Banks of issue. The modern barter economy, due to the vastness of its turnover, cannot be content with the number of banknotes that it receives from the minting of metal into coins

The need for means of payment is satisfied by issuing a special kind of interest-free credit obligations, exchangeable for metal upon sight, usually written out in round amounts and payable to each holder. Banks that have the right to issue such credit obligations, usually called banknotes, are called emission banks. The Stockholm Bank of Palmstruk, founded on November 30, 1656, can be recognized as the first Bank of Issue in the present day. At first, it, like the Venetian, Hamburg and Amsterdam banks that existed before it, conducted mainly settlement transactions(giro), but in 1661 he began, under the project of Count Magnus Delagardie, to issue banknotes, which he advanced to the treasury in the form of a loan. In 1694, the Bank of England was founded, and in 1695, the Scottish Bank. In 1716, John Law sought permission in France to organize the Royal Bank. He made strong reference to the example of Sweden in his reports on the formation of the Bank of Issue. Founded in 1765 by Frederick the Great. Royal loan and giro bank. In 1768, Assignation banks were organized in Moscow and St. Petersburg. The collapse of the Royal Bank in France and the failure of the Scottish Bank, the difficulties of the Swedish State Bank suspended the further organization of the Bank of Issue. At the end of the 18th century. The Cash Office in Paris (1776) and the Bank of St. Charles in Spain (1782) appear. The second period of the organization of Banks of Issue begins with the establishment of the French Bank by Napoleon I in 1800. Then the following arise: the Dutch Bank in 1814, the National Austrian Bank in 1816, the State Norwegian Bank in 1816, the National Danish Bank in 1818, the Polish Bank bank in Warsaw in 1828. In the United States of North America, central banks of issue were created twice. First central Bank of issue States was established in 1791. It existed until 1811. Five years later, in 1816, the second central Bank of Issue of the United States of the North was organized. America, which existed until 1836. Experiences of European countries and the experience of the United States of the North. The Americas served as an example for all countries that later entered into a barter economy. The countries of South America and Asia, as they entered the world economy, were forced to begin organizing banks of issue at the expense of their own or foreign capital. Mexico, Brazil, Argentina, Australia, New Zealand, Türkiye and all Balkan countries create Banks of Issue. In the colonies, European states began to organize colonial banks of issue. Holland was the first to take the path of creating colonial banks of issue, establishing: in 1827, the Javanese Bank, which exists to this day. In the French colonies of Algeria, Martinique, Guadeloupe, French Guiana and Indochina, Banks of Issue have existed for a long time. Even small European colonies, like Dutch Guiana, have their own Bank of Issue - the Bank of Suriname. Island of St. Thomas, lost among the Lesser Antilles while it was a Danish possession, had its own Bank of Issue. Before the war, there were Banks of Issue in 48 countries. During the World War and the subsequent economic upheavals, the old Russian State Bank and the Austro-Hungarian Bank were liquidated, and the German Bank was reorganized. In the new states that arose after the World War, and in the colonies for ordering money circulation There was an urgent need for the organization of Banks of Issue. In a number of countries, banks of issue were organized again. This is how the State Bank of the USSR, the Polish Bank (1924), the National Austrian Bank (1922), and the Estonian Bank (1919) arose. State Latvian Bank (1922). The Serbian Bank was reorganized into National Bank kingdoms of Serbs, Croats and Slovaks (1920). The Free City of Danzig gave the privilege to organize the Bank of Issue. Peru reformed the issuance business by creating the Central Reserve Bank of Issue in 1922. Also on the model of S.-a. The United States carried out a reform of the issuing institutions of the Union of South Africa, establishing the South African Reserve Bank in 1921. In Brazil exclusive right the issue of banknotes in 1923 was transferred to the Brazilian Bank. In the near future, a number of colonial Banks of Issue will be organized (a project for the Madagascar Bank is being prepared in France). In Colombia, a central Bank of Issue has been organized, called the Republican Bank. At the very end of 1925, the Mexican government published a law organizing the Bank of Mexico, which was to be the central Bank of Issue of Mexico. In view of the fact that the creation of instruments of payment in its economic and legal consequences is very close to monetary regalia, and in view of the fact that the issue of banknotes can create the opportunity to receive exceptional income, and at the same time the issue of an excessive number of banknotes can cause enormous upheavals in the national economy, the organization of the Bank of Issue occurs with the special permission of the state authorities in the form of granting the privilege to issue banknotes to the bank when it commits credit operations. Complete freedom of banks of issue existed in Scotland for almost a whole century, in France during the Directory, in England, outside London, until 1844. In S.-a. United States between 1836 and 1863 the creation of Banks of Issue is regulated by local laws of individual states. Of these, in Rhode Island, all were granted the right to establish Banks of Issue. Currently, everywhere the right to carry out emission operations is considered the exclusive right of the state, which can exercise it directly or in the form of special government regulations that carry out emission operations (Federal Treasury in the United States, Federal Treasury of Canada, Expedition for the Procurement of State Banknotes in Russia in 1843 - 1855, Banking Branch of the Czech Ministry of Finance, National Emission Establishment of Hungary), or in the form of state banks, or to grant the right to issue to semi-state mixed joint-stock banks (Mexico), or completely private banks (England).

