A Russian Problem.

Evening Star, Issue 17955, 28 April 1922, Page 4

A Russian Problem.

Tin; economic troubles at Russia, which the Genoa Conference seems more and more unlikely to solve, or appreciably to relieve, are many mid complex. A'ot the gravest of them, though one that is sufficiently grave, apart from the aspect of it that makes it resemble a tinge, unbelievable joke, is that its Government cannot print paper money fast enough for it. A description of the plight in which the Russian currency stands to-day which a special commissioner of the London ‘Observer’ furnishes to that journal reads more like a gigantic effort of Cheslcrtonian humor than a description of economic conditions in any real country ; hut there is no cause to suspect this journalistic investigator of exaggerating the facets. Russia's financial position, ho points out, is nothing but il string of paradoxes, and tho strangest of them all is that Russia of to-day is a country of millionaire-paupers. As the groom, tho butler, and the cook, the cleaner of the boots, and the scrubber of tile grate in Gilbert's Socialistic Arcadia were all aristocrats, and no better off for that, so the boy who sells newspapers and tho boy who soils cigarettes in Russia alike deal in, millions. Tho term has become so common that a popular nickname —one of many—for it is a, “lemon,” as descriptive of something like the value which tho great sum possesses. A pound sterling has the value in Russia of five million roubles. The term that used to measure wealth beyond the dreams of avarice is required now for tho humblest commercial transactions. Big business is measured in milliards, or thousands of millions, while State finance is a matter of millions of millions—tho magnificent trillions which run to thirteen figures.

The average daily issue of paper money is reckoned now at over 300 trillions of roubles. It, is not enough, because the more the output increases tho more its value diminishes, and tho more tho cost of living rises to meet it, or rises in anticipation of further inflation. Four largo printing works, established in four cities, and employing now altogether 18,000 workers, with day and night shifts, print paper money for Russia in ever-increasing quantities. The rulers who encouraged this frantic business for four years with the object, of abolishing money by inflating it out of existence would be glad now to reverse the process. That they can do no more than the captain in the fairy tala who purloined tho magic machine for grinding salt, But forgot to possess himself of the word for stopping it, with the result that it is grinding still at the bottom of the sea, to which his ship was sunk by the pbrsistent stream. Reflation is to-day the policy of the Soviet, but inflation is so unceasing that a joke in Moscow is that tram fares should be collected when the passenger enters, and not when ho leaves a car. If they are left so long the money declines in value, and more is required to make a fair return for the municipality. During two months of tho commissioner's stay in Moscow tho price of white bread ascended from 18 to 160 thousand roubles tho pound. Tho Russian worker suffers the affliction of King Midas, for whom everything lie touched was turned into gold, with the result that he could neither eat nor drink. And in this result of paper money, ground out in almost limitless quantities as a solution for difficulties which it increases, and in accordance with what used to bo one of the fondest of Labor theories, there is nothing surprising. It was the same, in a less degree, after the French Revolution. Franco recovered from its financial troubles. Can Russia recover? The ‘Observer's’ inquirer believes that it can, if production can only bo restored and trade on a proper scale with the outside world developed. But that will not bo more than the slowest process.