San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-05

the most enterprise in seeking con-
cessions within Russia, the British
have been most energetic in seeking
orders for manufacturers. A group
of leading British engineering houses,
which united to procure Russian
trade and did much to obtain the
establishment of the system of credits,
has not had an encouraging expert
ence thus far. Little can be done
in the way Of importing ordinary
British manufactures, like textiles,
whatever credits are offered. They
could be imported and sold much
cheaper than similar goods made in
Russia, but the state mills already
produce more than the people are able
to buy.
Foreign Trade Monopoly Problem.
The conditions most essential TO
the re-cstablishment of normal BUSH
ness relations, apart from political
issues, are simple. Nothing great can
be expected until Russian foreign
trade monopoly is relaxed. Russians
increasingly favor transforming the
monopoly into n control department
which while supervising the nature
of imports and exports, preventing
the expectation of national neces-
sites and the importation of luxuries
and superfluities, would leave the
matter to private enterprise. Few
deny that this would be economical
ly beneficial at once but strong politi-
cal feeling prevents its adoption,
soviet leaders declaring that the for
eign trade monopoly is bulwark Of
communism.
Foreigners next demand a revision
of the present economic espionage
law, under which any Russian who
gives commercial information to a
foreigner unfavorable to the govern
ment, particularly any government
employee doing so. is liable to death,
long Imprisonment or exile. The
continual arrests of the Russian en-
ployes of foreign firms must cease.
These arrests, made for various rea-
sons, produce uneasiness. disturbances
and lack of confidence. Shipping
firms especially have suffered. The
Cunard Company has had one of its
Russian representatives arrested and
a White Star man was sent into
exile some time ago while recently its
chief Russian lawyer was not pre-
mitte,. to return from abroad. His
assistant was arrested.
There is general agreement that the
two chief methods now employed for
blu -iness enterprises here-concessions
and mixed companies-are unsatisfac-
tory. The system of mixed companies
by which the soviet government takes
half the control and half the profits
of foreign enterprises inside Russia
has proved bad in practice. The
attempt to make American and Brit
ish business men work in the harness
with Russians, each sharing in the
control, causes endless friction and
misundo standings.
Methods Are Diverse.
Russian and American business
methods and ideas are different. Rus
sian chiefs demand formalities, safe
guards, checks and elaborate control,
while foreigners want short cuts. The
acreage big Russian business man
thinks that any transaction involving
money, even il ii is only the purchase
of ten cents worth of pins, should be
sign.d and countersigned by at least
three persons. In one recent enter
prise the Russian president demanded
from the foreign managing direct
before starting business an elaborate
system of fundamental rules. the first
of which prescribed who had the
right to open letters.
The establishment Of British credit
alone will not accomplish much, but
it may encourage a movement inside
the government which will bring
changes. Two years ago the banking
system was transformed from a
decrepit official organization 10
modern businesslike machine. yield
ing the soviet great profits. The re.
construction Of trade methods would
benefit the government on much
larger scale and many heads of the
sent state organization realize this
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