Nikolaj Bunge

Picture of Nikolaj Bunge

Date of Birth: 11/11/1823

Age: 71

Place of birth: Kiev

Citizenship: Ukraine


Bunge, Nikolai Hristianovich - financier, economist and statesman (1823 - 95), comes from the nobility evangelical confession, was born in Kiev, where his father was considered an experienced physician for childhood diseases; education in the 1st Kiev Gymnasium and the University of St. Vladimir, where he completed the course in 1845. At the same time, Bunge was determined by the teacher of the Lyceum Bezborodko Prince, and on protection in 1847 master`s thesis "The study began commercial law of Peter the Great" ( " Domestic Notes ", 1850) was approved by the professor of the Lyceum. In the dark Nezhin backwater it was hot as a missionary of European science and citizenship; as a professor, he was actively concerned about raising the level of his audience: to make available to their elected student treasures of European science, Bunge gave in his apartment lessons in foreign languages. This rare and lovely trait - like all young and smell all the young talented - Bunge retained and later, when (in 1850) became a professor at the University of St. Vladimir, and in this lies the clue extraordinary success of his university lectures. In 1852, Bunge was awarded Kiev University degree of Doctor of Political Sciences for his thesis "The Theory of Credit" (Kiev, 1852). In 1869 he changed the department of political economy and statistics department of police law. Police law is not Bunge whole science; in the doctrine of security (laws of decorum), he sees the state of the law, and in the study of well-being (improvement of laws) - the application of the political economy. Consistent with this, in his course "Police Law" (Kiev, 1873 - 77), which remained unfinished, and in which he could present some improvement departments, dominates economic point of view. Police law Bunge corresponds to what is currently known as economic policy. In the presentation of the theory of economic policy author is not limited to general principles, since, in his opinion, the study of some general laws without regard to the facts in which these laws are found, easily degenerates into a dry and abstract scholasticism, which might be of interest to specialists, but powerless resolve questions of life. Bunge has issued to his listeners "Course Statistics" (Kiev, in 1865; 2nd ed, 1876.) And "Foundations of Political Economy" (ib, 1870.). In the difficult days of university life, when universities were deprived of self-Bunge in the position of rector at the destination (1859 - 1862) with the advantage of standing at the head of the University of Kiev. But upon returning to universities suffrage Bunke twice been elected rector of the Kiev University and was in office from 1871 to 1875 and from 1878 to 1880. In 1880 he left the university. Bunge was one of those professors who are not confined to the blank walls of his office. he could not Boasting a bright and broad mind, not to respond to social issues that put life at all. The result was a series of articles placed them in different periodicals since 1852 These are the articles relating to the expected time of the peasant reform (in "Notes of the Fatherland", 1858 and "Russian Messenger" in 1859, number 2 and 8 ), to distribute a new kind of industrial enterprises in the form of joint-stock companies (in the "Journal for shareholders", in 1855 and 1858), and many others, among which we should note his comments about the structure of the curriculum at universities (in "Russian Messenger" in 1858 , ie. the XVII) and banking policy (in the "Collection of the State of Knowledge", vol. I, 1874). Of great practical importance and its study "Commodity stocks and warrants" (Kyiv, 1871); but we pay special attention to the study of Bunge recovery methods have proper circulation of money, shocked excessive issue of paper money. These include the works: "On the recovery of metal treatment in Russia" (Kiev, 1877); "On the reconstruction of constant currency in Russia" (Kiev, 1878) and articles in the "Collection of the State of Knowledge", ie.

