Risto Ryti
Risto Heikki Ryti was a Finnish politician who served as the president of Finland from 1940 to 1944. Ryti started his career as a politician in the field of economics and as a political background figure during the interwar period. He made a wide range of international contacts in the world of banking and within the framework of the League of Nations. Ryti served as prime minister during the Winter War and the Interim Peace, and as president during the Continuation War.
Ryti penned the 1944 Ryti–Ribbentrop Agreement – named after himself and Joachim von Ribbentrop – a personal letter to Nazi German Führer Adolf Hitler whereby Ryti agreed not to reach a separate peace in the Continuation War against the Soviet Union without approval from Nazi Germany, in order to secure German military aid to stop the Soviet Vyborg–Petrozavodsk Offensive against Finland. His resignation soon afterwards allowed his successor, Carl Gustaf Emil Mannerheim, to bypass the agreement and make peace with the Soviet Union once the offensive had been stopped.
After the war, Ryti was the main defendant in the Finnish war-responsibility trials, which resulted in his conviction for crimes against peace. He was sentenced to ten years' imprisonment but was pardoned by decision of President Juho Kusti Paasikivi in 1949. His reputation was largely unscathed, but his health had suffered and he never returned to public life.
Early life and career
Risto Ryti was born in Huittinen, Satakunta, one of seven sons, among 10 siblings. His parents were Kaarle Evert Ryti, a farmer, and Ida Vivika Junttila. Although he came from a peasant farming background, during his childhood Ryti hardly participated in work on the family's large farm, being a bookish and academically inclined boy. He was educated briefly at Pori Grammar School, and was then tutored at home, before enrolling in the University of Helsinki in 1906 to study law. Ryti was the only one among his brothers to pass the university entrance examination; however his three sisters also matriculated.Ryti graduated in autumn 1909 as Finland was moving into the second period of Russification. Escaping an oppressive political atmosphere in the capital, Ryti returned to his roots in Satakunta, where he established himself as a lawyer in Rauma. During this period he became acquainted with Alfred Kordelin, one of Finland's richest men. Ryti became Kordelin's lawyer, and eventually the two men became close friends. During this period Ryti also undertook further studies, becoming a Master of Laws in 1912. In the spring of 1914 he moved to Oxford to study maritime law, but the outbreak of World War I forced him to return to Finland. In 1916 he married Gerda Paula Serlachius. They had three children, Henrik, Niilo, and Eva.
In the period after the outbreak of World War I, before Finland achieved its independence, Ryti's business relationship with Kordelin grew even closer, and it appeared likely that Kordelin would ask Ryti to become general manager of his numerous business enterprises. However, in November 1917 Ryti and his wife witnessed the murder of Kordelin at the hands of a Russian Bolshevik. Russian seamen led by a Finnish tailor took Kordelin's party hostage, with the intent to rob them. Ryti, Kordelin's lawyer, refused to legally authorize the robbery despite being threatened at gunpoint. Armed White Guard soldiers were however present and the situation deteriorated into a gunfight. 20 people including Kordelin were killed. Ryti was saved by a malfunction in the enemy's firearm.
Politician and banker
Member of parliament and finance minister
During the Finnish Civil War Ryti played no active part, remaining in hiding with his family in Red-dominated Helsinki. Afterwards, however, he would become deeply involved in politics, being elected a National Progressive member of Parliament in 1919, at the age of thirty the second youngest member. In the same year, the party candidate, an admirer of Ryti, Kaarlo Juho Ståhlberg, was elected the first president of Finland. Ryti served as a member of Parliament from 1919 to 1924 and from 1927 to 1929. During his first few years in Parliament, Ryti served as chairman of the Judiciary Committee, and later the Finance Committee. He also served as a member of Helsinki City Council from 1924 to 1927.According to the Finnish historian Martti Turtola, Ryti succeeded in politics in the first few years after the Finnish Civil War because his liberal, democratic, and republican ideals were popular then. Moreover, Ryti's personal political success continued even after his liberal-oriented National Progressive Party shrank to a fringe party, because he was considered an expert especially in economic policy and, very importantly, an impartial servant of the fatherland who refused to play partisan politics.
In 1921, the thirty-two-year-old Ryti was appointed finance minister in the government of Juho Vennola. He served in that position twice until 1924. In 1923 President Kaarlo Juho Ståhlberg appointed him governor of the Bank of Finland, a post he remained in until he became prime minister in 1939. Ryti only began to exercise his duties as chairman of the Bank of Finland after he resigned as finance minister in January 1924. During his early years in parliament, Ryti succeeded in bringing order to the government budget. Although he was a Ståhlbergian, Ryti did not approve of pardoning Red prisoners. In his opinion, the Reds were criminals. Ryti refused to see the social background of the Finnish Civil War.
