Evening star., 1933-10-29
Brookhart, Now Russian Trade Expert,
Sees Vast Promise in Soviet Relations

answer: She has imported S4,500, ,000, 900
worth Of goods in the last few years,
including $500, 100000 from the United
States. OF those purchases S4, 100000
600 have been paid for in gold or its
equivalent. The foreign indebtedness
today is about $400,00000 That debt
is being paid for as it becomes due.
Only S2l 100000 is owed in the United
States. OF course that is exclusive of
the Czarist and the Kerensky regime
debts
The internal Russian debt is about
S3,000,000,000 against $4,000, 600, 900
that has been put in new machinery
alone. Profits from operating that ma
chinery increased from 380,000,0 900
rubles in 1924 to 1.700 900. 900 rubles in
1880. Labor efficiency in that period
has gone up nearly 400 per cent, costs
OF production have gone down rs per
cent and selling prices have fallen IL
per cent"
Whose figures are tohse? you ask.
Those are figures of the Russian
government. They are as reliable as
any government figures and are accept
ed and have been accepted by our ex-
perts IN analy2ing the Russian picture
over the past few years No people are
as self-critical as the Russian"
Gold Production Grows.
Even so, if credits are to be extended
to any country, they must be repaid
either in goods or in gold. Our tariff
policy shows conclusively that We don't
want to take goods that compete with
products of this country. That leaves
the practical question of how Russia
could pay us for goods taken on credit.
That question is to be expected. It
can be answered by showing what
Russia has to offer to get the foreign
exchange needed to meet debts. First.
worth of gold this year against $50
100000 last year. She Is the worlds
largest producer Of platinum Her furs
command cash prices and dominate the
fur markets of the world. She produces
ASBESTOS. OF which We import 96 per
cent. She produces manganese. of
which we import enough to meet most
OF our needs She produces pulpwood.
which we import. She is the largest
exporter of oil and she exports anthra-
cite Of high grade
Then. as another means of gather
ing foreign exchange, Russia has her
torgsin stores. which sell only for for
elgn currencies, or for Russian gold
rupIes coined IN the CZariSt regime.
Through those stores the government
obtained s65,0OO,000 worth of foreign
exchange last year. No country is
oetter prepared to show herself as
credit risk than Russia"
That is the story that former Sena-
tor Brookhart tells after months OF In
vestigation.
Credit Problem R>m.;ns
Still, the problem of credit suaran-
tees Is considered the biggest one con-
fronting officials if recognition is
granted and Russia comes forward with
orders to buy our goods. Various plans
are being considered here to Jump the
hurdle of credits. Most European gov
ernments have adopted a policy of
guaranteeing the credit extensions
granted by their industrial concerns or
by banks to finance exports to Russia.
Government credit or Government
funds derived from processing taxes
are very likely to be used In financing
exports Of farm products, once dealings
are arranged with the Soviets. Secre-
tary OF Agriculture Wallace believes
this outlet for products will help
especially in the hog markets, the cot
ton markets and probably in the
cattle markets
II trade can be financed, Russia will
stand out as another administration
depression relief project.