PRICES CUT IN RUSSIA

Press, Volume LXXXV, Issue 25742, 2 March 1949, Page 5

PRICES CUT IN RUSSIA

DECREE SIGNED BY MR STALIN

COMMODITIES 10 TO 28 PER CENT. CHEAPER LONDON, February 28. v CO i ( be Moscow radio Mr Stalin has signed a .decree reducing the retail prices of bread, butter, flour, tobacco, fish, and meat by 10 per cent. The decree also reduces the prices of cheese by 20 per cent, vodka by 28 per cent., woollen clothing by 12 per cent., silk textiles by 10 per cent., silk stockings, socks, and men’s headwear by 15 per cent., and furs and household goods such as pots and pans by 10 per cent. The Moscow radio said that the reductions marked the second stage in the campaign for reducing retail commodity prices. The decision had been made possible because the value of the rouble had appreciated in relation to foreign currencies, and it was therefore possible to produce goods at a lower cost. Improved production methods had also lowered the cost of produced goods. The Moscow radio said that as a result of the reductions Russians would save altogether “about 71.000,000,000 roubles in one year.” The decree recalled that the first stage in the Soviet scheme—begun in 1947—was currency reform, the abolition of rationing, and the initial lowering of prices. This had resulted in goods being 57,000,000,000 roubles cheaper in 1948. (Reuter says that the Soviet Government has fixed a nominal rate of 21.5 roubles to the £, but this figure is not quoted in London). The decree said that the loss to the State in making these reductions “must be covered, and undoubtedly will be covered by the Government by means of a number of economic measures in spite of the serious difficulties that will have to be overcome in doing so.” It added that the reductions would considerably increase the real wages of the workers and intellectuals.