RUSSIAN FINANCE.

Taranaki Daily News, 24 March 1919, Page 7

RUSSIAN FINANCE.

NEW CURRENCY. It is well known that the disordered condition of affairs in Russia has upset the currency system in that country (states the Daily News). Within the space of two years there have been printed an enormous volume of notes, which circulate under the title of Imperials, Kerenskys, Archangels, and Bolsheviks. These notes have varying values, but are all greatly depreciated and are likely to further depreciate, as the priating presses are in the hands of certain people who are continuing isMH! them without regard to the value of t/ie currency. The Allied Governments have an army of occupation in Northern Russia, in the Archangel and Murmansk districts, arid the enormous difficulties created by the depreciation of tho Russian note issues has at iast determined the British Government.to take the bold step of creating a new rouble for these Northern districts. It has accordingly arranged with the Provisional Government of Northern Russia for the establishment of a new rouble currency at a fixed rate of exchange of forty roubles to one pound sterling. —ln Archangel—

In order to carry this reform out an Office of Conversion has been established in Archangel, with the power to issue such rouble notes in exchange for sterling at the above rate. The sterling so reecived will be deposited at the Bank of England, and will be held as an inalienable reserve to ensure the convertibility of the notes into sterling at the rate of forty roubles to one pound sterling. Arrangements are being made to enable any person wishing to remit, from the United Kingdom to Norther*; Rvsin to have, subject to any regulations under the Defence of the Realm Act for the time being in force, Northern Russia rouble r.otes held at his disposal in Archangel at the above rate on the deposit of sterling at the Bank of England. British banks will be prepared to negotiate notes so Issued for* conversion into rterling at the same fixed rate of exchange. An experienced British financier has been appointed to act as adviser to the Provisional Government of Northern Russia in order to supervise the organisation and control of the Office of Conversion in .Archangel He is Mr E M. Harvcv. a member of a well-known firm of discount brokers m the city, and hie nosition will he a very delicate one. as his duty will be to arrange that the. conditions under which the notes are issued olmll be duly observer! T'usinivw men will at once see the' great advantage of these arrangements, Great Britain receives large quantities of flax, hemp, and timber from Northern Russia, hut Russian exporters of these commodities, although they have large sterling balances in London owing to their sales of such produce, have been unable to remit the monev home. Their onlv course was to buy up rouble notes in London, which, owing In their heing obtainable in small quantiH". only, rose to an inflated value coninc""' to their buying power in Russia, an ' consequence, when tnese exporteis '■>■ faired the notes they found thai thev were of little value in settling matters at home compared with the price paid.

By the establishment of a new rouble, fully secured, a stable enrrenev ■mould he nut In force, end this will enable trade between Northern Russia and foreism countries to eraduallv resume something like normal conditions. On this side there sliohld be no difficulty in taking advantage of the fasilities offered, but the whole scheme must, of course, depend upon the note issue circulating freely in Northern Russia- That is a matter affected by local sentiment, but there should be a great, Incentive to thetr being senerallv emploved from tho fact that the nrmv of occupation will naturally pay for all the supplies In this tana.