The emergence of banks of issue, first of all, was beneficial and convenient for trading capital. Propaganda for the creation of Banks of Issue in the country has always and everywhere been carried out by commercial capital. The creation of banks of issue increased the possibility of rapid turnover of goods and increased the possibility of rapid growth of capital of the bourgeoisie. The landed aristocracy and, in some cases, the peasantry fought in every possible way against the Banks of Issue. The Bank of England is closely associated with the victory of the bourgeoisie over feudal reaction during the revolution of 1688. In the eyes of the Tories, it was always an odious institution; they were reconciled with him only when Robert Peel's act tied his hands. In Sweden in the 17th century. the peasantry was extremely sharply opposed to the Banks of Issue; in S.-a. In the United States, the first two central banks died because agricultural groups were against them. As long as there is economic independence in certain regions of the country and as long as trading capital can, relying on local resources, increase the size of its profits, there is a desire to provide emission to a large number of local banks of issue. At the same time, a number of banks are granted the right to issue banknotes on a completely equal basis. The idea of ​​decentralization of banks of issue was most fully expressed in the law of the New York State of Northern. America, which allowed the free establishment of banks of issue to any individual or legal entity. The legislation on national banks under the federal law of 1863 was built on the same idea of ​​​​an unlimited number of banks of issue. Canada, Japan and Argentina put the same idea into the initial structure of their banks. In France, until 1848, next to the French Bank, there were departmental banks, organized according to the same charters as it. In Sweden, from 1824 to 1904, there were private Banks of Issue next to the central state bank. The centralization of the economic life of the country makes it necessary to abandon first the idea of ​​complete freedom in the organization of banks of issue, and then imperatively requires the unification of the issue of banknotes either in a small number of banks (the North American system of reserve banks) or in the transfer of the right of issue to one central bank. As a result of the centralization of the economic system, the central Bank of Issue enhances the further unification of economic life. Switzerland most clearly went through all stages of the development of Banks of Issue. The first Bank of Issue was founded in the canton of Saint-Galle in 1836. Then each canton created its own Bank of Issue in accordance with the conditions it had worked out. In 1881, the first federal legislation appeared, which set itself the task of uniting the structure of Banks of Issue in individual cantons according to one model. In 1907 federal government created the Central Bank of Issue, replacing 37 cantonal banks. Conservation at the beginning of the 20th century. in England and Germany, banks of issue next to central banks, concentrating in their hands the overwhelming majority of emissions, represented a relic of the era of decentralization of banks of issue. Decentralization of issuance continued in the United States, where before the 1913 reform there were 7,145 national banks issuing notes. During the crisis of 1907, the weakness of the decentralization system became abundantly clear. Reform of 1913 S.-a. The United States also took the path of unifying emissions. Currently, according to the law of December 23, 1913, 12 Federal Reserve Banks are organized, each operating in its own region. The capital of the Federal Reserve Banks is derived from contributions from banks affiliated with the Reserve Bank. At the head of the entire system of Federal Reserve Banks is the Federal Reserve Committee with the task of directing the issue of Federal Reserve Notes, forming the boards of 12 banks, coordinating their work, monitoring and auditing their activities, monitoring the safety of gold reserves, and coordinating discount rates set by individual Reserve Banks. The committee has a Federal Advisory Council, which includes representatives of 12 banks. Each of the 12 federal banks is completely independent and independent. Central Banks of Issue can more easily cope with the crises that are inevitable in the exchange economy. They can quickly, with the support of the state, go to fight against unfavorable circumstances, while small and decentralized Banks of Issue have difficulty coordinating their actions. The lack of unity of action, the lack of unity of set tasks, the manifestation of irreducible egoism leads, as the experience of S.-a especially proved. United States during the crisis of 1907, to a significant shock to economic life, although it cannot be hidden that the centralization of the issue business in one bank leads to the centralization of credit at the location of the central Bank of Issue. It often happens that the region where the board of the central Bank of Issue is located receives the most credit assistance. Central banks were very reluctant to develop the network of their branch institutions. The French bank opened branches only after persistent demands from local commercial and industrial circles, and only when the opening of a branch was made obligatory for it by a new convention with the state. There are even more disputes in banking literature around the issue of public or private banks. Bourgeois theorists of the mid-19th century. strenuously argued that only a private Bank of Issue can properly establish monetary circulation, that any state Bank of Issue will always be less capable of creating favorable conditions for the development of the national economy. When local money capital was strong enough, it took on different conditions (without the assistance of the state in England, with the assistance of the state in France, Belgium, Germany) the organization of the Bank of Issue. In those cases when local money capital was weak and could not take on the risk of creating a Bank of Issue, then, at its insistence, the state organized a Bank of Issue using funds collected from taxpayers (Sweden, before the revolution Russia, Finland, Bulgaria, Uruguay) . At the end of the 19th century. bourgeois theorists abroad and in Russia especially put forward the idea of ​​\u200b\u200bthe autonomy of the central emission institution. The autonomy of the Banks of Issue, in the mouths of the majority of writers, boiled down to the liberation of the Banks of Issue from the influence of those social