Nikolai Bunge was Minister of Finance from 1881 to 1886. He received this position after the throne was succeeded by Alexander III. Bunge carried out many unpopular reforms, which is why the conservative opposition achieved his resignation. Time has shown that the course chosen by this finance minister was right.
Personality of the Minister
The future Minister of Finance Bunge Nikolai Khristianovich was born on November 23, 1823 in the family of a doctor. He graduated from the Faculty of Law at Kiev University and after that began his teaching career. In his views, Bunge was a liberal Westerner and a classic "statesman."
His beliefs were moderated, which came in very handy in the era of Alexander II. The lawyer believed that the Russian state was not yet ready to adopt a constitution. Nikolai Khristianovich saw the task of his generation as Bunge in gradual step-by-step reforms, the result of which should affect many years later.
Moving to the capital
For about thirty years, the professor taught at Kiev University. He became a rector three times, at the same time as heading a branch of the State Bank. In 1880, Bunge Nikolai Khristianovich forever left Kiev and moved to St. Petersburg. He was in the capital at the request of the government. The authorities urgently needed new ideas in order to reform the state and ease public tension. At this time, the terror of Narodnaya Volya and other radicals reached its peak.
What could offer the state of Bunge Nikolai Khristianovich? For several decades, he was preparing his own program of economic transformation. It was based on a rich theoretical foundation, drawn from the experience of Western countries.
Bunge Ideas
The Bunge program appeared in the era of the Great Reforms, however, by the beginning of the reign of Alexander III, it had survived several editions. After the logical defeat of Russia in the Crimean War, the financier, like other liberals, hoped for the development of a private initiative, which was supposed to make the biggest contribution to the economic development of the country. These aspirations were largely forced. The state that spent huge sums on the war simply did not have the funds to modernize Russia.
The oncoming reforms of Alexander II showed what was wrong Bunge Nikolai Khristianovich. A brief biography of the future minister is similar to the biographies of many of his moderate liberal associates. Economic growth in the 60s. would not have happened without large state subsidies. There was a lack of entrepreneurs in the country. Already in the 70s. reaction began. The state again set about total regulation of the economy. The issuance of railway concessions ceased, the establishment of joint-stock companies was restrained, and high customs barriers were established. Given all these features, Nikolai Khristianovich rewrote his program for Bunge. A brief biography of this man and the evolution of his views are typical of that era.
Minister appointment
On March 1, 1881, terrorists killed Alexander II, after which his son Alexander III came to power . The new sovereign set about personnel rotation in the government. It was then that in 1881, Nikolai Khristianovich Bunge was appointed to the post of Minister of Finance of the Russian Empire. Photo economist appeared in all the capital's newspapers. The public expected action from him.
Over the course of five years, Nikolai Bunge carried out several major transformations as the head of the financial department. The state lowered redemption payments for peasants, rebuilt the tax system, transferring it to a new income base, and abolished the capitation tax. In 1882, the Peasant Bank was established. For several years, the first acts of labor legislation were passed.
Economic transformation
Nikolai Khristianovich Bunge, whose activity was often criticized, initiated reforms that did not immediately bring positive changes to the Russian economy. The budget under this minister remained scarce, the Treasury could not get rid of debts, etc. And, nevertheless, statesman Nikolai Khristianovich Bunge did a lot of useful things for his country. Thanks to his program, the Russian customs service was able to protect domestic producers from foreign competition, which led to a gradual increase in domestic entrepreneurship. Changes in taxation allowed the treasury to accumulate a significant financial base. She later went on to stimulate industrial growth.
Nikolai Khristianovich Bunge was born in the era of a strong ruble, when the national currency was not so connected with the foreign market as at the end of the 19th century. During the tenure of the economist as a minister, the situation radically differed from those previous orders. The government has done a lot to stabilize the ruble and move to the gold currency standard. This reform was completed by Bunge's successor Sergei Witte.
