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.

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