Russians Spend Furiously in Fear of Currency Devaluation

Otago Daily Times, Issue 26636, 5 December 1947, Page 5

Russians Spend Furiously in Fear of Currency Devaluation

Rec. 10 p.m. WASHINGTON, Dec. 3. The State Department’s radio, “Voice of America,” to-night reported that Russians have started a wholesale run on banks and stores in Moscow and other Soviet cities, because of the fear that the rouble was losing its value. The report was attributed to travellers returning from the Soviet. The radio said that crowds were anxious to exchange Soviet currency for any durable goods and were besieging shops last week. Many stores were said to have closed for “ repairs ” or “ inventories,” while savings banks were said to have limited withdrawals to 200 roubles daily. The radio also said that rumours were widespread in Russia that the Soviet Government was preparing to issue new currency effective on Friday, which would wipe out the present currency. Shops still open were reported to have had many bare shelves, and luxury restaurants and cafes were crowded by persons eager to spead excess roubles. One peasant woman was said to have bought two coats with a bundle of money apparently long buried. She had much difficulty with the store cashier, who was loath to accept the money because of its filth and smell. Although the broadcast was carried in virtually every language used by the United States official radio, it was not beamed to Russia.