The monetary reform of 1947, carried out in the USSR, was a tough measure to restore the country's economy after World War II. Such reforms in the post-war years were experienced by many states. The main reason for this was the huge amount of money released to cover military spending.
Consequences of the war
The Second World War caused enormous damage to both the USSR and many other participating countries. In addition to huge human losses, harm was done to the state as a whole.
During the war, about 32,000 industrial enterprises, almost a hundred thousand farms, more than 4,000 railway stations and 60,000 tracks were destroyed. Hospitals and libraries, theaters and museums, schools and universities were destroyed.
The country's infrastructure was almost completely destroyed, millions of Soviet citizens were left homeless, more than 30% of the national we alth was destroyed, food supplies were practically used up. The country was physically and mentally exhausted.
Reason for reform
Recovery of the country, which fell into decay after the war, required significant changes in many areas of life. One of these transformations was the monetary reform carried out in the USSR in 1947. There were many reasons for the reform:
- In wartime, a large number of banknotes were issued. This was due to the huge military spending. As a result, at the end of the war, there was four times more money in circulation than before it. In the post-war period, such an amount of money was not required and threatened to depreciate the ruble.
- A sufficient number of counterfeit banknotes, which were issued by the Nazis, circulated in circulation. These banknotes should have been withdrawn during the monetary reform of 1947
- In the USSR, cards were introduced to combat the shortage of goods. With the help of cards, most food and non-food products were distributed among the population. The abolition of the coupon system made it possible to set fixed prices for consumer goods.
- Significantly increased the number of speculators who made a fortune during the war. The setting of fixed prices was also aimed at combating the speculative element.
Goals of the 1947 currency reform
The Decree "On the implementation of the monetary reform and the abolition of cards for food and industrial goods" was the basis for the start of the transformation. The main goal of the monetary reform of 1947 was to eliminate the consequences of the last war. It should be noted that similar reforms were carried out in mostcountries participating in the war.
The objective of the reform was to withdraw from circulation old-style banknotes, excessively issued during the war, and exchange them for new ones as soon as possible. According to the terms of the monetary reform of 1947, chervonets were replaced by rubles.
The provisions described in the resolution also stipulated the procedure for canceling cards. The presence of a coupon for goods gave citizens the right to purchase a particular product. The number of coupons was limited, so not everyone could afford to purchase the desired product. This gave impetus to the spread of speculation. People who did not have a card for the desired product could buy it from speculators at a higher price. The monetary reform of 1947 established uniform fixed prices for all groups of goods.
How did the reform go
Reform planning began a year earlier. However, due to the post-war famine, it had to be postponed. The beginning of the event was scheduled for December 16th. It was necessary to complete the reform as soon as possible, the end date was set in two weeks, on December 29.
The denomination was chosen as the form of transformation. Briefly described, the currency reform of 1947 was reduced to a change in the value of banknotes. The percentage of denomination was 10:1, that is, ten old chervonets were equal to one new ruble. However, the price order, various payments and wages did not change during the recalculation, despite the reduction in prices. In this regard, many historians do not consider this reform a denomination, agreeing that it was confiscatorycharacter.
On December 11, departments of the Ministry of Internal Affairs of the country received packages, which were to be opened on the 14th of the same month by the heads of savings banks and other departments of the financial structure. These packages outlined the essence of the monetary reform of 1947, and also contained detailed instructions for the exchange of financial resources of the population. The instruction concerned cash, as well as deposits and bonds.
Money exchange
The confiscation nature of the monetary reform of 1947 was also confirmed by one of the points of the decree. This clause stated that the exchange of the population's funds should be carried out in such a way as not only to withdraw surplus funds from circulation, but also to eliminate the savings of speculators. However, savings were available not only to those who dishonestly made their fortune during the war years, but also to citizens who accumulated their savings over many years. The same can be said about those regions of the USSR that were not affected by the war, where favorable conditions for trade remained. But this “nuance” was prudently kept silent.
Cash paper money changed at the cash desks of the State Bank of the USSR at the rate of ten to one, for deposits the exchange ratio was different. It should be noted that penny coins were not exchanged and remained in circulation.
