Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-25
Sl)V|ETS HIT HARD,
GERMANSDECLARE
Debt Moratorium Rumored as
i Russia Feels Force of
Depression.
~ FRRnERICK WTLLTAM WTIE.

~ FREDERICK WILLIAM VILE.
Has the world economic crisis ut
length hit Soviet Russia and driven the
Communists into the capitalistic camp
This 70 the far-reachins question raised
By reports received in Warrington from
Europe In the last 20 hours to the effect
that the Moscow government is seeking
Q moratorium on some Of It's heavy OBJ
legations abroad.
The reports emanate from Germania.
Ofkicial organ Of Chancellor BrueniDg's
Roman Catholic Center party ut Berlin.
The Soviet authorities have hastened
70 deny the stories, which are also
branded 90 unfounded by the Soviet
embassy In Berlin. But an attempt by
the Communist government to obtain
IN extension Of It's financial commit
ments IN foreign countries would be the
logical consequence OF recent economic
Developments throughout the world.
hit ny British Suspension.
Foremost in these developments, from
the Russian standpoint, Is the abandon
naeSt of the gold standard by Great
Britain and the serious shrinkage in the
value Of the pound sterling. The Soviet
has It's most favorable BALANCE Of trade
in Great Britain, represented Of course,
by pounds. The least favorable Soviet
trade balance Is in the United States,
because Russian purchases in this coun-
try % far outstfip Soviet exports to
America. The Communists have to pay
for. their American imports In British
pounds and. Of course. must now buy
IS or 30 per cent more of British Ster.
ling 70 meet Soviet dollar obligations
than would have been necessary prior
to September 10, when the British
went on the gold standard.
The Soviets have planned their ex-
tensive purchasing system abroad on
the basis Of their export program. This
export program has received body
blow and been shattered 10 Ito founda.
tions through the heavy decline of COM
modify prices In all the markets Of the
world. Yet the necessity remains In
cumbent upon the Communist govern
ment TO meet It's longtime commit
ments In the United States, Germany
and elsewhere by exports. The stun
Russia sells abroad, like commodities
from every other country, must now be
disposed Of at prices vastly lower than
the Soviet bargained for.
Dependent on Others.
80, despite Bolshevist economic theo-
ries and eloatings, Soviet Russia 10 be-
ginning TO feel seriously the pinch Of
depression which has struck the de-
spised capitalistic universe. Events are
showing, even to Stain, that the five-
year plan u to an important degree de-
pendent on the outside, nom Communist
world. This Is what Leon Trotsky all
ways insisted would be the case when
he opposed Stain on this issue. Trot-
sky. said. you can't build Sovietasm in
49, -. s.,@.s~s -ssS;@ 49,. 1..,t a. v,siI
Iced 70 nothing n yCu have to plan In
o hostile CAPITALISTS environment. You
must at least. have as1ether highly In
dtfstrialixed country within the Soviet
system II you ere going to build Boil
siaeviam on o lasting economic basis"
Il was on this theory that Trotsky
came out for his doctrine Of "perma-
nent revolution" carried from one
country TO another, IS essential to any
erduring program OF building Bolshev-
Ehe net Of all this, stripped Of non
essemtiAls, IN said by competent Wash.
inKx0n atudents OF Russian develop
izsRpks % q thsz the soviet " being
fezlaationai events to realize that Il de-
psnds on the outside eapitalistic UNI
Used a. PolilcaI Capital.
TO date the Soviet leaders have been
able 70 capitalize politically on world
wide depression. boasting that It had
not and could not AFFECT the Connmu-
nistic state, and thus build up is mo-
raie, but the cyclone sweeping the rest
OF the globe has finally blown across
Russia. The Soviet finds itself, con-
trary 70 Communistic preachings, hit,
and hit harder, washington authorities
say, than Moscow IS Is yet willing to
admit.
Stain win not proclaim the truth till
its concealment no longer Is possible, 1t
Is said. Prediction Is hazarded that
sooner or later the Moscow man Of
steel will have to come out and say,
Comrades, we must hold up the five-
year plan because the capitalisttc syS-
tenn has gone busti"