Soviet Union Information Bureau


FINANCE


CURRENCY: Shortly after the Soviet Revolution the State Bank was nationalized. Subsequently all other banks were nationalized and fused with the State Bank, the joint institution being known as the People's Bank. After the period of civil war, invasion and blockade set in, and wartime communism was inaugurated as a measure of necessity, even this bank ceased to have any function to perform. It was abolished in 1920, and there followed what is known as the "bankless phase" of the Revolution.

All supplies tended to become concentrated in the hands of the Government; industry secured its raw materials, not by purchase, but by direct assignments from the Government out of available stocks, and the population was similarly supplied with essential articles of consumption by a system of universal rationing. Methods of trade were largely superseded and the use of money limited to a very small sphere of commodity exchange. The devaluation of the currency which naturally resulted was intensified by a more or less deliberate attempt to discredit and abolish the use of money altogether by excessive use of the printing press. The process of depreciation did not cease, however, with the reversal of economic policy in April, 1921, when money was restored to its former function. On the contrary, the printing press was worked with even greater intensity, since the exhaustion of civil war and the advanced stage of economic disorganization left the government for the time being with little other source of revenue.

By 1922 the ruble as a unit of reckoning had declined to such an extent as to become practically useless. A new monetary unit was instituted called the "1922 ruble," equivalent to 10,000 rubles of previous issues. A year had barely elapsed before progressive inflation had rendered even the 1922 ruble too minute in value, and another monetary unit was instituted known as the "1923 ruble," made equivalent to 100 rubles of the 1922 issue, i.e., one million rubles of previous issues. The 1922 and prior issues were subsequently withdrawn from circulation.

Meanwhile, with the rapid revival of trade and industry, the need for a stable medium of exchange became urgent, and it was primarily to meet this problem that the State Bank of the R.S.F.S.R. (later the State Bank of the U.S.S.R.) was created in November, 1921. A year later it was empowered to issue its own note, known as the "chervonetz" (equal to ten gold rubles), backed by a reserve of gold and stable foreign currencies. The gold chervonetz contains 119.4826 grains of fine gold, and is equivalent to $5.146. The new note proved to be highly stable, thanks to the cautious issue policy pursued by the bank. As the bank rapidly accumulated stable assets the note issue was expanded and for two years the curious phenomenon was observed of a stable currency circulating side by side with a highly inflated and catastrophically depreciating currency.

Vigorous measures were meanwhile being taken to rehabilitate the State finances and render the use of the printing press unnecessary. This was more or less accomplished in the beginning of 1924. The 1923-24 budget was the first to he balanced since the outbreak of the war, and in March, 1924, were passed the decrees constituting the currency reform. These provided for the issue of a new treasury ruble, measured in terms of gold, supplemented by silver and copper coin of pre-war metal content. The State Bank exchanges its own note for ten rubles of the new currency, and this is the rate universally established. By law the total amount of treasury notes normally must not exceed one-half of the amount of chervontzi in circulation.(1) The old depreciated rubles were withdrawn from circulation at the rate of 50,000 rubles of the 1923 pattern (i.e., 50,000,000,000 rubles issued prior to 1922) for one new ruble.

The present currency system of the U.S.S.R. consists of State Bank notes (backed by a gold reserve and equivalent "hard" cover), treasury notes (limited to one-half the amount of State Bank notes in issue) and silver, copper and bronze coins. Currency in actual circulation, in millions of rubles:

Banknotes Treasury Notes Silver Coins Copper Coins Bronze Coins Small Change Notes Total
Jan 1, 1925 410.8 229.1 73.6 1.8 27.3 742
Jan 1, 1926 726.7 387.7 141.9 7.6 .. 5.4 1,269
Jan 1, 1927 796.7 397.8 150.0 8.13 1.9 1,354
Jan 1, 1928 1,002.9 479.8 171.9 9.0 4.2 1,667
Oct. 1, 1928 1,063.7 711.0 181.8 9.4 5.5 1,971

The parity of the gold ruble is 51.4567 cents.

