effective gold standard. The direct trade between the United States and Russia in the years 1020-1922 was negligible. Since then, however, a direct and large Soviet-American trade has been established. This trade is of such a character that a sub- stantial unfavorable balance must be covered every year by the Soviet Union. During the six months ending March 31, 1928, alone an adverse trade balance of $50,000,000 was created. The earliest shipments of gold to this country (1919-1920), as shown by V. Novitzky, were made from Siberia by the “white” forces who came into possession of a large portion of the Russian gold reserve in 1918. An important part in the financial adjustments of that period was played by the Anglo-American Syndicate which received considerable quantities of gold from the Kolchak gov- ernment. The gold remaining in the possession of the Soviet authorities after the cessation of civil war reached this country during the years 1021-1022 by way of Sweden, France and Switzerland. To quote a dispatch in the New York Times of April z, 1921, (pp. 62, 63) “gold coming here in the form of bars bearing the official stamp of the Royal Swedish Mint. . . . is generally regarded as Soviet gold which has been smelted at the Swedish Mint or given in payment for Soviet gold sold to that institution”. The statistics of the Swedish, French, Swiss and United States customs (pp. 57-60) for 1920, 1921 and 1922 indicate that Russian gold went to Sweden and from there was shipped by two routes to the United States, one part going directly and the other passing through France and Switzerland on the way to this country. Aside from gold shipped to this country by way of other countries, several shipments of Soviet gold were sent directly from Russia to the United States. These took place in 1922, when Soviet gold was admitted into this counry in payment for supplies pur- chased through the American Relief Administration. The official restriction against Soviet gold was also lifted in the case of the gold allotted by the Soviet Government to the newly created states such as Estonia. and sent bv the latter to the United States Mr. M. L. Jacobson, author of the section on the Russian gold reserve in the Senate Report, continuing Mr. Novitzky’s story of Russian gold, indicates that by the beginning of 1923 practically the entire gold reserve inherited from the Czarist Government had been exported by the Soviet authorities. The Soviet State Bank, created in 1921, did not receive any of the Czarist metal, its original