Mikhail Khristoforovich Reiter. Financial reform of the Reuter Economic policy of the Minister of Finance of the Reuter

Mikhail Khristoforovich Reitern

Reitern Mikhail Khristoforovich (1820-1890) - statesman. Served in the ministries of finance, justice, and maritime. Secretary of State (1858). Member of the Editorial Development Committees "Provisions" about peasant reform. Governor of the Ministry of Finance, Minister of Finance (1862-1878). Managed the development of the entire industry and foreign trade Russia. Author of reforms in the field of finance, money circulation, and banking. Chairman of the Cabinet of Ministers (1882-1886). Was the predecessor S.Yu. Witte in the development and implementation of the program for industrial modernization of Russia.

Reitern Mikhail Khristoforovich (12.09.1820-11.08.1890), count (1890), statesman, minister of finance (1862-1878). He received his education at the Tsarskoye Selo Lyceum. He began serving in the Ministry of Finance, from which he moved to the Ministries of Justice and the Navy, and where he returned in 1862 as Minister of Finance. Reitern's main achievements in this post were the legend state budget publicity, the implementation of the unification of cash registers and the establishment of a system of income and expenses from the very first year of government. Reitern's plans to reduce the use of state credit for the execution of paintings initially progressed successfully, but met an obstacle beyond his control in the form of emergency needs caused by the war of 1877-1878. Moreover, national debt increased under him as a result of the redemption operation associated with the liberation of the peasantry and the most active period of Russian railway construction. Although Reitern was a supporter of private rather than government construction, the abuses of railway companies and builders in issuing bonds forced him to concentrate this business in the hands of the treasury in the form of issuing consolidated bonds (1870). Other measures to combat abuse of railway concessions have been less successful. And yet, under Reitern, a total of more than 20 thousand versts were rebuilt railways, mostly private companies, but with a government guarantee of income. In an effort to streamline and reduce government borrowing, Reitern at the same time took care of the creation of organized private credit in the form of joint-stock and public banks, and under him small credit institutions began to develop in the form of savings and loan partnerships. Reitern's merits include: 1) the publication of a customs tariff in 1868, despite the liberal nature of which Russian industry began to develop successfully; 2) transformation of the tax system, such as: abolition of wine farming, replaced by an excise system (1863), improvement of the system of sugar and tobacco excise taxes, destruction of the salt monopoly and its replacement with an excise tax (which, however, led to an increase in the price of salt), abolition of the poll tax on the philistinism and the introduction instead of a tax on real estate in cities, towns and towns (1863), the abolition of the state zemstvo tax (1873) and its replacement with a state land tax (1875), the transformation of the system of trade and fishing fees (1863). In 1881-1886 Reutern served as chairman of the Committee of Ministers.

Materials used from the site Great Encyclopedia of the Russian People - http://www.rusinst.ru

Read further:

Russian leaders of the country, territories and departments(biographical reference book).

Knyazhevich Alexander Maksimovich(1792-1872), Reutern's predecessor as Minister of Finance.

Greig Samuil Alekseevich(1827-1887), Reutern's successor as Minister of Finance.

Valery Stepanov.

MINISTER OF FINANCE M.Kh. REITERN AND ALEXANDER II: HISTORY OF RELATIONS AND COOPERATION

“The transformative movement, which, by the will of Emperor Alexander II, embraced all aspects of the state and social life of Russia, nowhere did it manifest itself so decisively and clearly as in the restructuring of financial management and in the area of the national economy that was directly dependent on it,” emphasizes the Tsar’s major biographer. liberator S.S. Tatishchev (147) . And this is explained by very specific reasons. The Emperor ascended the throne at a time when Russia was experiencing deep financial distress caused by the Crimean War of 1853–1856, which was unsuccessful for the empire. The colossal expenditures resulted in chronic budget deficits and rapid growth of public debt. The massive issue of credit notes not backed by gold and silver led to disorganization of monetary circulation, inflation and a depreciation of the ruble.

The war clearly demonstrated the general and military-technical backwardness of Russia from the advanced countries of the West. For Alexander II and his entourage, it was obvious that without a sufficient financial base, developed industry and modern transport infrastructure, the empire could not maintain the status of a great power. Modernization required huge funds, which inevitably involved transformation and improvement financial system. Therefore, the emperor needed a competent minister who would be able to lead and reform this branch of government. In March 1858, Alexander II accepted the resignation of the head of the financial department P.F. Brock, whose level was not suitable for the role of leader, and also did not enjoy authority in the government and society.

Brock's successor was A.M. Knyazhevich. This appointment was initially considered temporary due to the latter's advanced age. The calculation was based on the fact that the experienced Knyazhevich, who had served in the ministry for many years, would be able to select a strong team and begin transforming the financial system. Under him, fundamentally important steps were taken - the Tax Commission was formed to prepare for the restructuring of the tax system (1859), State Bank(1860), budget transparency was introduced (1861), wine farming was abolished (1861), the state salt monopoly was abolished (1861), etc. However, Knyazhevich was unable to overcome post-war economic difficulties and radically change the situation for the better. In an atmosphere of general dissatisfaction with his policies, he was forced to resign.

After Knyazhevich left, the choice of the autocrat fell on Mikhail Khristoforovich Reitern (1820–1890). A graduate of the Tsarskoye Selo Lyceum, he was keenly interested in economic issues from a young age. Reitern began his career in the Ministries of Finance and Justice. During business trips around the country, he tried to study the economic features of each region. Subsequently, Reitern told Alexander II that “all his life he had been preparing for the position of Minister of Finance” (148). In 1854 he entered service in the Naval Ministry. The appointment took place on the recommendation of his lyceum friend A.V. Golovnin, who was the secretary of the head of this department, Admiral General of the Russian Navy, Grand Duke Konstantin Nikolaevich. Under his leadership, the Maritime Ministry was the first in Russia to begin reforms. Reitern became Konstantin Nikolaevich's consultant on economic issues. The Admiral General highly valued the special knowledge and rare diligence of his new subordinate.

