The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1928-11-29
HEAD OF AMTORC
CITES GAINS IN
USSR INDUSTRIES
Economic Condition of
Peasants Improved


can best fully realize it's opportuni
ties, was the opinion expressed by
Saul G. Bron, Chairman of the Board
of Directors of the Amtorg Corpora
ton, speaking at the Luncheon of
the Export Managers Club yester-
day, on the subject of Soviet
American trade relations.
"The task of further developing
Russian industry and placing agri-
culture on a modern footing calls
for the import of huge quantity of
machinery" explained Bron, in dis
cussing the shortage of manufac-
tured goods in the country. He
emphasized that this shortage exists
in spite of the country's industrial
production being above the pre-wa1
level, and is due to the catly i'm.
proved economic condition of the
peasant.
Many Gains Shown
"Last year Russian coal produc-
ticn exceeded the 1913 figure by IT'S
per cent, the speako Continued
Production Of oil was 25 per cent
above that of the last pre-war year,
and cotton cloth 1872 per cent. Many
other industries have grown to
still greater extent in comparison
with 1913. Production of agrfcul-
tural machinery has doubled, electri-
cal machinery trebled, and electric
power from public utility plants
more than trebled and peat
quadrupled."
In speaking of the decline in
Soviet exports of grain Bron said:
"A superficial consideration of the
fact that grain purchases from
peasants by the Soviet government
while increasing in the past few
years have been so much smaller
than before the war that the surplus
formerly available for export has
been virtually wiped ous may per-
haps lead to the conclusion that
Soviet agriculture is declining. This
is not at all the case. Agricultural
production in the Soviet Union is
slowly but steadily increasing and
as a whole is above the pre-war
level. However, the peasant does not
have now the incentive to dispose of
his surplus grain production and
prefers to fed grain to his cattle
ard poultry, and to consume the
meat himself to market animal
afc Ac
in exports of grain has been more
than compensated by increased ex-
ports of other more available agri-
cultural products such as timber,
furs and petroleum"
Develops Basic Industries
"Soviet economic expansion will
involve the intensive development
of number of basic industries. The
electrical industry" said Bron, twill
supply the country with cheap cleo
trio power and the agricultural ma
chinery industry viii be built up in
order to meet the rapidly growing
demand for agricultural machinery
both on the part of individual peas
ants and on the part of the large
grain farms which are now being
organized. The coal, oil and metal
lurgical industries VIII be called en-
to supply the country with ever-in-
creasing quantities of fuel and
metals"
Bron stated that American ma
chincry and technical methods will
play an important part in this de-
velopment. at is not accidental that
we look towards the United States
for the necessary equipment and
study the American experience. We
do it not only because the United
States is the richest and technically
the most developed country in the
world, but also because tie United
States whose industries have
emerged upon the basis of the rich
est ard most divec-e natural re-
sources is the only country which
can satisfy the diverse needs of the
Soviet industry which is likewise
developing on the basis of rich and
and varied natural resources. Not a
single European country is in a
position to satisfy all the require
ments of our industry. AS for the
United States this means that not
only few of the industries of this
country may be drawn into COM
mercial relations with the Soviet
Union, but that the entire American
industry with its many branches
may be brought into economic con-
tact with Russia to the mutual adj
vantage of both countries"
The expected large purchases Of
equipment necessitate new foreign
trade arrangements, declared Bron,
"Of all countries with which we
have commercial relations Germany
was the first to see the necessity Of
bringing in new elements in her
trade relations with Russia"-he
continued. From short term credits
transition was made to long term
credit arrangements guaranteed by
the government. The 300 million
mark German credits resulted in q
marked expansion of German Soviet
trade. Long term credit arrange
ments have been obtained also in
other countries. ! am glad to note
that number of leading American
corporations have also shaped their
trade relations with Russia to con-
form with tho existing conditions