Evening journal., 1921-12-21
'SOvIETS TURN
TO GOLD BASIS
De1ation of Russia's Cur
rency Will be First Big
Task of Reds
MANY GOVERNMENT
OFFICIALS TO LOSE
BY EDWIN W. HULLNGER

Omitted Press Stan Correspondent)
MOSCOW CBy Mail). - Denation
OF Russia's currency will be the first
big task TIE Soviet government will
tackle during the Ney Year. Lev
Kamcneff. president OF the Moscow
Soviet and member OF the cabinet,
said In an interview with the United
Press today.
Millions OF billions Of these paper
roubles-so many that no one knows
just how many-have been poured
into circulation from the govern
ment printing presses the last four
years Never in history has any
country been smothered with such
quantities Of paper, and the Boishe-
viks, In essaying 10 bring the na-
tional currency back 70 a gold basis.
are facing the biggest problem OF
finance and banking that ever con-
fronted a nation.
They hope 20 do II. Kamcnen said.
in the short space OF two years.
"As a frst step toward stabilizing
the value Of the existing issues. the
/ Moscow stock exchange will be re-
/ opened In December" Kameneff
said Complete freedom OF trade in
Russian and foreign moneys. both
/ paper and gold, stocks and bonds.
and all kinds Of commercial paper
will be allowed, just as on Wall
Street.
This will invest the roubie with
some actual market value. an abso-
lutte essential 10 foreign credit No
Russian Arm can hope 10 obtain
credit abroad or conduct business
with any regularity so long as the
paper rouble has no standard value
except that upon the Illicit money
curb. whore n Is liable 70 variations
Of 100000 roubles per pound in a
few weeks
The second step will be taken
January z. when the government
Will cease Issuing paper money ex-
ccpt notes actually backed by a me-
taiiic reserve. Al the same time the
government budget will be shifted
} 10 the gold basis, all expenditures
and revenues being reckoned on the
gold rouhle AZ It's 1914 quotation.
This arrangement mas already been
7 put into effect in the governments
dealings with foreigners in Russia.
This will be followed by a sweep
3 Ing reduction OF administrative ex.
penses, entailing a so per cent. cut
In personnel
4 ~On January is. ~ per cent. oi
all government employees will b,
: discharged. A clean sweep will bi
81 made In all departments. eliminat
a ing unnecessary branches and arbi
e. trariiy paying on every secon
: clerk. stenographer. etc"
= The present superabundance {
employees in every department wa
= one OF the striking features the cor
81 respondent OF the United States nc
ticed upon arriving in Moscow
Every government once was liter
is ally cluttered with clerks Fac
government Official was surrounds
/, by a small army OF secretaries.
b This projected housccleaning an
nounccd by Kamenef alone wi
\ make a tremendous difference in IN
,- governments budget.
Kamcneff said that the govern
\. ment would begin recalling tn
redeeming them with. gold reserv
y notes 50 soon as the paper roubl
III attained some stability on the stoc
exchange. The treasury will acceI
- as basis for redemption the prevail
M ing market value OF the issues -
r. thirty, forty or a hundred thousan
" 10 the gold rouble. as the case ma
- be.
70 He said that no gold coins wou
NJ actually be put into circulation
iy however. until the currency situi
tion had become more stable.
ITO put gold coins into circul
d; tion at present would be like throv
re ing them into the ocean. 80 far
. any beneficial effect upon business
concerned. They would disappear
jify into the stockings OF n
peasants and small shopkeepers
into the pockets OF foreign trader
In a short while ell would be oi
OF circulation and VIC would be ju
where we started. minus that mud
more gold"
''Kamenef said the governme'
- had considerable supplies OF gold
its vaults largely residue from n
czaristic governments former r
c serve Quantities Of private jewe
. and gold were also confscated
u 1917 and stored in oficial safes u
n a rainy day These treasures. I
r said, will now be utilized as securi
Il. for the government obligations.