THE REVOLUTIONARY AGE Saturday, March 29, 1919 Financial Problems of Soviet Russia THEcoples acontni sale of resinances, Comrade חון the provinces there of January fo there be as So well as state tendency the treasury the apparatus.
ists whatever extent thisi mexransferred all of this to these local various organs.
SO are conimerce.
the banking measures HE first report to the Congress was read by the Report of Peoples Commissaire of Finances its charge, namely. 1) section for state exchequer, Krestinskyi, at the First, Congress taking care of all state revenues and all disbursements Krestinskyi, in which he summarized his four of the Northern District of Russia on the basis of the budgets of particular institutions. months activity in the People Cominissariat for Fin(2) section for nationalized industries, taking care of financing industry, ances, and outlined the plans of the Soviet Governwhich must the bank for possess in ment in the field of finance. The speaker indicated work of uniting the exchequer courts and the treasury its apparatus supplying it with funds and for the old financial institutions were branches in the Northern district lias just started, acthe morrey derived from the sale of the Drocceiving still maintained in existed branches of these insti ments of this Congress will surely impart a strong from other institutions, looking after the expenses of tutions, whose personnel were in strained relations stimulus to the successful termination of this work.
with the local Soviet departments. Sovdiepy. and If it should prove y accomplish this work corresponding things from the population. section at local government and terminated by the middle hope that it will be affairs. taking financial part the maintenance of bureaucratic centralization. At of the Considerable organization work féli to the Commis operatives, taking care of the affairs of cooperative which were striving to become the financial organs of sariat for Finance in another field that of banks. The organizations along the lines of consumption, producState Bank was annexed by the Soviet Powers as early tion, agriculture, and credit. 6) section for personal frustrated in this ambition and had to continue as the as 1917; On December 14, of that year the All Russian accounts; the guiding consideration whch caused the Central Executive Committee issued a decree concern creation of this section was the expectation that after cover the local needs, each on its owenloresponsibility, out of which there resulted nationalization of private banks. This decree deprived majority of the current bourgeois accounts in the bank tion of the local financial organs and in the local finan the banking field is not brought to a conclusion. We there would remain small accounts. representing the ces. The central administration strained every effort had no clear idea, at the beginning, as to the structure tiny savings of working people; and these are just the to put an end to the existence of this dualism and to of the Soviet People liank, alongside of whic accounts which will receive the name of personal the lack of contact between the local organs and the SCO capitals, Socialist unit. In certain cases, the Ban Ple Bank, Mutual Credit Associations, City this section. When the payment of salaries is made in the time had come to consolidate the country into one insticentralization may have given rise to evi tutions and the as the intente Durina first will be kept also by this section. 7) foreign section: commodities, the record of the commodities given out to evi month, when the economic dence of bureaucratic centralization. In this respect life of the country had which is probably of a temporary character, and will cree on local financial organs, which met the desires er, our bank continued as an institution very much akin the capitalists of foreign countries over whatever and aims of the organs and workers concerned. But xtent this may prevail. 8)
this decree which did not provide of provincial executive committees. gubististence Hudertakings were for the functions of were slows in respect to nationalized section for insurance, to getting a start. In the cance operations in mass, while the technical side work to of nationalization the of the the insurance business will of course be left with the had to be amended when responsibilty devolved upon circunstance that there was a hitch due eu.
This was necessary because the remains of to historic owing commissariats were not bound by this decree en private the immediate organization problems of The breathing to carry out all their financial operations through the as there was still privatal had to be ret. cessity, some respective administrative institutions.
business.
provincial executive committees. In the last days cute spell al reaction inet and lane after the Brest Litovsk Peace coincided withi of the respective of November, decree on local financial departments was field. This was because we felt that the noose thrown planned, so that on the anniversary of the naperiod of feverish constructive work in economicing the stage of realization of designs as originally approved and in pursuance to this decree a number of old local financial organs were luc around our neck by the Brest treaty could be thrown tionalization of banks, it will be possible, in all proed into the financial departments.
By the decree on loc off only by way of economic construction: we there bability, to issue a decree liquidating all former bankal financial departments the hierarchial structure of the the conomice peetech up the work of reconstructing the ing institutions and creating a uniform Central People Soviet financial organs was definitely established. The crea Bank whosc statute will be published simultaneously.
liquidation of the old financial organs, which is now this road, liquidating unnecessary credit institutions will be built the economic structure of Soviet Socialcreate a miform banking machinery: we advanced on taking place in various localities, is carried out pain; and uniting with the People Bank Dank such istit ist Russia.
the financial authorities, but use their staff of special cash accouting machinery of the Republic. decree that has been done, and that remains to be done in the We have stated here everything that was to be done, ists, removing from these bodies only the counter was issued regarding the liquidation of mutual credit capitals. As regards the provinces we expect now the old cutionary elements. The reorganization of the associations, which were eginning was not working the in number because taking up of that harmonious labor which will be carinstitutions has also reached the excise Bank ried on with the least loss of which of production and was performing some selling func the economic life of the om of greatest results.