BANKING.- November 16, 1927, marked the sixth anniversary of the inception of the Soviet banking and credit system. The State Bank during its first year enjoyed a virtual monopoly but the rapid economic recovery of the country stimulated the creation of a banking system, which in view of the short interval involved, is of rather remarkable extent and complexity. This system consists of the central banks, such as the State Bank, the Long Term Credit Bank, the Bank for Foreign Trade, the All-Russian Co-operative Bank, the Central Municipal & Building Bank; banks serving specific territories, such as the Central Asiatic Commercial Bank, the Far Eastern Bank, the North Caucasian Commercial Bank, the Ukrainian Co-operative Bank; the numerous municipal banks of the cities; the Central Agricultural Bank with its numerous subordinate regional agricultural banks and agricultural credit societies; the savings banks and the private banks known as Mutual Credit Societies. In all, this system of banks with their branches and agencies (and treasury offices), comprises some 1,500 units, not counting the savings banks which number about 14,500. In this system the State Bank alone has over some g branches.

During 1927-28 certain reorganizations have been effected in the banking world in the interest of rationalization and efficiency. The gross number of bank branches has been considerably decreased. Several hundred local agencies of the Commissariat for Finance, which had acted as branches of the State Bank, were discontinued, and their functions were taken over by regular branches of the State Bank, the number of which was somewhat increased in the process. (On October I, 1927, the number of branches of the State Bank in operation was 417, on January 1, 1928, the number was 575.)

Incidentally the Bank for Electrification was merged with the Industrial Bank into a single Long Term Credit Bank, a process called forth in the interest of separating long term from short term credit operations and made logical by the expansion of the long term credit operations and the diminution of the short term operations of the two banks. Short term credit operations of the two banks were transferred to the State Bank, which in turn transferred to the new institution long term operations within its sphere.

Banking institutions of the Soviet Union, main offices only:

October 1
1924 1925 1926 1927
State Bank 1 1 1 1
Joint Stock Commercial Banks 5 6 6 5
Cooperative Banks 2 2 2 2
Municipal Banks 16 31 47 5
Agricultural Banks and Credit societies 5 57 72 78
Mutual Credit Societies and Other Loan Offices 92 176 312 316
Total 167 273 440 453

Number of banking institutions and branches (exclusive of savings banks, Treasury offices, and agricultural co-operative credit societies):

Oct. 1, 1926 Oct. 1, 1927
State Bank 487 418
Banks of Federal Scope 169 90
Republican and Regional Banks 157 101
Local Banks 622 597
Total 1,435 1,206

STATE BANK OF THE U.S.S.R.- The State Bank was founded November, 1921, with a capital of two billion paper rubles, supplemented later by similar subventions. When the bank's resources were recomputed in May, 1923, in terms of its own stable notes, capital was fixed at o million gold rubles. This was increased in October, 1924, to 100,000,000 gold rubles, and in June, 1927, to 250,000,000 gold rubles. Balance sheets of the State Bank (in millions of rubles):

