Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-19
BY HAROLD b. ROGERS.

tions, understood to he giving admin
istra ton officials pause.
Suppose that the present govern
ment at Moscow. which has never
been recognized by the United States.
should follow up indications that the
debt may he an early order OF bust
ness, how would this Government he
able to receive such overtures? On
the other hand. how could the adj
! ministration turn a deaf ear to offers
from those now. in charge of coun-
try into which was poured loans OF
millions of good American dollars Dor.
! rowed from American taxpayers.
These questions have been going the
| rounds of official Washington with
regularity since the first dispatches
from Moscow intimated that the I'M
recognized Soviet would likely con-
slider soon among other financial af
fairs the Kerensky debt to this Gov
eminent, but would probably not hold
itself responsible. for any of the old
Czaristic obligations.
Officials Are Undecided.
Plainly officials have come to no
clear cut and definite answer in their
| own minds to, the unuslI: problems
which thus have been raised inform
ally. 1t is believed the administration
| is wondering when there may he
forthcoming through some devious
| channel a more formal overture than
| was carried over press wires. So far,
| IL ia understood. there have been no
| formal approaches.
| But the administration realizes
| that beneath the surface of the queS-
lions Immediately raised by the trou-
| blesome possibility of having to deal
| with debtor which is not even
recognized. lies the more serious mat
ter Of recognition of the Soviet itself
| The administration is fatty on rec
ord against recognition of the present
government at Moscow at this time.
Sentiment in favor of such a move
in favor Of the Soviet has been reach
| ing the stage Of increased agitation.
The unofficial commission. headed by
/ Sherwood Eddy, recently returned.
urging acceptance Of the Soviet into
the family of recognized nations.
Senator Borah. Republican. of Idaho,
chairman of the Senate committee on
foreign relations, has come out
strongly in favor Of recognition. and
there are some business influences
At work toward that end. with view
to improving trade relations with
that vast part of the world.
Debt Only One Issue.
But so far there has been no mate
rial change In the attitude Of this
Government toward the principles be
hind the Soviet to which the United
States objects. and which were set
forth clearly by President Coolidge
before Congress. and by the Secretary
Of State. The debt is but one of the
points at issue.
Many related questions arise: What
kind of a debt is 1t that Russia owes?
| What efforts If any have been made
to meet it? What about the millions
Of dollars in contracts with Ameri-
can business concerns during the
war-have they been cleared up?
And of special interest to Washing
tonians what is the present status Of
the large Russian embassy. adjoining
the Racquet Club on Sixteenth street
where closed doors silently bear wit
ness to the day when once there were
diplomatic relations between the two
great nations. before the doors were
closed? In view of the informal dec
laration from Moscow that only the
debts of the provisional or kerensky
government would be considered. but
not the debts of the Car 1t is of d.
rect interest to the American tax
payer to know that all of the money
loan TO Russia by the United States
went to the so-called Kerensy govern
ment. so that should negotiate he
opened up through some channels.
the loans would be in line for con-
sideration under the preliminary
terms laid down by Moscow.
First Draft in July.
The overthrow Of the car took
place in the Spring Of 1917. and it
was in May of that year. according to
| Treasury records. that the first credit
Of 10000. 900 was established. The
Russians did not draw from the
| American till. however, until July Of
that year, when the first sum changed
hands in the amount of $35 .oO0.ooO.
This Is the first of series OF ad-
vances in cash which totaled $751;
1880 These funds advanced To
Russia. 1t has been explained by Sec
rotary Mellon in official explanations
to the Secretary of State. were all
forwa rded under authority of the
Liberty bond acts. with the approval
Of the President, and for the pur-
pose of more effectually providing for
the national security and defense and
prosecuting the war
No loans We're made by the Treas
ury TO the provisional government
after the fall of that regime to the
Soviet early in November. 1917. with
the exception Of an advance Of 81 .329,-
$50 on November IS, of that year. the
proceeds of which were simultane-
ously applied by the Russians to the
payment of interest to the Govern.
ment of the United States.
Signed by Bakhmetef.
The loans were accomplished along
ines similar to all others advanced to
! ~ Of "a
recognized provisional government Of
Russia still repose in the Treasury
TODAY. with the clear-cut signature
Of Boris Rakhmetef. who was the
last recognized Russian Amba ssador
Mr.. Bakhmeteff later resigned, and.
according to unofficial information
reaching Washington. is understood
to be in private business in New
York City. He was recognized as AM
bassador up to June 30. 1922.
Before he quit his post however,
Mr.. Bakhmeteff succeeded, in coop
Grafton with his government. in clear
ing the question of the many con
tracturai obligations Of Russian inter.
ests in the United States through
establishment in the National City
Bank of New York of a so-called
liquidation account" To this ac-
count were applied the Russian gov
ernment's available assets in this
country, so that the interests of
American manufacturers and con-
tractors and the United States Gov
eminent itself might he protected.
This money was to he devoted to the
general liquidation of Russian obi.
cations in this country.
This plan for clearing up the private
business involving Russia in the
United States, according to the best
information cleaned from pertinent
records was successful through CO.
operation Of the Ambassador, repre-
sentatives Of the Department IF
State Of thu Ttea si1r1, Nd &hn W.