The Washington times., 1931-10-17

Russia worth
Raymond p. Brandt consideration,
except gold. platinum and jew
elry in the hands of the Boil
shevik government. The people
are starving, cold and under.
clad. If they had any cOnSum.
able commodities they would
have consumed them long since"
Later in the statment he said:
Europe cannot recover its
economic stability until Russia
returns to production. Trading
with this parcel of gold would
not effect this remedyVnOr
would the goods obtained by
the BOlShevik restore their pro-
ductiOn. That requires abandon
ment Of their present economic
system.
During the 10 years which have
elapsed since the issuance of the
statement, Soviet Russia has
made tremendous progress in pro-
duction and despite lack Of CO.
operation by their government a
few American business men have
found a rich market there.
American bankers, however,
for their own purposes have re-
fused to take Russian acceptances
unless given discounts of Is to 80
per cent.
The result has been, accord
ing to Senator Borah and others.
that only American concerns with
strong capital reserves can do
business with Russia.
Heavy Trade Balance
During the past seven years,
according to Russian statistics,
the United States has accumu-
lated a favorable trade balance
of $500,O00, 600 if various overhead
expenses incurred in connection
with the Russian purchases are
taken into account.
The American Department OF
Commerce admits that the Rus
slams have paid all their bills
and that not one American firm
through the fault of the Russian
government has lost one cent on
credit extended to cover Russian
purchases.
Since October last year the
Soviet government has been trans
ferring its purchases from the
United States to European coun-
tries.
The reason is not so much recog-
milton, although almost all Euro
pean countries have recognized
Soviet Russia, as it is credit.
Russian officials, discus sin g
their trade difficulties with the
United States, say that the Rus
sian purchases in the United
States are being curtailed because
of inadequate credit facilities and
attacks on Soviet exports to the
United States.
These attacks are usually in the
form of accusations of dumping
or of employment of forced lab y
in the production of Soviet export
goods.
The Russians say that all allega-
tions of dumping" or EN-. at
1rced labor on export goods
have been unsubstanSiated and
have, in fact, no basis of reality.
What Russia Would Like
American sales to Russia. these
officials say, would be greatly
increased if the following five
point plan could be adopted:
1. Substantial increase in the
amounts and improvement in the
terms of credit granted by Ameri-
can manufacturer on Soviet pur.
chases.
2. Creation of a financing or.
ganiZatiOn to stimulate Soviet
American trade by means Of ex-
tentiOnS of loans and credits.
3. Normal financing of AmtOrg
acceptanceS by American banks.
4. Conclusion Of general agree
mentS covering orders for q Pc
riOd Of years.
S. Elimination of all difficulties
and creation of normal conditions
respecting importation of Soviet
products into the United States.
GCIuId1ly, GIAS1dLIUs 4IdAy nAAO
Austria, say Russian officials,
have established systems for Civ
ing normal credits to Russia.
France recently negotiated a
credit scheme which will give her
q share of the Russian purchases
The European credits, even the
British. are through governmental
or semi-governmental agencies.
It is difficult. however, for the
writer to visualize the present Ad-
miniStration in Washington adopt
ing any such plan.
What Great Britain Does
In Great Britain. the govern
ment insures the British manu-
facturer up to so per cent of the
purchases at cost of II to IL
per cent.
This insurance is issued through
the Exports Credit Guarantee De
partment by the Minister of Over
seas Trade who is a member Of
the Board Of Trade and the For.
ain office,