THE SOVIET THREAT.

New Zealand Herald, Volume LXVIII, Issue 20987, 25 September 1931, Page 12

THE SOVIET THREAT.

Sir, —In his letter of September 22, Mr. Bloodworth quotes a statement from the Bank of Nova Scotia, as follows: "Thus it requires no stretch of imagination to visualise the trade competition which the present debtor countries would be compelled to force on their present creditors, if they are actually to pay their debts by the only means possible, namely, increased production and export." In applying that dictum to the case at present under discussion, I would point out that, as far as Russia is concerned, she is already, by her increasing trade development, forcing on other countries increased production and export, hut I am afraid not, with the laudable object of paying her debts. I can see no sound reason advanced for Russia's inability to pay her debts in gold. According to Mr. Bloodworth she was able in 1930 to send to the United States gold to the value of 120 millions of dollars in payment for goods purchased in excess of the 30 millions of dollors' worth of goods sold to the States. It is fair to assume that the outflow of gold from Russia as above is still going on, and probably increasing. Could not some of that gold have been applied in reducing the debt owing to Britain ? Would it have been impossible for Russia to raise a loan, say in the country, which is so substantially bene-fiting by her custom, for the purpose of paying Britain ? Could Russia not have used her influence by inducing the United States to relieve Britain to the extent, pro tanto, of the amount which she owes Britain. That would increase Britain's ability for purchasing Russian goods and in turn would augment the resources of Russia as a purchaser of American goods. John 'A. Beam# Remuera, September 23, 1931.