Letter to Yevgeni Preobrazhensky, Before November 3, 1921

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The notes were written in connection with the preparation for denomination as a means of regulating the currency of money and stabilising the ruble. Under a CPC decree of November 3, 192!, one ruble of the new issue was equal to 10,000 of the old issues (see Izvestia VTslK No. 263, November 26, 1921).

1

Let’s have the figure:

1) how many-fold will your denomination increase the emission?

2) Why not (later) worsen the quality of the bank-notes to speed up their self-liquidation?

2

Your arguments against the module 1 : 50,000:

1) the worker will receive 25,000 rubles=1/4 ruble!!

2) the price of gold will be disproportional.

And with 10,000?

1) the worker will receive 25,000 rubles=2 1/2 rubles. All-Russia CEC members receive 27,000=2 rubles 70 kopeks a month,

2) gold?

Does not your argument boil down in essence to the need to keep open the possibility to yet another “retreat” when we put paper on a par with gold (within a year, two, etc.) only after the exchange rate of the ruble is consolidated?

Meanwhile

a) there is need for an emission

b) 1 : 10,000==cautious probe, “probing the soil”.

3

1) Semyon Yenukidze has calculated:

roughly the same quantity of paper (13,000 and 12,000 poods) gives

4,500 thousand million old rubles, and 457 million new ones, i.e., the same 4,500 thousand million old ones.

Is that so?

What, does it give us?

2) Isn’t it better to use bad paper to allow the issued money to be self-liquidated faster?