In 1855, at the request of the Grand Duke, Alexander II authorized Reitern's business trip abroad to study the “financial system” of the advanced Western countries. The future minister visited Prussia, France, Great Britain and the North American United States. Returning to St. Petersburg in 1858, Reitern presented the emperor with a substantial report on the trip. He made a favorable impression on Alexander II and was awarded the title of Secretary of State. This indicated the beginning of a brilliant career. In 1858–1861 Reitern held the positions of manager of the affairs of the Committee of Railways and the affairs of the Committee of Finance, a member of the Council of the Minister of Finance and the Scientific Committee of the Ministry of Finance, was a member of the commissions involved in the preparation of projects for the abolition of serfdom, the transformation of taxation and credit, the charter of zemstvo mortgage banks, the abolition of wine farming, etc. This allowed him to become familiar with both the general directions of economic policy and the current affairs of the financial department.

In January 1862, Alexander II dismissed Knyazhevich, and in his place, on the recommendation of Konstantin Nikolaevich, appointed Reitern. By this time, the new Minister of Finance already had his own economic policy program, set out in notes addressed to the Grand Duke and several articles in the Marine Collection (149). Reitern was a supporter of the liberal economic concept classical school, which was then very popular in Russian society. He saw the cause of economic difficulties in the omnipotence of the state and the suppression of personal initiative. In his opinion, only the liberation of the “spirit of enterprise” from bureaucratic shackles can ensure economic prosperity for Russia. In his works, Reitern spoke in favor of limiting treasury expenses for the maintenance of the state apparatus, reducing the army and navy, reorganizing the budget-estimate system, introducing effective financial control, alienating state property into private hands, transforming the tax system on income principles, developing private credit, streamlining monetary appeals and a number of other measures.

The Emperor approved the concept of economic policy advocated by Reutern. A turn in government policy occurred during the Crimean War, when the state, in conditions of a financial crisis, began to encourage private entrepreneurship. The bet on private capital was considered by the Minister of Finance and his associates as the most important condition modernization. But at the same time, they sought to use the development of entrepreneurship primarily in the interests of the state. Their program was based on the principle of a “mixed” economy and provided for partnership between the treasury and private capital in the development of the national economy.

The autocrat trusted Reitern and showed him his affection in every possible way. He liked to ask him about his financial affairs and plans for the future. All notes and projects on economic issues received in the highest name were necessarily submitted to the conclusion of the Minister of Finance (150). Alexander II more than once defended him from criticism from the heads of other departments. However, Reitern's first major event almost led to the collapse of his career. Having headed the financial department, he immediately set himself the task of restoring the free exchange of banknotes for specie, which had been prohibited during the war. Having received a loan from the London and Paris Rothschilds, Reitern obtained from Alexander II the publication of a decree on April 25, 1862 with the order to begin exchange at the State Bank on May 1 paper money for gold and silver. However, he showed haste and chose the wrong moment for the operation. Neither economic nor political circumstances were favorable to such a step. In January 1863, the Polish uprising broke out, the suppression of which required enormous expenses. The demand for gold and silver increased sharply. The Minister of Finance failed to conclude a new loan and replenish the empty metal fund. As a result, in November 1863 the exchange operation had to be stopped. The damage suffered by the treasury amounted to tens of millions of rubles.

This failure dealt a heavy blow to Reitern's reputation. The Minister of Finance was hit with a hail of accusations of mediocrity and incompetence, and rumors arose about his imminent resignation. However, Reitern retained his post. Alexander II showed generosity and did not reproach him for the failure of the exchange operation. The real threat of resignation loomed over Reitern only three years later, when bureaucratic circles and society blamed him for the lack of tangible improvements in the economy. Finding himself under fire from criticism, the Minister of Finance petitioned the Emperor for his resignation. Alexander P did not object, but asked Reitern's opinion on a possible successor. The autocrat rejected the candidacy of State Council member N.A. Milyutin, who had a reputation as a “red”, and a member of the council of Finance Minister A.A. Abaza, known as a gambler. He agreed only to the candidacy of the director of the office of the Minister of Navy S.A. Greig, who, however, had a vague idea of \u200b\u200bfinance. To give Greig the opportunity to get used to the new department, Alexander II appointed him associate minister of finance. But Reitern managed to stay in his post. In May 1866, at a meeting of the Finance Committee, he was required to present a program of anti-crisis measures. The Minister of Finance, who did not tolerate interference in the affairs of his department, flatly refused. The dispute was resolved by Alexander II. He instructed Reitern to prepare a report for himself. The minister handed over matters to Greig and worked all summer on a policy note, which was drawn up by mid-September (151).

In this document, Reitern praised the liberal changes of the 1860s. “The history of all nations proves,” he wrote, “that revolutions can be prevented only by timely reforms that peacefully give the people what they themselves seek in revolutions, that is, the elimination of dilapidated forms and entrenched abuses.” At the same time, in his opinion, in an era of global changes in the life of society, “it is impossible to count on a quick and complete improvement in our financial situation.” Therefore, “a lot more time, a lot of work, a lot of sacrifices will be required before Russia emerges from the transitional state and is firmly established on new, reasonable foundations.” In the note, Reitern named the main ailments of the Russian economy: budget deficit, disorder of monetary circulation, too slow pace of state-owned railway construction, lack of capital caused by the growth of unproductive government spending and the leakage of people's “savings” abroad.

