Gold blockade of the USSR in the 1920th

Main article: History of Russia

Export of the Soviet gold through Sweden

After the end in Russia of civil war and foreign military intervention during which it was not succeeded to force the Soviet government to repeal decrees about cancellation of external loans and nationalization of foreign property there came queue of economic sanctions. The Soviet Russia from the main creditors of the Russian Empire — Britain, France, the USA — was subjected to "gold" and credit blockade.

In the 1920th years the Soviet gold got to the world markets through a chain of intermediaries as "Bolshevist" gold was announced "stolen" at the legal government and it was forbidden to be accepted and bought. For depersonalization and concealment of origin gold was melted into ingots, sometimes the non-standard sizes and volumes (so-called "pigs"). One of the main chains of intermediaries went through the Baltics (Revel) to neutral Sweden where gold was on sale 20-25% below than market price. On Royal mint it was melted into standard ingots and marked the Swedish brands. The Stockholm exchange was the intermediate stage and in turn sold the Soviet gold with new brands at the largest exchanges of Europe and America. And though all knew about this "transaction", accepted the "Swedish" gold.

Payment by gold of supplies of equipment from Germany

Germany was the second country which de facto could make transactions with the Soviet gold. It was connected with the fact that German enterprises in the 1920th years delivered the main volume of industrial output in RSFSR, and financial side of transactions was provided by the largest German banks.

Germany it was deep to spit on the sanction against the USSR, she was under the western sanctions and for this reason the Soviet-German economic cooperation in 1920th and 1930th prospered.

Supply of gold to the USA and its blocking by France

But also the countries initiating financial blockade of Russia did not want to miss an opportunity to earn. Banks of the USA also accepted the Soviet gold. Also France did not stand aside. It is known that in the fall of 1920 France received the "gold sendings" (6 tons coins of imperial stamping) delivered in neutral courts from Riga. Later France became transshipment terminal for supply of the Soviet gold to England and Switzerland.

The next transaction of supply of the "Soviet" gold abroad took place at the beginning of 1928. In February the new batch worth 5 million dollars intended for payment for the industrial equipment supplied to the USSR was sent to the American Chase Neyshnl bank and Ekvitebl trust of the company. But on March 6 the French ambassador in the USA sent a note to State department in which demanded seizure of the gold deposited in the American banks as before revolution of 1917. Banc de Frans had on the account in the State Bank of the Russian Empire 52 million francs. Because of the arisen dispute the American government prohibited transaction implementation.

Redirection of gold from the USA to Germany

But at the same time nobody interfered with export of the Soviet gold to Germany. On April 6, 1928 gold was sent to Europe by the first German steamship. At the same time the Soviet officials did not consider that on the way the vessel comes into one of the French ports where gold can arrest. It led to the fact that gold had to be overloaded directly in the high sea on other ship going directly to Germany. As a result of April 18 the Soviet gold was delivered to Bremen. In turn Banc de Frans promised to submit the legal claim on actions of the American banks.

Why these events became possible? All knew that in 1920 the American treasury developed a form of the certificate on the property right to gold which all importers of gold at delivery had to fill it on United States Mint. In this document the importer guaranteed that the transferred gold "does not proceed from Bolsheviks and never was in ownership of the so-called Bolshevist Government of the Russian Federation". But the Soviet officials, first, considered that the order of treasury does not work any more as during hunger of 1921 there was already a delivery precedent when the American side accepted the Russian gold in payment for bread. And secondly, hoped for the promises made in the telegram of the French prime minister E. Errio in 1924 that the debt problem will be solved not between separate subjects, and between the governments. But these assumptions were wrong.

There was one more party in this story. Urgent sending gold from the USA was required also because the Soviet part knew of intention of Romania to work together with France. On April 2 the message from Washington that "the Romanian Embassy is ready to plead at the bar" in the case of the Soviet gold was published, i.e. Romania was ready to demand return of the gold of the Romanian treasury sent to Russia in the years of World War I to 117 million rubles from the USSR (by the way, Romania still does not abandon the claims).

