How Nicholas II Created The World’s Largest Bank

In any country in the world, its national currency is one of the main guarantors of its independence. Moreover, its issuance is carried out by a central bank owned by the state. Only the United States is different. A private financial company, the US Federal Reserve, is responsible for issuing the dollar, one of the world’s primary reserve currencies. Many believe that its shareholders run the global economy. It is a little known fact that during the early 20th century, Emperor Nicholas II helped finance the authorized capital of the US Federal Reserve System [FRS].

The Russian Empire as the world arbiter

Despite the popular opinion that pre-revolutionary Russia was the gendarme of Europe, in reality it was a world power that sought not only to end wars, but also to create an international body regulating relations between countries. While on the throne, Emperor Alexander II in 1868 initiated the signing in St. Petersburg of the convention on the “rules of war”. This document, in particular, provided for a ban on the use of a number of inhumane types of weapons. Nicholas II followed the example of his grandfather by organizing the First World Peace Conference in 1899. With the active participation of the last Russian emperor, a proposal was made to create the League of Nations, the prototype of the UN. It sounds incredible, but even then, at the end of the 19th century, Nicholas II spoke from a high rostrum about the need to end the arms race.

Money is the engine of politics

Simultaneously with the discussion of the creation of the League of Nations at the beginning of the 20th century, proposals were raised for the establishment of an international financial body. Its functions were to include the regulation of financial disputes between different countries. It was then that the proposal to create the US Federal Reserve appeared. From the earliest days of its existence, this financial institution was essentially an international private bank, which was required to have its own authorized capital, denominated in gold. Today, the US dollar is not backed by either gold or the mass of commodities in the United States. But in 1913 everything was different. At the time when the FRS was created, the dollar, like the ruble, was obliged, if necessary, to be exchanged for an equivalent in gold. Not surprisingly, the US Federal Reserve had large reserves of gold as its charter capital.

Where did it come from?

Under US law, however, American banks involved in the creation of the FRS, could not utilize their gold as authorized capital. It was assumed that it would be provided by those countries, for the settlement of financial disputes between which the FRS was created. The major world powers showed little interest in the proposal to finance the authorized capital of the FRS with their own gold and foreign exchange reserves. This was done only by Emperor Nicholas II from Russia’s vast gold reserves. The contribution of the Russian Empire to the US Federal Reserve amounted to 88.8% of its authorized capital in gold! At the same time, Russia was supposed to receive 4% of the invested funds annually, as dividends. However, soon after the establishment of the FRS, the 1917 Russian Revolution broke out, and then the Imperial Family were murdered by order of the new Bolshevik regime.

The USSR, refused to recognize the debts of Tsarist Russia, and, accordingly, did not have any rights to its income from foreign assets. There was no one to pay interest to the FRS. Had the history of Russia taken a different course, perhaps today it would be the owner of the printing press of the world reserve currency.

© Paul Gilbert. 25 November 2021

The myth of hunger during the reign of Nicholas II


For many years, Soviet historiography was dominated by the notion of “eternal” famine in Imperial Russia. With this lie, the Bolsheviks tried to justify the monstrous famines of the 1920s, 30s and 40s, as well as the constant shortage of food during the Soviet years.

In fact, there were many poor harvests leading to food shortages in Russia before 1912. The largest of them was in 1891, during the reign of Emperor Alexander III (1845-1894). This was the result of a global agrarian crisis in the 1880s, which also affected England, France, Germany, and parts of the United States. The terrible famine in Ireland between 1845-1850, claimed the lives of 1.5 million people. By the beginning of the twentieth century, the consequences of this famine reduced the Irish population by more than 30%.

The crop failure of 1891-92, was caused by severe drought. It affected 25 provinces in the Russian Empire. Between 1891-92, some 30 million people were starving. In 1897, another crop failure in 18 provinces was again caused by drought, worsened by an unfavorable winter, and an invasion of insect pests. Between 1897-98, 27 million people were starving.

In the summer of 1905, there was a subsidence in the Chernozem, Volga, Trans-Volga, and eastern provinces. The crop failures mainly affected traditionally agricultural areas, which, according to official data from the Ministry of Internal Affairs, occupied up to 43% of all arable land in Russia. The last “royal” crop failure occurred in 1911 – it was a reflection of a serious pan-European crop failure due to drought. The crop failure covered a vast territory: all the districts of the Astrakhan, Orenburg, Samara, Saratov, Simbirsk and Ufa provinces, as well as many districts of the Vyatka, Kazan, Nizhny Novgorod, Penza, Perm provinces and the Don Army Region, affecting more than 20 million people in one way or another. In the affected areas, only 1/3 of the grain harvest was harvested against the annual average.

However, it should be noted that crop failures and malnutrition in Imperial Russia did not lead to mass mortality. All the Bolshevik allegations that up to 4 million people a year allegedly starved to death in Russia are an outright lie, which is based on false “annual reports of the College of the Life Chancellery.” It is worth noting that such a body did not even exist in the Russian Empire.