groups in whose hands the management of the bank's funds was located. In Russia, the industrial and commercial bourgeoisie, pursuing the idea of ​​autonomy, wanted to wrest the bank from the hands of the semi-feudal tsarist government. The French and German bourgeoisie were completely calm about the external dependence of the French and German banks on state power due to the fact that they were always quite confident that they would not be offended when distributing the bank’s funds. In economically dependent countries there are banks of issue that are completely independent of local government authorities. Sometimes Banks of Issue are organized according to the laws of other countries. The Ionian Bank in Greece was an ordinary English joint-stock bank, the Ottoman Bank of Turkey was a Franco-English joint-stock company, the Imperial Persian Bank was an English company, the Russian-Asiatic Bank was an Issue Bank in China. The board of the Abyssinian Bank is located in Cairo, and the Governor of the National Egyptian Bank shall serve on the board of the Abyssinian Bank as chairman. The political and economic dependence of modern Germany is especially sharply expressed in the fact of the introduction of foreign members to the board of the reorganized German Bank, according to the Dawes Plan, and the establishment of the post of commissioner of the reparation commission at the bank. Control over the Bank of Issue makes it possible, through credit policy, to direct the development of the national economy along a path that will be beneficial to those who will have influence on monetary circulation. Control over the Bank of Issue can be removed from the hands of local authorities, but without the budgetary funds of the local government it is impossible to establish a well-organized Bank of Issue. Free funds of the state are always and everywhere the main basis for the Bank of Issue. The first Swedish Bank of Palmstruk was the state cashier for customs taxes. Through slow evolution, a custom has developed in England, all the free resources of the State. the treasury is kept in the Bank of England. The classic concept of combining the funds of the Bank of Issue with the free funds of the State Treasury was achieved for the first time in the 50s of the 19th century in Belgium, where, during the organization of the National Belgian Bank, the Bank of Issue was the official cashier of the state. The death of the Second Bank of Issue of S.-A. United States occurred as a result of the government's refusal to place available government funds in bank accounts. The main strength of the Russian pre-revolutionary State Bank was its storage of free cash from the State Treasury. Nowadays, the charters of banks of issue almost always provide for the storage free funds states. The question varies only within the limits of whether treasury duties are paid or free of charge. In the charter of the National Swiss bank it is said that he unconditionally holds the funds of the Union. The New Mexican Bank will receive remuneration for the performance of treasury duties as state cashier. The structure of the Banks of Issue according to the North American model of the Reserve Banks also involves the transfer of free treasury resources to them. Reserve banks of the North-Am. states, Peru, and the Union of South Africa are closely linked to the State Treasury. One of the reasons why they could not and cannot grow into large banks of issue - banks like the Ottoman Bank, the Imperial Persian Bank, the London and Mexican Bank, the Ionian Bank, the Russian-Asiatic Bank, the Hong Kong-Shanghai Corporation - is mainly because Having received the right to issue banknotes, they did not have the opportunity to become custodians of the budgetary funds of the public authority that gave them the right to issue banknotes. If they receive state funds, it is only partially. And the best organization of the Bank of Issue is possible only when all public resources serve as the support for the correct organization of the issue of banknotes. The state's cash funds are more important for the Bank of Issue than the bank's own capital. Own significant capital for the Bank of Issue is not necessary, especially if the bank belongs to the state. The long-stated theoretical truth was first confirmed in practice by the Australian Bank. The bank was created by the state in 1901. It was proposed to raise capital for it by issuing bonds, but capital has not yet been collected. The American Reserve Banks, with a balance sheet of $11 billion, have fixed and reserve capital of only $334 million. Insignificant value own capital in the Emission Bank serves as a clear indicator that without any special sacrifices on their part, a small group of people who have invested in the share capital of the Emission Bank can easily receive dividends at the expense of the entire national economy, operating mainly with treasury resources. The more the State Treasury is connected with the Bank of Issue, the greater the organic connection between its administration and the government. If private bank becomes the treasurer of the state, then the state, transferring to it its funds for the operation, exercises control over the Bank of Issue in the form of its commissioner with the right of veto (Austrian National Bank), in the form of the appointment of members of the board (a number of banks), in the form of the appointment of a manager and his closest assistants (France, Germany before the war, Japan, etc.). In this case, you get a private bank with state management. Lack of external communication between control Bank of England and the English government is explained by the long-term similarity of interests of shareholders and the government. In new charters, government influence on the composition of management is always exercised in one form or another. Only those Banks of Issue that do not pretend to be cashiers are completely free from government influence. public funds. In joint-stock banks of issue there are different rules regarding transfers of shares. Bank shares can only be registered (Japan), bank shares cannot be owned by foreigners, under the American system of reserve banks, only credit institutions that meet certain conditions can be shareholders. The shareholder of the Bank of Issue is usually required to pay the share in full. Some statutes allow partial payment. Often the main shareholder is the state (the new Bank of Mexico, where the state owns 51% of the shares). General meetings in joint-stock banks of issue they usually have limited rights. Only the largest shareholders (France) are allowed to participate in them with decisive