the introduction of paper money into circulation by the treasury or other state financial body.
Under capitalism, treasury issue is inflationary in nature. A bourgeois state resorts to treasury issue during crises, particularly in times of war if the current revenues (mainly taxes) of the state budget are insufficient to cover government expenditures. The treasury issue is one of the concealed ways of robbing the toiling masses and mobilizing additional resources. Before the general crisis of capitalism, when bank notes could still be exchanged for gold, a treasury issue by its economic nature and consequences greatly differed from a bank note issue, which was connected with the broadening of credit operations and the growth of commodity circulation. Since the world economic crisis of 1929-33, when the exchange of bank notes for gold was abolished and bank note issues were used to cover budget deficits, a treasury issue is not any different from a bank note issue.
In socialist countries, a treasury issue is effected in a planned manner on the same credit basis as the issue of bank notes, according to the requirements of economic circulation for paper money of the smaller denominations. In the USSR paper money is issued by the Gosbank (State Bank) of the USSR.
A. B. EIDEL’NANT