Currency reform in the USSR (1947). Currency reforms in the USSR Monetary reform of Stalin 1947
The monetary reform of 1947, carried out in the USSR, was a tough measure to restore the country's economy after World War II. Many states experienced such reforms in the post-war years. The main reason for this was the huge amounts of money released to cover military expenses.
Consequences of the war
Second world war caused colossal damage to both the USSR and many other participating countries. In addition to the enormous human losses, damage was caused to the state as a whole.
During the war, about 32,000 industrial enterprises were destroyed, almost one hundred thousand rural farms, more than 4,000 railway stations and 60,000 tracks. Hospitals and libraries, theaters and museums, schools and universities were destroyed.
The country's infrastructure was almost completely destroyed, millions of Soviet citizens were left homeless, more than 30% of the national wealth was destroyed, and food supplies were practically used up. The country was physically and morally exhausted.
Reasons for reform
The restoration of the country, which fell into decline after the war, required significant changes in many areas of life. One of these transformations was the monetary reform carried out in the USSR in 1947. There were many reasons for the reform:
- During wartime, a large number of banknotes were issued. This was due to huge expenditures on military needs. As a result, at the end of the war there was four times more money in circulation than before it. In the post-war period, such a quantity was not required and threatened to depreciate the ruble.
- There was a sufficient amount in circulation counterfeit bills, which were produced by the Nazis. These bills should have been withdrawn during the currency reform of 1947.
- In the USSR, cards were introduced aimed at combating food. With the help of cards, most food and non-food products were distributed among the population. The abolition of the coupon system made it possible to establish fixed prices for consumer goods.
- The number of speculators who made their fortunes during the war increased significantly. The establishment of fixed prices was also aimed at combating the speculative element.
Goals of the 1947 currency reform
The resolution “On carrying out monetary reform and the abolition of cards for food and industrial goods” was the basis for the start of reforms. The main goal of the monetary reform of 1947 was to eliminate the consequences of the last war. It should be noted that similar reforms were carried out in most countries participating in the war.
The goal of the reform was to quickly remove old-style banknotes, excessively issued during the war, from circulation and exchange them for new ones. According to the terms of the monetary reform of 1947, rubles replaced chervonets.
The provisions described in the resolution also stipulated the procedure for canceling cards. Having a coupon for a product gave citizens the right to purchase a particular product. The number of coupons was limited, so not everyone could afford to purchase the desired product. This gave impetus to the spread of speculation. People who did not have a card for the desired product could buy it from speculators at a higher price. The monetary reform of 1947 established uniform fixed prices for all groups of goods.
How the reform took place
Planning for the reform began a year earlier. However, due to the post-war famine it had to be postponed. The start of the events was scheduled for December 16. It was necessary to complete the reform as soon as possible; the completion date was set in two weeks, on December 29.
Denomination was chosen as the form of transformation. Briefly described, the monetary reform of 1947 boiled down to changing the value of banknotes. The percentage of denomination was 10:1, that is, ten old chervonets were equal to one new ruble. However, the pricing procedure, various payments and wages during recalculation did not change, despite the price reduction. In this regard, many historians do not consider this reform a denomination, agreeing that it was of a confiscatory nature.
On December 11, the departments of the country's Ministry of Internal Affairs received packages, which were to be opened on the 14th of the same month by the heads of savings banks and other departments of the financial structure. These packages outlined the essence of the monetary reform of 1947, and also contained detailed instructions on exchange financial resources population. The instructions concerned cash, as well as deposits and bonds.
Money exchange
The confiscation nature of the currency reform of 1947 was confirmed by one of the points of the resolution. This clause stated that the exchange of population should be carried out in such a way as not only to remove surpluses from circulation cash, but also to eliminate the savings of speculators. However, savings were available not only from individuals who acquired their wealth dishonestly during the war years, but also from citizens who had been accumulating their savings for many years. The same can be said about those regions of the USSR that were not affected by the war, where favorable conditions for trade remained. But this “nuance” was wisely kept silent.
