The Portland daily press., 1875-09-23
A Russian Mirror.

in the habit Of considering themselves friends,
why it is hard to deternss.ne. Ahey nave lew
interests in common; but botl =, 'ie 'soiuus
and growing countries with patES ~. 49,! 49,
apart that they cannot well come ir,s :. "r n''as
onism or competition. Perhaps that : ,9,s;.l S
cient ground for international friendsEss@
One striking point of resemblance they have.
They both suffer from the same evil, depre-
ciated and irredeemable paper currency. The
fact that they are companions in misfortune
may account for the friendly feeling they
cherish, each towards the other.
In an able and interesting paper contributed
to the September number of the American
Exchange and Revie,o by Dudley P. Baileyjr.,
formerly of this city, we are given full and
lucid account of the origin, history, and ten
denotes of the papercurrency Of Russia. That
monetary system offers so many points of re-
semblance to our own that its study cannot
fail to be Of interest and profit to fnanciers
and all students of the currency problem in
this country. 1t is but little more than a
century ago that the issue of government
paper money was began in the dominions of
the Gar, and nearly all the time since then
the vicious financial policy of the government,
generally arising from the exigencies of war,
has kept in circulation an excessive volume of
irredeemable paper. The country had go
coinage before the fifteenth century. In the
sixteenth it set up mint at Moscow. In
1854 the first ruble was struck,
In the eighteenth century the first govern
ment paper money was issued. For time
the paper notes were accepted, and, indeed,
preferred to the heavy copper kopecks then
in circulation; and so long as the amount
outstanding was reasonable, and proportioned
to the wants of trade, their value was MAIN
tanned. In 1888 the currency of the empire
was estimated to consist Of 100000 900 rubies
of paper money, 76,0OO,OOO rubles of
gold and silver coin, and 100000 rubles
of copper coin. Successive wars created de-
mands upon the exchequer which led to
over-issue and depreciation, increasing in
proportion to the increase of the issues. In
1906 the quantity in circulation amounted to
20O,000,000 rubles. Fourteen years later the
issues had reached 577,000,O0O; one silver
ruble was worth four of paper, and the specie
value of the whole paper currency was but
$4,000, or $2.65 per capita, against
1928 per capita in 17SS;-so useless is it, as
Mr.. Bailey justly remarks, to attempt to in
crease the aggregate value of an irredeenable
paper currency, when already more than suffi-
cent for the wants of trade, by augmenting
its volume. In 1917 the issues had reached
maximum of 100000 rubles. This great
initiation proved so injurious to Russian cred
it that in 1872 about 200, 100000 rubles of pa
per money was withdrawn. The paper ap-
preciated some, but the remedy was only
partial one. In 1889 another attempt at re.
sumption was made. Specie was accumulated
and cash-notes, much like our coin certificates,
issued. But the plan was not persisted in.
The period for the redemption of paper
money was fixed for 1S49. Meanwhile the
government got the Hungarian war on its
hands, and used the bullion deposit to pay
the expenses. 1t also emitted more bank
bills. The paper circulation stood at about
300,000,000 rubles in 1858. The Crimean
war again expanded it. In 1858 it reached
735, 100000 rubles. The notes at once be-
came inconvertble, and have remained so
ever since. The volume of paper now stands
at 1853, ,000,0 900 rubles with metallic reserve
of 195, 100000 rubles. The discount varies
between ten and twenty per cent. The gold
annually coined goes abroad.
Ofcourse there as here the credit system
is disorganized by the instability of the none
tary instrument, and by the practice of gov
ernment to use forced currency of paper
money. But there no one desires as here
further imitation. The evil is recognized.
Russia has learned too the fallacy of the ar
gument in favor of growing up to the cur
rcncy." Her foreign commerce has increased
fourfold since 1861, and her internal COM
merce in about the same proportion. Still
her paper does not touch par. Her attempt
to reestablish her currency on specie basis
will be watched with great interest in this
country.