Detroit evening times. (Detroit, Mich) 1921-1958, 1944-01-06
: NEWS
BEHIND
The News

HE NEWS
BY Paul
Mdtlon
WASHINGTON. Jan. 6 No
W one has risen 10 question
my assertion Jan. 3 that Russia
has no war debt such as will
burden tho economies Of Britain
and the United States for gem
CT8tOnS
only one man in the United
States has ever made study
of Soviet finance. a Chicago
university professor. who wrote
a pamphlet three or four years
ago He discovered what few
international bankers know to-
DAY that Russia had a small
debt then estimated a about 40
billion ruhles
My own inquiSitlvencSS on
This officially hidden subject an
understanding OF which Is eS-
Sonual 10 development ~ ami
cable economic an d political
relations with Russia after the
war has adduCed private eStl-
mates from government auth0rl-
ties that the debt Is probably
10000 100000 rublcS today.
peal worth Of The ruhle
Ia against the dollar is prob
Ably best estimated by The value
IN the free black market the
one almost officially conducted
on the side for the benefit Of
visiting diplomats and news
papermen.
There The ruhle has run 80 10
! against the dollar making il
worth approximately 2 cents,
although the seldom used bank
ing rate IS 5to and the official
diplomatic rate II 10 !.
If YOU take the black market
rate. the Russian debt is 81 900.
0O0O 900. banking rate $4,000
600. 900 while ours is l35 times
as much underline first calculaz-
tlon and Ia times AS much under
the second tLend-leaSe is mol
a financial debt as IT Will be
repaid IN goods
THIS debt represents two
L kinds Of bonds sold 10 her
people. one being a lottery prize
bond
Orthodox American liberals
may Shudder-to hear that u1uCh-
government funds are raised by
a terrific sales tax or turnover
tax sometimes amounting 10 200
per cent Of the price, and an
income tax
Seventy per cent Of the nor
NAL budget has been contributed
in taxes by tho workers. the
other 30'per cent by the peasant
farmers.
Since German invasion unified
Russia, the peasants have con-
trlhuted- more turning any left
over money in 10 Moscow. One
Collectivist farm turned in
100000 rubleS
But debt or taxes do not mat
ter much. because the govern
ment merely prints more rubles
when IL needs more money
There is no backing for the
currency. only a centra il govern
ment bank
Stalngrad and the great re-
building Jobs were done largely
by the local communities with
out much Moscow assistance
Only the local people knew
whore they had hidden supplies
from the invaders
I'VE whole Setup, while occa-
L Slonally outWardly similar
10 ours. is precisely opposite be-
cause II Is based SoTCIy on The
directive authority Of a fedora
force. with nothing else behind
G.Qld.--L!eSerl-eS---S.nGk-dGAtS--
promises 10 pay, banking sys-
tenn, mortgages, etcD.
Some authorities here say II
required 20 years Of successive
; and l0-year plans 10 build the
productive system destroyed by
the Germans, and il will take AT
least five years 10 rebuild.
Harry Hopkins says they will
require S750.000 900 of machines
annually from us for this pur-
pose But when I measure tho
numbers Of guns, tanks and
planes they are now using
against the Germans, | think II
is reasonable TO stick 10 the
conclusion that Russian produc-
TIVE capacity now Is larger than
when the war started.
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