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On the rise in retail prices.

A source: 
http://sovdoc.rusarchives.ru
Archive: 
RGASPI. F. 17. Op. 3.D. 871.L. 44-46.
Appendix No. 9
to p. 41/4 pr. PB No. 87

On the rise in retail prices.

Approved by the Politburo of the Central Committee of the CPSU (b) January 31, 1932 )

All the Central Committees of the National Communist Parties, regional committees, regional committees of the All-Union Communist Party of Bolsheviks.

From February 1, there will be a partial increase in retail prices for some consumer goods. When answering workers' inquiries on this issue, the Central Committee of the All-Union Communist Party of Bolsheviks proposes to be guided by the following instructions.

In 1932, the party set itself the task of implementing an enormous national economic plan, including the construction of a large number of new factories and factories for the production of consumer goods (textile, shoe factories, sugar factories, canning factories, meat processing plants, etc.) ).

The capital investment plan in 1932 will exceed 21 billion rubles, which should ensure the completion of the five-year plan in four years.

A feature of the national economic plan of 1932 is a sharp reduction in imports of equipment, raw materials and semi-finished products, which requires us to set up, on our own, a number of new industries necessary to ensure the economic independence of the USSR from the capitalist world, and to strengthen our country's defense against the growing hostility of the capitalist world.

Fulfillment of the national economic plan of 1932 and, in particular, the capital construction plan, the establishment of new production facilities and the strengthening of defense capability require the use of all sources of accumulation in the country and, in particular, a significant expansion of state revenues from Soviet trade.

The need for a certain increase in prices for a number of consumer goods is caused, in particular, by unsatisfactory work during 1931 to meet quality indicators in a socialized economy, to reduce costs and accumulate profits. As is known, in 1931, industry not only did not fulfill the task set for it by the party to reduce the cost by 11%, but in a number of industries allowed a significant increase in cost.

The tasks for reducing the cost of transportation and reducing the cost of construction have not been fully completed either. By this the Soviet state was deprived of several billions of accumulations, which are necessary for solving the combat tasks of our socialist construction.

Along with this, in 1931 we had a tremendous increase in the monetary incomes of both the urban and rural population, significantly exceeding the planned assumptions . Suffice it to point out that the wage funds in 1931 exceeded the plan by almost 5 billion rubles .

Also, the monetary income of the village increased significantly more than the plan, due to its growing income both from the sale of agricultural products, and from participation in the industrialization of the country (otkhodnik, etc.).

In 1932, a significant increase in both the wage funds and the monetary income of the countryside was also planned.

Meanwhile, prices for retail consumer goods were set in our country many years ago at a reduced level, while a number of goods are still sold to the population below their cost price, and for a number of other goods the necessary trade costs are not covered.

It should also be borne in mind that in 1930/31. there was a significant increase in procurement prices for beets, flax, cotton, in order to expand their production to strengthen our light industry. This increase in procurement prices for the main industrial crops has not yet been taken into account in the price of the goods, which led to the loss of a number of organizations, with extremely low prices for their products.

In 1932, an increase in procurement prices for pork was carried out and a certain increase in milk prices was predetermined in order to expand the supply of the urban population with animal products (meat, milk, butter).

This increase in procurement prices for industrial crops and livestock products should be reflected in the price of goods in order to ensure the break-even and profitability of the work of our economic agencies, which is absolutely necessary for cost accounting.

Finally, we must bear in mind the broad program of construction of shops, bakeries, canteens and other enterprises associated with the expansion of public catering and supply of the population in general, which requires significant funds and can be carried out only if the basic goods are sold at prices that ensure accumulation of our economic agencies.

A partial increase in prices, of course, can in no way diminish the exceptional importance of other sources of accumulation. The most important lever for the fulfillment of the 1932 financial plan is the struggle for intraindustrial accumulation, which should find its expression in a decrease in production costs by 7% and an increase in labor productivity by 22%. All forms of mobilizing funds from the population also play an important role.

Any attempt to portray the current partial increase in prices for certain commodities in the form of a supposedly general increase in prices should be regarded as Trotskyist slander against the Party. Our price policy has been and remains a line for further systematic price reduction based on cost reduction, based on the successes of socialist industrialization and collectivization.

Party organizations must intensify their struggle against all manifestations of greedy tendencies in the trade and cooperative network, against the manifestation of the Nepman spirit, in the form of attempts at indiscriminate price increases, against attempts by individual organizations to use the ongoing price increases for their own profit and speculation.

NKSnab, Tsentrosoyuz and their local authorities, as well as other trading organizations are obliged to immediately revise all markups downward, to minimize overhead costs in the distribution network.

The Price Committee, the Price Inspection of the NK RKI and its local bodies, with the involvement of the widest masses of workers, should organize careful control over the strict implementation of the newly established prices, bringing those guilty of violating them to criminal responsibility.

Central Committee of the CPSU (b).

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