The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-10-08
RETAIL TRADING
REGULATION IS
SOVIET PROBLEM
Half of Russian Business Is
Controlled by
ProfiteerS.
BN United Press

MOSCOW, Oct. San impressive
picture Of the quickened develop
ment Of Russian economic life is
manifested by the figures Of the In
dustrial and trade turnover Of the
Soviet Socialist Republic.
While the general turnover in
1924-25 was 2O,375 million rubles the
first six months of the current year
show a turnover reaching already
three-quarters Of the total of the
previous year. Out Of ABS million
rubles turnover Of the first half Of
the year, the states share is 7,140
millions; the cooperatives, 4,334 mil
lion, leaving only 1893 million rubles
for the private capital trade.
A complicated system of economic
measures permits the state to domi-
nate the wholesale market, where the
role of the private capital is limited
to about 10 per cent. But while the
wholesale market is concentrated al
most entirely in the hands Of some
fifteen state syndicates and is easily
regulated by the government, the re.
tail trade remains one of the thin
the Soviets did not find it so easy
to master.
Prey of "Nephman"
The more flexible and adaptable
private capital, with its vast expert
ence, is more adapted for the man.
euvering on the retail market than
the slow state and cooperative cap.
ital. Therefore the peasant market
is in it's largest part the prey of
the 'nephman" (profiteer or local
dealer), who holds Al per cent of the
retail trade, while the state has in
its hands 20 per cent and the cooper
alton SO per cent. These figures are
undergoing a steady change in favor
of the state and cooperation.
However, the "uehmen" are still
strong. The State gives its adver.
sary financial support in the form
Of credits, opened to them by the
State bank and organizations and by
the cooperation. This dependence of
the private capital on State credits
and on the State industry Is used
as one Of the means TO regulate the
prices on the industrial market.
The private merchant receives his
share of goods from the State syndi-
Gates on conditions of a limited sur.
r1its nrofif savoeedipo bouyavay. from
two to three times the profit per-
mitted to the State and cooperative
trading organizations.
Constant Struggle
The constant struggle led by the
Soviet government for the decrease
of prices is baffied by the goods fam
inc, which became particularly acute
during the current winter en-
spring, threatening the very stabNp
ity Of the Soviet currency.
More energetic measures were ia
ken to run the actual grain purchas
| ing campaign in a more expedient
and rational way this year than that
Of the previous year, when numerous
organizations on the part or the
State and cooperative capital com.
peted with each other, as much as
with the private trader and brought
disorder in prices.
This year the number Of organiza-
tons representing the State have
been limited to the Khleboproduct
GRAIN company and State Bank.
The share of the Soviet Union in
the world trade slipped from 4 per
cent of the prewar days to u per
cent in 1925, the foreign trade is
considered as one Of the principal
tools for the reconstruction of the
industry and revival of the industry
and revival of the economic life of
the country.
The necessity to speed up the de-
velopment Of the foreign trade is
one Of the principal problems which
is now in the limelight Of the gov
eminent of the Soviet republic.