SOVIET’S EXPORT TRADE

Evening Star, Issue 21005, 20 January 1932, Page 5

SOVIET’S EXPORT TRADE

A EUROPEAN REVIEW FACTOR IN DEPRESSION “ What effect has the w’orld depression had upon the Soviet Union and what effect has the Soviet Union had upon the world depression?” With this question Mr H. R. Knickerbocker introduces his book, ‘ Soviet Trade and World Depression,’ which comes from the Bodley Head. It comprises a series of articles contributed to American newspapers after investigation of Soviet, trade and its reception in Italy, France, Belgium, Holland, Britain, Denmark, _ Norway, Sweden, and other countries in Europe. In his previous book, ‘ The Soviet Five-year Plan,’ Mr Knickerbocker described his observations in Russia. The chief value of the book was what he saw.. In this book he is not exploring any industrial terra incognita. He deals with much that is more or less known, but always from the point of view of an American who never loses sight of the effect Soviet enterprise may have upon American trade. He describes the Soviet Union foreign trade monopoly as the “ largest departmental store on earth,” which is conducting “ the greatest permanent bargaifa sale in history.” ‘ln fiftytwo lands its agents are offering a thousand varieties of wares at prices that 'bring despair to their competitors.” It is of course common knowledge that Russia is in urgent need of many of the wares she is exporting, and the question is how much of this export is dictated by the demand for funds with which to secure further industrial plant and how much represents the economic offensive against the capitalistic system, the destruction of which is the avowed purpose of the masters of Russia. The volume contains much information which will aid the study of the question. In a most interesting chapter Mr Knickerbocker describes a Soviet exhibition at the Milan Fair, “their most audacious bit of specialty salesmanship.” A VAST ARRAY OF GOODS. “ Here at hand in the flesh,, in the can, in the bale, and in the bolt, is a visible part of the inventory of the biggest sales organisation in the world, ready to furnish anything from worm medicine for overfed lap dogs to marble gravestones and linen d’oyleys, ready to meet and cut anybody’s price from cotton to coal.’ It is an astounding exhibition, and Soviet macaroni in Italy is only one of its revelations.” From what the author describes one might imagine that Russia is equipped industrially as well as Britain. Yet Russia lacks most of the goods displayed. Thus he concludes this arresting chapter: “No other country on earth ever had its exports concentrated in the hands of a single organisation. This huge national department store capable of supplying wares not by the dozen items, but by the dozen shiploads, possesses the inestimable advantage ox unified organisation. It can manoeuvre, take losses on some goods to be recouped from profits on others. It can play off its rivals against one another, take bids from a world of competitors, throw its orders hero and there as economic or political expediency dictates. Whatever may be the criticism of the workings of Soviet State capitalism as a system of production and of domestic distribution, its virtues as an instrument of foreign trade have at least impressed its competitors.” NO REAL RESTRICTIONS; It is the author’s opinion that no country so far has succeeded in controlling Soviet trade by any means, and that only by unity in Europe could it be accomplished. Indeed, ho says that Britain is the only important country which recognises a “Red Trade Menace.” Italy and France burn Russian oil in their navies, Holland takes advantage of Belgium’s hostility to Russia and succeeds in “ bootlegging Russian grain and other commodities into Belgium, and everywhere the urge to make sales to Russia creates a strong force to stimulate buying from her, while Continental countries have been glad to benefit by.the low prices.” England has been taking 30 per cent, of the total of Soviet exports. This was during the last year of the Labour regime. Maybe Mr Knockerbocker was prophetic when he wrote: “ Not one great European nation or important taker of Soviet goods has put down an embargo nor has this investigation revealed the slightest likelihood that they will do so, though to this statement must be added the qualification that the Tory temperament in Britain has sometimes upset all likelihoods.”