voting rights. Typically, the meeting of shareholders hears the report and elects an audit body (audit commission, censor commission, etc.). In joint-stock banks of issue, the profit received is shared with the state. The system of profit sharing between the state and shareholders is very diverse. If the state does not directly participate in the profits of the private Bank of Issue, then the state's income from the bank is obtained indirectly. Banks of issue provide the state with an advance either at a very reduced interest rate or completely interest-free. Before the war, the French Bank provided the state with an interest-free advance of 200 million francs. and paid 1/7th of the income from productive calls at a discount rate of 3.5% and 1/6th at a discount rate of 4% and higher. According to the charter of the Bank of Mexico, the following division of profits is assumed: 10% to the reserve fund until it reaches 100% of the fixed capital, then 6% to the capital. After deducting these two contributions, 50% of the remainder goes to the state, 10% to employees, 5% to directors, 35% can be issued as a dividend in addition to 6%. The right to issue banknotes makes “other people’s money” less necessary for the Banks of Issue than for other banks. The restriction on the placement of available funds, which is imposed by the charters on the Banks of Issue, leads to the fact that the Banks of Issue pay almost no interest on deposits. Some charters of banks of issue prohibit the acceptance of capital with the condition of paying interest on it. In many cases, when the charter allows the acceptance of deposits with the payment of interest on them, the banks themselves refuse interest-bearing deposits, realizing that the need to pay interest will force them in their activities to go far from the real road of the Banks of Issue. The main task of the Banks of Issue is to regulate money circulation, facilitate payment terms and develop the country's productive forces through credit. From this follows the emission operation. The setting up of the issuing operation is different in different banks (see Art. Banknote). If there are countries with the same standards for organizing emission operations, then in practice there is an infinite difference. Emission practices must take into account the specific conditions not only of a given country, but also at this moment . When issuing banknotes, the Bank of Issue seeks to withhold the exchange of banknotes for metal; at the extreme - to keep banknotes at a certain parity. To ensure exchange and maintain the exchange rate, the Bank of Issue is given the right to carry out all kinds of transactions for the purchase and sale, and acceptance of gold as collateral. This already implies the need to provide the Banks of Issue with the right to all transactions for the sale and purchase of drafts and checks, foreign banknotes and other foreign payment obligations. The issuing bank is usually granted the right to discount short-term bills, issue loans against securities, issue loans against jewelry (diamonds and silver), open current accounts secured, accept deposits of fixed-term and perpetual, paid and unpaid, make settlements between its clients, various collection operations, issuance of checks, letters of credit, sales and purchases at one’s own expense and on a commission basis of securities, the acquisition of which is permitted by the bank’s charter, payment of interest-bearing securities coupons. The operation of concentrating gold in the Banks of Issue has led to the fact that at present, wherever the Banks of Issue exist, they have at their disposal almost the entire stock of gold belonging to a given national economy. In terms of accumulated reserves, 12 Federal Reserve Banks are in first place: S.-A. United States (13.995 million gold francs), the French Bank (5.548 million gold francs), the Bank of England (3.605 million gold francs). Next in terms of gold reserves are: Japanese, Dutch, Italian banks, National Swiss and Spanish, German, Russian state, Swedish. Over half of the gold reserves are concentrated in the Federal Reserve Banks of North America. U.S.A; over a quarter of the world's gold reserves are in the hands of the English and French banks, slightly less than a quarter of the world's gold reserves are in the hands of the banks of issue of the eight named countries. The remaining banks have at their disposal a reserve of gold amounting to no more than one tenth of all the gold reserves available to the Banks of Issue. Of the transactions, the right of the Banks of Issue to operate with foreign currency and foreign currency is of particular importance for the national economy. Being the center for the sale and purchase of foreign currency, Banks of Issue regulate the production of international payments and, thanks to their position, can equalize the balance of payments and claims, thereby eliminating sharp fluctuations in bill rates, introducing fees and eliminating shocks that adversely affect economic life. The list of operations permitted or prohibited for Banks of Issue is varied in different charters of Banks of Issue. In some cases, the power of tradition is more impressive than the norms written into the charter. The main idea of ​​the activities of Banks of Issue is that its asset should be quickly realizable, that Banks of Issue should be able to withdraw placed funds from circulation at any time. Therefore, operations for long-term financing of industry, foreign trade, and agriculture cannot be the task of the Banks of Issue. However, the French colonial Banks of Issue managed to very successfully combine banknote issue with the financing of sugar plantations. Banks of issue in colonies and countries with poorly developed economic life have to deviate far from the purity of the principles developed in the countries of old capitalism. The struggle between money capital and agrarian groups in Europe is expressed in the requirement that the Banks of Issue devote a significant part of their funds to agricultural lending. If often landowners directly receive a refusal, then indirectly the Banks of Issue make concessions to them. Thus, during the banking survey of 1907 in Germany, the German Bank expressed its concession to farmers in the form of widespread issuance of advances on mortgage notes. By expanding the market for mortgage sheets, it made it possible mortgage banks give wider development to their activities. By accepting shares and bonds of industrial enterprises as collateral, as well as shares and bonds of banks financing industry, the Bank of Issue directs its funds to industry. Many charters of Banks of