The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-04-17
British Will Back
Trade with Soviet
Union as u. S. Quits
CONTINUED from page II

OAAAOAk 0S Ne Ne (u1GS
Continued from page ~
consortium of German banks be or
ganized to endorse the Soviet notes,
these to be then turned over to his
American group for collection. The
Soviet notes thus endorsed would then
be used as the securityAback of bond
flotation in the United States. The
effect of this procedure would be to
relieve German banks of the necessity
for financing their 90 per cent Of the
Soviet purchases. The German banks
did not take to the proposal, however,
both because their heads felt they
were in a position to get the terms
they sought and because they were I'M
willing to hand over the CONTROL in
volved\ to the American financiers.
British Capitalism Ready.
British capitalists will probably take
up the negotiations at the stage where
they have been dropped by their Amer
lean rivals. Several of the largest
German concerns, notably the Otto
Wolff and the Demag companies, are
said to have already completed ar
rangements with certain London banks
by which the latter will finance thru
an arrangement similar to that sug-
gested by Hartman the 40 per cent
due on the Soviet purchases. The Eng
fish banks are to charge not over 8
per cent annually for interest. The
Krupps, Thyssens, and other steel
manufacturers are understood to con-
template a like scheme. This proce-
dure, however, only helps the big cor
porations with international connec-
tions. The little concerns which must
rely on the local German banks are
still helpless so long as the German
banks continue their obstructive tao
tics. J#+ 0ef
Build Up Foreign Trade.
The fundamental object back of this
huge effort at financing Soviet pur-
chases on large scale is, according to
DR.. Curtius, head of the German Econ
omic Ministry, the building up of Ger
many's foreign markets to their pre-
war Importance. This reconstruction
and increase in foreign trade would
relieve the unparalleled pressure of
unemployment which still runs into
the hundreds Of thousands, exceeding
even England's total.s Such orders as
those which the Soviets are ready to
place would, in particular, start many
of the thousands of small industrial
establishments going and key up the
whole industrial system, DR.. Curtius
believes.
Labor Exploitation.
The ministry assumes that one-half
Of the amounts involved will go in pay
ment for German labor, thus relieving
the central government of substantial
unemployment allowances. The liabil-
tiles of the authorities for the so per
cent of the sums due from the Soviets
will be balanced, IL is asserted, by
the generally improved economic con-
ditions. Incidentally the official esti-
mates that only SO per cent of the
payments will go toithe German work
ers turning out the'eproducts reveals
the high degree to4.which the toiling
masses are exploited in this demo
cratic" republic. co
No Competition With U. S.
The efforts to Interest American
fnanciers in this Project were based
on the theory that the trade thus de-
veloped would not interfere with the
foreign demand for the products of the
United States. while it would, on the
other hand, furnish substantial profit
for capital investme4t The purchases
Of the Soviet Union, DR.. Curtius states,
are to be principallNof heavy machin-
cry for the equipment OF Soviet plants.
He says that these,purchases will not
at present compete with American in
dustry because neikher that nor the
British are interested in such exports.
The comparatively small sum involved.
500, 100000 over a period of from
four to six years, would not be OF any
Significance to international trade as
such.
Adverse Trade Balance.
In connection with the ministry's eff
forts to stimulate Germany's exports,
Or. Curtius points out that whereas in
1913 the country had approximately
one-eighth Of the worlds commerce,
today she has but one.twelfth. More
over, while imports are 1886 per cent
Of pre-war figures exports are only 65.3
per cent, constantly increasing bal
ance OF trade thug growing against
Germany. This. thelminister contends,
can only be overcppe by using every