Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1921-04-22
FACTS BY HUGHES
GIVEN GOMPERS
RUSSIA BARRED BY UNITED
STATES WHILE SOvlETS
: ARE IN POWER.
SAYS THEY ARE OUT OF MONEY
Statements Of Big Trade Awaiting
America Are Refuted by Figures
Other Countries Haven't
--, Got Much Of Their Cash.

WESTINGHOUSE Hughes.
writing to Samuel Gompers, who ask
ed for a statement of "the facts" re-
garding Russia, indicates definitely
that there is no prospect of resump-
ton Of relations with the United
States while the soviet political and
economic system remains.
The letter replies to various state
ments characterized as propaganda
which contend resumption OF rela.
lions with the soviets would open a
great current. of trade Of advantage
to the United States and that large
shipments of Russian gold have been
made to other countries in payment
for goods. ass Ait .'.s'
Gigantic Economic Vacuum.
Soviet Russia, the, secretary de-
clares, is, a 'ginantic economic
vacuum and he adds that mo evil
dence exists that the unfortunate
situation is likely to be alleviated SO
long as the present system continues"
Taking up the charge that the scar
city Of goods in Russia is due to the
blockade, removed last July s, and
the statement that the demand for
manufactured goods in Russia Is so
great and the soviet purchasing
power SO vast that it is almost Inn
possible to determine the capacity of
the Russian market to imports, Secre-
tary Hughes wrote:
Though there is almost no limit to
the commodities needed by Russia,
the purchasing power of that country
must remain unsatisfactory
The attitude and action of the authori-
ties of Russia have tended to under
mine it's political and economic rela-
lions with other countries.
"The Russian people are unable to
obtain credit and are compelled to be
deprived of commodities Immediately
necessary. 1t should not be
overlooked that there has been a
steady degeneration in even those in
dustries in soviet Russia not depend
ent on imports nor in which there
has been no shortage Of labor
Can't Pay for Goods.
! Restrictions on direct trade with
Russia were removed by the United
States July 8, 1920. Conclusion o.
treaties of peace with the Baltic
states enabled Russia to enter upon
trade with Russia to enter upor
States. Both American and European
goods have been sold to Russia but
the volume of trade has been unim
portant, due to the inability of Russia
to pay.
ut is true agents purporting to be
representatives of the sO-called Dol
shevist commissariat of foreign trade
have placed immense orders for thu
purchase of goods in the United
States, Europe and Asia. 1t is esti
mated perhaps six and one-half bill
lion dollars worth of orders have beef
booked. But shipments have beef
made only in small volume because
the soviet agents were unable eithe
to pay cash or obtain credit"
In reality, the secretary says
transfers of Russian gold to Othe
countries have been small and at thu
most liberal estimates the soviet
have not more than $175,0OO,0OO gold
Even immediate expenditure of tn
whole amount In the United States
he says, would have no lasting effec
on American trade or industry and
might take away the scant hope LEI
of a sound reorganization Of the Rus
sian system OF currency and finance.
There have been since Decembe
Is, Secretary Hughes says, no r,
strictions on financial transaction
between the United States and Ru:
STA although there is no assuranc
that the mint or the reserve bank
will accept Russian gold.