Plentywood herald., 1932-02-18

59,652,000 rubles larger than the neg
ative balance for the corresponding
period Of last year, says this was due
entirely to long term credit orders,
chiefly in Germany, final payments
for which will not be made for
year and half or two years.
/ \ But when such 4finaJ" as we'll, as
any intermediate credits are due by
| the end of next year or in 1898, can
there still be enough gold left to
meet them7 II the adverse balance
continues at the present rate the Sow
let, instead Of being able to iquidate
maturing credits, may be in the hole
at least twice as deep as it is now.
! Either the Five Year Plan must be
slowed down, say to ten years if not
| abandoned entirely, or it would seem
| likely that foreign commercial cred
| its to the Soviet, will share the fate
| of the loans to the Czarist and Ker-
ensky governments.
In this connection it would seem
to me that while it is desirable for
this country to give all possible as
sistance, if only for the sake OF our
| own business, to the rehabilitation
OF Germany, yet we should be careful
in connection with any further mora
torium, or further scaling down or
cancellation of European debts, not
to permit our resources and credits
to be indirectly used for helping Sow
ret Russia out with its unsound and
warfike Five Year Plan. We should
| not settle on our own taxpayers loss
es on foolish risks incurred either in
our own country or by Germany, on
that sinister Soviet business.
Big factories and other buildings
going UP all over Soviet Russia give,
it is true, realistic and impressive
picture of the accomplishments of
the Five Year Plan. But the hugely
mounting debts owed in other conn-
tries, and the skyscraper internal
note issues rising FapidlD from a
small and disappearing gold base,
give US another picture that fnan-
cially might be likened to the lean
| ing tower of Pisa. Expanding Sow
let farms, and multiplication Of
tractors for multiplying the predue-
tion of wheat, cotton and other
staples have their realistic and un-
| pleasant vision of trouble for Amer
lean farmers. But the inflationary
! expansion of the Soviet monetary sys-
tenn with its multiplication of red
rabbit rubles presents q tragic living
picture OF great people being swim
died and pauperized, and when work
| is not actually forced out of them,
is really looted out Of them, so that
the harder they work and the more
/, they produce the less they really get
! for their toll and suffering Soviet
Russia in its mad rush not merely in
five but even in four years, to catch
up with and overtake the United
States industrially and agriculturally,
! is like the frog which envied the OK,
| and in IT'S effort to bloat himself up
Ito equality, simply got busted Its
huge factories built at enormous cost
are now revealed as badly coordin-
ated, inefficient and money losing en-
terprises. 1t is said that former
President Coolidge in attending di-
| rectors' meetings of leading life in
surance company, seldom says any
thing at the meetings except that
whenever any new innovation is con-
sf1ered he asks, what does it COST"
and then, What good will it dot"
These simple queries have made him
a valuable director because they pre-
| vent unwise and unnecessary expend-
ing OF money In Soviet Russia the
/ Five Year Plan is carried on at
staggering expense out of all pro-
portions to what its Accomplishments
might be worth. Probably the only
substantial good it will do, viii be
as monumental object lesson Of
economic and financial folly. And
this reminds me of the man who,
just berure his execution, was asked
/ # he had anything to say. He re-
piled, "I've been taught wonderful
lesson"
The Five Year Plan was q FOOLS
paradise proposition to be paid by
dumping and by borrowing. Exports
were attenuated in value by calling
below reasonable costs to get cash
Imports were bloated in value by the
high costs Of bad credit and enor-
nous interest charges on risky cred
its. The internal financial structure
is found on what they call the Afirm
power for ruble initiation to meet
building costs, wages, etc This firm
cover" comprises all foreign curren-
cies, foreign exchange credits from
exports, as well as any precious met
ais taken from mines, or robbed
from churches or obtained in any pos
sible way BY a bootstrap pulling
process of financial legerdernain,
there is an emission of rubles from
the firm cover" basis. this. ike \