1918–1940: Independent Republic of Estonia
In September 1919, Päts formed a new political party, the agrarian-conservative Farmers' Assemblies, which was based on the Country People's Union. In 1920 elections, the party won 21 seats in the 100-member Riigikogu and from 25 January 1921 to 21 November 1922, Konstantin Päts was the State Elder and led the first constitutional government cabinet. It was a centre-right coalition with three centrist parties. The cabinet fell soon after the centre-left Estonian Labour Party left the coalition because of Päts's right-wing policies and criticism of corruption within the Bank of Estonia. After stepping down as head of government, Päts served as President (speaker) of the Riigikogu from 20 November 1922 to 7 June 1923.
In 1923 elections, Farmers' Assemblies took 23 seats. On 2 August 1923, Päts became State Elder for the second time. A similar centre-right coalition with three centrist parties lasted again until the Estonian Labour Party left the coalition, forcing Päts to step down on 26 March 1924. Otto August Strandman had openly criticized Päts for his role in corruption within the Bank of Estonia and economic policies that depended on trade with Russia. Päts kept away from office politics for seven years. Support for his party did not decline. From 15 December 1925 to 9 December 1927, Jaan Teemant of the Farmers' Assemblies was the State Elder.
In 1926 elections, Farmers' Assemblies took again 23 seats and Jaan Teemant continued as State Elder. Already in 1927, Päts criticized members of the Riigikogu, saying that they had been causing the instability of government coalitions, rather than ideological differences. At the 6th Congress of Farmers' Assemblies in 1929, the party was in opposition to August Rei's leftist government and Päts, among others, demanded changes in the constitution, a smaller parliament, a separate presidential office and fight against corruption.
In 1929 elections, Farmers' Assemblies took 24 seats and Päts served his third term as State Elder from 12 February 1931 to 19 February 1932. It was an ideologically wide coalition with the Estonian Socialist Workers' Party and the centre-right Estonian People's Party. On 26 January 1932, Farmers' Assemblies and the left wing-agrarian Settlers' Party merged to form the Union of Settlers and Smallholders, only to be followed by the formation of the National Centre Party by four centrist parties. Päts's cabinet resigned, making Jaan Teemant the new State Elder.
In 1932 elections the newly formed Union of Settlers and Smallholders won 42 seats in Riigikogu and one of the party's leaders, Karl August Einbund, became the State Elder. On 3 October 1932, the coalition between the Union of Settlers and Smallholders and National Centre Party broke up, with the latter wanting to devalue the Estonian kroon during the Great Depression. Päts himself was one of the key opponents of devaluation.
A month-long government crisis started. Since there were only three major parties in the parliament, the third being the Estonian Socialist Workers' Party, no functioning coalition could be found until special authority was given to Konstantin Päts to form a grand coalition between all three major parties. His cabinet took office on 1 November 1932. On 25 November 1932, Päts's government was given more powers by the disunited Riigikogu to deal with the economic crisis. His government was forced to resign on 18 May 1933, after the National Centre Party, still favouring devaluation, left the coalition and the Union of Settlers and Smallholders had lost many of its members to the reactivated Settlers' party. The succeeding Tõnisson's National Centre Party cabinet devalued the Estonian kroon by 35% on 27 June 1933. Although the devaluation proved to be successful and had a good impact to the economy later under his own rule, Päts never recognized his mistake by opposing the devaluation.
Lack of government stability led to several new constitution proposals, but only the third proposal by the right-wing populist Vaps Movement was accepted in a referendum on 14–16 October 1933. Päts was elected on 21 October 1933 to head the non-aligned transitional government to the second constitution. Until 24 January 1934, he served as State Elder, but after the new constitution came into force, he became prime minister. The new constitution was a drift from democracy, giving a lot of power to the head of state (still named "State Elder") and leaving the Riigikogu only an advisory role.
Both Päts and Tõnisson, his predecessor as head of state, tried to control the Vaps Movement that was seen by democratic parties as a local National Socialist party that had to be kept away from power. In August 1933, State Elder Jaan Tõnisson had declared a state of emergency and temporary censorship, that was lifted only when Päts's transitional government took office.
The weak government response only gained support for the Vaps Movement and in early January 1934, the movement won municipal elections in several urban municipalities. On 27 February 1934, Päts himself imposed a law, prohibiting members of the military to take part in politics. This action forced several thousand members of the army to secede from the Vaps Movement.
Päts was one of the candidates in the presidential elections that were supposed to be held in April 1934, but the Vaps Movement candidate Andres Larka and even lieutenant general Johan Laidoner were both clearly more popular candidates than Päts in the public opinion. The campaign was accompanied by threats by the Vaps Movement to take power and rumours of a forthcoming coup. In early March 1934, Päts's political opponent Jaan Tõnisson compared the Vaps Movement with the Nazis in Germany and advised the government to take necessary action against the movement. Konstantin Päts then carried out a self-coup on 12 March 1934. He was supported by general Johan Laidoner and the army.
A state of emergency was declared and the Vaps Movement was disbanded, with about 400 members arrested, including the presidential candidate Andres Larka. Johan Laidoner was reappointed Commander in Chief of the Army. The period following the self-coup in 1934-1938 has been called by some politicians and historians the "Era of silence" which was marked by some degree of authoritarianism by Päts.
Speaking in the parliament on 15 March 1934, Päts stated that the Estonian people were "blinded by the propaganda of the Vaps Movement and ill-minded because of it, and the power could therefore not be in the hands of the people". On 15–16 March 1934, the parliament (Riigikogu) approved Päts' actions in hopes of saving Estonian democracy. Päts postponed the presidential elections for the duration of the emergency, expressing concern about "emotions being too high because of anti-government agitation by the Vaps Movement".
