Transcripts of the meetings of the Politburo of the Central Committee of the RCP B - October 26, 1925
source: Transcripts
of the meetings of the Politburo of the Central Committee of the RCP (b) -VKP
(b) 1923-1938. Moscow. ROSSPEN. 2007. Volume 1 1923-1926. P. 319-366
Archive: RGASPI.
F. 17. Op. 163. D. 529. L. 1-141 (uncorrected transcript); D. 530. L. 1-135
(transcript with copyright correction); D. 533. L. 1-13 (verbatim report).
October 26, 1925 1
Chairman Kamenev. Let's
start with the first question - "On specific measures in connection with
the procurement campaign." Comrade Sheinman has the floor for the
report.
Sheinman. The members of the Politburo probably remember that the original plan of procurement was drawn up at 780 million poods. 2 This was the sum of the state and cooperative procurement, when we proceeded from a total harvest of 4 billion 200 million poods. Probably, comrades remember that then there was a dispute with the State Planning Committee, which calculated the gross harvest at 4 billion 700 million poods, but we agreed on the figure of marketable grain in the amount of 1 billion [100] 200 million poods. As you know, recently there have been changes in the weather, which delayed the harvesting of bread in many places, which, naturally, affected the quantity and quality of the harvest. Currently CSO, Gosplan, mine 3 and other institutions are finalizing the definition of the gross and marketable size of the crop. Work at the CSO and elsewhere is not over. In Vnutorg we define that [commodity] the gross part of the crop, thanks to these unfavorable conditions, decreased by 220, perhaps 250 million poods. In accordance with this, the procurement plan is to be changed. But the procurement plan does not change in such a direct dependence on the total harvest, because in those places where less grain is harvested, peasant consumption also decreases accordingly.
Therefore, a number of
amendments are being made, and our data currently determine the state grain
procurement at 680 million poods. for 100 million poods. less than we
initially thought. This, of course, is still an assumption. This
issue has not been resolved anywhere, these are our
calculations. Moreover, we got this figure due to the fact that we
introduce Siberia and the Urals as essential and active items. Harvesting
in Siberia should increase, according to our assumptions, by 20 million poods. [20] 10
million poods. But at the same time, an even worsening situation is
outlined in the Bashkortostan Republic and in Central Asia, where the size of
the crop failure looms more than one could have assumed at first. But the
rearrangement of the harvest figures is unevenly reflected in different crops,
in different places the harvest of crops is different - some crops will be
harvested less, others more than expected. If [I take] we
take the main crops, then the harvesting of rye is affected - for 20 million
poods. downward. Also for wheat at 20 million poods. Decrease by
the remaining 60 million poods. falls on other cultures. [The
remaining 60 million poods. fall on other crops, which in turn are offset
by a slightly increased yield of other crops.]
The main difficulty is
that both the original plan, [which cannot be called a tentative
plan, that is,] and the assumptions that I now have, are
calculated on the basis of balances. We assume that the peasantry will
have so much free marketable grain and that it will have to throw this grain
onto the market. These balance calculations, because we have no reserves,
by which we could operate and manage makes its own amendments, the peasantry
pricing policies and demand, and [this plan] now
gives the market the bread rations 4... It cannot be said that today
there is a sign that the peasantry will not give the amount of grain that we
expected, or there is a sign that the peasantry will give this amount of
grain. [Plan for] The procurement of the first quarter gives
160 million poods. (in round numbers). 35 million poods. give
the first half of October. Until January, if we go at the same pace as
now, we will take [220 million poods. plus 160 million, ie] 380
million poods. In the second half of the year will remain, thus, according
to my calculations. 300 million poods. We take in this case about 60%
of the annual [harvest] of the plan.
Stalin. How
long does it take?
Sheinman. By
January 1st. This is my minimum plan - if we go at the same pace as
now. This will be approximately 60% of the 680 million poods
figure. The main difficulty lies in the fact that the peasantry keeps us
on rations and deprives us of the opportunity to operate on the demand
market. Our initial summer supposition that the peasantry would sell their
grain and receive Soviet money for grain was opposed by the peasantry. The
peasantry sells its grain to the extent that it needs money, partly for
financial needs: taxes, vodka, etc., partly to the extent that there are goods
on the market. This circumstance can now be considered almost
established. I have expressed these views on several occasions in recent
times. Some comrades laughed ironically at me. I think that the last
session of the All-Russian Central Executive Committee5 confirmed with
absolute evidence these views. The peasants do not hide this, they say: we
sell bread to the extent that we need it to receive certain funds, to satisfy
our needs. We will not produce more than this amount of bread,
because we are not sure that we will receive the goods subsequently at
reasonable prices, i.e. that money will not fall in value. In other
words, money has not yet become that universal commodity, in exchange for which
any commodity can be obtained at a fixed price.
The peasantry keeps us
on rations. Under these conditions, going to the peasantry and trying to
get grain under conditions of increased prices does not in any way solve the
problem for us, because, since it turned out that the peasantry does not want
to keep a lot of money, which it cannot immediately realize, the increased
prices mean a decrease in the total amount of blanks. I will dwell on this
issue in detail, because in some places, both in our press, and even within our
apparatus, I encounter resistance. In some places, at least in the
Ukraine, they want to explain the insufficient intensity of procurement by
insufficiently high prices and reason that if we put up the price of grain, the
peasantry will be lucky with grain. I am convinced that this is not the
point, but that the peasantry sells grain to the extent that it needs money.
Stalin. And
for 2 rubles. 50 kopecks will sell?
Sheinman. He
will sell, but, of course, not the 600 million poods that we need, since the
money will depreciate. Since the peasantry does not sell all 600 million
poods at once, at least two and a half, but sells every day, gradually, until
the time when we collect not only 600 million poods, but 300 million, the
process will begin falling money. This is how I argue that the solution to
this issue does not lie in the way of increasing prices. In recent months,
the Labor and Defense Council has been quite active in not putting up with the
increased prices, which we were forced to accept both by domestic demand and
the fulfillment of our export obligations, and therefore the STO issued a
directive to reduce prices and reduce them to the directive 6 .
A decrease in our
demand for bread in the absence of even the most insignificant reserves at our
disposal could go exclusively along the line of reducing the export plan, since
the exposure of the domestic market, the consumer market, further aggravated
the discrepancy between our demand and peasant supply and aggravated in the
worst forms, forms of demand consuming areas. Therefore, the service
station adopted a number of measures, which in the field of procurement were
reduced to the fact that the plan was reduced 7... Reducing the plan
is of no small importance to us. Our procurement apparatus is
bureaucratic, and as an apparatus that sits at the procurement sites and is cut
off from sales markets, it is extremely oblique. He receives outfits in
the form of a planned assignment and does not stop at anything in order, if,
although not to complete the outfit completely, then as close as possible to
its implementation. This circumstance makes organizations compete with
each other, and competition is not reduced to the area of commercial
competition, i.e. to the area of cheaper purchases and more expensive
loss, to the purchase of better quality bread, and competition is in the area
of procurement, in the area of quantity, they all compete with each other,
just to buy more grain, and all the work comes down to the fact that the bread
that the peasant brought to the bazaar is torn from each other,
The first measure was a
reduction in the plan and, in accordance with this, a reduction in
lending. At the same time, it was stated that this plan is indicative,
especially for the two main crops - rye and wheat. If these crops were
supplied in larger quantities against the plan at reasonable prices, then all
the grain that needs to be prepared would have been procured, and the funds for
this would have been allocated. The next measure in this part is to reduce
the export plan and organize the export of grain so that sales are adjusted to
the progress of procurement, to the state of domestic prices, to the progress
of shipment to ports, and not to be carried out mechanically only on the basis
of a pre-established plan for the export of grain that is still in peasant barns. The
rest of the activities are financial and organizational activities. Among
them, mention should be made of the prohibition of state producers to buy bread
from individuals and through individuals, because we have achieved a very
harmful phenomenon in this direction, namely, the main procurers carried out
most of their work through private intermediaries who have commission
agreements with them. In the same way, it is envisaged that less funds
should go to the peasantry from any other source.
Some local authorities
have issued such a regulation that when corn is contracted, the peasantry is
paid the full value of the goods. If the peasantry receives all of it for
the corn which it surrenders in February-March of the next year, then it will
have no incentives to export food crops. At the same time, the bulk
network of grain procurers has been significantly reduced, namely: from 1738
points it has been brought to 1270 points, i.e. the network has been
reduced by 27%. I believe that this reduction is still far from
sufficient, that our procurers have gone too far into the depths, our procurers
are sticking out in the villages, they are waging a fierce war against
cooperation, but the moment when the question should be raised of both the
reduction of the procurers themselves, and of the reduction of their network
has not yet arrived.
In particular, in
relation to two regions, the Urals and Siberia, the STO gave me the right,
following the example of last year, either to limit the number of procurers and
to reduce the distribution network, or to create a syndicate of the main
procurers. Measures of this kind should be coordinated by me with the
regional executive committee and the revolutionary committee according to their
affiliation.
In the area of
procurement prices, instructions were given to strive to reduce to the
guideline prices, and in this part, these instructions gave a reduction in
demand. I will not dwell on this in detail today. In any case, these
measures gave known results. So, for example, out of 100 percent of the
points that we observed, half of the points have stable prices; in a
quarter there are venal ones with a slight downward trend. In the rest of
the quarter, an increase is noticeable. It is necessary to clarify the
question, what is the difference between the limit 8 and the
guideline prices. The difference lies in the fact that the directive price
also has commercial measures: a decrease and an increase in demand. [When
at limit prices there is a decrease in prices, then the demand for goods
decreases, but in the implementation of planning considerations ... * with
well-known commercial measures.] (* So in the document) At directive
prices, the desire to reduce prices is accompanied by a decrease in
demand. In addition, the directive price at its other end rests, in any
case, must be based, with well-known commercial measures, on consumer
prices. Now the demand for bread is significantly decreasing, the plan is
being cut, etc. This is necessary in order to achieve the directive
prices. Reducing the directive prices for other crops is necessary so that
they can be exported abroad.
I pass on to this main
question. In my opinion, we in this part in most regions have now reached
prices that, although they exceed the directive prices by 10-15%, are
acceptable for the domestic market. There is one defect in the directive
prices, which is that we equal them mainly to world prices. Meanwhile,
with regard to crops such as rye, we can hardly equal [commercial] world
prices. If we were equal to these prices, we would have to pay 50 kopecks
for rye. per pood, because the price that has been established on the
world market for rye, barley and oats is transitional, temporary, and because
this year not only the Balkan countries, but also Poland, Germany, etc., are
involved in the export of these crops, and these prices are in no way linked to
the agricultural economies of even these countries. I suppose we cannot
take out a lot of rye, we can take out 20 million poods, and in the first half
of the year there are about 13 million poods. Rye is the most basic
consuming crop on the domestic market, especially among the peasantry, and the
price, set at 1 ruble. 40 kopecks. for a pood of flour, is very
acceptable for the domestic market, and therefore, when constructing
directive prices, we are actually most forced at the present time to equalize
with the domestic market. Due to our lack of reserves, we do not have that
instrument of demand that can affect the peasant economy, and under these
conditions we can give instructions to the regions so that they do not strive
at all costs to bring prices to the directive, because these prices, even
increased by 10-15% against the directives are quite acceptable for us. Lowering
prices for rye will not give the increase in procurement, which is required to
increase the export plan. so that they do not strive at all costs to bring
the prices up to the directive, because these prices, even increased by 10-15%
against the directive, are quite acceptable for us. Lowering prices for
rye will not give the increase in procurement, which is required to increase
the export plan.
With regard to the
financing of grain procurements, measures have been taken so that money is
barely available and issued in accordance with the progress of procurements and
so that free money from procurers cannot influence the price
increase. Special measures have been taken in the area of saturation of
the domestic market. These measures boil down to the planned delivery to
the consuming regions and to the establishment of sales prices there at an
acceptable level for us. It should not be concluded from this that all is
well in the consuming regions. This is not quite the case. We have
relative prosperity in certain main points: in Leningrad, Ivanovo-Voznesensk,
Tver, Moscow and Tula. Elsewhere, we have failed to supply and satisfy the
market in the way we would like. But in the near future, if the blanks do
not fall, we will achieve this. 195 million poods were prepared for
October 15. It could be considered, that with such procurements, the
domestic market will not be satisfied. It should be taken into account
that 60 million poods of this amount need to be discarded, which were shipped
for export, and thus the figure of 135 million poods remains, which seems to be
used for the needs of the domestic market. But at the same time it should
be taken into account that by the beginning of the new campaign our main points
were left without supplies with exposed mills and that at least 100 million
poods. you need to fill these recycling channels and set the whole
mechanism in motion. Until this process is completed, the blanks cannot
enter the domestic market in full, but will get stuck in the commodity-producing
and processing channels. At the same time, we observe that the demand for
manufacturing jobs has increased significantly. If last year it was
possible to give outfits and they were carried out, then this year the
situation is much more difficult. First of all, the places require the
satisfaction of their needs and even the formation of good stocks. Thus,
of this amount, 195 million poods. a significant part is spent both on the
consumption of the producing regions themselves and on the formation of
reserves.
I started my post by
pointing out that all our calculations are balance calculations. In the
field of finance, you can hardly think of anything other than what is invented.
Agricultural tax will
have to be levied rather harshly; loan also; the semssud is
recovered; regarding vodka, we turned to face the village. At the
moment, we cannot talk about a tax increase. The incentive for the export
of grain by the peasantry lies in manufactured goods in two sections: one
section - the quantity of goods, and the other - the price of goods. This
is not only a matter of quantity, but also of price. If the price is as
high as it is now, then the peasantry can do without certain commodities, since
it is not profitable for them to sell grain at a cheap price, but to buy
commodities at a high price. The situation with the supply of goods in our
country is now relatively safe. The fact is that in the summer goods were
not produced due to vacations, but in October the consignment of goods that was
moved to the village was twice as large as the one that was moved in
September. and the implementation of the plan became more
organized. Now there is no need to complain about the failure of the
plan. I don’t know further how things will go. The same is the case
with questions of prices. Attempts by the producing bodies and syndicates
to violate the established prices and earn in excess of the norm are gradually
getting rid of. The increase in the wholesale index by one and a half to
two percent is explained by the fact that some trusts are not quite willing to
obey not only us, but also the Supreme Council of the National Economy, conduct
their own policy and do not follow instructions on the release of goods at
fixed prices. The task of Moscow ends from the moment when the goods are
released at the prices set by the government, and then the task of places
begins. Further, we see predatory resale, desperate speculation and
everything that contributes to the fact that the goods released from Moscow, in
general, at relatively acceptable prices - of course, not equal to the
pre-war prices, but, in any case, acceptable for the peasantry - reaches the
peasantry at absolutely impossible prices. If you compare the selling and
selling prices, you get a difference of 100, and in some places,
200%. Moreover, we have here a far from desirable approach on the part of
the authorities. Local people say: our cooperation is poor, why can't they
make money on this business? Resale permits and private individuals are
often observed. On our line, we gave an order, on the Soviet line, the
last resolution of the STO puts responsibility for this entirely on the local
executive committees, imposing this responsibility on them, it also gives them
quite extensive rights for the delivery and distribution of goods in the
regions9 . But a cruel party directive is needed here. We do not
have almost a single district, the best in the party relation, where no
exceptions are made for this or that regional cooperative, for this or that
regional internal organization.
The issue of credit institutions
stands apart. Here, in spite of the decision of the STO, the same orgy
continues. All banks, starting with the State Bank, ending with the City
and Industrial Bank - and the Moscow City Bank is protected by the Moscow
Council, and I declare here with full responsibility that Comrade. Uglanov
is sincerely upset when we interfere in the activities of the Moscow
cooperation or the Moscow City Bank - they are engaged in speculation. Why
not cash in on credit transactions? With regard to the Moscow City Bank,
we have cases of selling calico with an additional assortment in the form of
cocoa, coffee, high-quality tobacco, etc. Whether Turkish tobacco is good,
we have not figured out in this matter, but, in any case, the peasants cannot
smoke high varieties of tobacco.
Now I turn to the issue
that needs a directive, namely, that strict regulation is needed not only in
the economic but also in the administrative line. In relation to our
cooperatives and the Moscow City Bank, so that they, together with the
manufactory, do not throw away other assortments unacceptable for the peasants,
economic regulation is not enough, administrative regulation is necessary.
Molotov. Both.
Sheinman.Regarding
both, it is difficult for us to carry out, since we do not have goods, and
those goods that we have, we must deliver to the places as soon as
possible. Those comrades who are sitting in Moscow and in the localities
should not be engaged in resale, and it is necessary that they understand the
political significance of this issue, here it is impossible to confine
ourselves only to the circulars of the Internship, you can always have time to
execute the circular. They must understand that this cannot be done
politically, and that they can only be approached by one administrative and
political method, because economic regulation in relation to those who should
not be engaged in this will not be enough. In the same way, economic
regulation cannot be used to approach a tobacco syndicate that does not
recognize regulation, which has embarked on the path of a private shop, saying
that tobacco is sold for 30 kopecks. a sheet of smoking paper costs 5
kopecks to it. A carriage of makhorka costs so much, and two boxes of
smoking paper cost so much to it.
Rykov. A
man smokes a newspaper, why does he need smoking paper.
Sheinman. The
peasant does not buy this paper, but the cooperative must buy it.
Rykov. It
is necessary.
Sheinman. They
say it's an assortment. Something must be done here, or I am really
mistaken that economic regulation does not apply to our people's commissariats
and their subordinate bodies. Some other measures must be opposed
here. The regulation in relation to our bodies, of course, must be administrative.
Sokolnikov. But,
unfortunately, it does not happen in an airless space.
Sheinman. I
am not saying that I will carry it out, but let everyone go along their own
line. Comrade Sokolnikov says about the airless space that Sheinman
will only regulate. No, let Comrade. Sokolnikov regulates banks,
comrade. Pyatakov - industry, etc.
In general, all the
measures that have been outlined in recent years boil down to the fact that in
the field of grain we are reducing demand, reducing, of course, to such an
extent that, on the one hand, is acceptable for the peasantry, on the other
hand, not lower than that. degree, which is caused by our objective
situation. There are empty stomachs in a number of localities that are in
high demand versus what we wanted. In the field of manufactured goods -
greater rigidity and greater responsibility for local and state bodies. In
general, I think that the situation is not so bad, because even if the plan is
reduced, as we have outlined, from 780 million to 680 million poods, we will
get a decrease in exports by about 70 million poods, as I believe that the 30
million decrease will fall on other graphs. We will have an absolute
export plan of 310 million poods.
Kamenev. With
oilcakes?
Sheinman. I
say 310 million with oilcakes, and I reduce exports by 70 million, and 30
million fall to the reserve fund and other funds. Still, in this case, the
reserve fund will amount to about 70 million poods, and if we break the
peasant, we can increase this fund even more, but it is still premature to talk
about it.
