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.