The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-04-23
HUGHES WRITES: |; J
TO COMP ERS ON
SOVIET RUSSIA
Secretary d State Fully Sets
Forth Position Of United States
Towards BoIsheVIsts.
Continued from pd0e l.

* = - -. .i~. 81. ..,
Continued from Page I.
failure Of all these industries to block
AIDES or to civil war; for most OF them
require no imports, and the men mo-
bilized since the Soviet, revolution
were far less In number than before
that event. y ~
During the existence Of civil war
In Rustic. her ports were in the hands
Of anti-goviet forces. However, trade
with the world through Baltic ports
was opened in: April, 1920. Restric-
tons on direct trade with Russia were
removed by the United States on July
g, 1920. J.:
THE conclusion of treaties of peace
with the Baltic states enabled Russia
freely to enter upon trade with Eur
ope and the United States. Both Am
erican and European goods have been
sold to Russia, but the volume of
trade has been h1important due to the
inability Of Russia to pay for imports.
We're Unable to Pay.
AS suggested in your second state
ment, It is true that agents purport-
ing to be representatives Of the So
called Bolshevist commissariat Of for
eign trade have placed immense
orders for the purchase Of goods in
the United States, Europe and Asia.
1T IS estimated that perhaps six
and one-half billion do11ers' worth of
orders have been booked. But ship
ments as a result Of these orders have
been made only in small volume be-
cause the Soviet agents were unable to
either pay cash or obtain credit so as
to insure the delivery of the goods Or
dered. .Sa85
1.-The actual result of the placing Of
these immense orders On the part of
the Soviet regime has not. therefore,
materially stimulated industry in the
countries in, which the orders were
placed, but has chiefly resulted in fur
ther impairing the credit Of the Soviet
regime due to its inability to carry out
the transactions which 1t had UNDER
| taken.
Relatively Small.
"Much has been written about the
large sums OF Russian gold which
have found their way abroad in ex-
change for foreign goods. In reality,
such transfers of gold have be en-. rela-
lively small. according to the most
liberal estimates the Soviet authorities
do not now have in their possession
more than $17s.000, 900 worth of gold.
1T is apparent that the proper
tomato share Of. this amount of gold
which might beaexpected to reach the
United States: and even the imme diate
expenditure or half of this amount of
| gold in the, United States, would not
| have g. pronounced or lasting effect
upon the advancement Of American
industry and trade, while its loss to
Russia would take away the scant
hope that is left Of a. sound ~reorgan-
ization Of the Russian system of cur
ret1cy and finance.
I No Restrictions ON Gold.
TN response. to your question re-
garding the transfer of funds from
Russia to the United States it may be
| On the importation Of Russian gold
into the. United. States, and since Dec.
Is, 1920, there have been no restric-
tons on the expectation of coin, bull
lion and currency to Soviet Russia or
! on dealings or exchange transactions
in Russian -ub1es or on transfers Of
credit or exchange transactions with
Soviet Russia.
1T is true that nc assurances can
be given that Russian gold will be &C.
copied by the federal reserve banks
or at the mint, In view Of the fact
that these public institutions must be
fully ass. red that the legal title to the
gold accepted by them is not open to
question.
short on Commodities.
ut has often been stated that IL
the government Of the. United States
government, Russia would immedi-
ately export immense quantities Of
lumber, flax. hemp, fur and other
commodities. The facts iii regard to
supplies in Russia completely refute
such statements.
Russia does not today have on
hand for export comm odities which
might be made; the basis Of i1nmedi-
ately profitable trade with the United
States. >. -. :. ~, 3~$
Furthermore, the transportation
system is utterly inadequate to move
any large quantity Of goods either in
the interior OF Russia or to Russian
ports The export Of such commodi-
ties as exist in Russia at the present
time would result merely In further
increasing the, misery Of the Russian
! people. =. ...
THE issue. OF Jan. l. 1921 Of Eco
nonlic. Life,' an official organ Of the
so-called Soviet government, reports
that the production ,:=s:of lumber
amounted to 20 million cubic feet in
1920, as compared with 400 million
cubic feet In 1912.
"The production OF lumber IS,
therefore. less than otie-fifth Of the
pre-war level, even though the lumber
industry IL in far better circumstances
than other important Russian indus.
tries. 4. t.Js 81. 81 Y: i
Trade was Always Light.
Mote Is taken Of the statement that
II restrictions On trade with Rnssi1
were removed. many mills. shops and
factories In this country, which ar,