before the goods are actually delivered, foreign
purchasers from Soviet organisations are required
to extend to them substantial credits of from 6 to
12 months advances, which, during that period,
are not secured by marketable commodities.
in such instances the brokers, purchasers, or banks
financing them, cover the risk connected with the transaction,
which is usually not considered as normal, insuring
the credits with private companies or self-insuring by
charging a high commission of from 2 to 4 per cent. of the
total value of the goods sold. Such a high commission
is charged in spite of the fact that advances only amount
to 15 to 25 per cent. of their value, and that part of the
goods stored in the warehouses of the brokers may have
been marketed independently by Soviet organisations.
According to the calculations of the Commissariat
of Finance, the brokerage charges are 29%,
of the value of total exports. We have adopted
this ratio in our statistics, but in our opinion it
underestimates the amount actually paid yearly
to foreign brokers and purchasers.
The payments of the US.S.R. to foreign
railway and shipping companies are included in
‘he costs of imports and exports. Costs of insurance
are also included under such heading, but
there are some insurance charges which are not
perhaps shown in the balance of trade. The
Soviet Government established companies in
London and Berlin which, apart from insuring
‘oreign trade, undertook to cover risks altogether
anconnected with Soviet Russia. It is doubtful
whether these transactions have contributed to
the credit side of the balance of payments of the
U.SS.R.
SUMMARY OF THE BALANCE OF TRADE.
The term balance of trade as used here covers
not only the balance of movements of merchandise,
but all incomings and outgoings, directly and
indirectly connected with the foreign trade of the
country, with the exception of all interest charges
in so far as these are not included in the invoice
price. In the following table are summarised all
data available since 1924/25 :
CURRENCY EXPENDITURE (in million roubles).
1924/25 ..
1925/26 ..
1926/27 ..
1927/28 ..
1928/29 ..
1929/30 ..
1930/31 .. |
Merchandise
Imports. -
724
756
714
946
836
1,068
1,044
Precious | Commercial
Metals : Parcels
Imports i Imports.
Contraband
Imports
?7
0)
“3
29
25
35
35
Brokerage,
Commissions,
ete.
i
Ns)
18
I 16
1,
Overhead and
other Adminis
trative
expenses including
taxes.
Total
>
E>,
J
|
839
0 810
“5 1,024
~2 932
50 | 1,178
50 1,151
CURRENCY INCOME (in million roubles)
1924/25 .. ..
1925/26 .. ..
1926/27 .. ..
1927/28 .. ..
1928/29 .. ..
1929/30 .. .. |
1930/31 .. ..
Merchandise Exports.
Official :
Revised
Customs | r
Returns Figures
Precious
Metals
Exports
59
877
780
778
878
1,002
890
530 70
850 81
735 49
743 155
840 70
965 9
R36 110
Contraband
Exports. |
~
3
Total
Balance.
Official : i Official
Customs Revised | Customs
returns. g a Returns
Revised
figures.
833 604
761 734 — 78
834 789 + 24
936 901 — 88
954 916 + 22
1019 | 982 | —I59
1009 | ©55 | —_142
—237
—105
— 21
—123
- 16
—196
—196
