The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-11-12
7 for I
That Is Dollar Cost of
Russian Credit in
Other Countries.
BY WILLIAM PHILIP SIMMS
scripDs- Howard Foreign Editor

XXTASHINGTON, Nov. 12.-The
w specter of war between Rus
STA and Japan over Manchuria was
ridiculed here today by Mark
Plavnik, Washington business man
and economist, who just has re-
turned from a tour of several
months observation in the Soviet
republic.
Aided by his perfect command of
the language and his knowledge
Of the country-he was born there
-Playnik brought back an I'M
usually clear picture of Russian
conditions, from the Baltic to the
Urals.
Only a distinctly and deliberately
aggressive act on the part of the
japanese, he intimated, could bring
Russia into the fray, as everybody
with whom he talked regarded war
at this time as the worst calamity
that could befall the nation.
THE five-year plan" Plavnik de-
clared, now is approaching COM
pletion. But this fve-year period
Of characterization is to be fol-
loved by second five-year period
of mechanization, and all the ma
tional resources in energy and cap
jtal are essential to the plans
success.
ID USSIA'S vast need for capital
IN with which to put through
her program does not seem well
understood abroad. She is accused
of dumping commodities in Amer
lea and other foreign countries in
an attempt to undermine capital
istic institutions.
The truth, as I saw it, is quite
different. For every dollars worth
of credit she obtains abroad with
which to buy machinery and other
necessities, she must export four
teen rubles' worth of her own prod
ucts AS a ruble in Russia is a
little more than so cents, this
means she must export ST worth
of stuff to pay for 81 worth
abroad.
Russia, therefore, is not DELHI
erately dumping goods to hurt us
or anybody else. She is exporting
goods because compelled to do so
to pay her way.
ITO obtain these foreign credits
the Russians are undergoing hard
ships such as fe wpeople ever vol
unfairly accepted. They eat black
bread. Butter is unknown on a
Russian table.
In the home of a high official
whom I visited we had meat only
twice a week. In. the land of
caviar, nobody eats caviar. But
nobody complains. These and other
products are shipped abroad to get
credits-at the rate of ST worth
for ST..
TN Berlin, I saw Russian shoes
i selling for $3.50. The same
shoes, in Moscow, sold for 40 rubles
$40. The reason was as I have
already indicated-the need of
credits, plus the fact that the Rus
sian price deliberately is put way
up. At $3.50 a pair, the people
would be wasteful. At $40 a pair
they buy seldom, making one pair
last long time.
This system, not generally
understood abroad, is widely APP
piled with the result that Russia
has much larger exportable sur
plus to exchange for foreign
credits.
Il saw no signs of wheat short
age in Russia. What might look
like a shortage is being caused by
the retention of more wheat this
year for use inside the country AS
her program draws nearer compile
ton, she naturally can retain more
of her own products for domestic
use.
Another popular conception
abroad is that Russia is trying to
communize the world. While the
people with whom I talked natur-
ally hoped to see other countries
follow their example, they admit
the only way to bring that about
is not by force, but by making
Russia such a success that others
will want to be like her"