“COMRADES.”

Hauraki Plains Gazette, Volume XXXV, Issue 4778, 19 November 1924, Page 4

“COMRADES.”

RUSSIA’S TRADING. HOW IT IS WORKED. Seen rroiri the outside, there was nothing revolutionary about “Soviet House’ - '—a plain, square, new building, almost in the shadow of the grey, old Bank of England. The very courteous, English-speaking attendant showed no disposition to bite me. if the big lift-man was really a Cossack without whiskers he seemed to have no interest beyond the floors at which his numerous passengers wished to alight. Yet, somehow, the “atmosphere” was different, There was something curious in the intense scrutiny 1 found myself undergoing while I waited for my appointment (says an English correspondent). An idle group of four youngish, nondescript, men looked away instantly when I looked at them. I couljd hear a remark in a strange tongue as I followed the long-haired, broad-visaged Slav youth to another floor. £15,000,00'0 TURNOVER. A handsome, clever young Russian, M. Frenkel, set himself patiently and courteously to the-Task of explaining to me the purpose and organisation which govern Soviet House. The big building is occupied, according to the modest doorplates, by Arcos, Ltd., the Arcos Bank, Ltd,, and the Russian Trade Delegation. I had been told in the city that since Arcos, Ltd., opened its doors in London, less than three years ago, to engage in trade between Britain and Russia, its total transactions represented some £15,000,000, and 1 was curious to know how it was being done. According to M. Frenkel, Al’cos, Ltd., is registered as a British company, with its headquarters in London. and it is entirely subject to British laws. Its shareholders, however, are all Russians, It is growing by leaps and bounds. It has flourishing branches in most of the European capitals, and it. is even now opening up branches in North and South America. It operates a new shipping line between the South of France and the Black Sea ports. It has a.i important branch at Jaffa, and its tentacles are reaching out into Palestine. THE. “CHERVONETZ.” Arcos, Ltd., it appeared, engaged in every form of legitimate commercial . and financial enterprise, as between Russia and other countries. -The national credit of Russia may oe a minus quantity to-day, so that in the ordinary way Russia cannot buy anything much; the credit of Arcos, Ltd,, stands high in London, and the Russians trade readily through the avenue thus provided.

"But how do you finance it, in view of the fact that Russia’s currency has gone, completely to pieces?” I asked. “Is it simply goods against goods ?” “No, no, no, said the Russian. “We have more latitude that that. So fat as Russia is concerned, we work on the chervonetz. The chervonetz is the new unit of the currency of the Russian State Bank, and it is based on gold security. Ten roubles go to the chervonetz, just as ten gold roubles should go to the English pound. “A firm in Russia, wishing to buy in England, will send a draft through the Russian State- Bank. If that draft has the backing of Arcos, Ud„ any financial institution will accept It here, and only a fair rate of exchange .will be charged. These transactions are necessarily limited at present, but with the completion of an agreement between Britain and the Sbviet, and the financing of the Russian Government, there should be a tremendous expansion.” . SOVIET AND ARCOS. M. Frenkel was then asked, frankly, to explain the mystery of Arcots, Ltd. The Soviet Government does not like independent traders—or, in other words, private enterprise. Everything profitable, in this communistic State, must between all countries (except Britain) be owned by the Government. Trade with Russia is now being conducted by the Soviet’s Foreign Trade Commissariat, which’ has branches in practically every European country. Why was there no office of the Soviet Foreign Trade Commissary in London ?

. “Arcos Ltd., are the sole commissioners in Britain of the Foreign Trade Commissariat,” said M. kel. "The Russian Trade Delegation to Britain has its offices in this building. and we work in harmony ( with it,”. “But you must have the blessing of the Soviet, otherwise you could not carry on. Yet you, as a registered trading corporation, are making profits tor your shareholders—a process which the Soviet Government hates and opposes. It is, difficult to understand.” M. Frenkel smiled. "Of course, you know that the Soviet Government is behind Arcos, Ltd.—it could not exist otherwise. The Soviet Government, as such, does not own shares, but individual Russians own them on behalf of the Government, and the Government of Russia benefits from the profits we make. But to 1 ’ Ml that,’ he added, emphatically, "we are in no sense a political organisation. We are wholly devoted to business. No propaganda - goes out through this office.” He was very serious about it.

•‘Still, I cannot understand why the Soviet should have a Foreign Trade office in other countries, where there is also a branch of Arcos, Ltd.,” I remaiked.. “Is this merely a part "1 the Russian chaos ?” M, Frenkel

smiled, and pushed across his desk a box of cigarettes—English. “Dowpski,” I said to the big, whiskered Cossack in thp lift.

He looked at me reproachfully. "If this blinkin' rain don’t stop, .the August ’olidays will be completely rooned,” he remarked. But there was no mistaking the nationality of two very fat women who argued shrewishly in the marbled hall, nor of the unshapely, dark young man who tried to silence them. They, obviously, were a bit of Soviet Russia.