The New York herald., 1922-05-26
LIGARCHY CENTERED IN TOWNS

the Soviet system and its power Is
based upon them.
1t is not democracy. it's an oil
garchy Icheers] and all this talk about
>nationalism in Russia is all humbug
Ilouder cheers].
"Ninety-five per cent. OF the property
in Russia is land that they have nomi-
nally nationalized. Let them try to take
II back. 1t is as much peasant property
as II the title had been written out, and
they know It, l have told them so. They
could not challenge 1t. and they said
We cannot give up the great secret
principles OF the revolution AS a mat
ter of fact the vast majority OF the
Russian people are more individualistic
than the people of this country.
You have got theorists there who
come to intervene whenever business Is
being discussed, and they write docu-
ments asking credits. most OF which
were taken up with the defense of the
document of repudiation. You nave to
realize that, and there are men among
them who realize 1t now, who knew
what foolish document the document
a document that 1t could only have been
written by very clever man (laugh-
tcr) : we have got to realize that.
'If they want credits they must get
them where credits are. Supposing tney
had come and floated a loan in Engls nd,
and had a meeting at a Cannon street
hotel, and Tchitcherin delivered an elo-
quent exposition of the doctrine of rev.
olution by way Of commencing the loan,
and said that the basis of all revolution
ary principles was the reputation OF
debts and the confiscation OF property,
] have no doubt he would have Illus
trated that with the wealth of historic
illusions which only himself could com
mand.
but the more powerful his argu-
ment the less would he convince. and
at the end OF it you would have y
vote Of thanks moved by my honorable
friend sitting there (pointing to Lieu
tenant Commander J. NJ. Kenworthy),
seconded by George Lansbury. and that
vote of thanks would be the only thing
he would take home in his pocket
0aughter) These theorists cannot real
ize the difference in funds on the
strength of that document. Up to that
document we were discussing business
or debts.
Had Business Discussion.
I'VE had a basis for business dis
cussion as to moratorium. as TO bonos
and as to debts. Then came the first OF
May, and they nailed their flag to the
barren fig tree of communism.s under
which thousands OF people were dying
of pestilence' and famine. They were
themselves anxious to get away as far
as possible from that atmosphere, and
come to the discussion of practical diff
culties. This is what / was informed,
that it was easier to settle those mat
terS in Dra ctice than in theory.
"And the Hague conference, to pro-
ceed from q different angle. The Cannes
resolution was accepted as the basis.
Then you come to discussions between
experts. as to what they are prepared
really to do. They state that the vast
majority of properties and most OF the
difficulties came over properties-can,
as a matter of fact. be restored The
real reason is, they don't know how
to do 1t.
"They have not the skill, they have not
the knowledge, they have not the work
men, and they are most anxious to hand
these over to anybody who knows what
to do with them. Most OF the properties,
understand, are in position to be re-
stored, ready TO be restored. AS to the
rest, they are prepared TO consider COM
pensation in kind, one category for an
other. There will still be no payment In
gold, since you are dealing with bank.
rupt community, but what they are pre-
pared to do Is to discuss giving conces'
sions. Those are the things which are
TO be discussed at The Hague.
There will also be questions oi
credits for their railways and ports. ma
chinery and agricultural implements, the
eQuippmg Of factories and clothing their
people. which will have to be considered
very carefully at The Hague In cons
junction with the other propositions.
am very hopeful, when you come to the
examination of the practical. that some
thing may be achieved.
Meanwhile, we have to consider what
Is to be done in order to prevent con-
flIcts In Europe. 1t was a real danger
The Red army at the present moment
uary 1 the number Of men on the from.
tiers has been doubled. The reports re-
ceived at Genoa were of a very alarming
character. One day the Prime Minister
OF Rumania came to me and stated that
very considerable body of Red troops
were masslng on the Bessarabiar
frontier.
There has been a considerable In
crease of forces on the Polish frontier
When asked by Poland the reason fol
this Tchitcherin's answer was, Because
you are massing troops on your from
tier The same thing applies to othel
parts OF Russian Soviet territory
Whether it is that they are there FOL
attack or defence does not altogether
remove apprehension. because 1t is thu
fears of nations that make conflicts.
Passionate Desire for Peace.
THAT was the position In Genoa ant
| the first thing we had to do, IL we wer'
| to continue the Genoa examination. wa!
to insure that peace in Europe could b'
maintained during that period. Tha
is why we had q truce--a peace which
| embodied the solemn declaration on th'
! part OF the thirty-four nations that they
would be guilty of no act OF aggression
! against their neighbors during the peri
| cd of these examinations. nor guilty o.
any act Of aggression against the institu
| tions OF each other. I hope that onc'
the sense of security which comes from
a pact of that kind begins to take roo
| the fears which cause wars Will be dis
PEELED and that there will be peace
which shall be permanent
when Tho Hague conference ex
amInes the propositions which are sub
mitted, and IL the Governments flint
the recommendations which they maxi
| acceptable, hope there will be peace
which shall be permanent. Boundar!
| questions will then be determined, ant
! for the first time, you Will have peace
] in Europe.
There was nothing which was more
striking at this conference than thu
deep, passionate anxiety OF the nations
represented there to have peace. l an