THE STATE BANK AND THE COTTON INDUSTRY IN TURKESTAN: DEVELOPMENT OF INFRASTRUCTURE AND FINANCIAL NETWORKS IN THE LATE XIX-EARLY XX CENTURY

Аннотация

The article examines the process of economic expansion in the Turkestan region, in which private credit institutions, especially the State Bank, played a significant role, providing financial support for the development of cotton growing, trade and industry. On the basis of sources it is analysed that this support mainly met the interests of tsarist Russia rather than the needs of the local population. Keywords: Turkestan region, State Bank, cotton industry, economic policy, cotton prices. The Turkestan region, having become a colony of Tsarist Russia, and having become a raw material appendage, although in reality for the most part this was only for cotton, offered great potential for economic exploitation of the region by Russian capital. In many ways, though, Tsarist Russia doubted what Turkestan really represented for Russia. For example, D. Kirilchik in his article emphasises, “.... empire could not finally decide on the status of the region, namely: was Turkestan a colony or an integral part of the empire with a population ethnically alien to the majority of Russian inhabitants? The lack of such certainty posed obstacles to the economic development of the region, in particular, it prevented foreigners who could bring investments to the region from purchasing property”. [1: 52] However, it is worth noting that despite the lack of clarity in understanding the status of the Turkestan region, Tsarist Russia was not prevented from pursuing an economic policy in its own interests. Banks and trading houses were established, which facilitated the inflow of capital and credit. This primarily helped in the expansion of cotton plantations and trade networks. With the development of the textile industry, cotton ginning plants and textile factories were built in the region, which were naturally under the control of Russian shareholders. This process increased the dependence of the local economy on the imperial market and weakened the possibility of developing a local market in the province. 42 МЕЖДУНАРОДНАЯ КОНФЕРЕНЦИЯ АКАДЕМИЧЕСКИХ НАУК The rapid spread of cotton growing in the Turkestan region was due to its obvious profitability and advantages for tsarist Russia. The region's fertile soil and warm climate were ideal for growing cotton, and demand for the crop in Russia and abroad was skyrocketing. The increase in demand was driven by industrialisation in Russia and a desire to reduce dependence on cotton imports from abroad. As a result, cotton cultivation became a central part of Turkestan's economy, having a significant impact on the demography, land use and life of the region's population. Cotton prices in early 1913 were: A pood of raw material of 1st grade 4 rub.60 kop.- 5 rub.; 2nd grade 4 rub. - 4 rub. 20 kop.; mezheumok 12 rub. 20 -50 kop. Finished cotton 1st grade, normal 13 rub. 20 - 25 kop.; 2nd grade 12 rub. 70 - 80 kop. mezheumok 12 rub. 20 - 50 kop. [2:100] As can be seen from the above-mentioned data, cotton prices in Turkestan in 1913 show a sharp imbalance: raw cotton was sold cheaply (4-5 rubles per pud), while finished cotton cost three times as much (13 or more rubles). This gap shows how Russia made a profit by buying cheaply from local dekhkans and selling expensively after processing. The dekhkans of the Turkestan region were trapped in poverty, forced to grow cotton to pay taxes in money but earning little for their labour. Meanwhile, Russian factories and banks grew rich, controlling both production and profits. The focus on cotton destroyed traditional agriculture, leaving the region dependent on a single crop and vulnerable to price fluctuations. Ultimately, prices were more than just numbers - they symbolised the colonial exploitation that changed the fate of Turkestan. The purchase of cotton was allocated to two very different systems: 1) the purchase of raw cotton with its purification at own or leased mills and 2) the purchase of finished fibre. In the first case, a complete full cleaning of the fibre, its best sorting and classification, surpassing even the American sorting, is obtained. Such an operation is carried on only by large bona fide firms in constant communication with the mills, and the number is limited. The second system is purely speculative, in which the only aim is to increase the value of the goods at all costs: here neither brand nor trade honour and connections are valued; good varieties are mixed with inferior varieties, the cotton is poorly cleaned, soaked and sold to factories with sap, dust and even leaves. [3 :107] One of the first banks in the Turkestan region was a branch of the State Bank, which was opened on 10 May 1875 in Tashkent. At the time of 43 МЕЖДУНАРОДНАЯ КОНФЕРЕНЦИЯ АКАДЕМИЧЕСКИХ НАУК establishment of the bank branch, the manager of the bank was the Acting State Counsellor Alexander Ignatyevich Shtein. [4:5] Later the director of the branch was N.M. Bakhtiarov, who managed the bank until 1881. This branch was the only bank in the krai that co