Chervontsy in the Russian Empire
(Chervontsy is the plural of chervonets)Ducats of foreign coinage
In 1252, Florence, Italy issued a gold coin of 3.537 grams, which was soon called ''"'' florin”. A similar coin, the genovino, began to be minted in Genoa, Italy. In 1284, Venice followed by example, these coins are known asChervontsy of Russian coinage
Beginning with Ivan III until Peter the Great, gold coins that were minted were known as chervontsy or chervony, but they were used mainly as award medals. Depicted on them were either a two-headed eagle on both sides, or a tsarist portrait and a two-headed eagle. As a result of the monetary reform of Peter I in Russia, a new monetary system was introduced and the first gold coins, chervontsy appeared. In their weight (3.47 g) and lloysample (986), they fully corresponded to the Hungarian ducat (golden Ugric). Also, these coins were issued in denominations of two chervonets with a mass of 6.94 g. 118 copies of the first chervontsy were issued in 1701. Chervontsy were usually only used in trade with foreigners. The Chervonets of 1706 (the date is in letters) is the only known copy in gold. From the collection of Biron the coin got to a museum in Vienna. Although gold chervonsty from 1706 exists in private collections in Russia, these were both removed from pendants, thus without flaws. In the Hermitage there is a copy in low-grade silver, which is authentic (tested by Udzenikov). The known replica of this chervonets are made of high-grade silver and copper. B.S. Yusupov noted in his book, "The Coins of the Russian Empire" (Kazan, 1999, p. 231) that before the silver chervonets of 1706 were known as a shestak. Today, the low-grade silver chervonets of 1706 is an unidentified coin in the Russian numismatics system. When confirming a sample of silver about 210, it should be recognized as the first shestak. There are two types of hestakcoins: without the medal on the chest and with the medal on the chest. On each form there are several variants of stamps with small differences in details. The cost of a new copy in high-grade silver in 2010 is about 50 thousand rubles.The description of a 1706-year old chervonets (1707 model) with the letters of the engraver, IL-L. In the domestic market, gold chervontsy were traded at a rate of 2 rubles and 20 kopecks to 2 rubles 30 kopecks. Under Peter I, the chervonets were minted from 1701 to 1716. Then, for gold use in the country, gold coins with a face value of two rubles with a smaller breakdown were minted. They portrayed the patron of Russia, Saint Andrew I. The coining of the chervonets was renewed by Peter II in 1729. During the reign of Elizabeth, chervonetz had in addition to the year, information about the month and, more rarely, the date of coinage were given. On the reverse of Elizaveta Petrovna's chervonets there is a coat of arms, a two-headed eagle, and on the reverse of a double chervonets is the image of St. Andrew. WithPlatinum Chervontsy
Platinum coins were minted in Russia in the middle of the 19th century, they were sometimes called white or Ural chervontsy. By 1827, the Russian treasury had accumulated large reserves of platinum, extracted from the Ural mountains. Its quantity was so great that the selling of them would crumble the metals market, so it was decided to put them into circulation. Count Georg Ludwig Cancrin was the originator of platinum coins. The coins were made of untreated platinum (97%), and were minted from 1828 to 1845 with denominations of 3, 6, and 12 rubles. Such unusual denominations in Russia appeared for the convenience of coinage, their sizes was chosen to be the equivalent of a 25 kopeck, a half ruble coin, and one ruble coin, the amount of metal in the coins with the equivalent amount of metal. In the first case of this coinage, all coins were minted entirely out of platinum. Before that, platinum was used to produce coins only as a ligature (in metallurgy) to gold or copper (with the counterfeiting of coins).Dutch ducats of Russian coinage
Exact replicas of Dutch ducats (chervontsy) were secretly minted from 1735 to 1868 at the St. Petersburg Mint. In official documents, these coins were known as “famous coins”. Initially, the coins were intended only for foreign payments and salary payments to Russian troops who were conducting military operations in Central Asia, the Caucasus and Poland. Eventually, the coins fell into internal circulation in these places. Local names were used - ''lobanchik, arapchik, and puchkovyi'' (from the depiction of the soldier on the coin clutching arrows). These ducats were taken out of circulation in Holland in 1849 (this is the last date on the Russian copies), and in Russia they ceased to be minted in 1868 after the protest of the Dutch government.Imperial
In 1898–1911 under Nicholas II, gold coins were minted from the alloy of 900 samples with values of 5, 7.5, 10 and 15 rubles. The content of pure gold in the 10 ruble coin was, 1 spool and 78.24 shares (7.74235 g). The total weight of the coin was 8.6 g. The coins in denominations of 15 and 7.5 rubles were called, respectively, imperial and semi-imperial. After the monetary reform of 1922–1924, coins with a value of 10 rubles were called “chervonets”, even though in reality they were not. This name entrenched itself because the chervonets began to be called the base monetary unit first in the RSFSR, and then the USSR, it was equivalent to 10 Soviet rubles and like the tsarist ten-ruble coin, contained 7.74235 g of gold.Chervonets in Soviet Russia