VI of, 1878, and so on. The XIII, in 1880 Bunge also translated and added to the composition A. Wagner "Russian paper money" (Kiev, 1871). In 1859, when the peasant reform matured, Bunge has been invited to participate in the Finance Committee, which had its purpose priiskaniya bases and ways of final resolution of the peasant problem by purchasing plots with the assistance of the government. Again called to St. Petersburg to participate in the discussion of a new university statute (1863), Bunge was instructed to teach the science of finance and political economy heir Crown Prince Nikolai Alexandrovich. The basis of these lectures Bunge put them translated into Russian the book of Carl von Goka "Taxes and public debts" (Kiev, 1865). Upon returning to Kiev, Bunge, leaving university studies, he took over as manager of the Kiev office of the State Bank. Standing thus, at the very source of credit operations, Bunge had the opportunity in practice to check guidance theory of finance. Since that time his voice is crucial in financial matters. Bunge`s entry in 1880, the office of the Minister of Finance friend and soon after in 1881, and the Finance Minister was greeted with sympathy and great expectations. - Bunge - the Minister of Finance. Bunge had to join the management of the Ministry under very difficult circumstances. Occurring after March 1, 1881, and the reaction was reflected in the financial condition of the country. In addition, two years in succession - in 1884 and especially in 1885 - marked by the almost universal crop failure, and it caused adverse effects on industry and trade. The first budget in 1881, Bunge had to reduce a deficit in excess of 50 million rubles. The amount of public debt on January 1, 1881 has reached more than 6 billion, and would inevitably conclude a number of new loans. One of the first actions was the issue of Bunge gold 6% -s` rents in 1883, met, since an extremely high percentage, negative attitudes in society. Status of the credit ruble was very unsatisfactory. In 1881, the average ruble price was 65.8 cents in gold, in 1886 - 58.9; the balance of payments has been extremely unfavorable, and in overseas markets, especially in Berlin, made the speculation with Russian rubles and credit funds against which Bunge, guided by laissez-faire system in exchange relations, did not take appropriate action. In one of his first most loyal reports (1883) Bunge follows defined its financial program, "A careful study of the weaknesses of our political system points to the need to ensure the proper growth of the industry enough for her patronage: to strengthen credit institutions on the basis of tested experience, contributing besides cheaper credit; strengthen in the interests of the people and the state yield of railway undertakings, setting over them proper control; strengthen credit circulation totality aimed to achieve this goal gradually undertaken measures to introduce changes in the tax system, in accordance with strict justice and promising increment income without burdening taxpayers taxes and finally, to restore the surplus (without which it is impossible finance an improvement) restriction extrabudgetary loans and observance of reasonable frugality in all branches of the administration. " Because this program is definitely Bunge failed surpluses, due to significant expenses for urgent repayment of government loans. In the same time the rest of the Bunge management was really remarkable era in the history of Russian finances. One of the first events was a financial reduction of redemption payments, which Bunge considers necessary to improve the welfare of the rural population, and which is strongly caused by the fact that, in common with the peasants levied more than is paid for the obligations of the redemption operations. The decrease was made in the amount of 1 ruble each been charged with redemption payments allotment in the Great areas and by 16 kopecks to the ruble in the Little Russian localities. The total amount of reduction amounted to 12 million rubles a year. In 1885, Bunge entered the Council of State with the idea of ??ubiquitous (except for Siberia) with the abolition of January 1, 1886 the poll tax, which constituted from the time of Peter the Great cornerstone of our financial system. This measure was to reduce the resources of the State Treasury by 57 million rubles of which are supposed to compensate for the increase in the tax on alcohol (up to 9 cents per degree), and some - increase obrok taxes from the state peasants (by increasing government which in 1886 declined by 20 years). The State Council, however, decided to transfer the state peasants to ransom, which was a really nothing more than a disguised increase obrok taxes. Law of 12 June 1886 for the mandatory redemption of state peasants was installed. Cancel poll tax was to entail the abolition of collective responsibility. And in 1885, Bunge in its submission to the State Council, pointing to the devastating effects of this method of collecting taxes, calling on the one hand, "the attachment of peasants to the land of the passport system," the other - "the pursuit of unauthorized absences for priiskaniya best earnings," commented in favor of the abolition of collective responsibility. Gov`t

