The Waterbury Democrat., 1933-12-07
By JOHN c. CRESSW1LL (From Wall Street Magazine)

Russia being at last recognized our Russian trade enthusiasts are beginning to count the unhatched chickens of profitable trade between the two countries. One of the gov ernment's Russian specialists. for mer Senator Brookhart Of Iowa talks about exports of $500, 100000 U year. Another government auth ority calls the senator's calculation "silly." An examination of the data of trade between the two countries tends to support the latter s opinion.
 If we had searched the world for country with which the condi- lions of sound reciprocal trade are laoking we could have found none other in Russia's class. On the principle that profitable inter national trade is one in which exports substantially balance lm- ports. Russia looks like zero on the jmport side. She has an enormous capacity for absorbing certain or our products while we have virtual ly none for taking hers in return The actual situation, however, IS made to order for Russia. we desperately need export markets for such capital goods as machln- cry and cotton. also for automotive products and other consumer goods She wants them but has no cash. We have the cash. So, we are about to repeat the colossal trade falla- . cies of the teeming twenties anu give her the cash (credit Ioans) with which to pay us for goods.
 If we will give the Russians carte blanche to draw bank drafts on us we can have siZable export trade with them for some years. Russla is rtill a backward. undeveloped country. with low standards or nV- ing and great room for growth Tn both capital and consumer goods. Her program of Self-sufficiency calls for imports of large quantitles of producers goods, notwithstand- ing the great progress she has made under the five-year programs She is also lacking in certain raw materials--cotton and copper, TOT example. Moreover, it Is now her internal policy to enlarge consump' lion of consumers goods. Broadly sneaking. the United states above nlI other nations has what Russia wants.
 Consider the unmeshinS nature of the import requirements or the two nations. Taking one year with another. in recent times the larS- est single item in Russian exports has been forest products. As by Tar the largest producer of forest pro duets in the world. we have no real use for Russian lumber. We could buy a limited quantity Of pulp ana uuIpwood from her, but nothing worth mentioning.
 We certainly don't want any wheat from Russia in these day5 when we are drowned in an excess of domestic wheat-and wheat IS the only item of Russian exports, except petroleum, that ever ex- ceeds woods. And, anyway, Wnen- ever Russia begins to ration her people adequately there will be no wheat to export, in fact, there has been none for three years. The second largest item of Russian ex- ports ordinarily Is petroleum and it's products. Ask Oklahoma, Texas and California--drowni in oil- whether we can stand the importa- tion of any such products. The next important item in Russian eX- port is furs and skins, but we are taking now about as much of them as we can take, being something or a fur and skin country ourselves having for instance. about hve times as many cattle as Russia. Next comes textile fabrics in Rus sias export list We take almost none at present, buying textiles as we need them, from nations ike England, France and Germany. We would hardly wish to withdraw that patronage from nations with whom we already have unwieldly favorable balances of trade. Man ganese? Yes. We need fiat price---but are taking it to the limit capacity already. We certainly