Paper cash was exchanged at the cash desks of the State Bank of the USSR at a rate of ten to one; for deposits the exchange rate was different. It should be noted that penny coins were not exchanged and remained in circulation.
Cancellation of cards
The card system existed in the USSR since the creation of the state. It was canceled and resumed several times. The card system existed in the country from 1917 to 1921, from 1931 to 1935. The next introduction of coupons for goods occurred during the war years. It should be noted that at that time many states that took part in hostilities switched to the card system. The abolition of cards was part of the monetary reform measures of 1947 in the USSR. But first it was necessary to regulate the pricing policy. At the time of the reform, market prices differed significantly from ration prices and were approximately ten times higher. The reform decree described new order formation of prices that were supposed to reduce the difference between the market and ration prices of goods. It was decided to reduce prices for bread, cereals, pasta and beer by 10-12% compared to ration prices, and prices for fruits, milk, eggs, tea, fabrics and clothing had to be increased. The retail price of meat, fish products, confectionery, vegetables, tobacco products, and vodka remained at the level of existing ration prices.
Bonds
The monetary reform in the USSR in 1947 also affected the bonds that were in circulation at that time. A bond is a loan guarantor that ensures the owner receives the debt from the borrower within a specified period. Borrower or issuer in in this case the state acts.
During the period of the USSR's participation in hostilities, when government spending on military needs increased sharply, State War Bonds were issued total amount 81 billion rubles. The amount of all domestic loans was about 50 billion rubles. Thus, by the time of the monetary reform in 1947, the state owed the population more than 130 billion rubles.
The bonds were also subject to exchange. Conversion measures consisted of exchanging old interest-bearing loans for new ones at a rate of three to one, winning bonds - at a rate of five to one. That is one new ruble in bonds was equal to three or five old rubles, respectively. As a result of this exchange, the state's internal debt to the population was reduced by an average of four times.
Deposits
The exchange rate of household savings varied depending on the amount of savings. If the deposit amount did not reach three thousand, the exchange was made on a one-to-one basis. Deposits from three to ten thousand are three to two. If the deposit amount exceeded 10,000 rubles, then 3 old rubles were equal to one new one.
That is, the larger the savings amount, the more the investor lost. In this regard, when rumors about the upcoming reform became more obvious, kilometer-long queues lined up at the savings banks. People who had large deposits sought to withdraw money. They split their large deposits into smaller ones, transferring them to third parties.
The last victim
Talk about the upcoming reform spread quite quickly among the population. Information about the denomination and confiscation of funds caused a real stir. People bought absolutely everything from stores in order to at least partially invest money that would soon become “candy wrappers.” At this time, even those goods that had been collecting dust on the shelves for years were sold. The same thing happened in savings banks. Citizens also sought to make various payments in advance, such as utility bills.
As J.V. Stalin said, to restore the state, the “last sacrifice” was required. Moreover, the state promised to bear the bulk of the costs. However, the reality turned out differently. The heaviest blow was dealt to rural residents, the most vulnerable segment of the population. The monetary reform of 1947 had to be carried out in an incredibly short time frame. If for remote, sparsely populated areas this period was two weeks, then residents of the central regions had to have time to exchange money in a week. And while city residents had the opportunity to make an expensive purchase or open a deposit, many village residents simply did not have time to get to the nearest savings bank. In addition, some citizens did not dare to show their real savings, fearing unnecessary questions and persecution. In principle, the government was counting on this. Of the 74 billion rubles in circulation, more than a quarter, over 25 billion, were not presented for exchange.
Consequences of the reform
As a result of the monetary reform of 1947, it was possible to avoid the depreciation of the ruble, and the excess banknotes issued during the war years were eliminated. Thanks to the recalculation, the costs of which were shouldered by the population, the State Bank managed to collect a considerable amount. This money was used to restore the post-war country. The abolition of cards ensured a reduction in market prices for many groups of goods and significantly reduced the number of speculators.
It is generally accepted that the reform, like many other Stalinist introductions, was coercive and harsh in nature. However, it is worth recognizing that these measures were forced and necessary to restore the Soviet economy.