Minister of Agriculture and State Property Aleksei Sergeevich Ermolov (1847-1917)

Between 1892-1905, Minister of Agriculture and State Property Aleksei Sergeevich Ermolov (1847-1917), then the head of the Central Committee for the provision of medical and food assistance to the population, wrote that “not a single death from starvation, or from the complete absence of any food, not to mention the cases of suicides or murders of children due to hunger, were not recorded any where.” Ermolov noted that the population growth in 1906-07 in some provinces (Oryol, Tambov, Ufa) surpassed that of the previous year.

There is no data on deaths due to starvation among Soviet and Russian demographers. In his studies, Russian demographer Adolf Grigorievich Rashin (1888-1960) argued that in the period from 1890-1913 mortality steadily decreased: from 36.7 deaths per 1000 population in 1890 to 27.4 per 1000 population in 1913.

The multi volume work Население России в ХХ веке (The Population of Russia in the 20th Century) unequivocally states that “by 1913 all regions of European Russia reported a significant increase in population”. The Chernozem region and the Volga region, experienced one of the highest rates of population growth in the Empire.

In 1907 a very high natural population growth was recorded (18.1%), 1911 (17%) and 1912 (16.9%). The lowest increase in the first 15 years of the twentieth century was recorded during the troubled year of 1905 (13.9%).

During the alleged “great famine” of 1911-1912, the population grew by more than 3 million people. You can compare this to data on the years of the Soviet famines (1921-22, 1931-33, 1946-48): which resulted in complete cessation of the country’s population growth, and a sharp decline in life expectancy.


Hundreds of corpses piled up at the local cemetery, during the 1921 Famine in Russia

Thus, the only conclusion that can be made: after the famine of 1891-92, which was accompanied by an acute epidemic of cholera, the Russian Empire did not entail any “starvation deaths”.

It should be noted that the Imperial Government made great effort to combat the effects of crop failures.

In 1897, loans amounting to 5.4 million rubles were granted from the All-Empire capital, in 1898 – 35.2 million (34.4 million poods were purchased for the foodstuffs of the population – bread, and support of cattle breeding by peasants), public works were organized, in particular, the transportation by peasants of grain purchased by the government to provide bread for the hungry.

The death of horses caused by the lack of fodder was compensated by the purchase of horses from the steppe inhabitants of the local breeds and their delivery on favorable terms by the beginning of field work. The supply of feed to needy households was carried out on a “loan basis” (with payment over 3-5 years), in 1898 7 million rubles were spent on these needs.

In the canteens opened by the Red Cross, up to 1.5 million people were fed, mainly women, children, old people and the weak, but in exceptional cases, able-bodied men (in the absence of earnings), more than 2 million received rations.


Canteen to feed the hungry in Nizhni Novgorod province, during the famine of 1891-1892

The Guardianship of Diligence and Workers’ Houses, created at the initiative of Empress Alexandra Feodorovna, began to take effect. Among the private philanthropists, the Bessarabian landowner Purishkevich was especially distinguished – thanks to his ebullient activity, some 20 canteens were opened, financed with donations and thereby saving hundreds of people from starvation. His efforts were noticed and greatly appreciated in St. Petersburg.

Everywhere where hunger arose, food centers were opened for children, women, and those incapable of work, each of which fed up to 1000 people.

According to observers, “the food campaign of 1906-1907. was carried out by the Food Department of the Ministry of Internal Affairs with much success.

At the same time, charitable organizations actively supported the hungry. One branch of the Red Cross, with the assistance of local authorities, opened free canteens and food outlets, which issued 270 million meals and rations during the famine. The Holy Synod introduced a gathering for the hungry on all Sundays and twelve feasts.

Private charity played an increasingly significant role. Numerous private trusteeships, local societies, unions, and committees were established. The assistance offered by  “private owners” turned out to be of great help to the state, whose stocks were greatly depleted as early as 1905.

For the supply of feed during the crop failure of 1911-12, the government spent 9-12 million rubles, issued loans for food (for example, in Siberia they issued 300 rubles per cow allowance), 16 thousand horses were distributed on favorable terms. Public work for peasants as an experiment decided this time to make the main form of assistance. 42 million rubles were allocated for their implementation, with 84% of the amount spent on wages. The hungry were provided with 222 million meals, under the guidance of priests and teachers in the Volga region alone, more than 7 thousand canteens were opened in schools, where 24 million lunches were provided to children. In general, the campaign was carried out at on a gargantuan level – and it is interesting to note that the state, who were in full control over the situation in both 1901 and 1911, managed to prevent starvation.

Thus, it can be seen that by the beginning of the twentieth century, the state had formed an integrated system of redistribution of food resources, which functioned effectively during periods of crop failure and with the depletion of bread in peasant farms. In addition, measures were constantly taken to support residents of the territories affected by crop failure. The Russian public actively participated in helping the victims, which caused widespread development of charity, and the formation of effective structures for providing assistance to the population. After 1892, deaths from starvation were avoided even under the most unfavorable conditions (such as the “revolutionary situation” of the mid-1900s).

