Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-06
SOVIET BIC BUYER
of AMERICAN GOODS
FOR PLANTS, FARMS
New York Agent Thinks More
Would Be Bought in U. S.
With More Credit.
CONSUMPTION OF GOODS
IS HEALTHY TRADE SIGN
Banker Expects Present Business
Ills to Be Ironed Out Before
Many Months.
BY JOHN F. SINCLAIR.

ment that does not recognize hard
times, at least not officially.
Peter A. Bogdanov, chairman of the
Anitorg lradlng Corporation, passing
on purchasing contracts for millions of
agricultural and industrial machinery
from the United States for use in
RUSSIA. is one Of the busiest men in
New York City. '''''i III
High up in his Fifth avenue skv-
Scraper office, this bewiskered Soviet
representative spends his hours meet
ing some OF the big business leaders.
VINO nope 10 sell the Soviet representa-
i've more and still more millions of
dollars worth of American made goods,
~ Just one conference after another
, with Bogdanov.
After office hours he rides horse
back in the park, plays tennis and
walks. BY profession a civil engineer.
ms SIX months sojourn in the United
states already has impressed him with
! can life.
While England sold to the Soviet
| government approximately $4,000 600
worth of goods in 1929, the bill of goods
from the United States was about three
| times as much.
From the Soviet government stand
point, being chairman of the Amtorg
| trading Corporation of New York is
the most important commercial posi-
/ ton a Soviet representative can fill,
outside OF the Soviet cabinet.
| Russia would buy even more from
the United States" said Mr.. Boedanov,
III American banks we're willing to ex-
tend more credit. But until that time
we must be content to do less business
than we otherwise could
Expects Business Pickup.
DR.. w. Randolph Burgess. deputy
governor of the Federal Reserve Bank
of New York, believes that improve
ment in the business activity may be
expected before many months.
While the present depression is the
most severe since 1921, DR.. Burgess does
not believe that there is any clear evil
dence yet that the recession has come
| to an end.
Two important facts may, however,
be noted about the recession First,
! that the actual decline in the volume of
business activity is nothing like as Sc
we're as might be assumed from much
of the public discussion. The decrease
in business since May of last year has
been about IL per cent
The second important fact about the
recession is that while production is
considerably depressed, consumption is
very little depressed"
Then this New York banker made
this thoughtful statement:
The continuation of the consumption
of goods at a fairly even pace by
! l20.000,o00 people requires continual
flow Of goods from the wholesaler to
| the consumer and from the producer
| to the wholesaler, and this gives us as
Surance that Just as in former times the
| economic Embellishments of this period
will be ironed out before many months
have elapsed"
Exactly! This is the crux OF the
whole matter. The prime element. how
ever. as to Just when consumption Will
catch up with Observation-Disclosures in
the popular senSe-is all that stands IN
the way of saying just when business
recovery will begin.
Canada Will Borrow.
Canada, one of the worlds richest
nations, with per capita income near
the very top, and with her latent re-
sources almost untouched, will soon be
a borrower in the New York market.
| A low rate of interest is certain.
Charles Stewart, Canadian minister
of the interior, estimates that in 1927
the national wealth, exclusive of unde-
veloped natural resources, was little
more than $27, 500,000,000 Against
that must be placed her national debt
at little less than $2,250,000,0G0.
Canada's internal finances now are
in excellent shape. For the last fiscal
to SAT-, 100000 and her outgo or ex-
penses S402, 100000, thus closing the
year with a surplus of S45,000,O00.
Canadas field crop acreage in West
ern Canada increased over 100000
acres during the last 10 years.
mo less impressive has been the
advance of hydro electric development,
i - l. L. 80
effect of increasing Canada's total
waterpower installation by roundly
5000, 900 horsepower" said Mr.. Stewart
Nor can her mining industry produce
| ing over $300000,000 of new wealth
annually. be ignored"
Canada's credit rating should be
A A A.
Hurt Movie Trade.
The tom Thumb" golf courses, In
many cities, are having an adverse
effect on Summer movie" attendance.
| Springing up like mushrooms all over
the land CLOS Angeles County has over
1000 of them) many of them are
reported to be coming money.
The tiny golf course, on a vacant
city lot, costs from $4,000 to $4,000 to
build. "A charge of from 20 cents to
| so cents, depending upon the location.
is made for one round of golf. 1t has
| caught the popular fancy. some are
! reported to be earning as high as $500
/ day.
In California, the Fox West Coast
Theaters have definitely decided to lay
out dozen of the courses in order 20
secure part of the trade.
Nothing. on the business side of
amusements, has been accepted as
eagerly as these miniature golf courses.
| Already there are over $4,000 operating
now throughout the United States-and
the Summc? has only begun.
Easy Credit Losses.
Wroe Anderson, chain store specialist
IN the United States Department of
Commerce, says that much of the COM
mercial troubles of retail stores is due
to easy credit and bad debts" rather
than "ineXperience or chain store COM
petition"
Mr.. Anderson reports that of 416
| stores studied, 80 of them were on the
verge of bankruptcy directly due to
bad debts and easy credit" Only 2
of the 80 laid their troubles to Chain
store competition
The report of the Department of
Commerce on the subject of chain store
and its relation to business should throw
plenty of light on merchandising SUBJ
jects now more or less guessed at
Credit, that dynamite of retail bllsi-
ness, will take on new meaning and
new importance,
(Convriahk foNo0