Today I would like to show you some more pictures from my stock.
While looking for illustrations, I often come across colorful “War Loan” posters.
State loans in the Russian Empire were not new then (the first ones were under Catherine II). But it was the “War Loan” that was the first attempt to attract funds from the “common” person. This is what explains such broad and colorful advertising of the loan.
The government paid special attention to organizing propaganda among the peasantry. In numerous circulars from various central financial institutions, as well as directly from the Minister of Finance, local authorities called for extensive propaganda work among rural residents. Active assistance was also provided by the Holy Synod, which, with a special order, made it the duty of the rural clergy and teachers of parochial schools to “contribute in every possible way to familiarize the people with the goals, importance and benefit for the population” of subscribing to the issued loan.
But attempts to attract the broad masses of the peasantry to them and to mobilize the huge monetary savings of the villages, which were deposited in the “pods”, ended in failure. Despite all the efforts of the authorities, subscriptions managed to cover only a few percent of the country's peasant population.
The practical failure to attract money from peasants and workers, however, did not prevent the collection of huge funds. Financial structures and large capital, attracted by favorable loan repayment terms and confident in the inviolability of the ruble, invested heavily. Loans from 1914-1916 gave the state seven billion rubles - a huge amount at that time. For orientation about the order of this figure, it can be mentioned that the total (external and internal) government debt of Russia increased from 6 billion rubles in 1902 to 9 billion in 1909 - due to the costly war with Japan, and long-term loans for construction railways. But later, until the start of the World War, it steadily decreased. In 1913, the public debt was 8 billion rubles with budget expenditures of 3 billion (France, for example, then had a public debt of 12.2 billion with a much smaller budget of 2 billion; Germany had a debt comparable to Russia: 9.5 billion rubles with a budget of 4.5 billion).
It is interesting that the “revolutionaries” also launched a large advertising campaign in the hope of receiving financial help from the “common people.” In the spring of 1917, the “provisional government” issued an internal loan to continue military operations. It was called the “Freedom Loan”, since, in the opinion of the new authorities, it was supposed to go to the defense of their already revolutionary fatherland, to “defend their young freedom.” In the editorial of the newspaper “In the Name of the Future,” one of the authors, Mikhail Chernykh, wrote: “... the matter of defending the homeland, defending freedom must be completed, no matter how difficult it may be and no matter how much it costs us. (Petrograd Soviet) asks to support the loan. (...) Only the “Bolsheviks” speak out against supporting this loan, citing the refusal by the fact that the end of the war, as a result of supporting the loan, will not come closer to the end, but will be further removed. But they are mistaken (...) we need to sacrifice everything now - life, property, and well-being. Support the Freedom Loan everyone!”
But the loan was not popular, the “kulaks” peasants who did not open their money boxes for the tsar, especially did not want to give their money to the noisy “Provisional Government”. The bulk of the bonds remained unsold - beautiful pieces of paper settled as dead weight. They were already used by the Bolsheviks, who also always lacked money. They acted very cleverly: by decree of the Council of People's Commissars of the RSFSR of February 12, 1918, Freedom Loan bonds were equated to ordinary money and put into circulation...
War loan- This debentures, issued by the state to cover the costs of conducting military operations by the armed forces. Typically, these are issued with an open maturity date, which implies that the funds will be returned after the end of the war. It was not uncommon for a country's defeat to lead to the overthrow of the government and the refusal to repay war loans, especially to foreign creditors.
Stock quotes valuable papers of this type usually do not exceed half of their nominal value. This circumstance can be explained quite simply - the country’s possible defeat in a war makes these types of assets quite problematic. Success in military operations is usually accompanied by an increase in quotations. Reports from the fronts are a serious factor determining fluctuations stock markets in the country.
The yield on obligations on military loans, as a rule, does not exceed 3.5% per annum. The distribution of securities of this kind usually occurs on the domestic market or in allied countries. Thus, during the First World War, the Russian Empire took out loans from the Entente states, in particular, the French Republic and Great Britain.
Purpose and types of military loans
The governments of the warring states are experiencing severe shortages Money to cover the costs associated with the country's participation in hostilities. One of the sources of attracting resources is borrowing from the population and business circles within the country and abroad. The list of items on which these funds are spent includes:
- Direct conduct of hostilities, payment monetary allowance soldiers and officers.
- Purchases of weapons, military equipment, equipment, vehicles and much more.
- Financing of defense orders, payment for work on the construction of military infrastructure.
- Payments for military transportation.
Internal military loans are carried out by the governments of countries involved in military conflicts in a wide variety of forms:
- The issuance of Treasury notes, certificates, or notes.
