Soviet Russia

Hawke's Bay Tribune, Volume XIII, Issue 286, 19 November 1923, Page 5

Soviet Russia

An Economic Crisis OUTPUT OF STATE FACTORIES. A DEARTH OF BUYERS. GROWTH OF THE AIR FLEET. (By Cable.—Press Association.—Copyright.) (Received 19, 10 a.m.) London, Nov. 18. “The Times’s” Riga correspondent states that Soviet Russia is faced with an acute economic crisis. The immediate problems confronting the Soviet are wide commercial and industrial enterprises and how to find means to pay the workmen. The production of factories, though small, is greater than the demand. Manufacturers have not sold because the impoverished and. intolerably taxed peasants and townspeople are unable to purchase even necessaries. Only a few rich foreigners are buying Soviet products, the prices of which, though below cost of production, are mostly higher than those of similar products of other countries. This week the Soviet stores reduced prices ten to fifteen per cent. Even this is not sufficient to bring muchneeded articles within the reach of the masses.

Notwithstanding the financial crisis the Government continues to expend great sums in the acquisition of aeroplanes. During September and October it received 150 new aeroplanes from abroad—some from Britain and others from Germany and Holland. Some were delivered complete and others in parts for assembling in Russia. Most were delivered at Petrograd. Practically all the new machines will be stationed on the western frontiers, whilst the oldest will be sent to Siberia and the Far Eastern frontier. The “Izvestia’’ points out that the new aeroplanes are called “ultimatum detachments”- to commemorate Lord Curzon’s ten-days ultimatum sent to Russia last May. Then Russia for tactical reasons was forced to retreat. Slie is now giving a real reply by acquiring ’planes to answer every ultimatum from her enemies until her enemies’ hopes are shattered against invincible steel and the will of Russia’s proletariat.—(T imes.)