Governor of the national bank
In 1925 Ryti was nominated by the national progressives as their candidate in that years presidential election at the age of 36. In the second round of voting, he received the most support. However, in the third round the Swedish People's Party, which held the balance, moved their votes to Lauri Kristian Relander, and Ryti lost to Relander by 109 votes to 172. Ryti's support increased over the years but was never enough in elections. During the 1930s he withdrew from daily politics, but influenced economic policies. Ryti was an orthodox supporter of classical liberal economics. He made his goal to tie the value of Finnish markka to the gold standard. Unlike many other European countries, Finland did not choose deflationary solutions under his leadership; and in 1926 the country shifted to the gold markka. However, after the Great Depression in 1929, Finland was forced to abandon the gold standard following the example of Great Britain.In the 1920s, Ryti established international contacts with the banking world of Scandinavia, and with Great Britain and the United States. The Wall Street Journal recognized his success. In 1934 he was awarded a British honour, being created a Knight Commander of the Royal Victorian Order due to his great merits in Anglo-Finnish relations. He had excellent relations with the leaders of the Bank of England, due to his similar economic policies, such as the belief in the gold standard until the Great Depression, and due to his excellent command of English. In fact, Ryti could regularly telephone the Bank of England's leaders when he wanted to discuss economic or financial policies with them. Ryti participated in the activities of the League of Nations as a member of many committees dealing with economic questions and monetary policy.
In the politics of the 1930s, Ryti was an important background figure. His social policy was two-minded. Ryti opposed work programmes for the unemployed and spending on assistance for poor. On the other hand, he thought that the benefits of the strong economics should be distributed evenly over the whole population, not just a few. Ryti played an important part in creating the social welfare of the late 1930s. In general, Ryti was opposed to state intervention in business and industry. He opposed Socialist economics and especially its Soviet forms. Furthermore, Ryti had experienced the Russification period and the Civil War, making him anti-Soviet. Ryti approved of neither German national socialism nor right-wing extremism, and he also opposed the Lapua movement. Ryti was an admirer of British civilisation and culture and of American free enterprise.
Prime minister and president
Ryti–Tanner government during the Winter War
Ryti had built up relations of trust with leading Social Democratic Party politician Väinö Tanner and President Kyösti Kallio. In late autumn 1939, Ryti was offered the post of prime minister, but he tried to turn down the offer. However, when the Winter War broke out on 30 November, Ryti agreed. He took his post on 1 December. Ryti concentrated on a realistic analysis of the situation, instead of pessimism or over-optimism. He and foreign minister Tanner agreed that the war must be brought to an end as quickly as possible. They both spoke fluent English and had close contact with the Western powers.At the beginning of the war, the Soviet Union formed a puppet government and cut connections with the Ryti–Tanner government. The Finnish Army fought defensively in battles during December 1939 through February 1940. This gained time and freedom for diplomatic manoeuvering. The Soviet Union was forced to drop the Terijoki Government and accept negotiations via Stockholm. The Western allies' planned intervention influenced the Soviet government to seek an agreement. Ryti persuaded the rest of the cabinet to settle for peace and signed the Moscow Peace Treaty on 13 March 1940. The peace agreement, in which Finland lost large land areas and faced the burden of resettling 400,000 refugees, was generally considered crushing.
From prime minister to president
Ryti had proved to be a strong prime minister, in contrast to his predecessor Aimo Cajander. President Kallio suffered a stroke in August, and also he had no great experience in foreign policy, so the heavy responsibilities of state leadership were shared by Ryti, Field Marshal C.G.E. Mannerheim, industrialist and general Rudolf Walden, and Tanner. Considering this and the fact Ryti had signed the peace treaty, Ryti became an acceptable figure for the post of president in December 1940 when Kallio resigned.The exceptional circumstances, such as the lack of a permanent place of residence for many Karelian refugees, prevented the election of presidential electors, so a constitutional amendment was enacted by the parliament to enable the electors of 1937 to elect a successor to Kallio. Ryti was chosen with 288 votes out of 300.
On the day of his retirement, 19 December 1940, Kallio suffered a fatal heart attack during a farewell gathering; on the same day, Ryti became the holder of the presidency.