The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-26
U. S. TRADE WITH
RUSSIA RUINED
BY CREDIT RATE
High Figure for Discount
Drives Soviet Buyers to
European Countries.
BY WILLIAM PHILIP SIMMS
scripps-Howard FOREIGN Editor

StIiuUh- NnN dAu ANANhAN 1870
NEW YORK, April 26.--From 10
to AZ per cent a year--from Ia to
3lz per cent a months the pres
ent discount rate on acceptances
representing Russian orders 10
American concerns.
Because of this absolutely ruinous
rate-mainly due, bankers here state,
to the abnormal relations between
the United States and Russia-Euro-
pean competitors practically have
driven United States concerns from
the field. throwing thousands OF
American workers out Of employ
ment.
AS If this we're not amazing
enough, German and other foreign
repre- 1ntatives here are said to be
using American money. originally
loaned abroad. TO buy up Russia's
one. two and three-year promises to
pay. at this stupendous profit to
themselves.
Pays All Bills
Apparently little or no risk is in
volved, since il is everywhere ad-
mitted that in the last ten years
Russia has bought billions Of dol
lars worth Of foreign products
without defaulting on single
penny
Meanwhile, business men here
assert, other European nations,
now on the verge of bankruptcy,
and which either are in default or
are threatening to default, nave
been financed by Americans to the
tune of billions Of dollars.
The blame for killing Americas
very profitable and growing trade
with Russia is placed variously. a
few blame the uncertainty" Of the
whole Russian experiment Some
blame the banks. But most blame
Washington for virtually outlawing
and boycotting the Soviet union.
Betrayed by Bankers
1.-THE historians of this crisis
surely will agree that American
business was betrayed by the New
York bankers who refused to grant
credits to Russia declared Miles
M. Sherover, construction engineer
who recently returned here, after
sixteen months in Russia as tech
nical adviser to the Soviet steel ana
motor plant contractors.
an the midst of an era Oh
moratorium, standstill agreements,
bankruptcies, and default" he con-
tinued, Russia stands out as the
only country which meets its ollls
promptly and fully. would rate
Russian credit higher than that OF
any European country, with the
nossible exception of England.
DISPATCHES from Moscow quote
Robert P. Lamont Jr., son OF the
United States secretary OF COM
merce. as saying Americans are
"cutting off their noses to spite their
faces" when they fail to go after
Russian business.
1.-THE sooner Soviet Russia builds
herself up" he said, "the better OIL
the rest of the world will be.
Hiram Johnson Urges Action
Charging that it is simply eco
nOmlc 1QlOCy 1OI CAlC OAASOA ON.-N
to block trade with Russia at this
time. Senator Hiram Johnson (Rep.,
Cal). a high ranking member OF
the foreign relations committee. to-
dav came out for normal relations
with the Soviet Union, for two
persuasive and compelling reasons,
he told Scripps- Howard newspapers.
First, there are billions of dol
lars worth of future orders in RUS
STA for American workers to fill, and
in these times it is simply economic
idiocy for America, by its policies,
to preclude Americans from trace
and commerce which so readily
could be obtained.
second the question of peace or
war today is more delicately bal
enced than at any time since 1914.
At any moment the far east may
explode, plunge us into another
terrible conflict.
"The military faction in Japan is
in the saddle. 1t is responsible only
to the emperor, and that means 1t
has a, free hand for any mad ad-
venture in the Orient. America, by
a proper attitude toward Russia,
can do much to stay Japans hand