Issue often establish formal characteristics in relation to both clients and documents and goods with which the Bank of Issue can carry out transactions. Thus, the principle of national origin is established for goods. The Bank of Issue can only credit transactions involving the circulation of local goods, the client cannot be a person declared bankrupt, bills of exchange must have three signatures, etc. The purpose of these restrictions is to make clients of the Banks of Issue as flexible as possible and to prevent the funds of the Banks of Issue from getting stuck in any or questionable transactions. Almost all charters of banks of issue specifically stipulate the right of the state to be a client of the bank for active operations. The charters of Banks of Issue usually impose a number of restrictions on government borrowing. In the charter Polish Bank banks are allowed to account for treasury obligations of the Polish government. The new charter of the Bank of Mexico, despite its almost governmental character, states that amounts advanced to the government cannot be more than 10% of the bank's capital stock. The charter of the National Austrian Bank states that the bank has no right to make advances, directly or indirectly, to the Austrian government, except in cases where the advances can be secured by valuable collateral or foreign mottos. According to the Dawes Commission plan, the German Bank could lend to the German government, but always with the understanding that the total amount of the government's outstanding debt to the German Bank should never exceed 100 million marks. The advance should not be provided for a period exceeding 3 months. At the end of the reporting period, government debt to the bank must be repaid. In addition, the German Bank is prohibited from issuing advances or other loans to German states (allied states), municipalities, and administrative units. The charters of most Banks of Issue prohibit any direct credit transactions with foreign governments or foreign administrative units. Almost all charters repeat in a completely identical form the prohibition on issuing banks to buy, acquire in any way and hold among their assets real estate (houses and lands), except for those that they need for the direct performance of their tasks. In colonial countries, where warehouse facilities are poorly organized, banks of issue are forced to own significant real estate in the form of elevators, refrigerators and warehouses. The main operation of banks of issue is the discounting of short-term bills. The formal nature of the bill of exchange and its short-term nature create the conditions for investing funds better than anything else. Banks of issue accept only first-class bills of exchange and, moreover, mainly commodity ones. In countries of the old capitalist culture and with a large money market, the Banks of Issue sometimes even have to act as buyers of bills due to the fact that the best bills from a cheaper interest rate can be discounted in addition to the Bank of Issue. In capital-poor countries with a small money market, the best bills of exchange are always in the hands of the Banks of Issue, since the Banks of Issue rediscount bills already discounted in some bank. In quiet times, banks take clients away from Banks of Issue, providing them with more convenient lending conditions. Hence the transformation of the Bank of Issue into a bank of banks. The current American system builds the Federal Reserve Banks just like banks of banks. The Union of South Africa and Peru did the same. The Australian Bank is very close to this. Of the European banks, the French and English banks are closest to the type of bank. In countries of young capitalism and in colonies, where often there are no other banks besides the Bank of Issue, the Bank of Issue is of great importance for the country’s money market. A long-term struggle for a sustainable low discount of the Bank of Issue can create particularly favorable conditions for the development of the national economy (policy of the French Bank). Constant promotions and demotions discount rate The Bank of Issue, even with relatively small reserves of gold, can have it sufficiently for the national economy (discount policy of the Bank of England). In countries poor in free capital, the accounting percentage of the Bank of Issue is always lower than the accounting percentage of the free market. The task of the Bank of Issue is, on the one hand, to lower the domestic interest rate, and on the other hand, to keep the discount rate at such a level that it facilitates the influx of foreign capital (discount policy of the Japanese, Spanish, Italian Banks of Issue and Russian pre-revolutionary banks). With the transfer of bill material to other banks, banks of issue begin to develop operations with securities. Time (On coll) loans against interest-bearing and dividend-paying securities give them the opportunity to lead the money market in the desired direction. Of course, Banks of Issue select securities for their operations with great care. Even risk-free transactions are transferred to other banks. Issuing banks always need a guarantee, and other banks provide guarantees for transactions. One of the most important conditions for the success of the Banks of Issue is the requirement to publish balance sheets. The balance sheets of the Banks of Issue must be published, firstly, regularly, and secondly, quite often. Publicity makes it possible to judge the progress of the Banks of Issue and the state of its individual accounts. Regular reporting of the Bank of England's balance sheets began with the Act of Robert Peel. Currently, England, France, Sweden, Norway, Belgium, and Switzerland publish their reports weekly. In Germany and Russia before the war, the balances of the Banks of Issue were reported almost four times a month, in Italy three times, in Australia twice a year. Some Banks of Issue publish balance sheets only once a year. The issuing banks' issuance of annual reports is of great importance. Annual reports have been introduced into practice by joint-stock banks of issue. Still no annual reporting Banks of issue and the preparation of balance sheets were not satisfactorily established anywhere. In some cases, published figures are falsified, or balance sheet figures are so combined that they do not give a clear picture of the real state of affairs. Vivid examples are the Italian banking difficulties of the 80s and 90s and the history of exceeding the legally established issue in Russia in January 1905 and in France in the spring of 1925, hidden in the skillfully compiled balance sheets of the Banks of Issue.

