Comparison Merchant vs Aristocratic Wealth

[james_h]

I've yet to read this http://www.amazon.com/gp/product/0691012490/sr=8-1/qid=1147509755/ref=sr_1_1/002-8162793-9830428?%5Fencoding=UTF8

That aside, it appears that some of the moscow merchants amassed considerable fortunes. Here is the beginning of a table I'm compiling....



Richest Russian Merchants        


Pavel Mikhailovich Tretyakov            1898 rubles  4.4 million                 2006 USD $78,308,767.00  
        
Pyotr Alexeivich Bakhrushin*             1898 rubles 7 million                     2006 USD$124,582,129.32              

Alexander Alexeivich Bakhrushin*

Vasili Alexeivich Bakhrushin*

Pavel Mikhailovich Ryabushinsky

Vasily Mikhailovich Ryabushinsky

Igumnov

Aleksey Ivanovich Khludov

Sergei Shchukin

S.T. Morozov  had an income of 250,000 R/year** but I cannot seem to find out what his net worth was.


  


* "Between 1880 and 1904, the family contributed close to three million rubles to municipal charities" Merchant Moscow - Images Of Russia's Vanished Bourgeoisie
by James L. West  ( I figure they must have at least 7 million rubles?)
**http://office.fashionlook.ru/news/index.phtml?sec=3&cat=16&page=284


Any additions subtractions or comments....feel free.





I used this method to calculate modern USD$  
"The gold ruble introduced in 1897 was equal to 0.774235 g of gold"  source: wikipedia, "Russian Ruble".

So, multiply the Rubles by 0.774235 then go here. http://dendritics.com/scales/metal-calc.asp Put answer in the "weight" then tick grams. Have currency on USD$ and viola...

[David_Pritchard]

Below is a copy of a PM that I sent to James earlier today. It is on the same topic.

Dear James,
 
I too have found the Morozovs to be an interesting family. Their beautiful and unusual home is accross from the Arbatskaya Metro Stansia on Novy Arbatskaya in Moscow. I believe that it is still used by the Goverment of India as a cultural centre. If you have seen a photograph of the house and its Indian style cut stone decorations, you would know just how appropriate the present tentants are to the building.
 
Another very interesting family are the Tretyakovs, as in the Tretyavkov Gallery (of Russian Art) in Moscow. They were a family of Old Believers who amassed great wealth and then donated their comprehensive art collection to the Russian people prior to the Revolution.  I was fourtunate enough to have met a Tretyakov, Tatiana Tretyakova if I remember correctly, about ten years ago in New York City who was married to an Armenian prince.
 
Another such family who gained vast wealth and a title were the Demidovs. They started out as (uninserfed) peasent blacksmiths along a major road, until Peter the Great needed a smith's services by chance.
 
There are many books in Russian that cover these families, of course it is much more difficult to find English texts. Try the links below for good Russian history books:
 
http://www.panrus.com/books/categories.php?langID=1
 
http://slavica.com/
 
 
Best wishes as always,
 
David

[james_h]

David

Do you mean the Morozov mansion at 16 Vozdvizhenka Street? I believe the style of said house is Mauretanian not Indian, it was built by Arseny Morozov. Varvara Alekseyevna Morozov  (the young mans mother )condemned her son  'Before, only I knew you were a fool: now all Moscow will know.' It was true he had an ignoble death at merely 35.


..................

James

[Belochka]

David

Do you mean the Morozov mansion at 16 Vozdvizhenka Street? I believe the style of said house is Mauretanian not Indian, it was built by Arseny Morozov. Varvara Alekseyevna Morozov  (the young mans mother )condemned her son  'Before, only I knew you were a fool: now all Moscow will know.' It was true he had an ignoble death at merely 35.


..................

James

Sasha Morozov's residence was on 17 Ulitsa Spiridonovka, and is surrounded by a high fence that is guarded to prevent intruders venturing onto the property.

