Evening star., 1933-06-11
BROOKHART FACES
BARRIERS TO TRADE
Former Senator Hopes to Ar
range Barter Agreement
With Russia.
b. the Associated Press

B. the Associated Press.
Former Senator Smith w. Brook
hart's explorations of Russian trade
Possibilities, as foreign trade investiga-
Eor for the Department of Agriculture,
Rre being watched by American farm
erS and manufacturers, as well as by
politically minded leaders.
Russia and China are two countries
i'm which the Department of Agricui-
ture believes there are great possibili-
ties for the sale of surplus American
Farm products.
The conclusion of the $50, ,000, 900 Re-
construction Finance Corporation loan
70 the Chinese government for the
purchase of American cotton and wheat
has aroused much speculation as to how
closed trade relations between Soviet
Russia and the United States might
be affected Since the bolshevist re-
gime has not been recognized by the
United States, direct agreements be-
tween the two governments presumably
cannot be arranged.
The Department of Agriculture has
Instructed former Senator Brookhart to
make his investigation Oh the theory
that barter may be effected. In other
words, Secretary WaliaceS department
plans to exchange such things as Amer
lean cotton, what, lard and manufac
tured products for Russian manganese
furs, pulp wood and other commodities
Brookhart Sees Amtorg.
In Soviet Russia the government
ho.ds a monopoly on foreign trade, and
its purchases in this country are made
by Amtorg, an official puying agency in
New York City, with which Brooknart
is now conferring.
Hitherto Russia has s.lo n little in
terest in barter. 1t has sought to sell
its petroleum, wood pulp lumber and
coal for cash, and has asked long-ti time
credit, varying from three to five years,
on purchases abroad
While American Government agen-
cies presumably cannot make loans to
Russia, such as the Reconstruction
Finance Corporation made to China,
with certain taxes as security, some
fore gn trade specialists think it is pos
sible that loans might be authorized
to American banks or corporations,
which would facilitate the extension of
credit to Soviet Russia for purchases
OF American goods.
Such an arrangement it is argued.
would make direct negotiations between
the Moscow and Washington Govern
ments unnecessary and avoid criticism
from American opponents of recognition
of the bolShevist regime.
Even If direct barter arrangements
can be made between American corpor-
ations and the Soviet government, con-
siderable sums of money will be neces-
sary to finance the actual handling and
marketing of the products
Secretary of State Hull emphasized
the Importance of barter in an address
he made May 2 to the American Section
of the International Chamber of Com
ulerce in Washington
!. Sharp Fall in Exports.
international trade is chiefly barter,
or a mutually profitable exchange OF
surpluses by different countries, either
directly or in triangular manner"
he said. 1T specially contemplates, too,
that an enterprising Nation goes out
into the world and locates and develops
new markets for its surpluses."
American exports to Soviet Russia
fell from $114,000,000 in the calendar
year 1929 to about $12 000. 900 last year.
However, the balance of trade was still
IN favor of this country.
Banks and corporations In the United
States have been unwilling to grant long
term credits of the character the Soviet
government requires. The Russians say
they have received more favorable credit
treatment from Germany and Great
Britain. Soviet officials give this as the
reason they are buying in Europe rather
than in this country.
Soviet officials estimate that Russia's
population of 10000, 900 has only about
one-flfth the quantity of manufactured
goods it would buy were the Russian in
dustries able to supply them. The need
for all sorts of cloth and wearing ap-
parel is particularly great. In its SUI
preme effort to expand major industries,
the Moscow government has not been
able to develop light manufacturing.
/. At the present time Soviet Russia
needs breadstuffs, and for years it has
suffered from lack Of fats including
lard and other packing house products.