Evening star., 1924-06-15
CROP LOSS BRINGS
i CRISIS In ESTHONIA
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Decrease of Potato Output Robs
Government of Important
t Revenue Source.
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PROHIBITION CUTS TRADE
Russian Use of Crop in Alcohol
Manufacture Ends.
PROHIBITION CUTS TRADE
BY GEORGE II. wITTE.

Correspondence of The Star and the Chicago
VI Daily News.
:. REVAL, Esthonia, May 25.-Estho-
MIA has been experiencing a serious
financial and economic crisis, the
principal reason for which was the
failure of her potato crop last year.
In 1922 Esthonia produced 100000
tons of potatoes, of which $4,000 were
exported and 76,500 were used in the
manufacture of spirits. The spirits
industry is a very important source of
revenue for the government and is
one of the most profitable industries
in the country. In 1929, 100000 gal
ions of raw alcohol were produced by
ITS Esthonian distilleries. Last year,
on account of the poor potato crop
the output of spirits amounted to
only 100000 gallons. although the
number of distilleries had increased
TO 1913.
Russian Prohibition Cuts Trade.
These figures are small compared
with those of the pre-war period,
when Esthonia was part of the Rus
sian empire and supplied the Rus
in the fiscal year ended June 80. 1914,
there were PIT diStillerieS in Estho-
MIA which produced 9,500,000 gallons
of spirits. This was made into the
Russian national drink, vodka, con-
surned in large quantities by prince
and peasant alike. Since the revolu-
1ion in 1917, Russia has prohibited
the importation and sale of spirits
and Esthonia's spirits industry has
lost it's most important market.
:. While prohibition has dealt the Es-
9honian alcohol producers a severe
blow, it has compensated them to
certain extent. Esthonia, since be-
coming independent, has been almost
Completely surrounded by dry coun-
tries, with Finland only few hours
boat ride away and Sweden, which IS
"near dry" very handy. 1t required
no great imagination on the part of
the spirits producers to see that those
countries offered a market that would
prove even more lucrative than either
the home or the Russian market. So
Esthonia, in 1920, became the West
Indies of the Baltic.
Germans Capture Smuggling Trade.
The many islands along the coast
of Finland, some of which also are
only one days journey away from
Sweden, offered ideal landing and
hiding places for the smugglers of
contraband liquor and a rum fleet,
such as the one lying outside New
York harbor, was not slow in organ-
izing. High prices were paid for Es-
thonian spirits and the bootlegging
industry fiourished until last summer
when, in addition to the short potato
crop, a disturbing element upset all
the optimistic plans.
One by one, mysterious sailing ves-
sells anchored alongside the Esthonia
and Finnish smuggling craft, and
large signs were displayed announc-
ing that 160-proof spirits could be had
at prices far below those charged by
the Esthonian smugglers. For while
the Esthonians put up hight. They
cut prices under those of the strang-
erS. who turned out to be Germans
and who in turn undersold them, un-
til finally all but a few ESthonianS
withdrew. Now Finland is being
swamped with inferior German spir-
Its. even wood alcohol, according to
the Esthonians, but they still get the
blame for it.
Thank heaven, Germany has taken
away most of the Illicit liquor traf
fic from our smugglerS." said DR..
Friedrich Akel, Esthonian foreign
minister, in explaining the refusal of
the ESthonian government to accept
Finland's proposal to make a treaty
giving her the same rights to search
mile limit as the United States has
under the new agreement with Great
Britain.
"A treaty between Esthonia and
Finland alone would be useless. If all
countries with coasts on the Baltic, in :
cluding Germany, agreed to such
treaty the plan would be practical.
Once bootleggng becomes penal Of
Tense in all Baltic countries, it can
be curbed, although, in my opinion, it
cannot ever be stopped altogether"
Esthonia, too, has been invaded by
the prohibitionists, but so far the dry
movement has made little headway
here, chiefly because the income from
the government spirits monopoly is
the largest item in the Esthonian
budget.
"Esthonia cannot afford to have
prohibition, even if the people wanted
it is the way the matter is summed
up by the German language paper,
the Revealer Bote. In addition to
losing this enormous revenue, this
young country would experience a
new wave of unemployment, which
might cause an internal crisis"