udarstvenny Council did not agree with the arguments of Bunge, and mutual responsibility has been left to tax replaced the poll tax. In any case, the destruction of the poll tax and a decrease in redemption payments serfs we owe exclusively Bunge, who made a very bold move, giving up income to 70 million rubles at a time when the budget deficit was giving. This is a significant reduction in revenue caused Bunge turn to other sources, and - above all - to increase taxes. So, taxes other than income taxes on alcohol (first to eight cents on the law May 19, 1881, and then to 9 cents per degree, according to the law May 18, 1885), sugar (12 May 1881) were increased at Bunge , tobacco (18 May 1882); increased stamp duty (Jan 19, 1882), increased customs duties on the import of many items, and closed transit through the Caucasus; a tax on gold mining, collators and installed additional charges of commercial and industrial enterprises (law July 5, 1884 and January 5, 1885), raising the tax to real estate in the cities (13 May 1883), and increased the land tax, entered the collection of revenue from the financial capital and tax on transfer of assets bezmezdnymi ways (gift tax and inheritance), increased taxes on foreign passports, regulate the sale pitey. However, these tax reform Bunge took care of the introduction institutapodatnyh inspectors, which was supposed to ensure a proper tax receipt. Of great importance for the further economic development of Russia were established at Bunge new public credit institution. From the point of view that economic disorder of the peasants is mainly due to failure, and low productivity of their land, the purchase of other land in the ownership seems to farmers is very difficult since it is impossible to use long-term loans, Bunge has developed the project of the state mortgage bank to facilitate farmers in the acquisition of land by them. Bank Charter was approved by the Highest May 18, 1882 loans were issued to 51/2% mortgage bonds, called 51/2% of public evidence of peasant land bank. By its very charter of the bank it had to be a mediator between farmers and landowners, have to make deals on their own initiative. And from the very beginning of the bank`s purpose, as stated in the motives of the State Council, was to consist in promoting a prosperous and having some wealth to the peasants, but land-hungry. The Bank started its activities April 10, 1883, and by the end of the Ministry of Bunge, by 1886, had at its disposal a reserve capital 467 700 rubles. In addition, the Bank also noble bank was opened, which was established specifically "to help the nobility." The idea Bunge bank had to lend only to the nobles, landowners, which are themselves hosted on their own land. But the Council of State accepted the Bunge project by eliminating any restrictions. At Bunge received strong expansion construction of state-owned railways. For this purpose, when Bunge was spent up to 133.6 million rubles; PENALTY built railways in the whole stretch of 3461 miles. In addition, the acquired treasury several lines of private companies. Bunge himself doubted that the "conversion of railways to state property once enriched the treasury", but seen that "over time, the railways can become with such a same sector of the state economy, as the Post and Telegraph." Despite the lack of a plan to buy out private road and the state railway construction and the huge deficits of the operation of the railways, it is still a lot of Bunge contributed to streamlining our railway policy, and together with it and all Russian Finance. Bunge Management Finance Ministry was marked by the triumph of protectionism. Bunge activities coincided with the nationalist course of domestic policy. The ideal of independence of the national economy, its liberation from foreign domination, to preach to the special energy of "Moscow News" and then Mendeleev, leads to higher duties requirements. The well-known influence on the direction of protectionist trade policies at Bunge had a general rise in customs enforcement wave that swept across Europe and particularly in Germany in 1879 caused significant changes in the tariff system. In 1881, allowance has been made for 10% for the whole tariff. June 16, 1884 was followed by an increase duties on iron, which is then joined by the corresponding increase in the Roller iron, steel, machinery, and so on. n. In 1884 was also established the total duty on coal differentsionalnym taxation of coal imported through the Black Sea ports, western land border. One of the major achievements as a Minister of Finance Bunge is its commitment to the introduction of our income tax. Acute financial need in the late 70`s and early 80`s, due in part Turkish war, in part a reduction of a number of public resources meant tax reform, partly bad financial management in general, put it on all the radical reform of taxation. In his most loyal report on the 1884 Bunge categorically and some form of recognized income tax is the most appropriate and fair way of taxation. But, fearing a strong break-up of economic relations,

