The New York herald., 1922-01-23


as possible the developments in Russia
diplomatic agents and By other
means. A great mass OF data Is arriv-
ing all the time. IT differs to a consid-
cradle extent from information in the
hands OF the Department OF Commerce.
The Soviet Government has been rer
formed only on paper, according 10
State Department officials. Edicts which
seem TO put into effect the reforms pre-
scribed--and they are regarded as
fundamental to any sovernment--are be-
ing Issued constantly. At the same time,
accord ing to the State Department. the
personnel Of the Soviet Government has
not changed in any important degree
with the result that the same policies
In general are in force now as in March
when the American Government reported
fits position. Lenine still is in control
with largely the same group around
him.
The result has been. so far as the
State Department IL able to perceive,
t,a; there is yet no adequate guarantee
for the safety of life" in Russia, no
machinery for the adequate protection OF
private property. no certainty that con-
tracts are to be respected and nothing
which insures the right of free labor.
According to the State Department
records the nations which have entered
into trade agreements with Soviet Rus-
sia are. in addition to Great Britain,
which made her agreement long time
ago.. Italy and Norway. Sweden and
Denmark are at present negotiating such
agreements. Germany. Austria and
Hungary have no trade agreements. as
such. but in degree are conducting
trade through machinery set UP soon
after the end OF the war for the ex-
change Of prisoners.
Z. $. Exports to Russia.
The Department OF Commerce reports
on the other hand, show that trade
agreements are in force with Great
Britain. Italy. Sweden, Norway and Ger
many. while others arc being negotiated.
Inis Ls sample OF the widely divergent
character of the information received
from the Bolsheyist stronghold
department. OF Commerce figures glo-y
that American export trade with Russis
during the last fiscal year amounted tc
about S17,000.000, representing exports
q foodstuffs largely sent Indirectly" "a
Russia through neutral capitals. where
Russian buyers arranged the American
purchases Russia in similar manner
has drawn upon American food and
OsSSi S1PpiiCo GQi Tie Id.i VI LIE
present fiscal year in relatively as large
volume. though officials said to-day that
the official figures for the first half OF
the current fiscal year are not avatla bic
At present American goods are going &c
Russia through Stockholm, Copenhagen
and other Scandinavian capitals, where
Russian gold had been deposited with
agents to finance the American pur-
chasea
The Department of Commerce suspects
that Lenine has bowed to the inevitable
and recognized the failure OF the Com
n,unistic regime, citing u speech rs
made which was published in Soviet
newspapers OF October 10. In this nc
discussed what he called Russia's new
economic policy a defeat" for Com
munisrn. The department Is in posses
sion Of copy Of the entire speech. One
OF the striking passages Of IT was:
THE substance OF our new economic
policy Is dictated by recognition of the
fact that we have suffered a poweriu
defeat and commenced a systematic
strategic retreat.
There can be no doubt in the nlinds
Of Communists that we have suffered de-
feat on the economic front and a might.
crushing defeat and thus we are facins
consciously and deliberately the new
economic policy"
Lenine further IN his speech thus re-