admissibility of this gold in view of the fact that the gold was of 
Soviet origin and that as far back as 1920 the Federal Reserve Bank 
was prohibited by the United States Government from accepting gold 
of Soviet origin or gold belonging to the Soviet Government. 
“The raising of this question came quite unexpected not only 
to the State Bank of the U. S. S. R. and the German Garantie und 
Kredit Bank but also to the American banks in agreement with 
whom the shipment had been made, and even to the heads of the 
American Government who, in the persons of the President of the 
United States, Mr. Coolidge, and the head of the State Department, 
according to the press, stated after the arrival of the gold that they 
saw 10 objection to the admission of gold of Soviet origin. 
“The reference to a ruling of 1920 appears still more inexplic- 
able in view of the fact that after its issue, specifically at the end 
of 1921, an agreement was concluded in London between the Amer- 
ican citizen, Mr. Brown, and Mr. Krassin, representative of the 
U. S. S. R,, under which the Soviet Government was to export to 
the United States gold to the value of ten million dollars for the 
purchase of food supplies, this gold to be placed to the credit of the 
American Relief Administration. The gold was admitted to the 
United States without anv obstacles. 
“Notwithstanding the statements of President Coolidge and 
Secretary of State Kellogg, the consignment of gold was not admitted 
for assay and for transfer to the Federal Reserve Bank.. An action 
of this nature on the part of United States Government departments 
cannot, of course, aid the development of Soviet-American trade 
relations, since gold is the natural medium in adjusting unfavorable 
trade balances or seasonal fluctuations of one kind or another 
“Furthermore, it is necessary to point out that for the State 
Bank of the U. S. S. R. gold of Soviet origin—produced in the 
country itself—apart from serving as a reserve against note issue. 
is also an export commodity precisely in the same way that oil is for 
the Soviet Naphtha Syndicate, cotton cloth for the Soviet Textile 
Syndicate or furs for the corresponding Soviet industrial and trade 
organizations. If the United States prefers that accounts between 
economic organizations of the Soviet Union and business firms of 
the United States, and also accounts with the Far Est and South 
America be cleared by the State Bank through the mediation of other 
countries, especially by means of gold exports to such countries, the 
result of this method of setting accounts, while undoubtedly advan- 
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