Russia's Capitalist Progress (1944)

From the August 1944 issue of the Socialist Standard

From the Manchester Guardian's City Column. 

Soviet Lottery Loan.

An interesting glimpse of war finance methods in Soviet Russia has been given in a written reply by the Chancellor of the Exchequer. The Soviet Government issued this spring its third great war loan amounting to 24,000,000,000 roubles, and when the subscription lists closed on May 12 the loan was oversubscribed. The life of the loan is twenty years, and it has been issued in two series. One series, bearing annual interest, has been distributed amongst the workers’ guilds, co-operatives, and collective farmers. The other series is a lottery loan which was offered to the general public, it has a variety of money prizes for which drawings will take place twice a year for twenty years. The total amount of the prize money is calculated to average 4 per cent. per annum on the loan. Both interest and prizes will be exempted from State and local taxes.

We get far too little reliable news of financial methods in the Soviet Union. When times are more suitable, factual information would meet with keen interest here. Meanwhile one has to bear in mind that the Soviet Union uses a portion of the capitalist mechanics, including profit and loss accounts, banking, and investment, although these institutions have an inferior place in the economic system. It is nevertheless remarkable that Moscow should pay war savers 4 per cent. free of tax on a twenty years’ loan, while the British Government pays 3 per cent. less tax on somewhat longer Savings Bonds, 1960-70.

(Manchester Guardian, June 24, 1944.)