The Washington herald., 1921-01-15
John Hays Hammond,
Noted Engineer, Sees
Collapse Coming.
TRADE PROSPECTS
FOR us. PROMISING
Prominent Men Help
Dedicate New Course
at Georgetown "U"

The present government OF Russia
is bound to falIs
This was the Joint prediction
made by John Hays Hammond
world renowned engineer. and Oscar
T. Crosby. former assistant Secre-
tary OF the Treasury. before pub
/ lie meeting at the National Museum
last night, inaugurating the estab-
lishment of a Slavic department in
Georgetown University.
Both speakers predicted the dis
lintegration of the present Russian
government, to be followed by a
growth Of trade and industry which
would place that country among the
leading countries of the world.
Russians BIuGIng.
The offer of the present Russian
government to trade with the Unit
ed States and other countries was
termed a bluff" by Hammond. In
dustry in Russian is paralyzed and
there is nothing in the country to
trade. The trade offer was merely
made in an effort sto secure outside
assistance toward the continuance
of the Balshevist rule" he declared
Il am highly gratified with the
stand that this government has TAX
en- in regard to trading with the Boil
she visits
The dtsintegration of the present
government of Russia is bound to
occur, for the communistic idea Is
/ opposed TO the principles of econ
omy.
After a country has returned to
normal condition, with it's wealth
of natural resources and raw ma
tCrials, it can establish a home mar
ket second only to the United States
and national wealth greater than
any other in Europe, except Great
Britain.
During the late world war. we.
like all other countries, learned that
an adversely which affects any largo
| area affects. to some extent. the rest
of the world. This has caused us TO
take a greater Interest. in the eco
nomic conditions of all other parts
OF the world
View on Investment.
"A different attitude must be TAX
en- toward the Investment of foreign
NoPiAal III a COuHNTg. Inc
investor usually improves the ccrin-
try in which he is Investing the
money, this is especially true of
money invested in a backward coun-
try. He fosters the building of rail
roads, the erection of means for
communication. the erection of hos
pitals and in other ways improves
the country SO that his Investment
shall be in n position to bring him
proper return. AS a ru'a, he pays
better salaries than the local en-
ployer.
Are the people of the country
going to be Improved through the
investment? This is the only uues-
tion that should be asked when a
foreign investment is being con-
sidered.
Before the war Germany had
succeeded in gathering in the bulk
of Russian trade. but since Ger
many's betrayal of Russia at the
outset of the war l do not believe
that this condition will again pre-
vail after Russia is in proper
position to again enter into trade
A spirit of friendship has ALWAYS
existed between America and Rus
sia, and l believe that this spirit
is still alive and that America is in
position to become a leading bid
der for Russian trade. With the
vast natural resources in Russia it
will attract attention on the part
of American investors.
Peasants Active.
Il have had much time to study
the peasants of Russia, and 1 find
that, while they are grossly ig-
norant. they are industrious and,
with the proper educational advan-
tages, would soon develop into i'm
portaRt factors in the Industrial de-
velopment of their country.
"One of the greatest troubles with
Russia is that there was never a
middle class developed there and a
middle class is highly important in
the industrial development of any
country. ......
Every individual in Russia has
had his mind shaken and will in
turn shake off the erroneous eco
nomic condition which now exists in
that country through the present
government" said Oscar r. Crosby.
They will eventually learn that the
country and themselves will be bet
ter OF with individual ownership of
Industry than with communism.
The present conditions will re-
suit in an improvement of the
peasants and with the return to
normal conditions they will be mora
apt and prepared to take their place
in the development of the country.
Trade to Grow slowly.
Even though the BoIsheviki
should be overthrown soon we can
not expect an enormous trade from
Russia for some time, fir IL will
take a considerable time to correct
all of the conditions arising from,
the great illness" through which
the country is now passing:
II have been asked to- sneak
about Russia twenty years from
now, and IL may be permitted to
predict l believe that in that length
of time Russia will have increas ased
her population to 100000 people
and will be exporting at the rate of
from $40 to s12 per capita, and IL
will be the safest place for an
American to invest money, These
predictions are based on the deyeI-
opment of the South after the Civil
War" - I-e'--
Rev. Edmund A. Walsh, regent OF
the Georgetown School of Foreign
Service, who presided. made the an
nouncement of the openings the
Slavic course in connection with the
school and briefly outlined the pur-