RUSSIAN TRADE.

Otago Daily Times, Issue 18995, 17 October 1923, Page 4

RUSSIAN TRADE.

VISIT OF (F)FIMFFCIAL WFX. FAVOURABLE REPORTS. STABILISING CLRRKNCY AND CREDIT. vTkom Oub Own Correspondent.) LONDON, September 7. A commercial mission baa just returned from Russia and lias brought back a favontable report, of conditions in that country. The mission was mainly composed of repteseiilalives of Beeos (Ltd.), which is a union of a number of leading hrms which used to do a very large business with Russia. Mr F (.. Baldwin, chairman of Becos Traders (Ltd.), and Mr Arthur O. Marshall, managing director of the linn, have given their impressions in ".•in interview. “When we arrived in Russia,” they say, ‘‘we found that we were accorded all information we requn ed. and had ml difficulty in investigating anything. Ac saw practically till the Ministers in tlm Russian Government, and they placed at our disposal every detail for whhh we asked. One thing that struck us move titan anything else was tile attempt that Russia is making to stabilise her currency. The view of the mission was that if Germany would be as keen To stabilise her currency as Russia is Gonnany would speedily improve. _ The now Russian currency is known, as T’cbcrvonlzi, and is on a gold basis. Twenty-live per cent, of the issued'currency is secured against gold or gold securities and the remaining 75 per cent, on short-term billls and other securities of an easily realisable mil tiro. The omission of currency is. by decree, confined to tile Russian Slate Bank, and is conducted on strictly banking lines. The bank will not, issue unless against- securities. The proportion of Tchervont/.i to the whole, currency is 2 to 1, or two-thirds with gold security. The value of Ihe paper rouble is being depressed all the time, but it is hoped to replace the paper rouble by the now currency within a short period—six months or a year.

“Another fact which particularly appeals to Englishmen in the present Russian Goveminent’? policy is (he desire to balance their Budget by ruthless reduction of Government expenditure, coupled with taxation.

PRIVATM ENTERPRISE. “The whole situation is intensely interesting. For one thing, tho policy of nationalised industries has boon dropped. Whereas certain factories will remain nationalised, the Government are anxious by concessions to put all other factories on the basis of individual manufacturing, or, in other words, on the basis of private enterprise. They are exactly in the position we were in at tho close of tho war when we began lo denationalise factories, etc., used for war purposes. ’The railways, which were national before the war, will remain so. Russia has achieved a favourable trade balance. Her exports are greater than her imports, though neither are equal to prewar figures. “In Russia llic v have made up their minds definitely to retain this favourable balance. They are going (o stabilise (heir credit as well as their currency, and have laid down the principle that they will enter into no contracts they cannot fulfil and buy nothing for which they cannot pav They are bent on keeping up the stability of (heir gold currency. Tins all necessitates, for the present at any rate, tho continuance for foreign trade of some control, but not that the whole of the trade should remain in the hands of the Government. They are admitting private enterprise into this trade also. There are very great opportunities for British trade in Russia. There are certainly difficulties lo he overcome, but these will gel. less as the volume of trade increases. Russia is a producer of raw material, England is a producer of manufactured goods, and the two countries can work together and not in opposition as regards their interests.

POLICEMEN'S EXECUTIVE RIGHT'S. (‘Regarding labour, it was interesting to note that piecework is now in (he ascendancy. and at rates involving very hard work to earn even the minimum wage. That is much lower, tve may mention incidentally, in buying capacity than before, amounting, it was stated, to only some 60 per cent, Tho workmen say they have to work Very hard for very little money. Not only the Government, hut the people of Russia are putting (heir backs into it Tho Mission returned feeling- very optimistic ns to (ho results of tho country's efforts. We found that order was perfect in the streets, and much belter than under the old regime. Tho street traffic is really controlled. The police carry only an ordinary baton and no arms. If a driver breaks the regulations, such as passing on tho wrong side, the policeman stops him, fines him 100 million roubles, and gives him an official receipt. The executive action has passed from (he police courts lo the policeman, and the public are protected by the official receipts, which must he furnished. “The Government are eager to obtain English machinery, we found, but the demand will be limited to what can be paid for without disturbing iho trade balance.”