Built in Gothic style it is now owned by the Foreign Affairs Ministry for their receptions.

Another Morozov residence is found, as James suggested on 16 Ulitsa Vozdvizhenka, which is a moorish castle embedded with seashells, modelled on the one located in Sintra, Spain. It was built for Arseny Morozov. In soviet era it was the House of Friendship, but today serves as a concert hall as well as a Friendhip House for Foreigners.  

Much the same way as James described his mother's impression, which I think is classic:

"Until now only I knew that you were mad, but now everyone knows as well."

It has just undergone massive restoration ready for the G8 Moscow meetings.

[Belochka]

Their beautiful and unusual home is accross from the Arbatskaya Metro Stansia on Novy Arbatskaya in Moscow. I believe that it is still used by the Goverment of India as a cultural centre.  
David

The building did once serve as an Embassy for Britain, Japan and also India, but that was decades ago.  

[james_h]

Good evening all,


I am currently reading a book entitled "The Moscow Business Elite" authored by Jo Ann Ruckman. I've only recieved it today and have just read the first few pages. Inside is a detailed account of the state of Imperial Russian Industry. When I've finished I'll write a report briefly outlining the most interesting facts and post them here.

For example....."In 1900 the total turnover of all industrial enterprises in European Russia was valued at 3,669,000,000.00 rubles, enterprises located in the Moscow region accounted for 961,000,000.00 rubles."  

I'm extremely excited about this avenue of investigation as the Merchants are a sadly neglected (from a historical perspective) aspect of Russian society. Fortunately it appears they kept extraordinarily meticulous records of their finances and spending. Ironically to preserve for prosperity their actual investment in Russian culture and charity, as they were regarded in an overall derogatory respect by the aristocracy and intelligentsia. Their self defense (records) will be a scholars dream.

Plus I have yet to read - Merchant Moscow - Images Of Russia's Vanished Bourgeoisie (Hardcover)
by James L. West (Editor)

Lets try and keep this post as academic as reasonably possible.

James

[Belochka]

I am currently reading a book entitled "The Moscow Business Elite" authored by Jo Ann Ruckman. I've only recieved it today and have just read the first few pages. Inside is a detailed account of the state of Imperial Russian Industry. When I've finished I'll write a report briefly outlining the most interesting facts and post them here.

Wonderful thank you!

I'm extremely excited about this avenue of investigation as the Merchants are a sadly neglected (from a historical perspective) aspect of Russian society.

Plus I have yet to read - Merchant Moscow - Images Of Russia's Vanished Bourgeoisie (Hardcover)
by James L. West (Editor)

Lets try and keep this post as academic as reasonably possible.

James

Yes I hope that this thread shall prove to be informative as well.

All the best,

Margarita
  

[james_h]

I appologise, this is unfinished and taking far too long.












Richest Russian Merchants        
 
 
Morozov Dynasty                                  1898 200 million rubles at least.       2006 USD$3,290,772,595.00

Individually Merchant fortunes were commonly between 10 and 30 million rubles.

D.A. Morozov                                         1893 10 Million rubles                      2006 USD$164,715,882.00

G.I. Khludov                                            1893 16 million rubles                     2006 USD$263,533,064.00

P.M. Riabushinskii                                  1899 20 million rubles                      2006 USD$329,416,330.00
 
A.K. Medvednikova (fem.)                         1889 5 million rubles                      2006 USD $ 82,505,569.00

Abrikosov

Alekseev

Bakhrushin                                               1898 7 million rubles                    2006 USD$124,582,129.32              

Botkin

Guchkov

Iakunchikov

Khludov

Konovalov

Krestovnik

Mamontov

Morozov

Naidenov

Prokhorov

Riabushinskii

Rukavishnikov

Shchukin

Soldatenkov

Tretiakov                                                         1898 4.4 million rubles                2006 USD $78,308,767.00  

