Christmas Savings Partnership

The Christmas Savings and Loan Partnership (sometimes called Dorovatsky) is the first credit consumer cooperative in Russia to open in the village of Rozhdestvensky (formerly Dorovatoe) of the Vetluzh district of the Kostroma province .

Content

Partnership History

The partnership was organized by the landowners brothers Luginins - Svyatoslav and Vladimir ^[1] . The idea arose from his younger brother, Svyatoslav, when he studied in Germany and where he got acquainted with the activities of Schulze-Delich partnerships. Returning to the estate of his father, Fyodor Nikolaevich Luginin, Svyatoslav begins to develop the charter of the partnership. After that, he proceeds to agitate the peasants and the village intelligentsia ^{[* 1]} ^[2] . The matter was complicated by the fact that at that time in the Russian Empire there were no laws governing cooperative activities; soil fertility in the area was low, and crafts were not developed. That is, the county economy was weak ^[3] .

The novelty of the case was not to issue small loans. Small credit organizations have existed in Russia since 1803 ^{[* 2]} ^[4] . The state understood the need for new property owners in money, as they already had the experience of liberating Ostsee peasants and other categories of citizens from serfdom. The liberated peasants, as newly emerged landowners, needed working capital to purchase seeds, rent land, and pay taxes. The state tried to solve this problem “from above” by creating savings banks, specific banks and other credit institutions. However, their financial efficiency was low ^[5] , the conditions for granting loans were excessively complex ^[6] , and the organization of new institutions was unsystematic.

Credit cooperation, as a grassroots movement, was to give the business a new impetus. In this case, it was not government officials who handed out state money, but partnership members gave out borrowed funds to people they trusted, and on conditions that they considered mutually acceptable.

By the spring of 1864, the charter of the partnership was signed by more than 20 people ^[2] , and Svyatoslav began to “break through” his registration with the legislative bodies of Russia. In the end, the entire document was included in the Complete Collection of Laws of the Russian Empire . The emperor’s permission was obtained on October 22, 1865, but Svyatoslav did not live up to this day, having died of consumption in May at the age of 29.

Vladimir Fedorovich picked up the case of his younger brother. He began to actively promote partnership affairs in newspapers and individual brochures. Fyodor Nikolayevich (father of the Luginins brothers) issued to the peasant "bankers" an interest-free loan of 1,000 rubles for 10 years. After 3 years, the Christmas Partnership numbered 250 members ^{[* 3]} ^[7] .

Further assistance was rendered to the Christmas Partnership by the veteran leader of the nobility, public figure and prolific publicist ^[8] Neil Petrovich Kolyupanov . In 1868, he summarized the experience of this credit consumer cooperative in the editorial of the newspaper Moscow . After this publication, the Christmas Partnership became known throughout Russia, and requests for the organization’s charter were sent to the veteran council. Considering the general interest, V. Luginin and N. Kolyupanov in 1869 co-authored the book “A Practical Guide to the Establishment of Rural and Craft Banks on the Model of German Loan Partnerships”, 1869 ^[9] .

Organization Features

The purpose of the Christmas partnership was, firstly, to attract the money of the members of the partnership with the payment of income (interest) on the contribution to them, and secondly, lending to the members of the partnership at a small percentage. The formation of the partnership took place on a territorial basis (only Christmas volost ), but a representative of any class could become its member. Partnership Management Bodies:

Higher - the general meeting of shareholders;
Executive - manager;
Control and Auditing - Verification Council ^[10] .

The mutual fund of the Christmas credit cooperative consisted of two parts: fixed and reserve capital. The first was formed from share contributions of partnership members, partnership loans and household deposits, and was used to issue loans ^{[* 4]} . The reserve capital was intended to cover possible losses of the cooperative and was formed from:

Partnership profits for the first year of work;
Profits of a new member of the company for the first year of membership;
One-time contributions of partnership members upon entry (not more than 1 ruble);
One-time payments by borrowers for the provision of a deferral (delay penalty) ^[12] .