Combined Balance of the Credit System of the U.S.S.R.:
Principal Resources and Liabilities
(In millions of roubles)
State Bank Commercial Banks Cooperative Banks Municipal Banks Agricultural Banks Mutal Credit Societies Total
Cash in hand at Banks 69.6 54.1 16.9 10.0 11.5 13.9 31.5 37.5 17.1 15.5 3.4 2.9 149.0 133.9
Bullion, coin, precious metals, foreign exchange and securities 583.3 567.7 5.6 22.0 3.7 9.5 13.5 29.0 8.8 4.2 2.2 3.0 617.1 635.4
Loans and discounts 2,982.2 3,540.2 770.8 1,629.8 229.3 311.0 829.1 1,290.5 643.5 934.3 31.1 22.8 5,486.0 7,728.6
This includes:
    (a) Long term 722.7 346.3 286.0 1,496.5 695 83.2 553.8 969.9 324.0 645.9 1,956.0 3,541.8
    (b) Short term 2,259.5 3,193.9 484.8 133.3 159.8 227.8 275.3 320.6 319.5 288.4 31.1 22.8 3,530.0 4,186.8
Correspondents 3.2 5.0 16.1 87.5 5.0 9.6 21.0 24.5 16.8 9.9 1.5 0.8 63.6 137.3
Offices, branches and agencies 1,064.1 1,504.2 68.4 82.6 92.9 87.8 201.5 797.7 943.2 2,217.7 2,810.2
Other resources 10.8 261.9 72.4 102.0 9.4 27.6 24.4 59.1 88.0 154.5 20.1 11.9 365.1 617.0
Total (gross) 4,853.2 5,933.1 1,066.3 1,919.7 341.5 464.5 1,007.3 1,642.1 1,571.9 2,061.6 58.3 41.4 8,898.5 12,062.4
LIABILITIES:
Own capital 368.7 365.7 281.7 367.7 35.8 44.6 146.9 165.4 234.1 308.1 13.9 11.1 1,081.1 1,262.6
Note issue 1,474.2 1,797.7 1,474.2 1,797.7
Alien funds 625.8 249.8 181.2 1,217.0 70.7 96.6 449.5 876.7 251.4 313.5 1,578.6 2,753.6
Deposith and current accounts 1,008.5 1,195.6 202.5 129.9 97.7 110.6 206.8 193.1 81.6 111.8 22.1 17.0 1,619.2 1,758.0
Due to Banks 117.9 22.8 32.5 65.3 37.7 102.7 135.3 258.4 3.1 1.3 326.5 450.5
Correspondents 0.4 1.8 18.2 12.3 3.9 7.5 24.2 24.7 11.6 14.2 1.4 0.7 59.7 61.2
Offices, branches and agencies 1,067.4 1,674.2 185.5 69.6 82.6 92.6 87.8 202.3 797.7 943.2 2,221.0 2,981.6
Profits 107.6 191.9 31.4 27.0 3.0 6.1 19.0 14.4 13.1 14.3 0.5 0.6 174.6 254.3
Other liabilities 200.6 456.4 47.9 734 15.3 41.2 354 62.8 47.1 98.1 17.3 10.7 363.6 742.6

Balance Sheets of the State Bank of the USSR
(In Millions of Rubles)
Assets Oct. 1, 1926 Oct. 1, 1927 April 1, 1928
Cash 96.2 65.9 68.5
Precious Metals and Foreign Currency Reserve 253.4 299.9 262.5
Loans and Discounts 1,902.5 2,171.4 2,681.9
Special Loans to Industry and Agriculture 176.5 820.3 770.0
Other Assets 2846 505.6 530.9
Total Assets 2,713.2 3,863.1 4,313.8
Liabilities
Capital, Surplus and Undivided Profits 270.3 314.7 419.0
Current Account and Other Deposits 1,200.8 1,292.9 1,648.1
Note Issue 86.8 1,026.6 941.8
Government Funds for Loans to Industry and Agriculture 178.5 631.5 627.4
Other Liabilities 206.8 597.4 677.5
Total Liabilities 2,713.2 3,863.1 4,313.8

BALANCE SHEET OF THE STATE BANK OF THE USSR
ON OCTOBER 1ST, 1928
(Preliminary figures in thousands of rubles)
Assets Changes for the year
Cash 54,057 (2) - 11,864
Bullion, Coin, Precious Metals and Foreign Currencies 291,022 - 8,900
Securities 276,604 - 26,137
Loans and Discounts 3,054,716 +883,333
Special Loans to Industry and Agriculture on Account of the Commissariat for Finance 250,165 -382,487
Special Loans to Agriculture 190,275 +70,950
Account with the Commissariat of Ways of Communication 46,892 - 21,430
Commission, Interest and Other Charges 66,906 + 14,479
Offices, Branches and Agencies - -
Other Assets (3) 140,760 - 9,741
Total 4,371,397 + 508,203
Liabilities
Capital 250,000 -
Reserve Fund 99,945 + 44,000
Special Reserves 6,043 - 2,801
Undivided Profits Year 1926-27 14,489 + 14,489
Note Issue 1,090,096 + 63,524
Deposits and Current Accounts (Including Funds of the Commissariat for Finance) 1,553,125 + 260,196
Government Funds for Loans to Industry and Agriculture 249,408 -382,132
Commission and Interest 242,906 + 51,668
Offices, Branches and Agencies 169,972 + 33,938
Other Liabilities 695,413 +425,321
Total 4,371,397 + 5O8,203