Simultaneously with the monetary reform, the card system for supplying food and industrial goods was abolished. During the reform, cash exchange was carried out within one week, in remote areas of the Far North - within two weeks.
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According to the People's Commissar of Finance of the USSR Arseny Zverev, the question of carrying out monetary reform first arose during the Great Patriotic War. At first, monetary reform was planned for 1946. However, due to famine caused by crop failure and drought in a number of regions of the USSR, it had to be postponed. Finally, on December 13, 1947, the Politburo of the Central Committee of the All-Union Communist Party of Bolsheviks adopted a decision “On the abolition card system and monetary reform."
Rumors about the upcoming reform have been circulating for a long time. They especially intensified in the late autumn of 1947. Since it was not possible to keep the government’s plans secret from the population, queues began to form at the savings banks of those wishing to deposit money into the savings book. On December 2, the Ministry of Internal Affairs noted “cases when depositors withdraw large deposits (30-50 thousand rubles and more), and then invest the same money in smaller deposits in other savings banks for different persons.” Trying to save their cash, people rushed to buy furniture, musical instruments, hunting rifles, motorcycles, bicycles, gold, jewelry, watches, manufactured goods, long-life food products (chocolate, canned food, smoked sausages, etc.), vodka and other alcoholic drinks . Turnover in restaurants in large cities has increased.
Terms of reform
The conditions for the monetary reform were set out in Resolution of the Council of Ministers of the USSR and the Central Committee of the All-Union Communist Party (Bolsheviks) No. 4004 of December 14, 1947 “On carrying out monetary reform and the abolition of cards for food and industrial goods.” The resolution was signed by the Chairman of the Council of Ministers of the USSR I. Stalin and the Secretary of the Central Committee of the All-Union Communist Party of Bolsheviks A. Zhdanov.
The Resolution established the procedure for exchanging old money for new ones, and also determined the conditions for revaluation cash deposits in savings banks and the State Bank of the USSR. When recalculating wages, money was exchanged in such a way that wages remained unchanged. For deposits in Sberbank, amounts up to 3 thousand rubles were also exchanged one to one, for deposits from 3 to 10 thousand rubles, savings were reduced by one third of the amount, for deposits in the amount of over 10 thousand rubles, half of the amount was withdrawn. Those who kept money at home received one new ruble for ten old ones upon exchange. Preferential conditions revaluations of savings were also established for holders of bonds of government loans: bonds of mass loans were exchanged for bonds of a new loan in the ratio of 3:1, bonds of a freely marketable loan of 1938 - in a ratio of 5:1, and bonds of the 1947 loan were not subject to revaluation.
1. Simultaneously with the implementation of monetary reform, that is, from December 16, 1947, abolish the rationing system for the supply of food and industrial goods, abolish high prices for commercial trade and introduce uniform, reduced state retail prices for food and manufactured goods.
2. When establishing uniform retail state prices for food and industrial goods, proceed from the following:
a) reduce prices for bread and flour by an average of 12% compared to current ration prices;
b) for cereals and pasta, reduce prices by an average of 10% compared to current ration prices;
c) for meat, fish, fats, sugar, confectionery, salt, potatoes and vegetables, keep prices at the level of current ration prices;
d) for milk, eggs, tea, fruits in order to cancel the current high commercial prices and too low ration prices, establish new prices in relation to the level of current ration prices for basic food products;
e) for fabrics, shoes, clothing, knitwear in order to cancel the current high commercial prices and too low prices rationed supply established in cities and workers' settlements, set new prices at a level 3.2 times lower than commercial prices;
g) reduce prices for beer by an average of 10% compared to current prices;
4. When carrying out a monetary reform, the wages of workers and employees, as well as the income of peasants from state procurement and other labor income of all segments of the population will not be affected by the reform and will be paid in new money in the same amounts.
Reform results
As a result of the reform, the consequences of World War II in the area were eliminated money circulation, without which it was impossible to abolish the card system and move to trading at uniform prices.
