The Mutual Credit Society in Saint Petersburg, formally known as the Saint-Petersburg Society of Mutual Credit (Russian: Санкт-Петербургское Общество взаимного кредита), was a pioneering financial institution in the Russian Empire. Established in the mid-19th century, it represented the first commercial credit bank in Russia, focusing on providing loans to businesses and accepting deposits of tangible assets. This society operated on the principle of mutual liability, where members shared responsibility for loans, and it played a crucial role in fostering local economic development by reducing dependence on foreign banks. Its creation was part of broader financial reforms following the emancipation of serfs in 1861, which spurred the need for accessible credit for merchants and industrialists.
The society's origins trace back to a devastating fire in May 1862
that ravaged the Shchukin Dvor and Apraksin Dvor markets in Saint
Petersburg, destroying goods and properties worth millions of rubles.
This catastrophe highlighted the vulnerabilities of local traders and
prompted Evgeny Lamansky, then vice-president of the State Bank of the
Russian Empire, to advocate for a mutual credit system inspired by
Western European models. Lamansky proposed the idea to Minister of
Finances Count Michael von Reutern, leading to the society's founding on
April 9, 1863, with a charter approved by the Emperor. Operations
officially began on March 17, 1864, with an initial membership of 300
affluent merchants and industrialists.
Membership grew rapidly,
reaching a peak of 9,072 by 1874, including both individuals and
organizations. Initially geared toward large enterprises, the society
later shifted focus to support smaller businesses. By 1910, Saint
Petersburg hosted around 20 mutual credit societies, expanding to as
many as 40 by 1917. Key institutions included:
The original
Saint-Petersburg Mutual Credit Society (1864).
The Mutual Credit
Society of the St. Petersburg District Council (1871, at 8 Italyanskaya
Street).
The 2nd St. Petersburg Mutual Credit Society (1895, at 34
Sadovaya Street).
The 3rd St. Petersburg Mutual Credit Society (1902,
at 72 Nevsky Prospect).
The Mutual Credit Society of Printing Traders
(1904, at 14 Ekaterininsky Canal Embankment).
The 4th St. Petersburg
Mutual Credit Society (1907, in Tolmazov Lane, now 2 Krylova Lane).
The Vasileostrovsky Mutual Credit Society (1908, at 5 Sixth Line on
Vasilyevsky Island).
The Russian Mutual Credit Society (1909, at 32
Sadovaya Street).
In 1909, the Central Bank of Mutual Credit
Societies was established on Nevsky Prospect to coordinate and
financially support these entities. Related organizations, such as the
Mutual Land Credit Society (1866) and the St. Petersburg City Mutual
Loan Society (1904, at 24 Nevsky Prospect), extended loans against real
estate under similar mutual principles.
The society introduced several banking innovations to Russia,
including bank checks, running accounts, and bill issuance. It provided
loans, accepted deposits, and conducted transactions that generated
substantial income. For instance, operations with running accounts
started at 4 million rubles in 1864, escalating to over 395 million
rubles by 1869. It attracted major companies and even extended loans to
the State Bank of the Russian Empire on occasion. By the late 19th
century, some societies functioned similarly to joint-stock commercial
banks, handling bill transactions, commercial loans, and
securities-based lending.
Philanthropy was a notable aspect of its
activities. The society offered inflation-adjusted salary bonuses to
employees, provided aid to regions hit by poor harvests or wars, funded
monuments, and supported education for the children of employees and
poorer members.
Management was structured hierarchically: A board of
five members, elected every three years by the general assembly, oversaw
operations without salaries but shared 15% of profits. Each board member
handled a specific field, and the president was selected from among
them. A council of board members and deputies met monthly, while a
20-person committee vetted new members weekly. The general assembly
convened annually.
The society's headquarters evolved over time. It started in a modest
space provided by the State Bank in 1864, then moved to a private
apartment in Lesnikov's house at 18/27 Ekaterininsky Canal (now
Griboedov Canal) in 1871. By 1887, space constraints for documents and
assets necessitated a new building. The general assembly approved a
500,000-ruble loan for construction, entrusted to architect Count
Paul-Jules de Suzor (P.Yu. Syuzor). Board member Mikhail Nikitich
Kobyzev (Michel Kobyseff) and Suzor studied European banks in France,
Belgium, and Germany for inspiration.
Completed between 1888 and 1890
at Emb. Can. Griboyedov, 13, this four-story structure was the first in
Russia purpose-built for a commercial bank. Executed in the eclectic
style, the facade features a rhizalit, arched windows framed by female
figures symbolizing industry and trade, balconies supported by Atlantes,
and sculptures by A.M. Opekushin and D.I. Jensen. A dome crowns the
building with figures of Nike (goddess of victory), Mercury (god of
trade), and Neptune (god of the seas). An inscription above the central
window reads "The First Society of Mutual Credit."
The interior
boasts a grand operating hall accessed via a granite staircase, adorned
with marble columns and cast-iron chandeliers resembling woven branches.
Innovations included a private power station, steam heating,
ventilation, elevators, water supply, sewerage, alarms, telephones,
electric lighting, fire-proof rooms, and safety deposit boxes—the latter
introduced to Russia and so popular that extra spaces were added.
However, high construction costs were not fully recovered by the time of
the revolution.
The society faced challenges, including the broader banking crisis of
the 1880s in the Russian Empire, which affected similar institutions
elsewhere but is not specifically detailed for this one in available
records. All mutual credit societies were liquidated on October 10,
1918, by a circular from the People's Commissar of Finances following
the October Revolution.
Under the New Economic Policy (NEP) in the
early 1920s, mutual credit societies reemerged in Petrograd (renamed
Leningrad in 1924). Examples include the 1st Mutual Credit Society in
Petrograd; the Petrograd Mutual Credit Society of Commerce and Industry
(at 13 Griboedova Canal Embankment and 34 Sadovaya Street); the
Petrograd Mutual Credit Society of Leased and Private Industry (1922, at
42 Nevsky Prospect); and others like the North-Western Society of Farm
Credit (1922), the Leningrad Mutual Credit Society of Small and
Mid-Sized Business (1923), the Leningrad United Mutual Credit Society of
Small Business (1925), and the Leningrad Building Mutual Credit Society
(1926). These focused on bill and loan transactions but were ultimately
liquidated by a decree from the Central Executive Committee and the
Soviet of People's Commissars on January 30, 1930.
Post-revolution,
the original building housed artists' studios and state institutions,
becoming the regional office of the State Bank of the USSR in 1945.
Today, it accommodates commercial banks, preserving its financial
legacy.
The Saint-Petersburg Society of Mutual Credit was instrumental in modernizing Russian banking by introducing localized credit, innovative tools, and philanthropic practices. Its success spurred the proliferation of similar societies across the empire, empowering small traders and reducing foreign financial influence. Architecturally, its building remains a landmark of late 19th-century eclecticism in Saint Petersburg, symbolizing the city's economic history.