Evening star., 1932-09-17
BARTER IS URGED
FOR SOVIET TRADE
Manufacturers Export AS
sociation to Consider
New Credit Plan.
Special Dispatch to The Star.


NEW YORK, September ia modi-
fed barter plan, to revive trade between
the United States and the Soviet, will
be laid before members of the Amer
ican Manufacturers Export Association
here next week. This proposal follows
drop in Soviet American trade from
s103 ,000, 900 in 1881 to $35.000,0 900 thus
far this year, resulting from difficulties
in arranging credit terms.
Under the proposal Soviet goods, non-
competitive with American products
would be warehoused here under Amer
ican control and certificates would be
issued against such stored goods up to
so per cent Of the value of purchases
made in this country by the Soviet.
Discount Privilege
American manufacturers accepting
such certificates would be able to dis
count them at their local banks. Fur
thermore, insurance companies would
insure Is to 20 per cent of the value OF
all orders. In the past American man.
ufacturers doing business with Russia
have had to discount Soviet paper at
rates as high as 30 per cent, because
American banking institutions refused
to handle or discount such paper pend
ing the resumption of diplomatic rela-
tions between the United States and
Russia.
The manufacturer In this country
with his Russian orders covered from
IS to 80 per cent of their face value by
security acceptable to American banks
could sccert the risk of 20 to 25 pei
cent, waiting for such payments from
Is to 80 months, as the Russian cred
itors might ask.
Where such warehouses would be 10.
Gated has not yet been decided, but
Americans and Russians interested ir
the plan have received offers of the free
use Of land In Baltimore, the use oi
former Government warehouses now
owned by the city of Charleston. S. c.
and concessions from other seaboarc
ports.
When Moscow advises how official,
there react to the plan, an independent
solely under American leadership. bu
| utilizing the services Of Soviet engineer!
and interpreters, may be set up.
Organizations that have discussed tht
possibilities of this modified barter plar
include the American-Russian Cham
Der Of Commerce, the Amtorg Trading
Corporation, the American Foreign
Credit Underwriters Association and
the American Manufacturers Expor,
Association.
Signs OF Progress.
Paul F. Drachuk, vice president ano
treasurer of the Amtorg Trading Cor
poration, representatives of Russia in
this country, now is on his way tc
Moscow to lay proposals before Soviet
officials.
AS importers and exporters discussed
this Soviet-American proposal and
noted increased inquiries from various
parts Of the world, manufacturers and
jobbers whose industrial outlook is
largely confined to American borders
noted further signs of domestic
progress.
Buyers arriving In this market during
the week ended Tuesday numbered
1900, the highest for any week since
| the first seven-day period in February
1890 The New York Furniture Ex-
change reported its activity at the
highest rate since 1929. Southern
mills notified their agents here OF
underwear price advances ranging from
12la to 25 cents a dozen. Local mills
advanced most of their silk fabric
prices 10 to Is per cent. Towel mills
reported bookings through october.
Activity in the mems clothing trade
has broadened in the last two days
throwing additional emphasis on th'
| meeting late Tuesday of SO leadin&
| executives of that business. They votea
to form an association representing al
branches of the trade and discussed {
seven-point program, which included
the naming of car, approval Of al
| advertising campaign featuring men
! styles and fashions. and unified at
tempts to promote quality merchandise
| (Copyright, 1922