RUSSIAN FINANCE

Otago Daily Times, Issue 23205, 1 June 1937, Page 5

RUSSIAN FINANCE

TO THE EDITOR Sir, —In reply to Mr John Stephens, it is necessary to point out that in Russia industry has not yet attained to such a degree of efficiency as to render money unnecessary. Full details of the Russian financial system can bo obtained in a book by Mr R. B. Reddaway, of Melbourne University, who obtained first-hand information from State Bank officials in Moscow in 1934. He likens the whole Russian system to a huge industrial concern in which the accountancy department —i.e., the financial system—co-ordin-ates and controls the various working departments. The central financial institution is the Gosbank, which consults and co-operates with the compilers of the industrial plan in arranging what goods shall be produced and in what quantities, and in allocating funds accordingly. The mechanical work of collecting and distributing funds for industry, agriculture, housebuilding and communal works, and the co-operative system, respectively devolves on four subordinate banks, whose duty it is to secure industrial efficiency by the exercise of strict financial control. The Gosbank obtains funds from the Budget, and the Budget obtains more than half its funds by taxing the various enterprises, more especially those which turn out goods for final consumption. The Douglasites may be interested to learn that prices are fixed, and that the paper rouble is inconvertible and is unlimited except by the requirements of industry. But in Russia all industry is State-owned, and controlled in the public interest. The Douglasites would introduce Social Credit—i.e,, public finance—for private enterprise. Impossible.—l am, etc.. Bslclutha, May 30. H. Gow.