Abstract
Abstract. The problem of attracting financial resources for the growth of small and medium-sized businesses was and remains relevant at all stages of the market economy development, which actualizes market research in the historical context. The article provides a historical retrospective to the problem of the mutual credit societies (MCS) creation and activity in 9 Ukrainian governorates, that were part of the Russian Empire in the second half of the 19th — early 20th centuries. The present paper makes attempt to examine the mechanisms and structure of lending, which was carried out by MCS in general. The objective is to establish the state of MCS’ development in the Ukrainian governorates. The paper also identifies the role of MCS in the lending system that had developed in the second half of the 19th — early 20th centuries in the Russian Empire. It was used several scientific methods which includes an interdisciplinary approach and are characteristic of research in the economic history field. Various historical sources like published statistical data and archival documents and materials were used. The study has found that the establishment and activity of MCS were focused on providing short-term loans to small and medium-sized businesses, that has been operating in governmental and provincial uyezd towns and cities where the banking system was poorly developed. It was carried out the analysis of development dynamic of quantitative and qualitative indicators of MCS activity. It was determined that the MCS share in the credit system of the Russian Empire constituted 5% in 1914. The study has found that rate of the MCS creating practice was influenced by many factors, which were mainly associated with unsuccessful financial reforms, belated legal regulation and weak episodic state support. The change in the structure of the credit-deposit and other operations provided by MCS has been processed. The range of banking services provided by MCS to their members and other clients was investigated. It has been proved the value of the historical experience of MCS crediting and the possibilities of its use to provide financial support for the development of domestic business are outlined. Keywords: Russian Empire, credit, crediting, loan, bank, mutual credit societies (MCS), banking system. JEL Classification B17, N24 Formulas: 0; fig.: 8; tabl.: 1; bibl.: 35.
Highlights
The problem of attracting financial resources for the development of small and medium-sized businesses was and remains relevant at all stages of the market economy development, which actualizes market research in a historical context
The evolution of mutual lending, which significantly influenced the development of small and medium-sized businesses in the second half of the 19th — early 20th centuries, has been considered using the example of the creation and activities of mutual credit societies, which were established in Naddnieper Ukraine after a series of reforms initiated by Alexander II
Whereas the imperial legislation singled out mutual credit societies (MCS) as a separate organizational and legal form of private credit institutions along with joint-stock commercial banks, urban credit companies with mutual responsibility of borrowers, joint stock land banks and land banks based on mutual guarantee, collateral societies [25]; 2) none of the studies consider the problems of participation of MCS in the control of cash circulation, inter alia, currency exchange transactions and the identification and withdrawal of counterfeit monetary units and securities from the money circulation, because the latter, as noted by the number of researchers, was quite common in large cities of Naddnieper Ukraine [34; 35]
Summary
The problem of attracting financial resources for the development of small and medium-sized businesses was and remains relevant at all stages of the market economy development, which actualizes market research in a historical context. Whereas the imperial legislation singled out MCS as a separate organizational and legal form of private credit institutions along with joint-stock commercial banks, urban credit companies with mutual responsibility of borrowers, joint stock land banks and land banks based on mutual guarantee, collateral societies (pawnshops) [25]; 2) none of the studies consider the problems of participation of MCS in the control of cash circulation, inter alia, currency exchange transactions and the identification and withdrawal of counterfeit monetary units and securities from the money circulation, because the latter, as noted by the number of researchers, was quite common in large cities of Naddnieper Ukraine [34; 35]
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