The Russian Review/Volume 1/June 1916/The Questions of Commerce and Industry in the Douma

The Questions of Commerce and Industry in the Douma.

In the course of the recent discussion in the Douma of the budget of the Ministry of Commerce and Industry, the head of this Ministry, Prince V. N. Shakhovskoy, delivered a speech in which he described the work done recently by the Government for the purpose of facilitating the country's development along the lines of commerce and industry. The speech, as reported by a Petrograd newspaper, was substantially as follows:

The only solution of the country's future financial difficulties will be in the greatest possible development of the productive forces of Russia, a development of her industry, the improvement of her rural economy. For a successful realization of the Government measures now under consideration it would be necessary to permit private initiative greater freedom of action. Russia's future policy of international trade will have to rest upon a rational system of tariff regulation. The Ministry has already introduced several measures in this direction; for example, the importation of goods from countries at war with Russia has been forbidden, several articles of luxury have been taxed very highly, etc. This question of importation of the articles of luxury will be taken up again by the Government.

However, it must be borne in mind that in the consideration of a question of this kind it is necessary to take into account not only our desires in the matter, but the international treaties which are now in operation. The Ministry agrees with the point of view expressed by the Russian "industrials" concerning the necessity of Government orders for the purpose of a development of several branches of home industry. But the Ministry does not consider the necessity of Russian industry as identical with the often excessive claims of the Russian industrial workers.

The Ministry has prepared a series of measures introducing improvements into regulations concerning corporations. The present statutes on corporations are being studied with the view of recasting them for future needs. One of the pressing problems which interest the Ministry is the struggle against red tape. Measures have been adopted for regulation in the transportation of coal. A special committee has been appointed to assist in a development of gold mining. The activity of the Ministry in the department of mining generally has increased 150% in 1915 as compared with 1913, and it is expected that the increase will continue in 1916. The question of supplying the mines belonging to the Crown with labor has been solved satisfactorily. A plan has been put in operation for training students of higher institutions with the purpose of making them specialists in mining fields. The metallurgical factories operated by the Crown, which were run at a deficit in 1910, brought in a profit of 6,500,000 roubles in 1915.

A plan for workingmen's insurance is almost ready. The Ministry is also considering the question of introducing old age and invalidity insurance and is working on the problem of extending the statutes concerning the protection of labor to smaller industrial enterprises. A bill for the creation of special labor bureaus as permanent institutions is almost completed. In view of the constantly increasing demands on the part of labor for higher wages, plans have been proposed for the organization of a conciliation board. However, the creation of such boards would be possible only if professional unions and societies were to exist. It must be noted in connection with this that the conditions of the war time are hardly suitable for a development of professional labor organizations. This is a circumstance that hampers considerably the introduction of a system of conciliation in labor disputes. It seems desirable, however, to begin the introduction of a system of conciliation in certain industries, but any plan of this kind would have to be discussed by legislative bodies. The bills concerning consumers' leagues and cooperative organizations will soon be introduced in the Douma. The Ministry expects to change the existing commercial code gradually by introducing new laws in separate fields of industrial life. For the purpose of combating arbitrary inflation of prices, several committees have been appointed to regulate prices in such industries as cotton goods, cloth, hemp, and leather, and the results of their efforts in this direction have been quite satisfactory. The Ministry is at work now upon an extended program of harbor improvement and ship building. At present, work is being done for the improvement of the ports of Rostov, Marioupol and several other southern sea-towns. The Ministry is also working on a bill providing for higher technical schools which will be introduced in the Douma in a short time.

The Minister's speech was followed by a discussion in which several deputies took part. The most interesting speech was delivered by Deputy A. A. Bublikov, who criticised very sharply the lack of activity on the part of the Ministry of Commerce and Industry. His contention was that too little attention is paid in Russia to these two most important sides of the economic life of the country. As a proof of this he pointed out the fact that despite its very short period of existence the Ministry has already had eight heads, none of whom has been a specialist in his field. He quoted the present Minister as saying at the last Congress of Representatives of Commerce and Industry, "When I received the first intimation of my possible appointment, I began to think of the questions of industry and commerce." According to Bublikov, such a statement is very typical of the kind of men that Russia has had at the head of this Ministry.

The Douma decided to accept the proposed budget as presented by the Budget Committee and to make the following proposals: To develop the system of trade schools in the country; to help the development of Russian industry by improving the conditions, of labor; to take measures against the activity of syndicates supported by banks; to introduce a system of stricter regulations in the matter of granting patents to the subjects of countries now at war with Russia; and to prevent German and Austrian subjects and their representatives from taking undue advantage, after the War, of the patent privileges which they already enjoy.