Diplomatic Transcription
Is Christianity given up, or, at all events, considering what is going on in many parts of the world, is the Divine Christian Doctrine quite given up?
Terrible accounts reach us every day of children dying from want of necessary food, of hundreds of people unable to get indispensable fuel, food, and warm clothing, in bitterest cold, as the present year has been exceptionally hard to bear.
On the other hand, one hears great fortunes are made, precisely thanks to these deplorable conditions of life.
Surely something is rotten in the State of Denmark. Not only generous and kind people are wanted at this moment to help and save, but what is also indispensable—intelligent, cultivated, determined characters are required, and as a Russian Greek Orthodox I may be pardoned if I add: people permeated with devotion to Christian duty. But what do we hear instead? I hear, for instance, that in our lifetime an American milliardaire invited his milliardaires friends to a meeting when it was declared that the best members of a Cabinet, as heads of the Administration, ought to be milliardaires like themselves, in other words, the only power at the head of a country should be, according to their idea; only money, only thirst for money, and disregard and contempt of the ethical means. In fact, these are now declared almost silly and scoffed at. These cynical doctrines, though discussed privately, almost in secret, became, however, known, and national indignation was felt in the circles poor in money though rich in better qualities such as real patriotism, real compassion and love, real justice, and fair play. The milliardaires dared not press the scheme and it fell through rapidly. In this case, the minority was wrong and the majority was right. Vox populi has actually become Vox Dei. But strangely enough, this awful doctrine captivated the mind of the present ruler of Germany and the Kaiser, on receiving the milliardaire, Rhodes enthusiastically exclaimed in embracing the King of Gold. “How I deplore not to have Ministers like you!” There can be no doubt as to the sincerity of His Majesty in that case. But when traces in that direction of despotic greed manifest themselves, I think it the duty of everyone to study earnestly the ways and means of those who suddenly become tremendously wealthy, whilst others in consequence, and nearly in the same proportion, are deprived of the most urgent necessities for maintaining an honourable and honest life. Naturally, you hear all sorts of arguments calculated to minimize that opposition. The question is insisted upon: what are the real necessities of life? This of course is a difficult question depending on private cases which cannot be solved theoretically in a general way, and in which the interference of a wise and well informed Government can be of great use and help, and should despotically step in at once.
Of course, every country has her own peculiar features, habits, and traditions, which ought to be considered. I, for one, think it almost a duty to repeat openly and frankly what I hear in Russia about the monstrous rise in prices. My personal ignorance for solution of these vital problems must not prevent my faithful reproduction of opinions expressed by people less ignorant than myself. At any rate, this is what is said about the tremendous rise in prices for all the unquestionably urgent daily necessities of life.
As all the countries are fighting this same evil of dearness of living, it may be interesting to record what measures are recommended in Russia.
A very good Petrograd paper called Kolokol (The Bell) introduces to its readers the views of an engineer, Mr. Emilianoff, on the above question brûlante of the moment.
In view of the diminution in the export trade on account of the war, enormous stores of corn and wheat and kindred products have remained in Russia, and should consequently have fallen in price. An astonishing contradiction, however, stares us in the face in the shape of a positive riot of high prices. Obviously, this abnormal state of affairs is simply the outcome of unbridled speculation.
THOSE BANEFUL SYNDICATES
Almost all Russian trade is in the hands of syndicates that regulate prices and the extent of production. The most baneful of these syndicates are those connected with raw produce since by artificially raising the prices of goods that are indispensable for purposes of manufacture their influence reacts severely upon the entire trade of the country.
WHERE THERE ARE NO SYNDICATES
In the few cases where there are no syndicates the principal part is played by speculating Trade Banks and “agreements” or contracts with local wholesale merchants. Actually, by law, banks have no right to occupy themselves with trading operations, yet by granting loans to the extent of 99 per cent the banks become the proprietors of the goods. Such speculations can buy any product they please, keep it in its warehouses and only allow limited quantities at a time to reach the market. To compete with banks is impossible. The Government bank pays us no interest at all on current accounts, and for this reason the general public puts its money into private banks that do pay interest. Consequently these private banks have the command of enormous resources, which they can put to any use they please. The present sugar famine, for instance, is the result of the concentration in the hands of private bankers of the shares of the largest number of the most important sugar factories. They have gradually obtained possession of the shares and taking advantage of their influence they raise the price of sugar and even go so far as to limit its supply on the market. Why could the Government not compete with private undertakings and pay interest? Would that not paralyze the monopoly of private banks?
