Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-12-16
DevaIuafion Of RubIe
Reveals Weakness Of
Russia 10 World
Soviet Economic Crisis
Sure to Alarm Nations
Behind Iron Curtuin'
By David Laurence

Tho most important news In the
world today is not the failure OF the
London Conference or the maneu-
vers In the House Of Representatives
on the anti-inflation bill or even the
passage Of the stop-gap aid bill, but
the news that has come out Of
Russia on the devaluation Of the
rdb1e.
Until this information was OH
cially confirmed at Moscow, the
whole world has been in the dark
about Russia's internal economic
troubles. Until now many people
have guessed that the intransigeant
attitude Of Molotov was due to q
feeling Of power and a belief that
America would not be able to efec-
tuate the Marshall plan.
There have even been rumors that
out Of the cold war" might come
some episode to bring real war.
Today Soviet Russia is revealed
as in the midst Of an economic
crisis. The measures taken are such
as to alarm the people in the
Balkans who are faced with similar
problems behind the iron curtain"
The simple device Of robbing the
people Of Russia by giving them one
new ruble for ten old ones will not
fail to impress peoples in all coun-
tries, especially those where Com
munists have been issuing propa-
ganda to the effect that Russia has
q sound economic situation, while
the democracies are represented as
weak.
Russia Not So Strong.
The fear of war has colored many
a debate here and the advocacy Of
many a suggestion for European aid.
1t has colored, too, the discussions
about military preparations. It
seems now that Russia is not as
strong as she has wished to appear.
It seems, also, that MoloJov has
been in dire need Of that $10,000,-
100000 Of reparation money and
that he was willing to bluff his way
through the whole London Con-
ference.
The key to the Russian problem
still Is economic. The Soviet spokes.
men may be expected to renew
efforts to negotiate reparations pay
ments, and 1t would not be surpris-
ing If they eventually showed a
desire to compromise on the issue
The United States and British
governments, apparently aware of
what is going on inside Russia,
stood their ground. Molotov doubt
less had instructions to reach no
agreements at London. But 1t would
seem now that Russia cannot long
conceal other aspects Of her internal
weakness. AS the Marshall plan be-
gins to strengthen Western Europe,
the Russians will feel the pinch of
economic isolation even more.
The climax over the Russian prob
lem has really been postponed. The
conferences such as have been held
at London and Paris are merely
steps in long -drawn-out process.
There will be less fear now of the
consequences of a break in these
conferences. There will be a tend
ency to let the situation develop
slowly as the Marshall plan comes
into effect. Time Is working for the
democracies now.
Little Rehabilitation Work.
Accurate information concerning
the situation inside Russia is avail
able to the democracies. There has
been little done to rehabilitate Rus
STA. Her railroad systems need vast
sums to get them into working
order. Adequate electric power is
lacking. Russia cannot restore her
devastated areas and begin to func-
ton In small part as an industrial
country without considerable equip
ment from America. While Russia
can dig up gold to pay for her needs,
she cannot expect American pro-
ducers to give attention to her Or
ders when they are swamped with
contracts from buyers in the home
market and other parts of the for
eign market.
A certain amount of trade will
continue to be carried onwith Russia,
as there are certain materials needed
in the United States which are
available in Russia. But here, too,
the trend will be downward. The
slowing up of Russian American
trade will happen naturally-and in
the end, when the economic war has
produced state Of Illustration in
side Russia, conciliatory spirit
may arise again.
There is always the chance, too.
that . revolution may emerge out of
the economic difficulties. Devalua
ton OF the ruble can hardly have
been received with enthusiasm by
the persons who had saved their
money in Soviet Russia.
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