Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-04-18
S0v|ET'S STYLE
MAKES j s CHARY
OF TRADE PACT
Sec. Hughes Plainly In
dicates Lack Of Con-
fidence in Russia
Country is ''Gigantic Economic
Vacuum" and Cannot be
Otherwise Under Present
Righteousness Query Of
GOmpers

OO1lIPCAo
Washington, April 17.-Sacretary
writing to Samuel Gompers.
president of the American Federation
of Labor, who asked for a statement
of "the facts" regarding Russia, indi-
Gates definitely that there is no pros
pect of resumption of relations with
the United States while the Soviet po-
litical and economic system remains.
The letter of the secretary of state
makes direct reply to various state
ments, characterized as propa ganda.
which contend that resumption of re-
lations, trade or political, with the
Soviets would open a great current of
trade of advantage to the United
States and that large shipments of
Russian gold have already been made
to other countries in payment for
goods.
Soviet Russia. Secretary Hughes de-
clares, is gigantic economic
vacuum and he adds that mo evil
dence exists that the unfortunate sit
uation is likely to be alleviated so
nomic system continues"
Taking up specifically the charge
that the scarcity of goods in Russia is
due to the blockade which was re-
moved July IS, 1920, and the state
ment that the demand for manufac-
turcd goods in Russia is so great. and
the purchasing power of the Soviets
SO vast that it is almost impossible to
determine the capacity Of the Russian
market to imports. Secretary hughes
wrote:
Though there is almost no limit to
the amount and variety of commodities
urgently needed by Russia. the pur-
chasing power Of that country is now
at minimum. and the demand must
consequently remain unsatisfied.
The attitude and action of the present
authorities of Russia have tended to
it's political and economic
relations with other countries. The
Russian people are unable to obtain
credit which might otherwise be ba sed
on the vast potential wealth of Russia
and are compelled to be deprived of
Immediately necessary
for consumption, raw materials and
permanent productive equipments. 80
II should not be overlooked that there
has been steady degeneration in even
those industries in Soviet Russia that
were not dependent upon imports of
products nor in which has there been
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 modified
since the Soviet revolution were far
less in number than before that event.
restrictions on direct trade with
Russia were removed by the United
States on July 8, 1920. The conclusion
Of treaties of peace with the Baltic
states enabled Russia freely to enter
upon trade with Europe and the Unit
ed states. Both American and Euro
pean goods have been sold to Russia.
nut the volume of trade has been un-
important. due to the inability of Rus
STA to pay for imports.
1T is true that agents purporting
o be representatives of the so-called
6olshevist commissariat of foreign
-rade have placed immense orders for
he purchase of goods in the United
As,.o -
mated that perhaps six and one half
billion dollars worth of orders have
been booked. But shipments as a re-
suit of these orders. have been made
'nly in small volume because the So
net agents were unable either to paw
ash or to obtain credit SO as 20 in
sure the delivery of the goods or
iered."
In reality, Secretary Hughes said.
ransfer of Russian gold to other
Countries have been small, and at the /
most liberal estimates the Soviets
lave not more than $4,000, 900 Of gold
n their possession. Even the imme-
late expenditures of the whole
mount in the United States, he
JULIUS out, Wouiu nave no pronounced
n lasting effect on American trade or
Industry and it might take away the
cant hope that is left of sound re-
Of the Russian system
# currency and finance"
There have been since December Is.
920. Secretary Hughes informs Mr..
iompers. no restrictions on financial
between the United States
md Russia although there is no as
that the mint or the reserve
,anks will accept Russian gold, as
public institutions must be assured
hat title is not open to question.
"The facts" in regard to supplies
n Russia available for export, Mr..
hughes wrote, completely refute"
that if the United States
recognized the Soviets, Russia imme-
lately would export large quantities
If lumber, flax, hemp, fur and other
THE facts" he says,
shows that Russia does not have on
land for export commodities which
night be made basis of Immediately
profitable trade with the United
states, and he adds that the Russian
is so demoralized that