The total amount of money in circulation on July 1st, 1928, was 1,701•1 million roubles, of which, State Bank notes amounted to 1,019.4 million roubles; Treasury Notes 494.0 million roubles, and coins, 187.7 million roubles.
The State Bank with its 622 branches negotiated loans and discounts as follows: (In millions of roubles) All Banks State Bank 1-10-1925 ...... . 2,925.3 1,643.9 1-10-1926 4,066.2 2,071.1 1-10-1927 ..... . . 6,103.3 2,982.2 I- 7-1928 . . . . . . . 7,698.3 3,262.5 On July ist, 1928, the State Bank advanced credits to various enterprises, in the form of loans and discounts, amounting to 3,262.5 million roubles, which represents 42.4% of the total sum advanced in similar transactions by all the banks combined.
In addition to fulfilling the functions of a bank of issue, regu lating the circulation of money, and of the principal short term credit bank, the State Bank at the same time acts as the chief cashier of the Treasury, and all business connected with the State budget, in Moscow and in the provinces, is transacted through it. As a consequence, the State Bank always has available considerable sums standing to the account of the Treasury. These sums of money, its note emissions, the current accounts and deposits of other persons and institutions, and the capital of the Bank, comprise the main liabilities of the State Bank.
On July 1st, 1928 the liabilities of the State Bank were made up as follows: Capital, 365.4 million roubles; bank-notes issued, 1,046.1 million roubles; current accounts and deposits, 1,251.0
million roubles.
A part of the resources thus accumulated, the Bank places to its fund for covering bank-note issues and part is invested in securities. The greater part of these resources, however, is in vested in loans and discounts. The principal clients of the State Bank who apply to it for credits are : the State trusts—in whose hands are concentrated the principal industrial enterprises of the country, such as, the coal mines, oil fields, metallurgical works, sugar, leather and textile mills, etc. ; the syndicates—mainly the trading enterprises, which supply the above mentioned enterprises with raw materials and market their products; the railways; the various types of co-operative unions, and other banks. The financing of foreign trade—both imports and exports—also repre sents an important part of the operations of the State Bank.
The interest charged by the State Bank ranges from 8 to io per cent per annum. Operations are conducted in the usual form of discounting bills ; opening of special current accounts against the security of bills or goods ; granting fixed term loans on goods, and issuing of letters of credit against goods in pledge. A relatively small proportion of the credits are advanced in the form of loans for special purposes, i.e., loans on promissory notes, usually with some additional security.
See S. S. Katzenellenbaum, Russian Currency and Banking, 1914-24 (1925) ; Soviet Union Year Book, 1928, compiled and edited by A. H.
Santalov and L. Segal. (S. S. K.)