The size of the share was 50 rubles. Each member of the partnership could have only one share, which could be paid in installments ^[12] . Loans were inappropriate, issued only to members of the partnership and for a short period - up to six months. The maximum amount of a cash loan could not exceed 80 rubles subject to the provision of collateral. Unsecured loans could not exceed 1.5 times the size of the share already paid ^[13] .

Notes

Comments

↑ The intelligentsia should be understood as former slaves, a priest and a retired non-commissioned officer
↑ Loans were issued for land reclamation purposes for the German immigrants of Novorossia ^[4] .
↑ ¹ ² Information from some sources that the Christmas partnership ceased to exist two years later due to losses in the next fiscal year does not correspond to reality.
↑ Actually loans . Despite the fact that the association was called “loan and savings”, in fact, the money was loaned for interest. In Russian, the meaning of the terms “ loan ” and “ loan ” does not have a strict separation. Chapter 36 of the Civil Code of the Russian Federation implies that the loan is gratuitous. At the same time, in banking, the term “loan” is widely used to mean the issue of money at interest ^[11] .

Sources

↑ Irina Barinshtein “About the Luginins ...”, 2016 : “... Vladimir Fedorovich Luginin ... was ... the founder in the village of Rozhdestvenskoye, Russia's first rural loan partnership. The initiator of the creation of a loan and savings partnership was the younger brother of Vladimir - Svyatoslav Fedorovich ... ".
↑ ¹ ² Irina Barinshtein “About the Luginins ...”, 2016 : “... in the spring of 1864 Svyatoslav Fedorovich convinced 21 people to sign the elaborated charter of the Christmas loan partnership ... Among these people were a local priest, 7 people who served at the Luginins estate, one retired non-profit an officer and 12 peasants ... "
↑ Irina Barinshtein “About the Luginins ...”, 2016 : “... poor agriculture, poor development of crafts and trade, the remoteness of the area from large communication lines and large centers, the influence of the northern ... nature, which affected the nature of people, the lack of enterprise, apathy ...”.
↑ ¹ ² A. V. Bugrov “Rural institutions ...”, 2002 , first paragraph: “... The first small credit institution in the Russian Empire appeared ... July 7, 1803 ... [and until the end of the paragraph]”.
↑ A. V. Bugrov “Rural institutions ...”, 2002 : “... Only in the Tsaritsyno Bank from 1852 to 1874 54% of all loans were illiquid assets; a similar picture was observed in many other specific banks ... ”.
↑ A. V. Bugrov "Rural institutions ...", 2002 : "... Operations were carried out by decision of the rural authorities, and loans in specific banks were issued only on the basis of worldly sentences ...".
↑ Irina Barinshtein “About the Luginins ...”, 2016 : “... Three years after the formation, the partnership numbered 250 people ...”.
↑ Irina Barinshtein “About the Luginins ...”, 2016 : “... there was such a joke that the St. Petersburg Vedomosti was alive by the floods of the Nile ...”.
↑ V.P. Lednev “Ural breeders of Luginins ...”, 2002 : “... Given the widespread interest in organizing public credit ... [and on to the end of the paragraph]”.
↑ A. V. Stepanyuk “History of legal regulation ...”, 2008 , p. 147: "... The main objectives of the Christmas Partnership were to raise funds from residents of the Christmas Parish with payment of interest on deposits ... [and to the end of the paragraph]."
↑ A. V. Stepanyuk “History of Legal Regulation ...”, 2008 , See the last paragraph in its entirety, p. 147: "... Considering the charter of the Christmas Partnership, it seems necessary to pay attention to the following feature ... [and to the end of the paragraph]."
↑ ¹ ² A. V. Stepanyuk “History of legal regulation ...”, 2008 , p. 147: "... The mutual fund of the Christmas Partnership included fixed and reserve capital ... [and to the end of the paragraph]."
↑ A. V. Stepanyuk “History of legal regulation ...”, 2008 , p. 148: "... In accordance with the charter of the Christmas Partnership, loans could only be granted to members of the Partnership ... [and until the end of the paragraph]."

