The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-17


arose the phenomena Of the present
crisis. This crisis is characterized by
the disparity between the extraord.-
narily high prices for industrial prod
ucts and the low prices for agricul-
tural products. The industry, which
had grown upon the basis of the town
market, which is able to pay higher
prices, could not at the moment Of
the realization Of the harvest sell its
goods to the mass consumer having a
lower purchasing power-the peas
antry. On the other hand the peas
antry did not find a sufficiently wide
home and foreign market for profit
able sale of its grain, as result Of
which there followed the low prices
Of the latter
Reason for Crisis.
To the sharpening of the market
crisis there contributed; the INSULT
cient development of the commercial
relations, the policy of high prices
adopted by the synoicates, the weak
development of money economy, the
existence Of two kinds Of va1uta, from
which the peasantry suffered most
owing to the depreciation of the Sow
let paper roubles.
AS a result of the steady work, the
last year has yielded undoubted sue
cesses in the sphere Of the recon
struction of industry and transport,
and shows greater quantity of goods
manufactured by the state industry
than ever before during tie Soviet
rule On the other hand. the peas
antry undoubtedly has enlarged its
area of land under cultivation. has to
certain extent raised the level Of
its economy, has increased the pro-
duction of special cultures, and,
thanks to the substitution Of the
gref.ter part OF tax in kind by money
taxef. 1t had at it's disposal a greater
surplus of grain, altho the harvest
was poorer than that of the last year.
The present crisis, therefore, can
by no means be compared with those
crises resulting from lack of goods
and from lack of grain, which con-
fronted the country in the years 1919,
1920 and 1921. The fundamental ele-
ments OF The national economy as a
whole (the quantity of coal, naphtha,
metals, cotton produced and of the
grain remaining in the hands of the
peasantry, etc., have undoubtedly in
creased. The crisis arose as a result
of the disparity between these par
ticular branches of the national econ
omy, and in the first place, as result
of our state industry ard -rade being
incapable Of finding their way to the
peasant mass market.
!. Agriculture.
The smallness of the rural market
and the small purchasing power pos.
sessed by the peasantry, as well as
the high cost of production of urban
industry, are the result of the long
period of the imperialist and civil
wars. The sinking of the prices for
agricultural products, is a world phe-
nomenon which, in the capitalist
countries, as for instance in America,
has led to the sheer destruction
(burning) of huge quantities of grain
in order to bring about an artificial
increase of prices.
The urban and industrial population
Of the Soviet Union does not consti-
tute sufficient market for the peas
ant economy. There can be an in
crease in the prices of the grain pro-
duced by the peasants, in the first
place by capturing the foreign mar
kets. Already in the year 1922, this
circumstance was taken into account
by the Party, which laid down the
necessity Of developing by every
means the export of agricultural
products. In that year there was ex-
ported 40 million pools of grain,
while in 1923 it was decided, as the
most important task of the economic
policy, to increase the export Of grain
to $50 million pood.
Party Acton.
In order to ensure the success of
the peasant grain producers in their
struggle for the foreign markets, it is
necessary to adapt agriculture to the
conditions of these markets. The
Party has called attention to the ne
cessity OF helping the peasantry to
raise the technical level Of their
economy, to introduce more intensive
cultivation, to increase the amount Of
their floating capital, and to renew
their live stock, implements, etc.
In the first place there must be an
Improvement in the organization Of
the state purchases and export Of
grain, reduction of the expenses
connected Herewith, and the greatest
possible reduction Of the role and of
the income of any kind OF middlemen
or dealers in the grain trade.
The Soviet power must and can
also aid the peasantry by increasing
their floating capital by means Of:
(a) organization OF cheap agricul-
tural credits Organization OF an agri-
cultural hankl (hl fha nfacfnO ~