378 SECTIONAL TRANSACTIONS.— F. 



circulating money has not entailed its depreciation, owing mainly to two processes : 

 (1) substitution of transactions on money basis for the barter, which reached con- 

 siderable extent at the period of sinking paper money, and (2) the rise in the volume 

 of trade as a result of general economic recovery. The currency could be increased 

 with such reserves without any danger. The first reserve was, however, soon 

 exhausted, because money basis for transactions was re-established already to the 

 beginning of 1925, and as for the second, it gave until recently excellent results, even 

 exceeding the anticipations, in consequence of the rapid recovery of agriculture and 

 industry (the latter by using the fixed capital remaining idle from the period of military 

 communism). The management of currency met, however, some difficulties owing to 

 peculiar economic conditions of present Russia, where there are some regulated 

 (staple industries, big trade) and some unregulated activities (agriculture, small 

 industries, small trade). The movement of prices acquires under such conditions a. 

 peculiar character and fails to signalise the danger threatening the currency. It is 

 possible that already in the autumn of 1924 the amount of money in circulation some- 

 what exceeded the limits allowed of by the increase in the volume of trade. A still 

 greater lack of adjustment between the amount of money in circulation and th& 

 actual need thereof for the trade existed in the summer and autumn, 1925. However, 

 the deficiencies in the money and credit policy did not very much aSect the stability 

 of currency, and usually they were being smoothed away for the next seasonal expan- 

 sion of trade. 



The peculiar feature of the monetary reform of 1924 is that it was carried into- 

 effect at the expense of the country's proper means, without any help from outside, 

 and on the v/hole successfully. 



It was accompanied by the general economic recovery and the improvement of 

 State finances. It appears paradoxical enough that the first steps of monetary reform 

 were easier than the subsequent ones. One of the important resources, contributing^ 

 to the rapid progress in industry, viz. the part of fixed capital remaining idle, is now- 

 nearly exhausted. The insufficient accumulation of capital within U.S.S.R. and the- 

 lack of loans from abroad do not allow the industry to develop at the former rate. 

 For the currency itself this presents no actual danger. But the economic life must 

 change its tempo, and progress in a degree corresponding to the productive forces of 

 this country is not to be expected until the time comes when the possibility of 

 drawing capital from abroad presents itself. 



Wednesday, August 11. 



8. Mr. A. W. Flux, C.B. — British Export Industries. 



' It is proposed to examine the changes in the overseas markets for the products, 

 of our leading export industries, more particularly with a view to measuring the- 

 changes in the character of the products taken by individual markets or by overseas: 

 markets as a whole.' 



9, Dr. J. A. Bowie. — Coal and Co-partnership. 



The economic peculiarities of the coal industry ; the wide diversities between) 

 the units, in size, in method of capitalisation and in profit-earning capacity ; the- 

 high labour cost and the relatively small capital required. 



The relationship between the 1921 ' profit-sharing ' scheme and the recommenda- 

 tion of the recent Coal Commission ; the claims and ])erformance of the 1921 scheme- 

 in regard to employment, output, absenteeism and industrial relations ; the problem 

 of production in the coal industry on its human side, the effect of the difficulties of" 

 supervision, heavy labour turnover, bad time-keeping and the industrial aspirations 

 of the miners. 



The possible effects of a co-partnership scheme on output ; the objections of 

 labour ; the dangers of making the scheme compulsory ; a criticism of the methods 

 suggested by the Labour Co-partnership Association ; the attempts in France to- 

 introduce co-partnership in the coal industry ; the essential conditions of success. 



The details of a suggested scheme for the industry ; the treatment of ancillary 

 undertakings ; the trade-union qualification for participation ; the method of calcu- 

 lating divisible profits ; the form of distribution ; the question of workers' control) 

 in relation to co-partnership. 