Agricultural policy
What did Nikolai Khristianovich Bunge do for the Russian peasantry? The Minister of Finance strove to develop a market economy in the countryside, which required private peasant land ownership. Bunge believed that state intervention should be minimal and reduced to protecting the interests of the lower classes, who in many respects continued to live in a disempowered position with respect to large and wealthy owners. An economist would be a “popular lover” not only because of his liberal views, but also because of vital pragmatism. The minister’s program was simple - to help the peasantry, so that, having gained strength, it would help the country rise.
What exactly were the measures that Nikolai Khristianovich Bunge took on the agrarian question? Photos of villages without modern equipment and infrastructure forced the minister to undertake serious reforms. He saved the rural population from unnecessary taxes, including the tax on salt. The peasantry suffered from low land and overpopulation of the central provinces. To solve this problem, a program was proposed to relocate villagers to the empty outskirts of the country, the natural conditions of which were perfectly suitable for cultivating the land and growing crops.
Labor law
Relations of the state were difficult not only with the peasants, but also with the workers. After the abolition of serfdom, a powerful stream of proletarians poured into the cities, seeking a better share in factories and other enterprises. Despite this, Russia still has not had a systematic factory legislation.
In 1884, on the initiative of Bunge, the labor of minors in large enterprises was banned. The state has set a lower threshold of 12 years. Adolescents under 15 years of age could work no more than 8 hours a day. In 1885, women's night work fell under the ban. The authorities adopted universal rules governing relations between the employer and the proletarians. These norms allowed to significantly limit arbitrariness and arbitrariness of manufacturers. At the same time, repressions against workers who participated in strikes and strikes intensified. Compliance with the rules was checked by a special state inspection.
Nationalization of Railways
Finance Minister Nikolai Khristianovich Bunge, whose date of birth coincided with the period of the emergence of railways in Russia, was well aware of their importance in the life of the country. During the years of his leadership of the economy of the empire, the full nationalization of this economy began. At the end of the 19th century, railways were also “nationalized” in Belgium, Austria-Hungary, France, Holland, etc. By carrying out this reform, Bunge could be guided by a similar Western experience.
The fight against monopolies
Nationalization was necessary to combat the monopolists who predatoryly used this means of communication. Society unanimously demanded that the authorities put an end to the disorganization of the railways. For this purpose, an interdepartmental commission was created. Ministry of Finance officials played an important role in it. Bunge himself opposed the too hasty transfer of railways to the state. The Minister regularly wrote memoranda in which he explained his view of the problem. These projects went to the very top and were considered by the autocrat.
After the collapse of the concession system, the state returned to the practice of building railways exclusively at public expense. Regarding the already commissioned tracks, Bunge publicly spoke out several times in approximately the same tone. He repeated his arguments shortly before his resignation. The minister believed that Russia could not select railways at a forced pace, as was done, for example, in Germany, due to the fact that there were not enough qualified specialists in the public service.
Activity Summary
Assessing the results of the work of the Minister of Finance, it is important to understand that the Russian statesman Nikolai Khristianovich Bunge faced numerous obstacles in his path. He inherited a heavy legacy from the war with the Ottoman Empire, the industrial crisis, crop failures, stagnation in agriculture, an increase in spending on the fleet and the army.
The conservative opposition has always disliked a minister who wanted to compromise with the liberal part of society. The confrontation continued throughout the stay of Bunge in the chair of the head of the financial department.
Retirement and further career
Opponents of the minister achieved his resignation in 1886. But the emperor understood who Nikolai Khristianovich Bunge was and appreciated his qualities. Therefore, the economist not only fell into disgrace, but also remained in the State Council. Having become the head of the Committee of Ministers, he continued to influence the political course of power, although in a different capacity.
What did Nikolai Khristianovich Bunge achieve? Facts from the life of the official show that he sought to stop the artificial support of the rural community, which was detrimental to individual peasant farms. The economist was a supporter of the resettlement of villagers by the east. A new wave of mass peasant colonization of Siberia occurred after Nikolai Khristianovich Bunge died. The biographical sketch of this man is the story of the career of Stolypin’s predecessor, who began to implement agrarian reform. Nikolai Bunge died on June 15, 1895 in Tsarskoye Selo.