The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-04-18
SOVIET RUSSIA A.
GIGANTIC VACUUM.
IS THE OPINION.
OF JUDGE HUGHES.
Secretary of State Advises
GOmpers That U. S. Will
Not Entertain Diplo-
matte Relations
LAND OF BIG BEAR
IN BAD COMMERCIALLY
NEEDS EVERYTHING BUT HAS
NOT THE NECESSARY PURCHAS-
ING POWER TO SUPPLY
ESSENTIALS.
LAND OF BIG BEAR
IN BAD COMMERCIALLY

Washington. April 1S-Secretary
hughes writing TO Samuel Gompers,
president of the American Federation
Of Labor, who asked for u statement
of the facts" regarding Russia, indi-
Gates definitely that there is no pros
pect of resumption of relations with
the United States while the soviet poll
tical and economic system remains.
The letter Of the secretary Of state
makes direct reply to various state
ments. characterized as propaganda,
contend that resumption Of relations,
trade or political, with the soviets,
would open a great current of trade
advantage to the United States and
that large shipments of Russian gold
have already been made to other coun-
tries in payment for goods
Soviet Russia, Secretary Hughes de-
clares, SIS a gigantic economic vac.
uum," and he adds that mo evidence
exists that the unfortunate situation is
likely TO be alleviated so long as the
present political and economic systems
continue"
Taking up specifically the charge
that the scarcity of goods in Russia is
due to the blockade which was reserved
July IS. 1920. and the statement that
the demand for manufactured goods in
Russia Is so great and the purchasing
power OF the soviets so vast that it Is
almost impossible to determine the ca
pacity of the Russian market to inn
ports, Secretary Hughes wrote:
Though there is almost no limit to
the amount and variety of commodities
urgently needed by Russia, the pur-
chasing power Of that country is now
at a premium. and the demand must
consequently remain unsatisfied. The
attitude and action of the present au.
thorities of Russia, have tended to un-
dermine its political and economic rela-
tons with other countries. The Rus
sian people are unable to obtain credit
which might otherwise be based on
the vast potential wealth of Russia and
are compelled to be deprived OF commo-
dities Immediately necessary for con-
sumption. raw materials and perman-
ent productive equipment IT should
not he overlooked that there has been
u steady degeneration in even those in
dustrieS in soviet Russia that We're not
dependent upon imports of either raw
material or partly finished products,
nor in which has there been any short
age Of labor. There can be- no relation
OF the failure of all these industries 10
blockades or civil war, for most Of
them require no imports, and the men
mobilized since the soviet revolution
were far less in number than before
that event
Restrictions on direct trade with
Russia were removed by the United
States on July s. 1920. The conclu-
sion of treaties of peace with the Bal
tic states enabled Russia freely To en-
ter upon trade with Europe and the
United States. Both American and Eu.
ropean goods have been sold In Rus.
sia but the volume of trade has been
unlmportant. due TO the inability of
Russia to pay for imports.
1T is true that agents purporting to
be representatives of the So-called boil
shevist commissiariat of foreign trade
have placed immense orders for the
purchase OF goods in the United states.
Europe and Asia, II Is estimated that
perhaps six and one half billion dol.
lars worth OF orders have been booked.
But shipments, rs result OF these ord.
crs. have been made only In small vol
ume because the soviet agents were un-
able To pay cash or 10 obtain credit so
US TO ensure the delivery of goods ord
cred"
"In reality" Secretary Hughes says,
transfers of Russian gold To other
countries have been small and ut the
most liberal estimates the soviets have
not more than $l75.000.O00 of gold in
their possession" Even the immediate
expenditure of the whole amount IN
the United States. he points out would
have no pronounced or lasting effect
on American trade or industry. and 1t
might take away the scant hope that
IL left OF sound reorganization OF the
Russian system Of currency and fin
ance."
There have been since December IS.
1920. Secretary Hughes informed Mr.
Gompcrs, no restrictions on financial
transactions between the United states
and Russia, although there is no as
suranoe that the mint or the reserve
banks will accept Russian gold, as pub
lie institutions must be assured that
title Ia not open TO question.
"Thc facts" in regard To supplies In
Russia available for EXPORT" NJ.
Hughes wrote. completely refute"
eta,cments that IL the United States
recognized the soviets, Russia imme-
uiatey would export large quantities OF
lumber. flax, hemp. fur and other cont
,nodities.
.sn,,., f,,t, ha unVg Urhnvs that
Russia does not have on hand for OK.
port. commodities which might be made
ihe basis of Immediately profitable
trade with the United States aud h.
adds that the Russian transportation
system IL so demoralizcd, that II could
mot meye them II they existed"
1ondon.-Sunday brought additional