New Authorities - New Money

After the victory of the February bourgeois-democratic revolution, power in Russia passed into the hands of the Provisional Government, which represented the interests of large capitalists and landowners, determining its policy, including economic and financial. The slogan proclaimed by it, "War to a victorious end," meant for large capital that the super-profits from military supplies under government contracts flowed to the usual address. On the other hand, continuing the war was impossible without enormous financial support. The Provisional Government, which inherited a devastated economy and a state budget with a huge deficit, was forced to introduce a state monopoly on the sale of essential products and issue loans.
On March 30, 1917, a decree of the Provisional Government was published regarding the issuance of an internal state "Loan of Freedom." The bourgeois press unanimously supported it, claiming that it could supposedly reduce the rate of inflation and allegedly contributed to the withdrawal of part of the paper money from circulation and a significant reduction in its issuance. However, hopes were not fulfilled; the loan managed to raise only about 4 billion rubles, and soon the idea of a forced loan itself also failed miserably. The printing press started working at full capacity again, debts to other states grew, taxes increased, wages decreased, but money was catastrophically lacking.

Under the Provisional Government, the issuance of banknotes of the pre-revolutionary model continued. By October, their issuance volume had already reached 16.5 billion rubles. By decree of April 26, 1917, credit notes with denominations of 250 and 1000 rubles were introduced, stating that they could be exchanged for gold coins; however, the promise was delayed: paper money sharply fell in value. The 250-ruble note featured the old imperial coat of arms, but without the attributes of royal power, while the 1000-ruble note depicted the Tauride Palace in Petrograd - the meeting place of the State Duma, the first Russian parliament. Because of this, they were nicknamed "Duma money" by the people. The volume of issuance especially increased under the government of A.F. Kerensky. From August 1917, the active issuance of treasury notes with denominations of 20 and 40 rubles began, widely known as "kerensks." Interestingly, these banknotes were issued to people in uncut sheets of up to 40 monetary units. The Provisional Government also issued stamps and money with denominations of 1, 2, and 3 kopecks.
Despite the significant volumes of issuance, cash was insufficient for trade or for paying wages to workers and employees. Among the reasons for this shortage were the strikes of workers at the Expedition for the Preparation of State Papers (the then Goznak). Financial difficulties especially increased. By the fall of 1917, due to seasonal expansion of trade turnover and another wave of inflation, the production capacity of the mint was at its limit. In this regard, the government allowed the use of certain types of security coupons as legal means of payment along with bonds of military loans and the "Loan of Freedom."