According to some economists, the cash money supply decreased more than three times, from 43.6 to 14 billion rubles. . According to the State Bank, after the exchange, the population had about 4 billion rubles in their hands. When carrying out the reform, great importance was attached to eliminating the deficit in order to avoid excessive demand for goods and inflation. For a year, the goods were kept so that after the exchange of money they were thrown onto the market. In addition, goods from state reserves worth 1.7 billion rubles were released. They were intended for trade after the abolition of cards and the transition to uniform retail prices in cities (1.1 billion rubles) and in rural areas(RUB 0.6 billion).
The monetary reform in the USSR in 1947 was of a confiscatory nature. This reform is sometimes compared to the depreciation of savings in the early 90s.
After the abolition of cards at the end of 1947, with salaries of the majority of the urban population at 500-1000 rubles, a kilogram of rye bread cost 3 rubles, wheat - 4 rubles 40 kopecks, a kilogram of buckwheat - 12 rubles, sugar - 15 rubles, butter - 64 rubles, sunflower oil - 30 rubles, frozen pike perch - 12 rubles, coffee - 75 rubles; liter of milk - 3-4 rubles; a dozen eggs - 12-16 rubles (depending on the category, of which there were three); a bottle of Zhigulevskoe beer - 7 rubles; half-liter bottle of “Moscow” vodka - 60 rubles.
Currency reform of 1947 in the USSR was carried out from December 16 to December 29, 1947. The second monetary reform in the USSR. Currency reform was carried out in the form of denomination with confiscation. Simultaneously with the monetary reform, the rationing system for the supply of food and industrial goods was abolished and uniform, reduced state retail prices for food and manufactured goods were introduced. During the reform, cash exchange was carried out within one week, in remote areas of the Far North - within two weeks.
Reform goals
The monetary reform in December 1947 was carried out with the aim of removing excess money from circulation and replacing old ones that had been devalued during the Great Patriotic War with new, full-fledged money.
During the Second World War, the country's expenses for maintaining the army and developing the military industry increased sharply, while the production of consumer goods decreased. Enormous military expenditures required the release of large amounts of money into circulation. At the same time, the production of goods intended for sale to the public decreased, and retail trade turnover decreased significantly. The amount of money in circulation in the USSR increased significantly, as in all states that participated in the war (in most countries of the Eastern and Western Europe Monetary reforms were also carried out after the war). In addition, counterfeit money was issued in temporarily occupied Soviet territories. Large reserves of cash have accumulated in the hands of speculators.
The second most important aspect of the reform was propaganda: the abolition of the card system for the population who survived the hardships of the war was supposed to mean the elimination of the rigid distribution of products and demonstrate the strength and endurance of the Soviet economy.
Terms of reform
The conditions for the monetary reform were set out in Resolution of the Council of Ministers of the USSR and the Central Committee of the All-Union Communist Party of Bolsheviks No. 4004 of December 14, 1947, “On carrying out monetary reform and the abolition of cards for food and industrial goods.” The resolution was signed by the Chairman of the Council of Ministers of the USSR I. Stalin and the Secretary of the Central Committee of the All-Union Communist Party of Bolsheviks A. Zhdanov.
The Resolution established the procedure for exchanging old money for new ones, and also determined the conditions for the revaluation of cash deposits in savings banks and the State Bank of the USSR. When recalculating wages, money was exchanged in such a way that wages remained unchanged. For deposits in Sberbank, amounts up to 3 thousand rubles were also exchanged one to one, for deposits from 3 to 10 thousand rubles, savings were reduced by one third of the amount, for deposits in the amount of over 10 thousand rubles, two thirds of the amount were withdrawn. Those who kept money at home received one new ruble for ten old ones upon exchange. Preferential conditions for the revaluation of savings were also established for holders of government loan bonds: bonds of mass loans were exchanged for bonds of a new loan in the ratio of 3:1, bonds of a freely marketable loan of 1938 - in a ratio of 5:1, and bonds of the 1947 loan were not subject to revaluation .
