The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-02
BANKS SUSPECT
SOVIETS AT RIGA
Mild Peace Terms Proposed
Have Bad Effect on Values
Of Securities.
MOSCOW PLANS FEARED
Paris Reports Many Divisions
on Way to Attack Wrangel
in Winter Campaign.
By LAURENCE HILLS,
staff Correspondent Of THE HERALD.

staff Correspondent Of THE HERALD.
Copvri0ht, 1920 bu THE NEW YoEK HERALD
PARIS. Oct. 1.-The extraordinary
modification of the Russian peace terms
to Poland. reported from Riga during
the last two days, is having curious
effect in this part of Europe. Instead
of enhancing the value of French and
other Continental securities it Is in
creasing the timidity Of bankers, who
fear events are taking place behind
the Russian curtain which, during the
approaching winter. will cause new
complications which will be reflected
in the financial markets.
Conversations which THE HERALD
correspondent has had with leading
bankers show that the values of Sc
cu.ities on the Continent to-day are
hanging. not on the carrying out of
the terms of the treaty of Versailles
or on the outcome of the International
Financial Congress in Brussels. but on
the Bolshevist situation. This is
particularly true of the forthcoming
French loan. whose appeal to investors
as per cent. investment and it's
success depends, as bankers here see
1t, more on the Lenine- Trotzky pro-
gramme than on the Berlin Govern
ment.
The unexpected mildness Of the Rus
3lan peace delegation in Riga, coupled
with private advices reaching here. has
convinced many persons IN Paris that
the Russian Bolshevist army is about
10 be diverted to the south TO crush Gen
Baron Peter Wrangel. winter conditions
there being more favorable for fighting
than In the north.
Private advices to the French General
Staff show many Russian divisions are
on their way to the southern front to
engage the Wrangel forces. This is
copying the old Russian tactics which
crushed Gen. Denikine. after which the
Bolsheviki again turned on the Poles
Therefore. 1t is held here. a Russo
Polish peace treaty resulting from this
submissive attitude on the part Of the
Soviet leaders will be nothing more than
n truce.
Gen. WrangePs position. despite his
successes recently. Is not considered as
free from peril. for he has fewer re-
sources than Gen. Denikine had, and the
French. having sent so much material
to Poland are unable to help him save
WITH technical advice. Should Gen
Wrangel he crushed this winter. the re-
81 Ould be serious all over Europe.
Military observers say that the
evacuation OF Baku by the Reds was
part of the plan to crush Wrangel. The
Soviet programme Is TO pursue the mill
tary campaign during the winter months
in southern Russia and in Russia In
.Nsla, meanwhile subjecting all Occidental
nations to u redoubled propaganda
offensive
Soviet literature is now pouring into
France, Italy and Czecho-Slovakia. the
latter country being under particu-
larly heavy fire in an effort to break
he economic barrier system by playing
on Slavic patriotism. Latest issues OF
Soviet journals In Moscow indicate that
I.enlne has issued orders to Bolshevist
agents In all allied countries that they
ere to continue their propaganda with
renewed vigor and not to believe "capi-
talistic prophecies" that Sovieusm Is on
the road to destruction.
Despite the setbacks due TO interior
defects, which are being remedied. says
i.cnine, Sovietism Is going to dominate
Europe next year.
should the Poles agree to make peace
with Soviet Russia Wrangel would be
left isolated and France alone cannot
assis- him materially. There is no doubt
that the French Government wishes
Washington would recognize Wrangel.
believing II would help him Withstand
the expected Red offensive