The State bank note issue of various dates, with the reserve covering issue, in rubles, follows:

State Bank Note Issue Total Reserve Per Cent Reserve
October 1, 1923 235,000,000 119,700,000 50.9
October 1, 1924 518,900,000 239,000,000 46.1
October 1, 1925 756,600,000 263,300,000 34.7
October 1, 1926 86,800,000 235,100,000 27.4
October 1, 1927 1,026,600,000 268,900,000 26.1
October 1, 1928 1,090,100,000 279,500,000 25.6
December 1, 1928 1,121,300,000 302,400,000 27.0

The minimum legal reserve for the State bank notes is 25 per cent in gold and precious metals and stable foreign currency.

Balance sheets of the Department of Issue of the State Bank, in chervontzi:

Assets December 1, 1927 December 1, 1928
Gold coin and bars 18,879,717 17,819,293
Platinum 2,072,649 4,507,208
Foreign currency 7,881,043 7,909,961
Drafts in foreign currency 266,490 273,161
Bills in chervontzi 80,626,114 82,216,390
Securities covering advances 273,987 273,987
Total 110,000,000 113,000,000
Liabilities
Bank notes transferred to State Bank 106,847,087112,130,455
Balance to which notes may still be issued 3,152,913 869,545
Total 110,000,000 113,000,000

SAVINGS BANKS: The first Soviet savings banks were opened in February, 1923. During their short existence their operations have steadily expanded. They have made headway despite certain conditions not conducive to savings, such as the extensive system of social insurance which tends to remove some of the strongest motivations for storing up against the future. A form of universal bank book has been introduced which allows the bearer to deposit or withdraw money at any savings bank in the country.

The savings banks as a rule do not exist as independent organizations. Attempts have been made to establish savings bank branches in various organizations of a public or financial character, including post offices, Treasury Department branches, railway stations, State insurance company branches, banks, large stores, army units, schools, etc.

Statistics of savings banks:

Savings Bank Branches Depositors Deposits in Rubles
October 1, 1924 5,284 537,402 11,247,500
October 1, 1925 9,742 817,735 33,493,400
October 1, 1926 74,757 1,315,053 90,468,400
October 1, 1927 14,418 2,217,000 186,445,000
August 1, 1928 15,171 3,744,000 299,900,000

FEDERAL BUDGET: The political, social and economic structure of the Soviet State determines the aims pursued in the budget. The federal budget includes the budgets of the six Constituent Republics. The economic structure of the Soviet Union where the whole of the large industry and transport, as well as a large part of the commercial machinery and the credit system are in the hands of the State, makes it inevitable that a large proportion of the revenue is derived from State undertakings and that considerable expenditure is made for economic enterprises. Revenue from taxation during the past few years has comprised from 45 to 41 per cent of the total of the income side of the budget. State properties show a steadily increasing yield, though this is balanced by increasing appropriations for capital expansion in State industries. Internal loans have risen notably as a factor on the income side of the ledger. During the fiscal year 1927-28 they yielded 705,600,000 rubles.

