The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-03-26

IN vladivostok are now crowded with
foreign goods shipped to Russia. for trad
ing purposes but for which nothing can
be obtained In exchange.
The question OF Russian gold i re-
sArded as an effervescent one and not
10 be considered In the larger sense OF
Russian trade. Ii is pointed out that II
all OF the Russian gold were exchanged
for goods that this trade could not last
for longer than two months and would
then have 10 stop because Of a lack on
the part of Russia OF anything 10 eN-
change for moro goods.
In years past the greatest benefit from
Russian trade to the Unit1a states has
Injured from indirect or transit ship
nlents: that is. this country has bene-
fited from the ade of western Europe
with Russia. Western European coun-
tries sold the bulk OF the goods imported
BY Russia and large quantities OF goods
were drawn from the United States 20
make up this supply or 10 replace the
deficit caused by shipments into Russia
II was pointed out to-day that in this
connection trade with Russia by Great
Britain, in so far as it was possible,
would carry this indirect benefit 70
American commerce. Secretary Hoover
said to-day:
"Secretary's Hughess statement on
the Russian trade situation this AFTER
noon shows the complete agreement In
the views OF the whole Administration.
AS matter OF trade with Russia the
sirst factor to be determined Is IL and
when they change their economic system.
If they so change its bases as TO accept
the right OF private property. freedom
OF labor. provide for the safety OF hui
man life, &C., there is hope of their re-
covery from the miseries of famine
there is hope OF slow recovery In pro-
duction and the upbuIlding Of trade
Nothing is more important 10 the
whole commercial world than the recov-
cry of productivity in Russia. However.
without n fundamental change in their
whole economic system there will be no
consequential trade or production and
no stoppage of continuous degeneration"
Aside from the International values
contained in the problem It was recog-
rized at once that the Russian question
presented the necessity of a decision,
purely American, before it can be con-
sidered in connection with world politics.
Russia Unfinished War Business.
In undertaking 10 chart course in
reference to Russia the present Admin
elder what has already taken place as
necessary preliminary. Russia is re-
garded as an outstanding example Of
the unfinished business of the war; The
Versailles Peace Conference lodged the
Russian question and the Allied Powers
have been avoiding it ever since. 1t
II realized that coordinated policy has
been important and the Wilson Admin
fstration endeavored to set its record
straight on this phase before retiring
from Office by suggesting it.
What the Hughes note describes as
the Fundamentals" constitutes no new
thing. According 20 the information in
possession OF the state Department there
are approximately 1S0, 100000 people in
Russia, and approximately 100000 are
ruling this huge mass a comparatively
small group possessing material power
Is endeavoring TO impose n fantastic
policy OF communism on the huge ma
jority. Application of these theories has
stopped production and Russia is slowly
starving
The approach which the Lenine Gov
eminent has made TO the United states.
accompanied by a preliminary announce
,nent OF alterations of policy. suggests
the possibility of a radical change, but
does not assure IL. The Hughes state
that little commercial advantage is to be
gained anywhere by trade agreement
because OF the stagnatlon OF Russian
Productivity. IL ignores the selfish adj
yantages 70 be gained by permission 10
get IN on the ground floor OF proffered
concessions and clearly shows that the
Soviet atm Is political recognition.
" viii be noted that while Mr.. Hugher
dwells on certain conditions necessary
TO resumption OF productivity he specit-
ically mentions as fundamental changes
essential 10 n resumption OF commercial
relations tho protection of persons and
and establishment Of conditions
necessary for the maintenance of COM
merce.
In a sense the message is ADDRESSED
10 the Russian people and In a counter
10 the Lenine note which was in the
form of an address TO the American
people. II suggests the necessity of a
change In the Russian BACKGROUND from
which present forces are being projected.
A large amount OF confidential infor-
nation IN the possession OF the State
Department furnishes basis for III
Hughes statement and from these facts
the Government has been able TO deduce
certain conjectures.
Note May Precipitste Crisis,
The real meaning OF the Lenine pro-
rraTnme. for example. il not known. II
's considered possible that Lenine If en-
deavoring to square his course to meet
a rising tide OF objection on the part
OF the silent mass OF Russian people. In
this he Is evidently opposed by tn
forces led by Trotzlxy. The Hughes note
Is expected 20 test the sincerity OF Le-
nine and IL Lenlne is in earnest II may
precipitate a crisis between these two
Russian forces.
To certain extent the note will boil
ster up the position OF France, which
has opposed Great Britain in dealing
with the SnNiAft. Rnnaint, Cnr-nrrrrn,,A