principle therefore, country is tions. These functions at present must be transferred division between two entirely to the Commissariat for National Supplies, Sary. decree was issued regarding the liquidation sections of finde adopted a sharp The budget tax matfinancial activity. 1)
as provided by the decree on the organization of supplies. It already is possible to state to what extent the peor This apparatus was extending credit to coopera.
departments, the savings institutions, and the measury ters in the broad sense of the word. Problemas con are not yet fully solved on an allBank. The latter commands our our speciala Russian The tax will be liquidation of these institutions is proceeding in varnew taxes are finally drafted. The ten ious places. To the Commissariat for National SupSupitive organizations, which worked along the lines of billion constitutes a boundary line, as it plies are transferred all the aims of the Soviet power and was Âling the gaps all government wine stores and han the old and the new of excise will be the new systems trol over the natic Pervision which concerns the conto offer trade, also a part of the possibilbookkeeping. The remaining part of the bookkeeping after the People Bank upon itself, however, of a new tax inspection. great field is here opened be assigned to the Commissariat of Finances, which nationalization of private banks. an unsuit for local initiative and activity, which will afford the will fix the increases to the selling prices which are to difficulty in getting money from the People Bank. In means for accumulating information in the capitals form a state revenue. The excise taxes must, of course, started to grow on bourgeois accounts and became a for the adoption of the respective measures. 2) The with the introduction of this order. be abolished, but ally supplying with money the bourgeoisie, which had character. In the banking business strong central.
speculative bank; hoarding paper currency and liber. People Bank, on the contrary, is to retain its general a certain surplus the sale should go to prices and conxing of the amount by which the difficulty in getting money from the People Bank. Inization must necessarily be the rule, which must be treasury.
and cost prices differ, as well as the sering this way it has assumed a liostile position to the Soviet carried out in order to lend full uniformity to the It must be noted also that the Soviet instibe entrusted to putions, as well as the nationalized enterprises, transreceipt state financial system. The local financial organs may the Commissariat for Finances. An analogous cisferrel their means to this bank, whence it was an branches of the People Bank. but any measures contribution of functions is carried out also in Petrograd casier simpler and Moscow with the difference that the local wine the financial system as such and, still more, of this them. In consequence cererinciples underlying it, may be carried out in the shops, which during the war had charge of the chem similar all Russian Bank, which centralized the funds alongside the the eople Bank a ical products industry, are transferred to tlic Supreme of the bourgeoisie, as well as of the cooperatives, and approval of the central power. The plans of work in Council of National Economy.
of the nationaliza this direction may be drafter, but their execution is The speaker referred furthermore to the problem tion became a necessity. Anumber of measures were admissible only after they receive the sanction of the of the attitude of the Soviet of People Conumissaires carried out in tlris direction. The free toward the division into districts and indicated the branches was stopped; a decree contradiction which arose at the time when the decree garding the obligatory deposition of gooniated central power.
was As regards the situation in the matter of taxation, it funds has has radically changed, as compared with the past. The of organs of financ of financial administra in People on the organizationsidererd. This was a contradiction cxecute the demand regarding the return of all cleThe Moscow Bank could not tion was being former system can find no justification at present. The indirect taxation, remaining after the cessation of the between the People Commissaire for Finances, who posits coming from government institutions and in former direct taxes, is now also changing its character: was of the opinion that it was impossible to arrange of its own accord negotiations in nationaliza insofar as the product becomes the possession of the matters from the capitals, and the majority of the tion. At the same time for the Petrograd district and in state, its taxation for the benefit of the Supreme Council of National the Northern district we started a method of organ se tietitious. Instead of taxing the product it would moved from the draft of the decree ony, which reany mention of district financial organs. The speaker ized counter activity to the Moscow People Bank, be easier to sell it and to turn over the proceeds to the pointed out that section for financing the cooperatives was created The state should exist on the proceeds of the the problem had been settled in a way favorable to the and attached to the People Bank. It gained the com product which is produced by the state. At the present districts. As a result of a prolonged work, a special fidence of commission had come to the conclusion that the fol time the Moscope organizations. At the present moment we must take into account that not all inPeople Bank is already nationalized. dustry belongs completely to the state. In the future, lowing existing districts: the Urals, the Northern, and Me think that our banking machinery will take the the whole system of state economy will be built with the Western, shall retain their independence and their following shape. financial branches shall be retained as organs subject out money circulation, especially if the revolution uniform Central Peoples Bank is created with should spread to other countries. But this is in the directly to the People Commissariat for Finances. It a net of branches in the provinces. In the capitals future. Just now we meet our budget with a conwill be possible in all probability to issue in the near the bank is divided into sections corresponding with siderable cleficit. Many viewed the deficit feature of future a special decree concerning this inatter. The those branches of the national economy, which are in (Continued on Page 8)
People at the try is absolutely unneAs a leadinergy and will yield the nu atten machinery completed tion.
only when tax, which that part took out of The over the of the revenue is and there matter to appeared itlo of re rein the Bank The all state.