The daily worker., 1929-06-18
GROWTH OF TRADE
US. And U.S.S,R,
SHOWN IN FACTS
Increased Despite Non
Recognition

in the past five years was something
in excess of $500, 100000. This sum,
amounting to about Is per cent of
the total Soviet foreign trade for the
period, includes not only the export
and import operations of the Am
torg but also the turnover of the
All-Russian Textile Syndicate, which
purchases cotton for the Soviet tex
tile industry, Centrosoyus and Sells
kosojus, representing the Soviet
consumers and agricultural cooper
atives respectively, and of the Am
kino Corporation, which distributes
the films of Sovkino and other So
Wet moving picture producing or
ganizations.
In view of the considerable expan-
sion of Soviet industries, which have
increased production on the average
of over 20 per cent c1nually during
the past few years, and the CORE
spending growth of foreign trade
operations, the planned expansion Of
Soviet foreign trade during the
coming few years, as set down in the
five year plan now under consider
alton by the Congress of Soviets,
does not seem at all improbable. If
the program is fulfilled, Soviet i'm
ports five years from now will be
practically double those of last year,
which amounted to $490,000, 900,
while the total for five years will
come to more than three billion dol
lars. 1t would be impossible to say
now what the shc-" of the United
States in these imports may be. In
the last two years the United States
supplied % per cent of Soviet i'm
ports. What this percentage will
be in 1888 is dependent not only upon
the demand for machinery and other
products, which the United States is
we'll able to supply, but also on a
number of other considerations.
OF the $503, 100000, which repre-
Gcnted the turnover of Soviet
!, American trading organizations for
the five years since the organization
of the Amtorg Trading Corporation,
and for the several months preceding
it's organization when business was
carried on by the Products Exchange
Corporation and Arcos-America,
Inc, the two predecessors Of the
Amtorg, and by the other firms men,
toned above, purchases in the
United States made up S398,000,000
and sales of Soviet products in this
country totaled S105, 100000. Large
unfavorable trade balances were re-
ported each year and the adverse
balance against the U. S. S. R. for
the entire period aggregated about
S293, 100000. The Soviet Union has
a favorable trade balance with most
of the other countries with whom it
does business. In fact, the results
of the past five years show a net
unfavorable trade balance of only
slightly above $60,0O0,000, which was
covered partly by exports of gold
and partly by long-term credits. This
year favorable trade balance has
been reported for practically every
month. Over a year ago consign-
ment of gold, mined and smelted in
the Soviet Union, was shipped by the
State Bank of the U. S. S. r. to the
United States but was not accepted
by the United States assay office.
With an unfavorable trade balance
which not only wipes out the Soviet
favorable balance with other coun-
tries, but in some years even neces-
states exports of gold, the problem
of creating normal conditions for
the movement of gold to the United
States, similar to those enjoyed by
Soviet gold in Europe, must be
solved.
Soviet purchases in the United
States have been growing at fair
ly steady rate, with exception being
made for the year 1924-25, in which
year exports from this country
reached an unusually high figure,
due primarily to the purchase of
over $20,O00,000 worth of flour, an
emergency purchase necessitated by
the failure of crops in the Soviet
Union. No such purchases have
been made since that year. Omitting
the fiscal year 1924-25, when Soviet
purchases in this country totaled
$50 1884, 900, the following totals for
Z Soviet purchases in the United
States are obtained:
d 1923-24 .$43, 3,916,000
1925-26 ........ 48,560,000
1926-27 ........ 71,689,000
1928 ........ 91,232,0O0
In the half year beginning Oct. /,
1928, orders for the U. S. S. R. to a
total value of nearly $50,000,000
were placed in this country, indicat-
I ing the strong possibility Of another
record year. Large purchases were
also made by the tAmtorg Trading
Corporation in April and May, 1929.
The growth of American exports to
the Soviet Union affected practical
" all groups of commodities. The
greater part Of the purchases in this
country for the past five years was
made up Of raw materials, partic-
ularly cotton. Purchases by the
Textile Syndicate since its inagura-
ton in December, 1928, up to May,
- 1s~I