New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-04-14

Russian life The consequences Of
this. and its corollares of cooperation
and competition, might have been Sc
rious for the Soviet government At
this point the government drew a
tight rein While small industry was to
De encouraged and set free, great in
( dustry and the exploitation of natural
resources were to be kept in the con-
troll of the state and we're to be ad-
mlnlstered through a system of leases
to private interests to operate for
the state.
Here, then. lies the heart Of the new
economic policy, the liberation of small
industry SO that trains of production
may start; the control of large indus
try. so that the proceeds Of this pro-
duction may be retained by the state.
Parallel with the opening of shops
and small factories by the small trad
eFS and manufacturers there now pro
ceeded on the part of the state a move
rnent for the creation Of vast state
controlled enterprises. This involved
the organization of large enterprises
TO be turned over at a rental by the
government to private managers, the
establishment of national bank, the
leasing of concessions in natural re-
sources, the rehabilitation of trans
Portatlon and the creation of interna-
! tlonal trading corporations
One flaw appeared in the program.
Inc Soviet government itself had ex-
hausted the capital resources of the
nation. There was no capital avail
able with which to start the large on
eratlons. 1t was at this time and for
this purpose that the Soviet govern
ment began to look to foreign
/ interest them in the commercial nossi-
| blities so opened up. The inaupura-
/ tlon OF the new economic policy itself
mad been conciliatory gesture toward
the capltalstlc nations; self-interest-
the possibility Of engaging in trade in
the vast Russian market-was expected
to complete the deal.
Last Chips Go in Gamble
To Win International Aid
In preparation for this era Of inter
national trade the Soviet government
| began to control trade on its own
borders by means of banks in neigh
boring countries and international
trading corporations. The government
established in Berlin the trade COM
mission headed by Lemonosov and in
London the trade commission headed
by krassin. Postal and telegraph op-
eratlons were established among
Russia and the Baltic states. ENGLAND
and the Far Eastern Republic and
eventually elsewhere; inland custom
houses were established for the inspec-
elon OF foreign goods arriving by rail
and for Russian goods exported
through the inland border.
In line with the new policy, and also
IN order to support position which
had grown desperate, the government
now proceeded to draw upon it's cold
reserves for purchases of locomotives
for its railroads, coal for its factorie.
end foodstuffs for its hungry people
The dissipation of the gold reserve
was justified only as a transition ex-
pedient to tide Russia over the neriod
during which its own productive ma
ch1nery was getting into operation.
me government was throwing in its
last chip in gamble for international
cooperation. To date the government
mas oeen successful in its efforts for
the encouragement of small trade. It
those foreign concessionaires in its
factories and mines upon which its
salvation depends. During the first
year of its operation the trade
commission at London imported
into Russia twice as much as it ex-
ported from Russia to England and
this was only about per cent of the
imports from England in 1913. Month
by month the general imports into
Russia from various countries of coal,
transport material, foodstuffs and
agricultural machinery run from FIVE
to twenty times the exports from Rus
STA of asbestos, leather, flax, hemp and
furs. A large part of the expenditure
of Russian gold in foreign countries
has been devoted to the purchase of
some 1000 locomotives in Germany
and Sweden through Lemonosov's mis-
sion, and the purchase of foodstuffs
through the mission at London.
Under present conditions in Russia
foreign concessions are practically out