Monday, Sep. 15, 1924

Prices

Since it became known that the wheat crop would not come up to moderate expectations, prices--of foodstuffs in particular--began to rise. During last week, they continued to rise; and with them rose the tempers of the industrial workers in various parts of Russia. The true reason for the attitude of the industrial workers was to be found in the Government's declared policy of exporting grain. In order to maintain the advantages which have been secured from foreign recognition during the year, the Moscow Government declared it was indispensable to the country's in terests that grain should be exported. What was meant was that exports were necessary to balance imports; otherwise the returning foreign confidence in Russia would be shattered. The workers, however, could not see matters in this light and were interested solely in get ting enough to eat, which they declared would be the case if grain were left in the country. Evidence of much agitation among the workmen was seen in the increased activity of the Ogpu (secret police). The discovery of a committee to oppose the Government's grain-export policy was unearthed. This committee was engaged in exhorting the industrial workers, the railway men and the Red Army to thwart the Government, declaring that the latter was impervious to the dire distress of the hungry populace. One of its proclamations: "If the Government persists, let us respond with a general strike. Let us refuse to pay taxes. Let us defy the Ogpu's hireling bands. Let them fire on us; we shall have rifles and machine guns, too. Better to die rifle in hand than to swell with hunger and expire like dogs." The intense agitation on the part of the workers caused considerable nervousness among the Moscow Governmental hierarchy. Krassin, Kamenev and Zinoviev maintained that grain must be exported. Rykov, President of the Council of People's Commissaries, wavered. War Lord Trotzky thought it the height of folly to flout the people's wishes and recommended export of butter, timber, eggs, flax, oil to the West and of sugar to the East instead of export of grain. No decision was reached.