The daily worker., 1935-02-04

! III QCbdll VI HOW VIC pdlQ lll6 " .5sh'
punctually, as we have paid all our
obligations in other countries. More
over, as Molotov neatly said, our
payments to the US.A. were not
token payments. Therefore, the
application of the Johnson Law to
us does not arise from our CONNER
eial and economic relations with
America. Particularly-and this APP
pears somewhat queer-as result of
the johnson Law, a bank organized
by the American government for the
special purpose of financing trade
between the U.SA. and the US.SR.
has been doomed to complete mac
tivity. Certainly, this circumstance
does not help to enlarge our commo-
dity turnover with the US.A. at the
present time. Our imports from
America during 1888 and 1884 we're
limited to an insignificant amount
sixteen or seventeen million rubles
yearly"
Soviet Currency
Passing to the question of the
currency situation in the Soviet
Union, Rosenholtz declared: "For a
long period ISLANDERS have been
spread about insolvency in the So
Wet Union. But now, as a result
of the solid fact of our special
punetihousnes in fulfilling our Oh
legations, even those capitalist firms
and their controlled press, which
were formerly most hostile, are now
compelled to abandon these SLAM
derous attacks, to avoid being in
too ridiculous position. Further
more, during the recent years of
currency and credit crisis, almost
the only country punctually paying
all obligations was the US.SR.
Other countries either simply
stopped paying on their obligations
or deYaluated their currency.
During the recent period the
Soviet Union secured radical reduc-
tions on its foreign Indebtedness.
Our payment of basic mass ex-
change bills on old orders, and our
inception of cash payment for some
goods, principally raw materials
have greatly reduced the role and
significance of the credit given us
by private companies on imports
The time is past during which we
sought credits. At the present time
We receive proposals for longer term
credits, which we frequently reject
because we are striving for a radi-
cal improvement in credit eondi-
tions. In August we relinauished
our right to utilize $4,000, 900 marks
by contract with German banks
because we considered this credit
extremely expensive (61z per cent?
/ Several months ago we relinquished
the use of government guarantees
on our orders in England. We have
almost completely abandoned all ex-
port credits, the cost of which ex-
ceeded the normal. We have Sc
cured big reduction in the cost
of all export credits which we still
use.
lrdue balance
"In 1888, our favorable trade bal
ance was 14T,0o0,0o0 rubles, and in
1884 it was 1SOOO0,OoO to 190OOO,OOC
rubles. AS a result of all thest
measures, the currency situation In
the Soviet Union has become
stronger. The improvement of this
position, together with the indus
trialization of the Soviet Union, also
made it possible to introduce
changes of Importance in the struc-
ture of Soviet exports.
"A basic change is the reduction
in the proportion of agriculture
exports, the increase in industrial
exports, and the simultaneous sharp
and radical reduction in the export
of so-called food products. In 1881
we exported food products valued
at 302,000,000 rubles, signifying q
reduction to third. To give
ONE examples-in 1881, we exported
189, 900 boxes of eggs. In 1882, thi;
was reduced to $4,000, while in 1888
it was cut still further to 10000
Last year brought still greater
reduction. In 1881 we exported
$4,000 tons of poultry; in 1882, only
10000 tons; in 1888, 5000, while in
1884, only 1000 tons left the coun-
try. In 1882 we exported $4,000 tons
of canned goods, while in 1884 WE
had reduced this amount to 5000
tons. This process of the reduction
of the export of food products is
particularly in respect to grain Ir
1881, we exported over 100000 tons
while in 1884 we exported only 600,-
600 tons, reduction to one-ninth
of the original amount.
Rise Due to Soviet Power
These reductions in exports, how
ever, must not be considered a re-
suit of the influence Of the world
crisis. The reduction of our exports
is a result of the growth of Soviet
economy, the growth of our inde-
pendence of the capitalist world
the growth Of consumption inside
the Soviet Union. The successes
achieved by the Soviet Union bJ
the period of this Seventh Congress;
of the Soviets in the sphere oi
foreign trade could only have beer
secured on the basis Of the successes
of the construction under the First
Five Year Plan, and during the two
years of the Second Five Year Plan
These victories could be achieved
only under the concrete Leadership
of Comrade Stain on questions Of
foreign trade. Our economic rela-
tions with capitalist countries al
the present time are based upon
the technical and economic inde-
pendence which We have achieved
This is another important victory
for the general line of our party