Ushkov

Vishniakov






                                              Industry

Ryabushinsky                         Banking
Tretyakov                               Merchant Banking/ Textile Magnates
Bakhrushin                             Factories: Tannery/ Wool/ Leather and Cloth manufacturing





Morozov      

Nikolskaia Factory                  13,302,000.000 rubles/year   making it the second largest single industrial enterprise in Russian Empire.
The Vikula Morozov Company    8,725,000.000 rubles/year     6th largest  industrial enterprise in Russian Empire.
Bogorodsko-Glukhovskaia          7,259,000.000 rubels/year   10th largest industrial enterprise in Russian Empire
Tverskaia Factory                      5,877,000.000 rubles/year    16th largest industrial enterprise in Russian Empire

Morozov Shares                         44,000,000.000 rubles





Merchant Rank

There were families considered by everyone to be at the top of the merchant hierarchy. There were others families who considered themselves as such, but others did not always agree with this; there were those who pretended to primacy, thanks to their wealth or large income.

Thus dismissing wealth as more or less irrelevant, Buryshkin characterized the business elite as "people who occupied an honorable position in popular economic life and remembered their fellow men: they helped the suffering and the needy and responded to the needs of culture and enlightenment."

Moscow abounded in new millionaires, many from the peasantry, who did not acquire culture as rapidly as they acquired wealth and thus had no hope of being numbered among the merchants leading families.  One example of this phenomenon was P.A. Smirnov, of vodka fame. Born a peasant, Smirnov started his liquor business in the 1850's and soon accumulated a massive fortune. Although he took on some of the external trappings of culture, building for himself a magnificent mansion in Moscow, he used none of his wealth for cultural or philanthropic purposes, and neither he nor his heirs participated actively in public affairs. When smirnov died, note was duly taken of the fact that he left none of his money to charity.




Merchants and Nobles

Although there were exceptions, the merchants did not wish to become nobility....they wished to replace them. This is an extract from a letter to the editor of the newspaper Utro Rossii.
                                        "it is impossible any longer for both the nobleman and the bourgeois to
                                         remain on the shoulders of the narod (the people) and one of them is going
                                         to have to get off. This is the circumstance which gives rise to the conflicts
                                        which, from time to time, arise between them. The sooner that the bourgeois
                                        becomes the sole master of the situation, the easier it will be for the whole
                                        narod to live."

If one is uneducated in this aspect of merchant history, it would not be surprising to suppose the merchants were all eventually after ennoblement.
The Bakhrushins, according to Buryshkin, could have had nobility for the asking because of their extensive philanthropy, but most of the family did not wish it. The Khludovs actually turned down an offer of ennoblement, as did N.A. Naidenov.

Thus, Savva Morozov's reaction to a proposed visit from Grand Duke Sergei, who wished personally to inspect Morozov's fabulous new home, openly indicated the contempt which he felt towards Moscow's social elite. Morozov willingly issued the requested invitation to the Grand Duke, but when Sergei arrived at the Morozov home, he was greeted only by servants: Morozov himself did not deign to be present.

[james_h]

Anything I'm posting here that sounds authoritive or intelligent comes from "The moscow Business Elite" by Jo Ann Ruckman.

[Belochka]

Anything I'm posting here that sounds authoritive or intelligent comes from "The moscow Business Elite" by Jo Ann Ruckman.

[size=10]Thanks for the "warning" James!!! [/size]

[james_h]

It is interesting to compare the two. We will compare the wealth of the wealthiest merchant Family to the wealthiest Aristocratic Family. Yusupov vs Morozov wealth.