The Minister of Finance outlined the key objectives of the future policy of his department: 1) stop the outflow of capital abroad, strengthening confidence in the government through “instilling into civil life the main reforms that have been started” and non-interference in conflicts between other powers; 2) eliminate the budget deficit, strictly observe the regime of saving government funds, enter into loans exclusively for productive costs, and subsidize only profitable sectors of the economy; 3) increase existing taxes, since the introduction of income taxation in Russia in the coming years is not possible; 4) activate the country’s balance of payments - reduce foreign payments, increase exports, attract foreign capital, convince domestic and Western entrepreneurs of the profitability of Russian railways, create favorable conditions for the construction of lines by private companies. “With this course of action,” the conclusion said, “one can hope that within a few years the economic forces of Russia will strengthen; the transformations that constitute the glory of the reign of Your Imperial Majesty will not be stopped in their development due to lack of funds, but, on the contrary, will yield abundant fruits, and, finally, Russia from a transitional and troubled time, naturally and inevitably following revolutions in the civil and economic system, will come out stronger and richer than ever” (152).

Having carefully read and approved the note, Alexander II ordered that senior dignitaries be familiarized with it. At the end of September - beginning of October, it was discussed in the Finance Committee and the Council of Ministers. Reitern's recommendations were recognized as a long-term government program economic development(153) . The position of the Minister of Finance at the top immediately strengthened significantly, and talk about his resignation ceased. In addition, by the autumn it became clear that Greig was completely unsuitable as Reitern's successor. Colleagues even suspected the minister that he deliberately proposed an obviously unsuitable candidate to the emperor in order to prove his indispensability. A.V. Golovnin predicted that Reitern would remain in the ministry, “for the sovereign is extremely affectionate to him, since there is absolutely no one in mind who could replace him” (154).

Subsequently, the financial department in its policy adhered to the points of Reitern’s policy note. This was manifested in the reduction of departmental expenses, the approval of the new customs tariff of 1868, and the use of a concession system in the construction of railways. In the second half of the 1860s. revival began economic life. In 1869–4.873 Russia has experienced a rapid economic boom, which was expressed in the rapid growth of joint-stock companies, the development of major industries, large-scale railway construction, an increase in trade turnover, and expansion of exports. During this period, some financial stabilization was achieved. Positive changes in the economy and increased taxation have significantly increased revenues to the treasury. In the first half of the 1870s. the ordinary budget, as a rule, had a surplus, and the ruble exchange rate increased significantly.

The successes achieved highly raised Reitern's authority at the top and strengthened the sovereign's confidence in him. At the same time, while generally supporting the course of the financial department, Alexander II had an ambivalent attitude towards the minister’s desire to reduce exorbitant military expenditures, which impeded balancing the budget. Advocating for "frugality", Reitern has repeatedly stated his readiness to resign if his demands are not met. Almost immediately after his appointment to his post, he proposed to Minister of War D.A. Milyutin to reduce departmental estimates by 15 million rubles. IN otherwise Reitern threatened to stop payments altogether (155). And although Alexander II did not consider it necessary to make such a significant reduction, the Minister of Finance did not back down. His clashes with Milyutin began, and the autocrat often had to act as an arbiter between them.

At the beginning of 1873, at a meeting of the State Council, Reitern once again stated that he would be forced to ask for dismissal from his post if the War Ministry refused to reduce its estimates, although “it would be extremely difficult and regrettable for him to be away from the sovereign after I had the good fortune to be so close to His Majesty for 11 years.” As A.V. recalled Golovnin, “the sovereign stood up, took him by both hands and said: “You are absolutely right” - Reitern, obviously, won in the opinion and disposition of the sovereign” (156). Resistance from the financial department forced D.A. Milyutin to somewhat moderate demands for new appropriations. However, the emperor showed great interest in reforming and rearming the army. Therefore, the expenses of the War Ministry constantly increased in 1865–1875. accounted for almost a third of the state budget.

Alexander II repeatedly discussed foreign policy issues with Reutern and usually listened to his advice (157). In his most loyal reports and personal conversations, the Minister of Finance called on the Emperor to maintain peace and stop new territorial seizures, inevitably associated with international conflicts and significant financial costs. In particular, in February 1863, at a meeting of the Committee of Ministers, he categorically objected to the expansion of offensive operations in Central Asia, pointing out the difficulty of “attracting labor and capital to a new region” and “the undesirability of diverting these forces from the heart of Russia.” Alexander II and some of the senior dignitaries were sympathetic to the demands of the Minister of Finance. However, the military command, largely contrary to the will of the St. Petersburg authorities, preferred active offensive actions. Therefore, expansion in the Central Asian region was constantly increasing (158).

The desire to avoid even the remote threat of military confrontation was dictated by Reitern's position during negotiations in 1867 with the United States on the sale of Alaska. At a meeting of the Special Meeting chaired by Alexander II, he strongly spoke out in favor of this deal. The Minister of Finance believed that such a step would rid Russia of possessions that it would not be able to defend during a war with one of the maritime powers. Otherwise, there may be clashes between the Russian-American Company and American merchants and sailors over the discoveries made in the early 1860s. gold placers in Alaska, which will cause irreparable damage to Russia’s friendly relations with the USA (159).

The fear of provoking international complications explains Reitern’s behavior during the discussion at the “top” of the declaration of Chancellor A.M. Gorchakov on the annulment of the articles of the Paris Treaty of 1856 on the neutralization of the Black Sea, which were humiliating for Russia. This became possible after the defeat of France in the war with Prussia in 1870–1871. The draft declaration contained a clause on the return of seized Southern Bessarabia to Russia. At a meeting of the Council of Ministers headed by Alexander II in October 1870, Reitern opposed any territorial claims in order to prevent conflict with the European powers. But the emperor was determined to approve the text of the declaration. On the evening of the same day, the Minister of Finance sent Gorchakov a letter with detailed arguments for his position. The Chancellor presented this letter to Alexander II, and it returned from him with the note: “This does not change anything in my thoughts.” However, a day later, following a report from Gorchakov, who was convinced that Reitern was right, the emperor agreed to exclude the clause on the return of Southern Bessarabia from the text of the declaration. “Thus,” recalled A.V. Golovnin, “Reitern managed to provide Russia with a huge service, prevent a lot of terrible suffering and save hundreds of millions of rubles, the expenditure of which would have placed a heavy burden on current and future generations” (160).