Literature

Bochkareva, Elena Sergeevna. The first experience of organizing loan and savings partnerships in Russia in the 19th century [Text]: Art. in scientific journal / E.S. Bochkareva // Omsk Scientific Herald : scientific-analytical. journal / ch. ed. prof. A.V. Kosykh. - Omsk: OmSTU , 2009. - No. 1 (75). - S. 9-12. - 198 p. : tab. - Bibliogr. at the end of Art. - ISSN 1813-8225 .
Bugrov, Alexander Vladimirovich. Rural institutions of small credit in Russia until 1917 [Text]: (Part I): journal. Art. / A. V. Bugrov // Bulletin of the Bank of Russia : industry magazine. - M .: ZAO AEI Prime-TASS, 2002. - No. 72 (650) (December 26).
Vakhitov, Kamil Ismagilovich. The history of consumer cooperation in Russia [Text]: textbook. / K. I. Vakhitov. - 3rd ed. - Publishing and trading corporation "Dashkov and K", 2010. - 400 p. - 1000 copies. - LBC 65.29 . - UDC . - ISBN 978-5-394-00928-0 .
Elyutin, Oleg Nikolaevich. Cooperation in Russia - an unclaimed experience [Text]: [ arch. March 3, 2016 ]: scientific popul. Art. / cand. East. Sciences O. N. Elyutin // "Science and life" : scientific-popul. journal / ch. ed. I.K. Lagovsky. - M .: ANO Editorial Board of the journal "Science and Life", 2003. - No. 5 (May). - S. 58-64. - 144, [2] p. : col. ill., b / w silt, tab. - 44,900 copies. - ISSN 0028-1263 .
Kolyupanov, Neil Petrovich. A Practical Guide to the Establishment of Rural and Craft Banks on the Model of German Loan Partnerships [Text]: [ arch. March 7, 2017 ] / N.P. Kolyupanov, V.F. Luginin. - M .: Type. A.I. Mamontova and K., 1869. - VIII, 269 p.
Lednev, Vitaliy Pavlovich. Ural breeders Luginins and their descendants [Text]: [ arch. October 30, 2013 ]: Journal. st / prof. V. P. Lednev // “Ural” : literary and artistic. and publicist. journal / ch. ed. N.V. Kolyada . - Yekaterinburg, 2002. - No. 12. - ISSN 0130-5409 .
Stepanyuk, Andrey Vyacheslavovich. The history of the legal regulation of credit cooperation in Russian pre-revolutionary and Soviet civil law [Text]: [ arch. March 7, 2017 ]: Art. in scientific journal / A.V. Stepanyuk; BelSU // Scientific statements of BelSU: scientific. rec. journal / ch. ed. L. Ya. Dyatchenko. - Belgorod: BelSU Publishing House, 2008. - S. 146-157. - 239 p. : col. schemes, b / w schemes, tab. - (Philosophy. Sociology. Law / Chap. Ed. V.P. Rimsky; 2008, No. 4 (44)). - List lit. at the end of Art. - Information about the author. at the end of the room. - 1000 copies. - UDC . - ISSN 2075-4566 .

Links

Barinshtein, Irina Eduardovna. About the Luginins, the history of the village of Rozhdestvensky and the emergence of credit cooperation in Russia [Electronic resource]: [ arch. August 20, 2016 ]: page of a site / I.E. Barinshtein // All-Russian movement of credit cooperation : a site of societies. org .. - M .: “League of Credit Unions”, 2016.

[2] The intelligentsia should be understood as former slaves, a priest and a retired non-commissioned officer

[6] Loans were issued for land reclamation purposes for the German immigrants of Novorossia ^[4] .

