The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-27
RUSSIA YIELDING
RED SOCIALISTIC
HUE, SAY PAPERS
Changes in Government
Of Soviet Show Gains
By Capitalism.

Decided changes in the economic
policy of the government Of Russia,
predicting abandonment Of social
ism. have taken place recently. ac-
cording to a review Of statements
appearing in the Soviet-controlled
press of that country as compiled
by the Bureau of Foreign and Do
mestic Commerce Of the Department
of Commerce.
The present situation is summed
up as follows:
The most useful sources Of spe-
cific statements concerning condi-
tions in Russia are the Russian
newspapers These papers are all
controlled by the Soviet authorities
and represent at least the policies OF
the Soviet government
The previous communist man
agement Of industry had resulted
in a great decline of production and
a general Differentiation of eco
nomic life. This decline is con-
clusively shown by statistics in
Soviet newspapers, and is frequent
ly admitted by bolshevist Leaders.
A whole series OF published reports
Of different commissa riats covering
the first half of 1921 shows ex-
tremely small output Of goods and
services on the part of all the more
important manufacturing. mining
and transportation industries. as
compared both with pre-war periods
and with the year 1920: and the re-
ports themselves comment empha-
tically on this decline and give
causes for IL.
Lenen Admits Retreat
For example. in the most impor-
tant coal basin. Donetz. the gross
output had fallen by July. 1921. to
only about 10000 tons, the net out
put after supplying the require
ments Of the mines themselves was
only about 5000 tons. Bolshevist
newspapers stated at that time that
the railroads and industries of the
country would thereafter be depend
ent absolutely on imported coal.
The decline OF area planted and Of
production in agriculture. while less
marked than that in manufacturing
and mining industries was enor-
nous, quite apart from the dis
astrous effect OF the drought in the
Volga Basin.
''Lenin. in a speech Of October 10,
said: The substance Of our new
economic pOllCN Is dictated nN tNH
recognition of the fact that we have
suffered a powerful defeat and COM
menced a systematic strategic retreat.
There can be no doubt in the minds Of
CommL ~ists that we have suffered de
feat on the economic front, and
mighty crushing defeat. and thus we
are facing consciously and deliberately
the new economic policy
Restore Trade Freedom.
The main feature of this new
economic policy. according to va
rious DEGREES issued by the Soviet
authorities. are:
Partial restoration of freedom
of trade in agricultural products:
Instead of requisitioning from the
peasants their entire surplus above
their own requirements for food
and seed. there has been imposed.
beginning with the crop Of 1921, a
natural tax" of fixed amount of
grain from each peasant; the re-
mainder of his crop he is at liberty
to sell.
Abandonment of the practice Of
unrestricted mobilization" or re-
quisition of labor. and the substi-
tuition of a fixed labor tax; that is.
the cSizen may be forced to labor
not more than a specified number
of days on public works or special
public tasks.
Abandonment in enterprises op-
Grated by the State Of uniform
wages for employees OF the same
general grade, ard the substitution
of compensation according to serv-
ice rendered. In most cases this
takes the form of piece or quantity
payment. Overtime is to be not
only permitted but encouraged by
high rates of pay (2iz to 3 times
the regular rates).
VIII Grant Cescessidhs.
Leasing to private individuals
or concerns of certain Industrial
establishments hitherto operated
by the State. 1t is officially an
nounced that the State will retain
operation OF establishments pro-
ducing the most necessary COM
modities or services. and especially
of the best equipped establish
ments in those branches. but will
lease others. The terms of the
leases are not uniform. but in' gen