, 1935-02-06
WASHINGTON
BY George Durno

Hull's action in abruptly declaring
debt funding negotiations with So
Wet Russia at an end vas fifty per
cent stony-faced American poker
and fifty per cent HobSon's choice.
Men in charge Of u foreign
relations still have some hope Mos
COW can be persuaded TO accept our
terms-which are said to be a best
and final offer. They are by no
means certain of winning the pot.
There was interesting strategy
behind Hlll's blunt dismissal Of Am
haSsador Troyanovsky's last COM
promise proposal.
Russia owes US. according TO our
calculations. around $500. 000, 900 plus
interest. The USSR was offered an
easy long-term settlement for $780,
00O, 900. The bait held out was 8
$l00. 000, 900 credit through George
Peek's Export Import bank which
was set up especially to do business
with Russia. This credit would have
revolved every five years, provided
payments were met, and American
heavy industry would have sold
some such-needed orders.
But the Soviets wanted a cash
loan in return for agreeing TO pay
us back a portion Of the Cars old
debt. With that money they could
buy their rails. pipe, locomotives.
agricultural equipment. machinery,
ETC. much cheaper In European
countries. II is an old Army game
that has been worked on Uncle Sam
many times before.
That. Of course, would have frozen
our industrialistS out OF the picture.
Reports that American Ambassador
William c. Built might resign be-
cause Of the collapse Of negotiations
were very properly denied because
Built himself suggested the proce-
dure Hull followed.
Cuff-Our only hope now Of ever
collecting anything from Moscow Is
that our definite and final refusal
of q cash loan will hurt the Soviet
credit in Europe where II has been
doing most Of its shopping.
AS OF last October Is. Russia owed
Germany approximately $3.50. 900. 900
on commercial purchases, Great Bri-
tain around $4,000, 900. other Euro
pean countries combined about $780,
000, 900 and the United States &c.
10000 for a round total Of 100000
900.
We may yet force Russia to ac-
cept Jul goods and U credit on our
terms. but only II European mar
kets refuse to lengthen the bill al
ready on their cuffs. The hitch Is
that Russia is mining about $780,
100000 OF gold a year. One Of the
American suggestions was that a
portion of this be earmarked against
repayment OF the pre-reyolutionary
debt. II fell flat and the gold is still
there as a highly respected medium
Of exchange in anybody'S factory.
Authority-Eyen II congress does
not rush through the S4.880. 00O, 900
works-relief bill 10 final passage by
the Saturday deadline Relief Ad-
miniStrator Harry Hopkins has set,
nobody in the administration or
congress either will have any par
ticular private worries. They may
say plenty publicly, though.
Hopkins warning that on Feb. 10
the last nickel Of his last $50, 600 900
will be exhausted is accepted as true
enough. The catch Is hat even If
the bill runs over into next week
people won't start starving at mid
night Sunday. Most Of the states
have enough carry-over money to
tide them a while longer. If they
haven't Uncle Sans credit will be
good for a few days.
Had the administration impera-
lively needed the $3.50, 600. 900 In the
bill earmarked for direct relief. II
would have accepted the republican
offer and divorced this section for
immediate passage. But the White
House knew the whole bill could be
gotten through just about as order
ed. "A few days wait for the dole
money will be a small price TO pay
for unbridled authority to spend
the 4 billion destined for work re-
lief.
Surplus-Some 100 big corpora
tons are breathing easier since the
Y. S. Board Of Tax Appeals render
ed its decision in favor Of Cecil B.
DeMille. the movie magnate, in a
tax suit brought by the Commits
giCnpr of Internal R~eveuue
The treasury was attempting 10
assess a so per cent penalty tax on
accumulatlonS Of earnings held to
be IN excess Of any reasonable need
for surplus purposes. Further, IL
commended the stockholders were
seeking TO avoid surtaxes.
When the Tax Board, by a IL to
3 opinion, ruled DeMille was within
his rights, II was ruling on the