The foregoing figures cover only the period
since 1924/25. The available data for the preceding
years contain many important omissions which
cannot be satisfactorily supplied. One such
omission is contraband, which, according to the
calculations of competent investigators, amounted
to as much as 409%, of the official import figures.
The Customs returns for 1920/21-1921/22 show an
enormous adverse balance amounting to 498
million roubles. This adverse balance was the
consequence of orders placed for railway equipment
 and of substantial purchases of foodstuffs
and other commodities, necessitated by their
extreme scarcity in the country, following upon
civil war, and the famine of 1921. During those
years imports were paid for by export of gold drawn
from the reserve inherited from pre-revolutionary
simes, and no foreign credits were available. Up
till October 1st, 1924, according to official data
'Vneshnaya Torgovlya S.S.R. za X let, Moscow,
1928), the Treasury had transferred to the Commissariat
 of Trade for the purpose of financing
foreign trade 885.8 million roubles in gold, foreign
currencies and other valuables. Out of this amount
184.5 million roubles were returned to the Commissariat
 of Finance; 156 million roubles were
transmitted to a Railway Commission set up
abroad by the Commissariat of Communications ;
466.7 million roubles were spent by various foreign
agencies of the Commissariat of Foreign Trade,
and on the 1st October, 1924, there should have
remained 78.6 million roubles and a balance at
he disposal of the Railway Commission. The
sums thus left over were partly expended in succeeding
 years in payment of orders placed in preceding
years, and partly formed the basic capital of
various Soviet commercial undertakings abroad.
Transferences abroad led to serious depletion
of gold reserves. Consequently, beginning from
1922/23 the Government .was compelled to take
drastic measures to restrict imports. In the
‘ollowing year they realised that, since a favourable
trade balance was indispensable for stabilising
‘he currency and increasing the gold and currency
reserve of the State Bank, no measure calculated
to bring about its achievement should be neglected.
In 1923/24 export of grain was resumed, and the
axports exceeded imports. In 1924/25 the harvest

vas bad and the Government, fearing recurrence
>f famine and a rise in prices which would imperil
he recently stabilised currency, imported large
luantities of grain. Hence the year ended with
1 very large excess of imports over exports, 165
million roubles according to official statistics, and
94 million according to our revised statistics.
n 1925/26, the Government attempted to reverse
his condition of affairs by strictly regulating and
:educing imports. Yet the balance remained
wdverse, and it was only in 1926/27 when imports
were further restricted, wholly at the expense of
sonsumers’ goods, that exports exceeded imports.

The Five Years’ Plan provided for imports
hroughout the whole period amounting to 6,200
nillion roubles and exports amounting to 7,000
nillion roubles the difference to furnish the means
vherewith to pay for various services abroad,
eaving, after all payments had been met, a subtantial
 margin out of which an additional foreign
aurrency reserve of 450 million roubles could be
»uilt up. Owing to the world crisis this plan could
ot be carried out. In 1928/29, the first year of
he Five Years’ period, there was, according to
he Customs returns, a slight excess of exports
ver imports. This credit balance became a very
mall one in our revised figures. But when
orecious metals and all expenses connected with
oreign trade were taken into consideration there
vas a favourable balance of 22 million roubles,
f the value of exports was taken according to the
Customs returns and an adverse balance of 16
nillion roubles according to our revised figures.
3y 1929/30 the adverse trade balance had grown
fo 196 million roubles and in 1930/31 it remained
it the same figure.

Later it will be shown how this large balance
vas made good. For the moment we are concerned
nly with the circumstances which gave rise to it,
nd which were briefly as follows: whereas the
ralue of Soviet exports which were hard hit by
vorld trade depression fell last year by 129 million
oubles, imports remained unaffected by unavourable
 world conditions largely because the
urchasing power of the U.S.S.R. was artificially
timulated bv foreign financial aid.