The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1925-06-04
SOVIET TRADE
IN MACHINERY
INCREASES HERE
But Europe Grants Bet
ter Credits

HoorQIn, chairman or the board OF
directors Of the Amtoru Trading cor
poratIon, the purchasing and selling
agent for various Industrial and COM
mercIaI organizations Of the Soviet
Union, and director Of the All-Russlan
Textile Syndicate which Is buying the
bulk 70 the cotton shipped to Russia
from this country, returned on the
Mauretana last Friday after a pro-
Ionged stay In Moscow, kharkov,
Leningrad and other important CEN
tiers In the Soviet republics where he
arranged for better facilities for the
constantly Increasing trade between
the United States and the Soviet
Union.
In statement given out at his Of
fee at the Amtorg Trading corpora
ton, 165 Broadway, Hoorgin pointed
out that the prospects for the further
development OF the commercial rela-
lions between the two countries are
closely linked with two of the chief
economic problems confronting the
Soviet Union at present.
nSNOHobidNl fNAtiSutAuIOs
First is the problem Of agricultural
reconstruction While the prospects
for the next crop are favorable and
it is expected that the Soviet Union
will have a large surplus for export
purposes, it is keenly felt by the So
Wet authorities that, in order to do
away completely with the possibility
of recurring elemental disaster, such
as caused the famine of 1922 and the
poor crop of last year, agriculture in
the Soviet republics must be thoroly
reconstructed along modern technical
lines.
This has been realized also by the
mass of the peasants even in the most
backward localities and as a result
there is an ever increasing demand for
modern agricultural machinery, chief
ly tractors. The Amtorg Trading COR
poration has already contributed much
toward making the iron horse" as
the tractor is being called by the peas
ants, popular in the Soviet villages.
by importing during the first year of
its activities, upward of 5000 Amer
lean tractors.
Concentrate on Tractors.
Out of $10,O00,000 spent by the Am
tory in the purchase of machinery
in this country during the year ending
April 80, 1926, about $4,50O,O0O have
been spent in the purchase of agricul-
tural machinery, tractors being the
chief item among the latter. The main
difficulty which has been confronting
the Amtorg Trading corporation dur
ing the past year, which was the first
year of its activities was the question
of meeting the credit requirements Of
the Russian purchasers.
Most Of the American manufacture
ers have realized these conditions and
extended credits for long terms on
purchases Of agricultural machinery.
However, freer and longer credit
terms are offered by European manu-
facturers who are competing with the
American products on the Russian
market.
Industry Booms.
AC oCSOnu CCOuOIllC
problem of the Soviet Union is the
restoration of its industries. The in
dustrial expansion in the Soviet
Union during the past year has sur
passed the most optimistic expecta-
tions and plans of the Soviet econ
omists. Even the heavy metal in
dustries which have been the slowest
to recuperate have increased their
production during this year by 50 per
cent over the preceding year, while
in number Of the lighter industries
the pre-war level of production has
already been attained.
This rapid growth of the industries
is due to the increasing demand on
the internal market as a result of the
improving economic conditions. But
since 1914, when most of the factories
were put on war basis. the equip
ment and machinery has not been re-
newed. The greatest part Of the in
dustrial equipment has been worn
down from lack OF repair. Much OF 1t
has become antiquated
Need New Machinery.
For the Soviet industries to run az
full blast they must be re-equipped
and more modern machinery installed
In the factories. In this connection
considerable purchases of industrial
equipment and machinery have al
ready been made by the Amtorg Trad
ing corporation in this country.
many more times during the coming
year since the Soviet industries are
taking America as a model in their
work OF reconstruction. But, as in
the case OF the agricultural machinery,
here also the question Of credits and
European competition is OF vital Inn
portance.
However. Mr.. Hoorgin believes that
the experience Of the past year which
was satisfactory and OF mutual ad-
vantage both to the American pro-
L.. IL