In early 1815, Nathan
Rothschild approached Czar Alexander I (1801-25) at the Congress of
Vienna with a proposal that he set up a central bank in Russia.
Whether it was because he distrusted this shady banker or was aware
of the perils of central banking is not known, but he prudently declined.
In 1860 The State Bank of the Russian Empire was founded with the aim
of boosting trade turnovers and the strengthening of the monetary system.
Up to 1894 it was an auxiliary institution under the direct control
of the Ministry of Finance. In that year it was transformed into
being the banker of the bankers and operated as an instrument of the
government’s economic policy. It minted and printed the
nation’s coins and notes, regulated the money supply and through commercial
banks provided industry and commerce with very low interest rate loans.
Its vast gold reserves, the largest in the world, except for the year
1906 exceeded the bank note issue by more than 100%.
Not unexpectedly Russia had the smallest national debt in the
world. The following table reflects the number of rubles per
inhabitant in 1908.
By 1914 83% of the interest and amortization of the national debt
was funded by the profits of the Russian State Railways. In
1916 the total length of the main lines was 100 817 verst or
In 1861 Czar Alexander II (1855-81) abolished serfdom, which at that
time affected 30% of the population. By 1914 80% of the arable
land was in the hands of the peasants. The Peasants’ State
Bank, described at that time as the “greatest and most socially
beneficent institution of land credit in the world” granted loans at
a very low rate of interest, which was in effect a handling
charge. Between 1901 and 1912 these loans increased from
222 million rubles to 1.168 billion rubles.
Agricultural production soared so that by 1913, Russia had become
the world’s bread basket as the following table reveals.
Russian agricultural production of cereals exceeded the combined
production of Argentina, Canada and the United States by 25%.
Mining and industrial output also expanded by huge margins.
Between 1870 and 1914 industrial output grew by 1% per annum in
Great Britain, 2.75% per annum in the United States and 3.5% per
annum in Russia. During the period 1890 to 1913 industrial
production quadrupled and Russian industries were able to satisfy
80% of internal demand for manufactured goods a perfect example of
With the Russian State bank creating the people’s money out of
nothing at almost zero interest; as opposed to the rest of the world
where central banks allowed parasitic private banks to create their
nations’ money supply at usurious rates of interest, it comes as no
surprise that in 1912 Russia had the lowest levels of taxation in
the world. Furthermore there was hardly any inflation.
An independent study by British lawyers concluded that the Russian
Code of Laws and judiciary were “the most advanced and impartial in
the world.” Elementary education was obligatory and free right
up to university level.
In labor relations the Russians were pioneers. Child labor was
abolished over 100 years before it was abolished in Great Britain in
1867. Strikes, which were forbidden in the Soviet Union, were
minimal in Czarist times. Labor laws were so advanced and
humane that President William Taft was moved to say that “the
Emperor of Russia has passed workers’ legislation which was nearer
to perfection than that of any democratic country.” The Czar
and his state bank had created a workers’ paradise that was
unrivalled in the history of mankind.
On November 7, 1917, the Rothschilds, fearful that replication of
this extraordinary example of freedom and prosperity would destroy
their evil banking empire, instigated a Judeo-Bolshevik revolution
in Russia, which wrecked and ruined a wonderful country and resulted
in the deaths by murder and starvation, according to Alexander
Solzhenitsyn, of 66 million innocent people.