However, the Minister of Finance could not keep Alexander II from declaring war on Turkey. Until mid-1876, the emperor was quite peaceful, spoke sharply of Slavophile agitation and repeatedly told Reitern of his determination to prevent Russia from being drawn into the Balkan conflict. However, then his mood began to change. At the end of September, the Minister of Finance received an invitation from the Emperor to come to Livadia. Upon arrival on September 1 at the residence of Alexander II, Reitern found him “in a completely warlike spirit” and “a feverish excited state.” The autocrat announced the impossibility of resolving contradictions with Ottoman Empire peacefully. Reitern was tasked with finding funds to wage the war. He tried to object, but the emperor interrupted him, gave instructions to talk with other ministers and then report to him about the results.

For Reitern this was a real shock. From the experience of the Crimean campaign, he well understood the consequences of another war. The situation was aggravated by the fact that at this moment the national economy again found itself in a crisis, which was characterized by a reduction in railway construction and a decrease in output light industry, a slowdown in the development of heavy industry, instability of grain exports, and a deterioration in the trade balance. The crisis was accompanied by stock market panic, huge losses and bankruptcy of many private enterprises and banks. This caused a corresponding reaction in the West, undermined the country’s international credit, caused an outflow of foreign capital abroad, a fall in the exchange rate of the ruble and Russian securities on the European money market.

In such a situation, entering the war would inevitably lead to complete financial collapse. Meanwhile, Reitern quickly became convinced of the militant attitude of most of his colleagues in the government. And yet he tried to convince the emperor. On October 3, 1876, the Minister of Finance sent him a note in which he pointed out the inevitable disastrous consequences of the war. He argued that it would lead “to the pogrom of our financial and economic interests" The treasury will not be able to cover only through loans upcoming expenses, therefore, it will inevitably be necessary to resort to a “pernicious means” - issuing banknotes, the result of which will be “a complete breakdown of our monetary system.” Russia, Reitern emphasized, “will be subjected to such devastation that no disasters in its past can compare. Accordingly, her financial situation will also be upset, and decades, if not entire generations, will pass before she recovers” (161).

The next day, Alexander II expressed dissatisfaction with his position to the Minister of Finance. He introduced the note only to the heir to the throne, Grand Duke Alexander Alexandrovich. On October 3, the emperor convened a meeting of several ministers, at which he attacked Reitern with reproaches. “The Emperor said,” he recalled, “that the note made the saddest impression on him, that I condemn all the reforms of his reign, proving that these reforms weakened Russia; that I am not at all pointing out the means for waging war and am proposing to humiliate Russia. That neither he nor his son will allow this.” The Chancellor of the Exchequer rejected accusations that he disapproved of the reforms of the 1860s. and repeated his arguments. However, as D.A. recalled. Milyutin, “the sovereign returned the note to him, saying that he had called him not to find out his opinion on whether the war should be started or not, but to find means to cover the costs that the war would cause.” To Reitern’s words about the lack of necessary financial resources, Alexander II sharply responded: “There are funds, but you need to be able and want to get them!” However, despite the disagreement, before the Minister of Finance left for St. Petersburg, the emperor said to him “a few gracious words” (162).

Reitern firmly decided to retire after the end of the war, and until then to fulfill his duty. He took a number of urgent measures to raise at least part of the necessary funds. Meanwhile, Alexander II over time somewhat moved away from his militant position and in every possible way demonstrated his disposition to the Minister of Finance. “As the sovereign, after returning from Livadia, returned more and more to his former peaceful mood,” Reitern recalled, “he took his former trusting and merciful point towards me; this did not change until the very end; on the contrary, he showed me some kind of special gentleness, like a person who needs to be protected.” The Minister of Finance tried to persuade the emperor to abandon military intervention. During his most loyal report on November 12, 1876, he told Alexander II that the amounts that would flow into the treasury in the coming months could only cover initial expenses, so it would be necessary to deplete the exchange fund and flood Russia with paper money. On December 10, Reitern again reported on the obvious lack of funds and the impossibility of “starting a war without knowing how to finish it.” These statements made a strong impression on the emperor (163).

On December 17, 1876, Reitern read a new note to Alexander II, intended for discussion in the Finance Committee. He once again emphasized that the issue of banknotes will inevitably lead to inflation, a depreciation of the ruble and “will violate all the foundations of our economic life and public finances.” The Emperor took these warnings with great attention and spoke to the Minister of Finance "very graciously." During his most respectful report on February 4, 1877, he told Reitern that he hoped to resolve the matter peacefully. On February 8, at a meeting chaired by Alexander II, the Minister of Finance stated that “Russia will finally perish not only in the event of war, but even then if we keep the armies under martial law for a long time.” In a note dated February 11, the Minister of Finance pointed out to the emperor the danger of a conflict with Turkey both for the national economy and for the state foundations of the empire. “I am deeply convinced,” he emphasized, “that the war will stop the correct development of civil and economic endeavors that constitute the glory of His Majesty’s reign; it will cause irreparable ruin to Russia and lead it into a state of financial and economic disorder, which represents prepared ground for revolutionary and socialist propaganda, to which our age is already too prone” (164).

However, in the end, Alexander II did not heed Reitern’s advice. On April 12, 1877, he signed a manifesto declaring war on Turkey. The start of hostilities was successful for the Russian army. There was no trace left of the emperor’s former peace-loving sentiments. At a meeting on May 18, 1877, in the presence of several ministers and ambassadors, he “very strongly reproached those of our statesmen who brought the fear of war to the point that they themselves shouted about our impotence; he directly pointed to the Minister of Finance and recalled the note he submitted in Livadia last fall" (165).

