The critical economic state of Europe has naturally roused great interest in Russia, since it is expected that her revival and the resumption of commercial relations should materially help to alleviate the crisis which now threatens Europe.
After four years of rule over Bussia, during which their only aim was to destroy capitausm that country, the Bolsheviks have come to the conclusion that the only way to retain the power to which they are desperately clinging is to introduce capitalistic principles, establish sound business relations with Europe and secure credit, without which they are unable to exist. The Soviet Government has opened banks, cooperative societies, insurance companies and has also permitted private trade.
Hitherto the financial policy of the Government has been very simple; whenever money was required, the printing presses were set to work and all the money it. wanted was there, though no steps were taken towards securing the currency issued by a corresponding gold deposit.
According to the Petrograd "Pravda" (Dec. 30, 1921, and Jan. 1, 1922) the issue of paper currency during the rule of the Soviet was as follows: In 1918 the Government issued 24 billion roubles; in 1919 163 billions; in 1920—965 billions and in 1921—10,960 billions. The estimate for the first nine months in 1922, whereby the rate of exchange for the beginning of this year was taken in consideration, called for an issue of a further 20,000 billion roubles. But as it is expected that this paper currency ill undergo a still greater depression, this figure may prove below requirements. The attempt of several foreign banks to accept the Soviet paper currency at a certain fixed rate did not bring satisfactory results on account of the irresistible drop of that money which made all transactions impossible.
The Minister of Finance, Krestivski, recently urged in a. spece! on the financial policy that the Soviet should discard the old financial policy, which aimed at the complete abolition of money and instead adopt a method which would tend to stabilize it. The ninth All-Russia Conference of the Soviets approved of this measure and insisted on the urgent necessity of introducing a currency based on @ gold reserve, the reduction of the issue of paper currency. At the same time it was found imperative to adopt such measures as would ensure the regular inflow of taxes. It was further resolved that no more economic services would be rendered by the State free of charge, as had hitherto often been done. The estimates for the coming year were revised ant a number of items were either entirely struck off or greatly curtailed so as not to increase the deficit of 230 million roubles. Ir was also resolved to reduce minimum the financing of industrial and commercial enterprises owned by the State.
Text read from the printed page and cleaned; old type leaves the occasional error.