The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-10-20

plating new issue Of stock amount
ing to 2O,OO0,0OO rubles, bringing ur
the paid capital to 4O,0OO,OOO rubles
or upward Of s2O,OO0.OOO.
On September Is, the working cap.
ital Of the bank amounted to 1880.
900 rubles. The bank centered 1t at.
tention on the financing of the foreign
trade to such an extent that during
the three months, June-August, the
credits for foreign trade amounted to
IS per cent Of all it's credit transac.
tons. The bank is extending its op.
erations thru the organization of new
branches in cities in the Soviet Union
which are strategically situated in re,
lation to foreign trade, as Odessa
Kharkov, Batoum, etc. In the east
the bank is working thru the Russo.
Persian Bank and Far Eastern Bank
of which it holds considerable stock.
Help in Russia's Recovery.
Mr. Koroboff also pointed out that
the banks in Russia have already con,
tributed considerably to the process
of agricultural and industrial recov.
cry which is witnessed in the Soviet
Union, and they are destined to play
still greater part in this process
The sound basis upon which the banks
are established and the healthy devel
opment which they have shown give
assurance of their strength and vital
ity. The financial soundness Of So,
Wet Russia has been best demonstrat
ed in the accomplishment of the none.
tary reform and the sterilization OF
the currency which will, no doubt, &c
down as the greatest economic
achievement of the Soviet Union dur.
ing this year.
1t is true that the currency circu
lation is still far behind what il
was before the war. The monetary
reform was accomplished without
causing any marked disturbances in
the general development of business
such as were witnessed in Germany
and Poland and the growth of stable
currency has been steady. The cur
rency in circulation has increased
from 3O3, 100000 rubles in December,
1928, to $50, 100000 in July, 1924.
By September Is, the mass of
money was increased to about $50, OOO,-
900 rubles. The State Bank has all
thru been exceedingly careful in the
exercise of it's power of issue. Cher
vonetz notes which were made the
basis of the new currency have been
issued only against strong security.
Another feature was that not the
whole mass of chervontzi issued had
been brought into circulation, so that
the surplus always served as security
for the smaller treasury, notes which
have been issued simultaneously.
OF 417,50O,0O0 rubles worth of
chervontzi issued up to July, only
3O6 100000 rubles were in circulation
while the rest remained in the treas
uries of the State Bank and the Com.
missariat Of Finances for the redeem.
ing OF treasury notes the total of
which in circulation in July amounted
to 1G2, 100000 rubles.
Trade Balance is Favorable.
The monetary reform was made pos.
sible to a great extent by the favor.
ablo trade balance of Soviet Russia in
1929. During the first six months of
the year exports from Soviet Russia
amounted to $50. 5O0,OOO rubles and
the imports to $4,000, 600 rubles, thus
ending with a favorable balance of
66,600,OOO rubles.
Owing to the growing financial
stability of the Soviet Republics the
preliminary plans for the budget of
1924-l925 amounting to 100000, 900
rubles show that IL will be balanced
with a probable deficit OF only S0,000,-
900 rubles. This deficit will be GOV.
cred by the issue OF small coin for
which there il great demand in the
country.
In view OF the stabilizing economic
conditions in Soviet Russia, Mr.. Ko
robkoff is confident that the interest
in the possibilities of trade with So
Wet Russia shown by business and
banking interests in the United States
will eventually lead toward satisfac-
tory arrangements for the accelera-
ton of the trade relations between the
two countries for their mutual benefit.
To Combat Openshop Contract