The growth of State revenues since 1922-23, the first year in which the Soviet State attempted to construct a firm budget, is shown by the following figures:

Rubles
1913 3,605,000,000
1923-24 1,460,000,000
1924-25 2,929,419,000
1925-26 3,949,048,000
1926-27 5,204,000,000
1927-28 6,326,800,000
1928-29 (estimate) 7,694,800,000

Receipts in classified form of recent budgets follow (in thousands of rubles):

1924-25 1925-26 1926-27 1927-28
Taxes and Excises 1,323,467 1,784,589 2,480,100 2,887,700
State Properties and Establishments 346,938 531,686 602,100 712,600
Transport and Communications 1,013,521 1,443,219 1,712,100 1,877,700
Credit Operations and Other 245,493 188,554 409,700 848,800
Total 2,929,419 3,948,048 5,204,000 6,326,800

The 1923-24 budget was the first post-revolutionary budget to be balanced. Since that year each budget has produced a surplus of revenue over expenditure.

Revenues and expenditures, past three years, in millions:

1925-26 1926-21 1927-28
Revenues 3,948.0 5,204.0 6,326.8
Expenditures 3,867.8 5,151.3 6,239.1

Expenditures of recent budgets exclusive of State reserve, by categories, in percentages:

1924-25 1925-26 1926-27 1927-28
State Defense 15.3 15.4 13.9 13.4
Transport and Communications 34.7 37.5 36.3 34.4
Financing of Industry, Agriculture and Trade. 13.6 13.7 17.7 20.1
Grants to Local Budgets 7.8 6.4 10.9 9.6
Administration and Other 28.6 27.0 21.2 22.5
Total 100.0 100.0 100.0 100.0

Budget of 1927-28

General detail of revenues of the budget 1927-28, with advance estimates compared with actual revenues for the year (preliminary figures) in millions of rubles, follows:

REVENUE
Advance estimates Actual revenues
I. Direct taxation
  a) Agricultural tax 375.0 329.4
  b) Industrial tax 361.4 351.6
  c) Income tax 256.3 229.2
  d) Miscellaneous 16.1 22.6
1,008.8 932.8
II. Indirect taxation
  a) Excise 1,415.9 1,477.9
  b) Customs Duties 225.0 256.9
1,640.9 1,739.8
III. Stamp Duties 230.1 220.1
Total Tax Revenue 2,879.8 2,887.7
IV. State Properties and Undertakings
  a) State Industry 250.0 257.3
  b) State Trade 31.1 33.1
  c) Banks 78.2 81.0
  d) Forests 233.4 242.6
  e) Mines 58.9 55.5
  f) Concessions 4.5 3.1
  g) Miscellaneous 30.2 40.0
686.3 712.6
V. Post, Telegraph, Telephone and Wireless 171.9 171.6
VI. Transport 1,685.0 1,706.1
VII. State loans 525.0 705.6
VIII. Sundry receipts 90.0 90.5
Total Revenue Receipts 6,038.0 6,274.1
Add surplus from previous years 50.0 52.7
6,088.0 6,326.8
EXPENDITURE (ADVANCE ESTIMATE)
Rubles
I. People's Commissariats and Departments
  1. People's Commissariat for War 742,427,000
  2. Military Health Board 21,338,000
  3. Special Troops 49,386,000
  4. People's Commissariat for Transport 1,998,759,020
  5. People's Commissariat for Communications 178,412,000
  6. Other Commissariats and Departments 174,614,320
  7. Commissariats and Departments of the Constituent Republics 602,467,024
3,767,403,364
II. Economic Development (exclusive of Commissariats and Departments)
  1. Industry 635,868,000
  2. Service on Economic Reconstruction Loan 60,000,000
  3. Electrification 135,710,000
  4. Agriculture 115,376,600
  5. Irrigation 36,760,000
  6. Cooperatives 13,855,600
  7. Trade 108,178,000
  8. Housing and Municipal Development 90,520,000
  9. Others 19,850,000
1,216,118,200
III. Special Funds
  1. Unemployment 12,415,000
  2. Homeless Children 8,327,000
  3. Publications 12,785,287
  4. Reserve Fund of the Council of People's Commissars 124,227,505
  5. Mint and Currency 7,269,000
  6. Other 19,484,000
184,507,792
IV. Debt Service 247,500,000
V. Local Government Budgets
  (a) Deductions from Federal Revenues 529,078,549
  (b) Subsidies and Loans 53,121,000
582,199,549
VI. Precious Metals 18,329,000
VII. Grain Reserve 22,000,000
Total 6,038,057,905
Special Reserve 50,000,000
Total Expenditures 6,088,057,905

