1937-04-09 — Page 11

THE CHINA MAIL, APRIL 9, 1937.

What The Soviets Use

that would buy.

Fac-

For Money

THEN I reached Moscow, on my beginning of the upbuilding of So- enough goods to let anybody buy all must pay in advance ten per cent. W

first of two visits to the Soviet industries, it was necessary for he desires at a uniform price, of the cost of whatever they are viet Union, I ingenuously expected the government to pay out a vast It is inaccurate to say--and one to build and must pay seven per to follow common practice in a for- amount in rubles to engineers and hears such careless statements cent. interest on the money borrow- eign country and change part of workmen employed in constructing that a Russian worker receiving ed." my money into their kind of money. factories and dams; and there was 300 rubles a month is getting only

"Why couldn't they re-sell the I therefore went to the cashier's a limited amount of goods for the equivalent of that in dollars at cottages or apartments, build more, window in my hotel, laid down a which one could spend rubles after the bootleg rate, or $7 or $8 a and engage in building speculation $5 bill, and inquired how may rubles receiving them. The lower paid month. While those paper rubles just as in other countries?" -

workmen had to spend their entire won't buy many dollars, they do "It would not be tolerated," said "The official rate for the gold wages for the simplest necessities, serve to pay rent, to buy food and Levin. "If there was anything in ruble," said she pronouncing ruble but there were others who had more clothing.

the record of any member of the rube-lay-"is about 75 cents 'to-day, rubles than they could use.

It is almost as if they were us- group to indicate he was a specula- gold tories were not yet in production and ing not money but coupons and it tor at heart, they wouldn't get the The much goods, especially luxuries, had seems possible that the Soviets may loan. Moreover, they would under to be imported. The government some day use coupons, or tickets, no circumstances be permitted a could not afford to stock their stores rather than money in their internal sell for more than the building cost.

with a great variety of goods. More- affairs.

If they sold at all, they would have over, the government was in great As Mr. Levin, Assistant Com- a difficult time showing a good rea- need of obtaining foreign money to missar of Finance, told me last sum- son for disposing of one building "Then tell me where am I to get pay on their foreign debts. Hence mer; "We still use gold for purposes and then putting up another.”

the greater part of the luxury goods of foreign exchange, but internally

"Is there anything else a group she they offered for sale was in Torg- the real backing of our money is can borrow money for, besides build- they don't sin stores where only foreign money goods. We can always sell all we

I asked. ing?" was accepted. Customers here were can produce, because if we

ever "No," said Levin, "that is all. We so mainly tourists and other foreigners. have a surplus we'll simply raise are trying to encourage more build- ing because it is still a serious pro- blem to provide adequate living quarters."

but of course we have no rubles." (That was in 1933. rate now is about 90 cents.)

"When do you expect to have supply on hand?" I asked.

"We won't have any," she replied, smiling at me sweetly.

them."

"But you can't get them," told me.

exist."

"You

see,

It was beginning to sound crazy I wondered if I had heard her correctly. In a ruble country and no rubles! Now, surely—

"A minute ago," I' said, "you mentioned the value of the ruble in American money. there are no rubles."

Now you

an

say

By Fred C. Kelly

"No gold rubles," she corrected. If the better paid workers wished everybody's wages "Well now, just on- average to buy luxuries, they had first to prices, day," I asked, banteringly, "what obtain valuta on the best terms pos- kind of rubles do you have?"

"We have paper rubles," she re- plied, "but here in the hotel we do not accept paper rubles. We take only valuta.”

"

of

sible.

Likewise, a foreigner; working in the Soviet Union, and paid in rubles, would have little to gain by saving his money, because one is not "You take-only what?**

permitted to take rubles out of the "Valuta. Foreign money. Dol country-nor to bring them in. If lars, francs, pounds any kind

he bought goods, such as antiques, recognized foreign money,”

he could not take these home with A light began to dawn. "Let me him unless he showed receipts at see now," I said, "if I make you. the customs house to prove he had As I understand it these gold rubles paid for them with foreign currency. you told me about, but which do Here again, there was great tempta- not exist, are simply an abstract tion to trade rubles for valuta ac- idea to enable you to make prices cording to whatever terms were dic- on goods in terms of dollars or other tated by supply and demand in the foreign money.