Rykov. The
rains cannot spoil anything.
Sheinman. Here
we are faced with new factors. Our grain procurement campaign has been
dragging on for a whole year. This campaign will not last 6-7 months, as
we expected, but 12 months. I remind you that we started the 1923 grain
campaign around December 23, on the eve of Christmas the first contract was
concluded, we were trading grain until July and even in August, so there is
nothing particularly terrible here. Of course, we will have to slightly
change many conclusions regarding the import plan. There is a strong
stretch in the pace, which is reflected in the pace of our imports.
Stalin. A
few questions. 780 million poods. - the initial procurement
plan. Now you assume 680 million poods. What percentage of this
prospective harvest would you originally have had by January 1st?
Sheinman. 70%.
Stalin. Now
are you thinking of achieving 60%?
Sheinman. Yes,
that's right.
Stalin. Then
you said in your report that prices in terms of exports and in terms of
domestic consumption collide, you had to equalize at the expense of the
domestic market. How was this reflected in the service station, what was
the way out there?
Reducing the overall
plan from 780 million poods. up to 680 million poods., you referred that
the calculation of the gross collection was incorrect. What were the
factors here? Another question. Is it not known what the procurement
was really equal to in the second decade of October? The first decade gave
a figure that did not coincide with the plan. The second decade,
apparently, also does not coincide, where did you get 90 million in
October? Obviously there will be less?
Sheinman. 70
million
Molotov. The
question of the roles of cooperation in grain procurement.
Stalin. And
one more question about a united front of procurers.
Molotov. What
role has the cooperation played so far in grain procurement, and what is the
further role of cooperation in this matter, how do you assess this
role? And then, in terms of bringing industrial goods to the countryside,
how do you think this case should be regulated?
Rudzutak. At
a meeting of the STO, Comrade Sokolnikov showed me a table according to which
the fixed fixed agricultural tax was lowered in relation to the well-to-do part
of the peasantry. The tablet that Comrade Sokolnikov showed me indicates
that this year's tax will mainly fall on the poorest section than on the
well-to-do section, and this percentage, even the absolute amount of tax paid
by the well-to-do section, will be lower than last year. If we take into
account that 14% of the peasants will throw 60% of the marketable grain on the
market, is it not possible to take any measures here besides the general
measures that Comrade Sheinman proposes? Is it possible to take measures
in this direction in order to force this well-to-do part to be thrown away
without affecting the entire mass of the peasantry?
Sokolnikov. Of
the 310 million poods, which you are planning to procure within a year using
the reduced version, how much will be prepared by January 1? I am asking
this about export bread.
Tsyurupa. What
considerations does Comrade Sheinman have on the following question: we have
delayed the sale of bread abroad, at this time our competitors are placing
their bread abroad where we should have placed, thus, the capacity of this
market is decreasing. If his assumption that we will operate on the
foreign market throughout the year is correct, then will we be able to accommodate
those 310 million poods that we propose to collect for export? Perhaps
Comrade Sheinman has some calculations.
Sheinman.780
and 680 million. This is the answer to the first question. I am approach ing
from the point of view of gross collection, I say that this is a balance sheet
figure, I estimate this figure in terms of gross collection. Of course, it
is not a law for a peasant to throw 680 million or more bread on the market if
he has an incentive to do so. You need to know that there is a graph in our
balance sheets: how much bread a man leaves on his farm. If he receives
the goods he needs for bread, he can, of course, leave less bread on his
farm. He will leave a smaller maneuverable fund if we give him the goods
he needs. If we do not give him this product, then naturally he will leave
a larger maneuverable fund. These figures are statistical balance figures,
we proceed here from the amount that a man should leave approximately on his
farm under current conditions. I want to remind you that when the SRT and
Politburo adopted the figure of 780 million poods, I wrote a letter and said
that it was 50-60 million poods. we are, perhaps, exaggerating this
figure. But precisely on the basis that it is impossible to know how much
grain each farm will keep, I did not consider it possible to argue, just as now
I will not argue if you say that a peasant will give not 680 million poods, but
620 million This figure will depend on how much we produce, how much vodka,
etc. A man is not obliged to sell bread. This is an indirect answer
to the question of Comrade Rudzutaka. Just a well-to-do peasant
cannot be forced to sell grain by any measures; he will find thousands of means
and tricks to dodge it. The well-to-do part of the peasantry can be forced
to give grain for tractors, for complicated villages. cars. The
scream comes from everywhere and mainly on the part of the well-to-do
peasantry, who agree to sell their grain and pay 50% in cash for tractors, for
complex agricultural production. machines, but simply, in vain, this part
of the peasantry will not sell their grain. Since the question of
agricultural activity has been raised. tax, then I often have to come up
with this issue, in separate conversations with the peasants, with individual
comrades, I explain so that our policy of postponing the deadlines is the
correct policy, because if this were not the case, then if the harvest
campaigns we would press on taxes and we would be in big trouble. But we
would not have been able to squeeze the kulaks and the well-to-do, because they
are very strong. For example, if our bodies at certain points lack several
thousand rubles, they receive this money from the kulaks.
Comrade Stalin's next
question is how much we assumed with the plan of 780 million
poods. prepare by January 1. 545 million (70%). Now we assume
60%. 10% from 780 million poods. - this is 78 million poods. of
bread. Now I have taken exactly this minimum figure for half a
year. 380 million poods, and I count October not 90 million poods, as in
the plan, but 70 million poods. I now consider this plan a realistic and
to a certain extent, if you will, a minimal plan. In the first
s.-kh. half a year we are supposed to take out 110 million
poods. instead of the expected 170 million poods, or something like that.
The next question is
the gap between the domestic and foreign markets in relation to some
cultures. How was the question resolved? There were big battles, it
is true, not with Comrade Sokolnikov, but with a certain collegium of defenders
and advisers who worked under Comrade Kamenev. Can we carry out foreign
exchange export, i.e. unprofitable export, or not? As if they agreed
that we cannot carry out unprofitable exports, that, in any case, it is too
early to raise the issue, because we are not talking about the sale of grain
purchased at a fair domestic price, but at a price accepted
outside. Despite the fact that you prove to the peasant that foreign
exchange export is an unbearable thing, for me it is possible that we will do
such a trick in relation to this or that particular culture that we will allow
to export several tens of millions of poods of this or that culture, even at a
loss.
Voice. Bread
product at what price does currency buy?
Sheinman. At
the price of 9 rubles. 50 kopecks But since Comrade Sokolnikov or
someone else for these 9 rubles. 50 kopecks will buy cars or
manufactures abroad, which cost 39 rubles in our country, then such an operation
is permissible in exceptional cases. At the session of the All-Russian
Central Executive Committee, this loss was discussed. For me and all those
present, of course, it is clear that if the situation develops in such a way
that it will be necessary to remove 30-40 million poods. this or that
particular culture, we will do it. But we cannot give such a slogan, especially
since it is not forced by the situation now. There is a well-known
correction to this: Ukraine - on purpose, and in relation to some other regions
it is necessary to give an explanation: do not strive at all costs to reach
world prices, because the domestic market can bear these prices by 20
kopecks. above. In relation to rye, go to a man with a price of 50
kopecks. for a pood we cannot. I forgot to say,
Chairman. Show
your tables.
Sheinman * (*
Along this paragraph there is AL Sheinman's note: “Talk with Kamenev.”) . (Shows
tables of domestic and world prices) ** (** Tables were not
saved.). Thick lines are guideline prices. The extreme top is
overseas prices, sales prices overseas. The directive price has a line
that should be in accordance with the foreign price, there is a small
deviation, our directive prices are in general equal to foreign
ones. Those lines and lines that are above the guideline price indicate
the prices that we have.
Kamenev. Let
me explain. Here is the guideline price, i.e. the one that we
count [along all three lines: world price, world budget] acceptable,
based on the world price and the replacement price for the peasantry; fair
price from 1 rub. up to 1 rub. 10 kopecks Here is the world price. The
difference between them is the difference in overhead costs. Here is the
approximate break even price that we can pay the guy. The difference here
is 56 kopecks. - this is transportation, transport, etc., etc. Here's
what we wanted to pay off. With such a foreign price, we would be able to
cover our costs and get some profit. If we paid the peasant at this price,
then we could sell at this price without loss, but also without
profit. But the real prices, they are higher than the directive and near
the break-even, and in some places they exceed the break-even (Armavir).
Sheinman. Question
of Comrade Molotov. Has consumer cooperation justified itself in grain
procurements? The Center has shown great caution in applying for the
plan. Agricultural cooperation goes lower, since it is in a state of
anarchist construction - it is everywhere and everywhere, but it is not there
yet. Consumer cooperation is in a better position, because it has been
working for many years, it has tightened up a bit, in addition, Tsentrsoyuz has
imports, this organization is richer.
With regard to
manufactured goods. Of course, no matter how much we scold the cooperation
(and today we scold it too), on the one hand, it plays a major negative role in
the implementation of all our plans, but, on the other hand, it also plays a
positive role, since it works, despite what is cheaper than a private
seller. But a greater order must be introduced into this matter. At
the session of the All-Russian Central Executive Committee there was a
unanimous cry that the private sector should not be provided with goods at
all. The peasants demand that all goods be carried through the
cooperatives.
Question
Comrade Tsurupa that the capacity of the European market is
shrinking. Europe this year is poor, it does not buy in stock, it buys
only for current needs. So, on the one hand, we have nothing to worry
about.
Voice. She
has her harvest.
Sheinman. No
matter how much it has of its harvest, it does not export from surplus - it is
purely foreign exchange export. Romania acted smarter.
We entered this
campaign with some difficulties. Of course, if there is an intelligent
apparatus (I am not raising organizational issues now), we will overcome these
difficulties.
Chairman. Comrade Sokolnikov,
would you like to answer the question? Since all questions rest on
imports, I think it would be more rational to hear the report of
Comrade Sokolnikov, then open a general debate on both reports.
Comrade Sokolnikov,
you have the floor for an answer.
Sokolnikov. I
understand the question comrade. Rudzutaka thus: if the surplus grain
accumulates at the strongest part of the economy and if the tax is lightened
for this part, then the tax pressure on this grain turned out to be
minimized. According to the data reported from Ukraine, this is the
case. I instructed to check this in some districts of the USSR.
Voice. The
poor got worse instead of relief.
Sokolnikov. I
think that we are now discussing the issue not in this plane. If we
discuss the issue of agricultural tax, we will also talk about this. Has
the tax pressure on the top that holds the bread really decreased? I was
sent a certificate from Ukraine. There this issue was discussed at a session
of the All-Russian Central Executive Committee. The certificate concerns 6
districts: Sumy, Umansky, Belotserkovsky, Proskurovsky, Vinnitsa and
Izyumsky. We are talking about the amount of tax that this year has been
presented for payment. I take a group of farms with 4 heads of cattle:
last year in the Sumy region 199 thousand rubles were presented for
payment. tax, this year 59 thousand rubles. In the Uman district,
farms with 4 heads of cattle paid 66 thousand rubles last year. tax, this
year - 33 thousand, i.e. in that district (Sumy) there was a decrease by
almost 4 times, here by 2 times. [In the Belotserkovsky district last
year, 4-head officials paid 34 thousand rubles, this year - 8 thousand. In the
Proskurovsky district last year ... this year 59 thousand rubles.] In
the Vinnitsa district last year - 142 thousand, this year - 40. In the Izyum
district last year - 447 thousand, this year - 208.
Voice. Does
this give the big picture?
Sokolnikov. I
am giving data by group. [The group with 3 heads of cattle (these data
are taken by districts), this follows from the mechanism of the changes
introduced by the agricultural tax.] For the group with 3 heads:
in the Sumy district last year the tax was 408, this year - 206. In Umansky
last year - 612, this year - 320. In Belotserkovsky district last year - 872,
this year - 462, etc. in all other districts. A group of farms
without livestock: last year in the Sumy District, the tax for them was 196
thousand rubles, this year 197. In the Uman District last year 453, and this
year 536.
Tsyurupa. The
situation distorts reality.
Sokolnikov. I
am giving you the figures presented for tax payments. In the Proskurovsky
district last year - 494, and this year - 482. In Vinnitsa last year - 208,
this year - 182. In the Izyum district last year - 336, this year - 313. If you
take the percentage of the sum tax paid for each district by different groups,
then for all districts this year we have such results that the group of farms
without livestock and with one head of livestock pays more than last
year. The 2-head group has stabilized, and the 3-4-head group pays less
tax than last year.
Voice. How
about crops?
Sokolnikov. I
am not talking here about groups by crop area, I am talking about groups of
farms by head of livestock.
Voice. You
need to get data on the sown area.
Sokolnikov. This
can be argued in another plane. I want to find out and check to what
extent this phenomenon is general, since there is no doubt that farms with a
large number of livestock are also farms with a large crop, and it can be
concluded that they also have a greater amount of surplus. We can say that
this way of doing things leads to the fact that our tax pressure is especially
weak in relation to this group [and we would have to get close to
them to get them to throw bread on the market].
Chairman. How
are we going to continue our work? Will we hear the report on the plan and
then will we hold a general debate?
Rykov. Exports
depend on procurements, procurements depend on exports, and the fight against
commodity shortages depends on exports and imports.
Voice. And
the development of industry depends on imports.
Rykov. You
can discuss it separately, but you need to hear the second report to get a
picture.
Stalin. Everything
is connected with each other. If we are talking about a procurement
campaign, then what does the export have to do with it, it would be better to
discuss the issue separately.
Rykov. The
amount of exported grain depends on our procurement bodies.
Chairman. Comrade Sokolnikov,
you have the floor.
Sokolnikov. Of
course, the discussion of the procurement plan would benefit if it were
separated and discussed separately, but here we must outline some measures and
define our policy with regard to grain procurements. This can be done only
if you approach from the point of view of procurements for the domestic market
and grain procurements for export [in the sense of measures that
need to be understood ].
[ Rykov. It
should be discussed separately, but for the party line to come together.]
Stalin. We
will hear first comrade Sokolnikov, and we will divide the discussion of
general issues (accepted).
Sokolnikov. I
present my report in the following way: first, I want to give a picture of
those specific difficulties that arose at the end of the 4th and the 1st
quarter in connection with exports and imports; then provide an analysis
of our currency position due to export-import difficulties and
changes; then touch on the issues that arise from this provision and the
necessary measures or at least the general direction in which to act.
If we turn to the
difficulties that we have now created in terms of exports, then I must say that
the picture seems to me nevertheless less smooth than the one that seemed to
have emerged from Comrade Sheinman. We had the following position:
during the last quarter of last year, during July, August and September, a
rather forced procurement program was carried out, including for export at a very
high level of grain prices. Then, when it became clear that it was impossible
to maintain such a high level of prices, we began to carry out a significant
reduction in grain procurement and the export program in the current
quarter. Since exports make up a significant amount in our export plan for
the first quarter, this circumstance turned our export, and then our import
plan, upside down. It was originally supposed that the export of
bread during the first quarter will amount to 175 million rubles, but this
amount is 175 million rubles, the plan was not included, and there figured
155 million rubles.
Stalin. We
are discussing the export-import plan, why isn't Comrade Krasin here now?
Sokolnikov. I
will report on the export-import plan in connection with our currency
situation. The export-import plan is a sale and purchase in foreign
currency, and therefore every export-import operation is a foreign exchange
operation. I will not dwell specifically on assignments for groups of raw
materials, manufactures, etc. The figure is 155 million rubles. was
included in this plan, then the need to reduce this figure became clear. [Initially,
it was planned to reduce the plan of receipts from grain exports in the first
quarter to 100 million rubles.] But since this overturned the entire
economy of the export-import plan and currency settlements, we in the service
station and in the commission where this issue was discussed experienced very
large fluctuations, we did not want to go to the figure that would have to be changed
upward, and the Council Labor and Defense stopped at the figure of 110 million
rubles. ten If my memory serves me correctly, vol. Krasin and
Frumkin seemed to be proposing to stop at the figure of 90 million
rubles. The progress of further procurements at a reduced price level (and
this is especially important, because it should be borne in mind that in the
4th quarter of last year, procurements were sold at high prices, and the
current price level was still far from being reduced enough) showed that the
possibility of export has greatly decreased , and Eksportkhleb thinks that the
actual proceeds from the export of bread will not exceed 60 million
rubles. In the face of this statement, we had to reconsider our
export-import plan and check the statements made by Exportkhleb. Reduction
in the figure of foreign exchange earnings from grain exports by 60 million
rubles. was based on the fact that, firstly, it is not known whether the
grain concentration in the ports will be fully 100% fulfilled in the first
quarter, and secondly, if the entire program is fulfilled, will all the
bread be sold by January 1 and the currency received. Finally, during the
preceding quarters, there were large makings for a large export
program. Since the large export program begins to decline, we cannot take
further advance payments for such a large program, and Eksportkhleb believed
that it would be necessary to pay for the operations performed from the amounts
received in the 4th quarter. The commission that worked on behalf of the
STO and which included all the interested departments - Narkomvneshtorg,
Narkomvnutorg, NKZem, VSNKh, NKF - this commission still did not dare to reduce
this amount of receipts from grain exports to 60 million and took more a high
sum of 75 million. No one in the commission defended a larger figure. This
figure of 75 million for the export of bread is now included in our export
plan.
All export receipts,
foreign exchange receipts, should amount to 190 million rubles. Thus, the
initial assumptions were: [165] 155 million from grain
exports and 115 million on all other items. Now instead of [150] 155
million in bread we have 75 million rubles. and 115 million for other
items. We examined the question of whether this figure of 115 million
rubles will change, whether it is possible to increase the second part of our
exports during the first quarter, and in the commission we came to such a
conclusion, which I will continue to defend, that maybe [it is
possible will receive a little more than 115 million rubles , although] will
be on some items to increase exports. but. on the other hand, there
are dubious items in the 115 million (I draw the attention of the Politburo to
this, we have an increase in the price level not only for bread, but also for
other export items, for which export becomes unprofitable, impossible). So
I repeat that the 115 million have dubious articles. Thus, the
import-export, licensing and payment plans have had to be revised several times
in recent weeks. We had several options. According to the original
version, when it was assumed that the export of bread would give this maximum
amount of 155 million rubles, it was supposed to issue licenses for 560 million
rubles. The issuance of licenses determines the program of purchasing and
ordering abroad. When it turned out that the export of grain would not
give such results, then the licensing program was reduced to 524 million
rubles. We tried to fight in such a way that instead of falling grain
exports, we could tighten the use of credit, and we managed to raise the
issuance of licenses to 552 million, but when it turned out that this was not
feasible, we switched to the number of issuing licenses for 512 million
rubles. Thus, against the original plan, we reduced the license plan by 50
million. This means that the program of purchases abroad for raw materials, for
semi-finished products, mainly for agricultural machines, and, to a certain
extent, also for consumer goods, is changing. Moreover, this reduction is
only the beginning of the reduction. The import-export plan for the first
quarter is already in such a position that a number of steps have already been
taken, and purchases have already begun. Even with unfavorable prospects
for the export of grain, still We tried to fight in such a way that
instead of falling grain exports, we could tighten the use of credit, and we
managed to raise the issuance of licenses to 552 million, but when it turned
out that this was not feasible, we switched to the number of issuing licenses
for 512 million rubles. Thus, against the original plan, we reduced the
license plan by 50 million. This means that the program of purchases abroad for
raw materials, for semi-finished products, mainly for agricultural machines,
and, to a certain extent, also for consumer goods, is changing. Moreover,
this reduction is only the beginning of the reduction. Even with
unfavorable prospects for the export of grain, still [export and] import [will
give several billion rubles, as we assumed, ie about 1 billion for exports
and 1 billion for imports, and] will be about 800 million rubles
per year. So, if we issue licenses within the limits of [ 612 ]
512 million rubles, then within the framework of the annual plan it will be possible
to cope, but the main reduction will fall on the following quarters: II, III,
IV. If grain exports are further reduced, then in the future we will face
more significant obstacles.
