Morning journal and courier., 1880-07-02
Friday Morning, July ?, 1880.
RUssIA,s BANK SYSTEM.

Probably most people in the United States who have any opinion at all about Russia look upon that country as but little better than half civilized, and far behind such na- tions as England, France and the United States in all that pertains to progress and good government Most of our knowledge about Russia warrants this opinion, but facts are occasionally published which tend to bet ter the general impression concerning the state of affairs there A recent study of the banking system of the country is of this na- ture, and will surprise mahy who had no knowledge of the completeness and conven- fence of that system, which seems quite worthy to be compared with the banking sys- tems of the most highly civilized countries.
 At the head of the system is the Bank of Russia, the magnitude of whose operations has but one or two parallels in the world. Its affairs are in the main managed by govern ment officers but nobles and merchants sometimes give them advice. As the capital of the bank belongs to the State there are no stockholders, and the profits &C., crue to the Russian treasury. The capital is 2S, COG, ,OOO rubles and the profits of 1877 were 1880 1000 rubles, a ruble being equivalent to 66 9-1O cents. In 1877 the total operations of the bank reached 12,O00, 100000 rubles. In 1869 the deposits were 160, ,000,000 rubles, and ten years later they were 277, 900, 0OO It alone can issue paper money, the Govern ment's currency issues being solely made by it's aid, and in the form of bills drawn upon it. On August 27, 1879, it's total circu- lation consisted of 1,131, ,OO0, ,O0O rubles, ZIG, 900. 900 issued on it's own account, and 415, ,OOo,O0O on account of its fifty seven branches. To secure this currency it had only 1s8, ,OOO, 900 rubles in coin, and the bills were at discount of 30 per cent Be- sides the national banks there are local banks not less intimately connected with the Gov ernment. In 1877, 262 communal banks re- ported total capital of 15,OO0, 900 rubles, deposits of 136, ,OO0, GOO. and discounts of 25o, 900, GOO, and in 1874 eighteen provincial banks made reports of which particulars are not given. The communal banks are admin istered more or less directly by the communal councils, and the provincial banks of the Zemstvo or provincial representative body. In each case the capital and profits are public funds The Russian commercial banks num- Der thirty weight, with fifty branches, and an- swer to our joint stock corporations. In 1865 their total capital and resers es were D. 900, 900 rubles in 1879 they were 98, 900, GOO; in 1865 their deposits were l, 45O,O0O rubles, and in 1879 256, ,65O, ,0OO in 1865 their dis counts and advances were 2,30O,OOO ru- bles, and in 1879 they were 24S, 6SO,O In 1877 the total operations of these banks reached 24, S26, GOO, 900 rubles, or about one- half more than that of the Bank of France in 1878. The profits were 9, 400, 900 rubles, and the dividends were at the rate of about per cent. There is also class of institutions which do work similar to some corporations in our Eastern States which advance money on Western farms Of these. eleven are joint stock companies, having capital of 19, 900, 900, and loans of 11S, ,OOO, 900 on coun- try property, and of 49, 900, 900 on city prop erty. The other seventeen banks of this class are mutual in their character The largest of this class has capital of 49, ,5OO- 900 rubles, and loans in forty-fve Provinces aggregating 746, 1000, 1000 rubles. To con- plete the system there must be added eighty nine establishments which are in part at least pawnbroker shops, carried on by so- cieties numbering f, 764 members and doing business several times larger than their capital of 5000, 900 rubles.
 This is a pretty good showing, so far as banks are concerned, for country with such 8 reputation as Russia has. It will help to improve that reputation, as the proof recent ly offered that exile to Siberia is not the cruel thing it was, or was supposed to be, has done.