Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-25
BACKGROUND OF EVENTS
BY PAUL y. COLLINS.

Russia is ready to recognize all her
debts to America-1n principle =
hence she wonders why the United
States still hesitates about recognizing
the Soviet government. That is what
the Soviet foreign minister, Tchitch
erin, asked recently. And he added:
1--WE attach the greatest importance
to our economic relations with the
United States, and these are only ca
pable of development If diplomatic re
| lations between the two countries are
restored"
He explained that his government
was willing to arrive at an adjustment
of the pre-war debt as well as the
Kerensky loan" But that IS ''ir
principle" only-not gold.
The United States Government is
hoping, as q condition precedent to
restoration Of diplomatic relations
duced to a gold standard, for Russia
owes our Government $751;. 100000
with more than a decade of accrued in
terest, a total exceeding a quarter OF
| a billion gold dollars; also she owes
private American holders of bonds
about $86,000.000 and interest. and
American citizens, whose property
| has been confiscated, in excess OF
! $500, 900 900. 1t will take more thar
1
principles" as recognized by the
Bolsheviks, to square the account.
X X r 4
In a recent article by Christian
Rakovsky, Soviet Ambassador to
France, the writer appealed for the
opening Of foreign credits to stimulate
Russian industries, arguing:
In any case, it Is a great mistake
to believe that Russia has any more
need of foreign capital than foreign
industry itself has need of raw mate
rial and Russian orders
Ambassador Rakovsky protests thai
the Soviets have no desire to interfere
with the home affairs of foreign gov
ernments, and that all propaganda OF
world revolution in the early days OF
Bolshevism was due to overenthu
siasm of the Soviets. and should not
be- confused with today's peaceful in
tent. He adds claim that the Soviet
revolution was a protest against war
and that although the new economic
policy inaugurated by Lenin permits
private enterprises, the cooperative
state-controlled businesses are out.
rivaling all such private concerns-a
statement fatty contradicted by the
highest authorities among foreign
observers. The state monopolies
smother private competition on every
hand, says an American observer, who
is in a position to check such matters
without bias.
In the pioneer days of Sovietism
the government conflscated the agri
cultural products, leaving to the
farmers only enough for self-suste-
nance. The peasants thereupon, find
ing no reward for industry, ceased to
grow a surplus. Under the N. E. P.
the peasants were released to sell
their crops.
In an analysis of the RakovskS
article by Walter Duranty, a cor.
respondent from Russia, who is now
in America, the writer says:
1.-THE rulers Of Russia have little
or no money available for buying
either foreign goods or foreign ma
chimes, except that which comes from
the sale Of agricultural products, or,
in other words, from the peasants.
But, as matters now stand, the
peasants won't part with their
products unless they get cheap goods
And their rulers can't give them
cheap goods unless the peasants first
part with their agricultural products
The result is q deadlock which can
both Of goods and machines without
money-that is, on credit"
The correspondent thereupon argues
for extension of credit, to stimulate q
buying market in Russia and to
preserve the peace of the world
against hungry Russians, for only the
hungry ever engage in revolutions
1t is recalled that in 1921, under the
rule OF the SoY4etas Americans fed the