The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-05-19


knows it. The Daily Herald ste
There is only a danger of
can certainly never be too late" :
able theory on which the policy Of the'
West in dealing with Moscow was
based. A theory like this is too trif-
ling and unreal to be true at any time,
but if the incessant efforts OF the Sow
let Government in the past few years
to attract the cooperation of the West
lent the maxim Of Never TOO rate"
resemblance of FEASIBILITY, realities
today disclose the absurdity Of the
fallacious attitude of comfortable wait
ing. The impression one gets in Mos
COW today reveals that the optimists
who predicted the possibility Of Rus
sian revival without the help Of the
West were essentially jusrined.
The most striking indication Of a
change in the situation is the remark
able turn of public opinion towards a
foreign loan. Only few months ago the
problem of loan doomed large, and
seemed to be the sole hope OF saliva
ton for internal reconstruction. Very
soon recognition appeared but a step
ping-stone towards obtaining a loan.
All eyes were turned to Lombard
street, for without its Intervention the
revival of Russian industry, transport,
and agriculture seemed to be impos-
sible. Then came a change, and there
is now not only an incomprehensible
feeling of difference, but practically
negative attitude towards a foreign
loan.
A Loan Unnecessary.
Replying to my question as to what
terms would be required for the i'm
pending loan, Litvinov surprised me
| by saying, 1--WE are considering
whether we would accept any loan at
all. The situation is no longer what
it was at Genoa or The Hague. A big
loan certainly we are unable econom-
ically to digest, and a small one we
hardly need" And Tchitcherin said,
1--WE don't contemplate big loan; we
can use loan only for productive pur-
l ROoCo sum 90 WOnA0 0C NOAuAAOAOAeAAAJ
profitable and would pay interest and
sinking fund" This unexpected and
surprising attitude among statesmen
found reflected in numerous talks
with business men and private citizens
everywhere. People who were most
set upon the hope of getting loan
are now so struck with the progress
THAT the country has made that many
are loudly protesting that loan is un-
necessary and dangerous to sound
progress.
Sokolnikov, Commissar of Finance,
one of the most prominent of Soviet
statesmen, in long interview today,
made clear the reasons for this sur
prising change of attitude.
1.-TWO years ago." he said, 1--WE had
the choice of two courses. Theoret-
ically we could have secured a speed
Ter recovery Of the country by the in
fux of foreign capital. But the un-
friendliness of the West compelled us
to take an alternative course, the
slower, but steadier and surer develop
ment of our resources. The results of
two years efforts is evident in the
soundness of our finances, which has
been so strikingly demonstrated that
it is unnecessary to dwell upon them;
while the revival of industry and trade
is obvious to every unprejudiced per-
son. Our Budget is still only two
thirds of the pre-war Budget, but we
can proudly point out that it is the
only purely productive Budget in
Europe today.
A Pacifist Budget.
"Our pacific policy and the repudia-
ton of militarism, navalism, and inn
perialism are already having financial
results. Our entire expenditure under
these headings is trifiing in compar-
ison not only with the Tsarist, but
with most European Budgets. In addi-
ton there is saving Of hundred
million gold rubles (G10000,000) a
year in expenditure on the Church
Synod and the Imperial Court. Poor
tho we are, we have spent in the last
few years two hundred million rubles
on the development Of industry and
we are certain to increase the amount
next year to 500 million.
ITO understand our careful and
'timid' attitude to a foreign loan you
must realize that foreign loans are
usually given not for productive, but
for military and strategical purposes.
We could absorb practically unlimited
resources for new strategical railways
and for restoring the armament in
dustries and enlarging the army. navy,
and air fleet, but we refuse to con-
template, and we don't expect our new
friends abroad to contemplate, any
such things. For productive purposes
alone the use of borrowed money is
strictly limited. Industrial revival is