During the war, Reitern did everything possible to cover emergency expenses by entering into loans and issuing paper money. As he predicted, this campaign caused a catastrophic upset Russian finance. Military costs exceeded a billion rubles, the budget ran a huge deficit, public debt increased sharply, and the ruble exchange rate fell even more. The fruits of many years of efforts by the Ministry of Finance were lost. The revival of industry and trade in 1878–1880, caused by favorable military conditions, was soon replaced by a crisis of overproduction, which in 1882 engulfed the leading industries.

Upon receiving news of the completion of the Berlin Congress, Reutern resigned. At an audience on June 30, 1878, Alexander II tried to restrain him. According to Reitern, the emperor said that “my request puts him in difficulty, that I, using his full confidence, am asking for dismissal from such an important position, in which my experience and knowledge are now especially necessary, that it would be better for me to leave for a while abroad, to rest, and in the fall, if I don’t get better, to think about what to do.” But the minister remained firm in his decision. “In parting,” he recalled, “the sovereign said very merciful words to me with great feeling. He was apparently touched and so was I.<…>The general impression that I got from this audience was that the sovereign from the very beginning decided to accept my request for dismissal and that he persuaded me to stay only because he wanted to show attention to his old and faithful servant.” The Emperor wanted Reitern to tell his successor his “thoughts on finances.” He replied that back in February 1877 he handed over to S.A. Greig a note entitled "Financial Testament" outlining the main considerations on economic policy (166).

Reitern was dismissed from office with the highest flattering rescript. Alexander II himself handed it to the former minister on July 7, 1878. Reitern subsequently recalled this event as follows: “The Emperor told me: “I signed your dismissal and wanted to give it to you myself, read it.” The contents of the letter and this unusual way of presenting it touched me greatly, and I could only say: “Sir, I regret that I do not have children to whom I could leave this document as an inheritance.” The Emperor gave me his hand and said: “And every word is true” (167). In government circles, the former Minister of Finance continued to enjoy high authority. And although the peak of his bureaucratic career had passed, during the reign of Alexander III he held the honorary posts of chairman of the Committee of Ministers (1881–1886) and chairman of the Finance Committee (1885–1890). Shortly before his death, he received the title of count.

The interaction and cooperation of Reitern and Alexander II reflect the balance of priorities in developing the government course. Having ascended the throne at the time of the financial crisis, the emperor in his policies sought to take into account the state and needs of the economy. In this, he showed a certain consistency and provided support to the Minister of Finance both in the preparation and implementation of reforms and during conflicts with other departments. This contributed to the achievement of significant success in stabilizing finances and developing the national economy. However, Reitern failed in his attempt to cool the warlike ardor of the emperor and his inner circle. Despite much hesitation, Alexander II decided to declare war on Turkey. Political considerations once again took precedence over economic calculations. This led to another financial crisis and Reitern's resignation. The consequences of the Russo-Turkish Campaign for the country's economy were largely taken into account during the reign of Alexander III, when the government sought to pursue a more rational foreign policy and avoid military confrontation with other powers.

Chairman of the Committee of Ministers of the Russian Empire 1881 - 1886

	Minister of Finance of the Russian Empire
January 23, 1862 – July 7, 1878

Head of Government Dmitry Nikolaevich Bludov;
Pavel Pavlovich Gagarin;
Pavel Nikolaevich Ignatiev Monarch Alexander II Predecessor Alexander Maksimovich Knyazhevich Successor Samuil Alekseevich Greig Birth September 12 (24)(1820-09-24 )
Porechye, Smolensk Governorate Death August 11 (23)(1890-08-23 ) (69 years old)
Tsarskoe Selo, St. Petersburg Governorate Burial place Courland Genus Reitern Father Christopher Romanovich Reitern Mother Ekaterina (Karolina) Ivanovna Gelfreich Education Tsarskoye Selo Lyceum Awards Media files on Wikimedia Commons

Biography

Lutheran. Son of Lieutenant General Christopher Romanovich Reitern and his wife Ekaterina Ivanovna, née Gelfreich (1789-1869). He received his education at the Tsarskoye Selo Lyceum.

He began his service in the Ministry of Finance, continued it in the Ministry of Justice, and in 1854 he moved to the Naval Ministry, where he joined a circle of people grouped around Grand Duke Konstantin Nikolaevich and worked on the organization of the emeritus cash desk of the maritime department.

In 1858, Reitern was promoted to Secretary of State and appointed manager of the railway committee; in 1860 he took the position of head of the financial committee and became a member of the editorial commissions for the emancipation of the peasants.

Minister of Finance

On February 4 (January 23), 1862, he was entrusted with the management of the Ministry of Finance. The situation of Russian finances at this time was very unfavorable. Each year concluded with a deficit; debts, both interest-bearing and non-interest-bearing, were constantly increasing, covering the lack of funds for current expenses. Increased costs were also expected in the future; the reforms on the agenda required money.

Reitern achieved streamlining of expenses by introducing into financial management the same principles of transparency, legality, and the greatest possible control of administrative actions that were generally carried out during the era of reforms. In the very first year of his administration, he began to publish state paintings, which until then were considered almost a state secret. In the same year, new rules were developed on the preparation, approval and execution of financial estimates of ministries; At the same time, the so-called unity of the cash register was introduced. With great energy, Reitern strove to reduce supernumerary allocations, which under him dropped from 35 to 15 and even 9 million rubles.

Since 1872, he began to carry out paintings with a small surplus of income over expenses, almost without resorting to benefits state loan for budgetary purposes. If the public debt under Reitern increased more than under any of his predecessors, and the government for the first time turned to concluding internal loans, this was mainly due to the movement of the redemption operation and the growth of productive costs.

Industrial policy

The best way to increase government revenues Reitern saw in development productive forces countries. There were two main obstacles to this: enormous distances and the lack of private credit.

M. H. Reitern, 1865

Under Reitern, a railway network with a length of more than 20,000 kilometers was built, which gave a great impetus to the grain supply and expanded the sale of manufactured goods. R. was not a supporter of state-owned farming; he opposed the construction of new roads with funds from the treasury, and state roads, already built, began to pass into private hands under him (Odessa, Kiev-Brest, Moscow-Kursk roads). The construction of railways at the expense of the treasury was hampered at that time by the state of the state loan: in the 1860s, our 5% loans dropped to 60, 6% - to 80 per 100; even the winning loan of 1864 was not all covered by subscription, so a part of it had to be accepted by the state bank.

