The Washington herald., 1921-03-22
,pOLSHEVlSM SEEN !
KBAR TO TRADE
WITHRUSSNATION
Sec. Hoover Declares Re
sumption of Commerce
With Reds Impossible.

Possibilities of trade with Russia
In any substantial volume are slight
as long as the present economic sys-
tenn Is maintained in that country,
according to a statement issued yes
,terday by Secretary Of Commerce
Hoover.
Secretary Hoover expressed the
! opinion that production in Russia
has broken down to such an extent
that there is no exportable surplus
and will not be while present con-
ditions prevail. The extent of the
trade possibilities. he said, will be
exhausted when Russia has used up
its gold. platinum and jewelry.
Statement by Secretary.
Secretary Hoover's statement fol-
lows:
The question of trade with Rus
sia Is far more a political question
than an economic one so long as
Russia Is in control of the Bolshe-
vik- Under their economic system
no matter how much they moderate
II in name. there can be no real re-
turn to production in Russia, and
= therefore. Russia will have no con-
siderable commodities to export,
and, consequently. no great ability
to obtain imports.
There are no export commodi-
ties in Russia today worth consid-
GRAFTON except gold. platinum and
jewelry in the hands of the Bolshe-
l. TTL
starving, cold. underclad. II they
had any considerable commodities
they would have used them long
since.
Flax Production an Example.
"No better Indication of the de-
struction of production under the
Bolshevik system exists than in the
case of FAX
''Prewar Russia produced 5000
tons of fax per annum, and herself
consumed 12o, 900 tons The produc-
tion in 1920 was about 10000 tons
with mills and lands at least cap
able of spinning f2o. 600 tons and
the population underclad. In any
event. no consequential export fax
is available. nor ever will be avail
able under this economic system
Nor can trade with Russia under
a government that repudiates priv
ate property be based on credit
Thus the whole question from a
trade point of view develops into
furnishing commodities equal to the
gold. platinum ami jewelry, vari-
ously estimated from $50. 900, 900 to
$500, 900, 900 in the hands of the Boil
shevik government, and after that
has been expended there can be lit
tie expectation of continued trade
Trading Not Prohibited
There has been no prohibition on
trade for a long time so far as ex-
change of commodities is concerned.
Trade is open through the Baltic
States, and Italy has been trading
in the south. The real blockade has
been the failuA of the Russians to
produce anything except gold and
platinum to trade with.
There has been but little trade
for. gold 4 because its title has been
called into question by the French
government and by threats of pri-
vate actions in the courts on the
ground that IL Is stolen or subject
to foreign liens. 1t is. apparently
the intention of the British trade
agreement to allow this matter to
be threshed out. so far as England
Is concerned. in the British courts.
The terms of the German agreement
in this particular are unknown II
any one European nation accepts
the gold. no doubt all of them will.
Defers European Stability.
Europe cannot recover its eco
nomic stability until Russia returns
to production. Trading for this par
eel of gold would not effect this
remedy-nor would the goods OBJ
tanned by the Bolshevik in return
for 1t restore their production.
That requires the abandonment
of their present economic system"