The Gold Reserve of the State Bank 
of the U. S. S. R. 
The State Bank of the U. S. S. R. (originally named the State 
Bank of the R. S. F. S. R.) was established October 12, 1921, after 
the introduction of the New Economic Policy in the Soviet Union. 
Its foundation capital, received from the government, consisted of 
two trillion paper rubles. One of the principal functions assigned 
to the Bank was to accumulate a gold reserve in order to prepare 
for the currency reform which was effected at the end of 1922 by 
the issue of the new banknotes—the Chervonetz. 
In its initial period the State Bank resorted to four principal 
methods of building up a gold reserve. 
(1) With the advent of the New Economic Policy and the 
return of private trade and industry the State Bank entered the 
open market and purchased the old gold coins which had been hoard- 
ed by the population, and the small’ quantities of alloyed gold bul- 
lion which had been obtained by prospectors in the years following 
the revolution. In the same way the State Bank purchased on the 
market foreign currency, principally pounds sterling and American 
dollars. 
(2) The State Bank bought up as much as possible of the gold 
that was being mined since 1921. 
(3) The State Bank financed exports, principally of timber and 
fax, making advances in paper money and receiving in return the 
proceeds of these export operations. This was the main channel for 
building up a gold reserve. 
(4) Foreign currency transferred to friends and relatives if 
the U.S. S. R. from abroad, principally from the United States, was 
deposited to the credit of the State Bank or its correspondent banks 
abroad, and the recipients of the money were paid out in the U.S.S.R. 
in Russian currency at the rate of the day. 
By January 1, 1923, about a month after the issue of the 
Chervonetz, the reserve of the State Bank in precious metals and 
foreign valuta amounted to 27,900,000 rubles. With the stabilization 
of the currency and the improvement in commerce and industry, 
particularly with the increase of exports, the State Bank began 
to make steady progress in accumulating a gold reserve, as may be 
seen from the tables below. 
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