Bankers-oligarchs with a centenary beard.
Bankers-oligarchs with a centenary beard.
To our contemporaries, witnesses of wreck of bank system
After crisis of 1998, events of four-year-old prescription can
To be represented unique in own way. Meanwhile something similar
To oligarchical board of "bridges", SBS ome or "inkomov" in Russia
Already was - hundred years ago. Bank system of Russia during the period with
1900 and before October revolution too gravitated to integration,
When five-six banks actually monopolised the market
Financial services, actively took root into the industry and
Made profit of military orders during the First the world.
In Russia already in the end of XIX century there was an advanced
The bank system which was not conceding on level the organisation by another
To the countries. By 1900 in the country 43 joint-stock were
Commercial bank. The majority of clients preferred to trust
The money of six of them in which 46,6 % of all have concentrated
The basic passives on 1,157 mlrd rbl. Three of six banks
The others had resources from 100 to 150 million rbl. everyone,
Owned 60-75 million rbl.
The country has met the XX-th century in the conditions of an economic crisis.
After short-term revival at the beginning of the century has come
Depression 1907-1909 Nevertheless financial resources of banks with
1900 on 1907 have grown in one and a half time. The premilitary man industrial
Lifting was marked 1909-1913 by rapid development of the joint-stock
Commercial banks also it was accompanied by serious concentration
Money resources in them. The six of the largest banks for that moment
Had to 678 million rbl. of the basic passives, and its relative density in
To bank system reached 55,3 %. But it were any more those banks,
With which Russia has entered new century.
In 1900 leaders were Volzhsko-Kamsky and Moscow
Merchant the banks which were the centres trading and textile
Capitals with archaic style of job. On the eve of the First the world
Wars they have appeared in outsiders. The in the lead five in the decreasing
Order looked so: the Russian-Asian bank, Petersburg
International, Azovsko-Don, Russian for foreign trade and
Russian commercial and industrial bank. These five banks spent in
The big scales uchreditelno-issue and operations on the stock exchange in
Petersburg also have created a wide network of branches in a province.
Independent position in relation to the Petersburg banks
Occupied old Moscow, Riga and Warsaw banks. Riga and
Warsaw historically gravitated to banks German. And
Provincial Russian banks have lost at this time the past
Value.
The largest banks in many respects were rulers of destinies of the country. They
Patronised leading enterprises in metallurgy, fuel and
Some branches of the mining industry, shipbuilding and
Have been closely connected with industrial syndicates - "prodametom",
"prodparovozom", "prodvagonom" and other.
In 1911-1912 Azovsko-Don, Commercial and industrial and
Siberian banks carried out financial reorganisation of the Ural
Factories and factories. As a result last steels to pass from the old
Owners under the control of banks. Russian-Asian, International and
The banks connected with them had considerable influence on the major
The enterprises of transport mechanical engineering, parovozo - and
Car building, shipbuilding. Industrial monopolies in these
Branches worked in close contact to banks. Large banks
Financed cement and the electroindustry, created
The organisations similar to trusts like Sormovo-Kolomna group,
Black Sea and Baltic ship-building groups of the enterprises. They
Have got into the food, glass industry, and International
The bank even has taken a leading place in "mirror" syndicate (was and
Such).
These banks, certainly, could not pass by dynamically
Developing petroleum industry. Association of brothers
Nobel supported Azovsko-Don and, partly, Volzhsko-Kamsky
Banks. Russian-Asian, International and other five banks
On the eve of war have created Russian general oil corporation.
Petrobarons Mantashev entering into it, Lianozov and others
Competed with Nobeljami. Operating in Groznensky area English-
Dutch concern Shell won the market with the assistance of Siberian
And International banks.
In the coal-mining industry Azovsko-Don and
International banks supported "produgol". Before war a member
Boards of Azovsko-Don bank Vert became the chairman of it
Syndicate. In copper manufacture and a gold mining actively worked
The Russian - Asian, International and Siberian banks in an alliance with
The British financial groups. In a sugar industry
Leading positions occupied Russian for foreign trade, Russian
Commercial and industrial and partly International banks, in tobacco -
The Russian-Asian bank. In light industry at the bank
Monopolies as a whole there were weak positions, they is selective
Took root only into the separate enterprises. In the textile
The industries influence have saved old Moscow banks,
Keeping separately from the five of banks-leaders.
