The Problem of Internal Circulation of Foreign Coins in Russia in the 1830s

Abstract

The monetary circulation of the Russian Empire in the 1st half of the 19^th century went through several stages: from silver monometallism to the assignation monetary system and back to silver monometallism. The assignation monetary system, established in 1812, represented a unique phenomenon of world monetary circulation. The issue of internal circulation of foreign coins persisted throughout this period. Despite the prohibition of the internal circulation of foreign coins at the inception of the first silver monometallism in 1810, this regulatory decree was not consistently enforced, leading to the illicit circulation and accumulation of foreign coins. The 1830s emerged as a pivotal period during which the challenges associated with internal circulation significantly disrupted monetary turnover. Notwithstanding these obstacles, the financial management, led by Finance Minister E. F. Kankrin, demonstrated reluctance to implement drastic measures. The analysis concludes that the financial management under E. F. Kankrin did not perceive the circulation of foreign coins as a substantial threat to the Russian monetary system and exhibited hesitation in pursuing radical interventions, save for certain individuals aligned with Emperor Nicholas I.