The financial system of any country includes monetary system, the main element of which is the issue of money. Without this element, the existence of the state’s economy, as well as the implementation of its internal and external payment transactions, is impossible, because money is the main and universal means of payment.

Depending on the type of money issued, the issuer, as well as some other characteristics, the issue can be divided into various types. Next we will consider in detail how this process occurs and what it leads to.

Issue of money and its types

The totality of all funds in circulation in a country is called the money supply. This value is not constant and can change under the influence of many factors, both up and down. Emission leads to an increase in the money supply extra money into circulation.

Depending on the type of money issued, the issue is:

1. Cash- release of additional paper money and coins into circulation. due to which there is an increase in the total money supply. Incoming money is either minted (if it is in coin form) or printed (if it is in paper form).
2. Cashless- a priority type of issue, which on average accounts for about 80% of the total issue of money. This is due to the fact that in most developed countries non-cash money is the predominant means of payment. Non-cash money is issued by issuing loans or by displaying money in bank accounts.

Another classification divides emissions into two types:

1. Primary— funds are released into circulation by the Central Bank of the state. In this case, the form of money can be either cash or non-cash. The primary issue includes such operations of the Central Bank as:

• printing banknotes (minting coins);
• issuing loans to commercial banks;
• purchase of foreign currency;
• state lending.

2. Secondary— the issue is carried out by commercial banks, which lend to all other market participants. Within the limits of the funds available to the bank, it can issue loans to other entities, using funds received, for example, from the Central Bank.

Depending on the issuer (that is, the entity that issues money), the issue is divided into two types:

1. Budgetary issue of money- carried out by the state, which most often has a monopoly right to issue cash.
2. Credit emission of money- carried out by banks and consists only of non-cash or secondary issues.

The main factor that determines the need to issue funds (both in cash and non-cash form), and also affects its size, is the need for working capital from organizations and enterprises. The purpose of the issue is to satisfy precisely this need and timely provide economic entities with the necessary funds. Other emission factors include:

• growth of production, increase in commodity mass and subjects of the market sphere;
• decrease in the velocity of money circulation;
• price increases that do not depend on the quality of the product (goods or services) being sold.

The exact procedure for releasing funds into circulation depends on the specific country and may differ markedly in different countries. The systems of the most developed countries with market economy A: USA, EU countries, Japan, etc.

In addition to the issue of money, there is also money, which we talked about in the previous article.

Who issues money in the Russian Federation

The main document of the state - the Constitution of the Russian Federation - contains several provisions regarding emissions in the country:

• the monopoly right to issue money belongs to the Central Bank of the Russian Federation;
• the main and only acceptable means of payment on the territory of the state - Russian ruble;
• the issuance of money into circulation in another currency or by another issuer is prohibited;
• the Central Bank of the Russian Federation is entrusted with responsibilities not only for issuing banknotes, but also for their withdrawal;
• The Central Bank is not limited in the form of emission - it can be either cash or non-cash money.

In accordance with the law, the decision on the release of money into circulation, as well as on its withdrawal, is made by the Board of Directors of the Central Bank. When issuing the ruble (the only legal tender), its relationship with gold or any other precious metals is not established.

To produce your own cash (in the form of minting coins) There are special mints in Russia:

1. Moscow Mint.
2. St. Petersburg Mint.

In addition to minting state coins, they are engaged in the manufacture of orders, medals and other items made of precious metals. Coins for foreign countries are also minted in small quantities at these yards.

Printing of money (paper) in Russia takes place in special printing houses that can provide an increased level of protection. The process of making money (both printing banknotes and minting coins) is strictly regulated and is under the control of the Central Bank.

As for non-cash money, they are issued in the form of loans provided by the Central Bank of the Russian Federation to many commercial banks. In the form of a secondary issue, these banks can also provide loans to other economic entities, thereby increasing the size of the country's non-cash turnover.

The emission system of Ukraine is in many ways similar to the Russian one. The primary issuer of funds is the National Bank of Ukraine, which has monopoly rights to issue the state currency - the hryvnia. In addition, the NBU also has the exclusive right to withdraw money from circulation.

