A Note on Russia's Merchandise Balance and Balance of Payments During the Industrialization Era

Russia's balance of trade (torgovyi balans) and balance of payments (raschetnyi balans) were matters of great concern to the tsarist government before and after the introduction of the gold standard in 1897. Tsarist officials feared that the gold reserves required to maintain (or to go on) the gold standard would be lost if payments abroad exceeded receipts. Moreover, there was concern over the potential loss of political and economic independence if the government had to borrow abroad regularly in order to cover international payments deficits. Russia's foreign policy toward France and Germany was affected significantly by this consideration. Thus, considerable importance rested on the reported estimates of these two balances.