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Abstract

After the October Revolution, the banking system was nationalised before the industrial and commercial systems, and this priority underscores the strategic importance conferred upon controlling monetary flows. The mammoth public debt that the Bolsheviks inherited upon their accession to power was only a part of the reason for this; the attempts to exert stringent financial discipline were also prompted by the recognition that private profiteering had been faciliated by the instability of the currency and by excessively easy access to credit. But since a high rate of monetary emission took place during the Civil War, to finance both the war and free public services, financial stability remained a remote goal. The market bases of the NEP, epitomised in economic accounting, had to be grounded in a stable ruble. The achievement of this aim crucially depended on closely monitoring the flows of credit. This was facilitated by a combination of the retention of state control over the biggest (joint-stock) banks and the formation of a network of smaller banks; the former was to serve state industry and trade, while the latter was intended to meet the needs of private clients.

Keywords

Current Account Trade Balance State Credit Public Sector Bank Private Trader 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    A. M. Ginzburg (ed.), Chastnyi kapital v narodnom khoziaistve SSSR. Materialy komissii VSNKh SSSR, 1927, 20–21. For the argument that their more rapid rates of turnover of goods and capital enabled private traders to operate with smaller overheads expenses, especially on the payment of salaries, see G.V. Postnikov, ‘Oblozhenie chastnogo kapitala’, in Ginzburg, ed., Chastnyi kapital, 186.Google Scholar
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    See G. Ia. Sokolnikov, et al. (eds), Finansovaia entsiklopediia, second edition, 1927, 94.Google Scholar
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    P.I. Iiashchenko, Ekonomika torgovli (teoriia i organizatsiia), 1925, 282.Google Scholar
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    K. Ganber, ‘Obshchestv vzaimogo kredita i normal’nyi ustav’, VF, No. 29, 14 September 1922, 13.Google Scholar
  7. 1.
    A. Z. Arnold, Banks, Credit and Money in Soviet Russia, New York, 1937, 23.Google Scholar
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    This was accomplished by an NKF circular. See SU, 1918, 74: 806.Google Scholar
  9. 17.
    ‘Petrograd: operatsii obshchestv vzaimogo kredita v Petrograde’, VF, No. 20, 13 August 1922, 52.Google Scholar
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    Kozyrin, ‘Ob obshchestvakh’, VF, 1927, 97.Google Scholar
  13. 21.
    Pisarev, ‘Kreditnye’, SO, 1927, Table 2, 58.Google Scholar
  14. 22.
    Kozyrin, ‘Ob obshchestvakh’, VF, 1927, 97.Google Scholar
  15. 23.
    Pisarev, ‘Kreditnye’, SO, 1927, Table 2, 58; E. Burnakov, ‘Chastnyi rynok ssudnykh kapitalov v 1924/25–1926/27 gg.’, SO, No. 11, 1927, Table 1, 76.Google Scholar
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    Pisarev, ‘Kreditnye’, SO, 1927, Table 2, 58.Google Scholar
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    Kozyrin, ‘Ob obshchestvakh’, VF, 1927, 97.Google Scholar
  19. 28.
    Burnakov, ‘Chastnyi rynok’, SO, 1927, Table 1, 76.Google Scholar
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    Burnakov, SO, 1927, 76.Google Scholar
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    Kozyrin, ‘Ob obshchestvakh’, VF, 1927, 97.Google Scholar
  22. 31.
    Burnakov, ‘Chastnyi rynok’, SO, 1927, Table 1, 76.Google Scholar
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    Fridman, Chastnyi kapital, 69.Google Scholar
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    TPG , No. 31 (1165), 7 February 1926, 2; Ginzburg (ed.), Chastnyi kapital, 35.Google Scholar
  29. 42.
    For the proportions of OVK credit going to private wholesalers and retailers from Moscow OVKs in October 1925 and in April and September 1926, see A. Sokolskii, ‘Bankovskoe kreditovanie chastnoi torgovli’, in Zalkind, ed., Chastnaia torgovlia, 92.Google Scholar
  30. 43.
    Materialy po istorii, 30–31.Google Scholar
  31. 45.
    Fridman, ‘Chastnyi kapital’, EO, 1926, 159.Google Scholar
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    Burnakov, ‘Chastnyi rynok, SO, 1927, 79, 82;Google Scholar
  33. I. Pisarev, ‘Diskont na vol’nom rynke vo vtoroi polovine 1927 g.’, SO, No. 3, 1928, 91–92.Google Scholar

Copyright information

© Arup Banerji 1997

Authors and Affiliations

  • Arup Banerji
    • 1
  1. 1.Eurasia ProgrammeIndira Gandhi National Centre for the ArtsNew DelhiIndia

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