The Washington herald., 1922-05-16
|SECY. HOOVER
SAYS RUSSIA
MUST REFORM
Soviet Must Show World
She Recognizes Sane
tity of Contract.
oontsaned Fror, pape o~s.

Jot OF economic dffference IN tne
real situation of the Russian peo-
pie had the blockade never been
! imposed. The economic troubles of
Russia were from within and not
from without, for Russian produc-
tion was being destroyed In this
social experiment and she had ne
commodities for exchange even X
exchange had been permitted. This
Is indeed now demonstrated to have
been truly the case because the
blockade was removed two years
ago. During the last two years
there has been no ban on any mer-
chants sending in his goods. or any
investors lending his savings for
development of industry IL he felt
SO inclined. No practical advantage
has been taken of this situation
and the productivity and Industrial
machinery of Russia have continued
to degenerate steadily until this
day. The proof that access to Rus
sia alone was not the solution is
evident for II we subtract the goods
that have been moved into Russia
by the charity OF America and the
two or three hundred million dol
lars of goods imported with the old
gold reserve, the supplies moving In
the course of normal trade have
been pitiable, and the people were
starving even before the drought
The export or goods from Russia for
1921 was less than 100000 as
compared with $700. 100000 before
the war
U. =. Not Dependent on Russia.
| 1t seems to be believed by some
people that II we would go one
step further in relations and es-
tablish in Washington a Soviet am
bassador. then goods would begin
to how-but goods do not move in
an economic vacuum. More po-
litical officials will not solve this
Issue: II requires the restoration
of the dynamic forces of pro-
ductivity and the establishment of
security for investment. The foun-
dation of these things must be laid
in Russia: II cannot arise in the
United States.
Some Russian officials held out
promises of great advantage to us
II we would re-establish ambassa-
doris and would come to her eco
| nomic assistance. II Is a constantly
reiterated statement that there. IL
| vast field for the sale of Ameri-
can goods. for the employment of
millions of American workmen and
Tor large pronts to those straw
men called capitalists. These state
ments nave the sam9 degree or In
hation as the Bolshevik ruble which
now STANDS 100000 to the dollar.
"nen RUSSIA was running full
piast previous 10 the war she TOOK
per cent OF tne eSports rf the
United states which' when reouced
INTO terms OF WORKING time OF our
workmen ana farmers, meant
sousniy 'ne enpioymeh' Oh say
S",ooo A"erans' We are mere
lore' not nor ever wii pe
upon huss'a LOT the pnys'cai WEI
rare ol our peopie'
Country Is bankrupt.
"If America is to consider finan-
cial assistance to Russia on any
basis except charity. we must ex.
| anime the whole problem from n
| nracticsI poin. or view. Two
solemn facts are outstanding.
"The first is that Russia is bank.
rupt. She has no productivity: her
factories and mines. even where
louhoeo on RUSSIAN raw na'e,ia
anu
IIo'h W 80 Pc
are 's
cent OF 'he'r peMa. h
ssr'cuIturai prooueh n
her own neeus nus VI .ne
no" MAJ sur e W
e
."e nase nons , W 81
the services oi our m y. .e
' , -,
lo % ~
cspa anu s.,.., 10 ' 80.
s.ruc'IoIi "i pouus IN sis To-
ues mus 'e s''" "p0"
charlly,
Secono' nen our peop
eu upon 70 pia.e 90,
IN sucn inVes'nen.s. 'ney WI oe
nkeiy 10 ASK for security TOT re
payment ana e'loence 'hat .nere
VIII oe return 10 prouuc.'Nlty IN
order tnat paEnen' may oe maoe.
we arrive Al ohce AT the pI,"'arS
consinera.on or 'noSe econo,c
seh's ,a ma, WI WI. ma, pIoouc.N,.y
possIoie anu .""' WIN si'e i's
u i"'e'e"''
| Hard. Cold Fact.
Our government stated these
standards one year ago as follows:
| No lasting good can result so LONG
as the present causes of progress
sive impoverishment continue to
operate. 1t is only in the produc-
tivity of Russia that there is an,
hope for the Russian people, and
it Is idle to expect resumption of
trade until the economic basis OF