The sun., 1919-09-17
ABLE TO PAY IN GOLD
Only Country in Europe That
Can Absorb Surplus on
Satisfactory Basis.
by GEORGE J. KwAsHA.

from any political sympathies and anti
pathies. Let US talk plain business Ian
guage. After all, the business stand
point is the only one which counts in
foreign relations.
The United States badly needs nova
days foreign markets for the surplus Of
her production. No matter how badly
Europe needs American products she is
not a very reliable buyer The stock
exchange rates of European belligerent
are going from bad to worse.
European countries have nothing to pay
with to the American seller because. for
tee time being, Europe has very little
to export to the United States. To
avoid any further depreciation of their
money. European countries can pay the
American seller only with money lent
by America. But America cannot lend
particularly under the ex-
listing abnormal conditions In Europe.
OF course, to refuse Europe any loan
would be equivalent to a catastrophe
because she cannot exist on her own re-
sources and must get help from America
during the trial days Of reconstruction.
But this help cannot be unlimited, the
loans cannot be extraordinary.
No matter how generously the Ameri-
can bankers would lend money to Euro
pean countries the latter must confine
their purchases in the United States to
the most necessary things, as foodstuffs.
coal, &C. Europe cannot afford to i'm
port manufactured goods from the
United States in amounts equal to the
surplus production OF the latter country
American manufacturers badly need
markets for their products Without
thu same American industry will sooner
0r later find herself at deadlock, ana
cannot avoid an Industrial crisis which
nowadays may be fraught with very un-
desirable consequences The iron and
steel exports, for instance, for July
amounted to only 2S7,S23 gross tons,
which was only about SO per cent of the
June tonnage. Needless tos ay that I'M
der the above mentioned financial con-
ditions OF European countries the ex-
ports from the United States cannot be
augmented. On the con-
trary. they will doubtless decrease un-
less new outlets for American goods are
opened.
At the same time Russia represents a
very large market for American exports.
She needs railway materials. every kind
cotton manufactured goods, boots, &C.
Russia Able to Pay.
According to official data OF the Rus
sian Soviet Government Immediately af-
ter removal of the blockade, the initial
purchases on the United States market
would amount to more than $500, 900, 900
(railway materials for $3.50, 000, 900 ag-
ricultural implements for 100000
&C.,. or all belligerent countries on the
Eastern Hemisphere Russia is the only
one which is able to pay. She is ready
to pay with gold and raw materials, OF
which large amounts have been accumu-
lated, and are cut of from the outside
world, which needs them very badly.
There is now in Russia ready for ship
ment about half a billion pounds of fax,
nearly quarter Of a billion pounds of
hemp. considerable amounts of hides,
furs, seeds, platinum and practically I'M
limited amounts of lumber.
Why does the United States yoluntar-
lily deprive itself OF the privilege of do
ing business with Russia, to their mu-
tual benefit As a matter of fact, the
United States is the only country which
is absolutely cut off from the Russian
market. There is no secret that Sweden,
Holland, Denmark Germany and other
European countries prefer to do business
with Soviet Russia, instead OF blockad-
ing her. They understand that 1t is not
reasonable to miss the opportunity of
entering into relations with Russia, no
matter what kind Of Government she
has.
1t is interesting to state that England
herself, whose Government is the most
ardent supporter of the blockade of Rus
sia, does not deprive herself Of the privi-
lege OF doing business with Russia
England now controls all the export and
Import OF northern Russia, of Caucasus
and part OF southern Russia. 1t is
England that improvised. among others,
the so-called North Russian Govern
ment, headed by Stepan Lianosoff,
whose big oil wells in Caucasus were
bought by English concerns. 1t is Eng
land that bought the greatest Caucasian
oil wells. owned by Nobel.
England is well aware OF the perman-
ent importance of the Russian market.
and Is doing her best to eliminate every
possible competitor. including the United
states. 1t is needless to emphasize that
the latter will need Russia's market for
her products. and Russia. In turn, would
be consumer of American manufactures
for years to come.
Before the war, America shared little
In the Russian import, which, on the
average, amounted to about $500, 00O.-
0O0 In 1918, the direct exports from the
United States to Russia totalled about
S25,000,O00. During the war, the exports
from the United States to Russia in
creased considerably.
Figures ON Exports to Russia.
According to the data published in the
June Issue or the Monthly Summary Of
Foreign Commerce of the United States.
the exports from the United States TO
Russia european and Asiatic) totalled,
in 1917, about s560.0OO. 900, and only
$50, 100000 in 1919 (of the latter amount.
the import into European Russia totalled
about $ll,o00.000, in Asiatic Russia,
about sal, 900. 00O).
These figures are very eloauent and
do not need any commentaries
1t Is necessary to emphasize that the
Increase of the export from the United
States to Russia was not only on ac-
count of war materials, but also of
machinery. implements and materials
for civil use. such as mining machinery.
wire ropes, caustic soda, medicaments
&C, which heretofore were imported ex-
clusively from England and Germany.
What is the sense of losing the oppor-
tunity of winning the Russian market
when the blockade is effective only for
American goods?
The real removal of the blockade Of
Russia Is not only the way of finding
an outlet for Americas surplus produce
ton OF to-day, but also the unique on
portunity OF winning the Russian market
which America will need very badly for
years to come. OF course we are told
that there is no blockade OF Soviet Rus.
sia by the United States, but as a