with the new government had been deteriorating for some time, went abroad to receive medical treatment. While abroad, he carried on a correspondence with the government that discussed the terms under which he would continue to serve as a constitutional monarch. He requested the continuation of some traditional royal prerogatives. The government, however, would not agree. In his abdication speech, Prajadhipok accused the government of having no regard for democratic principles, employing methods of administration incompatible with individual freedom and the principles of justice, ruling in an autocratic manner and not letting the people have a real voice in Siam's affairs. In 1934, the Press Act came into effect, forbidding the publication of any material deemed to be detrimental to the public order or to undermine morals. The law has been strictly enforced to the present day. Reaction to the abdication was muted. Everybody was afraid of what might happen next. The government refrained from challenging any assertions in the king's abdication statement for fear of arousing further controversy. Opponents of the government kept quiet after the failure of the royalist rebellion. Having defeated the royalists, the government now was put to the test of living up to the promises on which it had come to power. It took much more aggressive steps to carry out some important reforms. The currency went off the gold standard, allowing trade to recover. Expenditures on education were increased four-fold, thereby significantly raising the literacy rate. Elected local and provincial governments were introduced, and in November 1937 democratic development was brought forward when direct elections were held for the national assembly, although political parties were still not allowed. Thammasat University was founded, at Pridi's initiative, as a more accessible alternative to the elitist Chulalongkorn University. Military expenditure was also greatly expanded, a clear indication of the increasing influence of the military. In the years between 1934 and 1940 the kingdom's army, navy, and air force were equipped as never before. King Ananda Mahidol (Rama VIII) After King Prajadhipok left Siam and abdicated the following year, The government then chose Prince Ananda Mahidol, who was at that time in school in Switzerland, as the next king, becoming King Rama VIII,. For the first time in history, Siam was without a resident monarch and was to remain so for the next fifteen years, the Khana Ratsadon believing that he would be more pliable than Prajadhipok. From