Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-15
PLANNING IDEA is APPLIED
TO RUSSIAN ECONOMIC LIFE
Soviet Adopts Plan Used in Private U. S.
lndustry-Change May End Years
of Deprivation for People.

cash or on terms almost as severe as
cash, while they do so without any
guaranty Of protection by the United
States Government, which has not rec
ognized the government OF Soviet
Russia.
AS conditions become more stable in
Russia and as the Soviet regime estab-
American firms may extend easier
terms. The expanding trade Of the
United States with Russia, 1920 zoo, 900
last year, shows that this easing Of
credit is taking place in some degree,
but solely on the initiative and at the
risk of American traders.
Russia freely admits, and the visitor
to Russia plainly sees, that at present
Russian industry is lamentably made
commodities to its 100000, 900 popula-
ton In satisfactory volume. The fve-
year program is expected to remedy this
deficiency in large measure, q condi-
ton the Russians describe as . goods
famine" The outside world Is familiar
with the food famine in Russia. but
not so familiar with the famine or
shortage of common necessities In all
other classifications.
Has Three Exportable Products.
To get outside capital Russia has
three chief exportable products-oil,
lumber and furs. A year or so ago.
when the Soviet government needed
some ready cash, it gathered up all the
furs in Russia to sell abroad, thereby
compelling its own citizens to get along
with their old furs. This was an extra
internal measure, as the sale abroad OF
furs always Is a government monopoly.
However, these self-denying acts havs
the effect of keeping Russia out OF debt
to other nations. To do without until
Russia can produce its own goods Is q
settled policy.
While the fve-year plan provides for
a great increase in production and
lowering of manufacturing costs, 1t is
not the present intention of the Soviet
to cut prices to the consumers to the
lowest possible level. The plan Is TO
give the state-owned industries a good
profit and to turn this profit back into
industry as new capital. That Is one
way in which the government raises
capital, and taxation Is another way.
Confiscation was the principal way In
the first years of the regime.
Soviet leaders say with some pride
that Russia is the only nation in Eu-
rope which has rehabilitated itself since
the World War without the aid Of out.
side capital. The billions of dollars
loaned by United States bond buyers to
European countries. have not been
shared by Russia Now, however, Rus
STA would like, If not loans, at least less
rigorous credit terms, for the machin-
cry, raw materials and some finished
products needed in the five-year plan
and the ordinary life of the nation. It
looks to the United States and Ger
many mainly because these are the two
md al
The fact that the Soviet government
can make and unmake laws at will and
has control over the whole industrial
fabric gives it an advantage in making
quick changes of policies to meet new
conditions. 1t Is argued in Moscow. In
other nations legal obstacles and gov
ernmental limitations stand in the way
of sudden and drastic changes, while
Industrial leaders sometimes are prose-
cuted for business practices introduced
ahead of the legal concept of the re-
spective nations. Every American BUSH
ness man. for instance. must keep an
eye on the antitrust laws in his ma
neuverS. 1t remains to be seen whether
the arbitrary power of Russia will be
as big blessing to the people as It's
leaders believe
How to reconcile the agricultural to
the industrial worker Is one of the great
problems In Russia, and one which is
tackled in the five-year plan. Russia
still Is overwhelmingly an agricultural
country. with about IS per cent of the
population peasants. The aim Is to
make Russia an industrial nation,
though this will not give the city ele.
ment a preponderance in numbers.
Peasants Cooperation Needed.
If the peasants can be induced to fall
in with the five-year plan and produce
enough wheat to make importation I'M
necessary. and if they produce more
cotton, fax, hemp. wool, sugar beets
and other commodities to cut down
such 1mportations. and even to give
Russia an exportable surplus in some
OF the items, the economic outlook viii
De made comparatively rosy; that is,
rosy according to Russian standards.
though far inferior to American stand
ards. Russia now is buying about 40
per cent Of its cotton from the United
States.
More automobiles and trucks mean
more good roads in Russia. Extensiye
new housing and construction mean A
large development of the building in
dustry. In turn both mean increased
demand for American road-makine and
construction machinery. Already much
sucn machinery is in use in Russia.
ALneIlcan engineers are supervising the
power plants.
AS for wages, the Soviet government
expects that the five-year plan will
raise the average from $50 to $43 a
month. It must be kept in mind that
tnlS refers to averages. Many workers
make 500 a month and some get more
IMAM that in specially skilled trades.
In ADDITION to wages, they get dement's
such as vacations with pay, medical
asCtention, recreation and educational
facilities and price concessions in gov
eminent or cooperative stores. theaters
ETC.. which supplement their wages
Inc latest Soviet idea of institutine
q OBSERVATION-DISCLOSURES year-that is, Of
keeping factories going 365 DAYS. using
snl1ts so that while there will be NO
observance of Sunday each worker will
get day and half OF each week-
must be fitted into the five-year plan.
the effect 1t will have If generally In
troduced Will be watched with keen
In all this review it must be rer,.r.
bered that Russian production already
mas passed the pre-war level. But that
was Is years ago. in 1914, and in the
meantime the United States and EI,rone
generally have gone far above pre-wsr
fgures. Russia, after being in the
World War from 1914 to 1917. had sew
eral years of civil war, two years of
famine and a general disoraanizatio,,
Que to the complete destruction of the
OLD political. social and economic order
Hence In reaching the pre-war level It
considers it has made an achievement
IN industry and now is striving to cut
down the gap between it and the mora
advanced nations.
one eject Of the five-year plan IL
sian people. There is q Stimulation fc
them In seeing how they meet the
scheduled rate Of progress and ia s,Irs
passing 1t. They watch the reports me-
riooicaiiy given out and are spurred to