The conclusions are as
follows. We already had to start revising the compiled production
programs. The SRT was supposed to speak out in favor of reducing the
programs for the import of cotton (which is partially offset by a better cotton
harvest in our country than we expected). This has already led to the need
to revise the program of the cotton industry. But the same will be true
for a range of industries. [This question is being raised now, if there
are no changes in the grain market in November-December, then we will have to
significantly revise all the programs of economic deployment in our country
during the year.] A licensing plan is not yet equal to a payment
plan. If an institution is issued a license for a known amount, it has the
right to place orders abroad, pay an advance payment and then calculate in the
future. It will be important from the point of view of our calculations to
find out how much we can pay during the first quarter. Here we have the
following amounts: according to the first option of the service station
commission, it was assumed that we could pay 192 million, now, according to the
second option, we found out that we could only pay 142 million rubles,
i.e. our payment resources decreased by 50 million rubles. Since
export grain decreased by 80 million rubles, it follows that we compensated 30
million through the use of loans, through the use of gold reserves, etc., but a
decrease of 50 million rubles. turned out to be completely inevitable.
More about those
imperfections that are present in all plans. Here you see a huge tension:
licenses are issued for 500 million rubles, and we can pay 140 million
rubles. This circumstance points to the risk, to any difficulties that we
will have in this matter. There may be underestimation of terms, some
discrepancy with our calculations. This always threatens that one day we
will be presented with demands for large payments. In the same licensing
plan, which I spoke about and which is set by the STO in the amount of 512
million, there are licenses that are issued during the I quarter and, on the
other hand, this plan includes licenses that were issued in the IV quarter of
the last financial year against I quarter of this year. Then, in the
payment plan, in addition to those payments that we must make for orders made
again, there are payments for the old obligations of the last
year. It became clear that no one can say exactly how much we have to pay
under the old obligations.
An amount of 50 million
rubles was named, but this amount is controversial. There were well-known
loans, deferred payments, etc. on operations last year. No one kept an
accurate record of these payments, which are due to us in the near future under
the obligations of the last year. For new orders, we have to give certain
makings, etc. And we do not know how much we will be charged under the old
obligations, we cannot name this figure. [The data are with the NKVT and
other bodies, which one day may come out and tell us that, they say, we need to
pay such and such an amount. We do not have exact and more or less correct
numbers in this part.] The NKVT should know this, which should monitor
the state of its organs, the state of cash registers, payments, etc. No
attention was paid to this, and this circumstance for the near future may very
significantly worsen our situation, because if the figure is 50 million
rubles. we are reserved in this export-import plan, then, on the one hand,
we reduce possible payments for new orders, and on the other hand, it may turn
out that these 50 million rubles. will not be enough to pay last year's
commitments. The matter may be complicated by the fact that, perhaps,
there are a number of economic bodies in relation to which the NKVT has some
favor, leaving them more currency than other bodies. But we definitely
cannot say this, we could not verify this, we have no instructions. STO
instructed to clarify this issue.[This is all from this point of view, and
these are just flowers.] However, even with these cuts, we are
moving at a pace that may not be justified if it turns out that in November and
December [will force us to reconsider our export and import plans] there
will be no turning point grain procurements for the better.
What did the changes I
talk about boil down to in individual industries? The main thing is the
following. For raw materials. Here I will report on the figures of
two options for our commission: Option 1, which assumed that the export of
grain could be kept by 150 million, and Option 2, according to which this
amount dropped to 70 million.
Stalin. Is
it before January 1?
Sokolnikov. Yes,
this is until January 1st, this refers to the quarterly plan. The question
now is to revise the export-import annual plan. It should be revised, but
this will have to be done when we have certain possibilities of final judgment
regarding the possible prospects of the export plan. In this situation,
which we are now in, I think we should pay attention to the following: we are
already fulfilling this import plan for the current quarter to a large extent
at the expense of loans, more or less short-term. We have no long-term
loans. Short-term loans allow us to spin, but at the same time, we undoubtedly
have elements of great difficulty in the future: either we, as we expect, will
continue to always be able to renew these short-term loans, [or expand
them,] or we will further align our currency position. If
neither one happens, [or we will correct our currency position,
or, if both happen] then at a certain moment we will be tied to a
thread, i.e. we will be placed in a certain dependence on the creditor,
more or less heavy dependence. But, in any case, when we go for this
policy of increasing short-term foreign loans, then, in order not to fall into
completely fatal mistakes and a difficult situation, at the same time we must
have countermeasures to somewhat strengthen our currency position, to
strengthen the reserve. It becomes absolutely necessary. If we go for
foreign short-term loans and collect loans for 100 million rubles, then we must
definitely increase our reserves by 25-30 million rubles so as not to be tied
up and not find ourselves in a position where we will stand or face the prospect
of complete bankruptcy , before stopping the delivery of goods to us, or before
the need to seek the continuation of loans [normal time ] on
bonded terms.
I must report that in
terms of our monetary position, we have undoubtedly experienced a deterioration
over the past six months, which I now think to report to you in all
seriousness, because things cannot continue this way. Why did this
deterioration in the currency situation happen? The reason is the poor
harvest last year. This crop failure forced us to use our gold reserve,
and we used 115 million rubles. gold. Compared to the old days, we
are now at the minimum of our gold and other foreign exchange funds. The
danger of the situation lies in the fact that, while the entire economic
machine is on the rise, while in the monetary area we are making giant strides,
since we have set in motion the development of credit within the country, we
get a kind of "scissors", that is, ... gold foreign exchange
reserves, which are a prerequisite for the stability of the monetary
mechanism, are reduced. I could show how this affects the whole
situation. This is not only about the formal provision of banknotes with
gold. Last year we had to reduce our gold fund by about [775] 10Q million
rubles. Last year, as of October 1, the Treasury fund had 155 million
rubles, and now only 50 million rubles, i.e. reduction by 105 million
rubles.
Stalin. Except
for all coatings and provisions?
Sokolnikov. Except
for what is available in the State Bank.
Of these, there is
foreign currency 26 million rubles, which are in the accounts of the State Bank
and are actually not available in cash. These are the obligations of the
State Bank.
Rudzutak. And
what about 50 million, by which the fixed capital of the State Bank was
increased?
Sokolnikov. This
is our currency, which is in the current account with the State Bank.
Voice. Do
you calculate this as a decrease in our currency?
Sokolnikov. Comrade
Rudzutak, as People's Commissar of Railways, should know that we have a gold
fund located in the State Bank, and there is the main fund of the state
treasury, which, according to the resolution of the Politburo adopted at the
beginning of 1922, can never be less than 150 million rubles. ... [But
formally, we can say that this resolution is being respected, since there is
another 150 million rubles. claims against various economic bodies, to
which we gave gold, and received from them chervonets. I am not, of
course, talking about the State Bank's gold fund . ]We
have 26 million rubles. foreign currency in the State Bank, but if I told
the bank - give these 26 million, he could not give them. Then we have 10
million gold and 12 million platinum. Platinum is not an easy commodity
right now. We have come here, as they say, to the handle. Everything
that could be pledged, we pledged, we are pledging platinum in London, we are
trying to pledge in America. It all boils down to 10-11 million gold.
Voice. And
Gokhran?
Sokolnikov. We
have been selling Gokhran funds for 5-6 years now, every year we pay several tens
of millions of rubles abroad. [We have now realized the fund of
valuables that we had.] Jewelry and stones have been used to a
large extent, and now we no longer have liquid funds for valuables, which we
had two or three years ago. There are trifles left in Gokhran, things that
we sell to the domestic market through stores.
Therefore, our
calculation should be such that, strictly speaking, the Treasury fund, with the
exception of the State Bank's resources, has 10-11 million rubles. gold
plus 12 million rubles. platinum.
Concerning the
resources of the State Bank. As of October 1 last year, its gold resources
in round numbers amounted to 240 million rubles, now they amount to 263 million
rubles. Thus, the gold provision of the State Bank for the year increased
by 23 million rubles. This, of course, cannot be compared with the
increase in money circulation, paper circulation within the country, where
during this time we have issued hundreds of millions of rubles in paper, not
backed to an appropriate extent by gold. What does the State Bank have
abroad for its payments? All his accounts and cash abroad now amount to 19
million rubles. In addition, from this gold fund of 263 million rubles, 41
million rubles. laid abroad. [If we compare the situation last year
and this year, it turns out that formally the gold fund has increased, but gold
is sent abroad in large quantities, because going abroad gold in order to
be there] Selling gold abroad would be to show a formal decrease
in the gold reserve. Since we do not want this, we resort to some veiled
shading, we lay the gold in London, in Berlin and now we assume in Vienna.
What is the situation
with foreign exchange resources? We return like a squirrel in a wheel, on
the one hand, there is a decrease in our gold reserves as a whole, on the other
hand, an increase in any obligations that we take abroad. If things continue
like this, we will face the danger of a serious order. What were we
calculating for? We had a calculation that this year's harvest will improve
last year's business. The whole difficulty of the situation lies in the
fact that now this amendment turns out to be much more complicated, because if,
in fact, grain exports this year more or less in a significant amount falls,
then we will not be able to carry out an improvement program in the course of
this year. currency situation and, with the accelerating pace of our entire
money circulation machine, we will find ourselves in a difficult situation.[The
currency plan of 1925/26 in the certificate distributed to the members of the
Politburo is given with a significant arithmetic error. We have 220
million rubles for the asset. This is an export-import plan, a currency
plan. The error is this: there are two numbers, 220 and 270, and 370 is
printed. This is on the second page, next to Kamenev's signature.]
How do we calculate the
currency plan for 1925/26? In the table in front of you, you see: 35
million rubles, not trade transfers (these are transfers that come from America
in dollars from wealthy relatives); new bank loans - 45 million rubles,
new trade loans (increase in the balance by the end of the year) 60 million
rubles; expenses of foreigners coming to the USSR, 5 million rubles.
Stalin. Is
it not a little, is it well calculated?
Sokolnikov. This
figure is approximate: more will be allowed in - more money will be brought in.
Concession, license and
other payments 15 million rubles, purchase of gold and platinum 60 million
rubles. Total RUB 220 million foreign exchange earnings. On the
liability, a program was drawn up that was supposed to ensure a more firm
currency position. Issue provision needs to be increased by 100 million
rubles. money circulation is growing - from October 1925 to October 1926
it will grow by about half a billion rubles. Partially treasury bills
(small denomination) will be issued, and therefore we are limited to increasing
the gold collateral by only 100 million rubles. The increase in the free
resources of the State Bank abroad - 20 million rubles, this is cash. Restoration
of the gold fund of the Treasury (return to the Treasury of gold that was spent
on the import of grain) - 100 million rubles, administrative expenses for the
currency list - 20 million rubles. This figure is perhaps an
understatement.
Stalin. Is
not it too much?
Sokolnikov. These
are business trips, sending sales representatives. [The figure for
administrative costs may be higher. ] This figure was determined on
the basis of experience.
[Payment for trade,
payment for contraband. I, of course, do not mean that we will pay the
smugglers, this is an extradition for the fight against smuggling and for
competition with them.] 20 million
rubles. - payment for non-trading operations. - regulation of the
internal foreign exchange market, etc. So, the total expense is 270
million rubles. Passive balance 11 - 50 million. These 50
million rubles. must be covered by the foreign trade surplus. As you
can see, this calculation is being constructed very carefully in the sense that
it leads to the requirement that by the end of the year we have a surplus of
only 50 million rubles. The weak side in this case is that we have 100
million rubles, if there is a calculation for receipts from a foreign
loan. If we cannot get 50 million rubles, then the minimum currency plan is
violated.
Now let me say a few
words about how this currency situation relates to the general economic
situation. First, if we had to spend 115 million rubles last year. to
export grain, [but this does not mean that we had to spend our
gold resources. With this, we wanted to prepare ourselves at the expense
of foreign currency (inaudible), direct it either
to the purchase of raw materials abroad, or to the import of consumer goods, or
to equipment, but somehow spend it in such a way as to soften the course that
was last autumn. What were the results?] this also had the result
that we do not have the means to prepare for the autumn campaign through
imports. We did not have the opportunity to speed up production in a
timely manner and received an aggravation of the commodity shortage, and this
is an increase in the level of prices within the country. [Of this
reduction in our gold reserves, a little must be spent on the purchase of
bread. Bread prices remained high. With regard to industry prices,
they are rising. If there was a loan on favorable terms, we could fight
against a commodity shortage with imports, and since this is not the case, the
fact of a commodity shortage should be regarded differently.] However,
it is one thing to have a commodity shortage under conditions of a lean year;
it is another thing to have a harvest, when 1 billion poods, 800-700 million
poods, there is grain. Therefore, I must say bluntly here that I regard
the situation that has now been created as a situation that is already, undoubtedly,
a step towards the possibility of some inflation. There is already a
foreword to inflation 12 . [Now the whole point is to open
the doors further, so that, no doubt, to roll further along this
path. Where the element will pull us in different directions, it is
already clear.] Now there is still no such situation that now we have
to say that we have already had a crisis, catastrophe, collapse and so on, we
already feel more stable in all sectors. If earlier we were given a fist
on our side and we fell to the ground, now we step over a little and stand in
such cases in a slightly inclined position, but that we are standing in a
somewhat inclined position is clear to me. What will happen next during
the year - it largely depends on the situation, which is beyond our will,
i.e. on the deployment of the grain campaign, how it will proceed in early
November, how it will proceed in December, on the one hand, and on the other
hand, much depends on our own policy. What are the indicators of deterioration? I
believe that the indicators are, first, our current level of grain prices.[Among
other things, it is the first indicator] If there is such a high level
of prices in such a basic industry that works for export as bread, if we cannot
overcome it, then this will mean a slight decrease in the purchasing power of
money. Maybe more or less long, more or less short, but dangerous, no
doubt about it. Hence what is the conclusion? This depreciation of
money in relation to grain threatens us with higher prices for other
agricultural products. If we take oil, we have the same
phenomenon. On the sunflower line, we have now found ourselves in a
situation where we cannot export sunflower oil, since prices on the domestic
market have jumped so that sunflower oil becomes unprofitable for export to
foreign markets. In the commission, we fought over sunflower
oil. When in Moscow sunflower oil rose by 75% in one week and can jump
even more, then it becomes unprofitable for export. If our exports,
in fact, begin to decline in this way, then our situation will continue to
deteriorate and deteriorate, and we will have to further reduce our import
opportunities. There is nothing funny in such a perspective, and here the
most decisive, fierce struggle to lower the price level is needed,
agricultural. primarily. With industrial prices we have found
ourselves in a situation where a commodity shortage is the result of high grain
prices, one thing gives rise to another. Since in the spring of this year,
small or large holders of bread dictated usurious prices for bread, since these
prices were kept and are still very high, this results in an increase in the
amount of money in the hands of those who hold the bread, and an increased
demand from them goes, puts pressure on the market and sets higher retail
prices for manufactured goods. I do not quite agree with what Comrade
Sheinman said about the administrative impact on prices. At a certain
level, the contradiction between the market position and administrative
measures begins to paralyze administrative regulation measures, and if
Comrade. Sheinman says - I want to regulate administratively, I take such
and such measures and so on, but they do not obey me, that, in particular, the
Moscow City Bank finds protection in the person of Comrade Uglanov, - this
proves that the market is beginning to disrupt administrative regulation,
putting a limit on it. Here it is necessary to treat the matter at the
root.
It was said here that
we can easily get out of this difficulty in such a way as to take it out at a
loss. This is the main question we must ask ourselves. If we, in
fact, went to such a policy, if we went to export at a loss, while maintaining
a high level of prices within the country, then we would hopelessly get stuck
and ruin everything, because it’s not a loss: we are a loss we can pay, we in
some cases carried out such a policy, for example, we exported rails for
V.-K. yellow dor. * (* Apparently, this refers to the Chinese
Eastern Railway - the Sino-Eastern Railway.) at a loss to keep the
order, [but we said that this system is only suitable for
industry ] we did this in relation to coal to help development of coal
exports. [our industry, we can take such measures] but
can we propose this measure for bread? No. It means ruining yourself
hopelessly. The point is not that we will pay a certain amount from the
treasury, but maintaining and securing such a high level of prices for bread
inside the country means strengthening the commodity shortage, and the
consolidation of the commodity shortage is consolidating the process of price
increases, wage increases, etc. ... [Unfortunately, I cannot
procrastinate and talk about the activities that we will have to carry out
during this year, I do not dare to claim that I can offer any program developed
to the end.] I I think that one thing should be clear: with regard to
the prices of grain and other agricultural products, we will have to take an
absolutely firm line in the sense of the need to lower the market level of
prices. We must speak out completely openly on this issue both on behalf
of the Soviet and on behalf of the Party organs, because high prices are
largely supported by the spontaneous speculation of the peasantry, which is
holding back grain in the hope of higher prices. They are holding back the
grain of the farms that do not need to sell it immediately. The easier it
is for us to get it, the less you support the illusion that high prices for
bread will be provided in April or May. The more decisive you are and the
harder you take the line, the easier it will be. Secondly, I think [If
we now took the path that we expose such a plan of blanks that is as close as
possible to the old plan, etc., it would be the best. But nothing can be
done, you need to put up a small plan.] The main thing is not how much
grain we procure; the main thing is to lower the prices of grain. The
amount of bread required for current consumption has been provided for us even
under the present unfavorable conditions. But you have seen very well how,
when we put forward a huge plan, what happens, how a race begins between grain
procurers, how fierce competition between procurers develops on this basis, and
how prices start to jump. The lowering of the plan is the beginning of
reducing this ridiculous competition. A reduction in this competition is
the beginning of a decline in prices. We must absolutely condemn, finally
reject those procurement methods that have been proposed and are being carried
out this year. These methods of making bread have led to a very difficult
situation for us. There can be no dictatorship of the trade plan, no
return to the NKProd policy, you cannot make a firm plan regardless of
what the market situation is. We found ourselves in the current difficult
situation because we drew up a firm plan, forced the State Bank in an unacceptable,
from the point of view of a correct credit and currency policy, to throw on the
market tens of millions of extra rubles for grain procurement, had colossal
competition from our grain procurement authorities. All these
circumstances have led to the fact that we have lost control over grain
prices. After all this, we have the most difficult situation from which we
must get out, in particular, with regard to grain procurements, by a decisive
rejection of the method of a firm plan. We need to provide ourselves with
the ability to maneuver. I think that this is, should be, not about
defects in the grain procurement campaign, but about what we owe for ourselves,
given the minimum amount of reserves, [But this is already adjacent to
other questions, so I will end here.]