[ends-9] ¹ ² Information from some sources that the Christmas partnership ceased to exist two years later due to losses in the next fiscal year does not correspond to reality.

[15] Actually loans . Despite the fact that the association was called “loan and savings”, in fact, the money was loaned for interest. In Russian, the meaning of the terms “ loan ” and “ loan ” does not have a strict separation. Chapter 36 of the Civil Code of the Russian Federation implies that the loan is gratuitous. At the same time, in banking, the term “loan” is widely used to mean the issue of money at interest ^[11] .

[_c486370f58d184cd-1] Irina Barinshtein “About the Luginins ...”, 2016 : “... Vladimir Fedorovich Luginin ... was ... the founder in the village of Rozhdestvenskoye, Russia's first rural loan partnership. The initiator of the creation of a loan and savings partnership was the younger brother of Vladimir - Svyatoslav Fedorovich ... ".

[number-3] ¹ ² Irina Barinshtein “About the Luginins ...”, 2016 : “... in the spring of 1864 Svyatoslav Fedorovich convinced 21 people to sign the elaborated charter of the Christmas loan partnership ... Among these people were a local priest, 7 people who served at the Luginins estate, one retired non-profit an officer and 12 peasants ... "

[_e61975d7decd2e71-4] Irina Barinshtein “About the Luginins ...”, 2016 : “... poor agriculture, poor development of crafts and trade, the remoteness of the area from large communication lines and large centers, the influence of the northern ... nature, which affected the nature of people, the lack of enterprise, apathy ...”.

[melk-5] ¹ ² A. V. Bugrov “Rural institutions ...”, 2002 , first paragraph: “... The first small credit institution in the Russian Empire appeared ... July 7, 1803 ... [and until the end of the paragraph]”.

[_d7927f30452338dc-7] A. V. Bugrov “Rural institutions ...”, 2002 : “... Only in the Tsaritsyno Bank from 1852 to 1874 54% of all loans were illiquid assets; a similar picture was observed in many other specific banks ... ”.

[_48608ba231f689b1-8] A. V. Bugrov "Rural institutions ...", 2002 : "... Operations were carried out by decision of the rural authorities, and loans in specific banks were issued only on the basis of worldly sentences ...".

[_a8453a934fc72836-10] Irina Barinshtein “About the Luginins ...”, 2016 : “... Three years after the formation, the partnership numbered 250 people ...”.

[_f3b294ef45316992-11] Irina Barinshtein “About the Luginins ...”, 2016 : “... there was such a joke that the St. Petersburg Vedomosti was alive by the floods of the Nile ...”.

[_a2d74488410a6a67-12] V.P. Lednev “Ural breeders of Luginins ...”, 2002 : “... Given the widespread interest in organizing public credit ... [and on to the end of the paragraph]”.

[_96da77838d03ea17-13] A. V. Stepanyuk “History of legal regulation ...”, 2008 , p. 147: "... The main objectives of the Christmas Partnership were to raise funds from residents of the Christmas Parish with payment of interest on deposits ... [and to the end of the paragraph]."

[_5214b0a50fa6fae8-14] A. V. Stepanyuk “History of Legal Regulation ...”, 2008 , See the last paragraph in its entirety, p. 147: "... Considering the charter of the Christmas Partnership, it seems necessary to pay attention to the following feature ... [and to the end of the paragraph]."

[found-16] ¹ ² A. V. Stepanyuk “History of legal regulation ...”, 2008 , p. 147: "... The mutual fund of the Christmas Partnership included fixed and reserve capital ... [and to the end of the paragraph]."

[_e74e313cc80fbdaf-17] A. V. Stepanyuk “History of legal regulation ...”, 2008 , p. 148: "... In accordance with the charter of the Christmas Partnership, loans could only be granted to members of the Partnership ... [and until the end of the paragraph]."