Morozov  Dynasty = 1889 rubles 200 million+  100 years to accumulate
Factories

Nikolskaia Factory                        17,252  workers              13,302,000.000 rubles/year*        Factory profit percentage = 60%+
The Vikula Morozov Company         9,000  workers                8,725,000.000 rubles/year**      Factory profit percentage = 20%
Bogorodsko-Glukhovskaia               8,136  workers                7,259,000.000 rubles/year***     Factory profit percentage = n/a
Tverskaia Factory                           not listed                         5,877,000.000 rubles/year****    Factory profit percentage = n/a

Total number of  Morozov factory workers  = 34,388

*making it the second largest single industrial enterprise in Russian Empire.
**6th largest  industrial enterprise in Russian Empire.
***10th largest industrial enterprise in Russian Empire
****16th largest industrial enterprise in Russian Empire

Nikolskaia Factory had over 50,000 desyatin of land. The others had presumably some aswell. It does not include personal land owned by Morozovs.

"Several Hundred Million"  It does not list an actual figure. I assume it means at least 200million +
All above info comes from "The Moscow Business Elite" Jo Ann Ruckman. Published, Northern Illinois University Press.






Yuspov Dynasty = 1898 rubles 1000 million    340 years to accumulate

Real estate = 700 million rubles*****   (Moika Canal, Rakitnoie etc.....)

Art (1.2 million works of art), Jewels etc...... all incorporated into figure above.



***** Alexander Palace Biography, Zenaide Yusupov by Greg King.



The Morozov's were not a typical Merchant dynasty, money wise, in spite of the fact they are often touted as typical of Moscovian merchantry.
Clearly the Yusupov were wealthier. I suspect though, that had the revolution not occurred  that the Morozov's would have been as wealthy as the Yusupov's by 1950.
Excellent future sources of income for both,
Yusupov's = Unrealised revenue unexploited Oil.
Morozov's = Their Investment Bank.


This was probably a pointless exercise, enjoy  

[Doc]

Hello James,

what a great thread! I know you want to keep this as academic as possible, a frame of reference I particularly like, so I will try to couch my questions and comments accordingly.

1. To your knowledge (anyone) what/which was the Central Bank of Moscow?

2. What happened to deposits held there by 'wealthy' merchant families after the revolution?

3. Is there a difference between the 'rouble' [R] and the 'gold rouble' [AuR] as a form of currency?

4. What were the AuR coin denominations?

5. Did persons who had e.g 100 AuR posessthis as hard currency or once in the banks did it just become a paper-based figure of equivalence?

Now, on the subject of the conversion mentioned, from what I understand,

1 AuR = 100 Kopeks

a 15 AuR coin contained 261.36 dolis of Gold [Au] = 10.61 grams [g] of Au

1 g Au = 0.032151 Troy Ounces [Toz]

Thus using 100,000 AuR as an example

100,000 AuR

divide by 15      (AuR coins)
multiplied by
10.61 g             (grams of Au in 1, 15  AuR coin)
multiplied by
0.032151 Toz    (Troy Ounces in1 g of Au)
approximately equals

2,274.1474 Toz Au

Thus the rough conversion factor becomes:

1 AuR = 0.022741474 Toz  

From what I could find out, in 1893, 100,000 AuR was roughly equivalent to 215,982 DM

Compared with today's equivalence,
[Live mid-market rates as of 2006.06.07 02:15:53 UTC, www.xe.com/ucc]
this amounts to 1,107,029.92 Eu

I guess while this is an interesting mathematical activity (for me at least) where it becomes curiosity inspiring is how such amounts, at the turn of the 1800's-1900's, relates to average disposable incomes of the time and then comparing that to current times.