- Issue of war bonds.
The sale of war bonds to the public allows us to solve another important problem for the country's economy. The withdrawal of part of the money supply from circulation before the end of hostilities makes it possible to somewhat reduce inflationary pressure on the national currency. War loans have another important psychological aspect: the citizen purchasing such securities develops a feeling of belonging to a common cause, which serves to unite the nation in the face of danger.
First World War certainly significantly influenced the economic structure and economic
life of the participating states, including Russian Empire. From the first days of this global military confrontation, the tsarist government worked to resolve issues of ways to raise funds for military spending and the future course of state financial policy.
Together with increased taxation and the issue of paper money, one of the main methods of mobilization government revenues became government loans. This is a system of monetary relations arising in connection with the state’s involvement on a voluntary basis for the temporary use of available legal and individuals on terms of repayment and payment. In the Russian Empire, during the First World War, the tsarist government implemented six internal government loans aimed at financing military needs for a total of 8 billion rubles. nominal value. Two of them were 5%, with a subscription price of 94 per 100, for only 1 billion rubles; one - 5.5% at 99 at 100 - per 1 billion rubles. and three - 5.5% at 95 per 100 - for 6 billion rubles. The first two loans were issued for 49 years, the third for 81 years, the fourth, fifth and sixth for 10 years.
The first loan was made in October 1914. It was primarily aimed at attracting funds from joint-stock commercial banks. In general, its implementation can be considered successful - the treasury received 466 million rubles. However, the authorities failed to use this loan to reduce the volume of paper money in circulation.
The increase in war expenses prompted the tsarist government to issue a second war loan in February 1915. Although it was similar in terms of issue volume, interest rate and repayment terms to the previous one, certain difficulties arose with its implementation. Loan coverage began to depend more and more on the results of direct subscription to bonds rather than on the working capital of commercial banks.
The third government loan was issued in April 1915. The issue amount was increased to 1 billion rubles, and the interest rate was increased to 5.5% per annum. Officially, the loan was designed for 81 years, but the government guaranteed the repayment of all bonds declared for payment in May 1921. Thus, they tried to make the loan “attractive” for large entrepreneurs.
A feature of the fourth war loan (October 1915) was to attract wide sections of the population to subscribe to the bonds. For the first time, savings banks and small loan institutions took part in the implementation of the loan. There was also a fairly active propaganda campaign. Despite these measures, the government failed to achieve its goal. The loan was not fully realized within the established time frame.
Issue of the fifth loan for 2 billion rubles. in February 1916, which received the semi-official name “Victory Loan”, was preceded by a massive campaign to popularize it among the population, especially among the peasantry. The Holy Synod and the liberal intelligentsia actively participated in propaganda and agitation.
The last loan to the tsarist government of the Russian Empire was 3 billion rubles. was implemented in October 1916. It became the most widespread during the entire period of the war. Only through savings banks 358 thousand people subscribed to the bonds. However, despite the expansion of the social circle of signatories, the share of large entrepreneurs in it has decreased. As a result, actual loan proceeds were significantly less than expected. In addition, the implementation of loans in 1916 was constantly influenced by the deteriorating economic situation in the country. All this led to the fact that in February 1917 the capacity money market in relation to government loans was completely exhausted.
The terms of all war loans were virtually the same, with the exception of interest rate, par value of bonds and their maturity. Thus, bonds were issued to bearer and registered. The rules for the transfer of the latter from one person to another, as well as the exchange for bearer and vice versa, were determined by the Minister of Finance. Profits from the loan were forever exempt from taxation. Payment of interest on bonds is provided twice a year. Bondholders are given the right to use these securities as collateral to fulfill government contracts and supplies and ensure excise and customs payments. In terms of loan repayment periods, there is a tendency to move from long-term to short-term (10 years). In addition, when issuing the first three loans, the government provided for the right to conversion, that is, a change in the initial conditions of the government loan.
All loans were sold through public subscription to bonds in the offices and branches of the State Bank, the Treasury and other credit institutions designated by the Ministry of Finance. In particular, starting from the fourth loan, savings banks, city public banks, mutual credit societies, and other small credit institutions joined this process.
The list of commercial banks and private banking institutions that had the right to place bonds, actually during 1914-1916. Remained constant. It included from 24 to 30 banks and 5-7 banking offices. Among them there were only three institutions founded in Ukrainian provinces - the Kiev private commercial bank (loans 1914-1916), the Odessa accounting bank and the banking office "M. Ashkenazi" in Odessa (loan 1916).
