En
Ru
Peter III signed a decree “On foundation of the State bank”
On May 25 (June 5) 1762 Peter III signed a decree “On foundation of the State bank” in order to meet military expenses.
It was the daughter of Peter the Great, Empress Elizabeth of Russia, who in view of the budget deficit was the first to come up with an idea of banknotes’ (paper money) introduction in Russia, however her proposal was turned down by the Senate, on the ground that paper money “were both an unusual and unknown practice in Russia, and the most harmful as well”.
The decree of the Peter III read: “As there is a shortage of money resources and those four millions, required by the Senate for contingency expenses, can’t be allocated in such short terms, His Imperial Majesty considers that banknotes would become a way out”. The decree ordered to stop the issue of copper money, restrict its usage, and launch banknotes’ introduction. The decree included the introductory part and fourteen paragraphs, which specified the plan of the foundation and activities of the State bank.
In accordance with the decree of 1762 the bank was to consist out of two departments, located in St. Petersburg and Moscow, and issue loans to representatives of all estates, thus issue its banknotes “as the best and popular in Europe measure”. The fixed capital totaling 2 million rubles was to be allocated from the state’s treasury. What is more 3 million rubles were to be allocated to the bank from the state’s treasury in order to establish a reserve capital; thus it was decided to issue banknotes amounting 5 million rubles with a face value of 10, 50, 100, 500 and 1000 rubles, which were equaled to coins, and thus it was allowed to take them during taxes payment, public collections, and customs dues.
Among the appointed directors of the bank institution were: in St. Petersburg — Ober-director Semen Rogovikov, St. Petersburg merchants Yemelyan Barmin Feodor Yamshchikov, Tula merchant Mikhail Pastukhov, Kaluga merchant Andrei Gubkin, English merchant Ritter; in Moscow — Moscow merchants Danila Zemskiy, Ivan Zhuravlev, Matvei Sitnikov, Tula merchant Larion Luginin, Yaroslavl merchant Ivan Zatrapeznov, foreign merchant Karl Wolff.
As a result of the Palace revolution 1762, undertaken by the wife of Peter III, Catherine (future Catherine II), the decree was not implemented.
It was only in 1768 that the Empress Catherine II founded 2 Assignat banks (in St. Petersburg and Moscow) in order to meet rapidly increasing military expenses. Those banks were aimed at replacing coins of full value by banknotes, being more convenient in circulation.
Lit.: Глейзер М. Начало выпуска и обращения бумажных денег в России // Старая газета Миниатюра. Бонистика. 2003. № 9; То же [Электронный ресурс] URL: http://www.bonistikaweb.ru/miniatur/2003-bon9.htm#nach; Именной, данный Сенату указ — Об учреждении Государственного Банка [Электронный ресурс] // Руниверс. Б. д. URL: http://www.runivers.ru/doc/portal1/details.php?ID=128518&IBLOCK_ID=62.
From the Presidential library materials:
Peter III (1728–1762) // House of Romanov. The Zemsky Sobor of 1613 : digital collection;
Полное собрание законов Российской империи, с 1649 года. СПб., 1830. Т. 15. № 11550. С. 1021.