Preliminary budget figures for 1928-29, approved by the Central Executive Committee, show a total of 7,694,800,000 rubles ($3,962,822,000). The expenditures include 939,000,000 rubles for capital extensions in industry, 184,000,000 for electrification, 317,000,000 for agriculture, 40,000;000 for irrigation and 127,600,000 for new railway lines. The budget for army and navy was 840,700,000. Special funds, such as those for unemployment and homeless children, were 1,600,000. A special State reserve fund of 50,000,000 rubles was included in the budget.

Revenues included direct taxes of 1,700,000,000 rubles, including single agricultural tax 400,000,000. Indirect taxes of 1,965,000,000 included 1,720,000,000 from excise duties and 245,000,000 from customs. Stamp and other duties were fixed at 138,000,000. Non-tax revenue included transport 2,001,000,000, communications 190,000,000, State property and enterprises 775,000,000. Revenue from State loans is placed at 800,000,000 rubles.

LOCAL BUDGETS.- The budgets of the local government bodies (provincial, rural district, city and village executive committees) have increased during the past few years with the growth of local improvements and education. Before the war these budgets played a comparatively insignificant role. The figures, in thousands of rubles:

Revenue
1924-25 1925-26 1926-27
From Local Sources 719,700 1,006,000 1,179,200
Deductions from State Taxes for local purposes 199,700 279,000 477,300
State Subventions 64,900 113,100 54,000
Other 73,200 107,900 103,800
Total 1,057,500 1,506,000 1,814,300

Expenditure
1924-25 1925-26 1926-27
Administration 209,300 289,200 313,400
Social and Cultural 353,100 501,800 667,100
Financing of Local Industry, Trade and Agriculture 268,700 435,700 583,400
Other 187,500 217,900 257,600
Total 1,018,600 1,444,600 1,821,500

TAXATION.- Direct taxes are imposed in the form of a single agricultural tax, a trading tax, an income tax, a surplus profits tax, probate duties. They yielded upwards of 900,000,000 rubles in 1926-27.

Indirect taxes consist of excise taxes and customs duties. Excise taxes are imposed on sugar, tobacco, textile products, fermented and distilled spirits, oil products, salt, tea, coffee, matches, yeast. They yielded upwards of 1,200,000,000 rubles in 1926-27. Customs duties yielded 190,000,000 rubles.

DEBTS-The Soviet Government, since it came into existence in November, 1917, has contracted no foreign debts.

The internal State debt of the Soviet Union as of October 1, 1928, was 1,422,100,000 rubles ($732,381,500). Figures of the internal debt, at various dates, in millions of rubles:

Oct 1, 1925 Oct 1, 1926 Oct 1, 1927 Oct 1, 1928
1st Internal Loan, 1922 98.9 100.0 100,0 100.0
2nd Internal Loan, 1924 694 51.3 37.4 18.2
5% Short-Term Loan, 1925 10.0 0.1
8% Internal Gold Loan, 1924 64.7 71.5 63.3 33.1
1st Peasant Loan, 1924 46.2 0.9 0.5 0.3
2nd Peasant Loan, 1925 82.0 95.6
3rd Peasant Loan, 1927 8.5 3.9
Treasury Bills 77.5 78.6 103.7 87.0
10% Reconstruction Loan 245.6 192.6 124.2
2nd 8% Internal Gold Loan, 1926 32.8 95.8 89.2
3rd 8% Internal Loan, 1927 51.7 189.8
13% Internal Loan, 1937 40.1 187.7
Internal Loan, 1926 28.2 24.6
10% Internal Loan, 1927 99.9 99.6
6% Industrialization Loan, 1927 16.4 197.0
Agricultural Improvement Loan, 1928 135.3
2nd Industrialization Loan, 1928 60.5
4th 8% Internal Loan, 1928 1.7
11% Internal Loan, 1928 70.0
366.7 662.7 933.7 1422.1