Why France hunted for the Soviet gold

During the conflict very active correspondence between the Soviet and French diplomats was conducted. On March 13, 1928 the Soviet Plenipotentiary Representative in France V. Dovgalevsky met the secretary general of the Ministry of Foreign Affairs of France Bertelo. In a conversation the question that requirements of Banc de Frans appeared at the difficult moment of a break in the French-Soviet negotiations and this action was raised can undermine all already spent efforts in a root and "threaten further development of the French-Soviet economic relations". Negotiations about which Dovgalevsky spoke took place in 1926-1927 and concerned a burning issue about repayment of the Russian pre-revolutionary debts. It would seem, the parties reached basic consent, but internal political fight in the USSR led to H. Rakovsky (supporter L. Trotsky's) removal, appointment instead of it of Dovgalevsky and "freezing" of negotiations.

On March 18 the Foreign Commissar of the USSR G. Chicherin talked to the ambassador of France in the USSR Erbert. The last asked to show it the contract of the Soviet government with Farkuar. The people's commissar answered that in a situation which is created by "the French action in America" it can mean receiving from the Soviet part of concessions. In that case the Soviet part cannot go to it. Why the French side was interested in the agreement with Farkuar? It concerned one more matter of argument — postrevolutionary nationalization of the industry in Russia.

The matter is that one of directors of the American-Russian chamber of commerce P. Farkuar got up at the head of group of the American and German industrialists who were ready to take in concession steel works in Makiivka (Donbass) and to grant the USSR a loan for 40 million dollars for equipment procurement. In September, 1927 Chicherin wrote I. Stalin about it: "The conclusion us this agreement with Farkuar with receiving 40 million dollars by us will be this detonated bomb which will affect in the strongest way both England, and to France". But after prolonged negotiations concession did not take place. But if the French side had also not a direct bearing on such final then in every possible way tried to prevent this project as the steel works in Makiivka belonged to the French in due time.

Continuation of supply of gold to Germany

Still it was told about one party of "gold" transaction to the national commissioner of foreign affairs of the USSR G.V. Chicherin in the confidential letter of the Plenipotentiary Representative of the USSR in Germany N.N. Krestinsky of March 26, 1928: "You know that the transaction on sale through Deutsche Bank to Reykhsbank of our, being in America gold, was concluded prior to the Donetsk conflict. When it became clear that the American gold will not manage to be released so soon, from Moscow decided to send to execution of the transaction about Deutsche Bank a new batch of gold".

Also it was decided to discuss with Deutsche Bank two issues: first, it was necessary to agree about that "the transaction on purchase of the "American" gold was upheld", besides, Deutsche Bank needed to sell the second lot of gold "without purpose of a certain term of delivery of this gold".

Secondly, the Arcus which conducted these negotiations had to persuade Deutsche Bank on issue of advance payment to the State Bank "under the gold sold already and directed from Moscow". The Soviet trade mission wanted to receive this advance under the gold which is already submerged on the steamship. Krestinsky considered that at those relations which "existed still between the State Bank, of course, both of ours desires would be easily met by Reykhsbank and Deutsche Bank, but in view of existence of the conflict Deutsche Bank both offers of t. An arcus rejected". It motivated the first failure with unwillingness to enter the direct conflict with Banc de Frans, the second — having referred to the adverse moment and unwillingness of Deutsche Bank to take the risk, "giving advance payment under the gold which is not handed over to it still".

With respect thereto process of sending gold to Germany considerably became complicated. Earlier the State Bank quietly sent gold to Germany, knowing that "nobody will risk to impose it arrest and if someone and tried, then the German court will reject similar attempt at once". In a new situation the Soviet trade mission "long and in details" discussed an issue, "from whose name and to whose address to send gold, and eventually sent not all batch, and only a half at once — "to test".

At discussion of a question of sending gold the Soviet diplomats considered inconvenient to consult on the German side because of fear possible "complications in the German territory and by that, maybe, would provoke somebody to these or those actions". But everything came to the end safely. The first batch of gold came on March 25 and was at once handed over in Hamburg to Reykhsbank, and next day "under it according to the agreement 90% of the price are received already". In three years the Bank of France achieved consideration of the claim against Chase Neyshenl of bank and Ekvitebl trust of the company. In April-May, 1931 in district court of the USA of the Southern federal district of New York the hearings of the case of the Soviet gold took place. As a result the judge made the decision "about failure in the claim for a being with assignment on the claimant of costs.

