The Washington herald., 1921-04-18
Tells Gompers America
Cannot Encourage
Soviet Trade.
LETTER ANALYZES
COMMUNIST RULE
Says Payments in Gold
Would Make People
More Unhappy.

government lies the only hope for
the rehabilitation of Russia and the
resumption OF trade with the United
States, is the opinion Of Secretary
of State Hughes, expressed in let
ter to Samuel Gompers and made
public here last night by the Amer
lean Federation OF Labor.
Analysing in detail the economic
and political conditions now pre-
vaiIing in Russia in response to
Mr.. Gompers' request that the truth
be told about that country, Secre-
tary Hughes letter is regarded in
ohiciaI circles here as an even
stronger document than his recent
note on Russian trade.
Condemns Communlsm.
In many respects it goes consid-
erably further in expressing the
Administration's attitude than did
his former document and for the
first time officially condemns the
communistic form ofs government
now prevailing in R1ssia.
This is a step further than was
ever taken by the preceding Ad-
nfnistraticn and is viewed here as
particularly significeDt in consider
alton of the fact that the previous
note Of Secretary Hughes on March
IS conspicuously avoided voicing
any objection to the form of the
Soviet government
The new pronouncement follows a
description by the Secretary Of
State of the industrial paralysis
now prevailing in Russia.
Russia Now Vacuum.
The devastation of industry in
Russia has been so complete" he
states. the poverty of the country
is so acute, the people are so hungry
and the demand for commodities is
so great that at present Russia
represents a gigantic vacuum and
no evidence exists that the unfor-
tunate situation above described is
likely to be alleviated so long as
the present political and economic
system continues"
AS Secretary Hughes had pre-
viously announced in his note of
March IS that resumption OF trade
with Russia awaited guarantees of
sound commercial relations, Presi-
dent Gompers' letter. TO which reply
has just been made by the Secre-
tary of State. was concerned with an
inquiry as to the possibility of such
guarantees being given.
Text of Letter.
There is so much propaganda
heing circulated in the United States
claiming that the demand for manu-
factured goods in Russia is so
great" President Gompers wrote.
and the purchasing power of the
Russian Soviet government so vast,
that il is almost impossible to de-
termine the actual capacity of the
Russian market to absorb goods
of foreign manufacturers"
Il therefore request" Mr.. Com
pers' letter continued, that, IL il
Is not contrary to the rules of the
Department of State. or if il is
not against the public interest. you
furnish me with such information
as you might have on the matter"
Reply of Hughes.
II recognize the interest of the
American people in the questions you
raise" Secretary Hughes replied to
President Gompers. "and take
pleasure in replying in detail to
them
Further in his letter. however,
Secretary Hughes minimizes the i'm
portance which has been placed
upon the question of Russian trade
resumption. Pointing out that even
before the war this country's trade
with Russia including both exports
and imports. constituted only 1 $40
per cent of the total trade of the
United States. he says:
In view Of the fact that the
purchasing power OF Russia is now
greatly diminished. as compared
with prewar years. il is evident that
at present. even under the most
favorable circumstances. the trade
of Russia could have but a minor
influence on the Industrial and. ag-
ricultural prosperity Of the United
States. Under conditions actually
prevailing in Russia. that trade Is
Of even less importance.
Like Rest Of Europe.
Of Russia Is analogous to that of
other European countries" secre-
tary Hughes continues, after his
prediction previously quoted, that no
change can be expected while the
present political and economic sit
ustion exists.
The war has left the people with
diminished productive man power
and largely increased number Of the
disabled. the sick and the helpless.
in one important respect. however,
Russia's condition does not CORE
spond to that of other belligerent
states in the world war.
While those states are taking
such action as is likely to re-estab-
lish confidence. the attitude and ac-
tion of the present authorities of
Russia have tended to undermine
Its political and economic relations
with other countries
Credit Inpes.ibIe. -
The Russian people are unable
TO obtain credit which might other
wise Be based upon the vast pdten-
hal wealth Of Russia and are Som-
PEELED to be deprived Of comrhodI-
ties Immediately necessary for {con-
sumption. raw material and petma-
nent productive equipment. ThA ef-
fect of this Condition Is that Ruksia
Us unable to renew normal econJmjc
activities and apparently wiIH \.