Industry integration (up to creation of syndicates) and
Banks in premilitary years became possible thanks to considerable
To growth of the internal financial market. Now it helped development
The domestic industry - unlike XIX century, when
Development it was provided at first with the state
Financing, and then foreign investments. However,
Necessity for monetary feed from abroad has not disappeared, but
Now the largest Russian banks have started to act as intermediaries
Between the industry and the foreign financial markets. In
Result inflow of the foreign capital began to be narrowed. The such
The image at the beginning of the century had been realised dream of the present
Reformers of the Russian economy - banks not simply steels
To finance real sector, but also have acted as the reliable
Intermediaries for interested persons it to make from abroad.
War and banks.
The First World War has sharply changed position of the joint-stock
Banks. At first the heavy industry, and then and many other things
Branches have been translated to state financing. Because of
Sale was extended in trade shortages of the goods for
Cash calculation. The requirement as a result has sharply decreased in
Bill crediting of a trade turnover.
The state loans and release of paper money became the cores
Sources of financing of military expenses. Increase in the monetary
Weights at sharp reduction of volume of manufacture of the goods of the wide
Consumption has led to a prompt rise in prices. Inflation, military men
Orders and the deliveries, widely extended in the conditions of the commodity
Deficiency gamble have appeared perfect conditions for new
Waves of accumulation of capitals banks. State financing and
Granting of advance payments on performance of military orders allowed
To the enterprises to repay debts to joint-stock banks. These free
Monetary capitals spent banks for acquisition of the real
Values: the industrial and nonindustrial enterprises,
The real estate, actions etc. So, Russian commercial and industrial
The bank has bought hotel "Russia" in Yalta, and in Moscow hotel
"Metropol" for 12,5 million rbl. Through the figurehead Russian -
The Asian bank has got "Grand Hotel" in Kislovodsk for 3 million rbl.
The Petersburg international bank has bought the earth on Altai, in
The Astrakhan province and a manor "the White key" in the Ufa province.
The Azovo-Don bank bought up the earths in Ufa, Perm and Vjatsky
Provinces. Russian for foreign trade bank - the big possession
Eremeevyh in Moscow. The Siberian bank has got to 550 000 desjatin
Woods... Such activity of banks on operating then
To the legislation was considered illegal, but the Ministry
The finance did not pay to it attention.
Considerably evolved resources of banks were inflationary
Origins. They did not find of themselves of application in trade,
In the industry and consequently were mainly put in state loans
- I.e. Went on financing of military expenses of the country. Contributions
Banks in operation with long-term state loans and
Short-term obligations of Exchequer from January, 1st
1914 till April, 1st, 1917 have grown from 380 million to 4,18 mlrd rbl.,
Or on 3,8 mlrd rbl. For same time all other actives of the bank
Systems have increased with 4,5 mlrd to 6,5 mlrd rbl. And actives
Capital banks in 1914-1917 in the absolute sizes have grown in
4,3 times more than actives all of them provincial branches,
Together taken.
The huge means which have appeared at the disposal of conducting banks
Have allowed them to strengthen in days of war the control over a number of the enterprises.
It eventually has been compelled to recognise the Ministry of Finance.
So, activity audit Azovsko - the Don bank has established, that
In relation to some enterprises "the bank is them
The absolute master ". Legal owners of factories and factories
Quite often named "salesmen of banks".
At inspection of the Russian-Asian bank it was found out: "Than
More considerably debts to bank, the more deeply, more strongly and
Versatile subordination to bank. Such domination of the alien
The enterprises (bank. - the bus) sometimes gets so deeply,
That the enterprise still has only one visibility independent
Existence, only one form. Meanwhile all purpose, all
The problem of such enterprise - entirely to serve interests of bank, for
That the enterprise or is a screen, podstavnym legal
The person through whom own trade of bank is spent, or
Compensates the monetary help of bank in all ways:
The maintenance and tantemoj (an extra fee from the pure
Profits. - a bus) the creatures of bank planted in board under
Different names for supervision of the enterprise and a direction
Its activity, percentage, commission, kurtazhnymi and others
The circumstances tending to obvious benefit of bank... All
The subsidised and financed enterprises for bank is available nearby
Hundreds. Monetary interest of bank in these enterprises,
Which considerable part works on defence or has to it that
Or other relation, fluctuates from several tens thousand to
The sums over 20 million rbl. on everyone. And than more strongly debts
The enterprises, that bolshee quantity in board of the bank
Agents ".