Stalin uses a story with "gold transaction" in fight against Bukharin

Transition to violent withdrawal of bread in the village in the winter of 1928 became one of turning points in domestic policy, the marking decline of a nepovsky era. The events connected with this turn caused the next split in the ranks of ruling party and a design of the new oppositional current which received the name "right bias" in official historical and party literature. The first massive attack of fraction of supporters of I.V. Stalin against the "deviators" headed by N.I. Bukharin, A.I. Rykov and M.P. Tomsky was undertaken in days of work April (1929) Central Committees and TsKK All-Union Communist Party (bolsheviks) Integrated a plenum. N.I. Bukharin's figure became one of the most convenient targets for supporters of "philosophy".

Its contacts in July, 1928 with L.B. Kamenev - one of leaders of "new opposition", shortly before that got beaten in inner-party fight where future opponents acted with the integrated front were the cause. "Right" tried to be protected actively and in turn showed reproaches to the opponents. In particular, N.I. Bukharin and A.I. Rykov accused I.V. Stalin that the major political decisions are made by him only in a circle of the closest supporters.

Stalin in a performance was forced to answer on April 22 criticism. At the same time he put forward counter-claims and in turn accused the opponents of violation of collective nature in work of the top management. Among the examples given by it two appeared, directly connected with activity of the State Bank of the USSR. On one of them we here will also stop. Addressing delegates of a plenum, Stalin reminded: "You know a story with export of gold to America. Many of you think, maybe, that gold was taken out to America according to the decision of the Central Committee, either with the consent of the Central Committee, or with the consent of the Central Committee. But it is incorrect, companions. The Central Committee has no relation to this Case. We have a decision that gold cannot be exported without sanction of the Politburo. However this Solution was violated. You know, how many works we should have scratched this gold and to import it back into the USSR. Who permitted its export? It appears, gold was exported with the permission of one of deputies comrades Rykov. Whether knew about this comrade. Roars? It must be assumed that knew. Otherwise, what it predsovnarkoma?".

Obviously follows from a context that rescue of gold was put by the speaker down to credit to itself and the supporters. Authors of detailed comments on the published shorthand report of a plenum, having recognized as necessary to offer to this fragment of the Stalin speech an explanation, specified only general information about large-scale sale of gold abroad, having recognized at the same time that "specific data on export of gold in the USA are not detected".

The representative of the State Bank of the USSR in the USA Korobkov is sentenced to 10 years

According to assurances of the representative of the State Bank of the USSR of the USA V.S. Korobkov, he for the purpose of precaution asked Moscow about a gold prisylka with "not Soviet brand". Such gold was also sent to Germany, but owing to the directives which are out of time received by our representative is sold in Berlin. Gold with the Soviet brand was sent to the USA. Official Moscow claimed that the gold sent to the USA - production of 1925-1927.

During the cleaning of the Soviet state machinery (1929-1932) which affected and the State Bank of the USSR, many were subjected to persecution and prosecutions "bourgeois specialists", among them and V.S. Korobkov. In the protocol of the central commission on cleaning of the office of the State Bank of the USSR of the June 30, 1930 one of counts shown it it appeared: "Insisted in 28 g on delivery to America of gold, did not treat it with due thoughtfulness and care therefore 10 it is lovely. the Soviet gold it was taken by the French bank".

Solution: "In the State Bank to dismiss". In the night of September 18 V.S. Korobkov was arrested and in April, 1931 is condemned on the case of "the counterrevolutionary Menshevist harmful organization in the State Bank of the USSR". The firing sentence is replaced with a 10-year imprisonment term.

E.M. Rzhevskaya living in the neighboring apartment, the coeval of his eldest son, obviously, retelling a family legend of the reasons of arrest of V.S. Korobkov, reported: "It was attracted to the answer for the fact that our vessel with gold which is rolled up by a storm or at some other contingencies not that was forced to stick in the port which is not provided by the instruction where gold could be annexed for the imperial debts which are not recognized by the young Republic of Councils. Not that gold for some reason was overloaded from one vessel on another in the open sea ocean that was not allowed by the instruction. More precisely, perhaps, now not to set".

And though "gold transaction" does not appear in the indictment of group case, there are all bases to assume that for candidate screen in "the state banking harmful banking organization" this "compromising evidence" was used as the materials extracted by bodies of TsKK-RKI during checks and "cleanings" were actively used by the bodies of OGPU which received a task for "disclosure" of an extensive network of the "harmful" organizations during this period.