The Washington times., 1931-10-17
EAS|ERCRED|T WOULD GIVE
. j. S. SOVIET TRADE SHARE

~ ~ -
At first British credits were
only for six or nine months. Later
they were extended to a year, and
now they are granted for ID
months.
The outside discounts on the
Russian paper are as high as IS
per cent.
Thus If a British manufactures
pays IL or IL per cent on so per
cent of the order and discounts
the remaining 40 per, cent at rs
per cent the total discount Is
little over 20 per cent.
The BritiShers do not require
a down payment. American man.
ufacturers must take a Is to 80
per cent discount on acceptances
If they cannot hold the Russian
paper on their own.
Americans have been known to
demand a so per cent payment
in cash with the order.
Russian purchases in Germany
are expected to reach 5000, ,000, 900
this year because of the generous
long term credits given the Rus
slams. In April this year the
Germans established a credit
fund of 300, 900, 900 marks, approx
mately $4,000, 900, against Soviet
purchase.
Liberal German Terms
The German Russian agreement
shows how far the German gov
ernment and manufacturers will
60 in their efforts to find jobs
for German workmen.
The agreement covers three
classes of purchase, light, inter
mediate and heavy commodities.
No cash is required with the
orders and final payments are
from II to 80 months after de-
liverieS.
The light and heavy commodi-
tiles credits will suffice to show
how the agreement works. The
intermediate commodities credits
are more liberal than those for
the light and less liberal than
those for the heavy commodities.
|, If a German manufacturer took
an order for light commodities on
June l, 1881, for delivery on Au-
gust /, he would receive with the
order 20 per cent of the amount
in bills due September /, 1882; on
August l, the date of delivery,
he would receive SIS per cent in
bills due September /, 1882, and
Is per cent in bills due January
l, 1893.
If he obtained an order for
heavy commodities on June / for
delivery August /, he would re-
ceive on June 20 per cent in
bills due November !, 1888, and
on August /, so per cent in bills
due November /, 1888, and 80 per
cent in bills due May l, 1884.
Trade Sought by Italy
Several Italian trade delega-
tions were in Russia this summer
making their own investigation
VI GLduC pOSSAD1llCy.
Fascist Italy and Soviet Russia
are on such good terms that an
Italian-RusSia commercial treaty,
recently extended, gives Soviet
Russia credits for machinery and
equipment ranging up to four and
a half years.
The writer pointed out to the
Russian officials that the Euro
pean countries were granting
more liberal credits to Russia
than American concerns grant to
American consumers with AL
credit ratings. Their reply was
that export credits are usually
more liberal than domestic
credits.
Like other Europeans, the Rus
slams cannot understand why
they have difficulty in selling
goods to the United States when
the United States has a favor
able trade balance.
In the instance of Russia the
favorable balance to the United
States has been about S to /.
They cannot understand the
attitude of the Treasury Depart
ment or the followings of Repre-
sentative Hamilton Fish and
Matthew Woll and above all they
can't understand why they have
difficulties in obtaining visas for
Soviet executives and engineers
whom the government desires to
send to the United States to con-
duct negotiations for purchases.
Russian officials pointed out
that the Western European ma
tions were cultivating the Rus
sian market and they wanted to
know if American sentiment
would change soon.
The writer evaded the question
by saying it was a matter for
the Administration to decide.
monday Colonel Cooper on
Russia and the United States)