New-York tribune., 1921-03-26
Says Country's System Is
One of Progressive Inn
poverishment; Demands
Changed Industrial Rule
Entire Cabinet in
Harmony OH Note
Messageto MoscowRefutes
Report of Differences
Over Hoover Statement
By Carter Field

WASHINGTON, March 25. -
Branding the present economic sys-
tenn of Soviet Russia as "progres-
sive impoverishment," Secretary Of
State Hughes emphatically informed
the heads of that government in a
note dispatched to-day that resurnp-
ton Of trade would be futile so long
as the present industrial system Of
that country continues.
The communication was a reply
to the appeal recently made to Pres
ident Harding and Congress by the
Bolshevik authorities for the reopen
ing of trade relations between the
United States and Russia. The
American note was sent to the con-
sui at Reval, Esthonia, who will
hand it to Maxim Litvinoff, Bol-
shevik envoy there, through whom
the original communication from
Moscow was transmitted.
The reply avoided mention of the
commission which the Moscow gov
ernment had offered to send here to
negotiate a commercial treaty.
President Harding and the entire
Cabinet were in absolute harmony on
this step. Secretary of Commerce
Hoover, whose recent statement re-,
suited in some speculation as to
whether he and Mr.. Hughes differed
as to the wisdom of resuming trade
with Russia, issued brief statement
commencing the Hughes note, and
declaring it proved false such state
ments of differences.
Agrees With Hoover Statement
AS a matter Of fact the note etates
the same issue as that made by Mr..
Hoover in his statement earlier this
week. The Hoover statement pointed
out that except for stolen gold and
jewels the Bolsheviki had nothing to
offer in exchange, and. therefore. trade
would be futile. The Hughes note,
without reference to the stolen gold
and jewels, makes it clear that Rus
sia is not producing anything, and,
therefore, there is no point N dis
cussing resumption of trade relations.
Following is the text of the notes:
1.-THE government of the United
States views with deep sympathy
and grave concern the plight of the
people of Russia and desires to aid
by every appropriate means in pro-
noting proper opportunities through
which commerce can be eStablished d.
upon sound basis.
"1t is manifest to this government
that in existing circumstances there
is no assurance for the developme nj
of trade, as the Supplies which Rus
sia might now be able TO obtain
would be wholly inadequate to meet
her needs, and no lasting good car
result so long as the present causes
Of progressive iTnpoverishment con-
tinue to operate.
ut is only in the productivity of
Russia that there is any hope for the
Russian people, and it is idle to ex-
pect resumption OF trade until the
economic bases of production are
securely established. Production is
conditioned upon the safety Of life,
the recognition of firm guarantees
Of private property, the sanctity Of
contract, and the rights Of free
labor. n
"If fundamental changes are con- +
templated involving due regard fur
the protection of persons and prop
erty and the establishment of con-
ditions essential to the maintenance
OF commerce, this government will
be glad to have convincing evidences
OF the congummation of such
changes, and until this evidence Il
supplied this government is unable
to perceive that there is any proner
basis for considering trade reia-
tions'
Russia Held Barren Trade Field
There Is scarcely anything which
can be added to the note" one Cabinet
member said after the meeting in the
Executive Offices. THE note is s&atA.
nent which the Administration fuiiv
and completely agreed upon as ths
basis on which trade might be resumed.
IL makes plain that our position 4
That Russia is barren field under
present conditions, and will continus
10 be from our standpoint until the
suggested change is made
mere Is nothing in this note that
can be regarded as recognition.
III there is any real, strength in the
suggestion made in the Lityinotf note
sent to this government by the Sovses
that conditions hsve changed, that can
be shown in some convincing manner.
The statement signed by the Secretary
OF State is candid and direct and
should be taken for just what 1t says.
Il says that Russia must remedy the
present causes of progressive impov-
erishment' and that there is no hope
for Russia without productiyeness.
Production is based on the safety Of
life. the guaranty Of private property
and the rights of free labor"
No occasion exists ut the moment, 1t
was declared, to answer specifically the
request of the Soviet offieials for the
reception here Of Russian trade mis-
sion further than that the request Isl
denied for the presenter until thel
suggested change in Russia's economic
system is made-by the concluding SEN
tence Of the Hughes note This reads !:
This government is unable to perceive