Chairman. Are
there any people willing to speak on this issue?
Krasin. I
asked to speak, but, unfortunately, I was not present at the lectures.
Rykov. We
agreed that we would hear the question of the grain market, the grain
procurement campaign and additional information about the connection with the
foreign market, and that we would discuss both issues separately: how, how much
and where, under what conditions grain was procured, and after that we would
discuss the issue of imported -export plan and settlement balances.
Stalin * (*
The stenographer's note in the transcript is: "T. Stalin spoke very
quietly, spoke to the other side of the stenographer and walked all the time,
why almost nothing was heard."). There are two
groups of critical issues here, namely, we need to discuss the issue of
procurement and then the issue of the export-import-currency plan. These
are very complex and very important questions. If we discuss these
questions thoroughly, then [the first question will take us an
hour and a half] it will not be possible to exhaust them at one
meeting. I think, therefore, that we should focus our attention on one, on
the first issue, [I think that we should discuss the first group
of issues.] And postpone the discussion of another issue to the
next meeting.
If we accept this order
of discussion, then let me take the floor on the first question.
[ Kamenev. Yes.]
Chairman. Comrade Stalin
has the floor.
Stalin * (*
In the transcript with the copyright correction, the text of IV Stalin's speech
was amended, probably, by A.N. Poskrebyshev. The text of the speech with the
copyright correction was preserved in Stalin's personal fund. (RGASPI. F. 558,
Op. 11. D. 1105. L. 69-76.)). Listening to Comrade
Sheinman's report or reading Krasin's messages ,
one might get the impression that we have a great confusion with the prices of
bread and a great confusion for agricultural products. Here we have a big
jump, a big rise in prices for these products (hereinafter the
stenographer's remark: the whole phrase was not heard .) Asked
to go in this question] Vneshtorg or Comrade Kamenev, you can get the
impression that we are present under the action of geological factors that do
not depend on our will. It turns out that this is not about the shortcomings
of our bodies, but about geological layers that are outside our power and will,
outside the power of these bodies. The rise in the price of bread, the
reduction in procurements, etc. — all this, it turns out, is a field of
geology, not economic regulation. This is, of course, not
true. Therefore, I will turn to the question of those factors in the
action of which we participate and on the course of which we can, one way or
another, influence, influence.
I think that our
mistakes or our miscalculations in this area, in the area of blanks,
manifested themselves along three lines.
The first line is that
our export plan was too inflated, and in this regard, our procurement plan for
January 1, for the first quarter - this plan was also excessively inflated. Draw
up a plan so that we can 70% of 780 million poods. preparations for the
year, 70% of this plan to finish in the I quarter, i.e. by January 1926,
this means unreasonably inflating our possibilities and not reckoning with
difficulties. The plan was taken too high: to try 70% of the annual plan
of 780 million poods, to prepare for the first quarter - this means
creating all the preconditions for the inflation of bread prices for this
quarter. Accordingly, a plan for procurement work and sales abroad was
built, i.e. also exaggerated and bloated. What is the situation
here? And such that the peasant was completely crazy when they began to
press on him with the demand for an unreasonably large amount of bread, he
took it all into account and began to break down, broke high
prices. Thanks to this, the prices for bread began to rise, these prices
began to jump up. A situation arose that some procurement bodies began to
run in front of each other, raise the prices of bread in order to seize more
grain and justify the sales already made. [There are too many sales,
and the plan is too hyped. The existing situation, the structure of the
peasant economy, etc., were not taken into account. Made up a bloated
plan. This exaggerated procurement plan - to collect 70% in the first
quarter - led to the fact that competition between
state procurers was revealed and prices jumped terribly. This is perfectly
clear. This is the first line of our shortcomings, which led to an
exorbitant inflation of prices for agricultural products.] As a
result, prices jumped so high that it became unprofitable to work for exporting
grain, procurements decreased, and the cities were threatened with lack of
grain. And what about a united front of procurers? He was
gone. It was replaced by covert and overt competition between them.
The second line of
shortcomings. There was no maneuvering in the regions by the procurement
organizations and by the center, which was in charge of this
campaign. They threw all the means and the apparatus into two regions -
the North Caucasus and Ukraine, forgetting about the Volga region and
Siberia. I understand that it is easier to deal with the regions adjacent
to the Black Sea, but forgetting completely about two large regions, the Volga
region and Siberia - this could not be done. It was necessary to throw
funds there, it was necessary to maneuver. Since you worked in two regions
- in the North Caucasus and Ukraine, you definitely should have done something
in relation to the Volga region and Siberia, where prices were
lower. There was no such maneuvering in the regions. This also
increased the severity of our pressure on the North Caucasus and Ukraine, and
this overload led to an even greater increase in prices in the Black Sea region.
The third line of our
shortcomings, which also led to price inflation, is that prices in the domestic
and foreign markets, and hence the interests of the foreign and domestic
markets, were not coordinated. Vneshtorg tried to export grain with might and
main, regardless of the consequences on the domestic market. The
intensified export of agricultural products led to price inflation on the
domestic market. Oil, for example, is more expensive here than
abroad. Vneshtorg was cut off [from domestic trade. The
fact that NK Vneshtorg pulled its own way and spat on the domestic market led
to the fact that prices inside inflated and export opportunities were reduced,
which caused the Vneshtorg Commissar to suffer ] from
Vnutriorg, exports from the domestic market. As a result, both the interests
of Vneshtorg and the interests of Vneshtorg suffered.
These are, in my
impression, the three main lines of shortcomings along which our work on
procurements proceeded and which led to the fact that prices jumped high, while
procurements and exports decreased.
What to do? We
must get rid of these shortcomings. It is necessary to draw up a real, not
a bloated plan of procurement, corresponding to our capabilities, and take all
measures to force the peasant to throw bread on the market. I heard out of
my ears that a number of events have been scheduled by the service station that
can force a man to throw bread on the market. It is necessary [to
move the vodka to the peasant so that he can spend more money, to take bread to
the market, to get money for vodka. Move the time frame for obtaining
agricultural. the tax is closer to press on the peasant, then to collect
the tax, etc. All these events and a number of other events, which I will
not dwell on, because I am not well informed, should force the guy to throw the
bread into the market. But the most important thing is that you need to
get rid of shortcomings along three lines] to discuss these measures
and, upon approval, to carry out, it does not matter whether it is a question
of the timing of collection of the agricultural tax, or of the collection of
insurance premiums and contributions for the semester. It is necessary to
connect the internal and external markets, Vneshtorg and Vnutriorg, stronger,
so that the price policy on the domestic market does not overturn the interests
of exports and vice versa, so that measures are found that, without inflating
foam inside, would not undermine the possibility of developing
exports. Then, it is time to establish a united front of procurers for our
regulatory bodies, to keep a course firmly on the destruction of competition
between grain procurers. [ A number of procurement workers argue
that if we do everything for this (further ...) resolution, we should pay
attention to this. Obviously, we had some kind of organic
defects. Then maneuvering through the areas.] Finally, it is time to
take measures against the bacchanalia of raising retail prices for manufactory
by our trading bodies and cooperatives.
Here's everything I
caught and what I can offer.
Then, a particular
question about Comrade Sokolnikov, about the fact that in our country the
agricultural tax is not an income tax and that therefore the burden of
agricultural the tax fell mainly on the poor. I think that Comrade
Sokolnikov is not accurate here, or rather, wrong. First, there is a
Politburo decree that the lower strata of the peasantry are completely exempt
from tax 13 . There is a resolution on this not only on the
party line, but also on the Soviet line. If this is not done, then it is
not the center that is to blame, but the practice of the NKF bodies. I
think this practice should be tailored to our policies. The other day I
handed out to members of the Politburo some materials about how the NKFin of
the RSFSR, Comrade Milyutin, quite rightly decided to exempt from petty
agricultural fees. tax on small peasants, from fees [above] below
the ruble, and how Comrade Sokolnikov later canceled this correct
decision. Why did he overturn this right decision, taking into account the
interests of the poor? The Central Committee has a protest from 15
provincial committees demanding the abolition of these petty fees, amounting to
only about 300 thousand rubles and not even covering the costs of their
collection. Comrade Sokolnikov, since he spoke about the poor peasants,
should know that [ it is not the Politburo, which made such a decision,
and not the Soviet bodies that followed this line, but the NKFin, which
introduced a practice that does not correspond to the established policy, is to
blame for this ] the tax policy of the center takes into account the
interests of the poor. And if this policy is not always carried out, then
the practice of the NKFin bodies is to blame, which does not always correspond
to the established policy. [I would like to note one more side of the
matter, this side of the matter rests on the report of Comrade Sokolnikov
and concerns Comrade. Krasin. Quite correctly, that there are no
plans - neither procurement nor export should be drawn
up without strict consideration of our export-import balance. It is often
said that the business is going great, the export one is billion and so
on. But we must take into account ... First, as exports expand, we become
more vulnerable ... 200 million in flax, we can delay fluctuations for 2-3
months, and then all our plans will fly upside down. That is why I think
that no procurement, export plan can be considered realistic, given our methods
of trade. The more export and import works, the more vulnerable we
become. I also know that it is necessary to take into account the fact
that our last year's balance was passive. The balance must be cost
effective. It didn't work, we imported too much bread. It is in this
area that we must take a course towards absolute rigor, otherwise
Comrade Sokolnikov is right when he says that the currency can jump down,
and this is a big danger, because we are not capitalists, but uniting
states. If a financial crisis begins, it is not only a financial crisis,
if it is a commercial crisis, it is not only a commercial crisis, if an
industrial crisis is again not so simple. Here we are not dealing with a
private trader, but with the government. The trade, financial crisis is a
general crisis. Absolute care, flexibility, the proportionality of those
parts of the plan with the general plan is absolutely necessary. Here we
are not dealing with a private trader, but with the government. The trade,
financial crisis is a general crisis. Absolute care, flexibility, the
proportionality of those parts of the plan with the general plan is absolutely
necessary. Here we are not dealing with a private trader, but with the
government. The trade, financial crisis is a general crisis. Absolute
care, flexibility, the proportionality of those parts of the plan with the
general plan is absolutely necessary..]
Two more
comments. We often say that export-import is increasing, and we are doing
great in this respect. This is not entirely true. It must be borne in
mind that the more we export, the more we become dependent on foreign
capitalists, the more vulnerable our economy becomes to attacks from
outside. It is enough, for example, for 100 or 200 million to boycott us
the export of, say, timber, flax, grain - and this is easy for them to do - for
our economic plans to become unusable and require their revision. Therefore,
we need special flexibility and discretion in foreign trade, and we must always
reserve ourselves a significant reserve to insure ourselves against
surprises. This disadvantage in our growing exports must always be in
front of our eyes.
The second point
concerns our trade balance. By the decision of the XIII Party Congress, we
had to have for 1924-1925. trade surplus 14 . In fact, we
ended up with a passive balance, which could not but affect negatively our
settlement balance and the fate of our chervonets. We were forced to
import a lot of grain due to crop failure, and the balance turned out to be
passive. But not only this explains the passive balance. Our
regulators had a miscalculation here. Now we have a harvest, and we must,
we must, in view of this, set a course for an active balance. We must
correct the miscalculation. Otherwise, we risk a financial crisis. In
this area, our regulators must set a course for absolute rigor, otherwise the
currency could jump down and we face great danger.
This circumstance must
also be taken into account by our regulators if they want to make plans
correctly.
Chairman. Comrade
has the floor. Krasin.
Krasin. Two
words about the People's Commissariat for Foreign Trade: if you do not trust,
they beat you, if you turn over, they beat you. If you sell little of
goods abroad and export surpluses remain in ports, unsold, you are scolded for
keeping unsold goods if you sell ahead, as, for example, this year we sold
wheat and a number of crops, they say you are pursuing a risky policy
... I note that NKVT made all purchases and sales under direct pressure
from higher authorities, in particular, the STO and the Politburo demanded
sales from us due to currency difficulties. I, in particular, was against
the conclusion of a barley agreement with Dreyfus 15 , because I
considered it unprofitable. We were forced to do it because we needed
money at the time.
Voice. Have
you been on the commission?
Krasin. I
was not a member of the commission. I've been abroad 16 . Comrade Frumkin
was here, and on his part statements were made four times during August and
September 17 : he objected to the accepted grain export plan. In
October I'll have three times raised the question of the revision of the export
plan to decrease, and also the reduction of foreign exchange earnings, which
are expected of us 18 . They tell us: we won't give you bread,
because procurement is unacceptable and may lead to higher prices, but
still give the currency completely, because it was decided in August.
Voice. This
is not true.
Krasin. First
they demanded 150 million, then they reduced it to 115 million. Under extreme
stress, we could have given 60 million in the first quarter, but despite all
our arguments, we were assigned 75 million. I would suggest that Comrade
Stalin's proposal be fixed. The export program really needs to be revised,
it is necessary to revise both the program and foreign exchange
earnings. I have the impression that in the area of export we have far
from used everything we could. Not used due to the definitely defeatist
line, which is being conducted in this area by NKVnutorg. It boils down to
the fact that not only can I not export, but that I simply do not want to export. Narkomvnutorg
simply neglects export.
We are told: let
NKVneshtorg get the money as it wants. Others say: we will get a
loan. What does a loan mean? Even under good conditions, we have to
pay after a certain number of months. Our main difficulty is that the
import plan for 1 billion is already a reality, we have begun to implement
it. If you say that the export business is hopeless, I propose to discuss
how you mean to pay for the import plan. Perhaps Comrade Sokolnikov has
such a purse that can withstand?
Voice. Only
a reduction in the import plan.
Krasin. Yes,
then hurry up to reduce imports, because purchases are already
underway. Once you gave us the import program, we execute it extremely
quickly, and every day of delay leads to the fact that we issue promissory
notes worth millions of rubles, which will need to be paid. The revision
of the export and foreign exchange plan, as well as the import plan, must be
put on full scale and in all seriousness. Meanwhile, what do we
get? It turns out that our procurement program at each meeting of the
Bread Committee 19 cut further and further, while foreign exchange
requirements for Vneshtorg remain unchanged. The procurement figure, put
forward for November, was 86 million poods. At a meeting of NKVnutorg, it
was decided to lower this figure to 82 million poods, but after a brief
exchange of views, the Bread Committee decided to reduce this figure and reduce
the procurement plan in November to 70 million poods. From 86 million
poods. at one meeting, they were first reduced to 82, and then immediately
to 70 million poods. [ It turns out that we are going further with
cuts in terms of exports, and thus, in terms of the department of exports and
its execution, we are dealing with a sort of happy socialist country, which
itself dominates its consumption and satisfies 1/6 of the export.] We are
cutting exports with might and main, as if the highest policy of foreign trade
is to reduce them to zero. I have here a table of the distribution of
procurements in the first quarter by domestic consumption and by export
concentration. It turns out that wheat for domestic consumption in
percentage terms is fulfilled against the plan by 131%, rye - 106%, barley -
90%, other crops - 70%, on average - 105%. Thus, the consumption plan has
been fulfilled in excess. As for the preparations for export, wheat is
fulfilled - 75%, rye - 79%, barley - 86%, other crops - 50%, on average only
75%. This means that you have for export only 1/3 of procurement wheat,
1/6 of rye, 1/6 of barley and 1/3 of other crops. Since we have payments
for old orders and a large import plan, our currency situation is
desperate. Here definitely a certain pressure on the People's
Commissariat for Foreign Trade is necessary along the line so that those export
opportunities, those export crops, the export of which is not associated with
any catastrophe in the domestic market, in order for them to be exported, it is
necessary to plug this hole, this gaping abyss before us. The reproach
made by Comrade Stalin, that we inflated the price of the domestic market
by our sale abroad, is wrong. The fact that[I] myself, Comrade
Stalin pointed out that domestic prices are higher than overseas, shows that
the rise in prices is the result of ugly speculation and stupid price policy,
which we conducted incorrectly, and not at all the result of our overseas
sales.
Stalin. There
is no link between foreign and domestic trade.
Krasin. The
linking of foreign trade is given to you by the prices of the world market,
either you sell at these prices or not, that's the whole linkage. Order us
to detain the bread in our ports - we will, it will be much easier than looking
for consumers.
Pyatakov. Do
you think that we do not influence the prices of the external market? You
are wrong.
Krasin. We
influence by lowering prices. The very fact that we are entering the
foreign market lowers the price of bread. NKVnutorg is pursuing some kind
of incomprehensible policy of increasing national consumption, i.e., in other
words, a policy of driving grain for manure. Do we need this
policy? I think we need to twist the other way.
Stalin. How
to screw up if the price of bread has jumped and you have nothing to export?