Moscow newspaper with hostility adjusted to the Petersburg banks
"Commercial telegraph" in number for January, 4th, 1917 wrote:
"Banks do not hesitate openly and to represent itself as safely
Sellers and buyers of factories, factories, offices, crafts,
Cinemas, restaurants, hotels, baths and even opera and
Operetta theatres ". In number for February, 3rd, 1917 of the same newspaper
It is spoken: "Bank feudalism has reached that any
State successively, any state delivery - and now all podrjady
And deliveries state, - cannot do without bank, and
The lion's share of all profit goes to pockets of bank feudal lords ".
"The commercial telegraph" also was indignant with that four main things
Directors of Petrograd banks during war have earned a quarter
Billion roubles - "it is final, not by fair and diligent
Profits ".
Persons.
At the head of waging banks in days of war stood vigorous and on -
To the the talented people who were able many to work and achieve
Objects in view. Their partners were not less initiative
Businessmen. Differently it is possible to estimate their activity, but
That they have left an appreciable trace in history of the Russian economy
Also have made for it something useful, undoubtedly. Here a little
Strokes.
Aп п п я п п Ivanovich Putilov (1866-1929) occurred from the ancient
Sort of noble family, but became the financier and the businessman. Till 1906
It served in the Ministry of Finance, then became the director Russian -
The Chinese bank, and then - Russian-Asian. In 1917 it was
The chairman or member of board of 44 (!) enterprises,
Under control to the Russian-Asian bank.
It is considered, that Putilov has held these posts thanks to communications in
The Ministry of Finance and to assistance of the largest French banks.
But the idler it was not. Even before war Putilov actively promoted
To creation of military and ship-building concerns - Putilovsky,
The Neva, Russian-Baltic ship-building societies, societies
Factories byvsh. Baranovsky, Parviajnen, etc. In it to it helped
The French and Austrian banks.
Aspiring to boundless domination in bank, Putilov required
In the big personal capital. For this purpose, in particular, he has created in
Paris small bank. This bank Russian-Asian was financed
Bank, its main problem was to supervise actions of the feeding
Its bank. The same course has soon made also the Siberian bank. During time
Premilitary boom round the Russian-Asian bank
The group of the banks which informal leader became was formed
Putilov. Into group entered Russian commercial and industrial bank,
The Siberian and minor Petersburg private bank. They
Were engaged in uchreditelsko-issue operations and participated in
Realisations of projects Putilova.
However in days of war the alliance has broken up that Russian
Commercial and industrial and Siberian banks have passed in other hands.
Position Putilova in the Russian-Asian bank because of it not
Has suffered, but to it was not enough one bank, to it was necessary
Conglomerate of banks.
With that end in view Putilov has made a nonconventional course - has united with
Concern Staheeva. This major concern which has appeared in years
Wars, has grown from trading firm. Its expansion has been directed in
The spheres which were not especially interesting during that moment large banks:
hlebotorgovlju, a clap, textiles, fishings, shipping companies,
Wood, railways of Central Asia, etc.
In due course appetite of concern has grown. Its attention have involved
The largest private railways, the Ural mountain factories and
Rich banks. Putilov promoted acquisition by concern
Societies of the Kazan railway and sale to this society
Alapaevsk factories. It also has given out Staheevu the huge loan on
Acquisition of a controlling interest of Connected bank,
To own which other large businessmen wanted some.
After transition to concern the Connected bank has headed the were
Operating the Moscow office of the Russian-Asian bank. Staheev
In the meantime has taken root and in Volzhsko-Kamsky bank, having put there in
Board of person Batolina. Volzhsko-Kamsky the bank has opened
Huge demand lines of credit as to concern Staheeva, and
To the enterprises under control to the Russian-Asian bank. Same
The bank owned also a control package of Petersburg private bank,
And its owners Nemirovsky and Zalshupin have turned to brokers
Putilova and Staheeva. Thus, the Russian-Asian bank again
It has appeared at the head of group of four banks, and Putilova steels
To consider as a member of syndicate "Staheev - Putilov - Batolin". It it and
Has confirmed with the further actions.