On the other hand, private companies have not been able to realize capital by placing shares for a long time. Given this state of affairs, Reitern in 1865 decided to accept the project of P. G. von Derwiez and A. I. Kolemin, who proposed building roads using government-guaranteed bonds, previously issued shares and placed mainly in Germany. The continuous issuance of bonds was, however, a financial inconvenience, damaging our credit. Therefore, since 1870, Reitern did not allow the placement of bonds of individual companies abroad, but bought them from companies, issuing consolidated bonds in return at a more favorable rate. Before Reitern, Russia knew private loan only in the form of moneylenders and discounters. Back in 1864, the first private commercial bank established in St. Petersburg asked the treasury for millions interest-free loan, to such an extent the matter seemed risky and unusual for Russia. As a result of the systematic support that Reutern provided for the organization of private credit, in a short time an entire system of private commercial banks was created, private land banks arose, city public banks received a new life (normal charter of 1862), and savings and loan partnerships began to emerge (rules of 1869).

Railway concessions and banking subsidiaries gave rise to a lot of abuses and stock market games, which led to a number of crises. The rules of March 30, 1874 on railway concessions were intended to eliminate the monopoly of a few capitalists and to make the public a participant in the construction of railways; the normal rules of 1872 were aimed at eliminating abuses in the establishment of new joint-stock commercial and land banks. Neither one nor the other achieved the goal. When drawing up a new customs tariff in 1868, Reitern for the first time resorted to publicity and a survey of manufacturers. Of great importance was the abolition of oil farming in the Caucasus (1872), which served as an insurmountable obstacle to the development of our oil industry, as well as the abolition in 1863 of almost all export duties; the treasury lost over 1,200,000 rubles from this, but our foreign trade benefited. In 1874, a premium of 20 to 35 kopecks per pound was established for rails prepared in Russia, for a period of 12 years, but government orders were distributed to factories (Putilovsky, Bryansk, Berd and others), which were mostly located outside the deposits of Russian iron ores and Russian mineral fuel, as a result of which the production of rails, although it reached significant development, but 2/3 of the steel was produced from foreign cast iron, using foreign combustible material, and the sacrifices made by the state treasury did not lead to increased development of domestic underground wealth.

Taxes

M.H. Reitern, 1865

Among the least successful measures of R. are operations to strengthen the currency. In the first year of his administration of the Ministry of Finance, Reitern tried to establish the exchange of banknotes for specie, a project of which he inherited from his predecessor; but this attempt only led to significant losses for the treasury. Later, Reitern resorted to the same forms of support for bill rates, but this only fueled the stock exchange game.

Having put on the agenda the issue of abolishing the poll tax, with the distribution of its burden among all classes, and transferring the method of resolving this issue to the discussion of zemstvo assemblies (1871), Reutern nevertheless increased the poll tax from rural inhabitants twice: in 1862 by 25%, in 1867 for 50 kopecks. The poll tax from the townspeople was replaced in 1863 by a tax on real estate in urban settlements.

In the same year, a new regulation was issued on duties for the right of trade and crafts, which significantly taxed small trade; in 1868, this provision was extended to the Kingdom of Poland, and in 1870 and 1873, the taxation of trade and crafts was generally strengthened. Under Reitern, tax farming was abolished and an excise system was introduced, which was a foregone conclusion under his predecessor. The initially established excise tax of 4 kopecks per degree turned out to be low, drunkenness increased greatly; Therefore, already in 1864, the excise tax on alcohol was increased to 5 kopecks, the excise-free smoke break was reduced, and the excise tax on beer was eased. In 1870, the excise tax on alcohol was increased by 1 kopeck with a new restriction on smoking breaks, and in 1873 - by another 1 kopeck in Russia and by 1 1/2 kopecks in the Kingdom of Poland; the patent fee, increased in 1871, was doubled two years later. The tobacco tax was increased significantly by the new tobacco statute of 1872. The sugar excise tax was reformed in 1863 and then increased in 1867 to 50 kopecks per pood, and in 1870 increased to 70 kopecks. In 1872, an excise tax on kerosene was introduced, but on such irrational principles that after 5 years it was canceled. In 1862, the salt regalia was replaced by an excise tax, which increased treasury income, but salt everywhere became more expensive. In 1864, stamp duty was changed, and in 1874 a new stamp statute was issued, which imposed taxes on many documents that had not previously been paid. By decree of December 10, 1874, the state zemstvo tax was merged with total income State Treasury. The production tax for ranks was replaced in 1873 by a deduction for increasing the salaries of officials.

Finance during the Russo-Turkish War

When in 1876 political confusion became threatening, Reitern presented the sovereign with a detailed note in which he argued that Russia would immediately and permanently lose all the results it had achieved thanks to 20 years of reforms from the war. When the war with Turkey was decided, he asked for his dismissal from the management of the Ministry of Finance and remained in his post only out of feeling civic duty. Over 888 million rubles were needed for military expenses from 1876 to 1878. This amount could only be covered by loans and the issuance of credit notes. The latter were issued for 300 million rubles, although Reitern, presenting to the financial committee about the inevitability of issuing banknotes, himself emphasized its harmful consequences. Reitern rejected projects to introduce new taxes, limiting himself to an order to levy customs duties in gold, which at the then exchange rate was tantamount to increasing them by 25 - 30%. Great and unexpected support was provided to Russian finance by the favorable trade balance that developed in 1877. Thanks to the huge supply of grain, due to crop failure in Western Europe, there was an opportunity to buy urgent bills for 161,200,000 rubles; From this source specie was purchased for the active armies. As soon as the final peace was concluded in Berlin, Reitern, in July 1878, received, according to his request, dismissal from the post of Minister of Finance.

