During the interwar period, Finland made remarkable political, social and economic progress. The democratic institutions grew stronger, and the country worked hard to unify its people after the bloody civil war. Even though Finland was industrializing, almost 60% of the nation’s workforce was still engaged in agriculture and forestry.
The 1930s were shadowed by the Great Depression, which was, however, quite short lived in Finland. The main reason was that Finland was still an agrarian society with relatively little industrialization. Finland’s main export partner was Great Britain, and also Britain survived the depression relatively well. The Finnish GDP started to grow already in 1932.
The Depression had a major impact on European nations, and the decade turned out to be a challenging time for young democracies like Finland. Many nations were challenged by extreme right and extreme left movements. As in many European countries during the interwar period, Finland saw the rise of its own far right movement.
The Lapua Movement used violent tactics to suppress and intimidate left-wing sympathizers. The movement succeeded in pressuring parliament to enact the so-called “communist laws”, which effectively banned Communism in Finland from 1930 to 1944. The leaders of the movement radicalized and hoped to ban the Social Democrats altogether. When the government did not agree on this demand, the Lapua movement tried to stage an armed coup in the town of Mäntsälä. The rebellion was defeated, and, ironically, the Lapua Movement was banned in 1932 using the very communist laws they vigorously called for.
The Finnish-U.S. relations grew stronger during the 1930s. President Franklin D. Roosevelt praised Finland’s attitude towards paying its debts to the U.S. He offered Finland a new debt payment plan: if the country agreed to pay off its debt of $5,854,903 over the next 30 years, the United States would not require Finland to pay any interest on this debt. Finland accepted the offer, but the U.S. Congress blocked the plan. During the 1930s, Finland endorsed a number of U.S. bilateral and multilateral proposals regarding disarmament, international peace and international commercial measures that removed trade restrictions.
During the interwar period, Finland believed that neutrality was its best foreign policy doctrine. The country sought “friendship toward all and alliances with none.” However, Adolf Hitler’s aggressive actions in Europe caused widespread concern, and in 1932 Finland signed a nonaggression pact with the Soviet Union. Furthermore, Finland tried to tighten its relationship with the Nordic countries, and in 1936 Finland and the other Nordics declared a strict policy of neutrality.
The Finnish immigrants in the United States held fast at first to their traditions, language and societies, but in the 1920s and 1930s things started to change. The Finns adopted the “melting pot” attitude, and they started using American slang and wearing modern clothing instead of their traditional homemade outfits. Some children were ashamed of their parents’ heavy accents, and many changed their names for simplicity’s sake or to avoid possible ridicule over pronunciation. Some older immigrants settled for a curious mixture of English and Finnish called “Finglish.”