In general, despite the fact that in fact the tsarist government received only 7,529 million rubles from military internal loans, the rest were beneficial to it. Firstly, they reduced the negative consequences of the issue of credit notes and to a certain extent contributed to the stabilization of the money market, and secondly, they were a source of cash.
Loans issued by the government during the war to finance military needs During the Second World War, the following seven Loans were issued in the United States. and Victory loan:1. The first military loan. Issued on November 30, 1942 for the amount of $2,831 million. in the form of 2.5 percent Treasury bonds maturing 1963-1968; $3062 million in the form of 1.75 percent Treasury notes due June 15, 1948; $3800 million in the form of 0.875 percent Treasury Debt Certificates.2. Second war loan. Issued on March 12, 1943 for the amount of $3,762 million. in the form of 2.5 percent Treasury bonds maturing 1964-1969; $4939 million in the form of 2 percent Treasury bonds maturing 1950-1952; $5251 million in the form of 0.875 percent Treasury Debt Certificates.3. Third war loan. Issued on August 16, 1943 for the amount of $3,779 million. in the form of 2.5 percent Treasury bonds maturing 1964-1969; $5257 million in the form of 2 percent Treasury bonds maturing 1951-1953; 4122 million dollars in the form of 0.875 percent Treasury Debt Certificates.4. Fourth war loan. Issued on November 22, 1943 for the amount of $2,212 million. in the form of 2.5 percent Treasury bonds maturing 1965-1970; $3728 million in the form of 2.25 percent Treasury bonds maturing 1956-1959; 5048 million dollars in the form of 0.875 percent Treasury Debt Certificates.5. Fifth war loan. Issued on April 14, 1944 for the amount of $2,909 million. in the form of 2.5 percent Treasury bonds maturing 1965-1970; $5825 million in the form of 2 percent Treasury bonds maturing 1952-1954; 1948 million dollars in the form of 1.25 percent Treasury notes; 4770 million dollars in the form of 0.875 percent Treasury Debt Certificates.6. Sixth war loan. Issued on October 23, 1944 for the amount of $3,448 million. in the form of 2.5 percent Treasury bonds maturing 1966-1971; $7922 million in the form of 2 percent Treasury bonds maturing 1952-1954; 1550 million dollars in the form of 1.25 percent Treasury notes; $4395 million in the form of 0.875 percent Treasury Debt Certificates.7. Seventh war loan. Issued on April 11, 1945 in the amount of $7,967 million. in the form of 2.5 percent Treasury bonds maturing 1967-1972; $5284 million in the form of 2.25 percent Treasury bonds maturing 1959-1962. ; $2635 million in the form of 1.5 percent Treasury bonds due December 15, 1950; $4799 million in the form of 0.875 percent Treasury Debt Certificates.8. Victory Loan. Issued on September 12, 1945 for the amount of $11,689 million. in the form of 2.5 percent Treasury bonds maturing 1963-1968; $3062 million in the form of 1.75 percent Treasury notes due June 15, 1948; $3800 million in the form of 0.875 percent Treasury Debt Certificates.2. Second war loan. Issued on March 12, 1943 for the amount of $3,762 million. in the form of 2.5 percent Treasury bonds maturing 1964-1969; $4939 million in the form of 2 percent Treasury bonds maturing 1950-1952; $5251 million in the form of 0.875 percent Treasury Debt Certificates.3. Third war loan. Issued on August 16, 1943 for the amount of $3,779 million. in the form of 2.5 percent Treasury bonds maturing 1964-1969; $5257 million in the form of 2 percent Treasury bonds maturing 1951-1953; 4122 million dollars in the form of 0.875 percent Treasury Debt Certificates.4. Fourth war loan. Issued on November 22, 1943 for the amount of $2,212 million. in the form of 2.5 percent Treasury bonds maturing 1965-1970; $3728 million in the form of 2.25 percent Treasury bonds maturing 1956-1959; 5048 million dollars in the form of 0.875 percent Treasury Debt Certificates.5. Fifth war loan. Issued on April 14, 1944 for the amount of $2,909 million. in the form of 2.5 percent Treasury bonds maturing 1965-1970; $5825 million in the form of 2 percent Treasury bonds maturing 1952-1954; 1948 million dollars in the form of 1.25 percent Treasury notes; 4770 million dollars in the form of 0.875 percent Treasury Debt Certificates.6. Sixth war loan. Issued on October 23, 1944 for the amount of $3,448 million. in the form of 2.5 percent Treasury bonds maturing 1966-1971; $7922 million in the form of 2 percent Treasury bonds maturing 1952-1954; 1550 million dollars in the form of 1.25 percent Treasury notes; $4395 million in the form of 0.875 percent Treasury Debt Certificates.7. Seventh war loan. Issued on April 11, 1945 in the amount of $7,967 million. in the form of 2.5 percent Treasury bonds maturing 1967-1972; $5284 million in the form of 2.25 percent Treasury bonds maturing 1959-1962. ; $2635 million in the form of 1.5 percent Treasury bonds due December 15, 1950; $4799 million in the form