Economics

The Soviet Government realizes definitely that the State cannot endure without the valuable assistance of capital. The absorbing need of Russia at the present time is machinery, both for industry and for commerce. If this need is supplied Russia may well enter into active commercial competition with the rest of the world at a not far distant date.

Ramifications of the new Russian policy of economic reinvigoration are everywhere in evidence:

Germany: The Krupps are operating a model farm in the Don, a district of South Russia. The Soviet Government will draw 10 per cent for the first three years; 15 per cent for the next three, and 17 per cent after that until the expiration of the 36-year contract, when the Russian Government will inherit the whole property.

Latvia: A treaty is now under consideration giving Russia rights in the port of Riga and over the Latvian part of the River Dvina. This will facilitate Russian communications.

Poland: Despite the disfavor shown to Poland on account of French loans, an agreement is under way to exchange Polish manufactured goods for Russian raw materials.

Turkey: Active negotiations for a commercial treaty are on foot.

Great Britain: The Russian Co-operative Societies have appointed Mr. E. F. Wise, Lloyd George's former adviser, as their Foreign Trade Director in London.

Hungary: A commercial treaty has just been signed with the Royal Hungarian Government, whereby Russia will export raw petroleum for the Hungarian refining plants, and Hungary will be allowed to participate in the industrial and agricultural rehabilitation of the country. British capital will back the Hungarians in these undertakings.

In addition, a host of foreigners are entering Russia, seeking concessions for various enterprises.

More striking evidence of the Government's honest intention to raise the economic condition of the country could not be given. The old Bolshevism is dead.