Rykov. From
the discussion of the questions raised here, I got the impression that now the
possibility of the development of elements of the crisis in our economy is not
excluded. These elements boil down, first, to the real threat of
inflation; secondly, to a possible bankruptcy in relation to payments on
foreign obligations (Comrade Krasin said at the last Politburo meeting that we
must pay for orders, but we have no currency) 20 and, finally,
thirdly, to the question of scissors and the danger of their spread. It is
rather difficult to discuss in isolation the issue of grain procurement policy,
since it is part of the general question of how to avoid a crisis that could
erupt if such prices for bread are kept, how to avoid new scissors for us, how
to dodge the impending bankruptcy of foreign payments ... Here are the
highlights. As for the causes of this crisis, in my opinion, Comrade
Stalin is not quite right that the main mistake was in the exaggerated plans
for the autumn preparations. It should not be forgotten that in the past,
most of the bread supply fell in the fall. This year, as a result of a
good harvest, a lot of bread should have appeared on the market, but this did
not work out for us. It did not work out because, in fact, for the first
time a peasant "freely" enters into economic contact with the
city, almost without any administrative and tax pressure. It is more
profitable to procure grain in the fall for two reasons: from the point of view
of selling grain abroad and from the point of view that the peasants themselves
can consume a significant amount of this grain before spring. Therefore,
the very desire to procure more grain in the fall was absolutely
correct. The mistake was made in the fact that they refinanced, refinanced
the grain procurers. When prices began to rise rapidly, it was necessary
to turn back as soon as possible: it was necessary to reduce funding, reduce
the number of banknotes in peasant circulation, and reduce grain
procurements. The fact that we were late for a month or two is extremely
dangerous and entailed a number of adverse consequences. I don't know how
much was thrown away It is more profitable to procure grain in the fall
for two reasons: from the point of view of selling grain abroad and from the
point of view that the peasants themselves can consume a significant amount of
this grain before spring it was necessary to reduce funding, reduce the
number of banknotes in peasant circulation, and reduce grain
procurements. The fact that we were late for a month or two is extremely
dangerous and entailed a number of adverse consequences. I don't know how
much was thrown away [how many tens or hundreds of millions] of excess
money, but there is no doubt that if this circumstance had been taken into
account in advance, we would not now face the danger of inflation. Now it
seems perfectly clear. What Comrade Krasin is talking about came to light
with complete clarity. [Of course, he is not responsible for our
domestic prices from the point of view of the state, which has 2 million
turnover abroad, that such a situation needs to be created if we want to make
this turnover so that external prices put pressure on our domestic ones . ] However,
he does not answer with what measures to ensure consistency between internal
and external prices. But there is no such correspondence: Comrade Sheinman
is sitting in one room, Comrade Krasin is in the other, and Comrade Sheinman
buys butter for 30 rubles, and Comrade Krasin sells for 28 rubles. It is
necessary that this does not happen. Can we establish such a position that
internal prices match external ones? We would better establish this if our
procurement apparatus were to a greater extent connected with abroad. The
disorganization of our internal market is the greatest. Regardless of the
means used in this regard, what has been done during this time in a number of
cases, in my opinion, could have been done
differently. Comrade Scheinman proposes to essentially restore the
limits. I asked the question, is this the old system of limits or
not? These limits are unknown to anyone. Today T. Sheinman
explained that these are the same old limit prices, only more firm, that is the
difference. But it is rather unpleasant to deal with a peasant on the line
of limits. The current ideology of Comrade Sheinman's opinion that
economic measures are obligatory in relation to the peasant, but not obligatory
in relation to the grain procurement authorities, is untenable. Our trusts
and syndicates cannot be deprived of all initiative in the sphere of circulation
if we do not want to introduce radical changes in the existing
system. Your proposal boils down to the fact that methods of economic
influence have led nowhere and cannot lead to anything, it is necessary to
apply methods of administrative pressure. You say that you will not put
administrative pressure on the peasant directly. But it's pretty obvious[When
I come to the store and buy, and the “administration” is around me, this does
not work favorably on me ... There is no distinction. The fact that we
cannot issue an order to the peasant “sell that much bread”, we can only give
an order to the grain procurers. We have to take the peasant
administratively . ]
Of course, there is no
need in principle to abandon administrative measures. Now, perhaps, we
could not achieve the desired result by other measures. These measures
could bring results if they were started a month or two earlier. Has there
been any social and political agitation for the implementation of the economic
plan in connection with the harvest? She wasn't there. Until now, she
has not been explained, no one knows almost nothing about her. If the
question is really that we have started inflation, that we are on the eve of a
crisis abroad, then it is necessary from the Vnutriorg and the government to
give a program of basic measures and organize all possible forces on their
implementation. What is the situation with the domestic market
now? You will set, for example, such and such a price for bread, and the
Kazan Council of People's Commissars 21 declares that he will not do
so. T. Mikoyan and Comrade Eismont 22 are imposed on each
pood of grain goods for 3 kopecks. Comrade Lashevich 23 declared
that he would impose oil, furs, etc. The Kyrgyz come and declare that they
will impose on every head, skin, tail and horns. You say that the economic
bodies are clerks and that administrative pressure can be put on them. You
press so hard that all plans are thwarted. What conclusions should be
drawn from this? The conclusion is that our domestic market is now not
organized to any extent. There were no cases of complaints about
violations or non-compliance with directives, but, nevertheless, everywhere and
everywhere they declare that our internal market is completely
disorganized. We have such a situation that whole areas split off in
relation to the policy of regulation of the internal market, declaring
"their" policy. Here we have some kind of "feudalism of
places." Mikoyan, for example, has imposed 3 kopecks since
August. on a pood presented for the transportation of
bread. September 13, at the request of Comrade. Kamenev said that
they have been collecting these fees for a month and a half. Railways
accept receipts from any grain collector that this tax has been paid, and
provide the purchaser only in this case with the required wagons. I cite
this as an example of the complete disorganization of the domestic
market. It is necessary to take the most decisive measures, otherwise the
market will be taken away completely and entirely.
I would gladly welcome
the decision that is proposed here regarding the revision of the entire export
program if it were said here what will happen with the "scissors",
with a shortage of goods, which is completely ignored. [Product hunger
will be the predominant economic phenomenon for a number of years.] The
issue of the export-import plan is largely related to the resolution of this
issue. The peasant has significant surpluses, and if we want to get
something from the peasant, then we must give him something. If a peasant
has a billion surplus, we must oppose a certain amount of goods against this
billion. The opposition is not a billion, but much less - hence a
significant part of the difficulties this year. Probably, it will be the
same next year, with the difference that the man will have surplus not a
billion, but one and a half billion. To get bread from there, you need to
give goods there, and if you give nothing but money, this is called
inflation. The fight against inflation in case of a shortage of goods
should be that behind the money there should be some amount of goods that can
be obtained for this money, since we cannot give the goods, we must reduce
the amount of money and lower prices in other ways. In this respect, I
have not received any definite answer here. I ask you to answer me in my
closing remarks.
Kamenev. If
we take seriously what Aleksey Ivanovich says about the crisis and feudal
complications, then one can really imagine that God knows what is going on
here. But, in my opinion, two things need to be distinguished. From
the very beginning of autumn I was reproached for painting gloomy
perspectives. I think that it was necessary to point out the difficulties
that lay ahead, but here I see that I am much more an optimist than Comrade
Rykov, because the crisis in the country, which Aleksey Ivanovich is talking
about, is one thing, the divergence of our plans is another. with what appears
in reality. These are two different things. The discrepancy between
our plans and what we can do is very large, but we must not forget that we have
now bought 70 percent more bread last year, and, despite the fact that we have
less export than we expected, it is also much more than last year. It
cannot be said on this basis that we have a crisis. This is our
situation. I said at the plenum of the Central Committee24 , that the
man is holding us by the hand, we wanted to take out 70% of the bread by
January 1, and this would be beneficial for us and for the man. The
peasant did not understand this, he did not give us the required amount of
bread, held our hand. But from this it is still impossible to draw the
conclusions that Aleksey Ivanovich makes. The conclusion will be only what
we need and will have to step in our development more slowly. I said at a
meeting of the STO - less often a step! But still, if we wanted to reach
91% of the pre-war level in industry, and reach 80%, we cannot say that we are
in a crisis. It so happened that the little man [out of his
stupidity] did not give us the required amount of bread, but kept it
with him. It seemed to him more profitable to hold back the bread, he does
not know about any Canada, Argentina or America; does not know when they
enter the market, but sees that there is no product and holds back the
bread. As a result of this situation, our plan for the annual deployment
will not be 100% fulfilled, but 80-85%. and Comrade Pyatakov even looks
more optimistic and says that it will be realized by 90 percent. Of course, in
October I do not know what will happen, say, in July. The time frame will
undoubtedly be extended. Regarding the discrepancy between our plan, our
assumptions and what is in reality, I already at the first discussion said
about the Gosplan control figures that these figures are too
optimistic. But they turn out to be optimal if we take our conjectural
calculations, and not the position that was, say, [... Here we see that
the peasant has screwed us up in this respect.] There is a "crisis",
but by no means in the sense that instead of going forward in our development, going
further, we will go back. This is not the case. The peasant held our
hand, and we are forced to move forward not as quickly as we expected. But
we will go forward, and will not go back and will not stand still, so there is
no crisis here.
The present situation
appears to me in the form of a triangle. In one corner there is the
People's Commissariat of Trade, at the top of the NKVneshtorg, which is to be
taken out, and in the third corner of the Supreme Council of the National
Economy, which in exchange for grain exported abroad must receive machines for
industry to increase production and provide the peasantry with
goods. Where is the minimum at this point? The minimum is in grain
procurements. We cannot obtain a sufficient amount of grain, therefore we
cannot export enough grain abroad, and therefore the Supreme Council of the
National Economy cannot obtain the number of machines it needs for its industry
and cannot develop a sufficient output of goods.
At what point did it
become clear that our plan was too optimistic? And is Comrade Rykov right
when he says that this plan should have been broken as quickly as
possible. The plan of procurement, the plan according to which we had to
export 70% before January 1, we set in the month of July. It started raining
in August. Was it necessary then to talk about a significant change in
this plan? Of course, it was impossible to say that, it was impossible to
panic. [And now we can say what October-November will give us? We
cannot tell. We cannot say what is being carried out to what
extent. Here the situation may turn out that if you take what we proposed
in October-November, and then look at what we actually managed to do in
January, then there will be a difference, like from earth to sky.] In
July, we proceeded from the assumption that the bread would tumble in bulk, the
trouble would be that the price of bread would fall below the level and the man
would get angry. The Politburo then said firmly - the average price of 1
ruble. 25 I admit that perhaps it was necessary to abandon this
prospect at the end of August, and not at the beginning of September. But
how it follows that we have lost tens of millions of rubles on this is
completely unclear to me. You shouldn't panic. Look how much bread is
prepared. In the first quarter (July, August, September), 90% of the plan
was prepared. Only three weeks have passed since the second
quarter. In the first quarter, a man corrected us in terms of crops and
gave us barley instead of rye. But the barley had to be bought. I agree
with Comrade Sokolnikov, who said that it is necessary to take the purveyor on
stronger financial reins. It is right. And now, when the Urals and
Siberia are asking for money from us, we do not give them in full, they gave
only 5 million rubles, "for pocket money" for tens of millions of
poods of grain.
Regarding limits and
guideline prices. Comrade Rykov says that he understood that the
guideline price is the limit price. What was the disadvantage of the limit
price? It was bad because it turned into a state price, and the peasant
understood this: the Bolsheviks gave orders for more than 70 kopecks. don't
pay. What is the situation now? We want to procure 600-800 million
poods. We, the buyers of grain, when we enter the peasant market, must
know at what price we want to buy. Collusion needed. The buyer of
bread, counting on the purchase of 500-600 million poods. bread, must know
at what price he will buy. The Politburo said: the price should be about a
ruble. We give a figure that varies from 80 kopecks. up to 1
rub. 15 kopecks. But do you need to have some common price for all
who are under the leadership of Comrade Shainman? When we see that prices
are going up, i.e. Sheinman does not give an order not to buy above
such-and-such a price, but he removes the procurers, reduces demand. He
can do it. There used to be a compulsory price, we refused it. But this
does not mean that we can enter the market on the basis of complete freedom of
procurers. It would be a free market, and we want to carry out state regulation
of the market. We cannot refuse this.
The next question is
about linking Vneshtorg and Vnutriorg. I think that since we will have
such a situation as now, when we are surrounded by capitalists, there will
always be a fight between those who take out and those who care about internal
supplies. This cannot be done otherwise than in the manner of an ordinary
Soviet "fight". The question is where the "fight"
should take place. This happens either in the service station, or in
operational commissions, meetings with me. Comrade Krasin seeks to
export more abroad, while Comrade Sheinman says: until we regulate the domestic
market, until we satisfy the domestic market, we will not supply
abroad. Do you know what numbers are being disputed now? Comrade
Sheinman and I have determined that for the month of November it is necessary
to give 1 million poods for export. wheat, and Comrade Krasin struggles to
give two and a half million poods. Comrade Krasin wants to fulfill
the agreement on the supply of bread to the Greek and Norwegian
governments. We gave up the chartered steamers and forbade chartering from
now on.
Rudzutak. 80
steamers are still in the Black Sea.
Kamenev. Well,
it means that not everyone has yet been driven out. And it was like
this. When I received business from Comrade Tsyurupa, he spoke of the most
difficult question whether we would be able to seize a sufficient number of
steamers at a cheap price for our grain export. The merchant fleet is in
the hands of the capitalists, we chartered these steamers, then we ran aground,
it was impossible to let these steamers go or load them, and now comrade Krasin
was ordered to break off all contracts and pay a forfeit for the
freight. Now we are paying the price for not linking the July plan with
the real policy of the peasants. I think that the competition between
exports and the satisfaction of the domestic market needs to be reinvented.
Rykov. Within
the framework of one person.
Kamenev. I
do not say “within the framework of one person,” but perhaps within the
framework of one collegium.
[Comrade Rykov was
right at the end of his speech.] Why did we
not hurry as quickly as Comrades demanded. Frumkin and Krasin, revise the
procurement plan? Firstly, because in July alone the plan was set at 680
million poods, in August at 780 million poods. In September they say -
give a new figure. [CSO] NKVnutorg today gives a new figure -
680 million poods. It is necessary to revise these new figures, it is
necessary to make the new figures, finally, more or less real. Secondly,
when we say: this and that amount of grain must be procured, thereby we say:
such and such a rate of expansion of industry, such and such a rate of supply
of goods to the peasant market, and such and such rate of inflation
reduction. When they tell me: cut billets, export, cut imports, industry,
I say: let's be more careful, because if today we accept the figure that
Comrade Sheinman is talking about, then we must immediately give Comrade
Pyatakov, etc. Clearing orders are ordered to review all of their production
plans. Therefore, some caution is needed here. [We must
collectively say that the hard figure directive must be given.]
My conclusions,
formulated on the basis of the debate, are as follows (in such a meeting of the
Politburo we cannot enter into separate points, details, we must give a general
directive):
1) “To recognize it is
necessary to revise the annual plan of procurement, export and import in
connection with the new calculation of the gross harvest, possible commodity
surpluses.
2) Approve a decrease
in the export of grain exports, considering it necessary to strengthen other
export items in every possible way, considering that the preservation of grain
exports within the range of 300-350 million poods. and its profitability
remains. "
We've cut it now by 50%
for this quarter. We need to revise our annual plan and approve a 50% cut
this quarter. We rely too much on bread. They believed that we would
plug all the holes with bread. At the same time, I consider it wrong if,
under the influence of this circumstance, we forget to think about the export
of grain, about 42% of our export, then we will slaughter the entire industry. You
shouldn't go so far. It must be added that maintaining the export of grain
in the range of 300-350 million poods. remains, and exports should be
cost-effective. Of course, if we have bread only in the month of May, we
will take it in May. But now we cannot admit defeatist sentiments in the
matter of exports, since there is a tendency towards this, then Comrade
Frumkin, Comrade Krasin, and Comrade Pyatakov are right against this tendency.
3) "To recognize
the correct and absolutely necessary measures to reduce prices to the
directive, proceeding from the future to the regulation of the internal market,
primarily from prices acceptable for the internal market."
A party directive is
needed here. You will have to argue a little with the peasant. [The
directive prices, which were last year, are no longer a measure.] If
we do not reach the directive prices, then we need to develop a campaign so
that every worker clearly knows that the fate of the further expansion of the
industry is whether we are a peasant with bread squeeze, or he will squeeze us
in price. The reduction of prices to the directive ones also proceeds from
the interests of the domestic market, and we must proceed from prices that are
acceptable for the domestic market. They say that we put world prices at
the forefront and reckon too much with world prices. Why the hell is it
considered when already now actually the prices of billets give the export is
not profitable. We reckon with world prices in paper, but this is not the
case on the market. We are going to the edge of profitability.
4) “The inevitable
reduction in imports should be made in such a way as to affect the import of
raw materials and equipment for industry and agricultural products as little as
possible. The plans for the expansion of industry should be adjusted in
accordance with the revealed reduction in imports ”.
5) “To approve the
policy of firm regulation of imports of manufactured goods, setting as the main
task, on the one hand, the burden of cooperation as the main conductor of
manufactured goods, on the other hand, a broad fight against the discrepancy
between wholesale and retail prices and the growing role of private capital on
the basis of a commodity shortage. To oblige the Supreme Council of the
National Economy and the cooperation to include in the general contracts a
clause on a certain cape for the goods transported by it. "
6) “Considering the
possibility of inflation as the biggest danger, instruct the Soviets, when
considering credit and financial plans, to take all necessary measures to
prevent inflation.”
How to do it? I
see two active directives for this moment. The first is to press the guy
to give him bread, and the second is to cut the difference between the wholesale
and retail prices.
Voice. How
to click on a guy?
Kamenev. How
to get a man to throw out this bread? What recipes can there be?
Tomsk. This
is clear.
Kamenev. No,
Comrade Tomsky is mistaken. It's not that simple.
Voice. Ask
Comrade Tomsky to clarify.
Kamenev. Vodka
needs to be promoted to the village, but it goes there poorly. 75% of the
issue was spent on drink in Moscow. The tax deadlines cannot be moved, we
swore at all the congresses of the Soviets that there would be no travel, since
one third had to be paid by the first of November. As for insurance
premiums, we took measures, gave strict instructions to take as much as
possible.
Voice. It
is not enough to take, you need to know from whom.
Kamenev. [Well,
that's none of my business.] Regarding retail prices. How
to cut off monstrous retail capes? Cooperation? But she makes a
fortune herself. Yesterday I was told that Comrade Ter, the deputy of
Comrade Khinchuk, at the plenum of the representatives of the Central Union of
the Union said directly: how can we not cash in on goods a little, we must use
the conjuncture! Comrade Pyatakov should not be very happy, because
each of your trustees also thinks how to make money.
Pyatakov. It
has fixed prices, the fact of the matter is that we regulate trusts.
Kamenev. Do
you regulate syndicates, do you regulate retail trade? Comrade Khinchuk
also tells us that he regulates cooperation.
Sokolnikov. Trusts
make money too.
Kamenev. [ The
method of struggle indicated by Comrade Dzerzhinsky is correct .] We
obliged the industry to conclude a general agreement with the cooperatives,
according to which 70% of manufactory necessarily goes through cooperation, but
in this general agreement we did not envisage including the following clause:
if you receive 70% manufactory, then you have to sell it to a peasant with a
cape of 20-25%, as it was before the war. It is necessary to include such
a clause in the contract. And if you don’t sell, then you need some kind
of penalty. Here is a measure that I can propose, apart from party measures,
etc.
We are facing a review
of quarterly plans. It is necessary to give a firm directive, the meaning
of which is such as to hold back inflation at all costs. The Politburo
must say that. If you give us such a directive to reduce prices to directives,
revise the procurement plan and the export and import plan, reduce imports for
industry, but, if possible, not to touch the main line of unfolding and
establish a certain level of retail prices, and order that in the coming
quarter inflation did not work out, then it will come out that there will be no
crisis, there will probably be little inflation, difficulties, of course, will
be, but, in general, we will be able to fulfill our plan.
Chairman. I
give the floor to Comrade Quiring.
Queering. The
question is now clear to everyone: the State Planning Commission miscalculated
the control figures. The proposals that have been announced here generally
indicate a way out. I would like the Politburo to further take a firm
decision on the question of grain procurers. As if it is perfectly clear
that we have too many of them. We took too many grain procurers - 6 or 8
main grain procurers, gave them a lot of money, and they, having large export
orders, began to compete with each other in front of the peasant. The state
was at the mercy of its own apparatus. If we do not raise the question of
reducing the number of grain procurers and do not eliminate competition between
them, then we will not resolve this issue for the future.
