The quantity of money in circulation underwent a change to the follow. 
ng extent (in mill Rbl.): 
t October 1924 
1925 
926 
"927 
1928 
627.0 
1,142.9 
1,343.2 
1,670.8 
1,577.0 
(These figures are taken: up to 1 October 1927 from the Bulletin 
issued by the Conjuncture Institute in Moscow 1927, Nos, 11/12; and 
for 1 June 1928 from the “Ekonomicheskoe Obosrenie’’, i. e., Economic 
Review, No. 6, 1928 F. Radezky, The Currency in 1927/28). For the 
separate months the increase in the quantity of money in a percentage 
comparison with the total amount, figures out at: 
[n January 1927 9.30 " In May 1927 19.5 % 
, February 1g2~ 3 , June 1927 22.0 9% 
+ March 1927 July 1927 20.6 9) 
April reen August 1927 . . . . . 21.80) 
September 1927 . . . 24.4 9% 
Altogether 344.3 mill. Rbl. were issued by 1 October 1927 (in the 
second half of the year 1926/27), i. e. 200 mill. Rbl. more than in the 
second half year of 1925/26. 
The fourth and last period has clearly shown the abnormal condition of 
affairs, viz., that the State Bank makes advances to industry, trade, to 
iransport business and to agriculture, in order to extend the production and 
lo carry out capital investment work (reconstruction work), whereas in 
countries with an economic condition built up on private economic initiative, 
the function appertaining to banks of issue consists in the regulation of cur- 
rency and in the supply of trade and industry with short-dated loans in 
exchange for mortage bonds; and thus the clients’ money in course of 
sirculation is replenished, and only already manufactured goods, merely 
waiting to be disposed of, are accepted as security for any sums advanced. 
In the U.S.S.R., however, the tendency has carried the day, viz., to 
stay the decline at any cost and once more to build up the industry; 
further, it is necessary in the Union — for political reasons — to maintain 
the nominal wage on a comparatively high level. So it has now become 
sbligatory to reduce the prices of the expensive goods produced under these 
special conditions, by all possible means — or else the peasant is not in 
1 position to buy them. 
The lowering of prices is accomplished on purely administrative lines, 
and at the expense of increasing the deficit of the State enterprises. All 
111