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Georg von Charasoff 3 _____________________________________________________________________________ ‘original capital’ (Urkapital) and of ‘basic products’ (Grundprodukte), thus anticipating Piero Sraffa (1960) with regard to the related concepts of a reduction series to dated quantities of labour, the Standard commodity, and the basics/non- basics distinction. In addition, Charasoff also anticipated the so-called ‘Fundamental Marxian theorem’ of Michio Morishima (1973) and the theorem of the rising rate of profit from the introduction of technical progress, which is generally attributed to Nobuo Okishio, that is, the so-called ‘Okishio theorem’ (1961). Although Charasoff’s argumentation was undoubtedly based on mathematical reasoning, he chose to present it in non-mathematical form, using only simple numerical examples. From a mathematical point of view, it is remarkable that Charasoff failed to make use of (and in spite of a number of shared mathematical interests apparently was unfamiliar with) the newly-developed theorems of Perron and Frobenius on eigenvalues and eigenvectors of positive and non-negative matrices (see Parys 2014). However, according to Mori (2013), Charasoff in fact anticipated the method of the so-called ‘von Mises iteration’ in some of his arguments. Since Charasoff’s findings on the determination of production prices and the rate of profits partly resemble results obtained already a decade earlier by Vladimir Karpovich Dmitriev ([1898] 1974), it deserves to be mentioned that there is no indication that Charasoff had read Dmitriev’s 1898 essay on Ricardo’s theory of value, although he refers to the famous paper by Ladislaus von Bortkiewicz of 1906-7 (which contains a reference to Dmitriev) in his second book. 4 At any rate, Charasoff submitted his first economic manuscript (which is not extant, but which seems to have contained his main findings with regard to these problems) already in January 1907 (see Section 5 below). Thus, it can be supposed he had developed his ideas before having read von Bortkiewicz’s paper. 3 Charasoff’s Family Background and Early Education in Tbilisi and Odessa In the hand-written version of his curriculum vitae Charasoff refers to his parents as ‘Russian subjects, Armenians of the Armenian-Gregorian faith’ (H-V 3/2, Universitätsarchiv Heidelberg), which suggests that he and his family regarded themselves as ‘russified Armenians’ (rather than as Russians). When he first enrolled at the University of Heidelberg in 1897 Charasoff inserted ‘burgrave’ (Burggraf) in the entry ‘Profession of the father’, while in a later document he wrote ‘State councillor’ (Staatsrat) – presumably his father was both. Charasoff’s family must have been fairly wealthy; in Zurich Georg von Charasoff ‘was known as a very rich man’, as Dr Häberli, who was appointed guardian of his children in 1919, put it in an aide memoire (Vormundschaftsakten ‘Kinder Charasoff’, Stadtarchiv Zürich). In a document of 1910, which he had to complete in French, Charasoff gave as his own profession: ‘Docteur en sciences’ and ‘rentier’ (Fiches contrôles des habitants 1910, Stadtarchiv Lausanne). His daughter Lily (b. 1903) stated in a letter of December 1919, which she sent from Tbilisi to her brothers, that their father ‘has lost all his wealth, which is now in the hands of the Russian government’ (Vormundschaftsakten ‘Kinder Charasoff’, Stadtarchiv Zürich). This implies that the (landed) property of the Charasoff family must have been outside of Georgia, presumably in Armenia or in the Ukraine, since in December 1919 Georgia was still a Democratic Republic, which had not yet been occupied by the Red Army. Lily Charasoff also stated, in a letter of December 1919 to her stepbrother Downloaded by [Orta Dogu Teknik Universitesi] at 12:40 30 March 2016 4 History of Economics Review _____________________________________________________________________________ Alexander, that ‘we still own a factory, but this is out of use and earns us no money’ (Vormundschaftsakten ‘Kinder Charasoff’, Stadtarchiv Zürich), which implies that in 1919 Georg von Charasoff must also have owned a factory in independent Georgia, besides his (landed) property which had been seized by the new Russian government. When Charasoff enrolled at the University of Zurich in 1910, he gave as his parents’ address ‘Frauen B. v. Ch, Tbilisi, Gribojedowska N. 3’ (Matrikeledition, Universität Zürich), which suggests not only that his mother was still alive in 1910, but also that she had not re-married after his father’s early death in 1890. In documents of 1919, which are preserved in the municipal archive in Zurich and concern Charasoff’s four children, there is no mention of their paternal grandparents (but their maternal grandparents are stated as living in Odessa). There is, however, a reference to an aunt (that is, a sister of Georg von Charasoff), who is stated as living in Baku, Azerbaijan (Vormundschaftsakten ‘Kinder Charasoff’, Stadtarchiv Zürich).
Only some rather general information can be provided with regard to Georg von Charasoff’s childhood and youth. Throughout the nineteenth century Georgia and its capital Tbilisi were part of the Russian empire. However, after the formal annexation by Tsar Paul I in January 1801, the Russians succeeded only in controlling the eastern part of Georgia, while the mountainous regions in the west remained independent for another decade; Russia indeed never obtained full control over all of the mountainous regions in Western Georgia. Under the Russian reign, Georgia was subjected to an intensive ‘Russification’ in order to adapt its cultural, social and administrative system to that of the Russian empire. At the same time, Georgia was also opened up to Western ideas and culture. In the mid-nineteenth century, enlightenment ideals, liberalism and modern nationalism blossomed in Georgia. European literature was translated into Georgian, European art and music were imported and amalgamated with local traditions, and there developed an interesting cultural and artistic life in Tbilisi, which was sometimes referred to as the ‘Paris of the East’. In order to silence Georgian (and Armenian) calls for independence and to secure the Russian authority, the Tsar installed Count Michail Voroncov as ‘Viceroy of the Caucasus’. Voroncov, who had been educated in England, modernised trade, industry, infrastructure and town planning, introduced primary schools and founded two gymnasiums, one in Tbilisi and one in Kutaissi. However, it was only in 1917, after the fall of the Russian Empire, that a Polytechnical University was first opened in Tbilisi, followed by a State University in 1918. Serfdom was officially abolished in Georgia in 1866, but semi-feudal relations remained in place for a considerable time. The gymnasiums in Tbilisi and Kutaissi were run on rigorous disciplinary lines, following the Russian educational system. Not surprisingly, many young Georgians were decidedly anti-Tsarist and anti- Russian, and open to radical patriotic and revolutionary messages (Hausmann 1998: 172). In 1880, the Georgian capital Tbilisi had 86,455 inhabitants of which 38,513 were Armenians, 22,285 Georgians, and 19,804 Russians (Jersild and Melkadze 2002: 47).
The Richelieu gymnasium, which Georg von Charasoff attended from 1890 to 1893, was one of several institutions which had been founded by the Duke of Richelieu during his reign in Odessa. It was intended as a gymnasium for the sons Downloaded by [Orta Dogu Teknik Universitesi] at 12:40 30 March 2016
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