Evening star., 1931-06-07
RUBLE DISCOUNTED
BY SOVIET STORES
State Establishments Refuse
to Accept National Cur
rency at Face Value.
BY JUNIUs B. WOOD.
Special Gable Dispatch to The Star.

BY JUNIUS b. WOOD.
Special Gable Dispatch to The Star.
MOSCOW, U. S. S. r., June g.
Though the Gosbank Estate bank OF
the u. S. S. r. continues to issue
monthly statements showing that the
chervonitZ is quoted at par in the
worlds capitals abroad. various state
establishments here in the capital Of
the Soviet Union refuse to accept their
own currency except at a greatly de-
preciated rate of exchange. Some go
to the length of refusing to accept
rubles in payment for purchases, which
virtually amounts to reputation OF the
Soviet currency.
This anomalous situation. in which q
national currency is less in purchasing
power than the currencies of foreign
countries in even State-oWned stores, Is
painfully obvious to foreigners, who con-
vert the currency of their own countries
at the banks legal rates of exchange
here for chervonitz rubles to use in
their purchases. However, it also af-
fects all others using rubles through
increased ruble prices for commodities.
Trade Figures Unreliable.
The ruble's lack of any fixed value
makes any Soviet figures where rubles
are involyed-trade national budget,
industry, agriculture, the five-year plan,
the cost of living-impoSsible of COM
parison with the figures of other coun-
tries having stable currencies or even
with those of different years within the
Soviet Union.
The only ones not pinched by the
squeeze between nominal and actual
rlble values are those foreigners whose
good will is so desirable that they are
not hampered in smuggling rubles from
abroad, where they are purchased ri
diculously cheap. Such persons are
only slightly affected by soaring ruble
prices.
bank for foreign trade for an assort-
ment of chervonitz rubles stopped at
the Savoy Hotel, which is like all
others owned and operated by the state,
for luncheon A modest meal with
plate of quail brought the check to
81. At the par which the state bank
declares exists in other countries and
the legal rate which is rigidly enforced
by law here when it Is to the states
advantage, this amounted to l ruble
and SO kopeckS. l presented 3-ruble
note.
These prices are in American money
and you must pay in American money"
the waiter protested,
But I've Just bought these rubleS
at the state bank for American money"
I explained. producing the receipt.
whAch showed the amount and the legal
rate Of exchange.
That was too complicated for the
walters knowledge of financing and
brought the manager Of the restaurant,
whose decision was final. He scruti-
nized the receipt and smiled broadly.
IF you pay rubles, the price is 3
rubles and so kopecks," he said, pro-
ducing another menu on which the
prices for the same dishes were quoted
In rubleS.
THE next time you eat here, ask for
your bill in rubles," he added, some
what contemptuous of foreigner
spending local currency instead of for
eign money.
I paid 3 rubles and 30 kopecks My
rubles had deprecated As per cent in
value as soon as I tried to spend them
That Is what Is lost by observing the
law and exchanging money at the
State Bank instead Of spending 1t in
other state establishments.
Refuses Rubles.
Again, I stopped at the cigarette and
novelty stand Of the Grand Hotel to
purchase Q package Of cigarettes. The
stands prices were quoted In rubles
I presented the required amount.
"Oh, We don't accept rubles here"
{ the woman in charge declared. went
fthrough the same business Of producing
sthe receipt showing that rubles had
Sheen obtained in the legal manner
through the State Bank, and with the
same vain result.
1T makes no difference; you must
pay foreign money. Go to your room
and get some" she suggested.
In addition to such state establish
ments where the national currency is
fatty refused, the state has opened
large stores where the difference be-
tween the actual and nominal value of
rubles is taken into consideration in
fixing the prices.
Though the prices are fixed in rubles,
the purchaser must use foreign money.
He can either tender foreign currency,
which Is computed in rubles at the
legal rate of exchange, or present re-
ceipt from bank showing that the
rubles which he is spending were Sc
cured there at the same rate. The re-
ceipt is then indorsed for the amount
spent. Also 10 rubles a day for livi-@
expenses are deducted, to prevent the
holder from spending more rubles than
he gets legltlmately through the bank.
Prices in these stores clearly show
the difference between the nominal and
actual value of the ruble when based on
foreign exchange Prices in those stores
which take rubles secured for foreign
money are one-half to one-fifth the
prices in stores where workers are per-
1I1CCeQ 10 Guy raLlOned amounts but pay
in rubles earned within the country,
and in some cases one-tenth the prices
in other state stores where anybody
having rubles Is permitted to purchase.
The latest bulletin of the Gosbank,
quoting exchange rates of Soviet cur
rency IN foreign capitals, says that the
ruble in Berlin is worth reichsmarks,
is pfennigs. While this is the nominal,
legal rate, one reichsmark GA cents)
f-yFn !.
changers
In Constantinople the f1uctuation is
even wider, while in Toxic, where the
Soviet Bank quotes the rubIes as equal
TO yen sen, the same bank actually
accepts one yen for three rubles.
All OF which is of great Importance
to foreign tourists, experts and Others
coming here under contract and sud-
denly finding themselves afloat on a sea
of ebbinp rIlbles