Source: Petr Multatuli

© Paul Gilbert. 27 April 2020

God, Save the Tsar! Боже, Царя храни!


Imperial Anthem of the Russian Empire

God, Save the Tsar! (Russian: Боже, Царя храни!; transliteration: Bozhe, Tsarya khrani!) was the national anthem of the former Russian Empire. The song was chosen from a competition held in 1833 and was first performed on 6th December (O.S. 23 November) 1833. The composer was violinist Alexei Lvov, and the lyrics were by the court poet Vasily Zhukovsky. 

In 1833, Tsar Nicholas I (1796-1855) ordered Count Alexey Fyodorovich Lvov (1799-1870), the violinist and army general who was his court composer and aide-de-camp, to compose new music to replace the air that since 1816 had served as the music for the Russian Empire’s Anthem God Save the Tsar, namely Henry Hugh Carey’s God, Save the King. The lyrics of “God Save the Tsar” (Bozhe Tsarya Khranii) date from 1815 and came from Prayers of the Russian People by Vasily Andreyevich Zhukovsky (1783-1852), an officer and poet who served as tutor to the Tsesarevich Alexander Nikolayevich, the future Tsar-Liberator Alexander II.

After some initial creative difficulties, the melody that would serve as the anthem of the Russian Empire for the remainder of its existence came to Lvov in the course of a single night’s inspiration; he succeeded in creating a work of majesty and power that was suitable for the army, the church and the people – indeed, for the entire realm. None other than the great Alexander Pushkin himself reworked Zhukovsky’s verses to adapt them to Lvov’s new hymn. It was the first national anthem in Russian history to feature music and lyrics by Russian authors.

Upon hearing its beautiful strains for the first time, Nicholas I ordered the work repeated several times. At the close of the final rendition, the Tsar – a stern and military-minded ruler who was to be vilified by Karl Marx and Friedrich Engels as the “Gendarme of Europe” for his crushing of the forces of revolution wherever they appeared – clasped the composer’s hand with tears in his eyes and uttered the single word: “Splendid!”

The public premier of God, Save the Tsar took place on 6 December (O.S. 23rd November) 1833 at the Bolshoi Theater in Moscow, where it was performed by a choir of one hundred singers and two military bands. At Christmas that same year, by the Tsar’s personal order it was performed by military bands in every hall of the Winter Palace in Saint Petersburg. A week later, the Emperor issued a decree declaring the anthem a “civil prayer” to be performed at all parades and official ceremonies. As was the case with the Preobrazhensky March, the most widely-used arrangement for military band of God, Save the Tsar was created by Ferdinand Haase; it was the shortest anthem in the world at eight lines.

During the Coronation of Tsar Alexander II in 1855, Lvov led one thousand singers and two thousand musicians in a rendition of God Save the Tsar, the first performance of the anthem at a coronation. As Lvov directed the choir and orchestra, he, by means of galvanic batteries, set off forty-nine cannons, one by one, sometimes on the beat. At the conclusion, hundreds of Roman candles and rockets soared into the sky.

God, Save the Tsar! remained the Russian Empire’s national hymn until the February Revolution of 1917, after which the Worker’s Marseillaise was adopted as the new national anthem until the overthrow of the Russian Provisional Government in October of the same year.

Sources: Brandenburg Historica; Scenarios of Power (Wortman, Richard S.)




Боже, Царя храни!
Сильный, державный,
Царствуй на славу, на славу нам!

Царствуй на страх врагам,
Царь православный!
Боже, Царя храни!

English translation

God, save the Tsar!
Strong, sovereign,
Reign for glory, For our glory!

Reign to foes’ fear,
Orthodox Tsar.
God, save the Tsar!

Below, are a selection of videos which present a variety of renditions of God, Save the Tsar! Боже, Царя храни!, performed by Russian Orthodox and professional choir ensembles – courtesy of YouTube:

1. Beautiful rendition of God, Save the Tsar! with vintage newsreels of the Imperial family. Duration: 2 minutes, 38 seconds

2. Performed by the Kuban Cossack Choir. Duration: 1 minute, 38 seconds

3. Performed by the Mikhailovsky Theatre Orchestra and Choir. Duration: 1 minute, 46 seconds

4. Performed by Varya Strizhak. Duration: 3 minutes, 19 seconds

5. Performed by the Moscow Philharmonic Orchestra, and the State Academic Choir. Duration: 2 minutes, 33 seconds

6. Performed by the Alexander Nevsky Lavra Choir. Duration: 2 minutes, 10 seconds

7. Performed by The Royal Scots Dragoon Guards. Duration: 1 minute, 4 seconds

8. Performed by the Columbia Military Band in 1914. Duration: 3 minutes, 16 seconds


© Paul Gilbert. 11 January 2020