The Washington times., 1930-10-01
SOVIET TACTICS
HURT WORLDS
BUSINESS
stf HAW" NN

In an effort to ascertain the
cost and effect Of the dumping
Of various commodities on. the
markets Of the world by the
Soviets, investigators within the
last few days have made q
searching inquiry among both the
sellers and receivers Of the goods
m; the European markets.
The widespread concern over
the flooding of European markets
BY the Russians with a score Of
the worlds leading staple prod
uctS, as well as grain and other
toodstuffs, has naturally aroused
q belief in Europe and America
that the SovietS have embarked
on q deliberate policy to ruin the
So-called capitalists markets. Not
only wheat, but practically every
leading agricultural and mineral
product has within the last two
weeks felt the effect of this
dumping. Fruits, meats, hides,
timber, wood pulp, petroleum and
dairy products are among the
staples which have been offered
at prices from 10 to 80 per cent
below current quotations, and the
supply Of which appears to be
sufficient to break the backs Of
some Of the European markets.
Situation Desperate
On behalf Of the Russians, it is
said that their situation, as re-
flected in the dwindling money
supplies, is desperate. The au-
thOritieS there are willing to ex-
change commodities on any oasis
of valuation in order to bring in
funds with which to buy agricul-
tural implements and machinery
to facilitate their carrying out Of
their so-called five-year plan OF
rehabilitation. tt is affirmed
that the SovietS are not so much
interested in destroying the capi-
talistic system Of the other civil
ized nations as they are in self
preservation.
Unless they can secure purchas-
ing power with which to bring in
needed implements to their own
country, they see the end Of the
revolutionary machine which up
to the present time has succeeded
in deluding millions of peasants.
Combating this argument, 1t is
pointed out that though price cut
ting of / or 2 per cent below COM
petitive price levels in Europe, as
q whole, would be sufficient to in
sure the sale Of their goods, the
Soviets are actually cutting them
from 10 to 80 per cent and max
ing the whole system OF collective
bargaining appear ridiculous.
Buying Lower
It, lis. claimed that after the
agents of the Russian government
have sold go0ds lin large volume
to the Wholesalers, jobbers ana
other distributors, they then go
out into. the retail markets and
offer the goods at lower prices
than were quoted to the whole
saIer. In other words, they are
cutting right and left in what ap-
pears to be a deliberate effort to
demoralize the worlds markets in
a manner that can bring no posi-
BILE benefit to themselves.
Naturally, actions of this kind
have an unSettling effect upon
business. and financial leaders in
competing countries, and already
England, France and Germany
have taken vigorous steps to pro-
tect their own markets against
this demoralizing influence. Many
of our prominent American bust
ness heads believed that it would
have been much better if our
American Department Of Agricul-
ture had embarked upon secret de-
fensive measures against the Sow
lets instead of shouting to the
world that the short selling Of
few million bushels Of wheat had
practically ruined prices for the
grain,