A significant role in reforming the overall financial system in the second half of the 19th century. played by Mikhail Khristoforovich Reitern (1820-1890), appointed in 1862. Minister of Finance and worked in this post until 1879. He owns the famous expression: “Banks do not create capital. They can only serve as intermediaries between persons saving capital and those who wish to borrow the savings of others.”

The most important aspect of his activity was the reform of savings in Russia (1862). Back on November 12 (October 30), 1841. Nicholas I signed a decree establishing savings banks in Russia. The first of them began to operate at the Moscow and St. Petersburg savings banks. M.X. Reitern, in accordance with the emperor's decree, turned savings banks into the most important element of state credit. A new charter for savings banks was issued, and in 1865. savings and loan partnerships were formed and began to function. They were administered by the State Bank, which strengthened its status. Reforms and reformers. Merezhkovsky D.S. - Bustard, 2007 pp. 25-27

Based on the approximate charter, everyone joining the partnership should have had at least one share in the amount of about 50 rubles. The loan to the shareholder was provided in an amount not exceeding one and a half times the size of his shares. It can be concluded that only the wealthiest peasants and artisans engaged in business could become shareholders. For 10 years, from 1865 to 1875, 729 partnerships were formed in the country with a number of 183 thousand. people, the share capital of these associations amounted to almost 5 million rubles, the deposits of the population reached 3.1 million; loans 3.4 million; loans 11.2 million rubles.

Savings and loan partnerships under M.X. Reuters have not become an important element of Russia's market infrastructure. By uniting representatives of the country's middle strata, they promoted the use of their capital, knowledge and energy for the development of entrepreneurship.

M.X. Reitern took a number of measures to streamline the budget of the Russian Empire, stabilize the ruble exchange rate and increase the exchange fund. He pursued a policy of state encouragement of activities in the 1860s and 1870s. an extensive network of commercial banks, including the First Joint-Stock Commercial Bank in St. Petersburg, their functioning became a factor in the development of domestic credit and the formation market economy free competition.

Long before its formation in the 1880s. The Noble and Peasant Land State Banks (as branches of the State Bank of Russia) commercial banks have accumulated experience in working with mortgages. In 1860 - early 1880s. 11 joint-stock land banks appeared. The volume of mortgage land loans issued by them for 10 years from 1867 to 1877 increased more than 4 times - from 99.6 to 415 million rubles.

With the assistance of M.X. The Reuter government encouraged the establishment of private banks, and for this purpose exempted them from all taxes except guild duties.

The spontaneous growth of banks led to fierce competition for customers and depositors with mutual credit societies. The government law of 1872 tightened the conditions for their establishment, including determining that the contributed share capital must be at least 500 thousand rubles.

After the establishment of the 49th bank (1873), their number did not increase for a long time. The collapse of some of them coincided with stagnation in industry and trade; moreover, their work experience was still insufficient.

SIBAI INSTITUTE (BRANCH)

STATE EDUCATIONAL INSTITUTION

HIGHER PROFESSIONAL EDUCATION

"BASHKIR STATE UNIVERSITY"

Report on the topic: “M. H. Reitern.”

Discipline: “History of Finance of Russia.”

Completed by: students gr.1.3

Bayramgulov A. and Sadykov R.

Checked by: senior teacher

Department of Accounting Nasyrov G.M.

Count Mikhail Khristoforovich Reitern - Secretary of State, Acting Privy Councilor, member of the State Council, Minister of Finance, Chairman of the Committee of Ministers. Born on September 12, 1820 in Porechye, Smolensk province. The ancient noble family of von Reitern, from Livonia, dates back to Johann Reitern, who moved from Lübeck to Riga in the 17th century and received noble dignity from the Swedish king Charles XI; the closest descendants of Johann von Reitern occupied honorary positions in Riga, and some of them were in the service of the German states; Thus, Mikhail Khristoforovich’s grandfather was a Saxon chamberlain. The wonderful family to which Mikhail Khristoforovich belonged served Russia faithfully, both on the battlefield and in the peaceful field. social activities. Reitern's father, Christopher Romanovich, a military officer, served in the Russian army, was the commander of cavalry troops in Southern Russia, participated in Patriotic War and died in 1833 with the rank of lieutenant general; mother - Ekaterina Ivanovna, nee von Gelfreich, remained a widow with 14 children with the most limited means, at a time when Mikhail was 13 years old; she was an educated, intelligent woman of extraordinary kindness and willpower; Reitern owed much of the development of his abilities both to her leadership and to the influence of the enlightened environment in which he grew up.

R. received his initial, careful education at home, then prepared at the boarding school in Verro and entered the Imperial Tsarskoye Selo (now Alexander) Lyceum, where he adopted many of the noble, truly humane ideas of the Pushkin era; He completed his education here at the age of 19, awarded a silver medal for excellent achievements, with the rank of IX class, belonging to the X Lyceum course, and graduating in 1839

On February 5, 1840, Reitern decided to serve in the Ministry of Finance, in the Special Office for Credit; Having passed through this Office the positions of junior and senior assistant clerk, Reitern in 1843 moved to the Department of the Ministry of Justice as an official of special assignments, and the following year received the position of clerk. In 1854 he moved to the Naval Ministry, where he joined a circle of people grouped around Grand Duke Konstantin Nikolaevich and worked on the organization of the emeritus cash desk of the maritime department. In 1858, Reitern was promoted to Secretary of State and appointed manager of the railway committee; in 1860 he took the position of head of the financial committee and became a member of the editorial commissions for the emancipation of the peasants.