In August 1934, Päts appointed Karl August Einbund as Minister of Internal Affairs, making him the third leading figure of the era next to Päts and Laidoner. In September, the Agitation and Propaganda Department was created, in October, all parliamentary work was suspended after the opposition criticized the political restrictions and in December, censorship was introduced.
In February 1935, the Patriotic League (Isamaaliit) was formed to replace political parties, while all other political organizations were suspended in March 1935. Päts stated in his opinions at the time that political organizations should unite the society, not fragment it. The initial state of emergency was declared for six months in March 1934, but after September 1934, Päts extended it for a year in a total of six times.
Päts believed that a nation should be organized not by political views into parties, but by vocation into respective chambers, and a series of state corporative institutions were thus introduced, following in big part the example of contemporary corporatism in Fascist Italy. Päts had promoted the idea of corporate chambers already in 1918, but the idea did not gain support from strong left-wing parties at the time. Päts was the main proponent of the formation of the chambers and the first two were founded while his government cabinets were in office in 1924 and 1931. Fifteen more chambers were established between 1934 and 1936, bringing the total number to 17.
On 7 December 1935, a coup d'état attempt (the "Estonia plot", named after the Estonia Theatre) by the Vaps Movement was exposed. More than 750 people were arrested throughout the state, crushing the movement conclusively. Leaders of the movement were soon given court sentences as hard as 20 years of forced labour, however they were all pardoned two years later, in December 1937.
Meanwhile, Jaan Tõnisson had criticized Päts's inability to bring the new constitution into effect. In July 1935, Tõnisson was ousted from the Postimees board. In October 1936, four former State Elders, Juhan Kukk, Ants Piip, Jaan Teemant and Jaan Tõnisson, sent a joint letter to Päts, demanding civil freedoms and restoration of democratic regime. Reluctance to restore democracy also caused student riots in Tartu in the autumn of 1936, which led to clashes with the police and disbandment of the student council of the University of Tartu.
The lack of organized opposition during the emergency made it easier for Päts to pass reforms. Päts ruled mostly through presidential decrees, because the Riigikogu was needed to pass real laws. The economy grew and the infrastructure, industry, and education were developed. The Estonianization of personal names was supported, the most prominent example being Minister of Internal Affairs Karl August Einbund, who changed his name to Kaarel Eenpalu.
Päts also signed a decree to bring the Supreme Court from Tartu to Tallinn in 1935, although all but one of the justices voted against it. After the coup, the Supreme Court lost many of its powers and was not able to observe the implementation of democratic principles in the country. Päts also founded the Tallinn Technical Institute on 15 September 1936 as the second university in Estonia. Losing the Supreme Court and some faculties in the university definitely reduced the importance of Tartu in Southern Estonia - the town that had historically been supportive to Päts's opponent Jaan Tõnisson.
Regarding the 1934 constitution as too authoritarian, Päts organised the passing of a new constitution through a referendum and a constituent assembly. The corporate chambers were to be the basis of forming the assembly. Its formation was approved (with 76% in favour) in a referendum in 1936. The 1936 National Assembly elections were boycotted by the opposition in most electoral districts.
On 28 July 1937, the assembly adopted the third constitution, that was based on Päts's draft. A bicameral parliament was to be elected and the president was to be elected by the parliament, not by the people. On 3 September 1937, a 120-day period of transition began, during which Päts ruled as President-Regent.
On 1 January 1938, the new constitution came into force and the 1938 parliamentary elections were held. Opposition candidates were allowed to take part, however they were given little or no attention in the media. Päts's supporters in the National Front for the Implementation of the Constitution won 64 of the 80 seats in the lower chamber, the Riigivolikogu. The president, who was yet to be elected, was also able to directly appoint into office 10 of the 40 members of the higher chamber, Riiginõukogu.
On 23 April 1938, Konstantin Päts was elected and nominated a presidential candidate by both chambers of the parliament (Riigikogu) as well as by the Assembly of Municipal Representatives. Jaan Tõnisson was the only opposition candidate in the parliament's lower chamber (Riigivolikogu). Of its 80 members, 65 voted for Päts and 14 for Tõnisson. There were no opposition candidates, and no elections necessary, in the upper chamber (Riiginõukogu) and in the Assembly of Municipal Representatives, where Päts received 36 from a total of 40 and 113 from a total of 120 votes, respectively. As both chambers of parliament and the Assembly of Municipal Representatives had elected and nominated the same candidate, in accordance with the constitution, a collective electoral body convened on 24 April 1938 and voted with 219 in favor of the candidate, Päts, and 19 ballots left empty. From a total of 240, the 219 votes were more than the required 3/5 majority (144 votes). Päts gave the presidential oath of office in front of the parliament (Riigikogu) on the same day, 24 April 1938, thus becoming the first President of Estonia.
On 9 May 1938, Päts appointed Kaarel Eenpalu as prime minister. On 5 May 1938, all political prisoners, mostly communists and members of the Vaps Movement, were given amnesty. There is no consensus, whether the so-called "Era of Silence" ended in 1938 with the adoption of the new constitution, or in 1940 with the Soviet occupation. The era of 1934–1940 is generally also called the "Päts Era". Also in 1938 a general amnesty was granted for those political prisoners of the Vaps Movement and the Communist Party, who had not directly killed anyone.
