Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-16
RUSSIAN DUMPING
METHODS DECR|ED
New York Bank Official Fears
u. S. Trade Is Involved
in Menace.
Special Dispatch to The Star

Special Dispatch to The Star.
NEW YORK, March 16-Russian
competition offers an immediate rather
than long-term problem, in the opin-
ion of r. Whittlesey, vice president of
the Central Hanover Bank & Trust Co.,
writing in the current issue of the
Financial Digest.
1.-THE world is definitely swinging to
a policy of protection and Russian
dumping meets anything but lenient
temper. 1t is hardly probable that the
countries of the world will be content
to see their merchants, manufacturers
and farmers seriously injured without
taking defensive measures" Mr.. Whit
tlesey states, and continues:
Russian export trade is embryonic
and incipient Nevertheless it has grown
from practically nothing and is grow
ing. Even today, however, the impor-
tant thing is not so much the actual
volume as the Russian practice regard
ing prices, and the serious results that
this price policy can have for well Or
ganized and legitimate trade. Russian
products find a ready market for the
simple reason that the purchaser prac-
tically makes the price. Foreign trade
as well as production are in the hands
of the government, and prices are made
as circumstances dictate"
u. S. Involved.
Russian competition involves us di-
rectly and indirectly. Directly as Rus
sian dumping may choose the United
States for its object, and indirectly as
the practice may affect the exports of
countries with which we trade or to
which we lend money, and who lind
their markets reduced and consequently
their ability lessened either to pay their
debts or buy our merchandise" MI.
WhittleSey states, and continues:
This discussion is in no sense an at
tack on Russia nor it is motivated by
opposition to Communism or Soviet
theories. We trade with many nations.
But in Russia the cruX of trade plans
consists of labor policies dictated by
central authority without thought Of
costs of production or profits. The
ideal is to organize a vast labor army
submissive and obedient, having no part
in trade operations which are controlled
by considerations of economic and po-
litical strategy, and the meal tickets
now proposed mean simply that those
who do not work shall not eat. In sim
pie terms, Russian practice includes all
the power of the German cartel with
the addition of the inVincible element
of price policies which do not consider
profits"
The widely noted purchases Of Rus
STA in this country should be considered
together with the fact that Russia is
a buyer today SO that she may be seller
tomorrow under conditions OF complete
~ unfair competition" Russian pur-
chases should also be weighed against
the hundreds of millions lost by our
citizens and the Government as re-
suit of debt reputation and conflSca-
ton of property. Mr.. WhittleSey be-
lieves that the present world depression
is largely a case of underconsumption
and RuSsia's part in this, as result
of living conditions in Russia and Sow
let Vaccinations in the Orient, is
large one.
Evolution of Nations.
I'm approaching the Russian problem,
however we should not fail to consider
the evolution of nations and the fact
that many countries have evolved from
a feudal state under the pressure OF
economic and social changes" Mr..
Whittlesey states. IF the five-year-
plan bscames the 10-year-plan, the 20
year-plan, or what you will, Russia may
became productive not alone in the
mines and fields, but also in the fac
tories. Provided always that the polit-
ical situation does not change, and that
foreign aid and assistance continue,
particularly from the United States. If
the process of change be extended over
a period Of decades, the history Of the
progress of other nations from SerfdCm
may well be repeated in Russia, and the
communistic theories of today may give
place to the practice which, with all of
its shortcomings and inadequacies,
modern nations have found to be the
only workable plan. The Russian COM
petitive menace therefore may possibly
be more Of the immediate than the dis
tant future, which, in view of world
conditions, makes it all the more i'm
pcrtant that the situation be met
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