RUSSIA REDUCES PRICES OF FOOD AND CLOTHING

Gisborne Herald, Volume LXXVI, Issue 22883, 1 March 1949, Page 5

RUSSIA REDUCES PRICES OF FOOD AND CLOTHING

(11 a.m.) LONDON, Mar. 1. According to the Moscow radio, Marshal 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., woollens and clothing by 12 per cent., silk textiles by 10 per cent-, silk stockings, socks, men’s headwear by 15 per cent., furs and household goods, such as pots and pans, by 10 per cent. The Moscow radio said the reductions marked the second stage in the campaign for reducing retail commodity prices, The decision was possible because the value of the rouble had appreciated in relation to foreign currencies and it, therefore, was possible to produce goods at a lower cost.

Improved production methods had also lowered the cost of produced goods.

Huge Saving to People 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 of the Soviet scheme—begun in 1947—was currency reform, 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 fixed the nominal rate of 21.5 roubles to the pound sterling but this figure is not quoted in London.) The decree said the loss to the State in making these reductions “must be covered and undoubtedly will b&’ covbered by the Government b means of a number of economic measures in spite of serious difficulties that will have to be overcome in doing so." The reductions would have the effect of considerably, increasing the real wages of the workers and intellectuals. Other price reductions include liqueurs, 25 per cent, perfumes and pianos 20 ner cent, gramophones, clocks and watches 30 per cent and cameras and binoculars 10 per cent.