The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-05-04
US. TRADE WITH
SOVIETS CERTAIN
TO ALTER POLICY
Coolidge Still Adheres to
Old Demands
Especial to The Daily w0rkerJ

WAoAilNGION, May e. Inc re-
fusal of the Coolidge administration to
give it's approval to the w. Averill
Hartman scheme for financing Soviet
trade with Germany thru American
bankers calls attention to the anomal-
Gus relationship between this country
and the Soviet Republic.
Trade between the two countries is
rapidly increasing and has already
passed the pre-war figures. Until 1914
the American imports into Russia con-
stituted but 81 per cent of that coun-
try's total imports. Now, however, 80
per cent Of the Russian purchases
abroad are made in this country. Even
without legal trade relationship such
as Great Britain possesses, the United
States now does a business ~ times
that Of England with the Soviets.
U. S. Exports Growing.
Americas exports. to the Soviet I'm
ion comprise raw materials, especial
ly cotton, and machinery, such as trac-
tors. In the south the price of cotton,
the major agricultural product, has
been maintained at level profitable
to the planters to a considerable de-
gree by the large Soviet purchases.
Soviet exports to America are compar-
atively small so that strong balance
Of trade runs in this country's favor.
An immense increase in the Russian
trade could take place were regular
relationships established and long
term credits made available.
Economic Determinism.
This rapid increase in The last two
years of trade with the Soviet Union
and the growing conviction that it is
firmly established in power for some
time to come, together with the de-
veloping purchasing power of the Rus
sian masses as expressed thru the
agency of its governmental organs, is
bringing about change in sentiment
among some of the most powerful
groups in the ruling class. The recent
statement of Ivy L. Lee, publicity
agent for the Standard Oil interests
and at times Of j. P. Morgan & COM
pany, and other very influential con-
Germs, advocating the recognition of
the Soviet government is an instance
in point.
Lack Of Economic Determination.
On the other hand there is the re-
cent resolution of the New York cham
Der of commerce calling for the re-
fusal Of such recognition until foreign
property rights are restored and the
] general attitude of the industrial and
| financial groups who have as yet nc
expectation of direct benefits sufi.
cient to make up for the impetus to
"Bolshevik" propaganda which they
fear would be the natural and imme'
date result Of such action. The state
department is still under control OF
the latter influences.
Cautious Calls Position"
Frank B. Kellogg, the ultra-reaction-
airy who runs the department, together
with President Coolidge, bases his OPP
position to recognition on the familiar
grounds that have characterized this
governments dealings with the Soviet
Union from its establishment.
These are, in the first place. that
the Soviet Union shall recognize the
unqualified property right of foreign
ers in that country, including in parti-
cular the restitution of property form
erly belonging to citizens of the .. s.
and the acknowledgment of the
Kerensky debts to the American treas
ury. The second demand is that what
Kellogg terms Soviet Russian Com
munist propaganda" in America shall
cease at once and forever.
There is no probability that these
conditions would be agreed to by the
Soviets. They claim correctly, and
are able to point to the United States
for confirmation OF their attitude, that
the determination of what are pro-
perty rights" rests in the jurisdic-
ton Of a government itself. The So
VETS have decided that their public
policy shall not recognize the right OF
private ownership in land and that
he power of their state apparatus and
Is constitution shall be exclusively
ldapted to working class purposes. To
rant the demand for the general re-
lognition of foreign property rights
would be to undo what they have thus
Far accomplished.
The second demand, for the cessa-
ion of what Kellogg ignorantly terms
Soviet Russian Communist propa-
ganda," is based on the conviction Of
our secretary of state that Commun-
ism is an imported movement which
would die out but for its nourishment
from Moscow. 1t would be just as
logical for the Soviet government to
refuse to recognize the United States
because the chamber OF commerce Of
this country is continually organizing
and supporting reaction against the