BEHIND THE VEID.

New Zealand Herald, Volume LX, Issue 18333, 24 February 1923, Page 13 (Supplement)

BEHIND THE VEID.

PRESENT-DAY RUSSIA,, BACK TO SYSTEM OF BARTER. The following picture of Russia as it is to-day is given by a special correspondent of a London paper, on materials furnished by people peculiarly in a position to knew the facts — There appears to be a growing belief in this country that Russia is returning to sanity,, and that she may now take her place once more among the civilised communities of the world. Traders, bankers, and merchants are beginning to turn their faces toward her, once one of wur best customers, and many of them, fearin? to take the risk alone, have been approaching th« Government with a. hope that the State might shoulder some of the risk and responsibility of their enterprise.

It is for this reason, having lately had the privilege of meeting come of those gentlemen whose business it is to watch Russian affairs from the inside, that I give a brief description of the picture left in my mind from their accounts. * It is that of a people in a village recently overwhelmed by a flood, which has now subsided, looking round for implements and materials to restore their ruined homes. The implements are few; many were buried or washed away; those that have been salved have to be shared and passed from hand to hand, the materials are scattered about and difficult to collect, but a few shacks have already beon erected, bickerings and quarreling have been stopped, and men and women are setting about their work with a stoical indifference and callousness towards any of their number whom misfortune overtakes or who are unable to shift for themselves. A New Bourgeoisie. Since March last private enterprise has been recognised in Russia "de facto," if not "de jure." The Government defends this antithesis to the precepts of the doctrine of Communism by saying that though all property belongs to tho State, any man may lease any he requires from the State so long as he can prove that ho can make good use of it, arid pay portion of the income he derives from it to the State; which is, after all, the doctrine of most Governments, including our own, since the days of feudalism. In consequence of this a new bourgeoisie has arisen which, while still professing the faith of Communism, virtually enjoys tho rights of private ownership. On the other hand, it 13 from this class that the Soviet Government derives its chief support, inasmuch as its members, having now some stake in the country, do not wish to risk losing io through a change of Government. It can, however. be said with confidence that the theory of Communism has had it s day; and it is no longer a national idea, only a political one, and it is gradually and quietly being pushed aside. The Merchant Venturers.

For those who hope to trade with Russia, the situation seems briefly to be this :—• Russia has been thrown back to the Middle Ages; she must be dealt with by Middle Age methods. Our merchants who go there must consider themselves as the merchant adventurers of old. They must ask for cash down and prefer barter to money, except gold. If they give credit they must take the risk. At any rate, for the first few years it is not- likely a bank will discount a bill on a Russian company. But a great deal may be done from small beginnings. Cash at first may feecome credit later. Though there will be riski. there will be profits, and it is the only way to save Russia. The chief trouble in Russia, needless to say, is money. The rouble has been inflated to such an extent that it burst, was inflated again, and burst again, and so on repeatedly. The method of "bursting" the rouble usually employed by the Soviet Government is that of periodically crossing out noughts, making, for instance, the 10,000 rouble note into a 10 rouble note. It must be confusing, but has been done so often that the Russians are quite accustomed to it; besides, it does not matter much, it very soon gets back again, and as a rule the 10,000 rouble note is the smallest in active use. Agriculture the Hope. Agriculture is regarded as Russia's one hope. In fact I was repeatedly told that, given security of ownership, licence to trade, and two good harvests, Russia would be on her feet again. Cattle and horses have suffered severely, the latter especially from. strangles. The peasant farmer will not sow more than he needs himself, because he cannot sell it. There is a lack of agricultural machinery because the farmer cannot buy. The Government have stores of agricultural machinery in Moscow which they cannot sell. There is, however, some hope in the regeneration of the agricultural co-operative societies, but they need capital. Some quantity (not large) of wheat was exported recently, even from the famine areas, the reason being that the exporters got money which the}' could f not have done had they tried to sell it in Russia. Russia's population to-day numbers 120.000,000. It was 180,000,000 before the war, but this included Poland and the Baltic provinces. Probably from ten to fifteen million have died of war, revolution, and starvation. . ,ti . Nineteen thousand emigrants left for Canada last year. They were, however. Mennonites, agriculturists. Lutherans, and ?ood citizens, and much thought of in the Dominion. A certain number of other emigrants, mostly Jews, leave for America, their passages being paid by their families or relativeu across the sea. Oil is, of course, still plentiful, and only requires transport It is Russia s second hope. There are plenty of motors, mostly Government ones, in Moscow now.