The primary issue of funds is carried out by the National Bank in non-cash form - printing of money is carried out only to cover these previously issued non-cash funds. The Banknote and Mint of the NBU is used to print banknotes. Non-cash issue can also be carried out by commercial banks (in the form of lending to other entities).

Several factors can be identified that, at this stage of development of the Ukrainian economy, negatively affect its emission system:

All these factors lead to the need to carry out additional emission of funds, thus increasing the total money supply of the country. This leads to the depreciation of the national currency and the emergence of negative trends in the development of the Ukrainian economy.

As a result, it can be noted that:

1. The main way to increase the money supply in the state's circulation is the issue of funds.
2. Money in circulation can be issued both in cash and in non-cash form.
3. The priority form of monetary payments in all developed countries is non-cash.
4. The monopoly right to issue cash in Russia (banknotes, coins) belongs to the Central Bank.
5. The issue of money in Ukraine does not have significant differences with a similar process in Russia - the difference is only in the legal monetary unit established by the state.

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Issuing credit money is a specific function that distinguishes commercial banks from other financial institutions. Commercial banks issue deposits and credits; the money supply increases when banks issue loans to their customers and decreases when these loans are repaid. These banks are issuers of credit instruments of circulation. The loan provided to the client is credited to his bank account, i.e. the bank creates a deposit (demand deposit), and the bank's debt obligations increase. The owner of the deposit can receive cash from the bank in the amount of the deposit, as a result of which the amount of money in circulation increases. If there is a demand for bank loans, the modern emission mechanism allows for the expansion of money emission, which is confirmed by the growth of the money supply in industrialized countries. At the same time, the economy needs the necessary, but not excessive amount of money, so commercial banks operate within the limits set by the central bank, with the help of which the lending process and, consequently, the process of money creation are regulated.

One of the functions of commercial banks is to provide a settlement and payment mechanism. Acting as intermediaries in payments, banks perform transactions for their clients related to settlements and payments.

The issuing and founding function is carried out by commercial banks through the issuance and placement of securities (shares, bonds). By performing this function, banks become a channel for channeling savings for productive purposes. The securities market complements the system bank loan and interacts with her. For example, commercial banks provide loans to securities market intermediaries (parent companies) to subscribe for new issues of securities, and they sell securities to the banks for resale at retail. If the parent company in whose name the securities are registered sells them itself, then the bank can provide subscribers for the issued securities. In this case, the bank usually organizes a consortium to place securities. Liabilities of significant amounts issued by large companies can be placed by the bank through sale to its clients (mainly institutional investors), rather than through free trading on the stock exchange.

Having the ability to constantly monitor the economic situation, commercial banks provide clients with advice on a wide range of issues (mergers and acquisitions, new investments and reconstruction of enterprises, preparation of annual reports). Currently, the role of banks in providing clients with economic and financial information has increased.

3. Types of banks.

Today, in all developed national economies, there are two-tier banking systems: the Central Bank is an issuing bank and carries out other important functions. Along with this, there are “commercial banks with a range of different breadth (“differentiated versatility”), different goals and often also different groups of clients; they are engaged in banking operations, i.e. produce Financial services that are needed in the market."

By the nature of their activities, banks are divided into:

· emission

· commercial

· investment

· mortgage

· savings

· specialized (for example, trading banks).

Banks of issue issue banknotes and are the centers of the credit system. They occupy a special position in it, being “banks of banks.”

Commercial banks are banks that provide lending to industrial, commercial and other enterprises mainly at the expense of the monetary capital that they receive in the form of deposits. According to the form of ownership, they are divided into: a) private joint stock, b) cooperative, c) state. At the early stages of the development of capitalism, individual banking firms predominated, but with the development of capitalism and especially during the era of imperialism, the overwhelming majority of all banking resources were concentrated in joint-stock banks. The development of state-monopoly capitalism found expression in the commercial banks of some countries (for example, in France).

Investment banks are engaged in financing and long-term lending to various sectors, mainly industry, trade and transport. Through investment banks a significant part of the needs of industrial and other enterprises for fixed capital is satisfied. The development of this link in the credit system is characteristic of a modern market economy. Unlike commercial banks, investment banks mobilize the vast majority of their resources by issuing their own shares and bonds, as well as obtaining loans from commercial banks. At the same time, they play an active role in the issue and placement of shares of industrial and other companies.

Mortgage banks provide long-term loans secured by real estate - land and buildings. They mobilize resources through the issuance of a special type of securities—mortgage notes, which are secured by real estate pledged to banks. The clients of mortgage banks are farmers, the public, and in some cases entrepreneurs.

Farmers often use a mortgage loan to purchase land. Mortgage loans are used in part to purchase machinery, fertilizers and other inputs. In addition, the purchase of land by these farmers gives them the opportunity to expand their farms.

