Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-04-18
United States Will Not Re-
sumo Trade Relations
While the Soviet Systems
Remain in Effect.
STATEMENT OF "FACTS"
Is GIVEN TO G0MPERS
Country Is a "GigantiC
Economic Vacuum" Sit
uation Won't Be AIIeviat-
ed Under Present Regime

w dolllIlS GOllJ AplAi L.
Secretary Hughes, writing
to Samuel Gompers, who
asked for a statement of
"the facts" regarding Rus
sia, indicates definitely that
there is no prospect of a re-.
sumption of relations with
the United States while the
soviet political and economic
system remains.
The letter replies to vari-
Gus statements characterized
as propaganda which con-
tend resumption Of relations
with the soviets would open
a great current of trade of
advantage to the United
States and that large ship
ments of Russian gold have
been made to other coun-
tries in payment for goods.
An Economic Vacuum.
Soviet Russia, the secretary de.
clares, "is gigantic vacuum and
he adds that mo evidence exists
that the unfortunate situation Is
likely to be alleviated so long as
the present system continues"
Taking up the charge. that the
scarcity of goods in Russia is due
to the blockade removed last July
s, and the statement that the de-
mand for manufactured goods in
Russia is so great and the soviet
purchasing power so vast that 1t Is
almost impossible to determine the
capacity of the Russian market to
imports. Secretary Hughes wrote:
Unable to Obtain Credit.
Though there is almost no linn
it to the commodities needed by
Russia, the purchasing power of
that country is at minimum and
the demand must remain unsatis-
fled, The attitude and action
OF the uthorities of Russia have
tended to undermine its political
and economic relations with other
countries. The Russian peoples are
unable to obtain credit and are
compelled to be deprived of com
modities Immediately necessary.
1t should not be overlooked
that there has been a steady de-
generation In even those industries
in soviet Russia not dependent on
imports nor In which there has
been no shortage of labor =.
Restrictions on direct trade
with Russia were removed by the
United States July s, 1920. Con-
clusion Of treaties of peace with
the Baltic states enabled Russia to
enter upon trade with Europe and
the United states. Both American
and European goods have been sold
to Russia but the volume Of trade
has been unimportant, due to the
inability of Russia to pay.
No Cash, No Credit.
1T is true agents purporting to
be representa- tiveS of the so-Called
bolshevist commissariat of foreign
trade have placed immense orders
for the purchase of goods in the
United States, Europe and Asia, 1t
is estimated perhaps six and one
half billion dollars worth of orders
have been booked. But shipments
have been made only in small vol
ume because the soviet agents were
unabl to pay cash or obtain Gre
it."
In reality the secretary says
transfers of Russian gold to other
countries have been small and at
the most liberal estimates the
soviets have not more than $40
10000 gold. Even immediate ex-
penditure of the whole amount m
the United States, he says, would
have no lasting effect on American
trade or industry and 1t might
take away the scant hope left of
a sound reorga niSation of the Rus
sian system of currency and III
nance"
There have been since December
IS, Secretary Hughes says, no "e-
on financial transactions
between the United States and Rus
sia, although there is no assurance
that the mint of the reserve banks
will accept Russian gold.
Traffic System DemOralized.
"The facts as to supplies in Rus
sia available for export" he wrote,
g completely refute statements
that if the United States recognized
the soviet, Russia Immediately
would export lumber, flax. hemp,
fur and other commodities. The
facts" he says, "show Russia does
not have for export commodities
which might be made the basis of
Immediately profitable trade with
the United States and he adds,
the Russian transportation system
is demoralized. He quotes an off
cial soviet organ to show lumbe.
production in 1920 was one-fifth
of the pre-war level. A table shows
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