The Washington times., 1922-09-28

What is the economic situation
in Russia? Frank p. Walsh,
former joint chairman of the
United States Rdiltody Labor
Board and nationally knotun
Lawyer, has just returned from
Russia, 1Uhere for several months
he Investigated conditions for
American agents. The folloDing
is the first section of an exclusive
intervie10 Uith Walsh.
BY JOHN C. KLEIN.
Cosmopolitan News Service Staff
Correspondent.
Copyright, 1922. by Cosmopolitan News
Service.)
NEW YORK, Sept. 2s.-T
would have no more hesitancy in
investing in Russia today than
would have in any State in this
country, with every chance for
quicker and better returns on my
investment" Frank P. Walsh, for
mer member of the United States
Labor Board and lawyer, said to-
day.
Mr.. Walsh returned a few days
ago from Moscow and other Rus
sian cities which he has visited
during the last two months for
the purpose of investigating the
economic situation in that country.
Race to Swift.
Russia Is reacting, as a normal
people will react after a tremendous
revolution" he continued. If Rus
sia attracts foreign capital, which
will happen. think the race for ad-
vantage and great profits will again
go to the swift. as is usually the case
under like conditions. Such >neces-
sity for protection Of foreign capital
will exist that the Soviet govern
ment will give it's moral and practi-
cal assistance, for, as l see 1t, after
long and complete study of the sit
uation over there, the present form
of government is likely to last for a
long time. Lenin and Trotziy' are
but passing phases. They may die,
but others will take their places and
carry on the principles which now
| govern.
Had lived in Russia under
such conditions as have prevailed
there under the administration OF
the czar / have no doubt l would
be a strong supporter of the pres
ent government: If, by any pos
sibility such conditions had existed
here as in Russia. would have
laa 1rnn nf
in opposing them.
The great mistake the United
States is making with regard to
! Russia is in trying to give the
present Soviet government the
background of America. In doing
this we are misconceiving the
whole idea of democracy, as we
know it. No one can go to Russia
today, or to Germany, either, with
out being impressed with that fact.
Had we sustained the loss Of un-
told millions of dollars through
unemployment and the effects Of
the greatest war in the history OF
the world. we perhaps would enter
tain a more sympathetic view OF
conditions as they have been and
are in Russia.
Shift from Communism.
What the soviet government is
now trying to accomplish is a new
and distinct change Of policy from
that of communism. To begin
with, the basis of the change leaves
the government the owner Of all
public industries and utilities. The
result Of this new economic policy
is that the land also is owned by the
government for II will grant no
more fee simples in land. In put
ting this into effect, the title lies in
the hser of the land. The amount
Of taxation is reduced. and it may
be paid in products. This, it is true,
is a form Of paternalism, for II sub
stitutes the government for the en-
ployer but the government is anXi-
GUS to bring about economic pros
perity, and there is no apparent diff
ference between the government and
an employer. Meanwhile the gov
ernment feels the lack OF raw ma.
terials.
The scarcity of these raw materials
has made cost Of living higher, high
er, indeed, than in many American
cities. In Moscow / saw many fine
shops, department stores and others,
but many of them have CHIEFLY
stocks that were carrie dover from
before the world war, and which had
been hidden during the conflict. With
the war ended, these were brought
out from their hiding places.
One thing is certain: The govern
ment will never return private prop
erty in the form of real estate to
Its former owners, but will repay Its
value in transportation or in some
other form. OF this, was assured
by one of the chief officials OF the
government.
Chance for Capital.
"If they can carry out their pro-
posed plans and allow exports alone
OF such materials as are not needed
by the people, the thing will resolve
itself into a question of the reserva-
ton Of certain products by the gov
ernment One fact that will grow
out of this is that 1t will give Rus
sia an opportunity 1t has never be-
fore had, and that is for outside
capital to come into the country.
Germany is the only country with
which Russia may be said to carry
IN friendly relations. Germany has