The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1928-09-17
Loans to the Soviet Union

extraordinary interest IN the possibility OF
the Union of Socialist Soviet Republics being
able to absorb huge amounts of investment
capital. The reason for this sudden interest
in prospects for future Soviet loans is the
demonstrated ability of the Bolshevik gov
eminent to meet German demands for loan
payments months before they fall due.
The financial world was astonished to learn
that during the first business week of Sep
TENDER q, 100000 marks worth of gold was
sent into Germany from Soviet sources. This
transaction had been proceeded by large
number of smaller shipments of gold from
the Soviet Union into Germany. For time
the financial world was unable to ascertain
the motive for such gold movement and so
their experts on statistical analysis began to
delve into the problem. What was the
motive of the Soviet Union in shipping such
amounts of gold?
The answer was soon Forthcoming. The
gold shipments that eliminated in the 21,OOO
900 marks movement were for the purpose
of placing sufficient gold in German banks
to cover the first payment of German gov
vernment guaranteed credits, amounting to
10000, 900 marks (S2O,000,0 0O). 1t has been
ascertained that the total amount that will
fall due between October and January 1929,
is already in the hands of the German
bankers
This fact is staggering refutation of the
professional .traducers of the Soviet Union
who have carried on persistent propaganda
to the effect that the Bolsheviks could not
meet the payments on these loans. The lie
factories of Paris and Riga, as we'll as Kel-
oggs propaganda mill at Washington, and
Matthew VOLTS Civic Federation liars will
have to invent new ISLANDERS against the U.
S. S. R.
American financial writers are now specu-
lating upon the volume of future loans that
Awill flow to the Soviet Union.
With gold again moving from London to
New York the question of disposing of the
enormous gold supply in the United States
becomes more complicated. Since the Soviet
Union is able to absorb tremendous volume
of credits, this question inevitably forces it
self to the very forefront in financial circles.
It is a certainty that credits will be granted,
with or without recognition of the Soviet
Union by the United States government.
Let no one imagine, however, that because
credits will be extended the loan mon
gers are any more friendly to the revolution
than before They will remain, as before, the
relentless enemies of the workers and pea
SAINTS government. In fact, they will en-
deavor to utilize their loans for counter-revo-
lutionary purposes. The Berlin CORE
spondent of the New York Evening Post,
speaking of credits to the Soviet Union says:
MANY persons think the Soviets ought to
buy finished articles for consumption, which
can be bought on short term credits, instead
of machinery, which requires long-term
iS understood from
liable sources that it is possible, if the Rus
slams are willing to accept large short-term
credits Americans ready to participate
with the Germans in placing considerable sums
at their disposal.
While appearing as merely technical
question of finances, the distinction between
short term credits for articles calculated for
Immediate consumption and long-term
credits for machinery is of the greatest polit-
zeal significance. Short-term credits mean
that the banking capitalists will place at the
disposal of the Soviet Union only those
credits that will enable the Bolshevik gov
eminent to purchase the finished products
of the industrial capitalist countries-hoping
the Soviet Union will become mere
market for the absorption of such COM
modities and will be dependent for its
needs upon the capitalist world. Long-term
credits mean placing at the disposal of the
Soviet Union money that will enable the
government to continue its policy of socialist
construction by establishing its own indus
tries-its own machinery of production.
The greatest need of the Soviet Union is
NOT merely the machinery of light industry
that will enable it to produce textile and other
commodities for immediate sale and con-
sumption It's greatest need is the establish
ment of heavy industries; industries that
produce the machinery of production for the
lighter industries.