The gold reserve had been increasing very regularly during the 
fifteen years that preceded the reform: 
January 1: 
Gold Held in Russia 
and Abroad 
(in millions of rubles} 
1883 
1884... 
1885 .... 
1886 .. EN 
1887 ie erste in————————— 
1888 . ees eine 
1889 nn oer Starpoints 
180 oo i eee eee 
1891 ... 
1892 .. 
1893 . 
1894 
1895 
1896 
1897 
264 
298 
303 
367 
382 
390 
430 
470 
576 
642 
852 
895 
912 
964 
1.005 
The reform was successful. It actually did bring gold into cir- 
culation, to an extent sufficient for all needs of domestic commerce. 
A rather difficult trial was brought about by the Japanese War. 
The suspension of specie payments was theén avoided, however, 
thanks to the energy displayed by M. Kokovtzoff, which was criti- 
cized by Paul Leroy-Beaulieu as excessive financial affectation. 
A critical period was that of the domestic troubles of 1905- 
1906. Through the discounting in Paris and in Berlin of 5169, 
Treasury bonds, the 300 million rubles margin of bank-note circula- 
tion was then restored. 
M. Kokovtzoff returned to his post at the head of the Ministry 
of Finance, which he had relinquished when Count Witte became 
President of the Council. During the ten years in the course of 
which he rehabilitated the Russian finances, restored the budgetary 
equilibrium, and did away with all borrowings for the current needs 
of the government, the objects of his policy were twofold, namely, 
first, the constitution of a strong metallic reserve and, second, the 
accumulation of considerable cash balances to provide for such con- 
tingencies as deficient crops or for any unexpected developments. 
These Treasury balances proved very helpful at the outbreak of the 
war with Japan in 1904, and their possession was likewise of advan- 
tage in August 1914, notwithstanding the moratorium. 
i {}