of 0.875 percent Treasury Debt Certificates.8. Victory Loan. Issued on September 12, 1945 for the amount of $11,689 million. in the form of 2.5 percent Treasury bonds maturing 1967-1972; $3470 million in the form of 2.25 percent Treasury bonds maturing 1959-1962; $3768 million in the form of 0.875 percent Treasury debt certificates. In addition to these issues on the securities market, the Treasury organized large issues of UNITED STATES SAVINGS BONDS since 1935, which were widely used simultaneously with the issues of V.Z. for placement among individuals or directly for payment of part of wages. See. US GOVERNMENT SECURITIES. GOVERNMENT LOAN. Obligations issued by a sovereign entity such as federal government, state, province, subdivision thereof or municipality, to meet public needs and improve the welfare of the community. G.z. They can be either temporary or short-term, intended to cover a temporary budget deficit or unexpected lack of revenue, or permanent or long-term, associated with financing long-term expenses to improve the level of public welfare or ensuring current profitability at the expense of the present value of future tax revenues. G.z. reflect the state credit, which usually involves Better conditions providing money funds compared to lending to private borrowers, so the cost of a risk-free loan is closest to the cost of short-term and long-term G.Z.
December 8th, 2017
By decree of the Council of People's Commissars of the USSR, a new loan was issued - the State Military Loan of 1942. The value of this loan is extremely great. He serves noblest goal- the defeat of German fascism, the liberation of millions of Soviet people groaning under the yoke of the Nazi occupiers. It is called upon to further increase the power of our state and the combat strength of our troops.
The State War Loan of 1942 is issued in the days when our Motherland is fighting tooth and nail against the fierce enemy - the Nazi invaders. The mad onslaught of Hitler's hordes crashed against the valor and strength of the Red Army. Our troops thwarted the enemy's plans, defeated the Germans, wrested the initiative from their hands and drove them back to the west. However, the enemy has not yet been defeated, much less finished off. He still has significant military equipment and will strain his last strength to achieve success, trying to inflict counterattacks on us and go on a counteroffensive.
Friendly subscription to a new loan
The announcement of the release of a new loan at the Moscow Red Banner Infantry School named after the Supreme Soviet of the RSFSR was greeted with extraordinary enthusiasm. As soon as the decree of the Soviet government was announced on the radio, rallies were held in the school’s companies. Future commanders understand that the country needs to mobilize all resources for.
Speaking at the rally, cadet Sergeant Major Orlov said:
Our rubles, loaned to the state, are new tanks, planes, guns and other weapons for the Red Army. The War Loan is another blow to German fascism. Unanimous subscription will once again demonstrate the unity of the Soviet people and their determination to achieve victory!
Immediately after the rallies, subscriptions began in the units. Its registration in the battalion, commanded by Captain Satepko, was quickly completed. The commanding staff of this battalion lent 117 percent of their monthly allowance to the state, and the cadets - 385 percent. Many commanders and cadets immediately contribute cash. For example, the unit of Senior Lieutenant Sokolov received 2,500 rubles.
By the end of the day, the entire staff at the school named after the Supreme Soviet of the RSFSR had already signed up for a new loan. Cadets and commanders signed up for an amount significantly exceeding their monthly salary.
More than 20 thousand rubles deposited in cash
WESTERN FRONT, April 13. (By phone from our special correspondent.) Today in the squadrons of the fighter regiment, where the commissar comrade. Marenkov, - crowded rallies in connection with the issue of the loan.
Pilot Lieutenant Danilov stated:
The State War Loan of 1942 meets the vital interests of the Soviet people. I subscribed for 1200 rubles and paid it in cash.
Many pilots, technicians and mechanics signed up for amounts exceeding a month's salary and contributed cash. Among them, junior military technician Botnev, with a salary of 650 rubles, signed up for 1,200 rubles. Lieutenant Suprun, receiving 1100 rubles, subscribed for 1500 rubles and deposited this amount in cash. Captain Primuk contributed 2,200 in cash upon subscription.
The regiment's subscription ended on the first day. It covers the entire private and command staff. When subscribing, more than 20 thousand rubles were paid in cash.
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* ("Red Star", USSR)
* ("Red Star", USSR)*
* ("Red Star", USSR)**
* ("Red Star", USSR)
* ("Red Star", USSR)
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