The Columbia evening Missourian. [volume] (Columbia, Mo.) 1920-1923, 1921-04-18
RUSSIANS HAVE
VASTDEMAND
BUT NO MONEY
Country Is Big Market for Man
ufactured Goods but Is
Flat Broke, Says Chas.
E. Hughes.
INDUSTRY BELOW PAR
Soviet Has Small Amount of
Gold Which Must Be Kept
for Economic Re-
organization.

Rumors that the demand for manu-
featured goods in Russia is so great and
the purchasing power Of the Russian
Soviet is so vasi that il is almost i'm
possible 10 determine the actual capacity
Of the Russian market to absorb goods
Of foreign manufacture. contain more
truth than fiction, according to letter
written BY Secretary Of State Charles Z.
Hughes to Samuel Gompers, president OF
the American Federation Of Labor, in
response to a rccen; inquiry by Comp
ers in his capacity as editor Of the Amer
ioan Fedorationist. There is only one
thing wrong. according TO Hughes. In
the parlance Of the day, Russia is broke
-Aai.
IL is true that Russia with her millions
ci people is a grea, market for the in
dustries Of the world. Her absorbing
capacity is almost unlimited but the re-
volution with its ensuing civil wars, lead
ing TO the devastation Of industry and
TO national poverty has made present
Russia represent a gigantic economic va
caum. according TO Mr.. Hughes. And
there is no indication that the condition
will be relieved under the present pOlhi-
cal and economic system.
The lumber industry in Russia, which
is in far the best shape, is at less than
onc-6fth Of the pre-war level Other
industries are in a pitiable condition in
comparison 10 the needs Of the country.
soWETs CANNOT PAY
The inability Of the Sovieis to pay for
their orders and ihe placing Of $780,
0OO.OOO worth af orders regardless Of the
regimes ability to pay for them, has low
ere the Russian credit 10 such an extent
that il is impossible for them to secure
credit. The stories Of large sums OF
Russian geld which have found their
way abroad in exchange for foreign
goods are myths. Such transfers Of gold
have been relatively small. Liberal es-
Inmates Of the amount Of gold the Soviet
authorities have in their possession place
the figure at not more than Sl75.000,000.
The Sovieis do not dare TO part with
any Of this, as it would destroy the last
hope Of q sound reorganization Of the
Russian system Of currency and finance.
In regard 10 the transfer Of Russian
funds to America and trade with Amer
lea. there are no restrictions on the i'm
poriation Of Russian gold into the
United States. There is none on the ex-
porfation of coin bullion and currency
to the Soviet government or on exchange
transactions in Russian rubles, or on
transfers Of credit or exchange iransac-
tions with Soviet Russia. However, the
federal reserve banks or the mints must
be fully assured that there is no question
as TO the title to the gold before they
viii accept them.
LITTLE EFFECT ON U. $.
Resumption Of Russian trede by the
United States would have little effect,
ssys Mr.. Hughes, on American industry.
because Of the small amount for which
Russia would be able to pay and the
comparatively small percentage Of the
total foreign trade Of the United States
which The Russian trade would be. OF
the total exports and imports in 1920.
which reached sls5O7. 100000. the trade
with Russia was less than 100000.
Until the economic and political sys-
TEN Of Russia is changed so that ii is
on a sound basis. Mr.. Hughes believes
that the reorganization of Russian in
dusiV so that it can produce enough
goods to pay for the commodities the
country needs is impossible. In view
Of the diminished purchasing power Of
Russia, as compared with pre-war years
when the total trade with Russia amount
ed to only $40 per cent Of the total
trade of the United States. MIR. Hughes
says that a resumption Of trade with
Russia would be only a minor influence
On the industrial ard agricultural pros.
periiy Of the United Ststes.