 

[David_Pritchard]

The gold and platinum coin denominations varied over the years, I will list the 19th century denominations by reign:

Aleksander I, Gold: 5 rubles, 10 rubles

Nikolai I, Gold: 3 rubles, 5 rubles, 10 rubles
               Platinum: 3 rubles, 6 rubles, 12 rubles

Aleksander II, Gold: 3 rubles, 5 rubles, 25 rubles

Aleksander III, Gold: 3 rubles, 5 rubles, 10 rubles

Nikolai II, Gold: 5 rubles, 7 1/2 rubles, 15 rubles, 25 rubles, 37 1/2 rubles

David

[David_Pritchard]

Additional research on the topic of Imperial Russian currency, silver and gold rates of exchange has found that in 1840 the State Commercial Bank issued deposit notes that were meant to be exchanged on an equal basis of one paper ruble for one silver ruble. Because a decline of the paper ruble's value the notes were soon withdrawn from circulation. In 1843, the government issued State Credit Notes that were tied to the silver and gold standard, they replaced all earlier notes and were prohibited from being taken abroad or brought into the country. During the reign of Nikolai II the paper notes were again tied to the silver and gold standard with the issue of the 1895 series notes. The 1895 series notes were redeemable for silver coin on a one to one basis. All of these notes were withdrawn in 1898 when Russia tied their currency to the gold standard. The 1898 notes were redeemable for gold ruble coins on a one to one basis at least until the war with Japan.

David

[james_h]

David, That's fascinating, I found it hard to get much information about the ruble at all (hence resorting to wikipedia).Well, that I could read. The variations are quite marked thank you.




Doc

Question 1. "The State Bank of the Russian Empire

    The State Bank of the Russian Empire was founded in 1860 as Russia’s entire banking system was overhauled. It was established when capitalism was gaining ground in the Russian Empire and it became the first “great reform,” carried out Emperor Alexander II. Considerable state interference in the economy, necessitated by the specific conditions of Russia’s economic development, predetermined the genesis of the State Bank as an institutional element of the government’s economic policy.


Senior Executives of the State Bank
 
1. Stiglitz A.L.       –       Governor of the State Bank in 1860-1866
2. Lamansky E.I.       –       Acting Governor of the State Bank in 1866-1867, Governor of the State Bank in 1867-1881
3. Tsimsen A.V.       –       Governor of the State Bank in 1881-1889
4. Zhukovsky Yu.G.       –       Governor of the State Bank in 1889-1894
5. Pleske E.D.       –       Governor of the State Bank in 1894-1903
6. Timashev S.I.       –       Governor of the State Bank in 1903-1909
7. Konshin A.V.       –       Governor of the State Bank in 1910-1914
8. Shipov I.P.       –       Governor of the State Bank in 1914-1917"                        - http://www.cbr.ru/eng/today/history/empire_bank.htm



Question 2. = I believe they were in rubles and rubles became worthless.Perhaps if you meant ownership, it was all nationalized or coating the pockets of high soviets.

Question 3. = I have no idea, but would love to know the answer.

Question 4. = I have no idea, but would love to know the answer. :-)



"I guess while this is an interesting mathematical activity (for me at least) where it becomes curiosity inspiring is how such amounts, at the turn of the 1800's-1900's, relates to average disposable incomes of the time and then comparing that to current times." - Doc

You are absolutely correct but historical estimates are difficult and fraught with challenges requiring information I haven't access to. Comparing his/her fortune as a percentage of the country's past and current economy. Although unfortunately for Russian conversion it would not be as easy as an American conversion, what with advents like communism et cetera. What the Russian economy has never been is/was " What it could be". On that note though perhaps it is interesting to note that pre-revolutionary Russia was predicted by a leading French economist as "dominating the European continent, militarily, financially and economically by 1950"     - Clarke,  "Lost fortune of the tsars".



Everyone, I'm terribly sorry. I'm very busy at the moment, juggling Work/Sport/Business/Romance all in spite of a 55hour work week. I haven't got much time to devote to this. I have a lot of enthusiasm to devote, just not much time. Things to be posted take time to think about, research, compose and post.....then monitor. I have a folder of 12 unfinished posts for this website .I'll be in this position until March next year.

I will post but infrequently and will not be able to answer many questions. Please forgive the typo's and other errors....


Doc, was there an inaccuracy with my calculation method? Could you point that out (as though I was a seven year old) please..... I would hate to post in Err.