Now regarding the
directive prices for bread. It was said here that the directive prices
should be linked to world prices and should break even our exports. I
think that in this form the directive would be one-sided, for you cannot
separate agricultural prices from the prices of manufactured goods, you cannot
separate the foam for grain from the retail prices for flour and baked
bread. If we turn to the relation between the prices for grain, which we
paid to the peasant, with the prices for flour and for baked bread and for
manufactured goods, then there is no correspondence between the jumps in these
prices. During the present grain procurement campaign, when grain prices
rose to 1 ruble. 70 kopecks. for wheat in some areas - now in these
areas they have dropped to 1 ruble. 40 kopecks. How did this affect
the prices of flour and baked bread? No way.
Kamenev. It
is sold at a loss.
Queering. In
all markets, baked bread is sold at these prices.
Kamenev. In
the cities of Leningrad, Moscow, Ivanovo-Voznesensk, it is sold at a loss.
Queering. After
all, private grain procurers procure about half of all wheat. They pay the
peasant more than we pay, and they support domestic prices. That is why I
think that the tough directive, of which Comrade Kamenev spoke, is to bring
prices down to the directive prices, pressing the peasant, risks hanging in the
air. They say that the first is the date of payment of the tax, that it is
necessary to recover from the peasant the debts on loans that are available,
but all this is trifle in relation to the amount of grain that the peasantry
has.
Rykov. Low
prices for manufactory is one of the methods.
Queering. We
must exert pressure on the prices of flour and baked bread, and at the same
time exert a combined pressure towards lowering the retail prices of
manufactured goods. Only under these conditions will we achieve real
results. The peasant now believes that for a pound of bread he should have
a shirt, this is a general formula.
Kamenev. And
the pants?
Queering. Pants
are more expensive. Now, for a pood of bread, he has one meter of calico,
i.e. 1/3 of a shirt, so that the existing bread prices per se, if we take
into account their ratio with the prices of manufactured goods, are not so
high, and the peasant thinks that he is offended, that the city offends
him. To illustrate how we are conducting price reductions -
comrade. Kamenev says that we need to push and achieve that from 1
rub. 40 kopecks. to reach the guideline prices - I want to give a
message about how the price cut was made at the end of September. I have a
message from 5 comrades whom we sent as correspondents of the "Trade and
Industrial Newspaper" 26to grain procurement districts so that they
can check how much the peasant buys goods and, in passing, get acquainted with
the prices of bread. From the Kuban, they report that September 24 was a
historic day for grain procurers: in one day the price of wheat was reduced by
about 30%, and after that procurement stopped. The same is confirmed by a
comrade who was in the Melitopol district, in the Alexandria district in the
Ukraine. There, too, after receiving a directive from here that prices
should be lowered, prices were sharply reduced in one day. This led to
serious discontent among the peasantry. Procurers usually give the peasant
sacks in advance, since there are not enough sacks, and agree with him on the
prices at which they should bring the bread. The next day, the peasants of
the district villages arrive with bags of grain procurers and with an agreed
price, and they are told: no, we are not paying you 1 ruble. 60
kopecks, and 1 rub. 15 kopecks. I have a message about how one head
of the collection point had to flee from the peasants. If we carry out
this reduction in this manner, then there will be nothing but aggravation of
relations with the peasants. I would very much ask Comrade Sheinman to
provide us with data on the movement of grain procurements in the North
Caucasus until approximately September 20 - for the third decade of September
and the first and second ten days of October, in order to check how such a
sharp drop in prices affected the progress of grain procurements. Therefore,
I believe that we will not achieve lower prices for bread by unilateral
administrative or other measures. Therefore, our measures to reduce prices
should go alongside the actual reduction in retail prices for manufactured
goods. I have a message about how one head of the collection point had to
flee from the peasants. If we carry out this reduction in this manner,
then there will be nothing but aggravation of relations with the
peasants. I would very much ask Comrade Sheinman to provide us with data
on the movement of grain procurements in the North Caucasus until approximately
September 20 - for the third decade of September and the first and second ten
days of October, in order to check how such a sharp drop in prices affected the
progress of grain procurements.
Sokolnikov. That
will never take place.
Queering.The
situation is such that the peasants, since we are talking about the well-to-do
peasants of the North Caucasus Territory and Ukraine, can wait until spring, it
is more profitable for them. I must also say that about the jumps in
prices - first increases, then decreases - the peasants say that "it is
our government that is hesitating." The peasants view state procurers
as direct representatives of the state and direct executors of state
directives. The peasants see that in one day prices immediately fell by 40
kopecks. for a pood and see that it was done by the state procurers, and
the state procurers means the state; the peasants say that our state is
vacillating, which means that it is not strong. I say that the situation
is such that a significant part of the peasants are waiting until spring with a
significant amount of their grain, perhaps in the spring prices will rise even
more. But we can't wait. Therefore, simply proposing such a policy
that now we must definitely achieve directive prices without lowering retail
prices for manufactured goods is not good.
Rykov. Why
is he waiting for spring?
Clearing. Because
it assumes that prices will rise further in the spring. If we find
ourselves in such conditions that we will not have any bread and we will have
to buy it at any price, then this will have very undesirable consequences.
Chairman. Comrade
Smirnov has the floor.
Smirnov A.P. It
seems to me that one point should be noted here, where, indeed, there may be
some economic error, but otherwise, in my opinion, it is quite rightly noted
here, we can only talk about some haste, and as a result, some twitching, but
this is not an economic error. An economic error that needs to be fixed is
an exaggerated balance, a harvest balance, which has recently been brought up
to 4700 million. This is the State Planning Committee's figure. I state
that this story must be done away with, because this is not a mistake in haste,
a mistake of a planned nature, but an economic mistake that cannot be corrected
by anything. I subscribe to the highlights presented by
Comrade Kamenev that this is where our mistake lies, and that there are no
ideological reasons. There is a mistake in our conscious will, and
the other part is outside our conscious will. If there are 3900 million,
then you will not make 4700 million. The CSB figure of 4200 million is also
exaggerated. Even if we take it without adjusting for the weather, this
figure is still exaggerated. In this part, it must be firmly decided to
proceed with all the relevant calculations of commodity balances from a figure
that is real.
Kamenev. How
much do you count?
Smirnov. I
have a figure of 3900 million, a surplus of 680 million. The last figure of a
surplus is still 680 million.
Kamenev. For
government purveyors only?
Smirnov.I
am only talking about the planning part, which we regulate, which is in our
hands, both for the regulation of the domestic market and for exports. I
think this part needs to be amended. From the point of view of the
circumstances that were stated, it is quite clear that we were in a hurry,
because we did not want to settle accounts with the peasant. There is also
an ideological reason, it was necessary to reckon with him, but we did not
reckon and wanted to do what seemed to us the most convenient. The reason
is that the implementation plan was deployed too quickly under our
conditions. I will not dwell for a long time, since many comrades have
already sufficiently discussed this topic that under normal conditions of
deployment, such an implementation plan cannot be. I repeat - even under
normal conditions. If we are experiencing a shortage of goods, then these
are already abnormal conditions, the high cost of goods is also an
abnormal condition; there are a number of conditions that will delay this
implementation. This is what you need to think about, weigh, etc. In
the old days this was the case. Not only the product had to be on the
market, but the man would find out what the price of this product
was. I’ll say it on my own, although we only sold oats in the Tver province,
and even then you go to the bazaar and look at the prices not only for your own
goods, but also for other goods. Take a look and go. You think we
still have to wait, although it was difficult to wait, because taxes and all
kinds of payments were on the neck
Sokolnikov. Rent
payment.
Smirnov. I
don’t list - and zemstvo and other payments.
Still, I would have
walked and looked, and now it will go to the market, there is no product there,
and if there is, then the devil knows what the price is. He will think: I
will wait, maybe the prices will be lower. It is impossible to think that
under these conditions he will export his grain. So it was necessary to
draw up a plan softer, so that the peasant could be squeezed, pressed on
him. What are the means of pressure? Here it was correctly established
- the tax is part of the pressure, then the collection of the semester,
etc. But all this goes to the poor part mainly, and not to the
wealthy. Semssuda was issued for 90% to weak farms. We will get
something in this part, and the next push, of course, is the exposure of the
buyers themselves. It was noted in this section - limit prices should have
an effect. This is true, Comrade Kamenev, you have correctly explained
that this is not an administrative order, but this is true only under certain conditions. Here
Comrade Rykov is right. If we do not take the domestic market in hand,
then this will be an order, when a peasant will bring bread and sell it at a
ruble, and next to a private buyer will pay a ten ruble. This will be an
order, and the man will understand. Therefore, it must be added: when
developing the plan, it is necessary to decisively set the task of organizing
its own grain market, so that the People's Commissariat of Foreign Trade on the
domestic grain market could dictate, to some extent, grain prices. Then
your prices, set before the peasant, will not be order prices, for the state
reserves and stocks for regulating the market will put pressure on
him. when developing the plan, it is necessary to decisively set the task
of organizing its own grain market, so that in the domestic grain market the
People's Commissariat of Foreign Trade could dictate, to some extent, grain
prices. Then your prices, set before the peasant, will not be order
prices, for the state reserves and stocks for regulating the market will put
pressure on him. when developing a plan, it is necessary to decisively set
the task of organizing its own grain market, so that the People's Commissariat
of Foreign Trade on the domestic grain market can dictate, to some extent,
grain prices. Then your prices, set before the peasant, will not be order
prices, for the state reserves and stocks for regulating the market will put
pressure on him.
I want to draw your
attention to the following. There is a selective census - the prime cost
of a pound of wheat is 1 ruble. 90 kopecks. This is with the most
significant pressure, with cheap labor, etc. Suppose the prime cost is 1
ruble. 12 kopecks Of course, forcing a peasant to sell for a ruble
is, of course, already a solid pressure towards disadvantage for the
peasant. Therefore, the noted comrade. The pressure on manufactured
goods by queering and others remains evident if we want to really really force
him to go for the prices that are of absolute importance to us. Two words
about the impact on such a frantic rise in prices. Here, I think, the
mistake, apart from haste, was that the procurers gave the peasant a lot of
money. The guy had a lot of money. This must be realized. He
kept this money in his pocket, without losing anything on it. This
circumstance was one of the important mistakes. The reason was that our
procurers fought like dogs for every cart. I have paper, Comrade Molotov
has a copy, this is not what is written in the newspapers, but a fact: three
procurers at the entrance to the village caught the unfortunate peasant and
started a fight among themselves. This is an official piece of paper.
Rudzutak. How
much does he sell bread?
Smirnov. This
is a completely different question, it does not apply here, I sell bread at the
price that the market gives.
It seems to me that
this part should be taken into account as much as possible from the point of
view of financing, so that these dog fights of several procurers over one cart
would be stopped.
Rykov. (Reads
his suggestions) *. (* Proposals by A.I. Rykov have not survived.)
Chairman. The
floor is given by Comrade Stalin.
Stalin **. (**
In the transcript with the author's revision, the text of IV Stalin's speech is
absent. Reconciliation was carried out using a copy of the transcript from the
personal fund of IV Stalin. (F. 558. Op. 11. D. 1105. L. 62-67. ))
I have a few comments.
The first remark
concerns the fact that our procurement plans turned out to be
exaggerated. It cannot be denied that the previous annual plan of 780 million
and the quarterly procurement plan by January 1926 in the amount of 70% of this
amount (780 million) turned out to be unrealistic, exaggerated,
exaggerated. These plans need to be revised and reduced. The
Narkomvnutorg has another plan: 680 million poods. procurement for the
entire financial year and the procurement plan for January 380 million poods. 60%
of the reduced amount of 680 million poods. for the entire financial
year. This plan is more realistic. There was a
miscalculation. This must be admitted. I did not understand Comrade
Rykov. I didn’t mean that the peasant sold less bread in the fall and more
in the spring. This is an anecdote. I'm talking about[that our
procurement plan for the entire financial year is exaggerated. It is
clear. We must reduce the total amount of procurements for the entire
financial year by 100 million poods. If the SRT considers this figure , I
don't know, it is very possible that it will reduce, and from this reduced
amount of the annual rate we can take not 70%, as it was previously projected,
but 60%. We must take into account that he was right here ... What was not
taken into account, that due to the harvest, the peasant had the opportunity to
maneuver, the peasant brings anything to the market, and turns around, waiting
for better days, even if there is a large tax pressure in this year was
not. How we will operate with the figure of 680 million poods, I do not
know, it may very well be that we will have to reduce] that, in view
of the general harvest, the peasant prefers to enter the market with
by-products, such as barley, potatoes, dairy products, small livestock, etc.,
while retaining for the time being more valuable commodities, such as wheat and
rye. The fact is that a man also knows how to maneuver, which must not be
forgotten. And this circumstance was obviously not taken into
account. To think that we can procure 70% of 780 million poods in three
months, in the absence of a big tax press this year, means not knowing the man.
Then the second point
is about inflation. Is there a danger of inflation? Of course
have. This danger comes from two sides: on the one hand - from the inside,
since the prices of agricultural products jump up - and here it is necessary to
take measures to reduce prices: on the other hand, the danger of inflation can
come from the outside if the trade balance is passive. Here, too, it will
obviously be necessary to take measures, to commensurate the minimum of its
import with the minimum of its export and to achieve an excess of export. Otherwise,
the matter may end badly for the gold piece. We should generally pursue a
line on the active balance of our foreign trade, and not on the passive
one. We have a directive, adopted by the Thirteenth Congress on the basis
of the report of the Central Committee of the RCP, on the obligatory active
balance. We cannot ignore this directive, especially now, with a good
harvest.
The third point is
about the crisis. Do we have a crisis? No. We don't have a
crisis yet. Comrade Rykov is an exaggeration.
Rykov. Is
there inflation?
Stalin. There
is certainly a danger of inflation. We do not have real inflation and, I
hope, will not, but there is a danger of inflation, this is a fact. And
the danger of inflation creates the danger of a crisis. The illusion of a
crisis is created when we compare what we have practically achieved with those
exaggerated plans that we had. But this is only an illusion of a
crisis. But we can run into a real crisis if we do not take into account
the danger that leads to inflation, namely, the rise in prices for agricultural
products and a reduction in our exports, the passivity of the trade
balance. Commensurate the size of the import with the size of the export
and thus achieve an active balance,[if we do not carry out these things, then
the danger of a crisis, of course, will be, and moreover, the crisis can begin
with inflation. All the same, in whatever direction it takes, it will beat
the Soviet regime, and not the private capitalist; our state structure is
such that the crisis will strike along the entire front. But there is
certainly an exaggeration] by lowering the prices of bread and
increasing our exports — this is the way in which we can eliminate the danger
of inflation. The dangers should not be exaggerated, but they should not
be glossed over either.
The fourth point is
about “feudalism”. Of course, I do not approve and cannot approve that a
3-kopeck tax has been introduced in the North Caucasus. [I think that
the regional authorities and the republicans will have to decide ... this is a
well-known concrete measure of combining the conclusions of the places with the
conclusions of the center. Without such a combination of the conclusions
of the localities with the conclusions of the center, we will not achieve any
economic upsurge.] In the Urals, they also wanted to introduce a
2-kopeck tax, but we did not allow it. But from a 3-kopeck tax to
"feudalism" is still very far. We do not need a 3-kopeck levy,
but a link between the benefits and initiatives of the center with the benefits
and initiatives of the places. It may very well be that a measure of such
a combination of interests of the center and localities could be the
participation of places in the profits of our procurement bodies. In any
case, without such a combination it will be difficult for us to achieve a
general and powerful economic recovery.
Fifth remark - [since
a man sells, since a man buys a product, it is obvious that a fundamental
linkage in the Vneshtorg bodies is necessary here. It is impossible to do
so that one body for foreign trade goes without looking at the foreign market,
and another body, also infuriated, goes to the other extreme, then there is a
mutual disadvantage. Here we are talking about the fact that inside this
organ there is a bow of dissimilar elements]about the linkage in the work
of Vnutriorg and Vneshtorg. Now Vneshtorg and Vnutorg are pulling in
different, directly opposite directions, because Vneshtorg is exporting with
might and main, regardless of the domestic market. The internal trade does
its own thing, slowing down export. Hence the gap between the domestic and
foreign markets. The results are such that our oil in London is cheaper
than in Moscow. And this discrepancy will continue until we unite
Vneshtorg and Vnutriorg into one whole.
The sixth remark
concerns the question of a united front of procurers. There was no single
front of procurers, Comrade. Sheinman did not show sufficient willpower in
this matter. We were given out by procurers. It is impossible to
establish a united front with the condition that the collectors run up to each
other, if they give the interests of the state, pushing up the price of
bread [... Looking to each other, they are undermining us.] We
should think about whether it is possible to reduce the number and clicker
establish an unconditional united front between them. Further, it is
impossible to wage a decisive struggle to lower the retail prices of goods, for
the lowering of the retail prices of goods is the reverse side of the lowering
of the prices of bread. Can't the state take draconian measures against
the procurers to force them to align themselves in the interests of the state?
The seventh point is
about the agreement with Dreyfus. I cannot pass by in silence Comrade
Krasin's statement. On the issue of Dreyfus, there may have been a
mistake, but let me remind you [... of the next
decision of the Politburo. Whether I was then at the Politburo or not, all
the same, I am responsible for this decision] that the decision
was taken by the Politburo 27 , and the agreement was concluded by a
commission from Comrades. Frumkin (Vneshtorg), Sokolnikov and
Tsyurupa. There may be a mistake here, but this mistake is our common
mistake. The Politburo was then attended by Comrades. Bukharin,
Zinoviev, Stalin, Trotsky, Rykov, Dzerzhinsky, etc. If there was a mistake ...
Kamenev. After
all, not such a big mistake.
Stalin. [May
be. Everyone was then in such a state that some ...] Vneshtorg
was involved in this error.
One final note - what
to do? I think that Comrade Kamenev's proposal and Comrade Rykov's
additional proposal could be accepted basically so that this case be worked out
in a special commission of the Politburo. [Will we be able to create
this commission for only one procurement, or will we have to link this
commission to the issue of exports, imports and the currency plan? I dont
know. If on Thursday we consider the export and currency plan as the first
question, then maybe on Thursday we will be able to create a commission.
Rykov. The
Chinese question comes first.
Stalin. Create
a general commission that will thoroughly resolve this issue.]
Chairman. Our
speakers are listed in the following order: Sheinman, Sokolnikov and
Uglanov. I think that comrades should be allowed to speak. Sokolnikov
and Uglanov, and Sheinman to give the closing
speech. Comrade Sokolnikov has the floor.
