Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-16

Continued From Third page,l
the troubles Of the civil war, and the
Firms were not unprepared 10 meet II.
But the prices the Soviet is prepared to
accept are definitely below Finnish
costs of production.
A German merchant who formerly
handled only Finnish timber told me
that he was obliged to transfer his
business TO Russia or go bankrupt, so
large are the cuts that are being made.
Moreover, the Soviet is ever ON
the lookout for fresh markets. It's
recently concluded an agreement
with q Lithuanian group, headed
by q former premier, Galvanankas,
which, understand, viii supply
all the needs Of that country. This Is
nasty blow for Poland, destroying
whatever faint hopes the Poles may
have had of exporting their timber to
Memal.
At the head of the state trusts in
Russia are shrewd men, wen informed
about market tendencies. Observing
the growing demand for ply-wood, Elk
portles is selling good quality wood Of
this description at prices ranging from
So to SIS q ton below market levels.
1t Is not generally realized that It
has lately been the policy Of the Soviet
trusts to cut in on markets which they
know perfectly well they cannot con-
tinue to supply. Thus, within the last
few months, Russia decided to enter
the sausage castings market and slashed
prices with such effect that American
beef middles which had been selling at
$11.25 per set fell to so cents Suddenly
the Russian supplies dwindled to an al
2TaGfavafAAnvaf h...k
enough to keep prices well below their
former levels.
Purposes Of Russia.
From this It may be argued that
RuSsiaS motive In slaughtering prices Is
not merely to get dollars, and to get
them quickly, but that there u the In
tention Of deliberately sabotaging West
ern industry.
Similarly with fruit. Russia "a not at
present 9 great fruit-exporting country,
yet by dtnt OF cutting prices to q figure
well below that at which American and
Australian producers are able to supply,
so prominent German importer In
formed me, Russia has doubled her ex-
ports Of apples to Germany within the
last IL months. They now total
1000, 900 tons.
A trade agreement with Italy, signed
in August, Is in full swing. In return
for italian manufactures, chiefly air.
planes, engines and motor cars, valued
at $4,000, 900 annually, Russia Is sup
plying Italy with naphtha, grain and oil.
Special clauses give italian ships privi-
leges In the Black Sea, enabling Russian
grain to be shipped to Genoa In Italian
Already 2,soO,oOo quintaIs, or one
sixth Of Italys annual consumption, has
been obtained from Russia, and the
quantity Is to be increased each month.
1t Is being sold at prices well below
those OF the native product. Italians
are asking whether their farmers are to
be sacrificed to the Russian bumpers.
Vast Wheat Harvest.
The dumping of wheat Is indeed the
most serious and spectacular aspect Of
bumper harvest, estimated at 90, 900 900
tons, exceeds the normal needs Of the
population by at least 100000 tons.
In forming any estimate Of the probable
extent Of the Soviet grain exports &c
must be remembered that bread Is q
rationed commodity and that the nor
NAL needs of the people are not likely
to be supplied. On the other hand,
there Is much wastage through lack Of
storage and transport facilities and the
difficulty Of collection. The Soviet ari-
thorities place the limit of export ct
100000 tons, of which about half viii
be wheat, and this figure Is not likely to
be greatly exceeded.
But 100000 tons Of grain thrown on
an already glutted market can PLAY
havoc with prices. In Britain, where
OF all the grain coming from overseas
so per cent has been Russian, the situa-
ton has led to fierce criticism of the
proprtety Of the action Of the Co-opera-
tive Wholesale Society, the largest hour
importing nearly as much Russian grain
as 1t bought from Canada, where a large
surplus has been held over from last