The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1925-07-28

Congress
right free internal trade and the reconstruction of
enterprise both public and private business basis brought
BACK general system OF money decree Of August
services by State enterprises Herewith went naturally the
restoration of taxation which took the form of income tax
and excuses wne tobacco Coffee such usual
revenue.
Restoration Of Budget
The first attempt normal financial system
the experimental budget for nine months of 1922 which had
however be three times revised The budget 1929
scarcely less hypothetical the budget figures
had real relation facts that of 92S24 Financial
The task Of bringing order of Formidable
for the whole financial and fiscal system rebuilt
fresh foundations In 1922 the budget still being based
up to on commodity exchanges not
mens On the other hand useless try to revive the
prewar financial and hsca system which had in the first place
entirely disappeared and the second place adapted
the new conditions Consequently not only principle but
every practical detail had to be worked out aesh as compro
mise between Communist theory and the force of circumstances
and the authority of the leaders of the Revolution than had
been their preceding ambitious attempts qudate the
legacy of debt and depreciation left by the war.
The restoration of the budget business basis
Their complicated by the continued depreciation currency
which necessated monthly revauaton of the roube with
10 m buying Vaiue IN 1918 rms was accompanied
by periodic revauaons OF the various emissions Of
of which entirely devalued-such
issued by reaconary regmeswhe others became devaued
gradually.
Collapse of Currency 3}ea
Meantime printing press had again to pay the budgeary
deficit and tide this
In circulation January 1929 before
under two thousand million millions If the nominal value of
this amount be converted into value find that the
eminent succeeded obtaining this
sufficient to What the money probably
These amounted in 1920 Million in 1921 to
million and in 1922 after the money to about
300 million The smallest were in April
May and June 1922 which the crisis transition
to normal conditions fortunate that this time
State was favored by factor namely that during 1921
when circulation increased 1856 times prices about
half that proportion namely times As was question of
months whether the currency would retain long
enough for the State reach currency
this success keeping prices down probably
After midsummer 1922, there definite the
better is true that the totals currency became
astronomical and the technical limitations printing press
were already sight though the paper chase
never Lecame quite such wild goose chase
But what maercd that the proceeds
began nevertheless to increase and the proportional prices
to decrease ENI
Currency Reform .-r8
From This point tie road currency followed by the
RUSSIANS was much 1e thar by which the Germans
extrcated 4mse from their catastrophe In fact the Rus
sian precedent becomes very instructive What
dcnc b! strong Government wit, out outside help saving
despI ate financial situation &ffa
The first effort to stabse the currency Introduction
by decree June 9TH 1921 the pre-war rone unit in
Wch all payments and accounts public and privae should be
reckoned This had, however, be abandoned of
less drastic method that of fixing official exchange
on foreign exchange The difficulty of fixing paying wages
under this method caused the goods roubes
unit calculated from the index of prices and consequently
caed an index rouble This practically return the
prewar roube Moreover prices gold prices
the step from the goods roube the gold roube prn
cpe small though the practical Introducing return
to gold was great And there strong sentimental
objection to the restoration of gold standard
it feared that the door TO speculative
ons between parsans of the those of the
gold became as nterminabe s intricate and
in favor of the goods roubs had the
But long before the rvor controversy was exhausted the
force of circumstances had decided gold roubes The
whoe principle OF N was the restoration of enterprises
and exchanges to business basis basis in ths
sense implied foundation gold the State had
not itself restored such standard in business would
have worked out for itself Germany either by using
foreign standard such as the dollar by restoring the pre-
war roube
(contnued