Undoubtedly, S. Yu.Witte was one of the most successful finance ministers in the history of the Russian Empire. A monetary reform Witte contributed to the development of trade and production due to the convergence of banking and industrial capital and the elimination of inflation. However, his first innovation, connected with the establishment of a monopoly on the sale of alcoholic beverages in 1894, brought the reformer a much greater fame. From the beginning of 1894 until 1902, this reform Witte increased budget revenues 16 times.
When the Russian government was convincedthat the tax changes not only help to cope with the budget deficit, but also contribute to the reduction of alcoholism, it was decided to hold the second stage of changes, during which indirect taxes on kerosene, tobacco, sugar and matches were increased by 1.5 times. Witte’s reforms were not limited to “drinking” reforms, but also included the introduction of apartment tax, a trade tax on the profits of enterprises, as well as an increase in bank deposits. But the most important achievement of Witteka, the Minister of Finance of Russia, is considered to be the transition from inflationary paper money circulation to the gold standard.
Monetary reform Witte assumed stabilizationmonetary system of the country by establishing the gold equivalent of the ruble. The need for such decisive actions was due to the fact that at that time there was a high risk of a collapse of the Russian currency, because the official exchange rate of the ruble to the French franc was considered 1 to 4, and in practice it was no more than 1 to 2.5. Monetary reform Witte turned the ruble into a solid monetary unit, which helped to improve the investment climate in the country. As a result, at the beginning of the 20th century, Russia experienced unprecedented industrial and economic growth in all sectors of the economy.
Inflow of foreign investment right up to the beginningWar annually increased by 150 million rubles, while before the reform, it was only 100 million rubles. due to the instability of the country's monetary system. Monetary reform Witte suggested that the ruble contained 7.66656 g of pure gold, and credit cards that were in circulation in the territory of the Russian state could freely exchange for this precious metal at the stated rate.
On the eve of World War I, the golden ruble becameone of the most reliable currencies in the world and circulated freely throughout Europe. This allowed Russia not only to enter the foreign market and attract new capital, but also to strengthen political ties with the leading countries of the time.
And despite the fact that initially changes inthe legislation was perceived rather negatively, because they tied the hands of speculators, over time, Witte’s contribution to the development of the state was appreciated by historians and economists. Today, this period of Russian history is studied in detail in many studies of both domestic and foreign authors, and Witte’s reform is considered an example of the fact that useful innovations can and should be implemented without loss for the population.
