Prof. Nikolay Nenovsky
University of National and World Economy, Sofia
Université de Picardie Jules Verne, Amiens
[email protected]
Simeon Demostenov (1886-1966)
Russian-Bulgarian student of Carl Menger, founder of the pure economic theory in Bulgaria
The article presents the main scientific achievements of Simeon Sergeyevich Demostenov, professor
of many years of political economy in Sofia University, the most theoretic and profound Bulgarian
economist (of Russian descent), who has worked and created between the two world wars. His
textbooks on political economy, theory of money and banking are read and used by the Bulgarian
economists to this day.
The article consecutively discusses:
(i) Contributions and new moments in the methodology of the economic science (Demostenov
suggests an original development of the subjective school in its Austrian version, strongly
influenced by the theories and approaches of his teacher Peter Struve).
(ii) Profound analyses of the pure theory of money, and creation of a new analytical approach, which
exceeds the nominalism and substantionalism. Demostenov systematically shows the logical and
empirical limitations of both these approaches. This allows him to outline the functionalism as a
theory at a new higher cognitive level than the two mentioned theories, their organic synthesis.
(iii) Erudite studies of the history of theories of money, particularly the history of Carl Menger’s
theorem on the origin of money (his memories of the conversations with Menger are extremely
interesting).
The achievements of Simeon Demostenov are discussed in the light of the period he creates in, often
called “the period of high theory”. As a representative and follower of the pure theory, Demostenov is
compared with the other three leading Bulgarian economists (all three of Russian descent !), namely
Ivan Kinkel (sociologist and follower of the historian school), Oskar Anderson (statistician and
follower of the quantitative and empirical methods), and Naum Dolinsky (who has adopted an
interesting evolution from pure theory to applied studies, mostly agrarian).
The article mobilizes the publications of Simeon Demostenov (mostly textbooks, monographs and
some articles and studies), as well as original documents from the archives of his colleagues and
friends (for example the archive of Konstantin Bobchev).
Notes
1
After his arrival in Bulgaria in 1920, Simeon Demostenov devotes himself exceptionally to the pure
economic theory, mostly the theory and history of money.
His main books in Bulgaria, except the three-volume Theoretical Political Economy, Sofia, 1943,
republished in phototype in 1991, are devoted to the money theory and the doctrines on money.
Among them are: Essays on the Theory of Money, part I, Court Printing House, Sofia, 1937; Essays on
the Theory of Money, part II, University Printing House, Sofia, 1945; Some Controversial Questions
on the Monetary Theory, Yearbook of the State school of finances and administrative sciences, Sofia,
1942. In this line we can mention also his study published in Scientific Review journal, issue 2, 1930 –
The Problem of the “International” and “National” Money in the Literature of XVI – XVIII Centuries.
Although he does not publish applied and empirical analyses, Demostenov is exceptionally qualified
in this field as well. It is evidenced by his book, which he has started yet in 1915, i.e. before his arrival
in Bulgaria, and has published in Bulgarian in 1927 as a book entitled The Mechanism of Formation
and Movement of Prices on the Russian Food Market during the War (1914-1917). This book, devoted
to the pricing during the World War I in Russia, is a generalizing result of a few empirical studies of
Demostenov, published in Russian in the period 1915-1921. Exactly the book on the prices serves as a
base of Demostenov’s only publication in English Food Prices and the Market in Foodstuffs. It is
published in the collection under the guidance of Peter Struve Food Supply in Russia during the World
War (pp. 215-467), a publication of Yale University Press in 1930.
After he is expelled from Sofia University in 1947, Simeon Demostenov’s faith is unknown. The only
known thing is that in 1950 he emigrates with his wife in England and dies in 1968. Biographic
information about him is so scanty and most importantly contradictory (for example where he is born,
where he studies, where he teaches before coming to Bulgaria, how he comes to the country, when he
dies, etc.) that I would not wish to go into details without at least a little clarity on these matters.
2
In the summer of 2012, working in the archive of Konstantin Bobchev (1894-1978), Bulgarian
economist, teacher and long-time public servant in the field of foreign trade and industrial policy, I
came across four letters, two from Konstantin Bobchev to Simeon Demostenov and his wife Maria
Demostenova, and two letters from Maria Demostenova to Konstantin Bobchev and his wife Tania
Bobcheva.1
This correspondence shows that professor Simeon Demostenov has died in London on 12th of June
1966 (not in 1968 as it is considered) and that he is buried in London together with the famous
Russian philosopher Semyon Frank. When learning of the death of his friend and colleague,
Konstantin Bobchev prints an obituary, a copy of which is in his archive. Both letters of Demostenov’s
wife, Maria, present facts and experiences from the last days of the famous economist (the letters date
23rd of April 1964 and 4th of August 1966).
1
National Library Archive, stock 279, archive unit N 5, Correspondence and letters.
Simeon Demostenov’s grave in London (Hendon Cemetery).