Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-05

Continued From First Page)
year plan has not progressed far enough
to give Russia production big enough
to supply her domestic needs and yet
yield surplus for export.
Shortage of Necessities.
Some one recently made a list Of 70
articles which could be classed as me
cessities of life" and a check showed
there was dire shortage in every one
Of them in Russia. While conditions
for the average man in Russie may be
better than they were under the Gar.
they still are far below the standard of
living in Germany and other countries.
Stories of privation and Self-denial are
leaking through the censorship at Mos
COW.
What does all this ultimately mean
for Russia? She needs goods and needs
everything badly. But she has no world
credit. She can absorb as much Amert-
can goods as Americans are willing to
sell her. 1t has been estimated she would
take a billion dollars worth easily If
she could get it on credit.
But the reputation Of earlier debts
Of the Russian government under the
Car and tha, unwlllingneSs to restore
conhscated property has made Russia
bad risk In the investment markets
of the world. The investor sees no
distinction between monarchy, or re-
public or communistic regime II the
same people refuse to recognize the
Sanctity of contracts made in their
name by the ruling sovereign.
Promises End of Rations.
Russia today is living under sys-
tenn of rationing and controlled prices.
NJ. Stain has promised that in 1882
rationing will be lifted and that prices
will be controlled With the known
shortages this means in the opinion
of economists here soaring prices and
the end of the inflated ruble unless
Russia can find a way to make her
, internal currency have a stabilized value
in terms of external money.
Today the ruble officially trades in
at about two for dollar. but actually
1t has a value running from so to 100
or more rubleS to dollar This would
long ago have reached the fanciful
heights of the oldtime German paper
mark, but for the control inside Russia
and the fat value given the money
within the Soviet borders.
Economic laws and the laws of money,
however. are memorable and the failure
to get credit abroad means Russia must
| amaSS cash. She must have gold. To
| get it she has to dump in the markets
| of the world. Her policy of dumping
was never intended as hostile measure
to other countries, but as a desperate
measure of self-preservation. Russia is
coming to the end of her rope unless
| the capitalistic world can help her out.
Want Guarantee to Congress.
Already there are plans afoot by
, American concerns who will petition
Congress next December to grant a
hugh credit against which American
Arms can sell to Russia. In other
| words, If the Russian government would
| guarantee the American Government
that the credit would be paid, the
American companies could afford TO
| take the chance of selling so per cent
on cash and the rest on credit or on
some other basis satisfactory to Russia.
Today some American exporters re-
quire so per cent in cash before snip
ment and the rest in installmentS. One
industry has an agreement among It's
members that all will require the same
credit terms. American companies are
| not taking risks, much as they want 20
| sell their goods.
So far as the United States Govern
ment is concerned 1t has not changed
its policy with regard TO recognition.
It's terms are the same as they have
been before-recognitio of existing in
! debtedness to the American Govern
ment and provisions for refunding the
same, a stoppage absolutely of propa-
ganda IN America designed to over
/ throw the American system of govern
7 49, 10 hn
! sanctity of international obligations.
| lCopyright. 1881, BY Consolidated PressO