THE ROLE OF THE BANKS
Even before the war the banks had become the masters of Russian trade and had forced various trading undertakings to form themselves into syndicates. Their aims and objects can always be easily attained by a simple threat to stop or refuse credit, which they can very well do since the banks are themselves organized in syndicates to support each other. All this is a crying evil, since it renders trading enterprises important to the banks not for their own sake, but simply as speculations.
Moreover, Russian banks depend, to a great extent, on foreign banks, German ones among others, which have taken over large numbers of Russian shares, and consequently, the Russian banks are obliged to follow the policy dictated to them from abroad, which results in the raising of prices and the limiting of Russian production. The cramping of Russian trade by syndicates has made the Russian market more accessible to German products introduced by German Jew syndicates.
This is easy to explain: In Russia production was limited and prices raised to such a point that, despite customs duties, German merchandise was sold in Russia with high profit for the Germans, and as supply of Russian goods was far too small to meet the demands the insufficiency was filled by German manufactures.
WHAT THE RUSSIAN IMPERIAL BANK MIGHT DO
A friend of mine, who advocates energetic and drastic measures says, “The position is far from being so helpless as some people like to describe.” In fact there is a splendid measure that the Government could take at once. The Russian Imperial Bank gives almost no percentage on current accounts. Private banks, on the contrary, advance money on all sorts of securities quite easily. If the Imperial Bank became as obliging as the private banks, the Government bank naturally being infinitely more trustworthy than private banks would get millions of money and stop the greed of the other banks. In fact, the first would muzzle the second! A measure of this kind might be taken for a limited term of years; it would in reality be a kind of War Loan nothing more!
Of course, perhaps the above scheme is foolish and impracticable, but when a phrase begins with “Here is a measure which can help Russia.” I give up hesitation and doubt and offer it to the scientific judgment of all those who possess that enviable power.
A PAINFUL ANALOGY
There is however, a painful analogy between the case of Russia and England in the dependence of both countries before the war to German supplies.
There is another dangerous side to the syndicate system. Before the war Russia produced much too little to meet her own demands, and her supplies were too much dependent on Germany. Consequently, when the war began, we suddenly found ourselves, thanks to the syndicates, deprived of even such things as were indispensable to the country in every respect.
THE POLITICAL INFLUENCE OF THE SYNDICATES
Nor can one shut one’s eyes to the political side of the syndicates. One need only turn to the present dearth of coal, iron, and other products, to convince oneself how serious is the systematic wholesale seizure by the banks of the most profitable trading enterprises, and how successfully they clip in the bud any new undertakings that might tend to cheapen the products concerned. There is in Russia an unlimited wealth of coal and iron, but there is never a sufficient supply of these commodities, and their price is always rising, simply because the banks are interested in preventing the formation of new foundries and mining enterprises.
Let us remember that at the beginning of the war the directors of very many Russian banks turned out to be Germans, who undoubtedly acted in every way in their own interests. Such banks, of course, support and give credit principally to German enterprises in Russia and turn Russian undertakings into syndicates in the interests of German trade.
All this points to one great fact—that syndicates agreements bankers trade speculation are chiefly responsible for the present rise in prices that is causing so much poverty and suffering. With the cheapening of the necessities of life, the burden of this terrible war would be far lighter and more bearable.
Of course, the enormous size of the Russian Empire precludes a sufficient number of railway communications. There is a scheme to rectify this deficiency—and the sooner the better.
Happily, Russia is rich, and her colossal natural wealth will suffice to regulate the conditions of her trade. When this has been done and the German element struck out things will take their natural course and the present artificial rise of prices will be at an end.
I wonder whether in other countries, where the prices for necessaries have likewise risen in such an exorbitant manner the banks and syndicates are exercising a similar baneful influence.
Everybody should do his very best to stop the calamity, the victims of which, it must always be remembered, are the families of those heroes who sacrificed their lives for their duty and the honour and glory of their country.
PHYSICAL NEEDS AND MORAL COMFORT
We must remember that whilst our troops sacrifice their blood, their health, their very lives, for the benefit of their country; those who remain at home and have the means to help must realize that their first duty is not only to send food, clothing, and munitions, to the front, but that they also must guarantee, beyond all possible doubt, that the families of the soldiers are not suffering from cold, neglect, and miseries of every sort. Even more important than physical needs is sometimes moral comfort.
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Citation
Novikoff, Olga. “The Inexcusable Sin in Time of War.” Asiatic Review 8, no. 24 (May 15, 1916): 381–87. Also published as “The Unpardonable Sin in Time of War" in On the Eve of Russia’s Revolution (London: East and West, 1917), 13–19.