The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-25
DECIDED CHANGES
MADE IN ECONOMIC
POLICY OF RUSSIA
New Government Ideas
Predict Abandonment
OF Socialism.
OUTPUT is SMALLER
Communistic Management OF
Industry Brings Decline
In Production.

Decided changes in the eoopor,i,
policy Of the government OF Rusds
predicting abandonment Of Socialism
have taken place recently. according
70 review Of statements appearing
In the Soviet-controlied press OF tbs,
country as complied by the Bureau of
Foreign and Domestic Commerce ~
the Department OF Commerce
The most useful sources Of specific
statements concerning conditions IN
Russia are the Russian newspaper
These papers are all controlled by tho
Soviet authorities and represent AZ
least the policies Of the Soviet Gov
eminent.
The communistic MANAGEMENT Of in.
dustry had resulted In great do.
cline Of production and a general dis
organization Of economic life. This
decline is conclusively shown bv
statistics in Soviet newspapers. and Is
frequently admitted BY Bolsberist
leaders. A whole series Of published
reports OF different commissioners
covering the FIRST half OF 1921 show
extremely small output Of goods and
services on the part Of all the more
important manufacturing. mining ana
u AaAA0T INDUSTRIES a. comma red
both with prewar periods and with
the year 1890; and the reports them
selves comment emphaticslly on this
decline and give causes for Il.
Lenin. In a speech Of October Iq.
said: The substance OF our new
economic policy is dictated By the
recognition OF the fact that we have
suffered a powerful defeat and COM
mended a systematic strategic re-
treat There can be no doub, in
the minds OF Communists that we have
suffered defeat on the economic from,
and a mighty crushing defeat. and
thus we are facing consciously and
deliberately the new economic policy
The main features o. this new
economic policy. according 10 various
DEGREES issued by the Soviet authori-
ties are:
/. Partial restoration Of freedom 81
trade in agricultural products.
Abandonment OF the practice Of nm
restricted mobilization" or reauisifisu
OF labor. and the substitution Of a
fixed labor tax: that is. the citizen
may be forced TO labor not more than
a specified number Of DAYS on public
works or special public tasks. 3. Allan.
donment in enterprises operated BY
the State Of uniform wages for en-
ployes Of the same general grade. and
the substitution OF compensation &C
cording 70 service rendered. 4 L,eas-
Ing to private individuals or concerns
Of certain industrial establishments
hitherto oprsted by the State s. In
terprises still operated By the State
are TO adopt commercial principles.
paying private producers and other
State enterprises market values for
materials and selling their products
at market value.
Many other minor changes Of policy
have been announced. all aiming IL
the partial re-estsblishment Of private
trade and industry and Al Increasing
the incentive TO production There
are. however, various important lirni-
tsuons with regard TO the degree q
liberty granted to industry.
The Importation Of products into
Soviet Russia in 1921 has shown
marked increase over 1890. but is stil
very small as compared with prewsr
times. According TO Bolshevist statis-
tics. the total weight Of imports for
the first six months Of 1921 WAS
ls2.5e4 long tons. Since that time
the monthly imports have further in
creased The great bulk OF these i'm.
ports have consisted Of foodstuffs and
coal. with limited quantities Of rails
locomotives and agricultural inuie-
ments. and still smaller quantities q
various other products. These imports
have been paid for chiefly by the
shipment OF gold from prewsr re
serves. So ~ as can be asoertsined.
no shipments have been made 20
Soviet Russia from any source on
credit terms. There has been a small
expectation OF commodities from Rus
STA the total weight OF all exports
being reported for the first six months
Of 1891 as 1881 long tons and con
sisting chiefly Of lumber. fax. and
asbestos, together with a limited guam
tity Of furs. platinum and Other
articles OF high value.