Soviet market. "That's about right,” she replied. To-day if a tourist chances to But my education was only start- obtain a few rubles at a low price, ing.

he finds his use for them is limited. I discovered that an ordinary They do show him a big saving in souvenir postcard and

stamp, stamps and cables, But he can't bought at the stand in the hotel, pay his hotel bills with them. If would cost more than 20 cents and he tries to buy goods in the Mos-. a stamp to send a letter by air mail torg stores, the cost is almost as to Paris would be nearly one dollar. much as if he had gone to a Torg- My social correspondence with sin store and bought the same goods friends at home seemed doomed to with currency he brought from his lag.

own eduntry. In other words, prices About that time, heard

I

an are high because the supply of American engineer whisper some- Soviet money still exceeds the sup- thing about sending a cablegram to ply of goods. People are still spend- America for only 14 cents.

ing rubles the government paid out

· I was becoming more and more before they had much goods. bewildered over this strange finan- However, goods sold for rubles in cial system. Then I heard about stor

stores open to the general public the black bourse, that is, the for- are not the only source of supply bidden practice of swapping paper to workers. The government has rubles. for dollars at a rate far be- said to its own people: "We'll try low the official rate. --.

to give you your bare necessities

In this bootleg exchange, I learn at low cost, in your factory or other ed, it is possible to obtain the or- cooperative shops, but when you dinary

paper rubles, in which all want more goods, you will have to Russian workers are paid, not at take your chance in the open mar- the official rate, but for about 21⁄2 ket." cents each.

Until a few months ago, bread There is a heavy penalty' for could be obtained by a worker, in any Soviet citizen who engages in limited quantity, at a great bargain. such traffic, but it has been going To-day ration cards for bread are on and will continue until there no longer used since bread has be- is a plentiful supply of goods. Little come plentiful enough to be sold at boys sometimes sell rubles on the a uniform price, no matter how street. But already the situation is much one buys. But the price is improving and the Soviets are look- higher than was paid by

one hold ing

pa forward to the day when with inga ration card. The

no

govern- more plentiful, there will be ment has raised everybody's wages advantage in trading rubles. for ten per cent to offset this higher foreign money.

price. --- Ration carda still exist for To understand what brought various other articles, but the gov‐ about this bootleg financial ernment is now aiming to do away

change, we must recall that, in the soon with all rationing and produce

or. else

to

Meanwhile, amusing things hap pen. Russians prefer foreign money to their own and they are not always well informed about, the relative value of different coins. lower

ver Last summer I hired a sleepy droshky driver to take me from an "Can an individual ever go to one amusement park to my hotel. I of your state banks and borrow

happened to have ten rubles a friend money for his own purposes?” asked Levin.

I had given me. They were worth about $9 at the official rate but "Not from the bank," was the doubtless had cost my friend less reply, "but an individual who needs than 30 cents. money to tide him over an emer- the driver, but he spurned them, I offered them to gency can borrow small sums from demanding more. Then, as a bonus, his trade union."

I added two ten-cent pieces. Still "Nobody can the bank except the government it back into my pocket and

ever borrow from he was dissatisfied. I put the dimes self?" :

showed "A group of people can some He noted that the nickel

him a shining new buffalo

nickel times form a corporation to build than the dimes, as well as of a was larger summer cottages, or a cooperative similar colour, and he took it along apartment house"" was the "But every member of such a group with every indication of deep satis- reply with the rubles in- full settlement

is carefully investigated. They faction.

CORONATION

1037

In the year 1307, King Edward II of England ordered the Senechal of Gascony and the Conetable of Bordeaux to send One Thousand Hogsheads of Bordeaux Wine to England for the e celebration of His Coronation In accordance with this tradition Hanappier, Peyrelongue & Co., are shipping a Reserve of the

famous Chateau Calon-Segur, Vintage 1926, 1st nic

Saint-Estephe, and a "Cru Classe" of Medoc, they have especially selected for the Coronation Celebrations.

They are also having a Special Coronation Bottling of that splendid Vintage: 1934, to be laid down for later consumption, and which will be ready for shipment in February 1937.

Drink the health of King George VI in Wine from Gascony, that fair® Province over which reigned Kings Edward II and Edward III. Chateau Calon-Segur, one of the oldest Chateaux in Gascony, is well worthy of that honour.

HANAPPIER, PEYRELONGUE & CO.

81,

Cours du Medoc, 81

BORDEAUX. — France,

STOCKS NOW AVAILABLE AT

GANDE, PRICE & CO., LTD.

SOLE AGENTS.

AND AT ALL WINE STORES.