Undoubtedly, Witte was one of the most successful finance ministers in the history of the Russian Empire.A monetary reform Witte contributed to the development of trade and production due to the convergence of banking and industrial capital and the elimination of inflation.However, much more famous reformer brought his first innovations associated with the establishment of a monopoly on the sale of alcoholic beverages in 1894.Since the beginning of 1894 and until 1902, this reform Witte increased revenues by 16 times.
When the Russian government to make sure that happened the tax changes will not only help to cope with the budget deficit, but also help to reduce alcoholism, it was decided to hold the second phase of change, during which indirect taxes on kerosene, tobacco, sugar, and matches were increased1.5.Witte's reforms were not limited to "drinking" of reforms, and included the introduction of an apartment tax, trade tax on profits of enterprises, as well as an increase in the levy on bank deposits.But the most important achievement of the Minister of Finance Witte ka Russia is considered to be the transition from a paper-inflationary monetary circulation on the gold standard.
monetary reform Witte assumed stabilization of the monetary system of the country through the establishment of a gold ruble equivalent.The need for such drastic action was related to the fact that at that time there was a high risk of collapse of the Russian currency, because the official exchange rate to the French franc was regarded as 1 to 4, and in practice is no more than 1 to 2.5.The monetary reform Witte turned ruble hard currency, which contributed to the improvement of the investment climate in the country.As a result, in the early 20th century, Russia experienced an unprecedented industrial and economic growth in all sectors of the economy.
influx of foreign investment until the start of the war increased annually by 150 mln. Rubles, while the pre-reform, he was only 100 million. Rubles.due to the instability of monetary system of the country.The monetary reform Witte assumed that the ruble contains 7.66656 g of pure gold, and bank notes that were in circulation in the territory of the Russian state, freely exchanged for the precious metal on the declared rate.
the eve of World War I gold ruble has become one of the safest currencies in the world, and are freely traded across Europe.This allowed not only to Russia to enter the export market and attract new capital, but also to strengthen political ties with the leading countries of the time.And despite the fact that initially the changes in the law were perceived quite negatively, because they tied the hands of speculators, eventually Witte contributed to the development of the state has been appreciated by historians and economists.Today, in this period of Russian history is studied in detail in many studies, both domestic and foreign authors, and reform Witte is considered an example of what innovation can be useful, and should be carried out without loss to the public.
