TRADE IN RUSSIA

Evening Post, Volume CIII, Issue 3, 5 January 1922, Page 8

TRADE IN RUSSIA

BRITISH VISITOR'S STORY

INCREASING PBODUCTTON,

/Mr. Arthur G. Marshall, managing director of the Becoe Traders, formerly . thp British. Engineering Company of Russia and Siberia, who has returned to .'England recently from Moscow, gave an account of trade in Russia.to the Manchester Guardian. Mr. Marshall, whoa© -firm has branches and stores 'h; fifteen towns; in/Russia, said: "When I arrived in Moscow in September the place had a deserted .appearance. There was virtually only one per cent, of the shops open, and their contents could have been, bought for a very small sum. Th« new economic policy of the Russian Government h*d been in force since the spring, but had evidently had little effect. A large amount of street trading was being done, but that was .all. During my two months' stay . shops - were constantly being opened, and when I left the city.presented a very' different appearance. ~v It wai- ; possible when I left to buy \in Moscow any of the necessities of. life, 'although""prices were certainly higher. • " Shop prices at first were based on the street prices, and trade soon veered round to them. Compeition led to a reduction in prices to the benefit of the customer. To give an example, the best veal, which was fetching 18,000 roubles a pound when I arrived in. Moscow, could be.bought for ,15,000 roubles a pound when I left. The delay in putting the new economic policy into 'operation- was evidently due to hesitancy on the part of traders, and once this had been got over everyone seemed to desire to extend his business as rapidly as possible. The, profits resulting from these new businesses are very consider-able.-In a comparativelyl small baker's shop the'average daily turnover was from twenty-six to twenty-eight .• . million roubles, of which the profits were some six to eight million roubles a day. This represents'in British currency at the then rate'of exchange, £6000 or £7000 per annum. " Not only-does the Teyival apply to internal trade, but old factory proprietors are now arranging to rent their former works' from- the Russian ' Government, and put them into operation. I had an opportunity of discussing one such case with the old proprietor, who was strongly opposed to 'all Communistic theories, but who stated that he did.net see much difference, except in name, in his paying the Government, rent for . thj> works and the English system of payii;g the Government a tax on profits. . The whole attitude of the people has. undergone a remarkable change'as the result of this freedom to achieve for themselves the benefit of their own endeavours. Apathy has given way to the desire to increase production and commerce. The peasants are bringing in their produce to the towri3, because they are now in a position to take back goods in return. , " I found that virtually nobody was getting a.'sufficient salary «n which to live, and yet, everybody was living, and a number in comfort. The reason: for this was that nearly everybody, in addi-. tion to his normal work, was engaged in buying and selling. The nation, you might almost say, was living by taking in, ( each other's washing, and the result: was a constant depreciation in the cost of living, and depreciation in the currency. ' \ ' . ; ( "It is essential if the revival.in trade is to continue and increase that Russia should receive support and assistance from outside. Agricultural machinery,, tools, and materials must be imported on a large scale from abroad, which neces-. sarily:. means the granting to' Russia of credits. It is undoubtedly true that these credits had much better be granted, and are much safer if granted direct to the Russian Government than to any individual undertaking." . Mr. Marshall added that he did not ■ wish to picture conditions in Russia in too rosy a light, but the Russians were extremely anxious that Great Britain should take a hand in the reorganisation of industries, the development of ■ agriculture, timber, and mining, and the re- | establishment of railways.1