The Birmingham age-herald., 1921-04-18
NO PROSPECT OF J. S.-RUSS TRADE,
 DECLARES HUGHES
Says Statements That Trade Relations Would Be of Ad- vantage to America Is
 Mere Propaganda
By Associated Pr.s.


 Washington, April 17.-secretary Hughes, writing to Samuel Gompers president of the American Federation of Labor, who asked for a statement of "the facts regarding Russia, indicated definitely there is no prospect of re- sumption of relations with the United States while the soviet political and eco romic system remains. The letter Of the Secretary of State makes direct re- ply to various statements, characterized as propaganda, which contend that re- sumption of relations with the United States while the soviet political and economic system remains. The letter of the Secretary of State makes direct reply to various statements, character ized as propaganda, which contend that resumption of relations, trade or political, with the soviets, would open a great current of trade of advantage to the United States and that large shipments of Russian gold have all ready Been made to other countries in payment of goods.
 Soviet Russia, Secretary Hughes de- sclares, is a gigantic economic vacuum . and he adds that mo evidence exists that the unfortunate situation is likely to be alleviated so long as the present political ane economic sys- tenn continues
 Taking up specifically the charge that the scarcity of goods in Russia is due to the blockade which was re- moved July 8, 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 capacity of the Russian market to imports, Secre tary Hughes wrote:
 NOT ABLE TO BUY
 Though there is almost no limit to the amount and variety of commod- ities urgently needed by Russia, the purchasing power of that country is now at minimum and the demand must consequently remain unsatis- fled.
 ''The attitude and action of the pres ent authorities in Russia have tended to undermine it's politIcal and econ ornic relations with other countries The Russian people are unable to ob- tain credit which might otherwise be based on the vast potential wealth of Russia and are compelled to be de- prived of commodities immediately necessary for consumption, raw ma terials and permanent productive s equipment 1t should not be overlooked that there has been steady degeneration in even those in- dustries in soviet Russia that were 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 re- lation of the failure of all these in- dustries to blockades or civil war, for most of them require no imports and the men mobilized since the soviet rev olution were far less in number than before that event.
 ALL RESTRICTIONS REMOVED
 Restrictions on direct trade with Russia were removed by the United States on July 8, 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 European goods have been sold to Rus sia but the volume of trade has been unimportant. due to the inability or Russia to pay for imports.
 Tt is true that agents purporting to be representatives of the so-called bol- shevist comm;ssariat have placed inn mense orders for the purchase of goods
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