Details of Government bonds sold and refunded, in rubles:

Bonds Sold Refunded Net Increase of Internal Debt
1923-24 401,400,000 274,800,000 126,000,000
1924-25 259,400,000 136,900,000 122,500,000
1925-26 323,500,000 273,500,000 50,000,000
1926-27 591,300,000 267,500,000 323,800,000
1927-28 1,018,000,000 531,400,000 486,600,000

National Income

The national income has increased nearly 50 per cent in the past two years. The figures are given in the following table (in millions of rubles):

Private Income: 1924-25 1925-26 1926-27
Farmers 8,592 10,375 11,122
Wage Earners 3,760 5,607 6,623
Artisans 527 569 610
Employers 861 1,091 1,090
Other 636 833 944
Total Private Income 14,376 18,475 20,389
Net State Income:
Forests and State Farms 94 197 200
Industry 60 705 883
  Of this: Industry supervised by Supreme Economic Council 428 530 650
Transportation 96 125 146
Communications 14 37 42
Trade 78 119 143
Credit Institutions 106 143 225
State Insurance 20 40 36
Mining 24 49 75
Total Net State Income 992 1,415 1,700
Net Income of Cooperatives 57 172 251
Net Income of Municipalities 164 190 220
Total National Income 15,589 20,252 22,560

The national income, previous years (in millions of rubles):

191315,130
1922-237,386
1923-2411,718

National Wealth

The national wealth of the Soviet Union has increased 34 per cent during the past three years, with an increasing gain each year. The national wealth (in terms of prices of 1925-26), is divided as follows, as of 1924-25 and 1927-28:

Billions of rubles
1924-25 1927-28
Agriculture 23.00 28.89
Industry 6.65 9.50
Power Plants 0.23 0.84
Transport 10.80 11.79
Posts and Telegraph 0.21 0.29
Trade and Warehousing 0.40 0.72
Administration, Education and Public Health 1.37 3.82
Municipal Economy 2.25 2.50
Housing (Urban) 10.20 15.39
Total 55.11 73.74

Under the category of agriculture, national wealth as of 1927-28 is divided as follows:

Millions of rubles
Tools and Machinery 3,332.4
Farm Buildings 15,566.4
Livestock and Poultry 8,081.2
Land Improvements 892.0
Electrification 16.2
28,888.2

The distribution of national wealth, State, cooperative and private, in billions of rubles, is as follows:

1924-25 1927-28
State 27.1 37.7
Cooperative 0.5 0.9
Private 27.5 35.1
Total 55.1 73.7

In the category of private wealth listed above, as of 1927-28, 28.3 billion rubles represents wealth in agriculture.

Tariff

The Soviet Union has a protective system of import duties, supplemented by duties on a limited number of articles of export. There are separate schedules for the European and the Asiatic frontiers. Early in 1927 the schedule for the European frontiers underwent a slight upward revision, the average duties on imports being about 30 per cent. In the fall of 1926, raw cotton, which had hitherto been admitted free through the port of Murmansk, was put under a small duty. Early in 1927 this duty was fixed at 21 rubles per 100 kg.

Goods for trans-shipment to and from Manchuria are admitted free without customs inspection at Vladivostok.

Next: FOREIGN TRADE


(1) A special decree of the Central Executive Committee and the Commissariat for Finance, issued August I, 1928, provided for a temporary increase of the percentage of treasury bills to 75 per cent of the total of State Bank notes, during terms when the turnover of consumption goods showed a sharp rise, such as the crop-moving season. The increase was to be confined to bills of rubles or less, as the supply of bills of small denominations had proved insufficient for the demands of the crop-moving season.

(2) Without "Sums in Transit" which are entered to the account of "Offices, Branches & Agencies."

(3) Including "Investments".