Investment Policy of the State Bank of Russia as a Factor of Monopolization of the Siberian Gold Industry

Abstract

The article studies the issues of development of gold mining in the Leno-Vitimsky district in the late 19th - early 20th centuries. Monopolization of the fisheries has led to the emergence of large joint stock companies. Bank investments played a crucial role in expanding gold production and developing mining infrastructure. Lending to large gold industry contributed to the growth of the influence of the Irkutsk branch of the state Bank of Russia, increased its role in the economic life of the region. Large Bank investments led to the expansion of gold-bearing areas and contributed to the introduction of new technologies and technical devices in the mines. The article traces specific examples of the investment policy of the state Bank of Russia and the role of its regional branches in Irkutsk and Bodaybo. The constant increase in the cost of developing new mines, supply, hiring workers and purchasing equipment increased competition and helped monopolize the industry. As a result, large Bank loans played a more significant role. The state Bank of Russia not only saved «Lensky Gold Industrial Partnership» from financial collapse, but also contributed to its transformation into the largest gold mining enterprise in Russia with its favorable investment policy. By controlling the activities of «Lenzoto», the state, through Bank investments, not only received significant profits, but also strengthened its influence in the gold mining industry as an important area of the Russian financial system.