Harbin, June 27.
How the Soviet government manages its finances is very excellently illustrated by the predicament _in which the Dalbank (the Soviet Far Eastern Bank) in Harbin finds itself, 'As has been written on countless ocasians, the Soviet government' maintains certain agencies and institutions abroad solely for the pur. pose of propagating. the alleged [success of the said government in its commercial and economic activities despite the exclusion of Ru from international trade and economies, Thus it is that there are scores of Soviet commercial agencies abroad carrying stocks of piece goods; ostensibly of Russian manufacture but in reality of German make, bearing gaudy, multi-coloured Soviet [trade marks in which, of course, red predominates.
The predicament in which the Harbin Dalbank finds itself, has resulted from this anxiety to show. [dhe economic and commercial achieve-its exclusion from economic and commercial fields. In Russia, the value of the Chervonitz just now is roughly four shillings but in Harbin it has been maintained on a level some six times higher, vis $11.25 to $12.00. Taking ad. vantage of this anomalous situation, {local merchants and speculators have bought Chervonitz notes in Russia and sold them to the Dalbank here at the bank's current buying rate, advertised on the local marke Firms which previously were! notorious for tardy payments have now been paying their clients days ahead of maturity, the reason being, of course, the ability to make huge profits out of Chervonitz deals.
How long the Dalbank in Harbin will be able to stand the strain is debated with keen interest in Harbin, The Chinese are viewing with considerable concern the depositing of Chinese Eastern Railway funds in the Dalbank. They reason, and_not without justification, that the Railway stands to lose its deposits when the day comes that the Dalbank, unable to stand the strain any longer, finds it necessary to close its doors.
Foreign banks are very wary of dealing with the Dalbank, although cone or two Japanese banks have been making money out of I momalous dual value of the Che vonitz.
The State of Russia It would be interesting to know the real total amount lost by Russia through its propaganda activities. jeends to undergo a complete volte face, it will have to go down before the year is ended, to make way for something more' practical and in keeping with the times. The Russian people are in rags, there is. not enough food for everybody,—and the Russian is a great eater,—and this winter famine' and. pestilence are again expected to stalk the land. Great nervousness is where, German traders Red Army which has until recently teen the backbone of the Soviet government is now alleged to be wa ing between striking and revolting.
Germans, Italians, French and Japanese traders who come from through Russia all tell us the same thing, and one finds it impossible to discount all we hear concerning! Rossia and the Russians.
Another interesting story from Moscow is that in Moscow there are! several renegade foreigners in the! enforced employment of the Soviet government in its propaganda sections. These men are. mostly] fugitives from justice from their own! countries and are engaged in the and Seoul (Korea) as intermediate stations. There seems to be no Guestion that such a service will be very well patronized. In addition to businessmen anxious to effect a quick passage between Manchuria and Japan, there may be many ous reasons, may find at the last moment, 0 to speak, to connect with the Siberian Express at Manchuli, business of forging "letters" and
employers. One of these men is Sen Katayama, much wanted by the Japanese police, who recently wrote lengthy diatribe against the capitalistic Powers" for "holding, down" the Chinese people and berated. his own country mercilessly for being "'a servant of the westers capitalists.'
Text read from the printed page and cleaned; old type leaves the occasional error.