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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