Under the pressure of Putilova the Russian-Asian bank has given out Staheevu
Huge credits for purchase of the textile enterprises. Putilov
Has sold to concern Staheeva a large share holding Russian-Asian
Bank (under the high price) also has entered into bank Batolina board. In a sign
The protest against it has submitted a resignation "the tobacco
The director "bank N.A. Gordon. Putilov, conceived the new
Grandiose combination, agreed to offer pribylnejshej
The tobacco industry.
Large saharozavodchik K.I.Jaroshinsky conceded Putilovu
Scope, but not activity. Jaroshinsky, holding under the control
A number of sugar factories, has conceived to become the large banker. It has begun with
That in 1914 has bought the control in the Azovsko-Don bank
Share holding of the Kiev private commercial bank. Then
Has got at Englishmen a large share holding, having organised it in
Quality of reciprocal gesture the credit in Russian commercial and industrial
Bank. In January, 1917 Jaroshinsky in the same bank storgoval 70
000 actions at a double course for 35 million rbl. Thus a sum part
It has been paid on onkolju (the original demand line of credit), opened
In Russian commercial and industrial bank, and other money is brought
Belonging Jaroshinsky the Kiev private commercial bank.
At package purchase there was a change of a management of bank. Jaroshinsky
Itself has entered into its council and became a member of board. It has allowed it
To possess hardly probable not the boundless credit in Russian
Commercial and industrial bank.
In April, 1917 Jaroshinsky has wanted to appropriate two
Large bank: Russian for foreign trade and Petersburg
The international. With the first it was possible - Jaroshinsky and its two
Colleagues have entered into council of the Bank. With the second aim it is reached not
Was. Jaroshinsky it was possible to buy up a considerable package
The Petersburg international bank, but to its management not
Have admitted. Old owners, which, possibly have prevented,
Supported Putilov and Staheev.
The Jaroshinsky managed to gain the big money, not putting
Personal means. It simply moved actions and shares from one
Under control banks and the enterprises in others.
Bank monopolies have been connected with the Ministry of Finance
Strong, up to personal unii. Except Putilova, from this
The ministries there was other financial oligarch A.I.Vyshnegradsky,
The son of the Minister of Finance at Alexander III I.A.Vyshnegradskogo,
Become by the head of the Petersburg international bank. And. Century
Konshin in due time was operating State bank, and
Has then headed Russian commercial and industrial bank. Were
The director of Credit office L.F.Davidov became the head
Russian for bank foreign trade. P.L.Bark was large
The official, and then became director Volzhsko-Kamskogo of bank. Then
It has returned on public service as the last
The imperial Minister of Finance.
Results.
By the moment of nationalisation resources of seven largest banks of Russia
Roughly reached 8,5-9 mlrd rbl., i.e. Have grown in three with
Superfluous time in comparison with 1914 However real cost
Rouble on the eve of events of October, 1917 has decreased to 7-10 its %
The gold maintenance. That is real resources of seven banks
Made 700-900 million rbl. - four times less, than the day before
Wars.
Rouble devaluation, despite huge profits
Businessmen, has led to a rise in prices for materials, raw materials and
Fuel. The lack of working capital at became a consequence
The enterprises. There were terrible signs of financial pressure,
Destruction of productive forces of the country has begun.
Strengthening of positions of large banks and new financial and industrial
Groups in days of war has led to decrease in foreign investments in
The Russian economy. Nevertheless dependence of Russia from
Allies has increased repeatedly. An external debt for years of war
Has increased with 6 mlrd to 15 mlrd, besides not in the depreciating
Roubles, and in poorly suffered foreign currency. The country hardly
Paid obligations for pre-war debts. By calculations
Provisional government to deduce the country from
Post-war ruin, it was required 10 mlrd gold roubles. Without
The foreign help here was not to manage.
In 1917 the richest country in the world of a steel of the USA,
Having "the apolitical capital". In June of the same year
The provisional government has headed for attraction of the American
Capitals for railway building, in metallurgy and
Other branches of economy. The Russian monopolies and businessmen
Willingly co-operated with transatlantic partners.
But here October revolution, and all good intentions has appeared in time
Have been handed over in archive.
Michael Azarov.
<$>
//* an information Source: Russian focus, 8.07.02
//* Reg. Nom. - 1120700154.29-------------------------------------------
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