THE SOVIET.

Press, Volume LXII, Issue 18659, 7 April 1926, Page 10

THE SOVIET.

CURRENCY PROBLEMS, ,-ji " Soviet Russia, because rf it* djSßgsji £§ and opposition to, currency I)|l>im Si viously in force, hu offend naifs* ejf£| to would-be monetary glggjy losing them absolutely free atopTwlffl activities. The Soviet Governs*** opportunity to nUrt with a <tyr%ij *I2S realise the fondest drama idealism, say* the "SUtitt," with MtfElß economic matters as sbsohrt* as ancient Sparta. How was this «m2Si utilised? The answer is vxirk recently translated into KaJtSaVfU rency Problem* and Policy cTtho §aH Union" (Professor L. &Yvionkri. feasor Yuroveky is chief of tha mshß department in the People's ConsafassxlilH Finance at Moscow, and his lraaHaVlßiS purely descriptive character, shews naV&sl an intimate knowledge of the lads, tsjlfsfl a grasp of the wider aspect* «t sMmH \ . Pre>W«r OoW.. k . ;9 Thanks to the reforms of Conat wßSgffl 1895, tho monetary system in BsasisvaSH outbreak of war was *> sound fj sJHgflj gold standard. Gold coin* were &|B tion, and notes of the Stat* issue of which no legal nnnims|.i tSHH were more than covered, cent'str MfSH gold. As in erery other try the early day* of the W '•jftSSH the suspension of tree coanrtihffitf into- sterling, and restriettons savta aSBH metallic backing to the cir«sjslsafi»H| withdrawn, while notes wen iissjsJSSß shorter term Treasury notes *!se ssklMHw as may become necessary to ouireraents arising from the rtIKnSH By 1917 the annua! Budgetary 4sJh9H| risen to 22,568 million roswss.lf covered to the extent of T> the issue of notes. The of the rouble had only been iesla*aaVS9H one-third, cf whtt it had been the time of (he 1917 the volume ot paper mossy-ist <tan*Mlfl^| Bain of Fnp«;, ..j,Jj|H This discrepancy between **% JnJMHH crease in circulating ii its value ia to be a> disappearance of. raetsQir dilation, to the reduced uniJMpJ|iS9 it etruments, and to the comsansjKMß i ing of paper notes by the P**tMff||flH the disappearance of the mont ,in October, 1917, *** <w N9il rouble.shrank to one-tenth el purer-„'ing power. The sup'sass IjWM was tuen usurped by a C° T * nu * r aiming at the complete capitalistic relations, and of inherent in a money economy, to build up an economic money was to become altogather all economic activity being B *t* o Government began to effect the free dirtribntion of goods ,iiut. the need for money 4tf|Mj|ljßHj 'disappear.- The warn s sjußl' Eenikin, Wrariijel, and nnsJry'ljsjsiMgM not be carried on by * yielded by , the grain - wa nationalised industries. notes were - necessary to monetary expenditure. So of printing notes did not chasing power -the method of taxation. By note circulation had flu 'million roubles, where it ning of the Soviet regun*, lion roubles, and within .months had npjkw than 4oaM|jj|j|HHHJ revenue from the inn* Became negligible about Us> >"fMH9H| Not only <had the dawn, but economic activity 1 lysed, and the raeans-of large proportion of tM.pesMMMfj|NHH gered. The famines of IBW{vfMH to fundamental changes of sant vraa given the nghi ei a p»BiiHßM| over the product of Jus ing that product into-the »*MgHH| Economic Policy, then iiauwrnHH tated a monetary system. *. preceding period of War' necessity for some stable been recesjrjaed, and" units, such as the .vised, only to prove I * l * a 9 l '!9Ss|^^^H tlon ' : n^^'^s^HH After a discussion on tal of.the pre-war rooMe, pre-war gold parity, s f£'WJfl£9HH| the gold rouble was Chervonetx created. Tbe issued in this rertible into sterling, tit— .PPWBWbIsM 'of _ the currency to that *'fflSß^W^B serve rs small"changa,''*■?'s .were still utilised***; by, the Government, i T TT priftice led to was remedied -by a '■w a wS999BgflH early in 1924, rigidly *<9SlflflgsiH the limits of the tokens While * «**! parity and the fate lished, this" tained st 10 roublesat The Ttressnt the same a* that in war, and embodies tics of the gold gold-exchange standarf, proportion of the is kept in the gold centre*. It is the irold standard that should have been perience thst only by » currency system conwnomic rehabilitation be *l!^wHv^^^^H