The Washington herald., 1921-04-18
RUSS HOPE LIES
IN RED DEFEAT,
HUGHES CLAIMS
CONTINUED FROM PAGE ONE.

CONTINUED PROM PAGE ONE.
until credits may be
extended to Russia on a sound basis.
Tt should not be overlooked that
there has been a steady degenera-
tion in even those Industries in So
Wet Russia that were not dependent
upon imports Of either raw material
or partly finished products, nor in
which there has been any shortage
of labor. The Russian production
of coal. of iron and steel, of fax.
cotton, leather. lumber, sulphuric
acid. of copper. of agricultural prod
ucts, of textiles, and the mainte-
ment, have degenersted steadily
the time of the BolshevIk revolu-
tion.
War Not Blamed.
There can be no relation of the
failure of all these Industries TO
blocksdes or to civil war, for most or
them require no imports, and the
men modified since the Soviet rev.
olution were far less in number
than before that event.
During the existence of civil war
in Russia, her ports were in the
hands of anti-Soviet forces. How
ever. trade with the world through
Baltic ports was opened in April.
1920. Restrictions on direct trade
with Russia were removed by the
Unit d States on July S, 1920. The
conclusion of treaties of peace with
the Baltic states enabled Russia
freely to enter upon trade with Eu-
rope and the United States. Both
American and European goods have
been sold TO Russia. but the volume
of trade has been unimportant. due
to the inability OF Russia to pay
for imports.
Unable to Pay Cash.
AS suggested in your second
statement, II is true that agents
purportinE to be representatives or
the so-called Bolshevist Commits
sariat of Foreign Trade have placed
immense orders for the purchase of
goods in the United States. Europe
and Asia. 1t Is estimated that per-
hsps $500. 600. 900 worth of orders
have been booked. But shipments
as a result of these orders have been
made only in small volume. because
the Soviet agents were unable either
to pay cash or to obtain credit so as
to insure the delivery of the goods
ordered.
The actual results of the placing
OF these immense orders on the part
Of the Soviet regime has not. there
fore. materially stimulated industry
in the countries in which the orders
were placed. but has chiefly resulted
in further impairing the credit of
the Soviet regime. due to its inabif-
ty TO carry out the transactions
which IT has undertaken.
Russian Gold.
Much has been written about the
large sums of Russian gold which
have found their way abroad in ex-
change for foreign goods. In real
ity. such transfers of gold have
been relatively small. According to
the most liberal estimates the
Soviet authorities do not now have
in their possession more than sl75,-
100000 worth of gold.
TT is apparent that the proper
tionate share OF this amount of gold
which might be expected to reach
the United States and even the i'm
mediate expenditure Of all Of this
amount of gold in the United
States. would not have a pronounced
or lasting effect upon the advance
ment of American industry and
trade. while its loss to Russia
would take away the scant hope
that is left of a sound reorganizs-
tion of the Russian system OF cur
rency and finance"
After stating that there is no re-
striction existing on the importa-
tion of Russian gold into the United
States. Secretary Hughes continues,
1T has often been stated that " the
government OF the United States
would recognize the so-called Soviet
government. Russia would imme-
diately export immense quantities
of lumber. fax. hemp, fur and
other commodities. The facts in re-
gard to supplies in Russia complete
II refute such statements. Russia
does not today have on hand for ex-
port commodities which might be
made :he basis of Immediately
profitable trade with the United
States.
Transport Inadequate.
Furthermore. the transportation
system is utterly inadequate to
move any large quantity of good
either in the interior of Russia or to
Russian ports. The export Of such
commodities as exist in Russia at
the present time would result mere
ly in further increasing the misery
of the Russian people.
Numerous statistics are cited by
Secretary Hughes from Economic
Life, an Official organ OF the Soviet
government. to show that even in
the commodities of which the coun-
try is richest, production averages
less than one-fifth of the prevail
level
American trade with Russian be-
fore the war, he points out. totalled
s55,7so,43l in 1918. Excluding Fin
land, the Baltic states. Armenia,
Georgia and Siberia. for the periods
when they have been free of Soviet
Secretary Hughes con-
tinues, "the trade of the United
States with Russia during 1920 was
absolutely negligible, probably
amounting to less than $4,000
Though figures for trade with
Russia during that period are not
available. there is every reason 90
believe that IT was OF far less rela-
tive Importance than in 1919.
TT Is unquestionably desirable
he states in conclusion, that in
innate and mutually profitable COM
mercial relations on extensive scale
be- established between the United
States and Russia, and II is the sin
cere hope of this government that
there may be readjustments in Rus.
sia which, will make II possible for
that country to resume its proper