1. Simultaneously with the implementation of monetary reform, that is, from December 16, 1947, abolish the rationing system for the supply of food and industrial goods, abolish high prices for commercial trade and introduce uniform, reduced state retail prices for food and manufactured goods.
2. When establishing uniform retail state prices for food and industrial goods, proceed from the following:
a) reduce prices for bread and flour by an average of 12% compared to current ration prices;
b) for cereals and pasta, reduce prices by an average of 10% compared to current ration prices;
c) for meat, fish, fats, sugar, confectionery, salt, potatoes and vegetables, keep prices at the level of current ration prices;
d) for milk, eggs, tea, fruit, in order to cancel the current high commercial prices and too low ration prices, establish new prices in relation to the level of current ration prices for basic food products;
e) for fabrics, shoes, clothing, knitwear, in order to cancel the current high commercial prices and the too low prices of rationed supplies established in cities and workers' settlements, set new prices at a level 3.2 times lower than commercial prices;
g) reduce prices for beer by an average of 10% compared to current prices;
Reform results
After the abolition of the card system, state retail prices in 1948 were 17% lower than the pre-reform state of prices, and market prices decreased by more than 3 times. The reform significantly strengthened the system state loan, there was a large influx of deposits during the reform period and after its implementation. As a result of the reform, the consequences of the Second World War in the field of monetary circulation were eliminated, without which it was impossible to abolish the card system and move to trading at uniform prices.
According to some economists, cash money supply decreased by more than three times from 43.6 to 14 billion rubles. According to the State Bank, after the exchange, the population had about 4 billion rubles left in their hands. When carrying out the reform, great importance was attached to eliminating the deficit in order to avoid excessive demand for goods and inflation. For a year, the goods were kept so that after the exchange of money they were thrown onto the market. In addition, goods from state reserves worth 1.7 billion rubles were released. They were intended for trade after the abolition of cards and the transition to uniform retail prices in cities (1.1 billion rubles) and in rural areas (0.6 billion rubles).
The monetary reform in the USSR in 1947 was of a confiscatory nature, as well as those carried out almost simultaneously in Western and Eastern Europe monetary reforms, however, in certain aspects its conditions were softer and more lenient in relation to the population than in other countries.
Currency reform of 1947 - reasons, essence, pros and cons.
This reform was the second of its kind carried out in the USSR. It was planned to be held earlier, but post-war conditions did not allow this.
The main provisions of the reform were adopted in December 1947.
Reasons (prerequisites) for the monetary reform of 1947
The need for changes was due to the following reasons:
- In the Union in the first half of the 1940s. it was very difficult financial situation(the money machine worked continuously during the war). During the five years of the war, the money supply increased 4 times. Most of the money was not from the population, but from speculators. It was necessary to look for solutions.
- It was necessary to remove the card system for the distribution of food and goods, which led to an oversupply of banknotes.
- Constantly decreased purchasing power money.
- Rising prices on the market.
- It was necessary to give a worthy response to the Bretton Woods system. Stalin planned to create a “new” type of system.
- During the hostilities there appeared different types prices - commercial, market and rations. All of them did not fit into the collective farm workday system.
The essence and consequences of the monetary reform of 1947
At its core it was confiscation and denomination. Within one to two weeks (depending on the range of the region) state bank Union exchanged ruble bills for new money. They exchanged ten old rubles for one new one.
Bank deposits were exchanged as follows:
- Amounts up to three thousand rubles - one to one
- From three to ten - two new for three old
- More than ten - two old for one new
- Government loans were exchanged for 1948 loans.
- Old securities changed three to one
- Securities 1938 was exchanged for a 1947 loan at a rate of five to one.
Pros and cons of the 1947 currency reform
This reform, like all similar events, had its positive and negative aspects: The reform hit the so-called the hardest. speculators i.e. people who made a fortune during the war.
Issue in mid-December wages started with new bills for the first part of the month, so ordinary workers were not left without money. The exchange of less than three thousand was one to one and suited most of the population because few had more after the war.
- We established uniform prices for retail products throughout the country.
- Prices for flour and pasta products have decreased.
