New-York tribune., 1915-03-23
BANKERS TO HELP
RUSSIAN DEBTORS
Seek Plan for Financing
Broader Trade with
United States

Russian exchange, because OF kue-
sia's enormous purchases OF war NUM-
ttons and other goods here. and because
Of the war-made difficulties in shipping
exports out of that country, has fallen
20 discount of 20 per cent. What
four rubles would do in normal tines
In paying off Russian debts TO Amer
leans now takes five rubtes TO do. As
a result American exporters 10 Russia
are having a great deal of trouble col
lecting what is owed them there, their
debtors in many cases declining TO meet
their obligations at the abnormal and
ruinous rate Of exchange.
Impressed by the urgent need of
remedying this. situation. the new COM
mercial attache 10 Petrograf, Henry
.. Baker, recently wrote TO a number
OF important banks in this country
pointing out that by cooperative ac-
tion both the United States and Russia
might be benefited and asking for in
formation and suggestions. In Satur-
days issue of Commerce Reports"
were printed number Of interesting
replies.
in his introduction 10 these letters
Mr.. Baker notes that in order to avoid
heavy loss by exchange in renting
money from Russia to the United
States, some American firms are keep
ing the proceeds of their sales on de-
posit with Russian banks. He suggests
that some plan be worked out for the
collection of accounts in Russia or for
giving credit there in such instances
as might seem justified. and for loan
ing to customers or to banks or 10
other responsible interests in Russia
which might desire TO borrow money
the cash proceeds of all sales pending
the period of the war. Another sug-
cestion. as an alternative, is TO ar
range a loan in New York TO respon-
sible Russian importers or to Russian
banks guaranteeing their accounts, so
that payment for goods purchased could
be made in this country direct.
Frank A. Vanderlip, president Of the
National City Bank, writing to Mr..
Baker, said that his institution had
early realized the opportunities for the
extension of Russo o-American trade
after the war. and had already organ
ized n department to collect informa-
tion about Russian business and."to be
useful at the right moment in this i'm
portant work" John f. Gardin, vice
president of the same bank and an au-
thority on foreign exchange. wrote that
the bank had done considerable bust
ness recently through Nladivostok, but
that the difficulty was not so much IN
getting money 10 that point as in get
ting merchandise out from Russia. The
bank, he said, had taken up the matter
with the Russo-Asiatic Bank, which
would make representations 10 the Rus.
sian government. John Z. Rovensky, OF
the National Bank of Commerce. said
that the principal difficulty in the situa-
tion was the refusal of Russian debtors
10 pay collections AT the present rate OF
exchange. William Donald, of the Han
over National, thought that If the tim
idity of shippers could be overcome di-
rect exchange between this country and
Russia would develop in place OF pay
ments through London or Paris.
Max May, vice president of the Guar
anty Trust Company, wrote that con-
siderable business had been done by his
institution with Russia during the last
few months, particularly in the export
of cotton, "for which, however, we are
20 be paid eventually by exchange on
London" Some of the Russian banks,
he said, carry accounts with the Guar
anty, and by crediting their account
here in dollars the Guaranty is able to
make such transfers to Russia, at
rate of exchange to be determined on
receipt of its advice in Petrograd or
Moscow, as it may be called upon to
furnish to its clients from time to time.
The Guaranty, he said, recognized that
eventually broader avenues for mutual
relationship between Russian and
American banks would have to be
opened, but while conditions were so
very much upset abroad it did not wish
to undertake business that was more
than ordinarily hazardous.
There were q large number of other
replies, some of them attributing the
difficulty Of making collections in Rus
sia to the existence of a moratorium
there. Altogether Mr. Baker quoted
twenty-five letters from well known
bankers.