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Birthday anniversary of Nikolai H. Bunge, prominent scholar and economist, Minister of Finance of the Russian Empire
November 11 (23), 1823, in Kiev, was born Nikolai Hristianovich Bunge, prominent Russian statesman, scientist and economist, academician.
German family of Bunge, which settled in Russia in the mid 18th century, came from East Prussia. Nikolai’s father, known epidemiologist, pediatrician and veterinarian Christian Georg gave his son a good education at home, which he continued in the First Kiev Gymnasium, and then at the Faculty of Kiev Imperial University of St. Vladimir. After graduating in 1845, with a degree in jurisprudence, Bunge became professor of law at the Nezhinsky Law Lyceum of count Bezborodko. Two years later he defended his master's thesis "The study of principles of commercial legislation of Peter the Great" and was appointed professor of the Lyceum.
In 1850, Nikolai Hristianovich began teaching at the University of Kiev, where he soon received his doctorate degree in political science for the thesis "Theory of credit," and in 1854 became a full professor in the department of political economy and statistics. At the same time, Bunge began collaborating with a number of periodicals, publishing scientific and journalistic articles on various aspects of socio- economic theory and practice. Soon he started to combine teaching and research activities with administrative duties: in 1859-1862 Nikolai Hristianovich was the rector of the university, and later held this position two more times (in 1871-1875 and in 1878-1880) until the final resignation.
Bunge’s activities soon attracted the attention of the government: in the late 1850s and early 1860s he, along with other prominent scientists, participated in the Finance Committee on the development of the Emancipation reform, and then - in the discussion and development of a new university charter of 1863. The same year Nikolai Hristianovich was invited by the emperor as professor of economics and finance theory to teach the Grand Duke Nikolai Alexandrovich - the eldest son of Emperor Alexander II.
After returning to Kiev, Bunge combined the work at the University with the new position of the head of the Kiev branch of the State Bank, where he implemented in practice his theoretical ideas, gradually becoming one of the most influential economists of the country. In 1880, he was appointed Deputy Minister of Finance, and in May 1881 became head of the ministry, as well as being a member of the State Council.
One of the first activities of Bunge as a minister was the adoption of laws on compulsory redemption of allotments and on decreasing the size of the redemption payments, as well as the establishment of Farmers Bank. Activities of the new minister were characterized by significant changes in the tax field: poll tax was abolished, and a number of taxes and fees were increased to compensate for budget revenues. In 1883, the law on universal creation of excise private banks came into force. In addition, when Bunge was holding the post of minister, private railways were redeemed by the treasury and public railways were construct; in addition, mechanical engineering and metallurgy received extensive government funding. Under Bunge also started the preparation of future monetary reform which was finally carried out by S. Yu. Witte.
All the activities of Nikolai Hristianovich as minister did not lead to the expected improvement of the economy – the state budget deficit remained significant. The hard situation was aggravated by two consecutive poor seasons (in 1884 and 1885), which led to extremely adverse consequences that resulted, in particular, in numerous bankruptcies of enterprises and joint stock companies. Bunge’s work started to be severely criticized by the reactionary conservative forces, whose mouthpiece was the newspaper "Moscow News" of M. N. Katkov.
In January 1887, Bunge resigned from the post of Minister of Finance and became chairman of the Committee of Ministers. In this position he remained until 1895, combining it with an honorary membership in various societies and universities. In 1890, Nikolai Hristianovich was elected ordinary academician of the Imperial Academy of Sciences. Shortly before his death, Bunge compiled an informal note addressed to the new Emperor Nicholas II, which was called the “Afterlife notes." There, he outlined the draft reform of government, aimed at combating the revolutionary threat on the one hand, and at the manifestations of extreme reaction in the socio-political life of the country on the other.
Nikolai Bunge died on June 3 (15), 1895 at the age of 71.
Lit.: Бовыкин В. И. Зарождение финансового капитала в России. М., 1967; Он же. Формирование финансового капитала в России. М., 1984; Бунге Н. Х. Гармония хозяйственных отношений. СПб., 1860; Он же. Загробные заметки // Судьбы России. Проблемы экономического развития страны в XIX — начале XX вв. СПб., 2007; Он же. Курс статистики. Киев, 1876; Он же. Основания политической экономии. Киев, 1870; Он же. Очерки политико-экономической литературы. СПб, 1895; Он же. Полицейское право: В 2 тт. Киев, 1873-1877; Он же. Теория кредита. Киев, 1852; Гиндин И. Ф. Государственный банк и экономическая политика царского правительства (1861-1892 годы). М., 1969; Зайончковский П. А. Российское самодержавие в конце ХIХ столетия. М., 1970; История русской экономической мысли. М., 1959; Степанов В. Л. Н. Х. Бунге: Судьба реформатора. М., 1998.
Based on the Presidential Library’s materials:
Лешков В. Н. Полицейское право. Ч. 1. Благоустройство. Выпуск 1, 2 и 3 курса, читанного в Университете св. Владимира профессором Н. Х. Бунге. Киев. 1869 г. I. Исторический очерк экономических учений. II. Обозрение различных отраслей хозяйственной деятельности. Окончание 1 тома / рец. В. Лешков. [М., 1871];
Хроника. Монополия железнодорожного царства и её ограничения / Н. Х. Бунге // Вестник Европы. СПб., 1876. Г. 11 1876, [т. 2], кн. 3, март.