Sokolnikov.I
have the following comments on this issue. It seems to me that, first of
all, it is necessary, on the basis of this lesson, to try to verify the
correctness of the methods of calculating the country's grain surplus. We
had a harvest of 4 billion poods. What can be called surplus? I tried
to find out on the basis of what the surpluses are calculated, on the basis of
what consumption rates of the peasant economy. It turned out that our
statistics are based on the old, pre-war consumption rates. This is a
clear mistake. The revolution for the peasant is that he himself eats
better and feeds the horse differently. Therefore, our statistics should
take this thing into account. We really need to remember the basics, which
we forgot about, but which we repeated when we were an opposition
party. Now this is not such a surplus that could be calculated with an
absolutely hungry consumption rate, which existed in tsarist
Russia. We must give our statisticians the task, if they are worth
anything, to begin a real check of the actual norms of peasant consumption, as
they are. This is the first point.
Voice. We
do not know this consumption.
Sokolnikov. These
consumption rates are somewhat dependent on the price level, but it is
important to find a certain minimum, which is undoubtedly different from the
previous minimum. Something you can grope for orientation. I have
already said that I think we will have to go with a reduced procurement and
export program in the next quarter, but what was the mistake that was made in
the previous quarter? It was not only that the plan was too big. If
you draw up a big plan, but give little money to your hands and say: we have a
big plan, here is the money for procurement of 10 million poods; if these
10 million poods. you buy, then we will automatically give you another
10-20 million poods for procurement. etc. - this is a certain way of
a bank loan, which makes it possible to automatically control the actual
implementation of the plan in connection with the actual supply of bread on the
market. The fight on the issue of loans for grain procurement was
desperate in the service station, I voted in the singular, and they decided to
give money to merchants, they did not regret it. I will say frankly: when
I came back from vacation in September and saw the state of affairs, at my own
risk and fear, I ordered the State Bank to stop any release of targeted loans
for grain procurement, to take a course to compress procurements and reduce
prices. A few days later, these proposals were duly authorized. I, at
my own risk and fear, ordered the State Bank to stop any release of targeted
loans for grain procurements, to take a course towards shrinking procurements
and reducing prices. A few days later, these proposals were duly
authorized. I, at my own risk and fear, ordered the State Bank to stop any
release of targeted loans for grain procurements, to take a course towards
shrinking procurements and reducing prices. A few days later, these
proposals were duly authorized.
Rykov. It
should have been done earlier.
Sokolnikov. We
used to take a different path. This error must be taken into
account. This brings us to the question of the entire deployment
methodology, how to go forward: according to the maximum program, in order to
then turn back, or go according to the minimum program and, as soon as we have
reserves, add a step. I think that only the second position will now be
correct. Now we will discuss the budget: should we go for maximum
inflation, or let's go carefully at first, and how the money will be, let's go
ahead. If there was a reserve fund, it is a different matter, but now we
have to go carefully, backing up. Comrade Rykov said that inflation
and depreciation had already begun in our country. I disagree with
that. I remain with my wording: we have a preface to inflation. [Kind
of like a reception room. Introduction. What is it? The fact is
that, like last year, to a certain extent we rolled out money to the market,
but last year the situation was smoother, since the scale was smaller.] We
rolled out 300 million of money to the market in the first quarter. We are
compelled from the side of funds to advance the farm in a known
manner. The bank issued 300 million rubles. on the development of
trade. Where did the inflation risk come from? It arose from the fact
that in the fall the trade turnover did not develop to the extent that it was
expected according to the plan. We have every reason to believe that we
will dissolve this thing within the next 6 months.
Voice. We'll
pump out the money.
Sokolnikov. No,
first of all we will expand our trade. But, of course, if within the next
6 weeks there is no improvement in terms of the ability to confidently respond
to the development of trade, then I will have the honor to offer you to reduce
money circulation.
Voice. Reduce
the budget?
Sokolnikov. Not
to reduce, but to carry out some installments in the execution of the budget
and set aside the money that will come to us from the tax fund.
Kamenev. Tax
money should not be spent, but saved.
Sokolnikov. Our
monthly tax and income receipts are RUB 300 million. We are 300 million
rubles. under the present order we spend. those. put into
circulation. If the commodity turnover does not improve and the state of
monetary circulation deteriorates, I will say: allow us 50 million
rubles. withdraw from circulation until some discharge of the atmosphere
is obtained. This method of influence (and other methods) is still in our
hands, and only if it would be possible to talk about inflation, if it were
knocked out of our hands. If in the coming quarter to issue new hundreds
of millions, as suggested by the Market Council ...
Voice. What
is this Market Council?
Sokolnikov. There
is such a Conjunctural Council under the State Planning Committee, where the
majority of comrades Groman sits, who believes that the way out is to swing
around both in terms of emission and to deploy blanks without calculation.
Voice. Instead
of reverse gear forward.
Sokolnikov. The
minority recognized that there is a danger of inflation, but in the end the
majority, led by Comrade Groman, won. However, the Presidium of the State
Planning Commission did not agree with the opinion of the majority.
We will be faced with the
need to reduce, a very significant reduction in bank emissions over the next
quarter, and there will be a number of difficulties with commercial
institutions, industry, and banks. Here we will have conflicts because
everything is on a different scale, and we must say: be
quiet. Comrade Rykov spoke of the devaluation of the chervonets that
had taken place. I categorically reject such a statement. The
purchasing power of 28 ducats has not yet experienced any significant
change. The dynamics of price movement indicates to us possible dangers
that must be eliminated in advance, because then it will be too late. But
the purchasing power of money is now no less than at the time of the monetary
reform. Gold parity 29the gold piece is not shaken in any way. I
follow this, have a daily black market summary to read.
Rykov. I
am sure that Comrade Sokolnikov can be devalued inside and promoted
abroad.
Sokolnikov. We
have markets where our ten is slightly lower, and in other places by 20-30
kopecks. more expensive. You, Alexey Ivanovich, are luring me into
the distant jungle, and the chairman does not allow me to dwell on
this. We will not talk about this. I must say that on the main
questions of our monetary policy, we must reach an agreement in the Politburo
with complete clarity.
Kamenev. Absolutely
correct.
Sokolnikov. Because,
obviously, the policy that we have been pursuing for several years is not
completely understood and remains my responsibility. They say: what I
want, I do, in fact, of course, this is not so. You, Aleksey Ivanovich,
said back in the summer of 1923 that by letting the Soviet sign sink to the
bottom, then we could ruin the gold piece, and then we would invent something
else.
Comrade Quiring
spoke of the fact that high grain prices are in line with industrial
prices; here you need to put a full stop over the "i". We
took upon ourselves the program of destroying the scissors, bringing industrial
and agricultural prices to the same level. But what does it mean to carry
out this program by authorizing high-level agricultural
workers? prices? This means bringing about inflation. If your
industrial prices are higher than world prices, and if you raise agricultural
prices to the same level, your industrial and agricultural prices will turn out
to be higher than world prices, i.e. the general level of prices is higher
than world prices, and thus the purchasing power of money is lower than the
world one. In this situation, of course, it is impossible to export, and
at the same time import. You will have such a position. The scissors
program, if considered as a program, which must be carried out by raising
agricultural prices to the level of current industrial prices, there is a
program for the disorganization of our entire economy. It's time to fix
the scissors compression program comrade. Trotsky [his point of
view on this issue is incorrect]. We are for the abolition of
the "scissors", but it is not necessary that the "scissors"
be destroyed in such a way as to raise agricultural prices to the level of the
now existing high industrial prices. We must continue and follow through
with lowering industrial prices through lowering agricultural prices. That
is why, comrade. Quiring, your suggestions are helpless, so this issue
cannot be resolved.
I would also like to
emphasize that this year we need to maintain a trade surplus policy at all
costs. Resolution of the XIII Party Congress, which was recalled by Comrade. Stalin
remains in the same force. Everyone understands that the resolution of the
Party Congress on an active trade balance cannot be carried out in a lean
year. But when the year is fruitful, this decree is fully valid, and in
order to change such a decree, it would be necessary to first have an agreement
on loans, long-term loans, etc., but since this is not there, we cannot revise
it, therefore that to revise it in the context of short-term loans means to let
yourself be tied to a thread. I disagree with Comrade Kamenev that it
is necessary to confirm a firm plan for the delivery.
Kamenev. I
said firm import regulation is something else.
Sokolnikov. There
is a struggle between the People's Commissariat of Foreign Trade and the
Supreme Economic Council. The point is that it is very good to regulate
the import, but we need to leave the opportunity for the market to amend our
plans. If this does not happen, then we will have even more blows to the
forehead than we have from the side of firm regulation of planned
purchases. The level of retail prices is largely determined by the nature
of the market, hence the pressure on cooperative prices, etc. Now we have
such a situation that goods are brought to Moscow from the provinces.
Sheinman. Long
live the private shopkeeper.
Sokolnikov. Not
"long live the private shopkeeper," Comrade. Sheinman, this is a
little demagogy, and there is no need for such a policy in the People's
Commissariat of Internal Affairs, which would enable a private trader to
organize unrestrained speculation and which would turn our cooperative and
state bodies into actual allies of speculators.
Chairman. The
floor is given by Comrade Uglanov.
Uglanov. Comrade Sheinman
in his report mentioned some of the activities of the Moscow City Bank, which
are speculative in nature. I must state that this is the first time I hear
about this from Comrade Sheinman. We will try in the near future to check
the activities of the Moscow City Bank and its director, and I will submit the
materials in writing.
Voice. Comrade Uglanov
is to blame for this.
Uglanov. I
do not take this personally, and I think that Comrade Sheinman did not say
this.
Comrade Sheinman
said that I grieve about the Moscow consumer cooperatives. If we sometimes
listened to complaints from Moscow consumer cooperatives regarding pressure,
then only in the part when in Moscow it came to the point that the supply of
white flour was only for one day. We did not sow any panic, only in the
form of personal conversations with comrades. I told Stalin and Kamenev
that the situation here is rather slippery. I did not write any papers
about this. We received assurances from Comrade Sheinman that Moscow would
be provided with bread, and we believe that the question is over. Consumer
cooperatives appealed to the Bureau of the MK, whether it is possible to enter
the Central Committee with a petition to change the policy of procurement
prices. The MK Bureau rejected this.
When I talk about this,
I must add that in Moscow we had rye bread for two months, and white for one
month. Now we have a supply of black bread for 2 weeks, and white for 7
days. We hold on because we know the difficulties the government is in.
The third question is
about speculators in Moscow. Indeed, a lot of speculators have come to
Moscow. This is due to the fact that the general plan for the movement of
goods into the countryside is directed mainly towards the main
grain-procurement regions, therefore the secondary and tertiary agricultural
peasant regions are bare, there are no goods there. In this regard, many
speculators-hucksters have come to Moscow, they grab the goods in pieces, several
meters each, and take them away in bags. If you bless, we can clear Moscow
of speculators a week, and if you authorize, we can set such a crash in Moscow
that we will drive all speculators away. This can be done.
I'll move on to general
questions. I believe that if we look at the situation in the Party and in
the country, we must proceed from the fact that the general rate of rapid
economic development has mobilized the Party from this angle, and everywhere,
in all our economic bodies, provincial and regional, they are making big plans
for fast pace of economic development, etc. And now we still
see; that with this rate of economic development, which has been created
in the country and the party, the situation is somewhat different, as the
statistics indicate. Unlike the past meetings of the Politburo or the
plenum of the Central Committee - there were no such arguments as today - our
entire economic plan, the entire conjuncture and all paths of further
development two weeks after the plenum of the Central Committee were subjected
to a more serious test. That is why the point is not that everything is
very well with us. That's why I think that, when comrade. Kamenev
said that we saw difficulties, then, in my opinion, if we saw these
difficulties, it was necessary to consider them not philosophically, but
realistically. It was necessary to draw up plans, more or less realistic,
which could be carried out. I spoke with Comrade Kamenev and told him
that since last year the question of increasing the program of the metal
industry four times was considered, couldn’t it have been possible this year
not to draw up the programs of the metal industry and other industries in a
finished form, and to come up so that within a year, two times ... In the
past year, the program of the metal industry was revised four times, and even
five times for GOMZ, and this did not work out worse. but really. It
was necessary to draw up plans, more or less realistic, which could be carried
out. I spoke with Comrade Kamenev and told him that since last year
the question of increasing the program of the metal industry four times was
considered, couldn’t it have been possible this year not to draw up the
programs of the metal industry and other industries in a finished form, and to
come up so that within a year, two times ... In the past year, the
program of the metal industry was revised four times, and even five times for
GOMZ, and this did not work out worse.
At all crossroads, they
called and gave promises in the area of pre-war wages and everything and
everyone. I think that although we are conducting a planned socialist
economy, but this is not yet fully achieved, some methods of capitalist
economic management must be applied. One comrade who came from abroad said
that the capitalists were laughing at us: this is a fool, the harvest is good,
so they rang about it everywhere, and now, in connection with this, prices on
the market are falling. Now it is not known who will sell bread on the
European market before us.
I think that in the
future it is necessary to raise the question of establishing statistical
accounting. I have carefully read the minutes of the meeting of the
Council of People's Commissars, at which there was a report on the Central
Statistical Office under the chairmanship of Comrade Rykov. The
representatives of the economic bodies, keeping their own statistics, severely
criticized the work of the CSO. I do not know to what extent this business
has been brought, but that the question of the statistical apparatus and
accounting is acquiring great importance is a fact, this question must be
raised in the near future.
Second
question. Now more than ever before, it is necessary to raise the question
of linking the activities of Party and Soviet bodies. The Party must be
given an orientation in the current economic conditions. The plenum of the
Central Committee did nothing on these issues, since there were no
conclusions. Now only conclusions are drawn from the plenum of the Central
Committee. The decisions that will now be taken should be carried out not
only along the Soviet line, along the line of the provincial executive
committees, but also along the line of the provincial committees. The
Politburo of the Central Committee should send out a detailed letter explaining
the essence of the decisions made and the essence of the country's economic
situation. This will need to be done as best as possible and as soon as
possible.
Chairman. Any
questions?
Rykov. It
has been reported here regarding the pressure on the seed loan
installments. I would like to know if it is correct that the seed loan is
mainly distributed among the peasant poor? Is such a directive in strict
accordance with the decisions of the plenum on aid to the poor 30 ?
Sokolnikov. The
first question is: are grain tax operations being carried out now? Can
Comrade Sheinman give a definite answer to this? Are there regulations
that would change previous assumptions about how to develop these operations?
The second question:
what measures in the area of agricultural credit could be taken, according to
Comrade Sheinman, which would ease the situation, since now under
p. x. car we are given a 3-year loan? Has this issue been
discussed?
Krzhizhanovsky. Comrade Sokolnikov
said that the point of view of the Presidium of the State Planning Commission
and the Market Council was such that the Presidium of the State Planning
Commission unanimously admitted that there is no inflation, but there is a
danger of inflation. The Market Council insisted on issuing 300 million. I
have not heard such a resolution, but its point of view was that the credit
plan was 10 million lower than the plan of the Committee of Banks 31 .
Stalin. If
I’m not mistaken, the decisions or proposals of the Conjunctural Council were
published, and the opinion of the State Planning Committee presidium was also
published?
Krzhizhanovsky. The
Market Council does not publish its decisions. He only publishes in the
"Economic Life" 32 conjunctures, not proposals.
Stalin. It's
all the same.
Chairman. The
floor is given by Comrade Sheinman.
Sheinman * (*
The transcript contains a note from the stenographer: "The beginning is
hard to hear.") . I will first answer the
questions that were asked to me about the Semssuda and others. I do not
know whether Alexey Ivanovich turned to me or to Comrade Smirnov? I
had a peasant and said that they demanded 3 rubles in spring for oats issued to
the peasant of the former Yegoryevsky district, I don't know which province, I
think Moscow. gold for each pood. I have heard complaints that there
is no poor policy regarding the Semssud. Yegoryevsky district is listed as
one of the poor districts.
Rykov. Does
this mean there is no correspondence with the plenum resolution?
Sheinman. I
am not the People's Commissar of Agriculture and I cannot give detailed
information on this part. On the question of Comrade Sokolnikov about
grain-lending operations. They are now being held at a minimum scale and
only in the North-West region, in all other regions they have been suspended.
Voice. According
to newspapers, these operations are continuing in Ukraine.
Sheinman. They
notify us that they are not being held, and it is impossible to rely on
newspaper information.
As far as agricultural machinery
is concerned, we have worked out a question so that next year, in the spring,
we can shorten the loan terms. More sophisticated machines, sent to
wealthy peasants, if you lend for long periods, then focus the payment on the
first term. On the part of collective farms, leave the current
system. In the Soviet Republic, you will often find that kulaks are
fighting under the guise of poor people. Under our policy, we must look
not only at the firm, but also who is sitting under it, but still, the policy
of supporting collective farms must be observed. (In one of the district
committees in Moscow, they pretended to me that I allowed the collection among
employees in favor of the poorest peasants so that their children could go to
school. They said: it is not good to help the peasants by collecting. But our
country is poor, and the peasant economy is poor , and when this economy
suffers a crop failure or the horse dies, the peasant is forced to go with
a bag. We cannot abandon our poor policy.) Comrade. Sokolnikov says
that a kulak is hiding under the name of a collective farm.
Sokolnikov. I
want more money to be paid.
Sheinman. And
I want the poor not to be poor, so that there is no shortage of goods and there
is no question of inflation.
Molotov. It
turns out that you are pursuing a poor policy, and everyone else is not.
Sheinman.I
now turn to the biggest question, Comrade Rykov's question about inflation and
how to avoid this thing. The balance of agriculture in relation to the
city is active. I reported to the STO and the Politburo about this and
said that there were officially published figures for the active balance of 250
million rubles. In fact, it is higher. Under these conditions, there
is no way to get away from what in theory is called inflation. If a man
collects money and deposits it into a savings bank, at least into his savings
bank - a money-box, then we will avoid the harmful effects of
inflation. We are not prepared for this task by holding down prices for
manufactured goods. When some unfortunate 40 million rubles were ordered
in July. to throw them into these areas, we were able to knock them out
only by the end of September, because in the spring there was a mood to sell to
the one who pays better, i.e. private.
I propose to fix that
in the spring we will have a crisis of building materials and glass, because
they gave an order to consider glass as an unplanned product, and a private
trader responded by saying that he already buys glass at a price twice as high,
and if he paid twice as high now, then in the spring it will be 4 times more
expensive. If by this time you have installed the glass industry and there
will be glass, then I will say, you caught him, but still the situation is such
that he catches you.
Voice. It
also happens vice versa.
Sheinman. These
are isolated cases in which the Ilyin merchants 33 could have paid
off , whom Comrade Sokolnikov caught in a dozen and who are all registered
with the GPU, but the peasant judges otherwise, and it is impossible to fool a
wide market. Whoever gives the glass will be the master in this market.
