1904-1908

Depression of 1904-1908.Russian-Japanese war and its Influence on the economy and industry of Russia.

I choose this war because my previous topic about France was not accepted,and I decided to choose the first war which I found in the books.It was a Russian-Japanese war of 1904-1908.I will not tell you that I really like this topic,but I have no time to choose.It was my fault.So we will discuss this war at History lessons soon,and I hope it will be interesting to read about it before school lessons.I write about Economic situation in Russian Empire during the 1900-1908 years.So let's start.

Before the war

It was a difficult situation in Empire from 1901 to 1904 It was eliminated 18 of the joint-stock metallurgical enterprises (for a total of 70) with a total capital of 55 million rubles.Sharply was reduced the inflow of new capital into the industry, especially in metallurgy and mechanical engineering.

In 1901 it was the huge size of unemployment. Only in manufacturing about 35 thousand people were fired.By the end of 1902, unemployment increased even more. In certain industrial centres, large factories and factories were reduced to one third and up to half of workers. Wages fell everywhere. Unemployment has become a universal phenomenon in Russia at that time.

At the end of 1903, the industry began to emerge from the crisis. . From 1903-1904 some industries gradually started to report signs of stability and even improvement. In connection with the strengthening of the money market account falls to 4.56%-4,50. Prices of goods started to grow again. Prices of consumer goods and light industry grew even more. But this increase still did not reach the level of prices which was before the crisis.

War influence

The Russian-Japanese war, which began on January 27, 1904, immediately started to affect on economic life of the country. When the war was announced , the St. Petersburg stock exchange was in panic. Each military failure of the Russian army and Navy were dramatically affected by undermining public credit and the fall in value of the ruble and Russian funds, on foreign exchanges. While gold currency was preserved, the issue of paper money led to depreciation of the ruble on the domestic market. During the 1904-1906 years,everything was implemented for the needs of war. National bank account(Budget),in 1904 was reduced from 343 million to 174 million.

The industrial development in Russia was lower than in the other countries, but this time was the time of science progress in the industry. The capacity of mechanical engines was increased in comparison with 1900 engines in 1,5 times.Increased production of pig iron using mineral fuels, was an active displacement of production of welding cast iron, there was a rapid extension of open-hearth method in the production of steel.

Awful war results, the stagnation of industry and the depreciation of the ruble affected the sharp decline in investment of foreign capital in Russian industry. War had a bad influence on Empire economy,but this war made our country better.So in the other hand I want to say that war made our nation better,we made a big improvement in Economy next years.1908-1913 were years of the economic rise in Russian history.So our nation made a new step after this war.