Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-08
SOVIET STAB|LIzES
RUBLE VIA PRICES:
Food Cost Hike Follows Halt
on Issuance of Currency
and Internal Loan-

(Copyrsht. 1884, by the Associated Presso
MOSCOW. July 8.-Soviet RusSia's
ruble. bad boy of world currency. Is UNI
dergoing a face cleaning.
Once so plentiful in a nation where
there was little to spend it for. the ruble
Is becoming scarce as result OF the
governments efforts to stabilize 1t.
Now there is more to buy, and there
are comparatively few lub!eS with which
to pay. as direct outcome of the gov
ernment'S new financial policy exempll-
fed in the recen so per cent average
increase in the prices Of food and basic
commodities.
Sterilization Begun.
Notwithstanding that the ruble has
no standing in international exchange,
the governments de, elimination to sta
bili2e 1t at home was manifest some time
ago in the announcement by Commissar
of Finance c. T. Grinko that the lsSu-
ance Of currency, which was stopped in
the latter part of 1880, would not be
resumed this year.
Heretofore government printing presses
had been kept running at top speed to
pay salaries and other internal obliga<
tons ur5cr the five-year plan. This
produced a wide distribution of rubles
among the populace. which. due to the
,
Of life. accumulated large quantities Of
the currency because there was relative
~ little to purchase with 1t.
Price Hike Uses Up Currency.
Aided by the increasing output Of
light industry, which produces such
things. the government in recent
more open" or "higher-priced," stores
in Moscow. where any enc is permitted
to buy Then came the heavy price
increase just as the populace was in
dulging in buying orgy induced by
well stocked shelves on one side and
plenty of rubleS on the part of workers
and peasants.
If appearances in Moscow can be
taken as a criterion, this gradually de-
pleted the buying capacity of a large
portion Of the population in urban
centers. At the same time it has
brought an increase in both the
quantity and quality Of stocks Of goods
on hand in the stores.
Non workers Hardest Hit.
Actually, the worker portion Of the
population is little affected by the price
increase, because they are rationed
patrons Of government higher-priced
stores, such as non-workerS, "intelli-
gentsia," technicians and foreigners
who suffer from the higher living cost.
Since the worker Is considered the
first citizen of the state, he receives
larger allotments of food and other COM
modities than any other class and is
permitted to buy at special stores at
reasonable prices. Those in other cate
gories receive smaller ration allowances,
and many are forced to supplement
them by purchasing from the higher
priced stores.
The workers themselves patronized
such stores extensively also before the
recent price increase. but they were
among the first missing when prices
rose.
/; Butter Costs S. Per Pound.
The result has been that worker re-
ceiving $50 month can live on approx
mately the same standard to which he
has been accustomed, while others must
devote more of their income TO pur-
chases at higher priced stores. Butter
in these stores now sells for 10 rubles,
or approximately SIS a pound.
Another element in the sharp de-
crease in the number of rubleS in cir
culation is the governments latest in
ternal loan of 1000 100000 rubleS,
subscriptions for which now are being
received from workers and others at
the rate of one months salary per
person.