SOVIET CONTRASTS

Southland Times, Issue 19101, 20 November 1923, Page 5

SOVIET CONTRASTS

RUSSIA FACES ECONOMIC CRISIS. BUT MAKES HEAVY AIRCRAFT PURCHASES. (By Telegraph—Press Assn.—Copyright.) LONDON, November 18. The Riga correspondent of the Times states: 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 the 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 new-rich foreigners are buying Soviet products, the prices whereof, though below cost of production, are mostly higher than similar products of other countries. This week the Soviet stores reduced prices 10 to 15 per cent. Even this is not sufficient to bring much-needed articles within the reach of the masses. Notwithstanding the financial crisis, the Government continues to expend great sums on the acquisition of aeroplanes. During September and October it received 150 new ’planes 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 frontier, whilst the oldest will be sent to Siberia and the Far Eastern frontier The Isveetia points out that the new 'planes 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. She is now giving her real reply by acquiring ’planes to answer every ultimatum from her enemies. Hopes are shattered against the invincible steel will of Russia’s proletariat.