- Since 1949, every spring there has been an annual decline in the prices of general consumer goods.
- Inflationary potential gradually accumulated.
- There was a lack of balance between consumer goods and money.
- The demand for lending increased, which caused the issue.
For ordinary people, it was the joy of canceling cards and the opportunity to purchase goods. As always, the “hucksters” and officials remained in the black.
Results of the monetary reform of 1947
The main results of the reform were the following:
- Created financial system, which did not depend on the dollar exchange rate.
- The so-called "chervontsi".
- The card system has been cancelled.
- The shortage of goods has disappeared.
The main result of the reform was a way out of the post-war financial crisis.
Interesting facts about the 1947 currency reform
There are several points to pay attention to:
- Before the war, about 18 billion rubles were in use in the Union, in 1946 - almost 74 billion rubles.
- During the war, the Germans printed counterfeit rubles, which were gradually withdrawn from the population during the reform process.
- Before the reform, huge queues of those who wanted to deposit money for a book in the bank began to appear.
- There was a massive purchase of consumer goods, gold and other valuables.
The monetary reform of 1947 was carried out in the USSR withthe goal of eliminating the consequences of war in the sphere of monetary circulation.
The purpose of this reform was to strengthen the monetary system based onrefusal of the card systemdistribution of goods among the population,elimination of multiple prices, withdrawal of excess money from circulation.
The successful implementation of monetary reform was facilitated by fast recovery national economy after the war, strengthening state budget(in the post-war years it was reduced without a deficit), the accumulation of sufficient commodity masses as a condition for the abolition of the rationing supply system, the convergence of the level of retail prices based on a decrease in commercial prices and an increase in ration prices carried out at the end of 1946.
Fundamentals of Currency Reform were determined resolution Council of Ministers of the USSR and the Central Committee of the All-Union Communist Party (b) of December 14, 1947 “On carrying out monetary reform and the abolition of cards for food and industrial goods.”
During the reform, banknotes of a new type were issued into circulation, which were exchanged for old ones at a rate of 10: 1, household deposits in savings banks up to 3,000 rubles were not revalued, from 3,000 rubles to 10,000 rubles were revalued at a preferential ratio of 3: 2 , and over 10,000 rubles - 2: 1.
Bonds of previously issued loans were exchanged at a ratio of 3:1, with the exception of bonds of the freely marketable loan of 1938, for which the ratio was set at 5:1.
Currency reform, accompanied by the transition to uniform state prices, created the prerequisites for a systematic reduction in retail prices.
The decline in prices after the monetary reform allowed increase the purchasing power of the ruble and its exchange rate in relation to foreign currency . On March 1, 1950, the ruble exchange rate was transferred to a gold basis, whereas previously it was established indirectly on the basis of foreign currency: until 1937 - on the basis of the French franc, since 1937 - on the basis of the US dollar.
The gold content of the ruble in 1950 was set at 0.222168 g of pure gold, the ruble exchange rate to the US dollar was 4 rubles (instead of the previous rate of 5 rubles 30 kopecks). Accordingly, the exchange rate of the ruble against other foreign currencies was changed.
The monetary reform of 1947 was confiscatory in nature, but funds stored outside were subject to confiscation banking system (mostly speculative). The monetary system itself in the country has not changed, only the names of bank notes have changed, which began to be issued not in chervonets, but in rubles.
In 1961, a denomination was carried out in the country, associated with a change in the price scale by 10 times. The denomination was accompanied by the release new money, significantly smaller in size than old banknotes. The ruble was devalued against gold and the US dollar by 4.6 times.
In 1991 in the USSR were carried out transformation of the monetary system. In order to combat speculation, smuggling of rubles and currency, corruption, production counterfeit money Banknotes of 50 and 100 rubles were withdrawn from circulation. The exchange was limited in terms of the amount of funds and the timing of the transaction. Initially, the exchange period was set at 3 days, but then it was revised twice.
Banknotes in denominations of 50 and 100 rubles. 1961 model were exchanged for 1991 model banknotes. Subject to exchangefunds in the amount of a monthly salary.
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