and to an increase in contradictions in economic and social relations.
With the assumption of local trade turnover, the permitting of private business activities, and the restoration of the market throughout the country, a link between town and village was ensured. A crucial role in this success was also played by the transfer of state enterprises to commercial settlements.
The wide introduction of economic calculation was hindered by a number of reasons: lack of fixed and circulating assets, economically trained personnel, lack of developed supply and sales staff, long unprofitability of enterprises in the revived heavy industry, etc.
Many of these transferred businesses in the South Urals were practically unable to operate on a self-financing and payback basis. As a result, state enterprises began to be united into trusts. More often than not, enterprises producing homogeneous products or dissimilar but technologically connected with each other were united. The trusts were fully responsible for the organization of production and sales, performance of annual tasks and quality of products.
It was the trust, especially in the mid-20s, that was a legal entity and a subject of independent property rights. Enterprises that were part of it, the rights of legal entity, industrial, commercial and financial independence did not have. As the main industrial self-accounting unit, the trust existed for about 9 years.
If at the beginning of the new economic policy trusts are autonomous and operatively independent units of “socialist” sector of production, then since 1927 they have been turning into economic agents of the state, performing planned tasks. Potential possibilities of trusts as participants of market relations were not used also due to a number of other objective reasons. In particular, due to their underdeveloped logistics and sales system, they could not become either a fullfledged seller or a buyer in the market.
Having realized the insoluble problem of material support and sale of finished products by their own efforts, the trusts on their own initiative began to create such economic organizations as syndicates. Syndicate forms of state industry organization in the South Urals emerged in March 1921 – January 1923.
Syndicates were associations of voluntary type, which built their relations with the trusts on contractual commercial grounds.
Syndicate capital was formed by bank loans, government loans, mutual funds from trusts and share issues. The main functions of syndicates were to assist their trust shareholders in selling finished products and providing them with materials, semi-finished products, raw materials and fuel. The activities of syndicates were built on a commercial basis (i.e., they were paid for). Their employees were interested in making a profit.
In the very first years of their existence in the South Urals neither trusts nor syndicates were able to cope with the task of organizing an increasingly large trade turnover (especially in terms of territory). There were no competent state bodies which would be engaged at due level in studying of the nascent market, an account of demand and supply, effective regulation of commodity streams within cities, counties, provinces (oblasts), republics, the country as a whole.
Occurrence, development and liquidation of the syndicate form of wholesale and exchange trade is explained by changes in the position and role of the state trade system in the country’s economy. They functioned until the state wholesale and wholesale and retail trade strengthened. The paradox is that they themselves contributed to it to the maximum extent possible.
Cooperation has played a bigger role in the implementation of the new economic policy in the South Urals aimed at establishing commodity and market links between town and village than state trade.
At the beginning of the new economic policy, all the main types of cooperation (consumer, agricultural, handicrafts) were merged into one consumer cooperative, because they were engaged in the same thing – preparation and distribution of products.
The consumer cooperative society became an integral part of the state overlapping distribution apparatus. Deprived of any initiative and independence within it, it slowly agonized. In an environment of increasing commodity hunger, many cooperatives were ceasing their activities. In order to revive the cooperation, various activities were developed and implemented.
The cooperation was given greater opportunities to participate in procurement and sales operations, it was given the opportunity to participate in procurement and sales operations on the basis of leases, nationalized enterprises were transferred to it on the basis of leases, credit operations of cooperative institutions were supported with the help of state loans, etc. However, the reality was that cooperative associations had to rely on their own resources, the shareholders’ funds.
In 1929, construction began in the South Urals, in the Chelyabinsk region of Magnitogorsk Metallurgical Plant, which was part of a new coal-metallurgical base in the east – the Urals-Kuzbass. Magnitogorsk combine – a complex enterprise with a complete metallurgical cycle. Construction of the plant is carried out at a rapid pace. On May 15, 1931 operation of mine began, and on January 31, 1932 the first blast furnace was blown out.
The newspaper “Smychka” for January 1930 writes: “From the conference on the study of productive forces of the Sredne Volga region, the Orenburg district was part of the Sredne Volga region at the time with the center in Samara,” … Run on the map of the Sredne Volga…Recently, just a few years ago, in the sleepy steppes and gloomy ledges of the Orenburg Okrug mountains, there appeared people with strange instruments, drilling machines, drilling the obese body of the earth, extracting its insides. And in them found the wealth of the region.
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