The question of
inflation and our preparation to fight it. The question of strengthening
the currency, improving peasant confidence has not yet been resolved, and only
now can we say that we are getting down to this question. We scold
cooperation, I scold it first. I do not remember which of the comrades,
but to some of those present, I said that it would be bad if the cooperation
continued to move as it does now, only relying on our support, but not being
driven by a stick (I remembered: I said this in the Politburo and Comrade
Stalin). If our directives are violated, what can I do only? Write to
the prosecutor. I wrote to the prosecutor and the NKJust of the republic,
comrade Kurskiy received no answer. Member of the board of the NKJust
of the RSFSR comrade Yakhontov told me that one can only answer for this
by arrest for 3-4 days, because this is not provided for by law.
Rykov. This
is what we all say.
Sheinman. Then
I repeat that it is good if I learned what everyone was talking about. The
peasant economy's demand for goods will grow very quickly, because we educated
the peasant: what a tractor is, what is coal, etc. If the cooperation is
not set up now (it will not stand up itself, but will be set up), then in a year,
in the face of the peasant, private capital will develop, because he knows how
to trade cheaper. This requires more than just economic regulation.
Stalin. What
about draconian measures?
Sheinman. Draconian
measures - and they must be taken. This is what seems to be the root of
the answer to the disagreement when a man sells bread, in autumn or
spring? He sells when it is more profitable for him, and it is more
profitable for the peasant earlier, because he can then buy what he needs, and
in the spring he doubts whether he can get the right product. We have some
inertia in this matter, because no one wants to pay attention to this. It
would be useful for us to see how the teeth of our machine are connected.
Rykov. Soviet
sabotage, or what?
Sheinman. This
is not sabotage, but different. Comrade Sokolnikov reproached: what
kind of People's Commissariat of Foreign Trade are you if you refuse to import
goods in the first quarter? But I am not only the People's Commissariat
for Internal Affairs, I am a member of the Council of People's Commissars, I am
a member of the STO, I am a member of the RCP, and if we have difficulties,
currency difficulties, then I say: it is easier to turn, I refuse to import, I,
Narkomvnutorg, vote against the internal market and say : donate those millions
to hardware. Why? I can explain. I said that in the conditions
under which we find ourselves, to engage in the task of saturating domestic
markets by importing goods to the detriment of an industry based on imported raw
materials and imported equipment is a pursuit of our own shadow. We have
industrial goods in which we experience hunger, for which we only need
equipment, and we have our own raw materials: cement, timber, bricks. I
say: give millions for this thing, and there is nothing
counter-revolutionary and anti-communist in my statement. I voted
correctly when I refused these 20 million rubles. finished goods.
Voice. And
what about rayon?
Sheinman. I
am not a production worker, I told the service station that maybe artificial silk
does not rely on my own raw materials, but I am not a production worker, this
is Comrade Pyatakov’s business, he must come and say what they will be used
for. I will not argue with him, but I look at the issue from the point of
view of the capacity of the domestic market.
On the issue of
refinancing. Let's agree - I ask Comrade. Kuibyshev, because the
Politburo cannot do this so that he investigates the issue of
funding. After all, what was the financial program based on? To
prepare 160 million poods, and we prepared them. What are they scaring us
with? After all, I have no disputes with Comrade Sokolnikov about that,
and I do not demand to give money earlier, and not depending on the progress of
the blanks. Let Comrade Kamenev will testify that there is a fight
with your assistants every Monday because of this. If we asked for another
1 million rubles, then we were told: no, sorry, the plan was written for so
much, not a penny more. Am I setting it right?
Kamenev. Right.
Sokolnikov. In
the fall, we had a disagreement that you do not state.
Sheinman. Everyone
has disagreements, and not always only one side is to
blame. Refinancing? I do not admit my mistake. Here they talked
about what the entire procurement program and the entire financing program were
based on. Today Comrade In the evening Kamenev will see that we are
not saying: give money earlier, and when the bread arrives, give money, that
is, cover the incoming bread. I will leave without comment everything
that Comrade Quiring said and draw attention to one circumstance that I said
about the teeth of our machine. We have become a parliamentary country,
and the parliament is placed not outside, but inside. Outside parliament
is an institution outside the government. We agreed that we were sending
people, each one of our own, to see what was happening on the
ground. Comrade Frumkin sent, Comrade Quiring sent, and Sheinman
sent. Receives Comrade Quiring material, but he doesn't give me
material and says that he needs to use them. The materials say that the
local authorities in the South-East have done this and that. If they did
it in the Armavir region, where prices reached 1 rub. 60 kopecks, then
this is not news for us.[I ] Comrade. Mikoyan said at the
plenum that in some areas they held a demonstration. But is this the
system of Soviet work? If you receive a report on grain procurements, then
you go with this report, as a deputy of the opposition faction, in order to
speak with it in due time. It would be better to send this material to a
place where it can be used. Do not forget that Sheinman is responsible for
the domestic market, no matter what your opinion of it is, you are obliged to
reckon with him and are obliged to give him material, just as I think it is not
useless to turn to Comrade Pyatakov on industrial issues, and I am
applying. Let's establish a minimum of normal relationships.
Kamenev. Nobody
hopes for a maximum of normal relations.
Rykov. Is
this directly related to grain procurement?
Sheinman. Extremely
connected.
Regarding what Comrade
Krasin says. [I know how you are, comrade Krasin, urging
Uglanov. But all the moves to the Politburo, and there we will
meet. I will not lose more than shoulder straps .]
Comrade. Krasin poses as an innocent person: "My business is to
sell." This is the tragedy that Exportkhleb is a department of the
People's Commissariat for Foreign Trade or that organization of the People's
Commissariat for Foreign Trade, which borrows 190 million rubles. 70
million for export bread. This is not even a department of the People's
Commissariat for Foreign Trade, but something, and operations are carried out
regardless of the state of the domestic market: whether the Kuban peasant sells
bread or does not sell - we, they say, do not care, we have a plan, and we must
fulfill it. You can't work like that, it's not work. When we have our
own state farms and state farm landlord grain ...
Molotov. Why
a landlord?
Sheinman. Sorry,
state farm bread. In 1923 we traded the People's Commissariat for Food and
it was so good that in 1924 we sat down. In 1925/26 this cannot be
done. With regard to the merger of the People's Commissariats, nothing
more can be said here against what Comrade Stalin and others have already
said. I will not dwell on this.
With regard to the
analysis given by Comrade Stalin. In my opinion, this analysis is
absolutely correct. I already spoke about this at the plenum. What
does Comrade Stalin's analysis amount to? They sold too much without
considering the situation we have. What was going on? We wrote a plan
for 780 million poods. Right. I said that a plan should be drawn up
in 600 million poods, I said: what are you afraid of, if we manage to procure
more than 600 million poods, our apparatus will still be able to cope with this
larger amount of procurement * (* The transcript contains a litter
stenographers: “Several people speak at once, it is difficult to understand
anything.”).My position in this respect is extremely favorable, voting in
the service station is not recorded, but there are reports in the cases, you
can view them. Comrade Tsyurupa can confirm that my first plan was 600
million poods. for a year. When they urged me on - write a large
amount - I wrote. When the figure of 680 million was proposed, I said if
this figure could be reduced by 50-60 million. But this is not the
point. The bottom line is what the harvest will be, maybe 5 billion poods,
or maybe, on the contrary, less than the figure we have assumed. A peasant
sells his bread not because he wants to sell it, but because he wants to get
the goods he needs in exchange for this bread. The increase in export
abroad led to an increase in domestic prices. As of October 15, we
prepared 195 million poods, including industrial crops. Under pressure
from the People's Commissariat for Internal Affairs, the contract with abroad
was canceled.
It seems to me that the
right proposal is to postpone the decision for a week. I have a request to
be given all the proposals for today or tomorrow so that I can understand them.
Chairman. The
proposal is this: not to make any decisions now, but on Thursday, two days
later, to raise the question of discussing Comrade Sokolnikov's report that he
has just heard and to create a Politburo commission based on these two reports,
which will examine all these questions.
Rykov. I
am afraid that discussing Comrade Sokolnikov's lecture will take up as much
time from us as discussing Comrade Sheinman's lecture, then we will not be able
to examine the remaining questions. There is a small question regarding
the tariffication of state employees, etc., could this small question, which
requires its resolution, be raised as the first question, and the second
question is the discussion of Comrade Sokolnikov's report?
Chairman. The
proposal is this: not to make any decision now, not to outline the composition
of the commission now, but to outline the composition of the commission at the
next meeting. At the next meeting, put first Comrade Rykov's question, and
secondly discuss Comrade Sokolnikov's report.
Accepted 34 .
1 RGASPI. F.
17. Op. 163. D. 529. L. 1-141 (uncorrected transcript); D. 530. L.
1-135 (transcript with copyright correction); D. 533. L. 1-13 (verbatim
report). The issue of grain procurements and the export-import-currency
plan was also considered at a meeting of the Politburo on November 1, 1925 (see
later in this volume). A verbatim record has been issued based on the
transcripts of these two meetings.
The meeting on October
26 was attended by members of the Politburo - G.E. Zinoviev,
L.B. Kamenev and A.I. Rykov, I.V. Stalin,
M.P. Tomsk; candidate members of the Politburo - V.M. Molotov,
Ya.E. Rudzutak, G. Ya. Sokolnikov; members of the Central
Committee of the RCP (6) - A.S. Bubnov, E.I. Clearing, L.B. Krasin,
G.M. Krzhizhanovsky, G.L. Pyatakov, A.P. Smirnov,
N.A. Uglanov, A.D. Tsyurupa; candidate members of the Central
Committee of the RCP (b) - S.I. Syrtsov, V.V. Schmidt; members
of the Presidium of the Central Control Commission of the RCP (b) -
M.F. Shkiryatov, N.M. Yanson, E.M. Yaroslavsky, as well as the
executive editor of the Izvestia newspaper I.I. Skvortsov-Stepanov.
2 Resolution of
the STO "On the plan of grain procurement and grain export for
1925-1926." was adopted on July 10, 1925 and approved by the
Politburo on July 16, 1925. The decree established an indicative plan of state
grain procurement at 680 million poods. (RGASPI. F. 17. Op. 3. D. 511. L.
4.) On August 19, 1925, the STO adopted a resolution "On increasing the
plan of grain procurements and grain imports", according to which an indicative
plan of grain procurements for 1925/26 was established 780 million
poods. This resolution was approved by the Politburo on August 27, 1925
(Ibid. L. 4, 11-13.)
3 This refers to
the USSR People's Commissariat for Internal Trade.
4Due to the good harvest,
the Soviet leadership hoped to carry out significant harvesting volumes as soon
as possible. For this, a significant network of procurers was deployed and
generous lending for grain procurements was made. Due to a combination of
a number of factors - bad weather conditions, competition between procurers,
rush to export operations - procurement prices have increased
significantly. This stimulated an increase in commodity hunger - a
shortage of consumer goods both in the countryside and in the city, which
undermined the interest of the peasantry in the sale of grain. Rising
prices for bread, as well as capital expenditures in industry were the reasons
for the financial difficulties. In July-September 1925, over 296.8 million
rubles were put into circulation, which accounted for 70% of the total issue
since the beginning of the monetary reform in 1922 (Loevtsky D.A. Money
circulation for 10 years / Bulletin of finance. 1927. No. 11.)
5 This refers to
the II session of the All-Russian Central Executive Committee, held on October
13-24, 1925.
6 A directive
reduction in prices for planned procurers was carried out at the end of
September - beginning of October 1925. Prices were reduced by 10-15%, even more
in some regions. (Goland YM Crises that destroyed the NEP. Currency
regulation during the NEP period. Edition 2. M., 1998. S. 19-20.)
7 A gradual
decrease in the procurement plan occurred as the monthly plans were
refined. For example, the procurement plan for October 1925, approved by
the STO on October 21, 1925, was 90 million poods. grain compared with 125
million poods, which were supposed to be received in October according to the
initial reduced procurement plan, approved on July 10, 1925.
8 Limit price -
the upper limit of the price level for this type of product.
9 The resolution
of the STO "On supplying the village with manufactured goods" of
September 9, 1925 provided, in particular, "in view of the appearance on
the market, in connection with a shortage of goods, rush transactions ...
instruct the NKVnutorg of the USSR to pay attention to the noted phenomenon and
attract those who make such transactions to legal responsibility
". Banks were encouraged to no longer accept orders from individuals
to buy and sell goods. Local executive committees received the right to
facilitate the conclusion of agreements between cooperatives and trade bodies
for the promotion of goods in the countryside, as well as use state retail
trade bodies on the terms established for cooperation. (GARF. P-5674. Op.
1. D. 13. L. 215-218.)
10 At the meeting
of the STO on September 23, 1925, when discussing the export-import plan for
the first quarter of 1925/26, it was decided to reduce the plan for the export
of bakery products from 125 to 110 million rubles. To finalize the plan, a
commission headed by Sokolnikov was created. The Commission presented a
new version of the plan, which retained the same size of grain exports, at the
meeting of the STO on October 14. However, a week later, the commission
proposed to reduce the export of bakery products to 75 million rubles, which
was approved by the STO (Goland Yu.M. The Crises That Destroyed NEP, p.
106). Further Sokolnikov sets out these circumstances of the revision of
the plan.
11 Balance is the
difference between the amount of exports and imports.
12 According to
Professor V.Ya. Zheleznov, by October 1, 1925, the amount of money supply
increased by more than 80% compared to October 1, 1924 (Bulletin of Finance.
1926. No. 4).
13 On April 21,
1925, the Politburo approved the draft resolution on the report of
A.D. Tsurupa on a single agricultural tax, which was adopted at the XIV
conference of the RCP (b) (April 1925). A significant reduction in the
agricultural tax was envisaged in the 1925-26 budget year, its differentiated
distribution among various strata of the peasantry in accordance with the
degree of capacity of their economy, and a decrease in rates for the poor and
middle peasants. (RGASPI. F. 17. Op. 3.D. 512. L. 1, 5-8.)
The 14th XIII
Congress of the RCP (b), held on May 23-31, 1924, approved the monetary reform
carried out in 1922-1924 and instructed the Central Committee to uphold the
monopoly of foreign trade, develop grain exports and ensure an active balance
of foreign trade. (The CPSU in resolutions and decisions of congresses,
conferences and plenums of the Central Committee. T. 3. M., 1984. S. 206.)
15 This refers to
the decision of the Politburo of June 11, 1925: "Allow the NKVT to
complete negotiations with the Dreyfus firm." (RGASPI. F. 17. Op.
3.D. 506. L. 2.) See note 22 to the transcript of August 2, 1923.
16 February 19,
1925 The Politburo made a decision: "... b) Offer Krasin to leave for
Paris without delay." (RGASPI. F. 17. Op. 3.D. 489. L. 1.) March 13,
1925 L.B. Krasin was approved as chairman of the concession commission at
the trade mission of the USSR in France. (Ibid. D. 492. L. 6.) On August
27, 1925, the Politburo made a decision: "... to invite Krasin to leave
immediately for Moscow." (Ibid. D. 517. L. 3.)
17 On the issue of
grain export, deputy. People's Commissar for Foreign Trade
M.I. Frumkin spoke at meetings of the Politburo on July 23, August 13 and
27, September 3 and 17, 1925 (RGASPI. F. 17. Op. 3. D. 512. L. 4-5; D. 515. L.
6; D . 517.L. 6, 11-13; D. 518. L. 2; D. 519. L. 1.)
18 On the issue of
grain export at the meetings of the Politburo L.B. Krasin spoke on October
26 and 29, 1925 (RGASPI, F. 17, Op. 3, D. 525, sheet 1; D. 526, sheet 1.)
19 In 1924, the
structure of state management of grain procurements and purchases was
reorganized. The general management of state grain procurements was
entrusted to the grain-fodder administration of the USSR People's Commissariat
of Trade. The Bread Committee was created under the People's Commissariat
as the body coordinating centralized grain purchases.
20 Apparently,
this refers to the meeting of the Politburo of October 22, 1925, where the
question of foreign trade was discussed. (RGASPI. F. 17. Op. 3. D. 524. L.
6-7.)
21 This refers to
the Council of People's Commissars of the Tatar ASSR.
22 This refers to
the leadership of the North Caucasian Regional Committee of the RCP (b).
23 This refers to
the leadership of Siberia.
24 This refers to
the Plenum of the Central Committee of the RCP (Bolsheviks), which was held on
October 3-10, 1925. Kamenev spoke at this plenum on October 9, 1925 with a
report entitled "The Next Issues of Economic Policy." (RGASPI.
F. 17. Op. 2.D. 197. L. 62-67 rev.)
25 This refers to
the resolution of the Politburo of July 30, 1925 on the directive prices for
bread, which stipulated "that the price to be set for the next period for
wheat will not be lower than the ruble." (RGASPI. F. 17.Op. 3.D. 513.
L. 5.)
26 "Commercial
and Industrial Newspaper" - organ of the Supreme Council of National
Economy, published in 1922-1929. Chief editor of the newspaper
M.A. Saveliev. According to N. Valentinov's recollections,
Torgovaya-promyshlennaya gazeta “participated in the most energetic way in all
the campaigns conducted by the Supreme Economic Council: drawing up correct
cost estimates and annual balances of economic enterprises, lowering prices,
establishing depreciation funds, increasing labor productivity, fighting for a
mode of economy and etc. " (Valentinov N. (N. Volsky) New economic
policy and the crisis of the party after Lenin's death. Years of work in the
Supreme Council of the National Economy during the NEP: Memories. M., 1991. S.
339.)
27 This refers to
the meeting of the Politburo of June 11, 1925, at which Stalin was
present. (RGASPI. F. 17. Op. 3. D. 506. L. 1.) See also note 16.
28 Purchasing
power is the ability of a monetary unit to exchange for a certain amount of
goods.
29 Parity is the
ratio between monetary units, currencies of different countries, established
either by their gold content, or by purchasing power in relation to a certain
set of goods and services.
The 30 October
plenum of the Central Committee of the RCP (b) in 1925 adopted a resolution
"On the work of the party among the rural poor", which, in
particular, provided for facilitating the access of the rural poor to
agricultural and credit cooperation (state assistance in making shares),
providing the poor with material assistance through concessional loans and
encouraging the creation of collective farms. (The CPSU in Resolutions ...
Vol. 3.P. 413-417.)
On June 12, 1924,
the Politburo approved a regulation on the Banking Committee under the Board of
the State Bank, which was formed "to coordinate the activities of credit
institutions and develop general issues of regulating bank
lending." (RGASPI. F. 17.Op. 3.D. 443.L. 4, 19.)
32 "Economic
Life" - financial newspaper, published in Moscow in 1918-1941.
33 We are talking
about currency speculators. The People's Commissariat of Finance of the
USSR was located on Ilyinka Street and at the same time the well-known
"black exchange" ("American"), where transactions with
foreign exchange values were carried out.
34 The continuation
of the consideration of the issue of the export-import-currency plan was twice
postponed (RGASPI. F. 17. Op. 3. D. 525. sheet 1; D. 526. sheet 1) and was
submitted to the meeting of the Politburo on November 2 (see (see the following
transcript in this volume).
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