Evening star., 1928-03-24
Public Finds Unique Interest
In Fight Over Foreign Bullion

The American public finds unique in
terest in the situation created by a
legal battle between France and Soviet
Russia over IS 900 900 in gold bars now
held In New York banks in the name
of the Soviet government. France Is
suing for possession. claiming to have
deposited this very same gold in the
State Bank OF Russia before that IN
stitution was seized by the revolution
lists.
"Washington's attitude is clear cut" :"
saws the Louisville Courier journal OF
the Treasury Departments refusal 10
permit the gold to enter the channels
of trade in this country. Since 1920
there has been an embargo on Russian
gold. It Is regarded as the property
OF the Czarist regime. The seizure OF
IL by the revolutionary factions does
not change its title. as the United
States does not recognize the Commu-
mist state. Further the CzariSt regime
owed debts to the United States which
the Soviet will not acknowledge. So
$4,000, 900 in Russian bullion lies idle in
two American banks, and the Treasury
Department will neither assay nor buy
1t" The incident suggests to the Cou-
rier-Journal how little trust is put in
a nation that repudiates Its obligations
and refuses 10 play the game with the
rest of the world"
The French bank has sued" ex-
plains the Newark Evening News. mot
the owner OF the gold nor even the So
Wet bank. the owners primary agent
but the New York banks where the
gold Is on deposit. But IL those banks
come into court, as expected, with the
plea that they are merely the agents
OF the Soviet bank. and decline respon-
sibility save as custodians of the treas
ure, there is no suit. For there is no
defendant which American courts can
recognize. the Federal courts, In which
the suit Is brought. being part of the
same government which denies the ex-
istence of the present Russian govern
ment II Is a fiction, OF course. that
the Russian government does not exist.
SO another counteracting fiction seems
likely TO be set up TO the effect that
the Soviet bank is not what It Is, the
State Bank Of the Soviet Union, but
that 1t Is a private institution whose
existence can be legally recognized
here"
"'rhe United States probably is the
only country In the world" according
10 the Seattle Daily Times. that would
turn up its nose at $5.20l 900 In gold
bars The Treasury Department
Is not disposed 10 accept the gold until
an investigation Of It's ownership Is nm
ished and IN the meantime the bullion
lies In the bank vaults, losing interest
at the rate Of 500 day"
THE French claim should be up
held" contends the Duluth Herald.
which adds 1T has merit III II. Then,
as our 0ailic friends owe quite a sum
this way. they might assign their equity
10 the Treasury at Washington,
Chief interest IN the case, observes
the Providence Journal, "doubtlesaly
henceforth will center OH the efforts of
France 10 prove the validity of her
claim Russia owes both The French
government and private citizens OF
France hundreds Of millions Of dollars,
Before the World War, France was an
outstanding source Of Russian foreign
credit, And from the beginning Of the
conflict until the overthrow Of the Czaf,
she continued To pour all the financial
resources she could spare into Russia Il
rapidly emptying Golfers, II Is
little wonder. In the circumstances, that
agents OF the French government are
on the watch for such an opportunity
as they nov believe they have IN New
York. How much 81 chance to re-
gain lost property IL actually may be
Is gtil undeterminable. but Il viii he
highly interesting to watch the OUT
| come of this unique struggle between
two European governments which must
be fought out on American soil"
The action by the Bank OF France,
says the Waterloo Tribune, us based on
recovery 0f stolen property II intro
duces u knotty legal problem, Maybe
! lIle Bank ot France VIII he abis IN prove
ownershlp bY identification II II can't
| II can hardly expeet American courts
| To turn over 90 II gold that might be-
| long ta some other country, or 10 Russia
| itself islt another prnhlem ta the
J courts jurisdiction We haven't reeng
nised. therefore, there u question II