The reign of Tsar Peter the Great entered the history of Russia as an era of large-scale transformations in all spheres of public life. Their implementation required significant investment. In addition, finances were necessary for the conduct of the Northern War, which began in 1700 and lasted almost 21 years. It was these colossal costs that caused the monetary and tax reform of Peter 1.
The urgent need for change
Having become the sole ruler of Russia in 1689, Peter 1 inherited from his predecessors a financial system that was the result of two monetary reforms in 1679 and 1681. It had significant shortcomings, compounded by the fact that the tax collection system was extremely imperfect, and constant arrears caused a chronic budget deficit.
Among the reasons for the monetary reform of Peter the Great are such important factors as the need to make large purchases abroad, send young people to study there, pay for the labor of foreign specialists, etc. At the same time, coins were constantly depreciating due to frequent financial crises, and making large payments required the attraction of a significant amount of money.
In addition, at the beginning of the reign of Peter 1, retail trade suffered due to the lack of small coins. It got to the point that the pennies in circulation had to be cut into several parts, used as a substitute for money pieces of leather with the stamps applied to them. An additional confusion was created by foreign coins, which also circulated on the territory of Russia. Thus, among the reasons for the monetary reform of Peter the Great, an important place was occupied by the need to unify the financial system.
General distrust of innovations
The exact date of the monetary reform of Peter 1 can hardly be called, since it was carried out in several stages from 1699 to 1718, it was preceded by a rather long preparatory period. The fact is that one of the ways to overcome the existing difficulties was the introduction of a copper coin, which had never been used in Russia before.
This innovation was met with extreme distrust. In order to convince the people of the equal treasury of silver and copper money, since 1701, sheets with a royal decree were hung out on city squares, the text of which was also read in churches at the end of services and in markets with a large number of people gathering.
New types of coins
As a result of the monetary reform of Peter the Great, the silver ruble, weighing 28 grams of pure metal, became the basis of the financial system, which corresponded to the English thaler. In addition, for the needs of retail trade, a copper penny was introduced, which was unusually profitable for the treasury, since the reserves of this metal in Russia were inexhaustible, while silver was imported from abroad.
Another result of the monetary reform of Peter the Great was the reorganization of the Mints, where machine coinage was introduced everywhere. In 1700, the production of copper coins began, which had the form of a regular circle - money (such they bore the name) and half money. Semi-half-shells were also produced, which at face value were less than a penny. However, the so-called silver wire pennies, which had a scaly shape, did not stop minting. Their photo is given in the article.
Additional innovations
The assortment of coins that appeared as a result of the monetary reform of Peter the Great was significantly replenished in 1701, when silver coins came into circulation: half a cent, half a half, dimes and ten money. Three years later, the minting of silver rubles and altyn, as well as large copper kopecks, which had the correct round shape, began, the image on them exactly corresponded to what was applied to the wire made of silver.
It is interesting to note that for a very long time the Mints issued both silver wire kopecks, which were a kind of monument to the pre-Petrine monetary system, and those that appeared as a result of the reform. Only in 1718, on the basis of the tsar's decree, copecks were withdrawn from circulation. They reappeared after 6 years in the form of copper coins.
Introduction of a single coin standard
As noted above, the essence of the monetary reform of Peter 1 was to unify the financial system, which was what he ultimately achieved. So, in the period from 1700 to 1718. Russia has completely switched to the production of coins of the correct round shape. On the obverse (front side) of the largest of them, such as 1 ruble, as well as 50 and 25 kopecks, there was a profile of Peter 1 and an inscription containing his title. On the reverse (reverse side), a double-headed eagle was minted - the state emblem of the Russian Empire, and also the face value of the coin and the date of its manufacture were indicated.
The only exceptions were the ruble coins minted after 1722. Instead of a coat of arms, a monogram was placed on them, consisting of four cross-shaped letters “P”. The people called such coins “crosses”. The tradition of decorating the reverse of silver coins with similar monograms was continued by Tsars Peter 2 and Paul 1.
On the obverse of the silver coins of the Petrine era, which had a smaller denomination, the tsar’s portrait was not minted, but was replaced by the image of a two-headed eagle. On the reverse, Slavic letters indicated the dignity of the coin and the date of its manufacture. After 1718, instead of the coat of arms, on the altins (three-coin coins), the figure of George the Victorious began to be depicted. It is interesting to note that from the time of the monetary reform of Peter the Great to the beginning of the 20th century, the smallest silver coin in Russia was a nickle, since altyn very soon went out of use.
Coin Foot Change
Describing briefly the monetary reform of Peter the Great, which continued, as already mentioned, from 1698 to 1718, it is necessary to dwell on how a very significant indicator, referred to in the numismatics as the “coin foot”, changed. This term refers to the number of coins that can be made from any one strictly defined amount of metal. In particular, when it comes to copper money, then 1 pound of source material is taken as the basis for calculation.
So, at the beginning of the reform, 12.7 rubles were minted from 1 pound of copper. By 1702, this amount increased to 15.5 rubles, two years later it was already equal to 20 rubles, by the end of the period under review it reached 40 rubles. Note that each stage of increasing the monetary foot brought treasury additional profit, since for all these years the cost of copper did not exceed 5 rubles per pound. Thus, the implementation of monetary reform provided the state with additional finances.
Gold coins of the Petrine era
The result of the reform of Peter 1 was the appearance of gold coins. In particular, chervonets were put into circulation, the weight of which was 3.4 grams of precious metal. By this indicator, as well as the breakdown, they fully corresponded to the international monetary unit - ducat. Double gold coins were also minted, the weight and dignity of which were twice as high.
In addition, for the first time, two-ruble coins came into use, each of which was made of 4 grams of gold of the corresponding sample. On the obverse of the gold pieces of gold was minted a portrait of the king, and on the reverse a state emblem. The front side of the two-ruble coins was also decorated with the profile of Peter 1, and on the reverse, unlike other coins, an image of the holy Apostle Andrew the First-Called was placed.
Conclusion
Summing up the monetary reform and economic policy of Peter 1, it should be noted that their result was the creation of the world's first financial system built on a decimal basis, as a result of which 100 kopecks began to make 1 ruble. In addition, an improvement of coinage and bringing them to a single standard should be considered an undoubted advantage of the measures taken.
As for the minuses of the reform, speaking about them, they usually indicate a low quality of the products of the Mints, especially in the initial period, as well as the numerous abuses and theft of funds that accompanied the introduction of copper money into circulation. However, in spite of everything, the reform, which lasted almost two decades, gave Russia the opportunity to create the necessary financial base for the rearmament of the army, the construction of a navy and the solution of many national problems.