Minister of Finance

On January 23, 1862, he was entrusted with the management of the Ministry of Finance. The situation of Russian finances at this time was very unfavorable. Each year concluded with a deficit; debts, both interest-bearing and non-interest-bearing, were constantly increasing, covering the lack of funds for current expenses. Increased costs were also expected in the future; the reforms on the agenda required money. Reitern achieved streamlining of expenses by introducing into financial management the same principles of transparency, legality, and the greatest possible control of administrative actions that were generally carried out during the era of reforms. In the very first year of his administration, he began to publish state paintings, which until then were considered almost a state secret. In the same year, new rules were developed on the preparation, approval and execution of financial estimates of ministries; At the same time, the so-called unity of the cash register was introduced. With great energy, Reitern strove to reduce supernumerary allocations, which under him decreased from 35 to 15 and even to 9 million rubles. Since 1872, he began to reduce expenses with a small surplus of income over expenses, almost without resorting to state credit benefits for budgetary purposes. If the public debt under Reitern increased more than under any of his predecessors, and the government for the first time turned to concluding internal loans, this was mainly due to the movement of the redemption operation and the growth of productive costs.

Industrial policy

Reitern saw the best way to increase government revenues in the development of the country's productive forces. There were two main obstacles to this: enormous distances and the lack of private credit. Under Reitern, a railway network with a length of more than 20,000 kilometers was built, which gave a great impetus to the grain supply and expanded the sale of manufactured goods. R. was not a supporter of state-owned farming; he opposed the construction of new roads with funds from the treasury, and state roads, already built, began to pass into private hands under him (Odessa, Kiev-Brest, Moscow-Kursk roads). The construction of railways at the expense of the treasury was hampered at that time by the state of the state loan: in the 1860s, our 5% loans dropped to 60.6%. Even the winning loan of 1864 was not all covered by subscription, so the state bank had to accept part of it.

On the other hand, private companies have not been able to realize capital by placing shares for a long time. Given this state of affairs, Rreutern in 1865 decided to accept the project of P. G. von Derwis and A. I. Kolemin, who proposed building roads using government-guaranteed bonds, previously issued shares and placed mainly in Germany. The continuous issuance of bonds was, however, a financial inconvenience, damaging our credit. Therefore, since 1870, Reitern did not allow the placement of bonds of individual companies abroad, but bought them from companies, issuing consolidated bonds in return at a more favorable rate. Before Reitern, Russia knew private credit only in the form of moneylenders and discounters. Back in 1864, the first private commercial bank established in St. Petersburg asked the treasury for millions of interest-free loans, to such an extent this business seemed risky and unusual for Russia. As a result of the systematic support that Reutern provided for the organization of private credit, in a short time an entire system of private commercial banks was created, private land banks arose, city public banks received a new life, and savings and loan partnerships began to emerge

Taxes

In the same year, a new regulation was issued on duties for the right of trade and crafts, which significantly taxed small trade; in 1868, this provision was extended to the Kingdom of Poland, and in 1870 and 1873, the taxation of trade and crafts was generally strengthened. Under Reitern, tax farming was abolished and an excise system was introduced, which was a foregone conclusion under his predecessor. The initially established excise tax of 4 kopecks per degree turned out to be low, drunkenness increased greatly; Therefore, already in 1864, the excise tax on alcohol was increased to 5 kopecks, the excise-free smoke break was reduced, and the excise tax on beer was eased. In 1870, the excise tax on alcohol was increased by 1 kopeck with a new restriction on smoking breaks, and in 1873 - by another 1 kopeck in Russia and by 1 1/2 kopecks in the Kingdom of Poland; the patent fee, increased in 1871, was doubled two years later. The tobacco tax was increased significantly by the new tobacco statute of 1872. The sugar excise tax was reformed in 1863 and then increased in 1867 to 50 kopecks per pood, and in 1870 increased to 70 kopecks. In 1872, an excise tax on kerosene was introduced, but on such irrational principles that after 5 years it was canceled. In 1862, the salt regalia was replaced by an excise tax, which increased treasury income, but salt everywhere became more expensive. In 1864, the stamp duty was changed, and in 1874 a new stamp statute was issued, which imposed taxes on many documents that had not previously been paid. By decree of December 10, 1874, the state zemstvo tax was merged with the general revenues of the state treasury. The production tax for ranks was replaced in 1873 by a deduction for increasing the salaries of officials.

Finance during the Russo-Turkish War

When in 1876 political confusion became threatening, Reitern presented the sovereign with a detailed note in which he argued that Russia would immediately and permanently lose all the results it had achieved thanks to 20 years of reforms from the war. When the war with Turkey was decided, he asked to be removed from the management of the Ministry of Finance and remained in his post only out of a sense of civic duty. Over 888 million rubles were needed for military expenses from 1876 to 1878. This amount could only be covered by loans and the issuance of credit notes. The latter were issued for 300 million rubles, although Reitern, presenting to the financial committee about the inevitability of issuing banknotes, himself emphasized its harmful consequences. Reitern rejected projects to introduce new taxes, limiting himself to an order to levy customs duties in gold, which at the then exchange rate was tantamount to increasing them by 25 - 30%. Great and unexpected support was provided to Russian finance by the favorable trade balance that developed in 1877. Thanks to the huge supply of grain, due to a bad harvest in Western Europe, it became possible to buy up urgent bills for 161,200,000 rubles; From this source specie was purchased for the active armies. As soon as the final peace was concluded in Berlin, Reitern, in July 1878, received, according to his request, dismissal from the post of Minister of Finance.

Criticism financial measures in newspapers and magazines never caused Reitern to appeal to the punitive or preventive powers of the administration.

In 1880 he became an Honorary Citizen of Kazan. In 1881, Reitern was appointed chairman of the main committee on the structure of the rural state and the committee of ministers. He held the first position until the abolition of the committee (in May 1882), the second until the end of 1886. So, Mikhail Khristoforovich carried out reforms of the financial system, contributed to the expansion of railway construction, the creation of a new credit system, the development of new industries.. Reitern died on August 11, 1890 in Tsarskoe Selo. In the same year, Reitern was elevated to the dignity of count.

Mikhail Khristoforovich Reitern

(1820-1890)

statesman.