Obtaining mortgage loans (in the US) affects different groups of farmers differently: while large capitalist farmers use these loans to expand their land holdings and farms, small farmers are adversely affected by mortgage debt and contribute to their ruin. The total mortgage amount significantly exceeds farm mortgage debt, including urban property mortgages.

Mortgage loans are provided in the United States by various types of banks (commercial, savings), as well as insurance companies, and savings and loan associations.

Specialized banking institutions include banks that specifically engage in a particular type of lending. Thus, foreign trade banks specialize in lending for export and import of goods.

4. Principles of activity of commercial banks.

The first and fundamental principle of activity commercial bank is to work within the limits of actually available resources. A commercial bank can make non-cash payments in favor of other banks, provide loans to other banks and receive money in cash within the limits of the balance on its correspondent accounts. The ability to independently create funds in the current accounts of their clients beyond their existing resources is limited.

Working within the limits of actually available resources means that a commercial bank must ensure not only quantitative correspondence between its resources and credit investments, but also ensure that the nature of banking assets matches the specifics of the resources mobilized by it. First of all, this applies to the timing of both. Thus, if a bank attracts funds mainly for short periods (short-term or demand deposits), and invests them mainly in long-term loans, then its ability to pay its obligations without delay (i.e., its liquidity) is at risk.

As a rule, they are central banks vested with the right to ISSUE banknotes into circulation. In various countries they are called folk, national, reserve. In the USSR, the functions of the country's Central Bank were performed by the State Bank of the USSR. the main task banks that perform the functions of central traders of monetary goods only among banks and do not enter into direct relations with individual economic units, consists of managing the issuing credit and settlement activities of the banking system. They are neither commercial organizations nor government agencies in the traditional sense of the word.

The state, as a rule, grants the right of emission to only one bank, since granting the right to issue money to all banks disrupted the country's monetary circulation. The Bank of Issue has such large funds as none of the other banks can have, since its liabilities are budgetary funds and cash in circulation.

This circumstance gives him the opportunity to provide support to all other banks and manage their activities. The issuing bank becomes the center for organizing banking in the country, around which all other banks and other credit institutions are grouped.

institutions.

Active-passive operations of the Central Bank are also built in accordance with the above functions. The most important source of its resources is the issue of banknotes, which constitutes one of the main liability items on its balance sheet. An important role in the formation of passive operations of the Central Bank is played by the balances of funds in reserve correspondent accounts of banks, accounts of government agencies and organizations, as well as capital (funds) and reserves of the bank, and other liabilities.

Among active operations, the most significant are operations with government securities, investments in gold and foreign exchange assets and cash, loan and rediscount operations.

Historically, issuing banks arose as private or public banks that issued banknotes and had their own clientele.

Subsequently, the issuing right became the exclusive power of the state; issuing banks reduced the scale of operations with ordinary clients, turning into central banks and becoming “banks of banks.” In practice, this means that all cash reserves are concentrated in the Central Bank and their receipt in economic turnover

In parallel with the evolution of the functions of banks of issue, there was a modification of the organizational forms of their activities, which was reflected in the change in the legal status of these institutions. In some countries, central banks were nationalized and turned into unitary state entities, while in others they formally retained independence from the state, having the status of joint-stock companies, voluntary associations (associative type) of independent banks, or other associations of banks and non-banking institutions.

However, whatever the share of state participation in the formation of the capital of the Central Bank (5 or 100%), it acts within strictly limited limits as a state (or state-authorized) body regulating the activities of banks, as well as the functioning of the credit system as a whole, and is the conductor of state economic policy in the credit system.

The main legal forms for organizing the activities of the Central Bank in modern conditions are:

unitary Central Bank with 100% state participation in the formation of its capital;

a joint stock company, part of the shares of which belongs to the state (or without state participation);

association of an associative type (with or without the participation of government agencies);

management and planning of directions and scales of use of credit resources and money circulation (which for a long time had the form of credit and cash planning);

concentration of credit resources and transferring them for a fee to other banks;

organization and implementation (together with relevant organizations) of collection of cash proceeds;

licensing of banking activities, selection of forms and methods of monetary regulation, fixation and revision

current regulatory requirements, coefficients and direct quantitative restrictions on the activities of banks;

organization, implementation of cash execution of the state budget; » development of rules and procedures for carrying out transactions with currency and other currency values, implementation of a single monetary policy, determination official rate foreign currencies to the national currency;

representation of the country's interests in relations with central banks of other states and international monetary and financial organizations and banks;

organization of payments;

implementation of measures to strengthen the material and technical base of banking activities and automation of banking operations;

control and supervision of banking activities;

drawing up a consolidated balance sheet of the banking system;

training and retraining of personnel for the banking system, consulting and methodological services to banks;

conducting scientific research and analytical work.

The organizational structure of the Central Bank is represented by its main management bodies, as well as services and divisions, each of which is vested with appropriate powers and performs strictly defined functions (Fig. 2). In the case of organizing a bank in the form joint stock company governing bodies characteristic of blacks are created (for example, an audit commission, a supervisory board, etc.).