Michael S. Farbman

“ The fact is that Russia's industry was well-nigh destroyed before the Revolution; and the character and causes of her economic exhaustion during the war had very little in common with the economic sufferings of other belligerent countries. The other belligerent countries have suffered only from a gradual diminution of their resources in raw materials and foodstuffs, while the technical basis of their economic organisation remains unshaken. Nay more, one of the most striking phenomena of the war is seen in the enormous increase in the productivity of the countries at war. ”

“ For example, the growth of machinery and plant in this country during the past three years has been absolutely unequalled. Never before was such a rapid increase recorded. In Russia, although as a matter of fact the productivity did greatly increase in the early years of the war, there was no corresponding increase of machinery and plant. Hence the increase in productivity could not but have the effect of wearing out her industries and leading towards a breakdown. ”

“ Attrition as an economic term is well known, but the world never had such a striking example of it as in the effect of two years of war on Russia's economic life. The isolation of Russia, which practically prevented worn-out machinery from being replaced; the enormously increased demands of the war on factories and railways; and the early breakdown of repair shops—all these contributed to increase depreciation to an almost destructive magnitude. ”