The first years of Soviet power were marked by the disorder of the money circulation system and the high rate of inflation. In the sphere of circulation there were tsarist credit tickets, Duma money, "kerenki", securities and "Sovznak", which did not enjoy the confidence of the population. The first denomination in 1922 (the exchange was made against 1:10,000) ordered the monetary system, but could not stop inflation. At the 11th Congress of the RCP (B.), it was decided to create a stable Soviet currency, the resolution of the Congress stated: For this moment, it is necessary, without in the least setting the task of an immediate return to the golden appeal, to firmly establish that our economic and financial policies are resolutely oriented towards restoring the gold provision of money. There was a discussion about how to name new money. There were proposals to abandon old names and introduce new, "revolutionary" ones. For example, the workers of the People's Commissariat of Finance proposed calling the unit of hard Soviet currency "federal." Traditional names were also proposed: "hryvnia", " tselkovy" and "chervonets". In connection with the fact that the hryvnia called money, which had circulated in Ukraine under the authority of the UNR, and the "ruble" was associated with the silver ruble, it was decided to call the new money "chervontsy." In October of the same year, the State Bank was granted the right to issue banknotes in gold, with a value of , 1, 2, 5, 10, 25 and 50 chervonets. This money was completely provided by the state with reserves of precious metals and foreign currency, goods and bills of reliable enterprises. Already before their release, the pre-revolutionary gold ruble became the basis for financial calculations in the RSFSR, and in 1922 it was legalized as a payment instrument. November 27, 1922 began the circulation of banknotes in denominations of 1, 3, 5, 10 and 25 chervontsy. From the denominations in , 2 and 50 chervontsy it was decided to be refused. Although, in 1928 a note with value of 2 chervontsy went into circulation. On banknotes it was recorded that 1 chervonets contains 1 spool and 78.24 shares (7.74 grams) of pure gold, and that "the beginning of the exchange is established by a special governmental act". The gold ten was estimated at the market of 12,500 rubles. Soviet signs of 1922, the State Bank who was guided by the conjuncture, estimated one chervonetz at 11,400 rubles with Sovznak, which is somewhat lower than the price of a gold ten-ruble. Chervonets was met with confidence by the population and was viewed rather not as a medium of circulation, but as a non-monetary security. Many expected that there would be an exchange of paper chervonets for gold, although no government act on the free exchange of chervonets for gold did not work out. Nevertheless, the population changed paper chervontsy to royal gold coins and vice versa, sometimes even with a small overpayment for paper chervontsy (due to the convenience of liquidity and storage). Thanks to this, the course of the chervonetz remained stable, which gave a solid foundation for the deployment of the NEP. There is an opinion that the introduction of "solid" money meant the fiasco of the Bolshevik social experiment five years after its inception.Strengthening of the chervonets
During 1923, the share of chervonets in the total money supply increased from 3% to 80%. Two currency systems operated within the country: the State Bank, who announced a new exchange rate of chervonets daily against the ruble, which created speculation and created difficulties for the development of trade and economic activity. Chervonets became predominantly a city currency. In the village, only well-off peasants could afford to purchase it, while for the mass of peasants it was too expensive. At the same time, it was believed that it was unprofitable to sell their goods for Sovznaks, and this led to an increase in the prices of agricultural products and a reduction in their supply to the city. This was the reason for the second denomination (1:100) ruble. Gradually, the chervonets began to penetrate foreign markets. Since April 1, 1924, the course of the chervonets is quoted on the New York Stock Exchange. Throughout April, the chervonets stood at a level higher than its dollar parity. In 1924–1925, informal transactions with chervonets were carried out in London and Berlin. At the end of 1925 the question of its quotation on the Vienna Stock Exchange was solved in principle. By that time, the chervonets was officially quoted in Milan, Riga, Rome, Constantinople, Tehran, and Shanghai. The Soviet chervonets could be exchanged or purchased in countries practically all over the world.Golden Chervonets
