financial situation is terrible”.51 In 1954, the family consumed 820 eggs, on the purchase of which just over 940 crowns (55 % of the family’s monthly income) were spent. In an effort to reduce the expenditure on eggs, the family in question bought seven laying hens in early November 1954 and gradually expanded their flock to fifteen hens. 47 Rudé právo (The Red Right, the official newspaper of the Communist Party of Czechoslovakia), vol.34, no.89, 31.3.1954, pp.1 and 3. 48 After the money, 1 kg of sugar cost Kčs 14.0, but at the end of September 1953 it was reduced by 14 % (Kčs 2.0). At the same time, the price of 1 kg of wheat flour was reduced by 10 % (55 h.). Rudé právo, vol.34, no.271, 29.9.1953, p.1. 49 Rudé právo, vol.34, no.89, 31.3.1954, p.1. 50 Winter prices increased the price of eggs from Kčs 1.1 to 1.7 and 1 litre of milk from Kčs 1.8 to 2.2. Statistická ročenka ČSR 1959, p.383. 51 “Accounting diary”, p.22. The abbreviation “h” stands for “haléř” (haler/heller, i.e. small coins, 1 Kčs equals 100 hellers). OPEN ACCESS
108 WISOHIM/ESHP 31 Table 10:Balance sheet of laying hen production egg laying costs in Kčs sale eggs for home consumption pcs in Kčsapcs in Kčs pcs of which bottled 1.11.1954— 31. 10.1955 1 407 1 566.0 1 240.0 0 0 1 407 241 1. 11.1955— 31. 10.1956 2 056 2 418.4 1 290.0 310 445.2b1 746 399 1. 11.1956— 31. 10.1957 1 352 1 548.5 606.8 150 230.0b1 202 395 1. 11.1957— 31. 10.1958 — — — 217 326.5 — — 1. 11.1958— 31. 10.1959 1 226 1 271.4 898.0 103 154.5 1 123 — a value of eggs at retail prices b including buying-in When the number of hens exceeded ten, they became subject to the prescribed delivery obligation until the end of 1956, when the type of farmer represented by the family in question was exempted from this obligation.52 The very first year of breeding was profitable. The cost of acquiring the breeding stock and of buying the feed was more than three hundred crowns less than buying the same quantity of eggs at retail. In the 1954–1955 marketing year, one home-reared egg was produced for Kčs 0.88, and in the following years the cost fell to Kčs 0.45, while the summer price in the retail trade was kept at Kčs 1 per head and the winter price, from October to March, at Kčs 1.60. From the second year of breeding, the real costs were reduced by the income from buying eggs and selling them to neighbours, albeit to the tune of only afew hundred crowns. The housewife preserved the surplus eggs from the summer period by pickling them in lime in bottles for use in the winter months. “Home farming” in an urban environment was aform of subsistence farming that was particularly characteristic of the countryside. For the family in question, it was, in areal sense, alifeline against falling into permanent destitution. CONCLUSION The type of written source presented here, the “accounting diary”, provides adetailed insight into the economy of asingle household, but its explanatory value is much broader. Through the amount of income per household member, the household in question can be conceived as representative of one income group in the social structure of the population in the Czech lands, to which the same or similar ste52 Sb. z. an.1953, no.114, p.420; Sb. z. an.1957, no.5, p.69. OPEN ACCESS
drAHOMír JAnčíK 109 reotypes of consumer behaviour can be attributed, shaped by income, retail market conditions, and the overall economic strategy of the ruling power. With the money reform, the state intended, among other things, to reduce the consumption of those foodstuffs that were in the most obvious shortage (especially meat and meat products). For political-propagandistic, but also economic reasons, almost every year it proceeded to reduce retail prices, to alesser extent for foodstuffs, higher for consumer industrial goods. It tied their sales on the internal market to their high price, given the low purchasing power of the population. However, this, in addition to the lower technical level, reduced its competitiveness on Western markets. Sales of consumer goods on the internal market were therefore to be boosted by price cuts. However, this price policy had its limits. In some cases, such as children’s clothing, the retail price exceeded the relatively high production costs. Increasingly, there was talk of the need to increase the purchasing power of the population by levelling wages, which was primarily expected to increase labour productivity (and thus reduce production costs). The consequence was to be an increase in domestic demand for manufactured goods, aconsiderable part of which was in excess inventories. Gradually, this helped to create the conditions for the experiment— the first economic reform. The effects of this economic policy on the consumption of one particular family can be clearly read in the “accounting diary” of the family in question. They highlight the importance of intergenerational solidarity, on which the young family, especially with alarge number of children, was in no small measure dependent. This solidarity helped to bridge the frequent discrepancy between the breadwinner’s income and the necessary expenses, in which food purchases were dominant. The “accounting diary” tells the story of the consumption pattern of alow-income family which shows underconsumption compared to the statistically calculated average per capita consumption in numerous items, primarily foodstuffs. If we take into account that in the social structure of society, approximately half of the total number belonged to this category, the picture of living standards in the 1950s becomes more concrete. The family in question, like many others at that time, partly bridged the financial gap and the frequent shortfalls in supply by growing vegetables and keeping rabbits, chickens, etc. They adapted their diet to their financial means, in which flour products and flour-based home-cooked meals predominated. It was to her advantage that she had family ties to the countryside. This “diary”, however, tells not only of the hardships of material life and coping with them, but also of the everyday pleasures of ordinary life, since these too require costs, however marginal, from alollipop from the sweet shop to Christmas presents. Herein also lies its uniqueness for the knowledge of the times. OPEN ACCESS