The Birmingham age-herald., 1922-01-01
SHOPS REOPEN|NG ON CAPITAL|STIC
 BAS|SA|DS TRADE
1921 Was Year of Economic and Diplomatic Battling for Soviet Russia With
 Trade Growing
By Associated rrrss


 Moscow, December 3l.-Nineteen
 hundred and twenty one has been a year of diplomatic and economic bat ting, of soviet Russia It brought
 the abandonment of the government monopoly of domestic trading and gradual reversiou to eapitalistio I methods. tempered in such a way as to prevent dangerous splits in the small eommunlstic group which dominates l the government. But the trade for 1921 has been many times what 1t was in 1920. and the reopening of shops on the old capitalistic basis has afforded an opportunity to sell in a legal way manufactured articles which are In great demand Hampered by the triple desire to establish trade relations with impor- tant foreign powers. to protect the 1 third internationale whose headquar- ters are in Russia and 10 hold the communicate party in Russia intact. Lenine and his associates were in a precarious situation even before the drouth produced widespread famine in the Volga area.
 Confidence Lacking
 1 Krassin managed to negotiate strade agreements with England, Ger many and several minor powers, but the foreign trade commissions which came to Russia failed to find the large supplies which bolshvlst leaders had 1 heralded throughout the world. The l concession plan which Krassin and his associates had devised did not ap- peal to foreign investors. Confidence was lacking. Old owners had no de- sire to invest more money in fac- tories which had been taken away from them and other foreigners could | ha ind In al factories whose title was clouded.
 | The bolshevist government lacked the gold necessary to buy abroad and | could not find creditors. The gov ernment announced it would make | import and export business possible i for individuals and corporations, un- der government control This belat- ed statement came in october. Com missions are working out customs tariffs and 1922 probably will see a | far larger export and import trade | if the government makes good it's promise to release it's grip on foreign business.
 Chekn Too Active
 Leslie Urquhart. British mining man. who attempted to obtain con- sessions to work the mining proper ties which he controlled in Russia before the bolshevist regime, said 1t would be impossible Tor him to oper- ate in Russia until the government l stops the activities of the cheka, or secret service. which he insists IS stronger than the central govern ment with which concessions are ne- Rotiated.
 The cheka always has had an im- portant part in directing foreign trade arrangements Many commis- tsioners selected by the foreign trade council have not been permitted to leave Russia. Foreigners are unable to understand the relations between the cheka, which operates under Umslicht, and the so-called central government. It is not clear wheth- CT there is dual government, or l whether the men who are generally recognized as heads of the govern ment use the cheka and thus avoid direct blame for acts which meet with public disapproval.
 Official figures for the foreign trade of Russia during the first nine months of this year show that the exports totaled roughly 10000 tons These exports were chiefly raw ma terials or partly manufactured ar- ticles, such as timber, railway ties.