Evening star., 1925-08-27
RED TEXTILE TRUST
SEEKSLOAN IN i. S.
Moscow Syndicate Wants
Longtime Credit to Buy
Mill Machinery Here.

BY Cable to The Star and Chicago Daily News.
MOSCOW, August Negotiations
already started here and expected to
continue in the United States within a
few days regarding the financing ol
purchases of raw materials and
machinery in America, are expected
to increase greatly the textile business
Of the Soviet government in the com
ing year.
New credit arrangements are eX'
pocted to result from the recent visit
TO Moscow of Reeve Schley, vice presi-
dent of the Chase National Bank of
New York. Two representatives of
the state bank of the United Soviet
Socialist Republics one of whom is
NJ. PedlatOSky are due to arrive in
America today. Representatives OF
the union textile syndicate, now in
England. are expected eventually to
go to America to negotiate the pur-
chase on long credits of mill machinery
Of which there is a woeful shortage In
Russia. out of 5000 600 spindleS. a
large percentage are obsolete and not
in operation. Alex Blumberg, the
New York representative of the
syndicate, with his wife left Moscow
Saturday for tho United States.
Production Now Large.
l
l.500, 900 miles of textiles in the com
ing fiscal year. starting October I, un-
der the program of the All Union Tex
tile Syndicate, as announced by Fritz
r. kilevitz, president, today. This
compares with ! ,075, 900 miles pro
duced in the year just closing, or sufi-
cient to satisfy only 70 per cent Of the
dema nd within the Soviet union. While
this years production was supplement-
Il I. i1I, loog oil a broad
orders for FIVE times that amount have
already been placed in foreign coun'
tries for the coming year. The prom
ised production allows approximately
. yards per capita,e which is low COM
pared with consumption of other
northern countries.
The syndicate, which is cooperative
ly owned by the textile mills. imports
raw and manufactured materials and
machinery and sells the output
through 800 stores throughout the
Soviet union. Purchases abroad, in
stead of being regulated by demand
and satisfying the 80 per cent short
age this year, are limited, because OF
the Soviet policy of maintaining the
parity of the ruble by balancing i'm
ports and exports.
Although the syndicate IS govern
ment controlled and it's primary pur-
pose is not profits. ii shows profit
of 5 900 600 rubleS "A year on 20, 900 600
rubles capital. At the same time tex
tile prices in May OF this year We're
only 63 per cent Of those obtaining in
October, 1928.
Buy Some L. :. Cotton.
The syndicate's purchases in Ameri-
ca have been practically limited to raw
cotton. In the last crop season 251,-
700 bales were purchased, and this has
been increased by $4,000 bales since
the maturing of the new crop. This
compares with SO, 500 bales purchased
at this time last year, although the
Turkestan crop forecast for this year
is double that of last season. The pur-
chases are expected to increase still
further, since the Soviet mills are run
ming at capacity. The directors of the
Chase National, which hitherto have
financed purchases and shipments OF
cotton as far as MurmanSk, are eX-
pected to consider a proposal to finance
them as far as Moscow through an ar
rangement with the state bank OF the
United Soviet Socialist republic, ac-
cordtng to the paper 1zyestia. Other
American financial institutions are eX-
pected to consider establishing con-
nectionS with the Bank of Foreign
Commerce of the United Soviet Social
ist republic for the export of raw ma
terials and the import of manufac-
tured goods and machinery into Rus
Sia.
Copyright 1925. by Chicago Daily News CO..