The daily banner. (Cambridge, Md.) 1897-2008, 1921-04-18
CALLS RUSSIA AN
ECon0MIC VACUUM
Hughes Sees No Advantage in
Trade With SOval.
PljRCHA ,IA6 FOhtn LOW
CoIshevist System EffectuaIiy Bars
Any Relationship With This Coun-
Try, Secretary OF State Says.

Washington, April iS.-Secrclary
Hughes, writing 10 Samuel Golniiers,
,npsiden1 OF the American Federation
ni7 Labor, who asked for il statement
ni ne Facts regarding RUSSIA, inul-
Gates detil itely that there is no pros
a,ct of Il resumption OF r"latiC lis while
itt, soviet imlitical and economic SyS-
i,ln remairs.
i he lctttl. of the secretary makes
G;rcct reply 10 various, statements,
characterized as propaganda, Wliich
contend that resumption of relations,
trace or political. With the S9viets
would open great current OF trace
ii advantage to the United States,
:.d That large shipments "t russian
..nid have already been made Il. other
countries in payment for goods.
Soviet Russia, Secretary Hughes
:.ayS, is gigantic economic vacuum,
and he adds that n" evidence exists
ii.t the Unfortunate situation is likely
10 be alleNi3ted SO bong as the pres
,l4t political and econC mic system con-
linueS."
Taking up specifically the charge
,hat the scarcity of goods in Russia is
t:un to the blockade which was re
moved July s. 1920 and Ihe statement
fhat lie demand for manufactured
..uads in Russia is So great. and the
..1IrrhaSing power of the snTietS so
vast that il is almost Impossible to
determine the capacity of the RUSSIAN
market to imports. Secretary Iu8hes
wrote:
Though there is almost no limit TO
ihe amount and variety of commodl-
ties urgently needed by Russia. the
purchasing power Of that country Is
now ut Il minimum, and the demand
must consequently remain unSauSfled.
The attitude and action OF the
present authorities: of Russia have
tended to undermine its political and
economic relations with other coun-
tries The Russian people are unable
10 obtain credit which might other
wise be based on the vast potential
wealth OF Russia, and are compelled
to be deprived of commodities imme-
diarelV necessary for consumption,
raw materials and permanent produr-
tive equipment.
1T should not he overlooked that
there has been u steady degeneration
in even those industries in soviet Rus
STA that We're not dependent upon I'M
ports OF either raw material or nartly
finished products, nor has tlrt.s seen
any shortage of labor.
There can be no relation of the
failure of all these industries to
blockadeS or civil war, for most OF
them require no imports, and the men
mobiliZed since the soviet revolution
were far less in number than before
that event.
1T is true that agents purportlng to
be representatives of the So-called
RolshcviSt commissariat of foreign
trade have placed immense orders for
goods in the United States, Europe
and Asia. 1t is estimated that per-
hans SO. 100000 worth of orders
have been booked. But shipments, as
result of those orders, nave been
made only in small volume because
the soviet agents We're unable either
TO pay cash or to obtain credit so as
10 insure the delivery of the goods
ordered"
In reality. Secretary Hughes says,
transfers of Russian gold to other
countries have been small, and at the
most liberal estimates the sOviets
have not more than S175,000O00 of
in thai1s nnSSASSinn Even the
immediate expenditure of the whole
amount in the United States, he points
out. would have no pronounced or
lasting effect on American trade or
indu.:.G.y and it might take away the
scai.. nope that is left of a sound re-
or~api 1ation of the Russian system Of
currency and finance.