Evening star., 1925-11-20
REDS PLAN TRADE
|NVAS|0NO OF ORIENT
Soviets Lack Credit in U. S.,
| But Are Buying Cotton and
! Textile Machinery Here.
BY the Associated Press.

by the Associated Press.
/ NEW YORK, November 20.-IIlus
erating how economic laws and trade
advantages circumvent diplomatic
barriers, the All-Russian Textile Syn
Eicate, Inc, has issued its second
annual report showing cotton val
he'd at s44,2S4S33 was bought in
This country during the fiscal year
ended September 80 and delivered at
Murmap psk Russia. This is an in
crease of "a per cent over the first
years operation of the syndicate.
. In addition, sample shipments OF
dyes valued AT $oO.7 and OF ma
chinery at S53, 1874 were shipped.
{ Alex Gumberg, vice president and
treasurer, explained that this trad9
movement had been handled throuP'
the organization of corporation un-
der New York State laws, all OF the
$1,000 900 worth of stock of which Is
held by the All-Union Russian Textile
Syndicate of MOSCOW. The Russian
organization is composed of textile
mills in the Moscow district doing
an annual business of more than
1000, 100000 gold rubles a year, OF
more than sl32, 100000.
Soviet Credit Poor.
"If the United States were to rec,
ognize trade relations with Russia,
declared Mr. Gumberg, this business
would expand Immediately, as recog-
milton would enable us to obtain much
more extensive credit. In spite OF the
fact that Russian production OF COT
ton and imports are increasing, our
mills still are unable to obtain sur
ficient raw materials and machinery.
AS a result it has been necessary 10
nut customers in Russia upon a
ration, limiting sales to 10 meters OF
cotton cloth to a purchaser. In Russla
we have so wholesale stores ana =
retail stores.
I'VE have found it advisable, how
ever, to begin the export or cotton
cloth. We have four offices now IN
Persia, and are planning to open dis
tributing depots in Mongolia, Man
churia, Afghanistan and China. Rus-
sia has developed cordial diplomatic
relationships In these countries. and
the Russian designs and colorS nave
become immensely popular with the
Oriental populations.
Soviet Plan Simple
The mechanism by which the flow Of
cotton to a politically unrecoSnized
country and the flow of gold back to
the United States. is managed is rela-
lively simple When the factories,
comprising the Russian syndicate,
wish to order they confer together
and determine the amount they need.
A large number of Soviet departments
must then investigate and ratify the
order before it can be placed. When
the red tape has been unwound an
order is sent to the American corpora
ton, which buys in its own name.
The balance sheet as of September
80 shows that credits in the amount OF
$500, 900 secured only by the sigma
lures of the officers Of the America n
corporation and the Endorsement of
the Russian corporation, for which
Mr.. Gumberg acts with power OF at
torney, were obtained from New York
banks. In addition. the balance sheet
shows bank acceptances OF $500. 900
secured by cotton shipments, and
trade acceptance of $874,4 Upon
receipts of a shipment in Murmansk
credit is cabled through London or
Berlin with which to take up the
acceptances or loans.
Want to Buy Machinery.
A commission of Russian engineers
is expected to come to the United
States thsi Winter to place an order
for textile machinery. Orders for
English machinery. amounting to
about 100000 were placed last
Summer.
The opportunity for expansion of the
Russian textile trade is evidenced not
only by growing export trade, but
by the proba blility of the development
of a large spinning and weaving in
dustry in Russia, according to Mr..
Gumberg. There are 10000 cotton
spindles in Russia for 140 900 900 peo-
pie using largely cotton cloth, he said,
as compared to $4,000, 900 spindles in
~, Ut .I.&.
100000 using a much larger pro.
portion of silk and WOOL