934
RUSSIA
roubles for 10 roitbhs in gold. This ratio has been confirmed for the year 1897. It is proposed to maintain it further on, and to impose upon the State's bank the dut}' of accepting paper money at the above ratio in exchange for gold. And finally, in view of the proposed permanent introduction of the above regular ratio between gold and paper currency, it was ordered, by an Imperial decree, dated January 3 (15), 1897, while leaving the gold money of the same contents of pure gold, weight, and dimensions as before, to mark upon it — on the 'imperials' 15 roubles (instead of 10), and on the 'half- imperials ' 7r. 50c. (instead of 5 roubles). In 1897 (Nov. 26), a new gold money of the value of 5 paper roubles, i.e., equal in value to g of the ' imperial ' was introduced.
A regular value of the i)aper currency having thusibeen introduced, a law was passed on September 10 (August 29), 1897, to the eflect that paper cur- rency may be issued by the State's Bank, when necessity occurs, but on the following conditions : If the amount of paper' currency does not exceed 600,000,000 roubles, it must be guaranteed by half that sum (300,000,000 roubles in gold) ; while every issue above 600,000,000 roubles must be guaranteed to the full amount in gold deposited at the bank. In the me- moir which accompanies the budget estimates for 1898, the Minister of Finances shows that the amount of gold accumulated at the Treasury and the State's bank now attains 1,315,000,000 in paper roubles, that is, exceeds the amount of paper money in circulation by 316,000,000 roubles. A considerable part of this amount of gold— that is, 575,000,000 roubles ( = 862,500,000 roubles in paper money) — is considered as a guarantee fund for the paper currency, which has been reduced, since 1896, by 122,300,000 roubles. The growth of the guarantee fund since 1887 is represented as follows : —
Total amount of paper currency
Total amount of gold at Trea- sury and Bank, valued, Ir. gold =lr. 50c. paper .
Percentage of paper currency covered by gold reserves
Guarantee fund in gold to cover paper currency valued, Ir. gold = Ir. 50c. paper .
Percentage of paper currency covered by above guarantee fund .....
Jan. ], 1887. , Dec. 16, 1896. Sept. 13, 1897.
1,046,500,000 1,121,300,0001,068,778,167
441,600,000 42-2
255,500,000
24-4
1,206,000,0001,131,700,000
107-5
750,000,000
66-9
105-9
862,500,000
80-7
In consequence of the just-mentioned law of September 10 (August 29), 1897, the form of the bahmce of the State's bank was altered on September 13, 1897. The paper currency, which represented a total of 1,068,778,167 roubles, will now ajtpoar in the ^^amw of the bank, while the guarantee fund in gold (750,000,000 roubles), and the liabilities of the State Treasury to cover the paper currency, will appear in active of the bank. The total amount of gold at tlie bank, considered as a guarantee for paper currency, attained on September 25, 1,131 700,000 roubles. The gold owned by the bank abroad (13,100,000) and the gold owned abroad by the Treasury were not included in that item. (See below, under Money .vnd Credit.)