Cancel cards
The card system existed in the USSR since the establishment of the state. It has been canceled and restarted several times. The card system existed in the country from 1917 to 1921years, from 1931 to 1935. The next introduction of coupons for goods fell on the war years. It should be noted that at that time many states that took part in hostilities switched to the card system. The abolition of cards was part of the monetary reform measures of 1947 in the USSR. But first it was necessary to regulate the pricing policy. At the time of the reform, market prices differed significantly from rations and exceeded them by about ten times. The resolution on the reform described a new procedure for setting prices, which were supposed to reduce the difference between the market and ration prices of goods. Prices for bread, cereals, pasta and beer were decided to be reduced by 10-12% compared to ration prices, while prices for fruits, milk, eggs, tea, fabrics and clothing were required to be increased. The retail price of meat, fish products, confectionery, vegetables, tobacco products, vodka remained at the level of existing ration prices.
Bonds
The monetary reform in the USSR in 1947 also affected the bonds that were in circulation at that time. A bond is a loan guarantor that provides the owner with a debt from the borrower within a specified period. The borrower or issuer in this case is the state.
During the period of participation of the USSR in hostilities, when government spending on military needs increased sharply, State military bonds were issued in the total amount of 81 billion rubles. The sum of all internal loans was about 50 billion rubles. Thus, by the time of the monetary reform inIn 1947, the state owed the population more than 130 billion rubles.
Bonds were also subject to exchange. Conversion measures consisted of exchanging old interest-bearing loans for new ones at the rate of three to one, winning bonds at the rate of five to one. That is, one new ruble in bonds was equal to three or five old rubles, respectively. As a result of this exchange, the internal debt of the state to the population decreased by an average of four times.
Contributions
The savings exchange rate of the population varied depending on the amount of savings. If the amount of the deposit did not reach three thousand, the exchange was made at the rate of one to one. Deposits from three to ten thousand - three to two. If the deposit amount exceeded 10,000 rubles, then 3 old rubles were equal to one new one.
That is, the greater the amount of savings, the more the depositor lost. In this regard, when rumors about the upcoming reform became more obvious, kilometer-long queues lined up at the savings banks. People who had deposits of large sizes, sought to withdraw money. They split their large deposits into smaller ones, reissuing them to third parties.
Last victim
Talking about the upcoming reform quickly spread among the population. Information about the denomination and confiscation of funds caused a real stir. People bought absolutely everything from stores in order to at least partially invest money, which was soon to become "wrappers". At this time, even the goods that had been sold for yearsdusted on the shelves. The same thing happened in the savings banks. Citizens also sought to make various payments in advance, such as utility bills.
As I. V. Stalin said, the restoration of the state required "the last sacrifice." Moreover, the state promised to take on the bulk of the costs. However, in reality it turned out differently. The heaviest blow was de alt to the rural population, the most vulnerable segment of the population. The monetary reform of 1947 had to be carried out in an incredibly short time frame. If for remote sparsely populated territories this period was two weeks, then residents of the central regions had to have time to exchange money in a week. And if the townspeople had the opportunity to make an expensive purchase or open a deposit, then many villagers simply did not have time to get to the nearest savings bank. In addition, a separate part of the citizens did not dare to show their real savings, fearing unnecessary questions and persecution. Basically, the government counted on it. Of the 74 billion rubles in circulation, more than a quarter were not presented for exchange, more than 25 billion.
Consequences of the reform
As a result of the monetary reform of 1947, the Soviet Union managed to avoid the depreciation of the ruble, the surplus of bills issued during the war years were eliminated. Thanks to the recalculation, the costs of which were shouldered by the population, the State Bank managed to collect a considerable amount. This money was used to restore the post-warcountries. The abolition of cards ensured a decrease in market prices for many groups of goods and significantly reduced the number of speculators.
It is generally recognized that the reform, like many other Stalinist introductions, was forced and rigid. However, it is worth recognizing that these measures were forced and necessary to restore the Soviet economy.