Simultaneously with the release of paper chervonets, in October 1922 a decision was made to issue chervonets in the form of coins. According to its weight characteristics (8.6 g, 900 sample) and the size of the chervonets, it fully corresponded to the pre-revolutionary coin of 10 rubles. The artist of the drawing was the chief medalist of the mint, A. F. Vasyutinskiy (also the author of the final version of the Order of Lenin and the first badge of the TRP). The face side of the coin depicted the emblem of the RSFSR; on the reverse was a farmer-sower, modeled from the sculpture, I. D. Shadra (the model was two peasants in the village of Pragovaya Shadrinsky Perfiliya Petrovich Kalganov and Kipriyan Kirillovich Avdeev), which now are in the Tretyakov Gallery. All the chervontsy of this period are dated from 1923. Metal chervonets were mainly used by the Soviet government for foreign trade operations, but some of the coins also had circulation within Russia. Coins were usually issued in Moscow and from there spread throughout the country. With the beginning of the issue of metal gold chervonets for calculations with foreign countries, this incident is connected: Western countries have resolutely refused to accept these coins, since they depicted Soviet symbols. The exit was found instantly – the Soviet Mint began issuing a gold chervonts sample of Nicholas II, unconditionally accepted abroad. Thus, the Soviet government bought the necessary goods abroad for coins depicting the deposed tsar. In 1924, after the formation of the USSR, it was decided to issue a new type of coins, on which the coat of arms of the RSFSR was replaced by the USSR coat of arms, but only test specimens were issued, they were dated 1925 and had exceptional rarity. The refusal of the metal chervonets was explained by the fact that the financial system of the country was sufficiently strong enough to give up free circulation of gold. In addition, abroad, seeing the strengthening of the chervonets, traders refused to calculate in a gold coin in favor of gold bars or foreign currency.After the NEP
The collapse of NEP and the beginning of industrialization made the metal chervonets unnecessary for the economic system of the USSR. The course of the chervonets fell to 5.4 rubles per dollar and subsequently ceased to be quoted abroad. In order to unify the financial system, the ruble was tied to a paper chervontsy. Already in 1925, one chervonets was equal to 10 rubles. Subsequently, the import and export of gold chervonets from the USSR was banned. In 1937 a new series of banknotes in denominations of 1, 3, 5 and 10 chervonets were issued. They were the first to show a portrait of Lenin. This was an exceptionally rare sample of copper for 1925; in all respects it was completely identical to a similar gold coin. In April 2008 it was sold at a Moscow auction for 5 million rubles (about $165,000).The 1980 Olympics
From 1975 to 1982, the State Bank of the USSR issued the 1923 model of the chervonets coin with the emblem of the RSFSR and new dates, there were a total of 7,350,000 copies in circulation. It is believed that the issue of these coins were timed to the Olympics in Moscow (1980). These coins were also a legal means of payment, and mandatory for admission throughout the USSR, such as jubilee coins made of precious metals. They were sold to foreign tourists and used in foreign trade operations. Since the mid 1990s, the "Olympic chervontsy" have been sold by the Central Bank as investment coins. By the decision of the Central Bank in 2001 they were made a legal tender in the territory of the Russian Federation together with a silver coin with a nominal value of 3 rubles known as "Sable". At the moment, "newly-made" chervontsy were used as investment coins and were implemented by a number of banks – both Russian and foreign.Uses of the word
* Today, in everyday life "Chervontsy" or "chirikami" are called banknotes with a nominal value of ten units. This applies not only to Russian, Tajik, and Transnistrian rubles, but also to modern banknotes with values of 10 hryvnias, euros or dollars. Among other things, having a reddish tinge, distinguished Tsarist and Soviet as banknotes with a face value of 10 rubles. * In Russian criminal argot, "chervonets" refers to ten years of imprisonment. * The saying, "''I'm not a chervonets, to please everyone''" reflects the high value of the gold coin with this denomination. * In Mikhail Bulgakov's play "Zoikin's Flat" (1926), Soviet chervontsy in the Nepmen slang of the 1920s are called "worms" (''chervi'' or ''chervyaki'' in Russian) as a play on words.Pre-revolutionary chervonets
The term comes from Polish '' czerwony złoty''. Before the reign ofSoviet Union
New Economic Policy (NEP)
In 1922, during the1930s and later
In 1937 one-, three-, five-, and ten-chervonets banknotes in new design were issued, and Lenin's portrait first appeared on chervonets banknotes. But inscription on gold equivalent of chervonets was replaced with information that banknotes are backed with gold, precious metals and other assets of the State Bank. The chervonets was suspended entirely after the monetary reform of 1947. However, a large number of golden chervontsy were struck in the 1920s design before theSee also
*Footnotes
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