“COMRADES.”

Shannon News, 14 November 1924, Page 1

“COMRADES.”

RUSSIA’S TRADING. AT “SOVIET HOUSE.” HOW IT IS WORKED. Seen from the outside, there was nothing revolutionary about “Soviet House"—a Plata, 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 have no interest beyond-the,floors at which his numerous clients: wished to alight. Yet,, somehow, the “atmosphere” was different. There was something curious in the intense scrutiny I 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 a,t them,. I could hear a. remark in a strange i tongue as I followed the long-haired broad-visaged Slav youth to another floor. £15,000,000 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 I was curious to know how, it was being done. ■

According to M. Frenkel, Arcos, Ltd., is registered as a British company, with its headquarters in London, andit 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 an important branch, at Jaffa, and its tentacles are reaching out: into s}: 5 }: Palestine. The “ChervOnetz.”

Arcos, Ltd., it appeared, engaged in every form of legitimate commercial and financial enterprise, l as between Russia and other countries. The national credit of Russia may be a minus quantity to-day, so that in the ordinary way Russia cannot buy anything much; but the credit of-Arcos, Ltd., stands high in London, and, the Russians trade readily through tjie 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 than that. So far as Russia is concerned,. we work on the chervonets. 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 Russia’a State Bank. If tjhat draft has the backing of Arcos* Ltd., 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 Soviet, 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 Arcos, 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. Frenkel. “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 for 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, apd the Government of Russia benefits from the profits we make. But for all 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