Pueblo chieftain., 1921-04-18
REFUTESCLAIM
OF COMPERS
RUSSIAN TRADE
Hughes Says Reds Have
Little Gold Or Goods
to Export

ry Hughes writing to Samuel Gompers
who asked for q statement of 1.-The
facts regarding Russia, indicates
definitely that there is no prospect of
a resumption of operations with the
United States while the soviet polti-
cal and economic situation remains.
The letter replies to various state
ments, characterized as propaganda,
which contend resumption of relations
with the soviets would open great
lcurrent of trade to the advantage of
the United States and that large ship
ments of Russian gold have been made
to other countries in payment OF
goods
Soviet Russia, the secretary de-
clares is gigantic economic Nacu-
UNI and he adds that no evidence
exists that the unfortunate situation
lis likely to be alleviated so long as
the unfortunate situation is likely to
be alleviated so long as the present
lsystem continues
Taking up the charge that the scar
city of goods in Russia is due TO the
blockade removed last July and the
statement that the demand for manu-
lfactured goods in Russia is SO great
and the soviet purchasing power so
vast that it is almost impossible to de-
termine the capacity of the Russian
market to imports, Secretary Hughes
wrote:
Tho there is almost no limit to
the commodities needed by Russia, the
purchasing power of that country is
at minimum and the demand must
remain unsatisfied. The atti-
tude and action of the authorities OF
Russia have tended to undermine ITS
political and economic relations with
lothcr countries. The Russian people
lpeople arc unable TO obtain credit and
larc compelled to be deprived of COM
INN cd a tpi
1t should not be overlooked that there
has been a steady degeneration in
lcven those industries in soviet RUS
sia not dependent on imports nor IN
which there has been no shortage of
labor
"Restrictions on direct trade with
Russia were removed by tho United
States, July S, 1870. Conclusion OF
treaties of peace with the Baltic states
enabled Russia TO enter upon trade
with Europe and the United States,
Both American and European goods
have been sold to Russia but the vol
ume of trade has been unimportant,
due to the inability OF Russia to pay.
'lt is true agents purportinE to be
representatives of the so-called Boil
lshevist commissariat of foreign trade
have placed immense orders for the
purchase of goods in the United States,
Europe and Asia. 1t is estimated per
haps six and onc-half billion dollars
worth OF orders have been booked.
But shipments have been made only in
small volume because the soviet agents
were unable either to pay cash or OBJ
tain credit"
In reality the secretary says trans
fcrs of Russian gold to other coun-
tries have been small and at tho most
liberal estimates the sovicts have not
more than l15.0o0. 900 dples gold. Even
immediate expenditure of the whole
amount in the United States he says
would have no lasting effect on Amer
lean trade or industry and it nigh,
take away the scant hope lett of a
sound reorganization of the Russian
system OF currency and finance
There have been since December is.
Secretary Hughes says, no restric-
tions on financial transactions between
the United States and Russia, altho
, there Is no assurance that the mint
or the reserve banks will accept Rus
sian gold.
THE facts" as to supplies in Russia.
available for export, he wrote. com
plctely rcfuto' statements that il the
United States recognized the sovictt
Russia Immediately would export lum-
bcr. flax. hemp, fur and other conf
mod;ics.
"Thc facts" he says, Shows Rus
sia does not have for export, com
modities which might be made tho
basis of immense profitable trade with
tho Russian transportation system Is
ldemoralzed. He quotes an official so
Wet organ to show lumber production
; in 1870 was one-fifth of the prc-war
level. a table shows the output of
eight principal exporting commodities
as from IL to as per cent of what
was expected.
Furthermore, he points out. Be
fore the war American trade with
Russia constituted only ono and three
tcnths per cent OF all the foreign trade
of the United States being in the year
ending June 30. 1918. sS5.0op.oo0 FOR both
exports and imports while for 1920
1t was sl3oOO0OO and practically all Of
that was with territories free of soviet
domination.
1T is unquestionably desirable he
wrote, that intimate and mutually
profitable commercial relations be os-
tahlshcd between the United States
and Russia and It is the sincere hope
of this government that there may
be readjustments in Russia which will
make 1T possible for that country to re-
sumo it's proper place in the economic
life of the world