He decided not to immediately proceed with the introduction of income tax and for the first time established a number of particular taxes that had value measures, preparing the introduction of income tax. Among Bunge reforms necessary to specify further the first step towards the regulation of factory labor, expressed in the law 1 June 1882, the beginning of a proper device municipal and private banks, put the rules April 26, 1883, the drinking and the reform of 1885 had little to ministers make as many attacks by the press, especially the "Moscow Gazette", and a few treated them so calmly, without the protection of penal administration and the limited official denials strictly factual. In January 1887, Bunge has left the post of Minister of Finance and was appointed chairman of the Committee of Ministers. Bunge was elected an honorary member of different societies, universities: Petersburg, Novorossiysk, St. Vladimir and the Academy of Sciences; in 1890 he was elected ordinary academician in political economy, and has published the book "Public accounting and financial reporting in the UK" (SPb., 1890), which is an interesting material for the study of the budget law. In compiling this book, the author used a range of practical information, delivered to him by our financial agents in Paris and London. - Bunge - economist. The main factor in the economic life of Bunge believed the rivalry. Disagreeing completely with any of the classics and finding significant irregularities in the views as hell. Smith, Ricardo, Malthus, Mill, and Carey and Bastiat, he held an eclectic point of view, mainly adjacent to the theories of Malthus and Mill. The main regulator of economic phenomena he considered supply and demand, and they explained almost all economic phenomena. This view is quite consistent and socio-political views of Bunge. For competition Bunge recognized a huge beneficial effect. Without rivalry came to a huge loss of energy. The rivalry turns disastrous when the come into force unequal struggle, on the one hand, rallied, supported monopolies, privileges, enormous capital, and on the other - fractured, deprived of any support and unsecured in their activities. Evil is, in the opinion of Bunge, not in competition, but his lack of poise. However, in the purchase of live labor, t. E. In the hiring of labor, Bunge saw nothing enslaving and degrading, because this purchase is connected with mutual benefit. State intervention in economic life Bunge allowed only in small amounts and in extreme cases. This view does not interfere, however, recognize the advisability of Bunge in the area of ??trade policy and government intervention in the field of "measures related to the strengthening of the welfare of factory workers." Practical actions Bunge when he was finance minister established his fame as a strict protectionist. In his theoretical views, set them up to date, "police regulations" Bunge is not, however, unconditional protectionist. According to Bunge believes, customs duties constitute a tax and should be regarded mainly as a file. They should as much as possible less dependent on trade agreements, must be wondering with obscheyu tax system, with the influence of the production, trade and consumption. Encouraging the industry can and should take place. But the protective tariff and benefits common to all people, give encouragement indiscriminately and therefore are not always desirable. Benefits often indicate wasteful in the public sector. Liberal tariff enhances consumption but low customs duties if high taxes are undesirable. As for the laws regarding workers, then, is based on the recognition of the beneficial effects of competition, Bunge believed that freedom of trades would be broken if the workers did not have the right to enter into agreements among themselves regarding the establishment of wages. Not agreeing with the liberal school, objected to the use of strikes, Bunge, however, not seen in the alliance of the working instincts for the proper development of social life and thought of the trade unions a step backwards compared with the medieval shops. Considering the task in the economic life of the law of freedom of outposts transactions, Bunge would not allow any limitation of private property rights. According to him, the initial acquisition of an injustice smoothed over time, as the owner puts into the land of their labor, their capital and pay taxes on the land. Economic freedom is not only contributed to raising humanity to a higher level of well-being, but also in the future should be the sine qua non for development. Capitalist production, competitive dominance give people hope for a better future and make it free. In his methodological views Bunge belonged to the historical-statistical trend in political economy, but it brought a number of limitations. Not agreeing with Roscher, Bunge believed that the historical trend can make to science and in practical life unprincipled "opportunism"; he found a dangerous lack of any kind was started, bases, rules and decision in management of historical examples, with an attempt to follow them in cases erroneously recognized uniform already living humanity. Requiring great caution in applying the deductive method, Bunge insisted Mr.

and the assimilation of the political economy of the method of positive knowledge, observation and experience. In addition to "Historical Sketch of Economic Thought", printed for the first time in 1868 and giving a summary of the teachings of the most prominent economic thinkers from the mercantilist and ending with the historical school, Bunge has given a detailed account of numerous articles specially teachings Carey ( "The Theory of the consent of private interests - the first political and economic doctrine Carey ", 1858) and Dzh.-St. Mill ( "Mill Dzh.-St. as an economist", 1868). This article, along with a small extract from the articles of Schmoller Menger attached to the "Historical Sketch of Economic Thought", and with considerable critical additions, changes and amendments were published in 1895 under the title "Sketches of political and economic literature." It was the last work of Bunge. - Wed .: P. Migulin, "Russian state credit" (I t, Kharkiv, 1899.); Kovalko, "The principal reforms undertaken NH Bunge in the financial system of Russia" (Kiev, 1901); I. Taburno, "Draft review of the financial and economic condition of Russia for the last 20 years (1882 - 1901)" (St. Petersburg, 1904.); M. Sobolev, "History of Russian customs policy" (St. Petersburg, 1911.); "Background on the introduction of income tax" (official publication); Schulze-Gaevernitz, "Essays on the social economy and the economic policy of Russia" (1901). AS Zagorskii.